A Financial Five Year Plan


Making a five year plan is a way to make a road map to your financial goals and success. And since I have a few financial goals I hope to be successful at, I thought maybe I should start working on one of these things for myself. 

To be honest, I found it difficult to make a five year plan since our military life has as bouncing around the country. It also doesn't help that five years seems like such a long way away. In five years, my daughters will be getting their learner's permits to drive, my son will be a teenager and my husband and I will be in our mid-thirties. Five years doesn't seem like much, but it's almost laughable when I put it into those terms. I can't even imagine my daughters behind the wheel of a car!

It's possible I just don't want to imagine it. But I suppose that's the point, it's going to happen. No matter how absurd I think it may be. 

2012
  • Contribute to two separate Roth IRAs {$4,000 for the year} 
  • Build towards our goal emergency fund {$13,000 total}
  • Fully fund our geek-tastic vacation {$3,000 for the year}  
2013
  • Continue and increase Roth IRA contributions {$4,500 for the year}
  • Continue contributions to emergency fund {$20,000 total}
  • Save for Yosemite camping trip {$1,500 for the year}
  • Partially fund for a European extravaganza by 40% {$4,000 for the year}
2014
  • Continue and increase Roth IRA contributions {$5,500 for the year}
  • Start paying extra toward our mortgage {$5,000 for the year}
  • Save for New York City trip {$3,000 for the year}
  • Partially fund European extravaganza by 30% {$3,000 for the year}
2015
  • Let's go ahead and almost max out each of our Roths {$8,000 for the year}
  • Complete the last 40% of European extravaganza and actually go {4,000 for the year}
  • Continue and increase extra payment to mortgage {$5,500 for the year}
2016
  • We're maxing out both Roths {$10,000 for the year}
  • Save for adventurous Alaskan vacation {$3,000 for the year}
  • Get super ambitious and double the payments on our mortgage {$10,800}
 
Obviously, this is just a hopeful projection. Anything can change, for better or worse. It's nice to have an idea of where I want our financial situation to head even if things change. 

Other great reads about five year plans:

{photo source}