Sunday, 21 October 2007

Financial Goals

These are my top 5 financial goals for the next 3-5 years

  • All Credit Card balances paid off in full

  • Personal Loan paid off in full

  • Emergency Fund fully funded (my goal is $25,000)

  • Retirement Savings 9% personal contributions to match company contributions

  • Deposit for a House/Unit at least 10-15% (at this point my goal is $35,000)

For September 1, 2008, I’m aiming for the following milestones

  • 4 of my 7 Credit Card balances paid off in full

  • Personal Loan under $20,000

  • Emergency Fund funded to $1,000

  • Retirement Savings at 3% personal contributions

  • Total outstanding debt under $35,000

7 comments:

  1. Very good goals. Good luck!

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  2. Welcome Vixen!

    I think they're realistic and do-able over the next 12 months. I'm realistic enough to know this isn't going to go away overnight, so I need some milestones along to way to mark my progress.

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  3. Hi Debt Dieter
    Congratulations on setting some goals - I trust they will inspire you on your journey. It is good to see that you are thinking past debt to also considering building your retirement savings.

    I wonder have you considered that as a short term strategy it may be better financially to not add money to superannuation and instead direct the same amout to greater debt repayments?

    Maybe this article may explain it better.

    Later you can play catch up, once all debts are repaid.

    Regards,
    Matt Hern
    The Financial Futurist

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  4. Hi Matt, thanks so much for your comment and suggestions.

    Eliminating my debt is absolutely a priority, but as I'm now 38, single and don't own a home, boosting my superannuation is also a big priority to me as well.

    If I stay on track I'll have all my credit card debt paid off by September 2009, and my personal loan finalised by May 2010.

    If I add an extra 1% pretax into my super each time I get a pay rise (I have two coming in the next 12 months), I figure it won't make a big difference to paying off my debts, but will help me in the longer term.

    Once I'm at the 3%, I'll be leaving it at that until all remaining debt is paid off though.

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  5. Oh and Matt, imagine my absolute shock when I went to your website and saw a testimonial from and a photo of my cousin Sally! Talk about a small world! *lol*

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  6. Hi again DD

    I can see where you're coming from - wise financial management is as much psychological as it is about numbers.

    So, compartmentalising and doing a little bit in each compartment helps build the momentum and the motivation.

    That said, technically and based on solely crunching numbers, (for people under age 50) using your pay rise to repay debts will get you ahead faster than pre-tax superannuation contriubutions.

    That's the numbers - then you overlay that with the human element to come up with a solution.

    Ah, I feel I could easily get into a dissertation about money mindset and its costs and benefits. So I'll stop now.

    I look forward to reading what you learn in your journey.

    Best wishes,
    Matt Hern
    The Financial Futurist

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