What Short Term $$$ Goals Have You Achieved?

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OnFire
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What Short Term $$$ Goals Have You Achieved?

Post by OnFire » Mon Jun 10, 2013 11:54 am

To me, a short term goal is about one year. I just bought a new house, and in order to do it, I had to come up with about $70K. I also fixed up and rented out my old house, which cost me another $5K. (Yes, I am now a landlord.) Since I didn't have that much, I had to borrow some of it. I just finished paying back ALL of my short term loans. Almost $20K to my credit cards, $10K to my mother-in-law, and $5K to the credit union. (Some of it was tied up in I-bonds, I paid back as soon as the one year waiting period was up.)

I'm feeling pretty proud with my accomplishment and am recently OBSESSED with getting myself a track car to go racing. Stupid, I know. It would be about $5-7K and cost me $2-3 a year in track fees, insurance, and maintenance.

The problem of course, is that I only put $4K into my Roth last year, none in my wife's, I have only put $2K into the Roth's this year, I still need to "payback" my emergency fund $10K, and I leased my current car, which I planned to buy in two years for $20K (zero savings for that), my wife's car is 8 years old and we have zero saved for its replacement.

Basically, I need some positive encouragement to put off the (relatively) selfish personal toy and get back to accomplishing my short term financial goals. (And putting it in writing in public is certainly sobering.)

This is supposed to be a encouraging, positive thread!

WHAT SHORT TERM FINANCIAL GOAL HAVE YOU ACCOMPLISHED? What did you put off to do it?
Where are all the customers yachts? | | “The most powerful force in the Universe is compound interest.” -Albert Einstein

Grt2bOutdoors
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Re: What Short Term $$$ Goals Have You Achieved?

Post by Grt2bOutdoors » Mon Jun 10, 2013 12:03 pm

None - because all are Long Term in nature. However, each year is 1/x th of it, so one could say that my s/t goals have been accomplished.
What have I sacrificed? Hmm, no real extracurricular expenses, no first class flying anywhere, no real vacation.

Now, you have $10K you want to splurge on a track car, but you are willing to leave your E-fund underfunded, your wifes Roth is unfunded and your's is not completely funded. :shock: Forget about that depreciating asset and fund your e-fund, no vendor is going to accept a track car as payment. Not one!
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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OnFire
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Re: What Short Term $$$ Goals Have You Achieved?

Post by OnFire » Mon Jun 10, 2013 5:56 pm

I agree buying a track car is dumb. That's why I said in my post that it was stupid.

What I was trying to do was have Bogleheads brag a little. "I paid off my car." "I hit six figures in my retirement accounts." Etc. etc. Nothing encourages positive behavior like praise for positive behavior.

Apparently that's small potatoes or no one is interested.
Where are all the customers yachts? | | “The most powerful force in the Universe is compound interest.” -Albert Einstein

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SkolVikes7
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Re: What Short Term $$$ Goals Have You Achieved?

Post by SkolVikes7 » Mon Jun 10, 2013 6:16 pm

You are officially encouraged to read this book: http://www.amazon.com/Total-Money-Makeo ... y+makeover

Once you get to step 4, stop reading and donate that book, then read this book: http://www.amazon.com/Bogleheads-Guide- ... +investing

core5
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Re: What Short Term $$$ Goals Have You Achieved?

Post by core5 » Thu Jun 13, 2013 7:53 am

I'm a big car enthusiast, so I can appreciate the appeal of a dedicated track car, especially if you live near a track. However, it sounds like you want to buy a luxury item before a compulsory item (retirement/future vehicles). You should get your emergency fund back up to a normal balance, because you never know when an emergency might occur. You could total your leased car the day after you buy your track car, then where would you be?

You didn't detail your retirement savings, so I'll leave that alone, but it's always better to save more than less for retirement. There is something to be said for spending money in your youth rather than when you're old. I think a track car might fall into this category. You will likely get more out of it now than when you're 70. But, remember it's still a luxury and you don't need it.

fareastwarriors
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Re: What Short Term $$$ Goals Have You Achieved?

Post by fareastwarriors » Thu Jun 13, 2013 4:12 pm

Within the past 12 months, I bought a triplex, paid off all other debt besides the mortgage, and hit the 100k mark on my investments. Age=25.

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mickeyd
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Re: What Short Term $$$ Goals Have You Achieved?

Post by mickeyd » Thu Jun 13, 2013 6:04 pm

WHAT SHORT TERM FINANCIAL GOAL HAVE YOU ACCOMPLISHED? What did you put off to do it?
Charge all purchases on a cash-back CC and pay off the balance each and every month. Never break this code.

Is that short-term enough?
Part-Owner of Texas | | “The CMH-the Cost Matters Hypothesis -is all that is needed to explain why indexing must and will work… Yes, it is that simple.” John C. Bogle

fulltilt
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Re: What Short Term $$$ Goals Have You Achieved?

Post by fulltilt » Thu Jun 13, 2013 8:03 pm

We paid off my wife's student loans. They were about $26k. It look us less than 2 years, but we had to take a pretty big chunk out of our emergency fund to do it. We are working on building our emergency fund back up right now.

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AustenNut
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Re: What Short Term $$$ Goals Have You Achieved?

Post by AustenNut » Fri Jun 14, 2013 12:10 pm

I looked back at one of my first posts here at Bogleheads. In the last 18 months we have:

1) Paid off a $5500 car loan
2) Paid off $8k in student loans
3) Paid cash for two Master's degrees (Mr. & Mrs. AustenNut)
4) Increased e-fund by 3 months

Mudpuppy
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Re: What Short Term $$$ Goals Have You Achieved?

Post by Mudpuppy » Sat Jun 15, 2013 7:45 pm

By the end of the year, barring any unforeseen large expenses, I'll climb out of the red commas and into the 1-comma club. I'll still be horribly underwater on my home due to buying in 2007, but the rest of my assets will finally cancel out the 2-red-commas 6-red-figures in the house line of the net-worth spreadsheet.

Edit to fix "underwaterness".
Last edited by Mudpuppy on Mon Jun 17, 2013 12:22 am, edited 1 time in total.

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Tortoise
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Re: What Short Term $$$ Goals Have You Achieved?

Post by Tortoise » Sat Jun 15, 2013 11:07 pm

I thought last year that my wife and I agreed that she would keep driving her 1996 Corolla for a couple more years before buying a new hybrid: either a regular or a plug-in Prius. I wanted to see how the plug-ins did in real-world use for at least a year before plunking down the extra money for one. She informed me last November that the Corolla was falling apart and she told me she wanted a new car before that, but I hadn't been listening. Within a few days, I had transferred enough money from the emergency fund and cash in other accounts to fully pay for the new regular Prius.

Short term goal? Wife was happy. :D

Within another couple months after that purchase, we had completely replaced the money used for the new car purchase. It didn't hurt that we each got a nice year-end bonus, stock dividends in our taxable account were taken as cash, and the total stock market gained quite a bit, as well. Within another few months, we had saved enough extra cash to purchase our annual allotment of i-bonds without impacting any other accounts.

Short term goal? I was happy. 8-)
"Always do right. This will gratify some people, and astonish the rest." --Mark Twain

loco00
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Re: What Short Term $$$ Goals Have You Achieved?

Post by loco00 » Sun Jun 16, 2013 4:13 am

I think I've done pretty well.

I've deployed in January of this year to Afghanistan and been making dents with every paycheck. Paycheck comes in twice a month and it goes straight to my student loan lenders ($160K, ouch).

1) Paid off $80K in student loans. One lender is paid, Federal Govt and one private lender left. Balance down to $80K.
2) Paid off outstanding credit card debts $8K, still owe $8K in interest free balance transfer offer credit card debt, which 0% APR runs out in December. Will pay off this around November.
3) Put in $5k towards 2012 Roth IRA. Will be putting in $5K towards 2013 TIRA sometime this year.

I haven't been THAT great this year. I put down a deposit to Antarctica cruise for next year and spending some money to send my parents on a long vacation...

At this rate, I should be debt free by end of the year (might hold onto 2% interest student loans) or I'll start saving towards my downpayment for a house (goal is $120k). Sigh, seems like a long road...

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Kosmo
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Re: What Short Term $$$ Goals Have You Achieved?

Post by Kosmo » Sun Jun 16, 2013 4:00 pm

Mudpuppy wrote:By the end of the year, barring any unforeseen large expenses, I'll climb out of the red commas and into the 1-comma club. I'll still be horribly underwater on my home due to buying in 2007, but the rest of my assets will finally cancel out the 2-red-commas in the house line of the net-worth spreadsheet.
You're underwater on the house by over $1,000,000?

Mudpuppy
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Re: What Short Term $$$ Goals Have You Achieved?

Post by Mudpuppy » Mon Jun 17, 2013 12:20 am

Kosmo wrote:
Mudpuppy wrote:By the end of the year, barring any unforeseen large expenses, I'll climb out of the red commas and into the 1-comma club. I'll still be horribly underwater on my home due to buying in 2007, but the rest of my assets will finally cancel out the 2-red-commas in the house line of the net-worth spreadsheet.
You're underwater on the house by over $1,000,000?
No, that was a mistake on my part. Meant the 6-figure club, but was so comma-happy that the typo persisted. Edited and corrected.

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