If you’re reading this, the chances are you are working towards your own financial goals for the year, or at least are considering what they may be. Me too. I have a couple of obvious ones, but I feel like I need a target for my general emergency savings fund.
My current financial wishlist looks something like this…
- Car Insurance: Save £800 by June. I like to pay my car insurance upfront as I get a discount, and I try to keep my monthly outgoings as low as possible. I’m hoping to buy a new car in the next 6 months (see below), which will be insured in my name with OH as a named driver, and he will take out his own policy on our current car. He only just passed his driving test last year and has been on my policy since then, so it’ll be an opportunity to start building his no claims bonus. £800 will more than cover my half of both policies.
- New car: Save £1000 by July. This is to supplement a fund I already have set aside. I love my car, but it’s pretty old and has been quite unreliable lately. As I was stranded at the side of a motorway at 2am a couple of months back, after which my repair bill totalled about twice what the car is worth, I decided it was time to upgrade. So that was swiftly bumped up the list of priorities!
- Emergency fund: Contribute £1000 by the end of the year. In an ideal world, this would be more, but I’m almost at the point where a new car IS an emergency!
- Mortgage Overpayments: Pay an additional £1000 off my mortgage by the end of the year. Again, this really isn’t anywhere near as high as I would like, but the fund I am supplementing for the new car is mostly taken from my mortgage O/P pot! I already pay an additional £110 per month on top of my minimum payment, so my total overpayment will still be over £2k
I’d like to set up a stocks and shares ISA soonish, but that may be on the hit list for next year, once some of my more immediate targets are out of the way. I have just increased my contribution to my workplace pension today when feeling motivated after reading some of Ms. Financier’s posts, specifically this one. So I should probably focus on one thing at a time!
Also, since I began drafting this piece, I am reconsidering my mortgage overpayments. While I do already make a regular overpayment of over £100 per month, the plan had been to pay off as much in lump sums at the end of each year as possible. Now, however, I’m wondering if keeping this money in savings is a better option. Ideally, in probably 4-5 years, I would like to buy a bigger property, but I have never wanted to sell my current apartment! I’d much prefer to be able to keep it and rent it out. So my thoughts are, if I pay off this cash from my mortgage, when it comes to buying again, I will have a smaller mortgage, but less cash saved for the upfront deposit on a new house. I imagine through remortgaging etc, this would probably become a non issue, so if anyone has any advice on this, it will fall upon open ears! This is not an area I consider myself an expert!
So, I know where I want to be, I’m just not so sure how I’m going to get there yet…These won’t be easy to stick to, especially the car targets, as they are due in June so that means I really need to get my arse in gear like, now, for those to work out!
I’d love to hear about your own financial goals for the year, anyone saving for anything big, first home? Wedding? Dream Holiday?