Goals for 2021
Start my “newer” car fund
The time has come for me to start thinking about purchasing a newer car. My current car is 15 years old with almost 200k miles. I love my cash car and plan to purchase another when the time is right. My plan is to dedicate about 18% percent of my monthly income towards a new car. I do no plan to finance my next vehicle, however, if it happens, I plan to pay it off within 1 year. I have not had a car payment in almost 5 years and its been lovely. There is nothing like a newer car you can AFFORD. My advice on car buying
Buy what you can afford. If you are financing a vehicle for over 3 years, that’s not a smart money decision. You have to think about the big picture of the purchase. Typically when you purchase a new car, you insurance will increase as well as routine maintenance cost. Also, many new cars depreciate as soon as you purchase then. This is dangerous because if you purchased a brand new for $20,000 and it depreciates to $18,000 the day after your purchase, you already have negative equity on the car. If you were to get a car loan for, let’s say 6 years, the value of the car will continue to get lower while your still paying for it. Think about the BIGGER before you decide to buy a new car.
Max out my ROTH IRA
This has been a yearly goal for me. It has taken me a couple of years to truly wrap my head around my retirement plans. Not knowing how important this is until recently really gets under my skin ( we don’t know what we don’t know ). I know that I do not plan to work beyond the age of 65; my goal is to stop working at 55 but we shall see. This means that I have to make sure my retirement account is sufficient. The maximum amount I can contribute to my ROTH at the moment is $6,000 per year. I plan to do this each year as well as max out my 401k from my full time job. If your employer does not other a 401k or retirement options, look into starting your own as soon as you can. I chose a Roth IRA because when the money gets distributed to me, I will not have to worry about paying taxes later on. The money is already taxed. Explore more personal investments
I have been investing for a couple of years and NOW that I have a better understanding of what I am doing, I want to DO more and explore my options. I want to start looking at different ways I can invest. There are plenty of investment options to choose from which is why it takes me a while to choose. Im the type of person that will research over and over again until i’m ready to DIVE in. I am ready to dive in and take more risk now that I have done my research. I love to see how money fluctuates over time; it gets me excited. It’s important to establish a sufficient emergency fund before investing. This is vital! DO not invest if you have no money saved. If you have questions about investing, consult a financial advisor. * As a money coach, I do NOT give investment advice or sell investment products.
Start a child savings fund
I do plan to have kids at the some point. My goal is to start saving for those expected and unexpected expenses. I like to over plan and over prepare because what’s the worse the could happen? It’s important to anticipate what upcoming expenses you’ll have whether you plan to have kids, buy a house, or make another huge financial purchase. Few things are better than being prepared.
Earn at least $15k from my side hustle
The theme for 2021 should be multiple sources of income. I have had at least 2 jobs since high school back in 2006. I loved having a lot of money. Back then I wasn't sure what to do with it exactly, I just loved the idea of making money and saving money. My dad always had a full time job and side hustle. He was the ultimate hustler. It was something about have options with money that fascinated me. I was born frugal lol. My mom always shopped on the clearance rack and waited for sales. My brother and I had EVERYTHING we needed and a couple of wants sprinkled here and there. We knew the importance of hard work.
