Well, here we are in February and I am just now finalizing our goals for 2017. I spent most of January assessing our 2016 results and tried to formulate some reasonable goals for the upcoming year. These goals will certainly challenge us but if we are able to put in a bit more effort than last year, they should be reasonably attainable. Without further ado:
- Increase savings rate to 50% of after-tax income: We landed at a paltry 25% in 2016, primarily because we used a good chunk of our income towards paying off student loans rather than saving. This year, we should be able to re-allocate the income to investments to help us reach this goal.
- Increase monthly college savings by 25%: Now that Mr. SIL and I are done paying for our college education, it’s time to focus on the kids’ college funds so that they don’t end up debt-ridden like their parents. Instead of paying Sallie Mae every month, we will be adding more to 529 plans.
- Increase net worth by 20%: This goal will be dependent upon goal #1 above, as well as some help from the market. Having discovered the FIRE movement mid-way through 2016, we weren’t great at tracking our net worth in the beginning of the year. But from what I can tell, I think we came in at 18% for 2016. 20% won’t be much of an improvement, but it will be great to have most of that increase go towards increasing our assets rather than decreasing our debt.
This is the first time I’ve actually put pen-to-paper with regard to financial goals, and it has me really excited for the upcoming year! Thanks to the FIRE community for the inspiration!