It’s that time of the year again, when pf bloggers set out SMART financial goals and then resolutely check them off one by one as the year goes by.
I have an idea of what I’d like to accomplish, but they all mostly depend on this economy of ours, which is to say that it’s fairly difficult to come up with good, solid goals when the future is so unpredictable.
But here, assuming all goes well (i.e. I stay healthy and gainfully employed at around my current salary), I have six (relatively?) simple goals for 2009:
1. Max out Roth IRA: $5,000 – this will mark the fourth year of maximum contribution. Going to do this in January/February.
2. Contribute to 401(k): $5,000 – 2009 limits have been raised to $16,500, but there’s pretty much no way I can max out my 401(k). If I can get to $5,000, I’ll be very happy.
3. Retake the GMAT – my first score was serviceable but not ideal. I want to do better. This means hitting the books harder and smarter than I did before.
4. Apply to 6-7 graduate schools – this will involve lots of school visits and applications. I am hoping that I can take all the application fees out of regular paychecks, and not my Freedom Fund.
5. Run a 5K race – I’m so out of shape that if there is an organized run that’s less than 5K, I’d do that one instead. Are there 1K runs?
6. Go on a trip with CB – This would be so fun if we can make it happen. I’d like to do a weeklong vacation.
As you can see, my saving / investing goals aren’t that ambitious next year. I feel a little hesitant stating that “I will save $20,000+” when everything is so up in the air. Goals #3, #4 , and #5 depend less on the job situation.
Someone I know was recently laid off. From a Big Four accounting firm. When the accountants start cutting, you know we are in trouble.
Is anyone else finding it difficult to define goals in such uncertain times?
I am yeah, most of my goals for next year will be money-oriented, but at the moment I’m unable to save, I’m literally living from paycheque to paycheque. I’m hoping for a better job soon (the one I’m doing was only meant to be a temporary measure but then the recession got in the way!) but I can’t make any hard and fast plans until I do.
Difficulty, check. Plus, we are getting married and have to sort out the extent to which we’ll be combining accounts and how exactly that will work, AND I’m looking at a job change (and attendant salary change) part way through the year… yup, it’s tough to make plans.
you don’t think you could save the 20,000+ once your freedom fund is full?
I assumed the things will go as planned (meaning, no layoff). But I have too many other question marks to know exactly what numbers to fill in. I think I was a little conservative.
Definitely. With the recent news, my attention is 85% focused on securing new employment, not setting goals. I’d like to set some, but it’s still vaguely along the lines of “keep saving and try not to spend ’cause you’ll be unemployed soon.”
Maybe it would help if you structure your goals along 2-3 scenarios:
(1) Status Quo – keep your job, keep saving. I wouldn’t, however, budget expecting even a 3% raise.
(2) Job Loss – lose your job, find a new one within 3-4 months. How would you adjust your expenses? What could you get from unemployment benefits? Where would you find a new job? What skills do you need to work on now to help you get that job, which you can obtain while you’ve still got your current job?
(3) Industry Armageddon – e.g., nobody in your industry is hiring. Now where do you seek employment?
(4) Opportunities – e.g., someone at your company leaves a vacancy that could be a big promotion for you. What can you do to build your visibility where you are to make your case should any sweet opportunities come open? My industry is contracting and my company is laying people off…however, my VP just lost 2 directors and a senior manager within the span of 3 weeks. We’re underwater with merger integration issues. I’ve got the functional expertise to help. I’m just waiting for the right opening to push for a serious promotion.
Not to be a downer but remember that when the economy sucks applications to grad school rise. And they’ve actually been rising the last few years because even though the larger picture of the economy wasn’t quite the way it is now I just read an article about how 75% of recent graduates from college are having trouble finding real jobs (which is 10% higher than the 25+ young adult category, so it’s really hit hard in the past 2ish years). So GMATs are great to take because (I believe) the scores last 5 years so you know you’ve got time to apply but I think that waiting may be something to consider while you’re on the lookout for grad school. Also more people in grad school means there will be more coming out looking for jobs in approx 2-4 years when they’ll all be graduating… sortof creates a lousy job market (at least for people looking), you know?
I should probably also have goals for next year but honestly at this point I feel like if I can stay financially stable, keep my job (with an expected raise) and on top of my school work that will be accomplishment enough for me.
Those are good financial goals. Good Luck!
I’ve been contemplating opening a Roth IRA for several years and I think 2009 will finally be the year I do!
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My goal for 2009 would be to get myself a good vacation placement so that I have some work experience to write on my CV. I think money is less important than CV points when considering summer placement. A latest oxbridge survey also revealed similar result when grads were asked Vacation Work: Earnings or Job experience? http://www.topemployers.co.uk/oxbridge-students-graduate-jobs-survey-08-page8.html It will be a big bonus if I can find a placement in the career I’m interested in.
Wish me luck 😉