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2018 Goals

December 29th, 2018 at 06:42 am

I am just cutting and pasting so that I can update my sidebar for 2019 goals. I expect a $20,000 decrease in salary/wages/OT, and so 2019 numbers will be more muted. Though honestly, by the time you factor taxes/401k (allows me to contribute 9% to retirement while keeping our cash flow the same), and extra/side business income, I expect 2019 to probably be about the same (cash flow) as 2018 (which was a very flush year for us). The one big change is that we will be very retirement heavy, as a result, which I mentioned below.

2018 Goals

**Financial**

[/]$11,000 to IRAs 2018 (MAX)
...($6,090 @ 10/31/18)
...We save $900/month
UPDATE: I diligently saved $900/month until I decided to quit my job in August.
For 2019, I have to abandon funding IRAs from *my* income.
I took a $11,000 pay cut, so this is the obvious solution. We will max out our IRAs regardless; will fund with other income or assets.

On the flip side, I am contributing 9% to a new 401k (my contribution + employer contribution). My contribution is a complete wash with reduced income taxes. So I am able to contribute 9% to retirement without coming up with more money. This is very reminiscent of our early one-income years when I had 10% work retirement contribution and we just funded IRAs with other monies. In both cases, we were contributing 20%+ of our gross income to retirement and didn't have much left for other savings/investment vehicles.

We will be "retirement heavy" until I get a raise and/or MH returns to work full-time.


**NOTE: WE DID FUND OUR IRAS, BUT JUST NOT FROM MY INCOME**

[ ]$5,000 to savings
...($0 @ 12/31/18)
...$300/month, plus interest.
...Topping off with snowballs
UPDATE: Savings was up about $8,000. I funneled everything into cash this year in prep for job transition. But I ended up putting all this money towards a car purchase. The net result is -0- change to savings.

[ ]$9,000 to investments
...($1,500 @ 12/31/18)
...$250/month, plus snowflakes
...Will also invest tax savings ($2,000) when contribute to Traditional IRAs
...Will top off goal with snowballs
UPDATE: Due to job instability and substantial decrease in income, have only contributed 'snowflakes' to investments this year. Goal for 2019 will be to fund retirement instead. This is due to a combo of less income and more retirement space to utilize.

[ ]$3,000 to mortgage
...($0 @ 12/31/18)
...$3k per year to pay off in 20 years (from last refi); also ensures that we pay more principal than interest
...Funded with overtime
UPDATE: Will probably abandon this goal for 2018 and future. I am no longer working OT (new job) and was never paid for the OT I worked in 2018.

Goal savings rate = 30% of gross

**Actual savings rate = lord if I know. I am just so happy that I have been able to cash flow the insanity this year. Mostly, we funded IRAs and threw our snowflakes into investments. We did also throw about $1,000 into MH's 401k. Savings rate was probably around 15%.**

In addition, we save 100% of MH's (net) income ~ most goes to 401k/taxes.

**We only did the minimum for match this year because I expected employment upheaval. This is just a very small part-time/seasonal income, and was probably -$0- after you factor taxes, 401k contribution, and covering my unpaid time off work.**

2 Responses to “2018 Goals”

  1. Joe Says:

    Nice job MM!

    One more goal for 2019 might be to familiarize yourself with the college FAFSA form. This is something I wish I would have done earlier. I have 2 kids in college now and wish I had more money in retirement accounts (they don't count) and less in after tax accounts (this money counts). We got more financial grants than I expected but we left a lot on the table.
    Also, keep money in the parent's name because less is counted, even 529 plans should be in the parents names.

  2. MonkeyMama Says:

    @Joe - I am familiar with FASFA. It's pretty N/A for the middle class where we live, because wages are on the high side and colleges are so inexpensive. I highly doubt we will even bother completing a FASFA. Accordingly, we have not planned around. But it's one of those "personal finance" things.

    Thanks for sharing though. Is a good reminder to people with high school age kids.

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