Friday, September 18, 2009

My Financial Philosophy

I just put a letter in the mail related to bills for what I hope is the last time in my life.

Our standard monthly expenses are:
  • Gas - $10-20 - Atmos - Automatic withdrawal
  • Internet - $25 - AT&T DSL - Automatic withdrawal
  • Electricity - $80-150 - Champion Energy Services (whom I recommend highly-- we went from $0.16/kWh to $0.09/kWh. I have highlighted kWhs in the past.) - Automatic withdrawal
  • Water/Sewer - $25-35 - City of Farmers Branch - Automatic withdrawal
  • Mortgage principle, interest, taxes and insurance - $828.58 - Automatic withdrawal
  • Car insurance - $119.33 - Travelers Insurance - Automatic withdrawal
 I never have to think about any of my bills. How great is that? Now that those are out of the way, here are my goals for our finances:
  1. Keep $1000-$2000 minimum in checking at all times, so we're not blindsided by any payments coming out. (check!)
  2. Keep 6 months expenses in savings (we are at about 5 months since we were paying off the second mortgage)
  3. Invest ~15% of income automatically, probably into index funds Roth IRAs.
  4. Have a bit of fun with money. We'll be putting a few thousand into home improvement in the next year or so.
  5. Put remainder of income into the mortgage until payoff (approximately 4 years)
  6. After mortgage payoff, bump up investments to 20% or so
  7. Begin automatic college savings, probably around 10% of income
  8. Replenish emergency fund as needed
  9. Give money away. Never think about money ever again. Move on to better things.
 What's your plan?


Justin Pocta said...

1. Wing it!
2. See step 1.

haha, actually, i'll probably review your list. i like lists of goals, probably vital for accomplishing long term goals. i'd looove to do auto-payments.

Cara said...

I like all of the things on your money list, but #9 is my favorite. The thing with #9, though, is that you have to go through 1-8 to get there. Give or take some steps based on where you are in life. Right now my plan is:

1) Save 10%
2) Give 10%
3) Work 10% harder.

I don't know much about investments.