Lately my financial strategy has been evolving to meet my short-term and long-term goals.
Short-term goals (2018)
Be CC free
Pay cash for a new car
Increase 401(k) savings rate
I’m super close to eliminating my credit card debt. I fully expect to do so on April 15, 2013! Can’t wait. I will immediately turn my attention to saving money to pay cash for a car. I’m still driving my 2015 Honda Civic and it has less than 100,000 miles on it. It’s worth just under $8K if I sell it myself. Which is crazy because I bought it for $15K. My goal is to pay $15,000 on a new-to-me car, that can last me about four to five years. So that means I only need to save $7,000 for a replacement. I want to pay cash. This should take me three to four months.
Meanwhile, I will start slowly increasing my 401(K) contributions. Right now 4% of my paycheck goes towards my 401(k). I plan on increasing this to 10% by the end of the year. I will continue to put aside $75 per pay check for my emergency fund. So by the end of 2018, I will have a new car, be unsecured debt free, be saving 10% of my income in my 401(k) and have $2,411 in my emergency fund.
Mid-term goals (2018 – 2020)
Build emergency fund of $12,000
Save $30,000 for down payment on a town home (second property)
Eliminate HELOC (first property)
My next step in 2018 will be focused on increasing my emergency fund to $12,000 and saving money for a down payment on a town home in which to live in. My goal for the down payment will be $30,000. So I expect to reach this sometime in 2018. My hope is to find a town home that needs some updating that I can live in while fixing it up. Then I will turn my attention to eliminating my HELOC. Right now this is $41,550. I want to eliminate that altogether and then turn my attention to my long term goals.
Long-term goals (2020 – 2023)
Increase emergency fund to $24,000
Save $30,000 for down payment on rental property (third property)
My long term goal is to buy a total of four properties in the North Dallas area that I can fix up while living in it, renting out the previously purchased property. This is after increasing my emergency fund.
This is my vision now. Nice to have it documented so I can come back to it in time and see how things pan out.