2006 financial goals

In 2005 we began our journey toward achieving financial independence by getting our expenses under control, paying down two high interest loans, maxing out our retirement accounts and establishing a cash reserve for emergencies and annual property tax payment.

This year we want to continue with the same determination and rate of progress we showed in 2005 and build upon the foundation we worked so hard to achieve. So, this year we are hoping to:

• Continue to make the maximum allowed contributions to our retirement accounts as we've done in the past - wife’s 401k ($15,000), husband’s Simple IRA ($10,000), and both Roth IRAs ($8,000). However, this time around we will be more aggressive in our contributions at the beginning of the year to maximize our long-term returns.
  status: completed



• Continue to contribute to our cash reserves each month until we reach a total of $13,000. The majority of this will be designated as our emergency fund (3 months of living expenses = $9,000). The remaining portion will be used to pay property tax on our home at the end of the year which will be $3,869.48 according to the bill we received in October. Last year saw us contributing $800 per month to quickly bring us up to speed; this year will be a more relaxed approach with monthly contributions closer to $450.
  status: completed



• Transfer the student loan #2 balance to a 0% no-fee credit card and completely pay it off by the end of the year.
  status: completed



• Build enough available credit to transfer the second mortgage balance to a 0% no-fee credit card(s) in 2007.
  status: completed



• Find a new job for the husband who has achieved all that is possible with his current employer and is looking to make a move that will further his professional growth and better help in accomplishing our goals towards achieving financial independence. The primary requirements for the new position will be greater challenges and responsibilities, higher income and a full 401k package with an employer match.
  status: failed



• Reach $150,000 in net worth by year end.
  status: completed