It struck me the other day that I am saving up all of this money (as many of you have mentioned time and again in my net worth updates) but that I have no solid GOALS for it. And it’s true, to a certain extent.
I save because I don’t want to spend! And because it’s addicting:) The more I can save now, the more I can put to good use later when something super exciting comes my way. There’s nothing *too* wrong with that, right? (right)
On the other hand, I am a HUGE proponent of setting goals for yourself and really using that light at the end of the tunnel to help you get there (and not drive yourself cRaZy in the process). Sure I don’t always follow my advice, but deep down I know some of it’s actually pretty good :)
And I’ll admit it’s def. not as FUN saving so nonchalantly like I’m currently doing right now. It’s certainly satisfying – and I feel blessed as hell to be able to do it for so long – but where’s the end to all this hard work? How long do I have until I burn out? These are all questions that have been circulating around my mind lately.
And here’s what I know:
- There’s nothing of value I really want right now (physical object-wise). No tvs, furniture, fancy cars (okay, well I STILL want that red benz, but not just yet), electronics, etc. Do I see more traveling in the future? Yes. But that’s not enough to wipe out all my current savings.
- I don’t want to pay down our mortgage yet. I know it’s not financially smart, but I just can’t stand the thought of handing over all this cash just yet. And this is something I really need to work on in the future. I’d rather have $360k in cash and a mortgage, than $0 and debt-free – as crazy or weird as that sounds. [Update: I’m now on a mission to pay off my mortgage in 10 years!]
- I really want to work for myself soon. I can’t tell you how many ideas for new products/websites come to my head every single day! It’s like a 24/7 swirl of creativity lately and the only thing stopping me from pumping these out is the lack of TIME. That’s it, I just need more time – and having a 9-5 severely puts a block on this ;)
- The more I can save double income, the better I’ll feel. (when going full-time) We already have an Emergency Fund for our house and expenses and the rest to last a few months ($10,000), but I’d need a bigger chunk to include losing my healthy salary.
- I probably won’t make a ton going solo. Unless I get lucky and something goes viral :) But that’s the thing – I’ll never KNOW unless I start creating these things! Which means it could take months, or even years, until I recoup somewhat of a decent income.
What does all that spell? My new savings goal! (Have you guessed what it is yet?)
I hereby declare my new Savings Goal to be $50,000 – To be used solely as my “Work For Me” fund!
Starting today, I’m making it official and putting the pen to the paper, baby. $25,000ish down, $25,000ish more to go! It doesn’t mean I’ll quit the day I hit that magic number, but it’ll be enough for me to drop the See Ya notice at any damn point I please ;) It’s a nice use of $50 Gs, don’tcha think?
What are you currently saving up for?
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(Photo by ieshraq)
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I’m glad to hear someone else doesn’t have a goal for all this saving (beyond the obvious building wealth and retirement). I don’t really want anything right now. I’m good.
I see it more as a game. How much can I save? How little can I spend? How fast can those accounts grow?
Eventually something big and important will break or need upgrading, and it’s nice to know when that time comes it will be no hardship to make that purchase.
Im paying down my debt, then saving for an emergency fund, then a travel fund and a few other things. When you’ve got a goal, saving money is so much easier!
Jeff
I’m currently saving to fund my relocation and, if need be, to be able to survive for a few months in my new state without a salary.
I’m in the middle of paying off my debt and starting an emergency fund. After those 2 are complete I’ll reset some goals.
@Leigh – Yup, it’s an AWESOME game! And it gets easier to win the more you play ;)
@Jeff @ Sustainable Life Blog – That’s a lot of goals! A man on a mission can’t be stopped though brotha, keep it up!
@Young Mogul – Coming to DC? :)
@Techbud – Both excellent ideas! 2 large ones are more than enough for now.
Ah… grad school loans. And then to blog part time and find a fun part time job with insurance. Every time the loan gets smaller I get more excited!
I’ve got my emergency fund built up and safely tucked away in a savings account, so I’m splitting my current efforts between saving up for travel for upcoming weddings, saving up for a trip to Italy next fall, and using the remainder to pay down my student loans. As much as I’d love to pay off those loans sooner, I’m not willing to put off travel until that happens! Those memories are priceless and worth the extra interest!
WHATTT!!! That’s friggen awesome! Man congrats! That is so awesome to have a goal like that, and so many ideas in mind! You could be preparing multiple projects for when you do actually quit the 9-5 job – so right when you are working for yourself, you hit the ground running!
Man that is so awesome, I really hope you do this and succeed, because someday (in my dreams) I’d love to do the same! Keep us updated on the status, and whether you think you will do it once the time comes. Also keep in mind, that by the time you reach that point, your mind may change, or something may come up, then, BAM, you’ve got $40,000 or w/e at that point saved up!
Right now, all of our savings are targeted at paying off our second mortgage. We should have this goal completed by the end of the year. After that, we’re saving up for a trip to Spain! Three weeks in the old country visiting family and seeing the sights. Beyond that, I have no idea so I guess we better start brainstorming.
After a weeks vacation at Virginia Beach with the family, I guess my new savings goal is to buy a beach house. We rented one for the week at 4 grand, but it would be really noce to own one so that we could come and go as we please. That makes my target somewhere north of $1,000,000…on top of retirement and college funds for two kids (cuirrently ages 6 and 3). Looks like another 20 years of work for me.
@Laura – Oh yeah, the blogging & working part time idea is fabulous! You get the benefits of both worlds :) What I don’t like? blogging full-time and working full-time – at the SAME time! haha…
@Miss Jane – FUUUUUUN!!! Will you invite me over one day when it’s done? I haven’t jumped on my board for years. I’d love to have a personalized backyard too some day, but not until I find the dream home.
@Jenna – That’s right! no matter what happens in life you always have your memories!! (well, i guess unless you get sick. and also not all memories are good! haha…but for the most part, I agree – travel as much as you can! :))
@myfinancialobjectives – Damn straight. I’ve been hustlin’ like crazy on my off time these days, the problem is that I eventually have to drop one or the other (the 9-5 or blogging) and it sure isn’t going to be the latter ;) When I’m up and running I’ll be looking for partners to collaborate with too, so keep your eyes out and holler if we can make something big happen!
@momcents – Good problem to have ;) I bet Spain is beautiful! I’ve been through it along time ago, but I don’t remember anything. It’s def. on the list to check out for real. (and nicely played w/ 2nd mortgage!)
@steve – LOVE Va Beach! Used to go every year :) If you end up getting it, let me know and I’ll come rent for a week. My family changes it up every cple years now – the most recent vacations being in Delaware
I don’t really know what I’m saving for either. I set aside “fun money” every month, so I don’t feel deprived, but I don’t want much of anything either. This year (inspired by you, J!), I ran the numbers and found I could max out the ROTH and the 401k, so that’s on track. I’m just deciding whether I want to continue doing that next year. On the one hand, it’ll be nice to have that set aside. On the other, I’d like to increase my “take this job and shove it” fund, or at the very least, I don’t want to max everything out, hit 50 (I’m 26 now), and realize “oh I have enough to retire….but in accounts I can’t touch for another decade!” So, I think next year, I’ll go down to either 6% (to get the match) or 10% (just what I was doing before), and put the rest in taxable accounts….. I’m still undecided, though, lol!
Since I’m four dollars away from hitting my e-fund goal for this year, I would like to concentrate on a laptop fund, a puppy fund and a Chirstmas fund. Now to figure out how much each fund should get and getting there is the fun part!
Serendipity
I sure wish that I was saving for nothing in particular, but I think it would be easier to answer what I am not saving for…because I am basically saving for everything these days. A new house, I want to go back to school, and start my own business sometime in the near future. With all this on the go, I need to save every penny it seems.
It changes every day, but early retirement is always in the picture. Your post definitely got me thinking though, maybe I don’t want to retire as much as I want to enjoy my work and work for myself. Definitely something to ponder.
The same exact thing, actually! I love my job and love what I do – but I hate the corporate environment and the way people in my business act as if work is LIFE. I know life is more than sitting in an office 50 hours a week, scheduling meetings and living live through email. And so, my goal is to get to a point where I can work from home, work parttime, not work at all, or any combination of those things. ;) I’m aiming for the end of the year.
Sure thing, J! :D
Thanks for the information… I feel much better knowing that I am not alone in the rarity of building savings and living well below my means. I have paid off my house last year and drive a 16 year old truck which has no signs of failing. I have my 25k saved and was feeling ‘funny’ that I had this saved while all my friends are in 50k debt or better.
I think I will try my goal of doubling my savings, much like yourself… if I get to that point, I can move where I want to live, find work, and buy another house.
Thanks again and great job. :)
Wow! That’s a great idea, man. Good luck. I’m saving for a Porsche and a down payment for a rental beach house.
I am in the same situation. Have $25,000 saved trying to get to $50,000 only because of the economic times. Cash is king when making life changes to bad other people do not understand the value of saving.
Congratulations on figuring out why you’re saving. I wonder how you’ll feel when you get there?
@cg – Good for you though! Maxing out both your 401k AND you Roth is genius, I 100% always recommend doing that :) But I see your point on not being able to really touch it if you retired at 50. In fact, I never even thought about that myself! I think for me I’m going to keep maxing both out until the day I go full-time by myself, and then see how much (if any) I have to play with/invest after all expenses are paid each month. If I have a lot, I’ll probably keep increasing my cash fund and nix major retirement ones for at least a year or two…. maybe I’ll do the self-employed IRA.
@Serendipity – Haha, i love how we find all this stuff fun :) we are so nerdy like that.
@Moneyedup – That’s an interesting way of thinking of things actually – what you’re NOT saving for… I might have to use that as a future post, thx!
@One Frugal Girl – Yeah it’s def hard trying to find the best way to enjoy your time & money NOW, while at the same time doing it down the road too. I don’t think working for yourself is good for everyone (maybe not even 75% of the general population, BUT if you can find something you’re passionate about and really make a living from it I am 100% about it. And until we reach that goal we just gotta hustle like a mother ;)
@Sarah Smith – YES! Let’s both do it at the same time!!! Not sure if I’ll get my hands on another $25k by then, but it’s well worth a shot :) We need to spend our time working for US, and not corporatins who profit off us like crazy and can fire us at any point in time.
@Miss Jane – Saweet.
@Jimmy – Damn, good job on that house paid off part! That’s really incredible esp these days. Let’s cheer eachother on to make $50k!
@Hank – That porsche is a nice idea :) Rental house is good too, I’m just over the whole real estate stuff right now. If you can rock it more power to you.
@Brian – Cash is most certainly King. The more you have saved, the bigger your pool of options down the road!
@Kay Lynn (Bucksome) – You and me both ;) I’m pretty sure I can last at least 2 months 100% by myself, but unless I start working out of coffee shops & libraries I may start getting antsy not being around people. If that happens, I’ll have to submit my applications for Starbucks and/or a bartender position ;) That way I can still do my own thing AND check off some of my dream jobs!
Here’s the rest of the list too if you’re interested in reading: 10 Jobs I’d Like to Try Some Day
You are such a Big Baller. Nice goal to have and I’m even looking forward to the day when you can go full-time. It will be a glorious day in the world of blogging. :)
Keep on truckin’ J Money!
you trying to make me blush, sir? cuz it’s working :)