by Ashley
For the past couple of years I’ve made our family’s financial goals public, sharing them with you all and tracking along throughout the year to see how we did (see 2015 goals here and 2016 goals here). We met our financial goals the past two years and hope this year will be no different.
2017 Financial Goals:
- Pay $30,000 Toward Debt. This may seem like no big deal since we had this same goal last year and met it, no problem. But this year will be different because our salary is going to decrease a bit. Hubs is going back to school and mid-way through the year I’ll be leaving my part-time job. I’ve kept hinting that I have some news on the job front but I’m still not in a place where I’m able to share it. Probably within the next few weeks I’ll be able to elaborate on this. Overall, though, our salary will be down this year compared to last year.
- Fully Fund A Roth IRA. Our first two years of debt payment were narrowly focused on debt payoff at the exclusion of all else. When I started my full-time job in August 2015, a 7% retirement contribution was required (and is matched by my employer). In the past year (we’re almost at the 3-year mark for our debt payoff journey), I’ve tried to add in a little extra balance. That means more of a focus on savings for retirement and on spending a little bit for fun (e.g., monthly date nights, kids’ activities, etc.). I’m still continuing to do my mandatory pre-tax retirement contributions (it goes into a 401(k) type thing, but the education equivalent…I think it’s a 401(c) or something??) I’ve also tried to separately put a little money into a Roth the past couple years, but we’ve only managed to do about $1,500 or $2,000ish each year. This year the goal is for us to have 1 fully funded Roth at the maximum allowance (I believe it’s still $5,500). In the future we’ll work toward having 2 fully funded Roths, but I think just having 1 will be a good goal for this year, as we still work diligently to reduce our debt.
- Mom & Dad Getaway. This is still a very new and not fully fleshed out goal but one that has been floating around in my mind for quite awhile. For newer readers, hubs and I have twin 4.5 year old girls. One of our favorite (pre-baby) passions was to travel. We used to travel a LOT. In fact, that’s one of the reasons we have in our mind for why we want to be debt free: so we can have the freedom to travel! In February 2015 we set a goal to go on a cruise for my Mom’s 60th birthday and we did! We saved up for over a year and in April 2016, we went on a family cruise. It was a lot of fun and I’m glad we did it. But it kind of re-kindled this flame in my heart – this desire to travel with my husband! In the past nearly half-decade since we’ve had kids, we haven’t had a single overnight away from them. Not one. We love our kids, but I also think we’re now at the point that it would be healthy and good for us to have a little mini-getaway solo. It likely wouldn’t be for long (we’re thinking 4 days/3 nights) and it likely wouldn’t be extravagant (maybe drive out to San Diego since that’s only a few hours drive). So I’m sure it won’t be as costly as the cruise was. We don’t have defined or “set” plans in place, but we’ve talked to hubs’ mom about it and she’s volunteered to come out to Arizona and watch the girls for us so we wouldn’t have to be paying for childcare. I don’t know when this would be (maybe over summer; maybe not until fall), but it will happen sometime in 2017. It needs some work to make the goal more defined, but it’s a definitely goal we have for this year.
I know this is a get-out-of-debt blog, so some of the things I talk about (e.g., savings, spending) may be a little controversial. I am proud, overall, on how frugal we have been and how much we’ve been able to reduce our debt. I think ours is a success story. If we had less debt, we may have just been able to go gung-ho the whole time (we did for a solid 2 years!!!) and just eliminate the debt in its entirety. But with the amount of debt we’re grappling with, I didn’t think it was possible for us to be “gung ho” for a solid 5-6 years. I knew we would end up falling off the wagon. Therefore, we’ve purposely built our budget in a way where we can SUCCEED. That includes building in a little “wiggle room” for a monthly date night, weekly dance class for the kids, and having friends over for dinner every couple of months. These “life” things are important to us and we wouldn’t be able to make it through to the finish line if we didn’t allow them.
It’s been so encouraging to watch our debt shrink. We now owe $75,000 according to our most recent debt update. Here are our long-term goals:
2017: $30,000 toward debt payments
2018: $30,000 toward debt payments
2019: DEBT-FREE by the middle of the year!!!!
2019 still seems so far off! But then, we started this journey in 2014 and that feels like it was just yesterday! So I know 2019 will be here before we know it. We’re over half-way there!!! I hope you’ll continue to stick around while we’re on our journey. And I wish you luck on your journey as well.
What are your 2017 financial goals? Do you set annual goals for yourself and/or your family?
Hi, I’m Ashley! Arizonan on paper, Texan at heart. Lover of running, blogging, and all things cheeeeese. Freshly 40, married mother of two, working in academia. Trying to finally (finally!) pay off that ridiculous 6-digit student loan debt!
You are rocking this! Keep up the good fight and don’t give up.
You’ll have to give more details at some point on if your childcare costs will decrease with your husband stepping back from the business. Though if he’s taking a variety of college courses, he’ll probably still be pretty wrapped up during the day, right? If there isn’t saving from a childcare perspective, I bet there will still be some frugal payoffs just by having one person with a reduced schedule than with both of you going 100 mph constantly.
Anyhow, I think this sounds like a great 2.5 year plan. It’ll be important to maintain a balance between saving liquid cash, saving for retirement and paying down debt. Having good habits in the first two categories will help you redistribute all those debt payments when you finally pay off the last one.
I’m excited about your plans for the next year as well as your long range goal. Are you still planning on paying extra on your home? Have you given up on refinancing the school loans? I’d like to hear more about how you feel the mortgage process went. Are you happy with the interest rate and length of your loan?
Great goals! Sounds like it will be a bit of a stretch for you, but that’s what goals are for – to push ourselves! I love the mom and dad getaway too! It’s been fun to watch you reach your goals – can’t wait to see how you “kill ’em” this year too!
In news that is surprising to no one, you are not the only person who has experienced difficulty with Navient and the CFPB is suing them. http://www.wsj.com/articles/cfpb-sues-navient-over-student-loan-servicing-practices-1484765340
Cheers to when you’ll be done with them for good.
I’ve been aggressively paying off a similar level of student debt for several years now but once I paid off everything above 6% I felt i really had to focus on savings/retirement as well. So I started not just calculating my debt payoff but my net worth. I don’t have a car and I rent so this is pretty simple for me (maybe you could use bluebook value of the car?) but I think it might be worth it for your more complex situation. It really helps me capture all the progress I’m making, not just paying off the money I already spent on my education but the money I’m saving for the future.
Saw this today and thought of you!
http://www.azcentral.com/story/money/2017/01/18/consumer-agency-sues-student-loan-giant-navient/96720490/
Ashley! Navient has been sued by the consumer finance protection bureau for improperly allocating payments among other wrongdoings. Thought of you immediately. Check it out.
https://www.reddit.com/r/personalfinance/comments/5ou70b/heads_up_the_federal_government_just_filed_suit/
Ashley, have you seen this?!
https://www.nytimes.com/2017/01/18/business/dealbook/student-loans-navient-lawsuit.html?_r=0
(Just saw that Adam posted something similar!)
https://www.reddit.com/r/personalfinance/comments/5ou70b/heads_up_the_federal_government_just_filed_suit/
YES!!!! This is what I came here to post. 🙂 Hope they go down big time.
https://www.reddit.com/r/personalfinance/comments/5ou70b/heads_up_the_federal_government_just_filed_suit/
I know this suing of Navient has more to do with your prior posts but it sounded so much like your struggle…
Here is another articles on Navient!
http://www.thepennyhoarder.com/navient-student-loans/