It’s the end of the year and that means going over finances and making a plan for next year. We are currently concentrating into moving into a new space. We still want to live in the same area since that is where the kiddos go to school and have friends, etc. Besides we love our little town. Now is the time we have to figure out if we want to build a house, buy a house, or stick to a condo. Brian and I keep going back and forth because each has their pros and cons, but while we wait we are growing an emergency fund and establishing and sticking to a reasonable and responsible budget. Which as we all know isn’t as easy as it sounds. So I was checking out the Capital One 360 site and found some get ideas on how to establish our goal:
- Step 1 – Get it down on paper: The first step in planning a trip is to know exactly where you’re going. The same is true for your financial plans. With a specific plan, you can stop drifting along and start driving.
- Step 2 – The long, medium, and short of it: As you make your list of goals, you need to think about when you will want to achieve them:
- Short-term goals (1-3 years), such as paying off debt or renovating your house
- Medium-term goals (4-10 years), such as saving enough for a down payment on a house, or building your IRA, 529 college savings plans, and other tax-deferred accounts
- Long-term goals (10+ years), such as paying for your toddler’s college education or retiring comfortably: Remember: No goal is short-, medium-, or long-term by definition. Retirement might be a long-term goal if you’re 30, but a short-term goal if you’re 65. A college education might be a long-term goal for a toddler, but a short-term one for a teenager. The more specific your time frame, the more you’ll want to make sure you have money available when you need it.
- Step 3 – How much are my dreams likely to cost? If you don’t know what each of your goals will cost, you’ll need to do a little research. Ballpark numbers are fine. For goals that are more than a few years away, inflation is worth thinking about. Historically, inflation has averaged about 3% per year. At that rate, a home renovation that costs $30,000 today will cost about $35,000 in five years and about $40,000 in ten. Getting the best rate you can for your savings can help you keep the value of your money where it should be.
We’ve taken the first 3 steps and have a plan. It took some time to decide between our wants and needs. For example: I may WANT a home office, but I don’t need it. I just want something that fits us perfectly. Not too much to ask right? Now I just need to cut down on my rice habit, the kids don’t need as many apps, and Brian can live without cable for a bit. –Hey we all make sacrifices for our goals right?
Speaking of helping you get to your #FinancialPeace state of mind, Capital One 360 is having an AWESOME Black Friday Sale! Once the Thanksgiving celebrations are done, be sure to add Capital One 360’s Black Friday Sale to your shopping list. Visit http://clvr.li/cap1bfs to give yourself the lasting gift of financial peace of mind by taking advantage of Capital One 360’s deals on banking, brokerage and mortgage products. PLUS, in addition to taking advantage of deals on banking, brokerage and mortgage products yourself, you can give your friends and family the gift of financial peace of mind by encouraging them to take advantage of the deals and refer them to the sale. If they sign up, you may be eligible for a $40 referral bonus.
|ShareBuilder||Up to $1,250 bonus (tiered offer)||
|Home Loans||$1,250 off closing costs||
|360 Checking||$100 bonus||
|360 Savings||$100 bonus||
|Refer a Friend||$40 bonus per successful referral||
So hop on over and check out the deals over at Capital One 360 today. Get a head start on your finances for 2015!
I was selected for this opportunity as a member of Clever Girls and the content and opinions expressed here are all my own.