Yes, I realize it’s the middle of January already, so this post is a little belated. “Better late than never,” my mom always says.
My goal this year is to have a post every month about our finances and how they change from month to month, as well as the review process that goes into determining each monthly change.
Why am I sharing this with you?
As with most personal finance bloggers (Adam Baker of Man Vs. Debt in particular), I feel that people don’t talk about money enough. With their friends, with their families, even with their spouses or significant others. People don’t talk about money, and they get into trouble and can’t figure out how to get out of it.
My sharing our financial situation and plans with you is my way to shed light a little light on a still rather taboo subject. It also helps me stick to my goals, which is a nice side bonus.
I have some of last year detailed on the “Our Finances” page, so if you want to check out what we’ve been doing so far, you can look there.
Our Finances – January 2011
So here we are, January, 2011. In 2010, my husband and I moved across the country and spend the better part of the year either saving up for that or recovering from having done it.
Our Big Financial Goals for 2011
This year, our goals are to
- rebuild our beginner emergency fund ($1,000),
- finish paying off our credit card debt,
- start paying off our car loans, and
- continue saving for retirement.
Where we currently stand on those goals
Our Emergency Fund
- Current value: $206.54
Monthly payments: We currently contribute $100 per month automatically, and I intend to contribute another $300 per month manually.
Estimated time to goal completion: In three months, we should reach our goal of $1,000. Current debt: $3,955.37
Monthly payments: $50 currently; $300 (possibly $600) once our emergency fund is paid off.
Estimated time to goal completion: Eight months, or September 9th.
Paying Off Our Car Loans
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Current debt: $16,737.40 and $2,206.51 (Total: $18,943.91)
Monthly payments: $478.87 currently; $878.87 starting in October, after our credit cards are paid off.
Estimated time to goal completion: At those rates, the smaller loan would be paid off in June of 2013, and the larger loan would be paid off in August of 2013.
Saving for Retirement
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Current value: Husband: $2,259.76; Me: $0
Monthly payments: Husband: $120, deducted automatically; Me (soon): $60, transfered automatically
Estimated time to goal completion: 38 years (assuming a retirement age of 65)
Changes in January
In the first part of January, I got a second job, thus increasing our income. With this increase, we will be able to make better headway toward all of our goals.
The Spreadsheet
Every month, as I review our budget, I update my Balanced Money Formula spreadsheet.
(See previous months finances here.)
Stay tuned in early February for an update on our progress.
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