NOTE: Quarterly Numbers Updated on 12/30/2016…
I started my humble journey towards Financial Independence in 2014. But, I really did not have any formal goals for 2014. I just wanted to create multiple passive income streams, protect my family with life insurance, etc. I established what Financial Independence means to me and what the goals were. I accomplished all the implicit goals I had for 2014.
For 2015, I was a little bit more formal about goal setting and set my 2015 goals and updated my progress quarterly (here). In addition, I also tracked my progress via a Monthly Progress Report (here). At the end of year 2015, I reviewed my progress towards FI and I was happy to have reached and/or exceeded most goals I set (here). I did fail to reach some goals and they will be rolled over to 2016 (below).
For 2016, I have achieved most of the goals I set out for myself. The two goals where I failed badly are: Keep eating expenses under $200 per month & Estate planning. I will try again this year.
The Financial Independence criterion for me are:
Emergency Fund | |
College Fund | $80k |
Passive Income Streams | $4000 per month |
Retirement Fund | $900k |
Roof for our Family | $750k….HCOL area 😦 |
Medical Fund | $100k |
Life Insurance | To protect my earning years….. |
For 2016, I have thought about the following goals to get me closer to the above financial independence goals.
- Keep scouting for a possible home
- 03/31/2016 Not much scouting done…job hunting kept me busy
- 06/30/2016 Went to two open houses….prices are un-affordable still….
- 09/30/2016 Went to three open houses….prices are even more un-affordable…..
- 12/31/2016 Decided to wait for interest rates to go up and prices to go down…
Contribute $9600 towards Home Downpayment Fund- 03/31/2016
$3100/$9600 done$6500 remaining - 06/30/2016
$5314/$9600 done$4286 remaining - 09/30/2016
$8495/$9600 done$1105 remaining - 12/31/2016 Done
- 03/31/2016
Contribute $2400 to 529 College Fund 2DONE (03/2016)- Vanguard 529 Plan
- 03/31/2016
$3k/$2.4k doneMinimum investment 3k - 06/30/2016 Done
- 09/30/2016 n/a
- 12/31/2016
- 03/31/2016
- Vanguard 529 Plan
Contribute $4800 to 529 College Fund 1- Vanguard 529 Plan
- 03/31/2016
$1400/$4800 done$3400 remaining - 06/30/2016
$2400/$4800 done$2400 remaining - 09/30/2016
$3600/$4800 done$1200 remaining - 12/31/2016 Done
- 03/31/2016
Contribute $16k to Passive Income Streams (stretch goal of $24k)DONE (03/31/2016)- VCADX, VWIUX,VTMFX, VWELX,VDIGX, VHDYX, VTCLX, VTMSX, VTMGX
- 03/31/2016
$36k/$16k done$0K (severance,tax refund, espp) - 06/30/2016 Done
- 09/30/2016 n/a
- 12/31/2016
- 03/31/2016
- VCADX, VWIUX,VTMFX, VWELX,VDIGX, VHDYX, VTCLX, VTMSX, VTMGX
Max out 401k contributions for both me and my wife.- 2016 401k limit is $18000 per person => $36k contributions for family
- 03/31/2016
$8.6k/$36k done$27.04k remaining - 06/30/2016
$27k/$36k done$8.97k remaining - 09/30/2016
$32k/$36k done$4k remaining - 12/31/2016 Done
- 03/31/2016
- 2016 401k limit is $18000 per person => $36k contributions for family
- Keep eating out expenses under $200 pm
- Last year, it ballooned to $377 pm..
- 03/31/2016 $356 pm ….job hunting lunches 😦
- 06/30/2016 $393 pm ….still out of control…need to tighten up…..
- 09/30/2016 $362.53 ….not much improvement….$30 pm is less
- 12/31/2016 Failed badly….
- Last year, it ballooned to $377 pm..
- Start and finish Estate Planning
- Will, POD beneficiaries, Caretaker for our child, etc
- 03/31/2016 No progress yet
- 06/30/2016 No progress yet
- 09/30/2016 No progress yet
- 12/31/2016 Motivation lacking….perhaps due to tough choices…
- Will, POD beneficiaries, Caretaker for our child, etc
Get a more stable job.DONE (03/2016)- Current job is on very shaky foundations
- 03/31/2016 New job yeah!!
- 06/30/2016 3 months into new job…doing okay.
- 09/30/2016 6 months into new job…doing okay.
- 12/31/2016 9 months into new job…doing okay
- Current job is on very shaky foundations
- Vanguard 529 Plan
Those are great goals! I always stress to my friends how important it is to have a will. I’m shocked at how many of my friends that are young parents that don’t have anything set up. Happy New Year!
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Thanks for dropping by and for the kind words!
Until last year, I was like your other friends 🙂 I have been enlightened now and will get it done this year.
Have a happy and prosperous new year!
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Estate planning is one of the thing I need to do a throughout job. Thanks for reminding me about it.
Happy new Year!
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Hey humblefi,
The fact that you have a plan in place and donthe effort to check your progress gives you a good chance to reach your goal. Goals should be a challenge, so rolling some goals to the next year is ok. After all, it is a journey towards financial freedom, not a one day workshop…
Good luck with your 2016 goals
At
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Great list! To further speed up your retire by age 50 goal, I’d recommend setting up a Roth IRA. You can contribute another $11,000 per year ($5,500 each).
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Thanks for dropping by and thanks for the suggestion! We oscillate between qualifying for Roth IRA and somewhere in the phase out zones. Trust me on this, I live on the west coast and we struggle to maintain a decent life even with that salary…taxes and housing are real budget busters….and we still rent 😦 I made a push last year for tax free CA MUNIs to get tax free (both federal and state) income and compounding. This year, we are anticipating lower income due and I will surely explore ROTH IRA. Thanks for bringing it to my attention…a timely reminder I might say!
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I assume you live in the bay area? That’s where I’m from and lived in San Francisco for 7+ years so I can totally relate.
So in your case, you can take advantage of a back door Roth IRA. 😉
Another savings tip – sell your car and use a car sharing service like ZipCar. This saved us close to $1,000/m plus we rented out our parking spot for $250/m. If you don’t live in the city or have to commute, it wouldn’t really work though.
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