Thursday, July 24, 2008

Savings Goals

Today I sat down and actually worked out what my Savings Goals are. I'm a goal oriented person, and goals do well to make me feel as though I am making progress.
Currently, 5% of my paycheck goes straight into saving for my Emergency Fund. Now that I have a second job too, I want to take 5% of those new checks and split them across several different savings account. I'm using ING for this because they have great interest rates and sub accounts are so easy to set up. So whenever my check comes in from my other job 1% will go into each account and the other 95% will go to paying down debt.

I am now working (slowly) towards the following savings goals:

Emergency Fund - $3000
This is approximately three months worth of minimum living expenses.

Thailand Fund - $4000
This is for a really good non frugal trip to the country I have always wanted to go to.

Auto Fund - $2400
This is the Blue Book value for my car, essentially this is me self-insuring my vehicle.

Medical Fund - $685
My deductible, plus my emergency room copay, plus a doctors copay, plus a specialist copay. I want to be very prepared.

Down Payment Fund - $12000
We'd like to buy a house pretty soon. This goal is the most unrealistic of the bunch but I really want to be working towards it.

I'll post an update on how I am doing with my monthly Net Worth update.

Have you set concrete savings goals yet?


Chris said...

I like the savings goals that you have set up. I don't hear too many people talk about self-insuring their vehicles. You could potentially save a lot on insurance if you did it right. Its something that I would like to do, but I am a long ways away.

Scott @ The Passive Dad said...

These are some great goals you've established. Good to see the emergency account and a car fund too. What's your plan once your emergency account is fully funded? Investments?