Friday, January 1, 2016

My goals for this site and a few more comments

A quick word on what this blog is not about or won't do.  This site will not have lovely pictures or tables.  I spend my days staring at a computer and when I get home the last thing I want to do is put together a chart.  Nope I'm all about words.  This blog also won't discuss the itty bitty decisions I make on a day-to-day basis that enables me to have money left over at the end of the month (money that I will then save or invest).  This blog comes after all that stuff, and will be focusing on how (and why) I choose to direct those left over dollars to this investment or that investment.

Part of the reason that I have started this blog is to self-educate - namely with investing.  While all my retirement monies are in mutual funds, I'd like to own some individual stocks as well.  I'd also like to always make sure that I am able to manage my own investments - be they mutual funds, ETFs or individual stocks.  But this requires that I actually put in the time to study the companies whose stock I buy as well as the general financial landscape.  It won't happen over night but it can happen and this blog will allow me to post what I've learned (links etc. - namely for myself to look back on) as well as keep me accountable.

My 5 financial goals for the next 10 years are as follows:
1) Pay off my primary mortgage.  'Nuff said!

2) Invest $100,000 into a new brokerage account.  (This is the amount I want to invest not necessarily the balance of that account at the end of the 10 year period since the market goes up but also goes down pretty often.)

3) Save $25,000 in a new "Rewire" account.  This account will help me launch a new life in 10 years...whatever that new life will be :-)

4) Save $25,000 in a my G2H-FU account (stands for go to hell..f-u...).  This account gives me a different type of freedom and if the job gets crazy, I might need to pull the trigger, quit and then drain this account.  I am seriously hoping that isn't the case.  Because if I can avoid touching this account, this will be a back-up to my Rewire account.

5) Save $50,000 in my 2nd Home account.  This money will be used for the down payment/closing costs/furniture/etc. for a second home.  My current thought is that in 10 years, once my primary home is paid off, I will rent it out.  This income (after-tax) would probably be between $1,000-$1,500/month in today's dollars which (I hope) would be enough to cover my future basic costs.  And it would give me more freedom to make the switch to "rewire" and move to a different industry/different area if I choose to.
*For now I'm okay keeping #s 3-5 in cash because inflation in the U.S. is at an acceptable level.  Should things change over the next 10 years, I will have to change my strategy.

Okay that's a lot of money!  I know!  But it's over 10 years.  It means that I will be scrimping and saving, but also trying to increase my income with raises.  I will be using tax refunds and bonuses to help me reach these goals since I cannot do it on my current salary alone.  (I don't plan to receive any inheritances in my life time so yeah Pru isn't counting on that...)

I will put up some trackers for the above goals.  I will report my mortgage in percentages.  But for the rest of them I will post when I actually move money and update the trackers too.

My salary is paid 2x/month.  Ideally, I will be moving money 2x per month.  But I'm not 100% sure of that.  I think one of my paychecks will be used primarily for my basic living costs so I may try to use one paycheck to apply to the above goals.  This all relates to how frequently I will post.  Probably at least once a week but more likely a good 2x per week.

Next up is my goals for 2016!

Pru

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Positive comments are always welcome. Negative comments will be deleted. Selling something - ain't gonna happen. I'm not a financial adviser and you're probably not either. Careful what you recommend.