2012 is here and it’s time to look at our financial goals for the year.
In order of how I have things tracked on our balance sheet:
- A modest increase in our home value – I would be happy if our home value increased by 1% over the current value. Last year was the first year in many that we actually had an uptick in the noted value, so it would be nice to see that continue.
- A modest decrease in the value of our automobiles – I’ve budgeted a 13% decrease in the value of our automobiles (and RV) We have a 2007 Buick Rainier, a 2006 Pontiac G6 and a 2004 Jayco Feather camper. I use Kelley Blue Book for the car values and I’ve decided to do a straight-line depreciation for the camper.
- A 25-30% growth in our investment account – I am bullish on some of the stocks I own. If even one or two can break out, this could lead to out performance of the market, which would be nice since our holdings under performed the market in 2011.
- A 15% increase in our cash holdings – We took a hit in our cash savings when we bought the camper. This increase would bring us back to where we were, and increase our earmarked allocation for some of the savings goals we have (like a new roof in 2013-14)
- A 15-20% increase in our retirement balance – Regular contributions plus a nonimal gain the stock market would allow us to reach this goal. If the market has a down or flat year, we could potentially miss this goal.
- A 5-6% decrease in our mortgage balance. Regular payments would allow us to make this goal. Now that we have re-financed into a 3.375% 15-year loan, we are comfortable with making the minimum payments for now, choosing to put extra into cash, investment, or retirement funding.
- A 11-12% decrease in our student loan balance – Again, minimum payments will allow us to meet this goal. With a locked in rate of under 2.5%, and a monthly payment under $100, we are OK with not paying extra on this for now.
- An overall net worth increase of 22%. All of these things together would add up to a 22% increase in net worth value for the year. We only achieved 10% in 2011, which is pretty good, but below the growth I want to see.
Hopefully market, job, and other conditions go our way to allow us to reach our goals in 2012. Exceeding them would be even better!
What are your goals for the new year financially?