Let me tell you the truth that this is the first time that I have really sat down ever and written down my goals for a year. I am sure this year will be a great year and the reason is that I sincerely believe that anything that you do with focus and effort will always pay off. Well that is what monks do. And the same hold true for finances .
So launching straight into finances.
Mutual funds and ETF’s
Currently I have automatic investments happening every month for select mutual funds and ETF’s to the tune of 16% of monthly income. My goal is to increase that to 20% of my salary. I know 4% may not sound that huge however if you think of that in addition to what other things I need to do in 2013 then it is Ok from my stand point.
Now this is a tricky one. I always thought that mortgage is OK to be paid in 30 years and should never bother me. However after I started reading about how interest rates on the mortgage are calculated and how much ore I will pay on a mortgage in those 30 years , I am all for putting some extra money every year towards mortgage.
So, I have a mortgage of about $58,600. The aim will be put in $5000 towards this.
In year 2012 we never planned a trip properly and always ended up paying much more than required towards air tickets and hotels. The goal for this year is to go to New York city this year with costs and everything being within the $1000 range. I am starting to look at deals right now and will take a trip once we know we have got the best deals .
This is a big one for me. Currently I have four months of salary as my emergency fund. I want to increase that to five months by the end of this year. How I acheieve it is something that I will have to figure out. May be will have to take up some extra work somewhere to just get that one month salary.
Have a budget
I never prerpared a budget for my household , so this is also one of my financial goals to have a budget and then stick to it on a month to month basis.
For the kids
I have two sons aged 3 and 6 and I would like to start investing for them. I would start investing $100 each for them in an ETF of my choice .