Time for a 2012 goals update because we met the first three way faster than I expected!
Our financial goals for 2012:
1. Pay off the rest of student loans Done as of March 10th, 2012!
Our goal was May 2012 but we made our last payment 2 months ahead of schedule thanks to picking up extra shifts at the hospital and selling a car.
2. Complete our 6 month emergency fund
Done as of May 2012!
Wow, I originally thought we we’d START pouring into this fund in May and it wouldn’t be completed until September!
3. Increase our retirement fund to 15% of our gross incomeDone as of June 2012!
We were putting 7% toward our 401k with a 3% employer match. Our 15% goal is without the employer match, so we opened two Roth IRA’s in June and plan to max out one and put the rest in the second to equal 15% total.
Now for some new 2012 goals…
There are a few changes coming up in the next couple of years that we need to prepare for. To prepare for these, we’ve added more goals:
4. Save $4,500 for a new (to us) car.
Dave’s employer will likely be relocating to a different building. It will only be a few miles down the road but we currently pay a little extra for our apartment just so Dave could walk to work and we could share one car. Since it won’t be within walking distance anymore, we’ll need a second car. $4,500 should get us a new(ish) car since my dad buys cars with the engine thrown in the trunk for dirt cheap and fixes them up like new. We’ve put in our preferences for what cars to keep an eye out for.
5. Save up 50% of a down payment on a house
This is so exciting to say! It’s a REAL goal, not just a “it would be nice someday” goal. Dave and I decided that we don’t really have any reason we’d move out of the area we currently live in, so we’ve decided to start searching for a more permanent residence. Housing and taxes are very pricey in Ann Arbor compared to other cities in Michigan, so it will be a challenge to find something we can afford that’s not a dump. A conclusion we both came to is that we value our time and don’t want to spend it commuting, so we’re willing to pay a little more to live closer to the city. We aren’t sure how much the house we get will end up costing, but we plan to have enough saved up to put a down payment by June 2013 since that’s when our apartment lease ends.
That’s it for 2012 financial goals. The car will be saved up for in a couple months and we’ll be throwing the rest toward a home sweet home. Here we go!
Are you in need for a 2012 goals update? What goals have you already met?