Thursday, December 3, 2009

New Financial Goals

Now that I have a new job, I think I need to come up with some real financial goals other than paying off my credit cards.

Goal 1. Emergency Fund

According to Suzie Orman you should have an emergency fund of at least 6 months salary in the event of job loss.

Emergency Fund - $10,000

Goal 2. New Car Fund

My current car is 10 years old and while it runs fine I know that I will need a new car sooner or later. According to Internet lore you should put down 20% of the price of the car to account for depreciation.

New Car Fund - $5000

Goal 3. Monthly Savings

Most financial advisers (at least the ones I have seen on TV say that you should save 20% of your income. I can not afford that, so I'm going to start with 10%

Monthly Savings - $230 per month

These goals are going to take a lot of discipline to accomplish. I guess if I focus on the monthly savings I will get all of the goals done over time.


  1. This comment has been removed by a blog administrator.

  2. Dave Ramsey and Suze Orman (as well as me) always advise that you should never, ever buy a new car. Let someone else depreciate. You should aim for a 2-3 year old car should the day come and you need to replace your 10 year old car.
    Also, $10,000 emergency fund is a bit hard. Try for $5000 to $8000.

    You are too hard on yourself.

    Ease up.