The piggy is very tired after being pushed and pulled and stretched the last 12 months. He's a trooper though, and is holding more than he was on January 1. I've simplified my reporting on our finances to have our starting goal, progress in cash difference, and progress on utilizing the savings towards our priorities. We increased our cash savings balance December and end with an over all increase of $12,311. As part of our original goal was to top off DH's retirement to the max of $24,000, now achieved, I've added that into the non-cash progress towards our savings goal.
Annual Savings Goal $40,417
Cash Savings Increase $ 12,311
(since January 1, 2017) Financial Goals Achieved/Progress
Fully Fund Roth $13,000
DH Additional Retirement $ 6,000 (towards $6,000 as part of annual goal)
Total Savings achieved $31,311
Goal Balance/not reached $9,106
We increased our savings average to $2,609. This includes the $6,000 we thought we were going to need to make up at end of year for DH's 401K, so really cash savings including the money paid against the Roth, averages $2,109. I will put a line under 2017 finances. We have overall short and long term savings rate of 42% of our income, cash being 14% of that. I have an automatic 5.5 %, with a 5.5% match to my pension. We have no control on this, so I still leave this out of the equation entirely.
I am generally satisfied. The goal was super aggressive. Granted, we were greatly aided with my raise and with DH having more salaried earnings, but we did tighten our belts in a few areas and feel comfortable continuing to do so. There should not be any reason we cannot make the ambitions 2018 goal of new savings of $34,500 and using up to $13,000 of existing savings to go towards our trip and or the Roth. We are in it together and have our daughter in the game as well. I have no idea what the tax implications might be though for some of the untaxed earnings DH had. We might be blindsided with a bill that sets us moving backwards. If that is the case, we will deal as we have in the past.
The great part about saving is that if you do end up with a tax bill you can actually pay it :) The more aggressive the goal, the more likely you will save more money, even if you don't reach that goal than you would have if you hadn't had the goal
ReplyDeleteI do need to remember these are aspirations not end all be all financial golas. It does push me to look just a bit harder before purchasing to get the best value or determine if I really need said item at all.
DeleteYou are doing great! I'm also nervous about potential tax implications from selling our Seattle house. I had an accountant run the numbers, and have money set aside, but just live in fear that it will be 2x what I'm expecting, or something.
ReplyDeleteLike Cheapchick, my philosophy has always been to aim super high. Even if you don't hit your savings goal, you will have saved more money than without the big goal. Too easy to fritter money away.
The good thing is, the money is thereif we didn;t plan as well as I hoped. It will jsut ean we have to work harder in 2018 towards the goals.
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