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Friday, July 25, 2014

My 2014 Target

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?

Comments

4 Responses to “My 2014 Target”
  1. deegee says:

    I never had any goals like that on my way to my early retirement. The closest thing I had to this was, “When my company stock is worth $X I can cash it out and retire.”

    Unless I was making a big financial move such as buying a car, buying my apartment, paying off my student loans early, or paying off my mortgage early, I always had a big savings rate. I was not going to avoid making any of those moves simply because I wanted to keep my savings rate artificially high. In the years outside those which had a big financial move, my savings rate was quite high, never lower than 20% and usually higher than 30%.

  2. Tara says:

    I’ve been saving 50% now for the past 6 years. Recently dropped it to 38% because of moving to a place with higher expenses. But I should still hit my target within 2-3 years.

  3. Gotim Himel says:

    I have a weekly goal.

    It is to still give this blog a chance despite every single blog post ending on a question, presumably because somewhere some other blog post suggested this would be a good idea to stimulate discussion.

    Listen – I like the idea of this blog. I used to be an engineer, and still admire the extreme frugality that engineers manage to pull off, and the disrespect you guys have for anything flashy. In another life I would have been a utility engineer like you.

    But could this blog not exist without every single blog post ending a question? Should engineers not reject such a fad? Is it not disrespectful to your readers? Why/Why not?

  4. Joel says:

    For me, I can’t do yearly goals like that as it is just to far away to be meaningful in a given month. My goal is on a monthly basis and is determined by cash left over after “musts.” As an accountant I’ve mapped out my wife and I’s expenses into fixed and variable categories and “musts” & “optional” categories. For me this just fits my logic brain the best.

    I view savings as a challenge of getting things out of the “musts” category and into the “optional” category. Then, once its there… not incurring it at all. Just like your recent blog post on car expenses!

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