2009 Financial Goals Quarterly Update
March 31, 2009 Leave a Comment
New Year’s brings with it a variety of resolutions. For 2009 I decided that my resolutions would be focused on my finances, attacking every major financial theme which I felt needed to be fixed. My list consisted of 2 main points; Debt & Savings.
I have been working towards being debt-free from the first moment I incurred debt, which as luck would have it, was credit card debt at the age of 18. My first financial resolution was to be credit card debt free by the end of 2009. Given the amount of debt I still had lingering on my cards, I decided to focus my attention on this goal like a laser beam and get it taken care of as quickly as possible. I managed to pay off my entire balance within 2 months. I sold everything I could imagine on eBay, earning myself nearly $2,000.
The next debt that I needed to begin paying down was my car loan. At the beginning of the year the balance stood at $7,380. My goal was to have this debt paid down by 50% ($3,690) by December 31, 2009. Today, 3 months later, the balance on this account is $5,713, a reduction of $1,667. In 3 months I am already halfway done with my goal. It looks like I may need to readjust my goal and set my sights a little higher.
Student Loans are the next debt on my list. The longer I wait to pay them off, the worse they will become. I decided to at least get started towards repayment by setting up my bank account information with my lender. I have not made any payments yet, though I know I should. I am procrastinating because I have other areas which need more attention at the moment than student loans. It doesn’t help that I am not required to make any payments on them while I am still in school, the sense of urgency is practically eliminated because there is no monthly statement.
Savings
My one and only savings goal is to build my Emergency Fund to $5,000. That goal is not going so well. I have been focusing so much of my attention on paying down debt that my savings has suffered. I also dipped into my savings in order to pay cash on our new bedroom furniture. My total savings stands at a little over $1,000. It is not enough for me to feel at ease about the amount of cash I have in the bank. Most of my savings is in my 401(k) which I cannot access.
My savings will take another hit at the end of the week as my car is going to be in the shop being worked on. I recently had my tires and brakes replaced and there were some other minor issues that needed attention, a leak in the transmission lines and the intermittent shaft needs replaced. I’m also due for an oil change. I’m sure this will end up costing me around $300.
My employment situation is causing me to be more careful with my money and I don’t spend very much on things that I do not need. It is hard to find a balance between being cautious and being fanatical. With my recent bicycle purchase I was able to get a great deal on something I’ve been looking into buying for over a year, but then realized that there were numerous expenses which came along with owning a bike, which leached out money I wasn’t prepared to spend. It isn’t that I couldn’t afford to spend the money, instead I had to forego my savings goal in order to take advantage of a good deal. Now it is a matter of turning off the money faucet and building up the reserve to a comfortable level.
My first quarter has been filled with some excellent achievements (eliminating my credit card debt, and being ahead on my car loan repayment goal). I also have some opportunities that I can be working towards (my Emergency Fund and Student Loans). I expect the second quarter to be very challenging as I am going to be faced with a huge transition in my life, including relocation and a career change. I expect most of my financial goals to be put on hold until the transition is complete and I am settled down. I hope to remain, at a minimum, at the point where I am at when I leave and not fall behind on any of my goals. That may be challenging but only time will tell.









