The American Dollar
OUR FAMILY. OUR MONEY. ONE PERSONAL FINANCE BLOG.
One industrious American family's focus on a financial goal of freedom. Through worldly personal finance education, here is our story.
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Our Story: Both my wife and I are 27 years old and have gone through financial hell and back. Now we are on track to financial freedom, however we are not financial advisors or professionals, just everyday people. Share our journey from a negative networth and email us if you have questions or comments! :)



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Monday, January 02, 2006

Resolutions already!

I have been searching several PF blogs and have neglected to write extensively about what my concrete resolutions are. For 2006 here is what I plan to accomplish after finding what my wife and I can afford to do:

Goal #1: At the end of 2006, we will have a $50,000 mortgage principal amount. Paying off the home in 3 years means we need to chop a third of it off our debt plate. $2100 a month should suffice meaning approximately $1600+ towards principal.

Goal #2: Emergency fund totaling $10,000 liquid. Assets are to be in an interest bearing account that is easily accessible. Im thinking of putting it in Emigrant or ING Direct. So far we have $4,500 but with $100 a week, we can bump that up.

Goal #3: Max out our ROTH IRA for myself and my wife: $75 per week to both accounts should cover the amount that will max it out on the $4,000 limit. This will be done by automatic deduction on Saturday.

Goal #4: Make a couple home improvements purchases a)new countertops; these are fairly inexpensive since we are not going to purchase marble in a $140,000 home. Add new insulation to the attic, which desperately needs to be redone because the heat goes out the top in the winter and the AC goes out in the summer. Finally get new plumbing done in the bathroom, less than $1k job. This will be paid out of pocket.

Goal #5: Start a rainy day fund. This rainy day fund will provide for a myriad of purposes. I would like to have one because I know in the future I will be needing to purchase a new vehicle or for a second home down payment or just because we deserve a vacation once in a while. I plan to save as much as I can in this fund outside of the other goals but I will not neglect my basic needs either.

So there you have it. Goals for one year; 365 days and taking it one day at a time. Fellow PF bloggers, I will be posting some of my favorite blog sites soon. Thanks for the great suggestions and look forward to hear everyones financial accomplishments this year!

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Emergency Fund
40%
$25,000
2007 Roth Contributions
$8,000 Total



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