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Goals for 2007!

December 28th, 2006 at 09:47 am

I said I would do it yesterday, so I'm doing it.

This is still a draft, and I will have to refine it a bit, but here's the list for our goals for the New Year:







:: Savings ::
1. Save 10% of income into E-Loan account (+ ~$7,000)
2. Get my Scottrade account at $3,000 (+ ~50%)
3. Fund DH's 401(k) by $3,000
4. Pay off DH's 401(k) loan

:: Credit cards ::
5. Amazon, Target card paid off by March (3 payments)
6. Chase transfered to 0% APR by January and paid of by December
7. MBNA: send regular payment + raise every month - Have it paid off by December

:: Mortgage ::
8. Make at least $300 payment on mortgage #2 every month
9. Make at least $1,550 payment on mortgage #1 every month

:: Car ::
10. Payment of at least $450/month


-------- Update --------
Here are a few notes on the items above:
1. 10% is not much compared to what I've seen people in the personal finance community do, but it is realistic for us. Anything over this would be great and will go in savings.

2. I was lucky to be able to have $2,500 to "play" with for the past year trading stocks. Well, let's face it, I'm not too good at it. Although I did go as high as $4,200 in a few months only to lose it and come back down to $2,000. My goal is to get more conservative stocks, mutual funds and REITs and with the help of a few deposits along the year get back up there.

3. The max contribution for a 401(k) is $14,000 but that would be about 50% of DH's income. So not gonna happen. Again, I'm trying to be realistic.

4. Oh yeah! That one is a stupid one, and believe me he understands now why you never take loans out of your 401(k):
- He paid a 15% early withdraw fee plus 10% income tax = 25% lost for a lousy $400 loan, that's $100 gone for no good reason!

7. I will get a raise and in the spirit of living one raise behind, I will send every penny of that raise to pay off that credit card and pretend I never got it!

8 and 9. Regular payment on both mortgages are respectively $1,477.32 and $252.45. A few dollar more every money will save thousands in interest over time!
For argument sake, let's say we keep both loan for the whole 30 years - well actually the smaller one has a balloon payment in 15 years.


Mortgage 1
Loan Amount: $236,800.00
Monthly payment: $1,477.32
Over 30 years that's $295,036.61 in interest.

Payment at $1,550 cuts 54 months (4.5 years) of payments and we'll "only pay" $251,915.36 in interest. $43,121.25 saved.

Mortgage 2
Loan Amount: $34,000.00
Monthly payment: $252.45
Balloon payment due on month 180: $26,218.06

Payment at $300 cuts the final balloon payment to $9,739.28

See how amazing only a few extra dollars can make??

Finally,
10. Regular monthly car payment are $263.59. I have been making more than regular monthly payment starting at month #2. I already shaved off 6 months off our scheduled 5 years loan. I'm expecting this to be paid somewhere in May/June 2008. It should have been paid in March 2010.

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