December 8, 2008
As we approach year’s end, my mind is drawn irrevocably into evaluation mode and I assess how I’ve done this year and what methods worked or didn’t work for me. I like to work through this stage before the holidays so that I can create a new plan for the following year. As I grow as a pf blogger and budgeter, I’m learning and sharing what I learn as best I can.
One of the basic tenets of personal finance is that setting goals is critical to growth. The smart money says that setting Specific, Measurable, Attainable, Realistic and Timely goals is the best way to achieve your aims. I’m not sayin’ what it was, but SMART money my money wasn’t.
I’ve failed miserably at setting and achieving SMART goals this year. Psh, there was a time I quit setting goals entirely. When I admitted that, there was a moment of guilt for being so disorganized, or even unmotivated. Because that’s what it was, right? If you’re not even willing to set a goal (and let’s face it, I wasn’t trying) then clearly there’s no motivation.
You know what, though? That wasn’t true. Despite all my lofty goals from the end of 2007 that I didn’t actually accomplish, like buying a house, or investing, or saving half my salary, I still made some progress this year. No, it wasn’t Specifically what I had in mind, I had trouble Measuring it sometimes, other times it seemed downright impossible (A) or crazy (R), and nothing happened quickly or in a Timely manner. But if you look at the whole picture, it’s a different story than just a failure to achieve. (And if the markets were kinder, it might even be rosier than that. But never mind them.)
See: a year in review
Despite a few challenges……..
It’s been a tumultuous year to say the least, even discounting the whole economic meltdown, but it hasn’t been all bad.
I’m seeing that the smart way isn’t the only way, and that’s not necessarily a bad thing. All this time I didn’t understand how money can be such an emotional issue, or why people would choose the psychologically satisfying rather than mathematically efficient method of getting out of debt, or growing an income. Looks like I was wrong!
If I had insisted on following just the straight and narrow road by setting strict goals and assigning Passes or Fails, I would have felt terrible about it. It was difficult enough to K.I.T. (keep it together) well enough to focus on the big picture, and take little steps without calling myself a failure 6 out of 7 times a month.
A comparison of my finances from last year against this year shows an increase of about 20%; keeping myself on a looser leash worked out pretty well. You could rightfully point out that it’s not that significant because I didn’t start out with that much. That’s true, but I am ending the year on a relatively healthy note and that’s nothing to sneeze at. Having stuck to the basic principles of reducing expenses, increasing income where possible, and maximizing how far each dollar went, we did pretty ok this year.
Editor’s Note: Flexo posted about Taking Control of Your Finances today, and he has a few other good reasons SMART goals might not be applicable to your situation.
December 2, 2008
| Retirement Savings |
Rollover IRA: $1,052
Roth IRA: $4,189
401(a): $4,168
403(b): $11,655
Total: $ 21,604 (21,409)
|
| Emergency Savings |
Catastrophe: $ 20,000 (19,743)
Problem Cushion: $794 |
| Short Term Goals |
Car Maintenance: $711
Car Insurance: $1,809
Travel/Con: $512
Taxes: $3,507
Moving: $15
Total: $ 6,554 (6,124) |
| Long Term Goals |
House Down Payment: $101 |
| Investment Loans |
Prosper-ish: $12,630
Personal Loan: $5,000
Savings Bond: $357 (current accrued value)
Total: $17,998 (17,997)
|
| Total Assets |
Non-Liquid: $21,604
Semi-Liquid: $17,998
Liquid: $20,794
Expense Acct: $6,160
Goals Savings: $6,554
Total: $ 73,110 (71,686) |
| Debt and Liabilities |
Truck: $2,743
AX: $177
Citi: $154
Citi 2: $1,306
Chase: $335
Rent: $1,360
Total: $6,075 (5,604) |
| Net Worth |
$67,035 (66,082) |
Surprisingly, there was a bit of gain this month, and that can be attributed to much lower gas prices (down from a high of $400/mo to about $200/mo) and a few uncommonly low utility bills, unexpected strength in the bonds of the Roth, and a steady infusion of overtime income. I’ll take what I can get for now as none of the four should be relied upon.
The car insurance came due so I charged it on the PremierPass to clear out as many of my Flight points as possible before they change the card to a CitiBusiness. It’ll be paid off forthwith as the money’s sitting pretty in the Insurance money account.
I have my fingers crossed that getting rid of the truck today will go smoothly.
November 3, 2008
| Retirement Savings |
Rollover IRA: $1,452
Roth IRA: $3,653
401(a): $4,107
403(b): $12,197
Total: $ 21,409 (23,352)
|
| Emergency Savings |
Catastrophe: $ 19,743 (18,547)
Problem Cushion: $0
|
| Short Term Goals |
Car Maintenance: $810
Car Insurance: $1,503
Travel/Con: $297
Taxes: $3,499
Moving: $15
Total: $ 6,124 (5,184)
|
| Long Term Goals |
House Down Payment: $100
|
| Investment Loans |
Prosper-ish: $12,630
Personal Loan: $5,000
Savings Bond: $357 (current accrued value)
Total: $17,997
|
| Total Assets |
Non-Liquid: $21,409
Semi-Liquid: $17,997
Liquid: $19,743
Expense Acct: $6,683
Goals Savings: $6,124
Total: $ 71,686 (72,762)
|
| Debt and Liabilities |
Truck: $3,133
AX: 130
Citi: $403
Chase: $578
Rent: $1,360
Total: $5,604
|
| Net Worth |
$66,082 (66,846)
|
Notes:
Meh. I totally didn’t feel like putting this together.
Gains in cash holdings were more than offset by the losses of my portfolio. *shrug* Knew that was going to happen.
It’s more than time to cultivate more streams of income by freelancing if I want to make any actual gains. A six figure net worth seems much farther away than it did before.
Looking ahead to November:
1. It’s open enrollment time!
A) Figure out new FSA allocations for 2009. Account for increase in copays (up from $15 to $20 for office visits and up from $10 to $15 for prescriptions).
B) Long term care insurance. Do it.
C) Expand disability insurance? Hmm.
D) Anything else?
2. Am a little tweaked about the Thanksgiving holiday weekend. I’m in dire need of a getaway and Turkey Day takes up a whole weekend that could have been mine, all mine. Selfish, huh? Oh well, I’ll think of something because I really need a break.
October 6, 2008
| Retirement Savings |
Rollover IRA: $1,452
Roth IRA: $3,770
401(a): $4,588.70
403(b): $14,994
Total: $23,352 (26,086)
|
| Emergency Savings |
Catastrophe: $ 19,413 (18,547)
Problem Cushion: $0
|
| Short Term Goals |
Car Maintenance: $788
Car Insurance: $604
Travel/Con: $286
Taxes: $3,491
Moving: $15
Total: $ 5,184 (5,452)
|
| Long Term Goals |
House Down Payment: $100
|
| Investment Loans |
Prosper-ish: $12,630
Personal Loan: $5,000
Savings Bond: $357 (current accrued value)
Total: $17,997
|
| Total Assets |
Non-Liquid: $23,352
Semi-Liquid: $17,997
Liquid: $19,413
Expense Acct: $6,716
Goals Savings: $5,284
Total: $ 72,762 (69,775)
|
| Debt and Liabilities |
Truck: $3,521
AX: 142
Citi: $321
Chase: $572
Rent: $1,360
Total: $5,916
|
| Net Worth |
$66,846 (63,680)
|
Notes:
~ This is nearly a week late, but the numbers should be accurate through October 4th.
~ I expected my retirement funds to have hemorrhaged. It’ll be ok.
~ The supplementary income was like a shot in the arm, or a bowl of chicken soup. I’ll be good for another three months, and then some. I’ll still need a job, though. š
~ The area that I’m truly happy about is the money I’m saving, aka money I’m keeping. It’s not scheduled to be spent, it’s just there.
~ I’m spending a lot of time mulling over how to handle the upcoming supplementary income. I want to make sure that I’m still saving a good percentage of my income, and not getting used to an artificially high cash flow.
~ That truck loan doesn’t have much farther to go. I’m resigned to paying it off and keeping it for a while. It’ll have some crazy-low mileage by the time I do anything with it, that’s for sure. Since the selling of the truck never really went anywhere, I’ve taken it off the list of things to stress about.
~ It’s high time to officially create a Charity/Donations fund. I’ve always given informally and out of my expenses fund, supporting my family, my extended family and a select few charities, but I would like to earmark some money solely for that purpose in 2009. I think this means I’ll be able to give more and more regularly.
September 1, 2008
| Retirement Savings |
Rollover IRA: $1,452
Roth IRA: $3,779
401(a): $4,810
403(b): $16,045
Total: $26,086 (25,670)
|
| Emergency Savings |
Catastrophe: $18,547 (18,521)
Problem Cushion: $0
|
| Short Term Goals |
Car Maintenance: $953
Car Insurance: $604
Travel/Con: $406
Taxes: $3,474
Moving: $15
Total: $5,452 (5,582)
|
| Long Term Goals |
House Down Payment: $100
|
| Investment Loans |
Prosper-ish: $12,630
Personal Loan: $5,000
Savings Bond: $357 (current accrued value)
Total: $17,997
|
| Total Assets |
Non-Liquid: $26,086
Semi-Liquid: $17,997
Liquid: $18,547
Expense Acct: $1,693
Goals Savings: $5,452
Total: $69,775 (67,412)
|
| Debt and Liabilities |
Truck: $3,909
Citi: $429
Chase: $397
Rent: $1,360
Total: $6,095
|
| Net Worth |
$63,680 (61,095)
|
— Up 4% —
As usual, my retirement accounts are barely maintaining, and only thanks to continuous contributions, and the great 10% match from my employer.
The insurance company only paid for my deductible and hasn’t reimbursed me for the other $300+ part of the auto bill, so I need to follow up with them tomorrow, but the returned $1000 was a very welcome addition to the expense account.
I’m happy that I still have not had to dig into the emergency fund for any reason at all, and can’t wait to make more substantial contributions to the moving fund. I should be due for an extra dollop of income thanks to all the overtime I’ve been pulling, and happily, they’re actually paying the correct amount of overtime. It’s complicated.
August 1, 2008
| Retirement Savings |
Rollover IRA: $1,452
Roth IRA: $3,698
401(a): $4,347
403(b): $16,173
Total: $25,670
<-3%>
|
| Emergency Savings |
Catastrophe: $18,163
Problem Cushion: $0
|
| Short Term Goals |
Car Maintenance: $930
Car Insurance: $603
Travel/Con: $579
Taxes: $3,465
Moving: $5
Total: $5,582
|
| Long Term Goals |
House Down Payment: $100
|
| Investment Loans |
Prosper-ish: $12,630
Personal Loan: $5,000
Savings Bond: $357 (current accrued value)
Total: $17,997
|
| Total Assets |
Non-Liquid: $25,670
Semi-Liquid: $17,997
Liquid: $18,163
Expense Acct: $779
Goals Savings: $5,482
Total: $67,412
|
| Debt and Liabilities |
Truck: $4,297
Citi: $298
Chase: $631
Rent: $1,360
Total: $6,317
|
| Net Worth |
$61,095
|
— Up 0.01% —
Once again, it seems like the numbers are inflated; the “increased” net worth is due to the recent influx of cash. It seems to have settled out, though.
June ended far too soon, with too much left to do. I am happy that I have a bit more in my cushion, though. With the gas prices getting higher every day, I’ve had to readjust my expectations for monthly expenses, and adjust the emergency fund target upward accordingly. Of course, I will continue on my crusade to reduce expenses, but I prefer to plan for the worse (6 months of unemployment at current spending levels) and hope for the best (landing a better, higher-paying job, reducing expenses).
I’ve removed another feature from our landline, bringing that bill down to $30/month, but I want to look at T-mobile’s about their new version of a landline service. If that pans out and doesn’t affect my internet service ($14.99/month), I’ll switch from Verizon ($30/month) to T-mobile ($10/month, $50 start-up fee). At that rate, it’ll take 3 months before I start saving $20/month on phone services.
Oh! My Down Payment account has money in it. Current total: $100.00. š
And I gave my Moving account a free $5 from my checking account cushion to start. It’s a drop in the bucket, but at least there’s a drop now. That should encourage more drops.
Overall, there’s been very little change, except some spending that’s covered by the travel fund. Details on that spending later.
It’s a bit disappointing that my credit card bills (I use them for 90% of my expenses) are outpacing my expense account.
July 2, 2008
| Retirement Savings |
Rollover IRA: $1,452
Roth IRA: $3,688
401(a): $4,085
403(b): $16,095
Total: $25,320
<-3%>
|
| Emergency Savings |
Catastrophe: 17,037
Problem Cushion: $1,382
|
| Short Term Goals |
Car Maintenance: $1,298
Car Insurance: $1,375
Travel/Con: $700
Taxes: $3,465
Moving: $5
Total: $6,868
|
| Long Term Goals |
House Downpayment: $43
|
| Investment Loans |
Prosper-ish: $12,630
Personal Loan: $5,000
Savings Bond: $357 (current accrued value)
Total: $17,997
|
| Total Assets |
Non-Liquid: $25,320
Semi-Liquid: $17,997
Liquid: $18,419
Expense Acct: $373
Goals Savings: $6,868
Total: $64,164
|
| Debt and Liabilities |
Truck: $4,683
Citi: $1,547
Chase: $838
Rent: $1,360
Total: $8,428
|
| Net Worth |
$60,544
|
— Up 7% —
Once again, it seems like the numbers are inflated; the “increased” net worth is due to the recent influx of cash. It’ll settle out soon enough, once the bills are paid off and the “extra” cash goes where it needs to go.
June ended far too soon, with too much left to do. I am happy that I have a bit more in my cushion, though. With the gas prices getting higher every day, I’ve had to readjust my expectations for monthly expenses, and adjust the emergency fund target upward accordingly. Of course, I will continue on my crusade to reduce expenses, but I prefer to plan for the worse (6 months of unemployment at current spending levels) and hope for the best (landing a better, higher-paying job, reducing expenses).
I’ve taken another feature off our landline, bringing that bill down to $30/month, but I want to speak with Tmobile tonight about their new version of a landline service. If that pans out and doesn’t affect my internet service ($14.99/month), I’ll switch from Verizon ($30/month) to T-mobile ($10/month, $50 start-up fee). At that rate, it’ll take 3 months before I start saving $20/month on phone services.
Oh! I added another $10 to my Down Payment account. Current total: $43.00. š
And I gave my Moving account a free $5 from my checking account cushion to start. It’s a drop in the bucket, but at least there’s a drop now. That should encourage more drops.