Earlier this week I made a list of New Year’s Resolutions. This is the second installment of several that will be detailing my goals. This one is probably one of the most personal of goals but, in keeping with keeping myself accountable, here’s number two.
Goal number two: Improve Financially
This year we will reduce (and maybe even eliminate!) our debt, increase our emergency and long-term savings and begin to invest more wisely (and I don’t mean in the stock market).
This year I think we’ll finally be able to nip that last tiny bit of debt in the bud. 2013 will feel amazing. Finally not owing anyone (except, perhaps, our mortgage lender) anything. We’ve already planned out our budget for 2012 all the way through December. After all the planning, we’ve discovered that 2012 will likely be a slightly boring year for the Autrys but that’s okay! Just bear with us for another 11 ½ months.
I’m really serious. If we decline invites to dinner, going out, movies, etc. it is not because we don’t love you! We’re just making ourselves poor so we can get this stuff off the books.
I’ll just go ahead and say it: we’re really bad at saving.
This year, in addition to paying off our debt, we’ll be building our rainy day savings. It makes me all happy inside just knowing we’ll have that security of that fall back money. Just in case something were to happen, we won’t have to fall back on a credit card and get ourselves into more debt. It won’t be a lot but it will be enough for most emergencies we might get ourselves into. We’re also planning better for those unexpected…or, rather, infrequent (but NOT unexpected) things that come up. Things like tires, scheduled maintenance on the car, home repairs, vet bills, etc. I’m sure our financial advisor is doing a little happy dance because he’s been trying to get us to do this for years. Instead, we’ve lived by the Dave Ramsey $1,000 in the bank theory. While it is great for probably 90% of the population, it has not been working for us. And he’s been telling us this for 2 years. Well, I suppose he finally got it through my hard head that I must save for these things in addition to my $1,000 emergency fund. Kudos, Justin King. Your persistence finally made it through my thick skull.
Screw the stock market.
When I say invest, I mean invest in us. In our things. In our home and in ourselves.
We have lived in our home for over 2 years and we’ve not put a dime of improvement money into it. Mainly for lack of planning. When we bought our house our realtor told us how important it was to constantly make improvements to your house, however big or small they may be. This will help us avoid costly last-minute improvements in the event that we sell our house in the future. This year we have budgeted money to specifically invest in the improvement in our home.
We might be really boring this year but our house is going to start going through some major DIY overhauls! Most of them will be done ourselves for very little money but we do plan on spending nearly our entire budget on redoing our floors. Our floors completely disgust me. Read in the next few days for the improvements we plan on making.
Maybe our house will look like this when we’re done. You think? ha!
Well, that’s it for number two. What do you think? Do you have any 2012 financial goals?