Personal Finance

It’s all coming together…

After quite a bit of thought and a little discuss with the hubby, I have a few goals in mind to help us improve our financial future. Here are some of our thoughts:

  1. Max out my husband’s 401K. Although it isn’t matched, we figure this a good place to start investing in our future. It also should help us out come tax time. From what we can tell, we are currently at about $9K each year. Our goal is to gradually increase his contribution so that we get to the $18K.
  2. Reduce monthly spending. In order for us to do step #1, we will have to reduce spending to make up for the difference. According to breakdowns calculated here (thanks Livefrugalee), we would need to decrease our monthly expenses by $750! That’s a lot!
  3. Pay mortgage off early. I can’t ignore how much we would save in interest by cutting our 20 year mortgage in half – about $50K! Sure, I could invest the extra funds used to pay off the mortgage, but being completely debt free is a feeling I would like to experience!
  4. Declutter our house. Since we are staying put for the next 20 years or so, I have to find a way to love my home! I am going to make myself love this house again! The rest of the family seems to love it. I just need to get on board. So, by reorganizing and decluttering, I am going to feel like I have a brand new house! Lets see if it works. (Thank you, Mintly for the idea!)
  5. Have a net-worth of $1 Million. Everyone else is doing it, so why not us! 🙂

I am not really sure how I am going to do all of this or the time frame for accomplishing these goals, but this is where we will start! What do you think?

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4 thoughts on “It’s all coming together…

  1. Sounds good, seems like you have a clear sense of the direction your finances will be headed to. I am also doing the get to 1 mil net worth. Something is attractive about being called a Millionaire, though i bet at that point one would still want to gain more.

    I agree on the idea to pay off the house early, you and your husband should invest an hour a day if you’re able to and look into starting some type of side income, online. I am still in the process of getting one but if you’re able to get one, it would be a huge benefactor in terms of aggressively paying off your mortgage / saving up, etc.

    Liked by 1 person

  2. Love your goals. I’m really similar with wanting to pay off our mortgage faster and to have a net worth (ex. our owner occupied home) of $1m. It is a bit daunting when you work backwards and see how much you need to save. But also highly motivating. Look forward to hearing about your journey.

    Liked by 1 person

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