Like most frugal families we make plans in an effort to help us map out how we will reach a certain destination. Whether that destination be financial, spiritual or otherwise goals are important.
We try not to make our goals haphazardly but with much prayer and supplication. We start by making a list of things we believe need accomplish. We do this in December and pray until we have clear answers as to what we should do. We have been prayerful regarding what our goals should be and have been patiently waiting on God to guide our choices.
We don’t have clear answers on everything yet but here is an overview of our 2011 financial goals.
Continue the Dave Ramsey plan. We are on Baby Step #3 which is to put 3 to 6 months of expenses in our savings. This is being funded with all of the money rolled over from our Debt Snowball which was about $300 a month. We will also help fund it with any income tax returns we may receive.
Purchase a second used car. The car that we have now is beginning to deteriorate and instead of putting more money into it we will buy another one. Hopefully our current car will last long enough for me to have my own car for part of this year. That would be so much of a convenience. 🙂
Start investing 15% of our income into a retirement plan. This is Dave Ramsey’s Baby Step #4. We will use any extra income plus the $300 from our Debt Snowball to fund this step. The $300 is what will become available after our 3 to 6 months expenses are fully funded.
Begin making extra mortgage payments. This will begin once we have fully funded our 3 to 6 months of expenses and are investing 15% of our income. Our mortgage is a little over $860 but we’ve been paying $900 since December 2009. We plan to add all the extra money we can find in our budget to our mortgage. As we get closer to this step we will calculate an exact number.
Writing our financial goals acts as a road map. It helps to fuel every decision we will make this year concerning our finances. It helps take the worry out of things and allows us to move forward toward the goal of becoming DEBT FREE.
Habakkuk 2 (KJV)
I will stand upon my watch, and set me upon the tower, and will watch to see what he will say unto me, and what I shall answer when I am reproved.
And the LORD answered me, and said, Write the vision, and make it plain upon tables, that he may run that readeth it.
For the vision is yet for an appointed time, but at the end it shall speak, and not lie: though it tarry, wait for it; because it will surely come, it will not tarry.