This may be a little early but I just got my last paycheck for 2008. It's been a little over a year that I have been on this site. The thing I find most interesting about this site is the helpful comments, the encouragement, and thoughtful alternative. Even if you disagree with people, their views, etc, this site continues to offers disagreement in a respectful way.
You also have a community here where people try to elevate themselves above petty jealousy and try to be truly happy for you and what you accomplished.
Enough of that and on to the review.
My original goals for 2008 were:
1) Pay of $6,000 in CC by May 1st
2) Pay of one car by August 1st (currently $5,700 is owed and last payment is 2/09)
3) Invest $10,000 by year end in Taxable assets
4) Invest $15,500 in 401(k)
5) Review and reallocate (if necessary) retirement funds by end of Q1
They quickly mushroomed to these:
1) Pay off debt (except mortgage) by October 1st
. a) Pay off CC
. b) Pay off Car
. c) Pay off Car 2
. d) Pay off wife's braces
. e) Pay off son's medical
3) Invest $15,500 in 401(k)
4) Review and reallocate retirement funds by end of Q1
5) Will by end of Q2
6) Life Insurance by end of Q2
MOVED TO 2009
2) Invest $15,000 by year end
7) Save $4,000 for college
Could I have done more in 2008? Probably. But as people here point out, you have to find a balance in your life with your family.
All and all, I experienced huge changes this year. I am out of debt (except for the mortgage), living below my income, living on a budget, have great communication with my wife, and truly feel as a team.
For people starting this journey, I think the biggest two things to start is to be honest and non-judgmental. What does this mean? You have to be honest with yourself and spouse about how much debt, expenses, and income you have. That second thing is not to blame each other for the problem. The truth is the both of you are to blame and you both have to work together to get out of this mess.
If you can do those 2 steps, the rest are easy.
The next step for me and my wife were setting up goals and the budget. We also set up some ground rules for the budget. Any changes to the budget after it was set, we would both have to agree. If one of us didn't agree, the budget didn't get changed. The first few months were tough on the budget. We forgot this expense or another. I actually had a line item called "Things I forgot to put on the budget" and I would fund this with a couple hundred bucks.
Once the budget started settling down, we could really start tracking our goals and looking at the progress. At this time, our relationship started to really change from the universe revolves around me to us. We were both making sacrifices for our common goals.
We still have a couple of common goals left, but soon we will be prioritizing are own goals into the mix. She wants new furniture and I want a riding lawn mower and shed. 2009 should be interesting as our individual goals come into the mix.
And thanks again everyone for your encouragement, thoughts, and advice. The journey hasn't ended. It's just starting.
2008 Year in Review
December 29th, 2008 at 04:31 pm
December 29th, 2008 at 04:58 pm 1230569892
December 29th, 2008 at 04:59 pm 1230569990
December 29th, 2008 at 05:33 pm 1230572039
Thanks BA
December 29th, 2008 at 05:34 pm 1230572062
I'm looking forward to the next year for you; I'll get a glimpse into being debt-free and not having to do damage control; using the money positively and proactively instead.
December 29th, 2008 at 05:50 pm 1230573056
Congratulations on all your accomplishments! At this point, it will just get better, right?
December 29th, 2008 at 06:27 pm 1230575238
December 29th, 2008 at 07:03 pm 1230577398
I'll weigh in as a neutral party on the riding mower vs. furniture issue.
Just ask yourselves when is the optimal time of year to buy each.
Do you want to buy when they are at the deepest discount? If so, then maybe the furniture would come first (winter sales), and then the riding mower (after summer sales).
But if "optimal" to you guys means when you would get the best use out of them, then go for the riding mower first (so you can use it during the summer lawn mowing months) and then the furniture (after the kids have gone back to school so it will stay cleaner longer, but in time for holiday entertaining).
December 30th, 2008 at 03:07 pm 1230649664