I took the time to figure out the EXACT amount I will have to save each month, for 8 months, to reach my 20000 dollar goal. I will need to deposit $2434.39 on the first day of each month. I used an excel spreadsheet to calculate the interest, monthly payment, etc. This number will change, a little bit, if the interest moves up or down.
Lately, I have acted like a flashlight, instead of a laser. This will change, as of NOW!
My “financial” focus has been off, and I have been trying to do too many things at one time. When I was trying to get out of debt my goal was clear. Pay down the balance, pay down the balance, pay down the balance. ONE, clear, easy to understand thought. Now that the debt is gone, I need a new, centralized goal. (I have learned, through experience, that I need a singular, achievable goal. I do not do well trying to do many things at once.) So, here is my new goal. It the only goal that I will focus on (financially). I will not try to do “everything” at once. I will do this one thing, and I will do it as fast as I can. Like a laser, I will focus all of my efforts and energies. INTENSITY, BABY!
This is the new goal: 20,000 dollars in my savings account at ING. I hope to have this money saved by 10-10-2006. I will focus on my Roth’s, my ESA’s, etc. AFTER I have this money saved. WHY? Because, I want the security of a large, liquid emergency/savings fund. I have 2 or 3 possible major purchases on the horizon and I want to pay cash instead of using credit.
(My wife and I currently contribute, automatically, 5 percent of our gross into retirement accounts. She has a pension, I have a 403b.)
Each month, we take in “roughly” 5000 dollars a month. Beginning in March, I hope to put-back 2500 dollars, or half of our take-home, into savings. I am excited about having FINALLY figured out my “ultimate” goal for this year. I want to build a solid “cash foundation” before I begin investing.