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New Year Financial Goal

January 5th, 2015 at 05:52 pm

Happy New Year! It's Jan. 5, so maybe I'm a bit late.

I'm not sure if I've ever set a New Year goal in this blog. After I post, I'll check the archives to see for sure, but I don't think I have.

My financial goal for this 2015 year is to end the year with a $250,000 net worth - a quarter of a million dollars.

My current family net worth is $227,000 - 23K short of 250K. To reach the goal, we'll have to increase net worth by about 2K per month - or $1,916.67 per month to be a bit more precise.

We currently have three debts - house, mini van, and pickup. We'll be making average principal payments of about $1,080 on the house, $300 on the van, and $140 on the truck. That's $1,520 average monthly decrease in debt. The rest will have to come from growth in retirement investments. Between my employer and personal contributions, I invest about $780 per month into retirement.

Between investment and debt reduction - that's about $2,300 per month increase in net worth. As long as the stock market doesn't tank, I should reach my goal. We'll see.

Some of you my disagree with how I calculate net worth. I include home equity as well as vehicle equity, and even include $3,700 for household items. Basically, if we were to sell each and every item my family owns, how much would be left.

I do estimate home and vehicle equity low.

Posted in Debt, Investing, Personal Finance, Retirement, Financial Calculations | 3 Comments »

3 Responses to “New Year Financial Goal”

  1. rob62521 Says:
    January 6th, 2015 at 01:17 am 1420507020
    1420507020

    Hope you not only reach, but surpass your goal!

  2. Jenn Says:
    January 6th, 2015 at 01:50 am 1420509059
    1420509059

    I include home equity too, but not equity in depreciating assets because it's too much of a hassle to keep up with the value month-to-month. I don't think it's a big deal though, so long as you're consistent about the way you calculate your net worth over time. Then you're always comparing apples-to-apples.

    Good luck with your goal! It's a psychological boost to be in a position to state net worth as a fraction of a million bucks!

  3. chloe Says:
    January 6th, 2015 at 03:26 am 1420514784
    1420514784

    Good luck with your goal!

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