money goals

New year. New goals. New resolutions.

The new year tends to inspire a renewed motivation within us to be proactive and take control of our lives. So many of us make a new year resolution with the greatest intentions. Sometimes we achieve these financial goals. Sometimes we get to the end of the year and forget what it was we said we’d set out to achieve for the year.


This year I have written my goals down to ensure that I remember them! It is my aim to come back to those goals at least once a month to keep them at the forefront of my mind. Hopefully in doing so, I will stay focused on them and not let the daily grind push them into the abyss.


Amongst my numerous health and wellbeing goals, are, of course, my financial goals for the year. This year I have two primary financial goals:


1. Pay off our high interest debt

Car loan

We currently have a car loan with an interest rate of 10.39%. This loan is for $25,000 over a 5 year period, with a remaining term of 32 months (2 years, 8 months).


Over the course of this 5 year loan, we would pay approximately $7102.30 in interest. To date, we’ve paid $3697.19 in interest payments on this loan.


However, the expected interest to this point in time is $4852.60. We have been able to reduce this interest rate by $1155.41 by putting some of our savings into the car loan account to reduce its value and therefore interest payable.


Nonetheless, it is my goal to get this loan paid off by the end of this calendar year at the latest. This will cut the loan short by a minimum of 20 months.


Credit card

In addition to our car loan, we also have a credit card with an interest rate of 13.24%.


In times gone by, we would use the credit card to buy things we couldn’t afford. These days, we don’t buy anything unless we can A) pay for it with cash; and, B) actually need or desperately want it.


However, due to our dark past of flawed consumerism, we do have credit card debt of about $3000 that we are currently paying interest on.


It is my intention to pay off this debt by the end of this year too. 


Furthermore, once we have paid off this debt, we will either get rid of the credit card entirely, or lock it away for use only in unexpected emergencies in which we can’t gain access to our cash reserves for some reason.


2. Transition to saving 33% of net income

As I recently outlined in my blog post “How I’ve gone from saving 5% to 25% of my net income in 6 months”, I’ve made a lot of changes to cut costs and increase fortnightly income savings.


Last year I managed to build my saving ratio of my net income up from 5% in May up to 25% by November. This year, I’ll be aiming to get that percentage up to 33% by continuing to implement additional frugal living measures and lifestyle changes.


I’ll be posting updates on how I’m going with achieving these goals throughout the year. So keep an eye out!


Cheers, TFC.

Posted in My Financial Journey and tagged , , , , .

The Flawed Consumer is a Gen Y consumer that is on a mission to achieve wealth simply by changing spending and lifestyle habits.

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