Home > Goals

Working Through the “Off” Days

Written by on · 9 Comments

I’ve been dancing the tango consistently for about 2 months. I enjoy it. A couple of weeks ago, however, I felt a little “off” – my turns weren’t quite as compact, my follow not quite as responsive. I felt tired, discouraged.

So this week, instead of going to tango 4 times a week, I’ve cut back to only once. I gave myself (and my feet!) a break, went to my favorite class, and got back into the groove. Those “off” days were uncomfortable, but I didn’t let them deter me from working towards my longer term goal: to become really, really good at Argentine tango.

In personal finance, I’ve had “off” days, weeks, and months. But the important thing, I have learned am still learning, is not to let momentary obstacles become permanent roadblocks.

On the other hand, keeping up a certain level of intensity continually is unrealistic. So maybe you’re focused on saving for retirement, and try to put $500 in your 401K every month. Well one month you had a really bad time – you got a traffic ticket, or you went on a shopping spree, or you ate out at a swanky restaurant every week.

That doesn’t mean you should give up on your goal of saving in the 401K, but it also doesn’t mean you should eat cheese and crackers for the next three months to make it up. One, you probably can’t do it. Two, you will feel guilty that you can’t do it, or feel discouraged and throw in the towel on the whole goal.

This is what I’m learning during this stint with unemployment. Many times I do feel frustrated that I am not moving forward on my financial goals, or that I’m not progressing in my career as I had envisioned. I had really wanted to be able to max out my 401K this year (and you know, every year after that until I retire).

But sometimes, in order to continue working towards a goal in the long run, we have to be able to forgive ourselves for, and move on from, our transgressions in the short run.

Signed my lease and fear of flying

Written by on · 10 Comments

The apartment is mine!

Afterward, my future landlord and his wife showed me their tiny little herb garden and invited me to come and get cilantro, basil, thyme, or rosemary anytime I want.

It’s seriously time to learn to cook!

I can’t believe I lucked into an apartment with just about everything I wanted, and at such a great price. And with such nice landlords.

In other news, I am worried about being let go at my job. One of my friends just passed his sixth month on unemployment. But being out of a job may be the impetus for me to finally take action on my idea.

A lot of people around me (four, at last count, and all in their 20s) are pursuing their own businesses, even (or maybe because) of the dismal labor market and recession. Some have been laid off, but others are quitting decent-paying jobs to take a risk and make a go of it on their own.

Talking to them and hearing the excitement they bring to their work inspires me. The trick is to get enough inspiration and determination to get over the FEAR of flying out, on your own.

Goal #7 for 2009

Written by on · 5 Comments

In December I listed my six (mostly financial) goals for 2009, but then I realized, I forgot about Freedom Fund! So here’s one more goal:

7. Increase my Freedom Fund by $5,000, from the 2008 year-end balance of $27,000 to $32,000

So, overall, I am aiming to save $15,000 this year – $5,000 each to Roth IRA, 401(k), and Freedom Fund. If I remain gainfully emloyed through all of 2009, I will have the opportunity to save more. We shall see…

The $5K Freedom Fund goal will be iffy if I go on a vacation AND if I lose my job. Maybe I will try extra hard to cut back on eating out costs to compensate…

The write stuff

Written by on · 6 Comments

One more goal for 2009.

This is a personal one, for me. I want to write. And get paid for it (or.. not.. but preferably paid).

Writing – I guess it’s a holdover from writing commentary pieces for the high school newspaper. One of the reasons I write this blog is to exercise my writing muscles, however slightly and imperfectly. I don’t have aspirations to write The Next Great American Novel or to become the next Danielle Steel. But with hard work, a great topic, and lots of revisions, might I not become a fairly engaging and enjoyable writer? I want to try.

And mind you, I’m not making a career change here. But this is something I’d like to do, just for me. Of course, later on I shall have the chance to write, (and write plenty!) for graduate school essays…

But right now, I want to write for pleasure. I want to write the type of articles (and maybe, even, a book in the future?) that I enjoy reading – articles on lifestyle and personal finance and essay pieces on the relationship between women and well, anything.

So, my goal in 2009 is to get published. Somewhere, anywhere. It could be the 3-page local paper for all I care. I want to start getting clips. And send out queries. And learn how to pitch an idea.

This endeavor could be fun (or a complete and utter disaster… of which I can then write about!). I will keep you guys posted.

If any freelance writers out there have advice for a newbie like me, please do share your insights!

Business Insurance Experts Premierline Direct

Healthy, wealthy, and wise

Written by on · 10 Comments

I’m sloooowly chugging along on the “wealthy” path, and I suppose that wisdom comes with age. That leaves “healthy” – an area that I NEED to improve on, if only for the sake of my, well, health.

At the end of 2009, I’ll be 25. I’ve always coasted along on my relatively manageable weight and reasonable metabolism, but that’s not going to last forever. Besides, just because I LOOK healthy doesn’t mean that I am… a combination of a lackluster diet and minimal exercise is bound to catch up with me.

Like many Americans, I’ve always wanted to be healthier. Unfortunately, I’ve never put action to the words. I was inspired after reading Debt Hater’s post on investing in herself. I’ve invested in my financial future, but I want to be alive and kickin’ to enjoy it!

2009 = time for me to finally get off my duff and get in shape. It’s time to invest money, time, and effort in my health.

To that end, I’m making a set of “health goals” for 2009, and I’d appreciate it if you can all keep me IN CHECK! icon smile Healthy, wealthy, and wise

  • Take at least one dance class ($85 per 6-class session)
  • Go to the gym OR jog for 20 minutes ONCE a week (better to make realistic goals, I say)
  • Use the stairs instead of the elevator at home
  • Complete a organized 5K race by the end of 2009

Not super ambitious, as you can see, but I want to make some permanent lifestyle changes, and avoid drastic resolutions that I know I won’t keep.

Do you have health goals for 2009?

How I Celebrated the New Year

Written by on · 1 Comment

2009 is here! I spent last New Year’s at home with friends, but this time we thought we should go out and “enjoy our youth.” Most events around the area were charging $50-$200 for entrance, luckily, we found a bar that had minimal cover. So we headed out to town…

Dec 31, 2008:

  • 7 PM: Dinner with old friends: $15
  • 10 PM: Drink at the bar: $7
  • 11:59 PM: Countdown begins!

Jan 1, 2009:

  • 12 AM: Happy New Year’s kiss with CB!
  • 12:30 AM: French toast at Denny’s: $8
  • 1 PM: Brunch for CB & I: $30

Jan 2, 2009:

  • 1 AM: Deposit to Roth IRA for 2009: $500 <– new year = new contributions!

New Year’s is all about the big “R” – Resolutions. For 2009, I’ve mapped out some tentative financial/personal goals that I’d like to accomplish.

One goal (or resolution) that I didn’t put down was to “be more engaged”, with life, I suppose. Is that too vague? In 2008, many times I felt as if I was just going through the motions. Not a good feeling. This year, I hope things will be a little different in that regard.

How was your NYE celebration? Did you make New Year’s Resolutions?

image source: http://cwl.nsw.gov.au/

2009 Goals v1.0 (or this economy is making it hard to define goals!)

Written by on · 16 Comments

It’s that time of the year again, when pf bloggers set out SMART financial goals and then resolutely check them off one by one as the year goes by.

I have an idea of what I’d like to accomplish, but they all mostly depend on this economy of ours, which is to say that it’s fairly difficult to come up with good, solid goals when the future is so unpredictable.

But here, assuming all goes well (i.e. I stay healthy and gainfully employed at around my current salary), I have six (relatively?) simple goals for 2009:

1. Max out Roth IRA: $5,000 – this will mark the fourth year of maximum contribution. Going to do this in January/February.
2. Contribute to 401(k): $5,000 – 2009 limits have been raised to $16,500, but there’s pretty much no way I can max out my 401(k). If I can get to $5,000, I’ll be very happy.
3. Retake the GMAT – my first score was serviceable but not ideal. I want to do better. This means hitting the books harder and smarter than I did before.
4. Apply to 6-7 graduate schools – this will involve lots of school visits and applications. I am hoping that I can take all the application fees out of regular paychecks, and not my Freedom Fund.
5. Run a 5K race – I’m so out of shape that if there is an organized run that’s less than 5K, I’d do that one instead. Are there 1K runs?
6. Go on a trip with CB – This would be so fun if we can make it happen. I’d like to do a weeklong vacation.

As you can see, my saving / investing goals aren’t that ambitious next year. I feel a little hesitant stating that “I will save $20,000+” when everything is so up in the air. Goals #3, #4 , and #5 depend less on the job situation.

Someone I know was recently laid off. From a Big Four accounting firm. When the accountants start cutting, you know we are in trouble.

Is anyone else finding it difficult to define goals in such uncertain times?

Less than 3 months left: how am I doing on my 2008 goals?

Written by on · 6 Comments

I’ve set a couple of fairly ambitious goals for 2008, and now that there’s less than 3 months left, it’s time to see where I am.

Short- to Mid-Term

Goal: Save $21,000.

Status: In progress. So far I’ve contributed around ~$17,500 to my emergency fund (for a balance of ~$21,000)… BUT, some of this money is consolidated from old accounts, so money actually saved from 2008 income is probably a couple thousand lower.

If I can save $4,500 to put into the Freedom Fund by the end of the year, I’ll exercise discretion and say the goal is accomplished. icon wink Less than 3 months left: how am I doing on my 2008 goals?

Retirement

Goal: Max out the Roth IRA ($5,000 a year).

Status: Done! I maxed out the Roth in July, marking the third year that I’ve done so. It’s a good feeling to know that I’m putting something away for retirement, even though the value of my accounts right now is 20%-30% below my CONTRIBUTIONS. Must repeat to self: “long-term investment…”

Vacation

This was not a listed goal at the beginning of the year, but I went to Hawaii for the first time this year. The whole trip cost me around $800 thanks to cheap-ish air tickets and a generous friend, and it was money well spent. I really, really loved Hawaii, and I look forward to going back.

Looking forward to 2009

I haven’t really fleshed out my financial goals for next year yet. But, I am currently debating if I want to splurge for a couple of trips sometime before the end of this year and/or in 2009. Together, the two trips will cost me around $1,200. Not a small sum, especially in this (melting) economy. I just keep thinking, if something happens to my income (which I don’t think it will, but at-will employment = you never know), I’ll be so happy to have that $1.2K. But, on the other hand, I’ll be so happy to go on those trips! Oh, to have a crystal ball!

My little Freedom Fund is growing up

Written by on · 14 Comments

After several months of consistent saving, my little Freedom Fund has finally grown up.

Finally, I have $21,200 stashed away in the Freedom Fund, which will last me just about 12 months, assuming a monthly expenditure of $1,700 (my financial restructing plan).

I still have around $1,000+ lying in various accounts (I should really consolidate them), which will add another 1/2 month if need be. I can move back home. I also can withdraw up to $10,000+ in Roth IRA contributions as an absolutely last ditch method.

So, as I stare down the road at what is likely a prolonged and painful recession, I worry about a lot of things, such as job security and surging applications to graduate schools.

But I know that this too, shall pass (how long it’ll take to pass is anyone’s guess). In the meantime, then, I have adequate cash on hand (experts recommend 6 months of living expenses, though I imagine a job search can easily take longer than that in the current market) and I have a supportive network of loved ones. I am blessed, and I am grateful.

Knowing that I’m blessed, however, doesn’t mean I don’t worry! So even though I achieved my goal of saving 12 months of living expenses, extraordinary times call for extraordinary measures. I plan on continuing to grow the Freedom Fund, so that I am as prepared financially as I can be.

Given these trying times, how many months of living expenses do you aim to save?

Clothing, Accessories & Shoes Hiatus, once more with feeling

Written by on · 7 Comments

I’ll be on C.A.S.H. once more (with feeling!), until December 31, 2008. I’ve achieved 75% of my Freedom Fund goal (see sidebar!), so if I stay on track with $1,800 in savings a month, I’ll exceed my $23,500 goal. In fact, I’ll come pretty close to $25,000.

I was inspired by Single Ma, who has decided to renounce all shopping until the end of the year. This means no Black Friday sales, no Holiday sales, and no after-Christmas sales. I’ve decided to follow her example – I’ve gone for four months without shopping (Jan-April 2008), so I should be able to do it again.

So, my revised goal for year-end balance of Freedom Fund is $25,000. The best part is that I’m only counting on regular income savings, not bonuses. Any bonus, therefore, will be pure gravy. I may do an even split – 50% travel, 50% savings.

I’ve also made a budget for the last four months of the year (I have to admit – I’ve not been a very good budget planner for the past few months). My goal is to keep my total expenditure at $1,900 a month.

The breakdown is as follows:
Rent/ utilities / DSL: 790
Car insurance / repair: $190
Gas: $160
Food: $200
Coffee: $25
Prescription / co-pays: $85
Personal: $50
Entertainment: $100
Travel / vacation: $160
Education / classes: $50
Gifts: $50
Misc: $40
—————-
Total: $1,900

Hello, future

Written by on · 3 Comments

I just had the most amazing training session today, where I got a taste on how to work through a problem with different strategic frameworks and think about the issue from those perspectives.

The session taught me a lot, but more importantly it showed me what I want to learn more of.

I left the meeting feeling energized and excited about the area where I want to develop a career, I’m more certain than ever that I want to go business school, and I feel confident that I am at a good place for developing analytical skills at my current job, and that moving forward, I’ll be pursuing graduate education (next 3+ years) and doing more more strategic / marketing work down the road (post-MBA).

Feeling excited about a possible career? That’s wonderful.

Edit: If any of my readers are in marketing / brand management and would be willing to talk to me about your career path, please let me know. I’d really like to hear about your experiences.

So close, and other random thoughts

Written by on · 2 Comments

So close, and not so far away!
I am $500 away from maxing out Roth IRA for 2008. At which time, I’ll have maxed out my Roth IRA for THREE years in a row!

Goal adjustment
My original 2008 goal was to save $26,000. With the year half over, I have contributed $12,030 to Roth IRA and Freedom Fund in 2008. right now, I’m 46% of the way there. I think $26,000 is a wee bit of a stretch given several factors (Hawaii, test preparation – just the registration to take the test costs $250!, expanding my budget, etc.). I have decided if that I can save $25,000, I will be very happy.

For now, the goal is just to keep contributing $1,500/month to the Freedom Fund, and then max out the Roth IRA. Even if I manage to do all that, I’ll still be $2,720 short of my revised goal of $25,000. That money will – I hope – come from the year-end bonus.

It all comes down to fixed expenses
I haven’t been very good about keeping track of my expenses for the past two months, but the cogs in my personal finance machine is still turning. The most important thing, for me, I’ve come to realize again and again, is having low fixed expenses.

I cannot overemphasize how much easier and less stressful my life is because my rent, car insurance, utilities, internet combined is less than 20% of my gross. It’s beyond awesome. Of course, with the rising gas prices, every tank is taking out a bigger and bigger chunk of wallet (last fill-up at $4.59/gallon – seriously, I expect to see $5/gallon very shortly).

Gratitude
I know I am blessed. Have to remember that. 

Risk

Written by on · 4 Comments

In life, we risk. Sometimes those risks pay off, and sometimes they don’t.

CB is applying for a position in Oregon. Which is… not California. I admit, I had mixed feelings on this. Especially because our last go-around at an LDR were not our finest moments. On the one hand, it’d be a great opportunity, on the other hand, the distance.

I guess a part of me is also a little envious. It’s an extremely interesting-sounding job that I might have applied for in college, except for the pay. I wanted to find a job that would allow me to save some money from the get-go. It takes a lot to be brave and do something that may not necessarily pay much. I’ve determined that I’m not going to let money stop me from what I really want to do.

So I prayed. And I decided that if this job is really what he wants, and he gets it, then it’s meant for him. Oregon is not so far away. Apparently, intercontinental relationships happen all the time! (Not that I’d want that for every long). Risky, yes, but I think all the good things in life take at least a little risk.

I am going to be financially responsible and prudent, but I’m not going to let money (or fear of getting hurt) stop me from taking the risks that are worth taking. Fortunately for the personal finance blogger in me (and to the relief of Mom & Dad), what I think I might want to do will enable me to lead a comfortable, if not lavish, lifestyle.

C.A.S.H. still saves me cash

Written by on · 12 Comments

It’s now the middle of March, and I still haven’t bought any clothing, shoes, or accessories since the end of December 2007.

Which means I made it through after-Christmas sales, New Year’s Day sales, Holiday Clearance sales, and now am in the process of resisting Spring sales.

Which means, I really, really want to buy something!!

I stopped by Target this weekend and was instantly assailed by lovely print frocks and jersey dresses and cute ballet flats, all under $20.

Me walking out of the store with only cookies & cereal = willpower!

P.S. A big thank-you to everyone who commented and delurked. It’s awesome to know a little bit more about my readers. icon smile C.A.S.H. still saves me cash

P.P.S. The Save-O-Meters have been updated. It’s a slow & steady journey but I will get to the finish line.

Goals Update… and Taking a Language Class?

Written by on · 16 Comments

How am I doing on those darn goals?

Save $21,000 in money market fund: Generally on-target. Year-to-date contributions total $3,200 as of the end of February. I am currently 15.2% of the way to my goal, and the year is 17% over…

Max out Roth IRA ($5,000 a year): On-target! I have $1,100 for my 2008 contributions, which means that I’ve achieved 22% of my goal.

Do not make extra payments on student loan: Er… I might have paid an extra month because I didn’t know my automatic debit has kicked in. So instead of 10 years, I’ll pay this loan off in 9 years and 11 month. Oh well. It’s not big enough of a deal for me to go through the hassle of postponing automatic debit for a month.

Keep track of spending: I am so on top of this its a little scary. I have truly gone from 0 (never knowing exactly where my $$$ went) to 180 (recording expenditures down to the penny in PearBudget). And dare I say, it’s even kind of fun. More personal data to manipulate in spreadsheets!

In other news, I do plan to take some classes for personal edification. I want to take a language class at a local college… but I’m a little hesitant because the class runs 5 hours a week for ten weeks. And cost is almost $500 (but that’s very reasonable – less than $10 an hour of class). If I do take this class, I’ll have to significantly expand my education budget and cut down somewhere else.

I want to become proficient (as in, I can put the skill on my resume, write a brief, watch movies, and hold a conversation on politics/investing/popular culture) in 3 languages – English (still working on this one… kidding!), Chinese Mandarin (ni hao ma?), and Spanish (no comprendo mucho).

I’ve taken classes in Mandarin & Spanish, but language is truly a use-it-or-lose-it skill. Unfortunately, I’ve lost my language mojo and now I’ve got to woo it back.

January 08 report

Written by on · 8 Comments

I’ve been good about keeping track of my money.. so I’m feeling proud just ’cause of that.

Spendng $$$: I budgeted $1958.16 per month, but only spent $1,651.62 (fixed: $1,134.75, variable: $516.87, and irregular: $0). My unofficial goal is to keep my monthly spending lower than 1 paycheck’s net amount, which I have done this month. So I’m pretty happy about that. I can’t get careless, though, because I have alot of upcoming expenses (car, insurance, memberships, etc.). Cash flow will be lower in February.

Saving $$$: I saved*** a total of $1,000 ($500 Roth, $500 MMF). That’s only 4% of my annual goal of $26,000 in savings. Of course, I made that goal with bonuses/raises/gift money/tax refunds in mind, but it’s still a little disconcerting to find the year 1/12 OVER but I’ve only made 4/100 of my goal.

For February, I resolve to kick things up a notch! There’s the $500 Roth contribution, then $1,100 to MMF. This will bring me to $2,600, or 10% of my goal. Much better.

I’ve already made my appointment for my monthly massage.. but maybe I can postpone it to March. (It hurts to even type this). Your thoughts?

***I define “saved” as money that has been deposited into accounts OUTSIDE of my regular savings account or checking account. In this case, my saving vehicles are my retirement portfolio & money market fund. I still have money leftover from paying all the bills in the savings account, but that money is earmarked for very short-term expenses or to serve as cash cushion. So I don’t consider it saved money at all.

Oops.. I almost forgot

Written by on · 3 Comments

I said a couple months earlier that I’d like to end 2007 with a $10,000 net worth.

A quick calculation shows that although I’m close at $9,459, I didn’t quite get there. Also, my net worth will decline quite signficantly in the next couple weeks because I have to repay part of the signing bonus from my former job – I’m not super stressed because I have enough money for the repayment, but it’s a blow to the financials nonetheless.

As long as we’re on the topic of net worth, I’m putting this out there: at the end of 2008, I will have a $35,000 net worth. The goal is utterly achievable if I stick to the savings & investing goals that I outlined earlier.