I've crunched some numbers and came up with a game plan for 2011. I want to share part of it here with you. these will likely be our financial goals for the upcoming year. Things I have left out are our regular monthly expenses that include rent, groceries, cable, phone, internet, auto fuel & oil.
This is a wroking list, so if you think I've left something out other than what I've already mentioned above, please leave a comment for me. thanks.
2011 Financial Gameplan:
1. Put $6600 into EEE account. This would be about 3 months worth of expenses.
2. Deposit $3600 in my RRSP.
3. Have $1000 in chequing account as a buffer. This should eliminate bank fees.
4. Deposit $1200 into RESP.
5. Summer and winter vacation; $4000 total needed.
6. Christmas Account, $1500 to be saved.
7. Debt 1: $6900 to be paid off in full.
8. Debt 2: $5330 to be paid in full.
9. Debt 3: $4700 to be paid in full.
10. Debt 4: $3500 to be paid in full.
11. Auto repair account: $1200 to be saved.
12. Auto insurances: $4100 to be saved (2 vehicles).
13. Business Insurance: $900 to be saved.
14. Charitable giving: $250 given for the year.
15. 2010 Income Tax owing: $4500 (approximate)
There are other debts that we will still be dealing with but will not be able to pay off during 2011, so I've not included them. We will however, continue to make payments on them throughout the year.
What have I learned this year?
That with careful planning, we can have the life that we want, as long as we are prepared to give up other things for it. I've learned that having money set aside for lean months is crucial to our financial situation. It's similar to using credit, without the interest rates, and it's our own money!
I've learned that teaching our kids the basics of sound financial planning is important. They won't get that kind of an education from anyone else at this point in their lives. I want them to know this BEFORE they ever get into credit card debt.
I've learned that we could be doing more to beat down our debt monster.
I've learned that when stuff happens, we can go with the flow, as our savings keep me from worrying too much. I know we can weather the storm.
I've learned the importance of having illness & disability insurance on myself. Being self-employed, having this insurance gives me peace of mind that things will be okay if I ever got injured or sick.
Ok readers, give me your thoughts. Am I missing anything crucial in our gameplan? I know planning to payoff $20,430 of debt may seem like a lofty goal, but I know we can (and will) do it. Even with putting aside $12,400 into various savings pots and $11,700 into planned spending, and giving away $250 to charity. Add those numbers together, and we have a working total of $44,780. With a combined gross income of approximately $70,000, this should all be doable. I think.
I hope, therefore, I plan.