In May I posted a five-month update on my 2012 goals. I’ll be honest: I haven’t revisited my yearly goals since that update, so I’m a little nervous about how this year-end review will look.
There are still a couple of days left in 2012, but I’m not expecting to make major progress on any goals in the final days. I plan to publish a separate 2012 blog review soon, so look out for that.
Overall, 2012 was a great year and a lot changed in my life. I took several memorable trips—Kauai, Las Vegas, St. Thomas, and St. John. I really love traveling, and these were some of my favorites.
We also made significant financial progress. My extra income increased considerably, and we cut out expenses we didn’t need. As a result, our monthly expenses and debt payments are now around 30% of our take-home pay, which is a major improvement from where we were when I started this blog about a year and a half ago.
My side income has reached a level where I could potentially live off it, but the lack of stability makes me hesitant to leave my job. I enjoy my work and plan to keep it for now. I’ll write a more detailed post about this soon. If you’ve transitioned to self-employment, what motivated your switch and would you return to a traditional job?
I’ve gained clarity on many parts of my life, and thanks to your support, I realized I needed to start living more intentionally. My sister moved into my house this year, and I’ve loved having her around more.
This year brought more personal milestones too: I was asked to be a bridesmaid in two friends’ weddings, and I got engaged—both friends will be part of my wedding party. So 2013 will be full of wedding planning. If you follow my personal Pinterest, I apologize in advance for the many wedding-related pins.
2012 Goals and Results
- Get toned. Fail. I canceled my gym membership to save money. We’re considering buying some home gym equipment—any suggestions or experiences with treadmills and other gear would be welcome. I’ve seen treadmills advertised around $500; not sure whether that’s a good value or too cheap.
- Have a great year at work. Pass. Work was excellent this year—I love my job and the opportunities it brings.
- Complete my MBA. Pass. I finished my Finance MBA in August 2012.
- Pay off my car by March 2012. Pass. We paid off our original car loan. We did take a new loan for a Jeep because the interest rate was unusually low, and we preferred to invest our cash rather than pay cash for the vehicle.
- Reduce student loans to $20,000. Pass. I’ve been following a $38,000 loan payoff plan and have made solid progress.
- Save about $4,500 for vacations. Pass. We took several great trips this year as noted above.
- Earn $10,000 in side income. Pass. This goal was well exceeded. I’ve been sharing monthly extra income reports and have made roughly $23,000 from side jobs in 2012. At the beginning of the year, I thought this level of extra income was unlikely, so it’s been an encouraging surprise.
- Grow my blog. Pass. The progress since May has been remarkable, and I’ll publish a full blog review soon.
- Volunteer twice a month. Fail. I didn’t manage to volunteer regularly this year.
- Increase net worth to $85,000. Status unclear. I started the year with a positive net worth around $70,000 and have improved since then. I’ll publish a net worth update for 2013 shortly.
- Keep track of my goals. Fail. I’m not great at consistent goal tracking—I haven’t reviewed these goals since May.
Five-Year Plan (summary)
- Pay off student loans completely. On track. I expect the loans to be fully paid by March or April.
Start aggressively paying off the mortgage.This is on hold for now. We plan to buy a new house in 2014 and would rather save for a larger down payment than accelerate payments on our current mortgage.Add a bathroom to the basement.Put on hold pending the move plans.Add a bar area to the basement.Also on hold for the same reasons.- Save aggressively for a down payment. We want to move to a house with a bigger yard and plan to save as much as possible—ideally paying 30% to 50% of the new home’s value up front.
Have our house 50%–75% paid off.- Buy a new house and aim to put roughly 50% down.
- Get married. We hope to marry in May 2014. We considered an earlier date, but waiting 1.5 years works better for our plans.
- Take a month-long vacation. We’re considering a long honeymoon—three weeks or so—and are excited to plan a destination and itinerary.
- Go on a long hiking trip. This remains a high-priority personal goal; I’d love to tackle something more adventurous in the coming years.
- Start thinking about children eventually. This is new to the list. We’ll be about 28 in five years and are considering starting a family around age 30. No immediate plans—no baby posts for now.