Last week I wrote about our household's financial performance. Having beat our goal of a 17% net worth gain by a few percentage points, I set our sights on what our goals are for 2014. I love this time of year as others post their goals, not just to see the goals themselves, but to see the priorities and also the reasoning behind their goals.
As such, here are our goals!
- As seamless a transition as possible between my ‘old' and ‘new' employer – I will be working at the same job doing the same thing, even sitting at the same desk. But, our work is being in-sourced as the organization has decided to bring most IT services in house. My salary is staying the same, but there will be adjustments across the board. Benefit deductions will change. We will go from receiving 24 paychecks a year to 26. The offerings for some things, like life insurance, may need to be supplemented. Added together, this will present enough changes so that I'll have to make some changes to how I track things on a detailed level. I'm hoping I can get through this relatively stress free.
- A modest gain in our home value – According to my estimates, our home went up 5.6% in 2013 after a 6% gain in 2012. I'm thinking that things will start to level off, so I'm hoping for a modest 2% gain in 2014.
- A 20% decline in the value of our cars and camper – I think this one speaks for itself.
- A 10% gain in our trading account / personal investments – I don't think that the stock market will continue its rally anywhere near the extent that it has the past several years. I don't think we'll be headed toward a recession, I just think the market will take a breather.
- A 5% increase in cash savings – If nothing goes wrong, then we should be able to beat this pretty easily, but as I learned when I got stuck with $2,000 in costs between a new dishwasher and car repair bills last month, it's best to plan conservatively and anticipate the worst.
- A 12.5% gain in the value of our retirement funds – Again, I don't think the market will give too many gains here (though I hope I'm wrong), so I think this would come primarily from contributions. My transition in employment will actually result in getting an employer match, something I haven't had in a few years, something which will definitely help toward this goal.
- A 6.6% reduction in debt – If we make the regular payments on our mortgage and student loan payment, this is what I estimate the reduction will be from our current balance.
- This would result in a 13.6% net worth gain – If all of these things come out exactly as estimated, our net worth would go up by 13.6%. This would be a big cut from the 27% and 25% gains we've seen the past two years, but I think it's time to start setting our expectations a little more conservatively.
That's it. I'd love to say that we're going to do something big like ELIMINATE ALL DEBT or MAKE $500,000 IN THE MARKET but things are a little less exciting than that. In the end, we're still working hard to increase our assets and reduce our debts as we work slowly toward building stability, financial independence, and wealth.
I'd love to hear your goals. Share them in the comments below or point me to your site, if you've also written a blog post outlining your goals. I wish success for us all!