2016 Financial Goals

2016FInancialGoals

Hello there!

First month of 2016 is almost done! Have you stuck to your resolutions? If not, you can always start again! I planned on making some goals (outside of Financial Goals) for the year, but still haven’t gotten around to writing them on paper. However, I do have our Financial Goals for this year ready to go!

First, lets reiterate the overall financial goal

Pay off $145,811.88 in debt in 3.5 years. One year down, two and a half to go!

Alright, now for the 2016 goals.

  • Pay off my federal loan ($22,115 @ a 6.75% interest rate) by the end of May. 
  • Pay off my Bank of the North Dakota loan ($20,601 @ a 2.01% interest rate) by the end of October.
  • Reduce the Parent Plus loan from $69,838 (@ a 6.75% interest rate) to under $60,000

Sidenote real quick. I typically have been paying off the loan with the lowest dollar amount first. That way, I can pay it off quicker and in return have more money to put towards the next debt. I made the executive decision to pay off the federal loan first though. It just makes the most sense because the amount is so close to the BND loan but the interest rate is much higher on the federal loan. If you remember, last year I applied for loan consolidation on the BND loans and received a variable rate of 1.74%. It has since gone up to 2.01%, not a big deal though since it will be paid off this year!

So, there ya have it. Those are the main goals. To hit those, we are going to have to put over $50,000 towards debt in 2016. Last year we were $250 shy of putting $40,000 towards debt. This year I am hoping to put ten grand more towards debt! Woofta…I feel like I have set some high goals for us. However, we have a pretty nice increase in income this year so I think we can do it!

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Juliet’s Balcony in Verona, Italy (Romeo and Juliet)

In order to reach those goals, we need to have some mini goals/guidelines to reach/follow. In 2015, we came up with the term Frugal Fifteen. We tried to not buy anything that wasn’t necessary. I stopped shopping. I didn’t get my hair and nails done. We stopped purchasing anything for Cory’s hobbies. We had a limited entertainment fund. Well this year we are in ITALY! This may be our only chance to live in Europe, so I am not going to let our silly debt ruin that. We just really need to be smart with our spending. Therefore, this year is S.M.A.R.T SixteenSpending Money Adventurously, Responsibly and Thiftily. Boom! We have a reason to spend money, but we have guidance on how to spend it 🙂

Here are our mini goals/guidelines

  • Sell household goods that we don’t use for extra money 
  • Research and find deals for our travels
  • Budget for trips
  • Allow for “wants” in the budget but be sure to stick to the budget
  • Track where our money goes each month and continually try to improve
  • Find other ways to earn extra cash

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The biggest issue we are going to run into is traveling. As long as we stick to the budget I think we will be ok. You will find out later how I am budgeting our trips. For now though, get ready to find out how much DEBT we paid off in January
. The month is almost over and I think it is going to end well!

Good night!

 

 

5 Comment

  1. Cassie says: Reply

    These are great goals! You’ve certainly inspired me to create some financial goals for myself for 2016 in writing. Sure, I have my financial goal of paying off $50k in 2016, but I have not written about what exactly this will mean for us, what it looks like, and what all the money is going toward. I’m definitely going to do this! Thanks for the inspiration! I’m loving your blog and I know that you can reach your goals this year – AND have fun living in Europe. 🙂

    Cassie | http://www.diyjahn.com

    1. Erica says: Reply

      I started the blog to inspire friends and family and of course to hold us accountable. Another goal I have this year is to get more involved with the blog and reach new audiences, so I am glad I could inspire you! You guys have seem to have got your blog off to great start really fast, so I may be coming your way for advice 🙂 Can’t wait to hear more of your goals!

  2. I love that you break down your big goals in to concrete smaller goals. I should do that, too.

    Please go to Bologna and try gelato in a hot brioche. Delicious!

    1. Erica says: Reply

      It definitely helps me! I am working on trying to make weekly and monthly goals not only for finances but life in general! Otherwise I find myself going over budget or procrastinating!

    2. Erica says: Reply

      I think we are going through Bologna next weekend actually! Gelato in a hot brioche…sounds delicious!

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