Monday, December 31, 2007

2008 Goals and Budget.

Do I have any goals for 2008? I am sitting here mulling what might be a good financial goal.

1. Max out 401k
2. Max out Roth IRAs
3. Max out ESPP
4. Cash flow $20k/year tuition

These goals have been done every year since DH got a job. And our income gone up so just more to savings. I'm not sure what a real financial goal should be? Maybe I should try to make do without a student loan next year? That is $8500 more after tax cash for DH's tuition to his MBA program. We're shelling out $20k annually for the past 2 years and honestly it hurts.

Like yesterday when we wandered around REI, I realized that we've been paying $1500/month for his schooling, which probably equivalent to us being able to buy some stuff we'd like or nicer winter clothes. Or even saving for newer cars. Although right now we might be purchasing a used car next year from a friend, as a lateral move from DH's Ford Focus to a Subaru, this is under review

I guess that's my stretch goal, no student loan next year.

5. $8500 saved up cash I'm a bit terrified. This is a lot of money to cut from an already what feels tight budget.

6. Try an all cash month. This will be hard. I mentioned it to DH and didn't understand why we should do cash. He said why am I losing rewards, and am I not nitpicky enough about tracking every expense and budgeting it. He's mad at the idea of me becoming more of a cheapskate. And I admit I have a feeling I'll feel even less like spending than I do now. I am thinking of pulling out $250 for groceries and $250 eating out for the month of January.

Budget Changes

1. Increase gas from $120 to $150/month. I am sorry to say, but I think higher gas prices are here to stay. Last January we started at $100/month and our driving did not change, just the prices. I also must add we drive less than 5k/annual (low mileage discount on our cars), so it's really that gas has increased a lot. It costs $30 to fill up a tank in both of our cars, so I'm buying 5 tanks/month @ 250 miles = 1250 miles/month. This is higher than what we do now, but I think gas will hit $4/gallon, so I might as well start pushing it up.

2. Increase Food Budget, I was spending out of control early in the year about $400. But then buckling down to $200/month. However, the prices of food has escalated. I think $300 is a more realistic budget in this next year, if prices continue to rise.

1 comment:

Fabulously Broke in the City said...

I really like the idea of stretch goals. I guess mine would be to get an EF of $5000, and then to clear my debt as much as possible, well, ONE of my debts in full (which is possible for me).

I think an all cash month will be liberating to really see if you can do it. That's something I'm trying for January as well. I'm sort of half doing it now, but I want to do ALL cash to see if it's possible.

The $ amount of rewards is neglible for one month in my opinion.. I can afford to not earn a couple of "bucks" in rewards just to see if I'm disciplined.

Good luck!!! (to you and DH :D)