2018 Financial Goals

FIRE Journey Recap

Here is a refresher to our overall end state FIRE assets and debt goals, along with our 2017 ending point.

In summary, our initial 2017 EOY assets goal was $527.5k, from a $388k starting point (end of 2016). Goal was later refined to $555k and ended with $572k! Whoa!

The plan was to add $140k in new liquid assets (pre and post tax, combined, excluding 529s and principal mortgage payments). We ended up putting in $141.5k (includes company matches), rest all market gains of $42.5k.

In addition, we paid an extra year of mortgage AND bought a new car in cash! On the debt front (mortgage and one car payment), our goal was $118k, ending with $106.3 instead, as we decided to add extra funds to our mortgage after we surpassed our stretch goal the first time.

For expenses we came in $6 dollars under-budget at $74,994, talk about great planning!

Finally, our final 529 balances is $60.8k, having only added $2k total, rest market gains. Well above what we anticipated.

For reference, here is our 2017 version of these goals.

2018 Financial Goals

Below are our major financial goals for 2018, inclusive of debt balance, expenses for the year and new savings/investments added.

Screen Shot 2017-10-29 at 6.44.41 PM

Our debt consists of a single car payment ($445 per moth) which has zero interest for the next 4 years, and our mortgage.

For our mortgage we will be paying $1,400 per month in 2018 which includes escrow and taxes.  Of this total, principal payments are considered in our total debt bucket but will count the entire $1,400 as a housing expense (a more realistic number in case we become renters and I want to understand expenses a little better).

Expense goal is $70k, $5k less than our goal for 2017.  This will mainly but not solely come from a cut to our vacation budget to $8k, down from $12,000. We will still travel, I just need to get more creative in my choice and use of destinations, points and miles. I am excited for the challenge!

Screen Shot 2017-11-26 at 3.53.29 PM

Here is the breakdown for our $140,000 investments plan for 2018:

2018 Financial Savings/ Investments

401k (2) $37,000
Company match $16,800
HSA Family $6,900
RHSA $1,500
Brokerage Post Tax $71,800
Bonus Post Tax $6,000
Total $140,000

Finally, since we front-loaded our 529s and don’t plan to add more in 2018, we will not be tracking that progress formally on an ongoing basis (just year end update). I do hope to hit a combined 529 balance of $63k by end of 2018, though it is not a priority unlike the other goals.

Of course, these financial goals are a sub-group of my wider life goals, which you can find in more detail here for 2018!

What are your goals like? What are you most hesitant, excited, nervous, ready, etc for? Let the financial challenge begin!

Happy, happy, happy new year!

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