Happy 2015th Birthday America!


Before I get yelled at by people that can’t take a joke, the title is a joke.

Happy New Years!

Before I share our goals for 2015, it’s time to look back on 2014. It was a big year, and didn’t go exactly as planned.

The first and most important factor to bare in mind is that we bought a house. I had been planning to make this move in at least another year or 2, but the housing market here and the cost of living is raising fairly rapidly, and I believe locking down a deal now is going to pay off in the future. I view buying a house as a necessary liability, it’s like acquiring a rental property, but ensuring that your tenant is the best tenant you could ever hope for. I’ve written about my opinion on buying a home as your primary residence here. Unfortunately, this month it feels like more of a liability since we need to make a repair to the chimney.

The next important factor that made the home buying possible, was getting a new job. My job has been a great improvement in my quality of life, both financially as well as emotionally. My previous job was bringing me nothing but stress and frustration, so getting this new position was a huge win.

All of these big transitions made it difficult to keep up the blog, but I have no regrets.

Now, down to business: the 2014 goals.

1. Cut expenses in January. At the end of 2013, we were not in an ideal financial situation due to extra expenses regarding the ’98 Jeep, and the upcoming weddings and bachelor party. We ate really cheaply and relied on gift cards in January, and as a result, we were back on track by early March. So I think this one turned out to be a success.

2. Save $20,000. Through the entire year, we were able to save about $14,500, and most of that came out to go towards the down payment on the house anyways. I think we made a valiant effort for everything that happened this year, but in the end, I must call this a failure. Some big factors here had to do with a month of rent overlap, and extra money that went to the down payment and never got a chance to be invested.

3. forward monthly dividend income of $50. Based on a rough calculation, the average monthly dividend yield from the total of our 2014 investments (had we not sold for the down payment) would be less than $50. So since we failed the savings goal, it stands to reason that this goal would also not be met.

I don’t want to beat myself up too much over only achieving 1 out of 3 goals, because this year has been fantastic and rewarding. However, 2015 should be a lot more tame and thus it should be easier to pull off some decent goals.

1. Another cheap January. We’re in a much better financial situation this year, but we’re also experiencing some lifestyle inflation with the new job. We don’t eat out too much, but I think taking a month to get back to the basics well benefit us. I think this kind of financial reset is very helpful to staying on track for the rest of the year. At some point this year, I want to achieve a month where expenses only take up 50% of our income leaving the rest to be saved. Unfortunately, we have a substantial repair bill on the horizon for our chimney, so it’s unlikely I’ll be able to make a new investment this month.

2. Save $18,000. After getting a dose of reality in 2014, and the before mentioned lifestyle creeping, I’m dialing back the savings goal to something more reasonable. This goal means we’ll need to save about $1500 each month. Assuming the holiday months might make this more difficult, it might be good to shoot for $2000 on good months, so there is some flexibility on the expensive months.

3. Try cooking a new healthy dish every month. I have a habit of relying on my old standby for dinner, tacos. If I want to improve my health and happiness, I will benefit from expanding my menu. Which leads me to goal number 4.

4. Lose 10 pounds by June. My 30th birthday is coming up in June, and I’d like to be in decent shape before the big day. I plan to workout and eat healthy to get my weight down to under 200 pounds.

So this is what I’m hoping to accomplish in 2015. What goals are you setting?

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