Short and sweet, here are the goals I’m reaching for in 2007.
My 403b = $12,000
My Wife’s Pension = $4000
(The above amounts = 20% of our gross salaries.) Baby Step 4, check!
My daughter’s ESA = $4000
My son’s ESA = $4000
(The above amounts = 10% of our gross salaries) Baby Step 5, check!
My Roth IRA = $4000
My Wife’s Roth IRA = $4000
(The above amounts = 10% of our gross salaries) Baby Step 7, check!
Tradeking.com Investment account = $16000
(The above amount = 20% of gross income) Save For House, check!
In 2007, I hope to save or invest 60% of my gross income. I’ve listed these goals in the order of their importance to me. I have already directed my employer to withhold 1,000 dollars per month for my retirement, so my retirement goal is a done deal. I am now saving money for ESA contribution. After I reach my ESA goal, I’ll move towards my other goals.
For those of you unfamiliar with my situation, I am saving for a house and automobile replacement. I’ll be using a combination of Roth IRA’s, Taxable Investment Accounts, and my ING Direct Savings account to do so.
Analysis: On the one hand, these are very, very aggressive goals. On the other hand, if I am going to live without borrowing money, I HAVE to save for future purchases, especially for major purchases. Remember, the above percentages come from my GROSS salary. I still have to deduct taxes, health insurance, and tithe. It’s going to be TIGHT!
Thanks for putting this up! The thing about the goals is that even though they are tight, you’re likely to achieve them. Have you considered writing out some stretch goals?
Best,
James
James, If by “stretch” you mean even more savings, then the answer is, “YES”. Just add 10 percent to all of the above!
NCN,
Wow, saving or investing 60% of one’s gross income is outstanding. I am impressed with people that get to 20% of gross
Good luck on your goals.
That sounds nice, but I’m not as optimistic as Super Savor. I see no way you can save 60% of your gross. I hope you leave this comment on here, because I would like to come back in a year and see if you accomplished it.
Good Luck!
Martin, Thanks for the positivity my man :>
Just kidding… You are probably right… but, I like to set my goals rather high. I’d rather fail (and still have a bunch of money saved up trying) then plan low (and meet my goal and not have very much saved)..
Thanks for comment… and I shall leave it where it is. See ya in 2008!!!
Just wondering how the saving / investing 60% is going so far?
Well, 20% is retirement and that’s pretty much guaranteed. (It’s taken out before I get my check.) The other is going pretty well. I’ll actually write a post about this at the first of March.