2024 will be the year of money! Goals are extremely important for our finances. Without setting goals and tracking progress we will end up in a standstill. Some mistakes I've made along the way helped me grow, but the goal now is to help others not make those same mistakes.
Mistake 1: Setting unrealistic or unattainable goals. I've done this more than I can admit, and so have my friends and families. If you have a goal of paying off your house in one year, but there is 400k left on the mortgage and you make 50k a year, that goal will likely leave you feeling guilty or unsatisfied. A better way to structure this would be "my 2024 goal is to pay off 20k of my mortgage, and find ways to increase my income." This way, you can achieve your goal and it's repeatable. If you achieve this goal and then the following year try and pay off 30k while increasing your income, you're making real progress.
Mistake 2: Setting goals that are too low. This is the opposite of the prior; goals you can accomplish in a short period of time. If you complete your goals for 2024 in the first two months you are not pushing yourself to achieve all that you can!
Let's take a look at my goals for 2024, so I can be transparent with you guys about my current debts, and how I'm attacking them!
Goal 1: I'd like to pay off all of my outstanding car/school/house debt. Now this is a big one, but let me be more specific. Currently I owe $6,505.42 on my car. This is not a lot but it would be excellent to pay off most of it. I may leave it until 2025 because my interest rate is extremely low, but still I'd like it to be close to gone! Secondly I'd like to pay off my school loans. The current balance on those is: $13,105.73. This is my primary goal. This debt does not make me happy in the slight and the interest rates range from 3-5%! This is the high interest rate that I have. Lastly my down payment gift from my parents. This is interest free but I still want it gone! I have $12,500 remaining on this loan.
Goal 2: Find more ways to make money. This one is hard yet easy at the same time. I'm pushing a lot of new ideas around for some side/passive income. If you guys would like more information on what I attempt this year let me know! I'd like to make $2,000 from side jobs this year. I have many in the works but things take time and it is important not to rush it and end up upset with yourself!
Altogether that means I'd like to pay off $32,111.32 and make $2,000 extra. WOW!! That is more than I though it was. This may be quite challenging. In the end we will see how I handle 2024! While paying this off I am also growing my clientele, fixing up my house, paying $100 every month on the principle of my house, and trying to feed myself. This task seems like it's impossible and it may very well be! I'm going to be continuing to try new ways to make money on the side. I'll bring some of that information to you as well if some of you would like to make some extra income!
Thank you for spending this time with me! I hope your 2024 is amazing and that you accomplish your financial goals!
-Spencer K. Dunbar
Soar Financial Counselor