Here are my financial goals that I set up two years ago. These are not the end all be all financial goals that I will have forever. I don’t like setting huge goals that will take years and years to achieve, without allowing for mileposts along the way. I want to have a net worth of $10,000,000 is fine, but take time to celebrate your successes along the way.

I’m a big fan of setting goals for a relatively short time frame. I’ve always loved crossing goals off of a list. Seeing the crossed out items gives me a feeling of satisfaction at the progress that has been made.

I don’t really know when I will be satisfied or stop setting new goals. I don’t really have an I will be adding new goals to this list along the way. I have made decent progress (bolded italics = achieved, but there’s a long way to go.)

 

LIQUID INVESTMENTS

$750,000 in liquid investments

$1,000,000 in liquid investments

$1,500,000 in liquid investments

$100,000 in non-retirement accounts    

$150,000 in non-retirement accounts

$250,000 in non-retirement accounts

$500,000 in non-retirement accounts

$1,000,000 in non-retirement accounts

 

SAVINGS GOALS

Achieve a 40% savings rate for a full calendar year

Achieve a 50% savings rate for a full calendar year* see below

Achieve a 60% savings rate for a full calendar year

Achieve a 70% savings rate for a full calendar year

 

Invest $100,000 in a single year

Invest $125,000 in a single year

Invest $150,000 in a single year

Invest $175,000 in a single year

Invest $200,000 in a single year

 

NET WORTH – INCLUDING PRIMARY RESIDENCE

Net worth of $1,000,000

Net worth of $1,250,000

Net worth of $1,500,000

Net worth of $1,750,000

Net worth of $2,000,000

Net worth of $3,000,000

Net worth of $4,000,000

Net worth of $5,000,000

Net worth of $7,500,000

Net worth of $10,000,000

 

CASH FLOW – NON SALARY

Cash flow of $1,000 / month

Cash flow of $2,000 / month

Cash flow of $50,000 / year

Cash flow of $100,000 / year

Cash flow of $200,000 / year

Aquire rental property with positive cash flow

 

DEBT PAYOFF

Pay off Heloc – $41,500

Pay off primary house – $367,000

 

PERSONAL GOALS

Work < 6 months a year

Live in Europe for at least 3 months

Live in Central America for at least 3 months

Spend a whole summer on Oregon Coast

Spend a whole winter in a ski town

Own a (positive cash flow) vacation house

Never sacrifice on kids’ education – so far so good!

———–

YEAR BY YEAR SAVINGS

2015 SAVINGS:

$36,500 added to TD Ameritrade personal acct (not all 2015 earnings)

$5,500 in 2014 IRA Contribution

$8,100 mortgage, principal

4,000 HELOC Principal

18,000 401k Contribution

7,833.83 401k Company match

15,000 Stock Options

——————

Total: $94,100 – not all earned in 2015

Savings rate: Unknown

 

2016 SAVINGS:

$16,000 heat pump and insulation*

$18,000 401K Contribution

$8,000 401K Company match

$4,800 heloc

$21,052 rsus

$26,290 ESPP

$8,580 mortgage principal

——————

Total: $102,722*

Net Income: $199,000

Savings rate: 52%

Savings rate not including heat pump: 44%

* I chose to include a new heat pump and insulation as an “investment”, and therefore have put it as into my 2016 savings. So far, this does not look to be a smart economic investment, but I’ll need another year or two to accurately gauge as this winter was unseasonably cold and unfortunately, the heat pump was set to maximize comfort…not efficiency by the installers. One big non-economic upside of this decision is that being all electric and paying extra for clean energy through Seattle City Light, our house is completely non reliant on fossil fuels or coal. WIN! We also solved a big quality of life issue, as Bosswoman used to have pretty major sinus problems in winter, but ever since we had the heat pump installed, it’s been a non issue due to the internal air quality being much better than it was when we had the old oil furnace. Another WIN!

 

2017 SAVINGS: AS OF 4/9/2017

$8693: 401K

$3,922 401K Match

$2402: HSA

$20,521: ESPP

$2934: Mortgage (Jan, Feb, March + extra payment)

$5300: HELOC

$775: Tuition Prepay Savings

———-

Total:  $44,547

Net Income: $81,688

Savings rate: 54%

So far, so good. I decided to prepay tuition for my oldest kid, so that was a big outlay of cash to receive a discount. I’m not sure it was worth it, but it coincided with a large influx of cash from work, cuts the tuition bill in half for the next year, and it comes with a guaranteed return at roughly double what government bonds are paying right now. The challenge will be to stay diligent on investing the extra cash that is now not going to tuition every month.

There is a high likelihood that I’ll achieve at least a 50% savings rate this year, and an outside shot that I’ll be able to cross out the 60% savings rate if some things break right.