2007 Financial Goals

Since I decided to start this blog after the new year I never had a chance to discuss my financial goals for 2007. They are (in order of importance):

• Reduce Credit Card Debt by $5,000.
  

I am in the process of transferring most of the balance of my credit cards over to 0% cards so when I make a payment all of the payment will be going towards principal. I have a couple of concerns about this like how many is too many cards to open up and what do I do with them once I have paid the balance off of the card? Do I leave them open or close them gradually. I am currently planning on paying $500 per month towards these cards. Unfortunately I am seeing a couple of kinks in this plan - roommate's bachelor party, wedding present, travel to the wedding in Michigan and a weekend trip to Tampa in May. How I plan those trips will directly impact whether or not I reach this goal.

• Bolster Emergency Fund to $2,000.
  

During the time I was unemployed, I wish I could have tapped into an emergency fund. Unfortunately there was no such fund. At my current cost structure $2,000 will last me just about a month. I plan on aggressively attacking this goal next year.

• Contribute $3,000 to my 401K.

This is definitely my stretch goal. It is going to require alot of planning and luck to achieve. Why will it be tough? Two reasons - 1. Open enrollment in my company's 401K isn't till August. 2. Any raise or bonus that I get does not go into effect till August either. Right now the initial plan is to contribute the % increase in pre-tax salary to the 401K and live off of the same "net salary" or "take-home" pay that I have now. Essentially, adjust the pre-tax 401K withholding so that I end up with the same amount of take-home pay as I enjoy right now. Unfortunately I am not expecting a bonus - it is rare that first year associates get bonuses.

If you are reading this site in a browser you will notice that I have included my 2007 goals in the top left pane of the website. This will serve as a simple dashboard to measure my progress against these goals.

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