So, maybe you have already sneaked a peak at our 2009 financial goals on the sidebar...but here's the official blog entry of our goals!
1) Save 15% of gross income for retirement.
We max out our Roths at $5000 each, in addition to 4% to my husbands TSP.
2) Save $2000 x 2 for college
We send in $166 for each daughter monthly.
3) Pay down HEL loan by $7000. Beginning balance $13,999.
This will require an average of $533/mo in extra principal payments. Regular payments are $118.01. Total per month $651.
4) Take a vacation with cash, location and amount to be determined.
Approximately $1500-$2000. May use tax refund towards this goal.
We will need to be the most disciplined with the last two. I plan to send in $266 on the 1st and $267 on the 15th of each month to the HE loan to get the $533 extra accomplished. Since we will most likely use tax refund money for vacation, we will need to pick our destination and spending according to the available cash!
The first two are already part of our financial goals from this past year...so those will simply be continued. How are your goals coming along?
2009 Financial Goals
December 27th, 2008 at 05:41 pm
December 27th, 2008 at 06:38 pm 1230403081
what is the rate on the HELOC?
Would it make more sense to pay more on HELOC, then contribute more to college plan once loan is paid off?
$800/mo goes further to reach both goals if college plan has moderate risk.
December 27th, 2008 at 08:57 pm 1230411427
College funding is only about $4K each for the girls, ages 11(almost 12) & 8. We don't plan to fund all of college and may have to cash flow some. We started a bit late in the savings for them. They are in a Large Cap Value fund with Vanguard.
December 28th, 2008 at 01:28 am 1230427720
December 28th, 2008 at 01:54 pm 1230472488
With ages of your kids, you have 6 years to see money grow, an you already plan to use cash flow for some expenses.
I would look to use cashflow for more than planned- get HELOC off books now (will the extra $166 pay off significantly sooner)?