Posted by Tim Stobbs on January 20, 2014
That’s it…I’m flushing any goals for my retirement plan for this year. Not one single goal…instead I’m planning a rough target of contributing $50,000 to our various investments. Why only a rough amount? Because I already have a longer term target of hitting $350,000 by Jan 1, 2016. So if I increase my investment net worth by about $50,000 in 2014, I should be well on my way to my longer term target (which again is completely picked out of thin air).
You see I’ve hit the point in my savings routine where I no longer have to try all that hard to do it. I’m just used to saving a lot of money and not spending a whole lot. Also I’m not particularly interested in trying to save more. I’m happy with our current savings rate and I rather focus my energies on other projects.
Although I have to admit that my overly analytical brain really likes having targets of some kind to gauge my progress…hence a rough target for the year. I’m giving a little ground here to prevent part of my personality from having a crying fit over having no numbers to look at.
Would I recommend this idea for most people? Certainty not. It’s that making me a wee bit of a hypocrite? Yes, I can see that point of view, but you have to recall I’ve been at this saving for retirement aggressively for over seven years now. For me saving is so ingrained into me now that spending my full salary in a given year is nearly incomprehensible.
When you are starting out I would map the goals right down to a given month. You need that goals that detailed because it is very easy to fall off the wagon. So having a monthly goal and then meeting it gives you a little rush which is helpful to keep you motivated. At month number 85, it ceases to be helpful, now it is merely a habit.
Do you bother with yearly goals? Or do you prefer monthly? Why?