2016 Financial Goals and Objective

A goal is a task that must be completed in order to meet an objective. We have many financial goals for 2006, but they all exist in order for us to meet one objective – to increase out net worth. 2005 was a very good year for us financially, I only wish that I had more historical data to use in setting our 2016 goals and objectives. My personal net worth back in January 2015 was $66,000, and I estimate Mr. Savvy had a net worth of about $15,000-$16,000 at that time. That brings our total at the beginning of the year to about $82,000, which means we had a yearly increase of $39,000 ($121,000-82,000)! We increased our net worth by 47.5% over the course of the year.

This increase is due to several factors including our own diligence in saving and investing, the solid performance of the markets, and the continuous effort by me to reduce our monthly recurring expenses. We also moved and consolidated investment accounts, paid off a high-interest loan early, and took advantage of bonuses offered by credit cards and banks.

Some of my goals for last year were to continue to max out my 401(k), as well as my Roth. We accomplished both, and also contributed the max to Mr. Savvy’s Roth. Doing that is part of our goals for this year as well. I will also continue to track our net worth monthly, and do what I can to keep recurring expenses low. In October of this year, we will make the final payment on a personal loan, and I plan to continue to make those payments into our brokerage account after that point.

Some additional goals for next year include moving our non-retirement investments to Fidelity (hopefully we will soon have enough there to qualify for the next pricing tier) and building that account up as much as possible. My goal for our non-retirement brokerage account is a value at the end of the year of $10,000, which is about $8,000 more than it is worth right now.

After a lot of thought, I think a good goal for us for 2016 is a net worth of $175,000, which is a $54,000 increase by the end of the year, and a 38% increase over last year’s net worth growth. This equates to an average monthly increase of $4,500. This will be difficult to make, but I never would have thought we would hit $121,000 this year either. The goals I outlined above will get us most of the way, but we will need to make a habit of looking for new sources of income, creative ways to save what we have, and investments that will pay off over the long-term.