Setting yourself up with solid financial goals is an extremely important task. It’s an excellent way to measure progress, as well as give you something to work on and constantly strive for.
Ideally, I think you should have both financial and personal goals that you are tracking to.
Every quarter I’ll be reviewing how I’m doing against the goals I set for myself in 2018.
While originally thinking I would include this as part of my Net Worth Updates, these reports have been getting fairly long without adding another section to them.
This way I can also go a little further in depth about what I’ve done and am doing to accomplish these goals.
How in the world are there only 3 months left in 2018!? Let’s see if any of those goals have gotten better since last time:
Max out my 401k/HSA
Right now I’m on track to max out both!
It’s just automatic at this point where they both are deducted straight from my paycheck and I don’t even see it. I prefer it that way!
With my financial situation this may have been an easier goal to hit, but I’ve never actually done it before which is why I thought it was important goal to have.
Status: On Track
Max out Roth IRA OR purchase a property
Roth IRA was maxed out in March!
Despite what I mentioned in my last report, it’s looking less and less likely that I will end up purchasing a rental property this year. I’m still weighing options but think I would like to have a little bit more saved up so I have more options.
Next year is much more likely and by then I’m hoping I’ll have worked up the courage to go through with it!
Savings Rate of 50% (stretch 55%)*
Through 9 months my savings rate is sitting in the low 50% range so I’m currently on target! The stretch goal is still on the table!
I’ve been lucky so far to avoid any major unplanned expenses (despite the higher than anticipated medical expenses).
Now hitting my budget on the other hand is going to be the tough part. I’ll need to spend much less than my recent months if I want to hit that!
*Note that these increased from 45% and 50% respectively due to a much bigger than projected promotion this year… didn’t want to ease off the gas pedal!
Status: On Track
Reach $115K Net Worth
Starting the year off around an $83K Net Worth, this seemed like a huge increase, but one I could do with at least an average return from the market.
I ended last month at $114K Net Worth… *SPOILER ALERT* as you may see next week I have officially reached my goal 3 months early!
My larger than expected promotion and working overtime for a few months over the summer at my main job really boosted this, as well as some help from the market.
This will be the last year I set a Net Worth goal. I’ve realized that it’s kind of pointless seeing as I could have a great year in terms of Savings Rate, yet still not hit this goal due to the market which is out of my control.
I think focusing on Savings Rate is much more important and 100% in my control.
Create a third source of income
Outside of my main job and the dividends from my investments, I wanted to create a third source of income. Ideally this would be a form of passive income which can help to supplement my main job’s earnings.
As I announced last week, I’ve officially started a side hustle as an electric scooter charger!
While it may not be passive income, at least it is a little something on the side. I’m hoping this little extra money on the side will inspire me to follow through with some of the other ideas I’ve had!
Workout more consistently
While I did alright on this for the first half of the year, it hasn’t been so great the last quarter.
I can’t even remember the last time I’ve went to the gym and running has been on the back burner. I have been doing body weight exercises every so often but it’s anything but consistent.
The summer months were tough with all the travel I was doing on the weekends. Add to that an extremely hectic work schedule which saw me working late most nights and it was not a great recipe.
Luckily, the consistent overtime days are done at my work so I’m hoping that helps to put me back on a regular schedule.
This is a priority the last quarter, as I know I need to get more exercise in and take better care of myself.
Status: Needs Work
Read more books (at least one per month)
Status: I just finished my 5th book so far this year… Not much better progress than last update.
7 books in 3 months? Can it be done!?
I’m optimistic it’ll happen. I have a few more personal finance books on the docket, which aren’t too long. I’ll also likely mix in a fiction book or two, which I’ve found I read a lot faster.
I have a feeling this one will come down to the wire!
Status: Needs Work (It’s crunch time!)
Meditate, Yoga or stretch every day
I’ve actually been doing fairly well with this goal.
Since I’ve started my side hustle, my schedule has been slightly re-arranged (since I go to grab electric scooters during the period when I usually would stretch). However, it simply makes up for it in the morning.
Now when I wake up, I need to actually wake up and get moving to get paid. I can’t just lay in bed hitting the snooze all morning!
Because I’m up earlier, this gives me more time to stretch, while also just taking the time to reflect on the upcoming day and focus on my breathing.
If that’s not meditation I don’t know what is!
Status: On Track
Volunteer somewhere at least once a quarter
If we’re being totally honest, I completely forgot about this goal this quarter… FAIL.
It’s an excuse, but with how busy things were this quarter it totally slipped my mind to look for volunteer opportunities.
I’ll now look for at least two volunteering events in the last quarter to make up for the miss.
Status: Needs Work
For the most part, I feel like my stress levels have remained at the same baseline level throughout the year.
Of course from time to time there will be periods of more stress, and periods of less stress. The goal is to always move that baseline down, but I’m finding that’s just a really tough thing to do.
For the most part my stresses are of the first world kind: job, societal expectations, comparing myself to others (I know this is a bad one!), and internal pressure I put on myself.
Tackling these are of utmost importance for truly lowering that baseline stress level.
I don’t think I’ll ever be stress free, that’s just the type of person I am, but removing as much of the unneeded stress is going to be a key for maintaining my well being.
Status: In Progress
Through three quarters of the year I’m crushing my financial goals. Maybe I made them too easy as it was my first time goal setting? Next year I’ll have to give myself more of a challenge and maybe put in some “reach” goals that may not happen.
The Personal goals need a little bit more work. I truly believe in the importance of prioritizing personal development.
This last quarter I was focusing on my career, which really helped the financial side of things, at the expense of some of the important personal goals I have.
The goal going forwards is to return that to a balanced level and spend more time on personal development!
This will always be a work in progress so long as I have a career, but I’m up for the challenge 🙂
If interested here are my first two updates on the year so you can take a look at the progress (or lack of) that I’ve made:
How are your goals going through the first three quarters of the year?