Financial Goals: The Long, Short & Middle Of It

I’ve been inspired by this post to list out our/my financial goals. I like the idea of planning out savings the same way you would plan out paying off debts using the Dave Ramsey snowball method.

Hopefully I will remember to refer to this and update as the years go by.

Short Term Goals (anything that needs attention in the next year):
Name: Maintain Emergency Fund
Life Reason: To give us the freedom to undergo hardship without stress
Terminal Amount: $40K (Source: Savings)
When goal needs to be met: Already met

Name: Car Replacement
Life Reason: We have 2 old cars but one is likely to die soon or cost too much to repair.
Terminal Amount: $25K
When goal needs to be met: September 2016

Once a short term goal is funded, you can immediately spend the funds, or save that money toward mid-term goals

Worthy Midterm Goals (anything that needs attention in between one year from and when we retire):

Name: House Down Payment
Life Reason: I would like to own a house that can be left to kids. However I’m firmly believe that most houses are not investments.
Terminal Amount: $200K
When goal needs to be met: 2017

Name: Life Insurance
Life Reason: We have a special needs child who will need financial help after we’re gone.
Terminal Amount: $100K*
When goal needs to be met: 2037-ish
* Truthfully I don’t know how much we need in this account. Several people have told me that the government programs will suffice, yet these are the same people who tend to favor budget cuts in government programs (which would include any program helping the disabled).

Long Term Goals:
Name: Retire
Life Reason: We want a comfortable retirement with ability to leave enough to our kids.
Terminal Amount: $1.5M indexed to inflation
When goal needs to be met: 2037-ish

While we’re okay in terms of emergency savings and our car goal, it seems highly unlikely that we can meet the 2 biggest goals — house down payment and retirement.  I am assuming that the house value will have to be a part of retirement or inheritance for kids.

 

 

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One thought on “Financial Goals: The Long, Short & Middle Of It

  1. I love these goals! As for your disabled child, I would definitely want some level of support though an inheritance can of course go a long way in providing for their needs. Best of luck with all your goals! We always seem to have to add a car related goal at the least convenient time.

    Like

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