Want to get a peek at our savings goals for 2017?! You’ve come to the right place.
Below I’ll share what we’ve saved for, what we’re saving for this next year, and how we’ll make it happen.
This is year ten (10!) of us tracking our savings goals! Year ten, y’all!
Want to make your own success with saving money? Start tracking your goals like us. It works.
In short, this was a good year for saving. Not great, but definitely good. We continue to live within our means and stash away the difference toward our short, medium, and long-term savings goals – all of which are leading us quickly towards full financial independence.
Savings Goals by Age (10 Years of Data)
I share these goals to hold myself accountable and so that you’ll be encouraged to save yourself. But I also share so that we can see our progress through the years.
You can use the navigation below to go back 10 year (to 2007) to see what all we’ve been saving for this past decade.
FYI, I used to share debt reduction goals as well. Now we just have the mortgage (15 year fixed) and aren’t planning on paying it off quicker…yet (that may change if I decide to pull the trigger on a mortgage accelerator program).
Our Savings Goals for 2017
1. Maintain Our Emergency Savings
Our emergency savings is around $10k and I’m comfortable with that number. So we will just hold steady unless we have to tap it during the year.
2. Grow Our Retirement Savings (Roths are the Priority; Switching to the SIMPLE IRA for one business)
Our total retirement savings balance is now above $500k. If we never save another dollar towards retirement, this amount will grow into enough to retire on when we hit 65 (I’m 41 now).
We’d like to be financially independent before that point (likely around the time our kids leave the house – in 14 years when I’m 55), so we will keep pushing this balance up using maximum contributions ($5,500 per person in 2016 & 2017) toward our Roth IRAs.
I’ve set this up as an automated contribution through Vanguard, the mutual fund company that I use. We invest 100% of these contributions in one fund, VFORX.
If we only did this one thing (max our Roths each year) we will have over $1.4M saved by the time I’m 55 assuming a 7% return and 3% inflation rate.
Beyond the Roths, we are opening a SIMPLE IRA (likely by May/June 2017) for FinCon to make excess income contributions to for 2017.
In the past we’ve used a Solo 401k – but in 2017 I’m hiring a full time employee and the Solo 401k isn’t allowed for that type of business.
For my other business, PT Money, I don’t have a full time employee so I can stick with the Solo 401k there.
Like in the past, we’ll use these two accounts (the Solo 401k and the SIMPLE IRA) on an as needed basis to help us defer income taxes into the future.
3. New Short to Medium Term Savings Goals
Okay, we’re doing a couple of things here.
First, we’re opening up 3 new savings accounts we’ve been putting off for some time (1. New Car Fund $15k; 2. New Air Conditioners Fund $15k; and 3. New Floors Fund $15k). Those are pretty self explanatory. We will house them in the Capital One 360 Savings Accounts and fully fund them at the beginning of the year from excess business profits.
Second, we’re reducing the number of smaller savings accounts down to one: property taxes ($7,500 a year – so we automate a savings deposit monthly to reach this total by the end of the year). It’s by far our biggest short term savings goal each year and in an effort to simplify I’m killing off everything else.
Vacations will be spent from points and excess fund in the checking account. The same goes for annual insurance payments, HOA dues, Christmas gifts, etc. I found that none of these expenses ever rose to the level where we couldn’t have covered them with funds in checking.
What about taxes? Well, I’m moving taxes to a business savings account. I read Profit First over the Summer and it’s changed the way I think about running my business finances.
One of the key aspects to the Profits First system is creating multiple business savings accounts for things like taxes. I’ll try to share all of those details in a new post once it’s set up.
4. Doubling Efforts to Save for College
Okay, this is somewhat of a misleading title. We only save $25 a month per kid for college now. So we’ll be moving to $50 a month per kid.
We use Vanguard funds within the Ohio College Advantage 529 College Savings Plan (we’re in Texas so no tax break for using Texas plan).
Right now our three kids have about $14k, 11k, and 3k, respectively in their accounts. At this rate each child will have a year or two of tuition at a state institution covered by these accounts.
We’d like them to take on the responsibility of paying for the majority of their college expenses either through savings, scholarships, or loans.
5. Health Savings (HSA) is On Hold
This is still on hold. We can’t contribute to this fund because we’re on Medishare and don’t technically have health insurance. This hopefully changes with the new Administration and Republican control of the Congress.
If things go really well with my businesses this year we’ll be able to do some extra special saving:
- Max out our SIMPLE IRAs ($36k for FinCon) and Solo 401Ks ($36k for PT Money). If I do this it means my businesses both made a good chunk of change.
- Save $25,000 to start a donor advised fund with Vanguard. This would allow us to take the focus of our giving off of the end of year a little bit.
That’s it for me. What about you? What are your savings goals?
Want to see our goals from previous years? Click to the next page.