Another year is coming to an end, and as many people do I’m setting some goals for the new year. This list of goals is purely financial, aimed at my financial position being better at the end of 2020 than it is now. I’ll review the progress of my goals every three months so you can help hold me accountable.
Here’s my list of financial goals for 2020:
Increase Emergency Fund
In addition to the standard reasons for having an emergency fund, our appliances and vehicles are aging. I won’t replace them if I don’t have to, but if I’m forced to or if repair bills pop up I want to be ready. I’d like to double my emergency fund by the end of June.
Step Up 401k Contributions
My employer automatically contributes a percentage of my salary to my 401K. They also have a matching funds program for a portion of employee contributions. I’m just short of fully taking advantage of this benefit. I’d like to increase my 401K contributions to maximize my matching funds potential.
Stick To A Grocery Budget
I’ve allowed myself to be very loose with my grocery budget during much of 2019. My thought process was having great food in house would prevent me from wasting money going out to eat. While I still believe that to be the case, I’ve used it as an excuse to buy anything I wanted. My cupboards have been bursting with unused food. I will continue to buy great food, but I want to be more deliberate about what I buy. I will reassess my weekly grocery budget amount, and stick to it.
No New Toys
Both my wife and I have all the things we need for self-entertainment as well as for the hobbies we enjoy. We have absolutely no need to buy any new expensive toys in 2020.
Analyze Cable Bill
Many people advocate cutting the cord and dropping cable in favor of less expensive streaming services. I’m still a fan of cable, but my bill is bloated. In the coming weeks I will analyze my cable bill for services I can drop such as my landline, extra cable boxes or DVRs, and downgrading to a level of service that includes only the channels I watch.
New Year’s resolutions sometimes get a bad reputation, mainly for how often and how fast they are disregarded. But having goals to aim for provides an environment for growth. I will work diligently to achieve all my financial goals for 2020, but even if I’m only partially successful, I’ll improve my overall financial health.
How about you, EOD Nation, do you have financial goals for the new year?
Contribute a combined total of $20,000 into retirement accounts for 2020. This is my husband and myself, 401K and matches and Roth IRAs.