Example; if you want to buy a house within the next 5 years, you probably want to start a home savings account now rather than later. Just like if you are wanting or needing a newer car in the future, try to save an impressive deposit for the car, so you're not spending the first 2-3 years of your loan paying interest.
Below are our financial goals for 2013:
1/ Pay off all Credit Card and Personal Loan Debt: Over the last few years whether it be due to circumstances or just plain want of an item we have accumulated credit card and personal loan debt. We are not proud of this. I've organized our debt to be cleared within the next 6 months at the very most, following the Snowball Debt Effect. Roughly this debt amounts to $4,300.
2/ Start a Savings Plan: We don't particularly have a 'savings' account at current, as we are largely focusing on eliminating our current debt. However, this is something that I hate thinking about not having, and as soon as we have made a good dent on our current debt we will be aiming to have at least 1 months wages saved, or ideally $3500 or more by December.
3/ Start a Wedding Budget: I don't want to get all the way out of debt, just to get back into it for our wedding. So it's important for us to know what we can afford and what we can't. For me, photography is important and I would without a doubt spend more on photos then I would for my wedding dress. Now that is just my own choice. Finding out what you can afford to pay rather then what you'd love to pay is critical, so before booking venues and caterers, start a wedding budget!
4/ No more negative expense! Negative debt relates to purchases where you are unlikely to see a return of income (for that amount or more.) For example we need a clothes dryer, but if we purchased one using credit cards then not only would we be paying interest on the dryer but also we would never be able to sell the dryer for the purchase amount.
It's inevitable that something unplanned will occur in relation to your finances so to help make the impact of those unplanned events less damaging I can't stress enough to start a savings plan!
Well there you have it! That's our financial goals for 2013 :) Feel free to leave a comment below and let me know if you'd like more finance related posts.
Until next time,