Auf Wiedersehen, 2005!
Posted on January 2, 2006 14 Comments
Forgive me for the title. I just discovered Project Runway on Bravo and, like Santino, was inspired by Heidi Klum’s catchprase.
Now that 2005′s just a memory, it’s time to set my goals for 2006 and reflect upon the last 525,600 minutes (“- how do you measure, measure a year?”).
In January, I laid out my goals for 2005. I’m proud to say that I made three out of four goals in my first full year of financial responsibility.
As you can read here, my 2005 goals were:
1. Increase savings account to $5,000
2. Get additional AmEx credit card for paying bills
3. Get student loans down to $10,500
4. Continue budgeting wisely (OK, this one wasn’t so measurable)
Here’s how I stacked up:
1. Savings account is currently at $5,340.41
2. Did not get an additional AmEx card…rethought that idea and discarded it
3. Student loans are currently around $9,800 (according to my last statement – I’ve since paid off $450 more)
4. I budgeted so wisely that I was able to increase my 401K contribution to 4% and I was able to take an amazing week-long vacation to the Pacific Northwest this year. I also got braces and had oral surgery
Wow. It’s amazing how finances have transitioned from being a burden to a point of pride. All it takes is a little discipline and committment.
Here’s my first stab at drafting goals for 2006:
1. Increase savings to $7,000
2. Increase 401K contribution to 5%
3. Decrease student loans to $7,500
4. Pay off my braces
There you have it. Three goals that are attainable and measurable. I’ll let you know if I make any revisions along the way.
All things considered, 2005 was a stable year for me. My rent did not increase, I kept the same job I’ve had since 2001 (and received a promotion) and my relationships were all in order. Yet there were some difficulties: I had my first brush with surgery, Brian quit his job to pursue a new path and my mom had a major surgery. I almost moved to a new city, but in the end, decided to stay in Chicago.
Overall, I do feel blessed. Unlike so many in the world, I have a home, a family. Watching the world go by from my couch can be a heartbreaking endeavor – considering the tsunami, hurricanes and earthquakes, and wars in distant lands, it is difficult not to feel helpless. I often wonder what my life would be like if I dropped everything to join the Red Cross or the Peace Corps. But ultimately, I know that I want to be able to provide a home for a family in the future – that is my calling – and working hard now is the best way to do that.
I’m still growing, still learning about the world and myself. I wonder sometimes how I can juxtapose the desire to travel abroad and help others with the serious obsession to buy a pair of Uggs boots. I agonize over politics, elections, the direction of our nation, yet I also spend hours reading Us Weekly and poring over jewelry trends that are hot for celebrities right now. I worry about the health of my loved ones, yet sometimes I can quiet all my inner dialouge for a night of fashion-inspired reality TV. Ah, the life of a Budgeting Babe.
Regardless of what happens in politics and fashion 2006, I’ll still be here, trying to figure out exactly how my cable bill became so past due while pondering the financial benefits of heel replacement on my favorite Nine Wests. Aside from the minutia, I’ve got some exciting plans for this year…but you’re going to have to wait to find out exactly what’s in store. I hope you’ll stay with me on my financial voyage and continue to offer such great feedback and advice.
Best of luck to you all in the new year and thanks for your support. I’m off to grab a morning-after mimosa and properly usher in 2006!
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14 Responses to “Auf Wiedersehen, 2005!”
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January 3rd, 2006 @ 5:43 am
this was extremely helpful for me… i will use your blog to put the same steps in motion for myself. thanks for writing and sharing.
January 3rd, 2006 @ 3:29 pm
Why not payoff that student loan? Not sure what you are doing with your money in savings but getting rid of a bill, such as your student loan, will give you a 6, 8, 12 percent increase in your savings.
January 3rd, 2006 @ 5:45 pm
Your student loan can be looked at as “good debt”. and you can get a tax break on the interest you pay on your ’05 taxes (and ’06 for next tax season).
Good for you to keep paying it down as you are…
Does your employer match your 401k contributions? Mine matches 50% up to 5% of my contributions. If your’s does the same, consider upping your 401k contributions to whatever they match.
You may want to consider adding more to your 401K no matter what as it’s your best “savings” option.
Also, think about a money market for your savings. Although rates aren’t too great, money in a money market may seem harder to get to than a basic savings account and you may be less apt to tap into it. Keep us posted!
January 3rd, 2006 @ 5:58 pm
Best of luck with the new year and your financial goals Budgeting Babe! Congrats on meeting the goals you set out for yourself in 2005.
Personally, I’d increase the 401k contribution if you could. I don’t have a company match but I’m able to tuck away 15% and am contemplating increasing it to 20%. The account was up over 10% last year. Not to shabby!
Best of luck everyone!
Terry
January 3rd, 2006 @ 9:16 pm
Just found out about your blog two days ago. I must say it is excellent. I like reading it. I haven’t really been following what is going on but you owe any other credit card debt, pay those off. Student loans have the lowest interest rate in the debt world. I would also try to put more in your 401K portfolio. Good luck!
January 3rd, 2006 @ 10:36 pm
I THINK THIS WAS VERY HELPFUL TO ME AS WELL IM GOING TO USE YOUR SAME BLOG.AND I UNDERSTAND PAYING OFF THE STUDENT LOANS IM IN THE PROCESS OF DOING THE SAME THING.AND LOOKING AT THIS REALLY HELPED. AND GOOD LUCK IN 2006 IM KNOW YOU WILL ACCOMPLISH YOUR GOALS.
January 3rd, 2006 @ 10:51 pm
Love your blog, budgeting babe. I also love today’s thoughts, as they jive so closely with my own… wanting to make the world better, but also wanting those cute new boots. Ah, here’s to 2006! (clink)
January 4th, 2006 @ 12:37 am
That’s right Baby get rid of those credit cards!
January 4th, 2006 @ 5:46 pm
I am so happy to have come across this blog. I too have been focusing on my finances over the past year and have set up new goals for this year! I am glad I am not alone in this adventure!
January 5th, 2006 @ 3:52 am
good job, budgeting babe…keep it up…i just hope i could be as disciplined as you are this year so that like you, i could be able to pay off my loans faster and start building more on my savings…
January 5th, 2006 @ 2:55 pm
Good job with 2005 and best of luck in 2006! With some people (such as myself), it’s all about baby steps with handling debt, and paying down a student loan is quite an accomplishment in my world. Keep up the good work!
January 5th, 2006 @ 7:54 pm
I happened to find your blog the other day and I cannot even begin to tell you how inspired you have made me. I have been struggling with a way to straighten out our finances (married with five kids) for a long time. I spent a good hour flipping through your blog and then set some goals of my own for 2006. Thanks so much for having this blog. I can’t wait to read more!
January 25th, 2006 @ 2:03 pm
Hi Blogger! Ik ben op zoek naar financieringen Zou Afab echt zo goed zijn als iedereen beweert? Of kan ik beter zoiets als Geldshop proberen?
Groetjes Albert
July 15th, 2006 @ 6:10 am
Debt Settlement
Debt Relief can help you reduce your interest burden by charging an interest rate lower than the rate on your existing loans. Debt consolidation loan can also allow you to make small monthly payments by extending the loan period
http://www.debt-consolidation.com