2017 Savings Goals
Our goals this year are really simple – minimize spending, then allocate the savings that results from that!
1. Retirement accounts maxed for each of us. I plan to front-load mine to the first half of the year, and T’s will be spread throughout the year evenly. There isn’t a real reason behind this strategy, but it is what I did last year and I liked it.
2. Mortgage prepayment of ~$30k. This is a little more than 2016, but it seems to be the right thing to do. Owning a home in a super expensive market drives this choice. We have been doing our best to mitigate that now so that we’ll have flexibility to afford kids here in the future. We’ve talked about other options, but it is pretty unlikely we’d leave T’s job.
3. General increase in cash/liquid reserves of $20k. Some of this might be allocated to a home maintenance fund (we’ll need an expensive roof at some point in the next decade), the rest will go to general long term savings / cash reserves. My targeted savings fund for when we may have a kid in the future is already nominally funded to cover unpaid time off, although I should double check my calculations. It also would be a good idea to optimize my strategy for where we hold the cash.
4. Split any remaining savings 50/50 between mortgage and cash savings. The amount in this bucket will depend on what our overall spending turns out to be. I want to set a spending goal of $90k, but our plans (travel, home projects) aren’t firm enough to know if that is achievable. I’m thinking I’ll have another $10k, but it could be more or less.