Here are the goals that P and I set for ourselves at our First Friday Financial meeting. I put the goals next to my motivators. Not all motivators have savings goals. They will come more into play when deciding how to spend my money on my budget in Stage Orange.
When you create your goals, don't worry about how you are going to do it, just make goals and then we will figure the rest out, including time lines, later.
* Create a larger emergency fund of 10k & put it in an online savings account to get higher interest and also to make it harder to be tempted to access outside of an emergency
* Purchase life insurance
* Pay down debts using Dave Ramsey's Debt Snowball
* Pay off car
* Pay down the condo to get out from under PMI t
* Pay off the CC (only have new table purchase which is same as cash until Jan 2009--which means that if we don't pay it off by Jan 2009 that we have to back pay interest. We will pay it off well before that to avoid problems, but want to keep the $1200 in our savings account to earn interest until probably December...we will put it with our emergency fund so that we don't touch it)
* After emergency fund is created, we would like to start investing, but that's a long way off so we don't know about the specifics.
* Start a travel fund so that we can visit Europe in 3 years
* Save money for retirement--> P is already doing his 401(k) at 3% salary, which is his company's max match...I won't have mine start until mid March after my probitionary period is up. I would like for us both to have 4 or 5%, but we have to look closer at our budget for that.
* Consider buying more organic food, if it is in the budget. See what other food expenses to cut to make this possible. Also, eat less frozen/prepared food in order to cut down on the salt content. I would like to make a food budget, but P is not on board with this idea. More to come about that later.