My 5 Year Financial Plans
Goal #1 - Pay off my car
Right now my car is my only debt, absolutely the only money I owe. I owe nothing on credit cards, loans, friends, nothing. I pay $323/month for my car payment and though it’s hard to pay extra, I should have my car paid off by 2010. However I intend to try and get it paid off by 2009.
Once the mustang is paid off, that $323/month will be going into my Roth IRA.
Goal #2 - Pay off my fathers debts
My father has a hefty hospital bill, a loan, and pays $400/month for health insurance. My goal is to have the hospital bill paid off by June 2007 by putting $120/month away, and my sweetheart putting $100/month away until June of next year. This will be my fathers day present.
Incidentally, my friend Bonnie just donated $50 towards my dads fund, which I will be putting away into savings to gathering interest and add it to the amount to be paid to my fathers hospital bill in June. I may start promoting my father fund again after Christmas to see if we can’t knock out some of his other debts as well.
In addition to this, I hope to have all of my fathers debt paid off by 2010, so that I can help him start a small savings for himself, even though he has no retirement and no savings at 57 years old. In the mean time I will help him learn financial responsibility (and computers).
Goal #3 - Complete my Emergency Fund
I think everyone should have 6 months of expenses saved in the bank for emergencies. For most people that rounds out to about $5,000. I will probably have this saved up sometime in 2008, but I already have a decent head start.
Goal #4 - Start saving for a car
Despite wanting to pay off my mustang, I am going to be adding additional money to my Emergency Fund mentioned above so that I can buy a car with cash. Whether it is for me, my sweetheart, or my father, I do not intend to ever take out a loan for a car again. My mustang will last me until I am ready for another car, and by then I will have enough money saved up to buy a pre-owned later model vehicle. Paying in cash will also ensure that I get a better deal.
And how much I’d love to buy my father a new pre-owned Prius. One day.
Goal #5 - Get Married Cheap
I’ve been recording ideas for when I get married again for a while now. Just small things I think of here and there so I have them. I’ve never had a wedding before, but I’m looking forward to having a frugal eco-friendly wedding. I’ve made it a challenge to see how good of a wedding I can have for the smallest price possible.
Goal #6 - Buy land and start a house
My goal is to buy my landlords 500 acre farm. I am planning on going in with 3 other people for this, technically 4 if you count my father. I want to give him the old farmhouse, build myself a small little stone cottage in the woods, and then the other two people will build their own little house somewhere else on the property.
My goal is to finance this through my dads friend that buys properties for a living. I think I can get a good deal with a low interest rate (especially given the current mortgage problems in the U.S.), and then start building my roots there. This goal won’t be complete in 5 years, but I’d at least like to have it started.
My sweetheart has a house he will be selling, the two other people interested in this idea will have their own method of investing, and my sweetheart and I will have no debts to interfere.
Goal #7 - Live off of one income
This is my ultimate goal, and it may or may not happen in 5 years (though I’m leaning towards yes). I intend to live frugally on just my sweethearts income, while mine is put away into savings. If at all possible, I’d like for my father to live under this one income as well, but I imagine he will be using some of his disability. But I can still work with him on creating a savings for himself so he feels less dependent on me.
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One Response to “My 5 Year Financial Plans”
August 22nd, 2008 at 12:20 pm
[…] bought a house to start rethinking future plans, the first being my new 5 year plan. I had already set up a 5 year plan in January, but obviously things have slightly […]