I have been asked how I'm going to achieve my 5 year goal of $250k net worth. Well, the first step is going to be accomplishing my 2008 goals.
Here's the format I'll use for this post:
Goal:
How I'll do it.
And on to the goals...
All Goals:
Move back in with my parents, and use the assistance my mother can give as a CPA, savings $375/month after cost of storage unit.
Get a new or second job (application & interview in for 1 that results in a roughly 70% pay raise, I should know by end of week). If I get the job, I will go from 40 weeks @ 35 hours/week @ 10.80/hour to 52 weeks @ 40 hours/week @ $13.75 per week (scheduled employment, not counting overtime and possible "differentials.")
Eliminate Credit Card Debt ($9352):
This total includes 2 Credit Cards and 1 Overdraft Protection Loan. The balances are $7632 at 24.24%, $966 at 21.98% and $753 at 17.9% respectively. To accomplish this goal, I will take the extra $375 a month and apply it towards the lowest balances first. This will allow me to feel a greater sense of accomplishment, as I pay off the balances (including regular payments, about 5 months until the lowest two are paid off). This is the MOST important goal for this year.
Eliminate Other Debt ($1043):
This debt is at the auto repair shop my uncles own. It has a 0% rate, but I need to set an example for my cousins, some of whom have far more that they owe. While an initial payment of $10 per month will not achieve this goal alone, I'm banking this year's goals on increasing my base income and will plan on about $100 per month immediately upon getting the job I'm waiting on.
Increase Cash ($1000 after required expenses):
This may not be possible, though I've got $35 in a Money Market Savings account, with an anticipated $130, minimum, going in through direct deposit from my pay check. This will bring my cash to $265, 25% of goal. I will take part of my new/second paycheck and contribute it towards this goal, perhaps $75 per month.
Increase Retirement ($3768 total):
This IS possible. It is a low-ball estimate, based on current wage and schedule. I don't have to do anything, except work, to achieve this goal, as I currently contribute 4% while my employer contributes 10%, for a total of 14% of my gross PRE-TAX income.
Increase Stock Investments ($400 total):
This is possible, as I will have $130 going into a fund that will be used for the stock purchases through ShareBuilder, now an ING company. Membership is free, you can invest as much or as little as you want, with real time trades at $9.95 commision and automatic investments at $4.00 commission (with free account, cheaper if you go for a monthly plan). I currently have just under $88 in the investing fund, and will have an automatic investment go out Wednesday for $87 before commission, so $83 in stock will be purchased.
Purchase US Savings Bonds ($200):
I'm actually undecided on this one. I will purchase series EE bonds through the bank at half price, but I'm uncertain how much. I am leaning towards purchasing $400 worth (thus spending $200), but since I didn't say whether this goal is for total value or for amount invested, I could just as easily invest $100 for $200 worth. The obvious choice is $400 worth, since I can then say that I have a $200 asset upon purchase. Either way, the true value will increase over the next 30 years.
Based on my current income, some might say my goals are unachievable, but succeeding at the second part of "All Goals" is what will make it possible.
By Friday, I will post how I'll achieve my long-term goals.
