Ernie over on Purple Sweatpants inspired me with his Big Hairy Audacious Goal which resulted in this post.
Goal 1: Goodbye Debt
In July 2015 I had figured that I would be out of consumer debt in 30 months. In August and September it became clear that my aggressive plan would allow me to pay this debt off in less than a year. I’m aiming to pay off my debt by August 2016. Once this is done I’ll be able to start on my other goals.
Goal 2: Emergency fund
While technically I have enough money to not live paycheque to paycheque all the money is currently in savings accounts earmarked for specific spending. Generally it’s non-essential spending so if I were to not get paid one month I’ll be alright. For me this isn’t enough security. I’d prefer to have enough savings to keep me covered for 6 months.
Once I reach my August Goal, I’m going to put some of the debt repayment money toward an emergency fund to be used in case of job loss. I’ll revisit this in September to see how long it will take to build up the buffer I want.
Goal 3: Start Home Improvement Fund
The deal was that when I paid off my debt I’d be able to put money toward my home improvement fund. There are 2 big renovations that our home would value from: the kitchen and putting in a washroom in the basement.
I will have to revisit this and figure out a reasonable budget for these in September and then a savings timeframe.
Goal 4: Help ML
Originally when I started this process, I thought I’d pay off my debt, funnel some of that money to savings, and put the rest in my budget to play with. Doing this exercise for the past few months made us realize that we didn’t miss the money I was putting toward my debt. Rather it made us more conscious of where our money and energy were going.
ML has a debt load of his own that he’s paying and my aim is to use some funds to help pay those beginning in September.
I’m not sure where this year will take us but I feel good planning that this is the year I will finally be debt free!