While I do get to a bit of an “over it” stage with finances, insurance and superannuation in my crankier moments, I still am glad I’m working on these things and putting thought into them. It only ends up better for me, and seeing as personal finance is all about me, I’m happy with me!
My Financial Goals In 2018
I have 3 main financial goals for 2018. One is big (the credit card) and two are tweaks in how I budget to help me have a better cash flow.
Pay Off My Credit Card
I’ve detailed the process here, but basically I know we’ll need a new car sometime this year. I’d like to not have any credit card debt (or as little as possible) before I purchase a new car. This is primarily because I don’t have a car loan now, but will have to get a car loan to buy a new car. Also, the amount I need to pay per month in order to pay off my credit card in 12 months is about the same as a car payment per month, so it would be really perfect if it works out that I don’t have a credit card debt when I buy a car.
Budget A Little Bit Better
I’m pretty good at budgeting for most of my bills. Anything that is a direct debit comes out of one specific account. I’ve divided up the bills and fund that account each pay period. I bpay some bills in advance, in smaller amounts. You can read more about how I budget here. But I’ve never been good at saving for irregular or infrequent things, such as car services, Vala’s 6 monthly vet visits, and a few other things. None of these are HUGE expenses in the grand scheme of things, but are usually more than I can scrape together in one pay period when it’s needed. All I’m doing to tackle this is what I do with every other bill, annualise the cost and work out how much I need to put aside from each pay.
Save Money For Insurance Excesses
Thankfully, only my car and contents insurances have excesses. However, between them, it’s not an insignificant amount of money to have saved. At least from my salary and single income point of view. I’ve decided to fund these over two years, putting away an amount each pay period that will allow me to have the full amount of each excess in two years time. After that, I will actually continue; this is because whenever Ben is able to learn to drive, he’ll have an additional excess as an inexperienced driver. I guess that’s a goal for 2018 and 2019 (and maybe a bit beyond), when I think about it. Still, it’s a goal I’m starting this year, so it counts for this post!
Do you have any financial goals this year?