Having just closed the book on our 2012 financial goals, I thought I would share our 2013 financial goals. These are goals that tie directly to our personal household finances. I figure that posting them will leave the door open for suggestions as well as give me something to hold myself accountable to. If you have any suggestions or ideas, I’d be more than happy to hear them.
- Health Savings Account – We switched to a High Deductible health insurance plan, and tied to that is a health savings account. I am currently researching the best place to open this (since our company plan does not include the HSA aspect). I’d like to have this open and funded in January, setup regular contributions of at least $200 per month, and end the year with at least a $2,000 balance to carry forward into next year.
- Home Value Increase of 4% – Our value increased by an estimated 6% last year. This would be another nice increase. It would still leave us far below what we paid, but would allow for a continued growth in equity.
- Auto / RV values decrease by 13% – We don’t plan any new purchases in terms of cars or our RV. I’m estimating that depreciation will reduce the value by 13% from the beginning of the year.
- Cash savings reduced by 11% – Although I expect to save a little money toward our long term goals, we will be taking a hit this year that I’ve known is coming, as we will have to pay for a new roof. A high yield savings account can help you earn a favorable interest rate on your cash holdings.
- Retirement assets increase by 15% – Regular contributions will hopefully push this number up, and I’m hoping for a modest gain in the markets. I’m still not happy with our total number in terms of my age and what we have, but slow and steady wins the race.
- Investment account increase of 19% – Last year I set an ambitious goal of over 30% and saw this come well short. This year, I’m still hoping for a gain that would outpace the market. From what I’m seeing in terms of analyst and sector recommendations, I think this is achievable.
- Reduce debt by 6% – The only debt we have is our mortgage payment and a student loan payment. Just the regular payments would allow us to reach these goals and would reduce our mortgage balance by 5.7% and our student loan balance by nearly 13%. I don’t plan on paying extra as any additional money that I’d normally put to paying off debt will instead go toward savings.
- Net gain increase of 17% – If we met every goal, our net worth would increase by 17%. This is short of what we acehieved in 2012 (which was a 28% gain) but would still be pretty nice growth. I’d like to see this even higher, but am trying to be a little conservative. We still have a long ways to go toward making up the losses in our net worth that came about during the Great Recession, so even though our net worth is at ‘record’ levels, it is not where I had envisioned it being as I enter the last year and a half of my 30’s.
I’ll provide some regular updates throughout the year. As I mentioned above, I’d love to hear about your goals or any suggestions you have that can help us beat our goals.
Thanks and here’s to a great 2013!