It’s that time again! The time when I sit and break down our monthly financial goals for you to see. You can read last month’s Financial Goals Update post right here.
I do this for two reasons. Number one, to help us stay accountable and reach our financial goals. And, number two, to hopefully inspire others in creating goals or sticking to their budgets themselves.
If you have been following along every month, you know that we are Blogging Through the Baby Steps. We saved up a beginner emergency fund. Over four years, we were able to pay off over $80,000 of debt using Dave Ramsey’s Snowball method. Last year, we built up a fully funded emergency fund of six months’ worth of bare bone expenses. And now, we are working on saving for a couple of big ticket items that are pretty big needs while also researching for aggressive retirement savings.
Without further ado, here is our monthly financial goals update for January!
LAST MONTH’S GOALS
1 – Save half of what we need for our riding lawn mower.
2 – Find 401(K)s from previous employers.
3 – Research IRA options and investments.
HOW WE DID
Ugh! Stinkin’ Murphy! We literally JUST finished our emergency fund. And THAT week, our van overheated due to a busted water pump. So 850 bucks later…We had to tap into it. Which meant we had to pause on our other goals to get our EF back to where it should have been.
And that’s not all, folks. The next week, we had a little dental emergency…$250 we were not expecting to spend.
Thankfully, we were able to refund almost all of that by the end of the month. Holy 3 paychecks in January! But that means we didn’t make any progress on our goal for saving for a lawn mower.
We did find our 401(K)s from former employers, so we are deciding whether we want to leave them where they are or if we want to roll them over into an IRA.
We also did tons of research in various stocks and index funds. Man, oh man, now that we are almost ready to pull the trigger it seems so much scarier! Not to mention, the market is way overdue for a correction.
I can’t help but think as soon as we jump in and invest, we will lose 20% because the market will go down overnight. It seems really irrational, but that is EXACTLY what happened to us with buying our first home.
We bought it at the peak of the housing bubble in June 2007. Literally two weeks later, (two WEEKS, people!) the housing market crashed and we lost a third of the value of our home. I’m just kind of scared that the same thing will happen with our retirement.
And I know that’s kind of unfounded, but I can’t shake the fear. #justbeingreal
NEXT MONTH’S GOALS
– Um, well, big shocker. We will be saving for a lawn mower. Haha
-The second goal for us is to make a decision on our 401(K)s. Cash out? Rollover? Keep them in the account they are in? So my husband has his old 401(K) and I have a 403(b) and a decision will be made for both of them.
-And finally, we want to open our IRAs. Now that we are on Baby Step 4, we would love to max them out each year. But I don’t think that is a realistic goal. We will definitely get the ball rolling and get them started this month! And I know we can max out ONE of them each year, but probably not both.
What about you? How did you do on your finance goals last month? Were there are speed bumps that slowed you down, too? What are some things you hope to accomplish this month?
You can read our Monthly Financial Goals Update for May here.
You can read our Monthly Financial Goals Update for June here.
You can read our Monthly Financial Goals Update for July here.
You can read our Monthly Financial Goals Update for August here.
You can read our Monthly Financial Goals Update for September here.
You can read our Monthly Financial Goals Update for October here.
You can read our Monthly Financial Goals Update for November/December here.