Doomsday: July 31st, 2011

A recent comment by Jessie (from Jessie’s Money), made me realize that I may not have properly introduced in this blog what my goals are. Actually, it made me realize that I probably haven’t even sat down and THOUGHT about what my goals are and WHY.

Sure, I can say that I want to be out of debt – and have an idealized time line for when this will happen. But I’ve never really sat down in this blog and explained WHY I want these things to happen by certain times or what EXACTLY are my goals.

So, that is the point of this post, to examine my life and what my goals for the immediate (2 year) future are.

By January 1st, 2010

  • Pay off $4,000 worth of debt on my credit card
  • Grow Emergency Fund to $1,200
  • Pay off all other consumer debt

By January 1st, 2011

  • Pay off $12,000 worth of credit card debt
  • Grow emergency fund to $2,400

By August 1st, 2011

  • Be credit card debt free
  • Have emergency fund of $3,000

So WHY am I so fixated on the next 2 years?

My job is guaranteed until July 31st, 2011. My salary is SET during this time and I WILL HAVE a job. There is _NO_ possibility that I will be fired during  this time because I am under contract both my the state I live in (through the University that I work for) and by the federal government (who pays my salary) to have this job. The money has already been given to my University to pay my salary for the next two years (including a raise next July, woot, woot!), so I don’t have to worry about job loss during this time.

However… after July 31st 2011, my future is completely uncertain. I could have a job lined up being a professor somewhere making tons of fat professor-cash. I could be stuck here in my current position making the same amount of money that I do now. Or I could be out on the street fending for myself for a few months with no job prospects.

My future after July 31st, 2011 is completely uncertain. However, my financial future UNTIL then is pretty set in stone when it comes to my day-job.

Thus, rather than just let everything ride until July 31st, 2011 and HOPING for the best (much like I did when I was in graduate school, which was by the way a HUGE mistake). I’m trying to get my financial house in order.

The goal of a $3,000 Emergency Fund allows me the freedom to be able to relocate if I need to (It cost me about this much to move from San Diego to the widwest a year and a half ago). The lack of credit card debt will allow me the financial freedom to start going full throttle on paying off my student loans, contributing to my retirement plans (I currently get 10% of my salary in retirement paid for me by my employer), getting an IRA set up, and being able to start in a financially STABLE place when I begin again in two years.

So those are my 2-year goals and the reasons I have for them. I want to make sure that if the worst happens after July 31st, 2011 – that I’m prepared for it!

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2 Responses to Doomsday: July 31st, 2011

  1. Jessie says:

    wow, that sounds great! It sounds like your motivated enough to get there too!

    I love having the goals written down, even if you change them later on – it gives focus to what you are trying to achieve.

  2. Pingback: “The Talk” «

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