Just a quick note to wish you all a Happy New Year! As with last year, I don’t have any major, life-changing resolutions. But I do have some goals…
One thing that I still have left from over from last year is producing a “user manual” for our family finances in case anything bad happens to me. I still have that copy of “If Something Happens to Me” sitting on a bookshelf (or maybe in a box that has yet to be unpacked since our move?) collecting dust.
As I said last year, Iâ€™m not interested in making sure that my wife manages things in exactly the same anal (and sometimes archaic) fashion that I do. Rather, I just want to be sure she has a general roadmap of our finances so the transition would be as easy as possible. Iâ€™m envisioning a three-ring binder containing everything that she needs â€” account numbers, insurance policy numbers, contact information, usernames, passwords, etc.
In terms of financial goals, I’d like to:
(1) Max out our Roth IRAs for 2007 by the end of April (we just knocked out our 2006 this past December).
(2) Continue maxing out my defined contribution plan at work (5% contribution + 8.2% match).
(3) Save a minimum of $6000 in my optional 403(b).
(4) Max out the ’employer’ contribution to my SEP-IRA (25% of net self-employment income; see below).
Truth be told, I’d really like to max out the 403(b) at $15, 500 so let’s call that a stretch goal.
Aside from the above, we plan to continue developing our side income potential. The majority of this comes from our online endeavors, with a bit more coming from consulting-type gigs. A quick look at the numbers reveals that our average monthly income from our websites increased nearly 15-fold in 2006 vs. 2005. While I don’t really have a good feel for when/where things will level off, I’d like to do whatever we can to maintain an upward trajectory in our earnings going forward.
Of course, there are limits to everything, and one of the biggest limits that I see in this arena is time. I have plenty of ideas, but I just don’t have the time to implement all (or even most!) of them. It’s hard enough to maintain a full-time (and then some) job and raise four kids without even thinking about dabbling in other things.
In terms of hard numbers, my goal for 2007 is for our side income to equal 40% of my day job’s salary (without getting into too many details, my ‘regular’ salary is solidly into six figures since I started my new job earlier this year). Assuming that things hold more or less steady, that shouldn’t be a problem. If, on the other hand, things continue to grow, we could end up shattering this goal.
What about you? Do you have any goals in mind for the New Year?