What gets measured gets managed- and that is exactly what we are trying to do. Here we define our goals so that we know what we are reaching for. I will post regular updates on the goals probably every quarter. It might be a tall mountain to climb like the one above, but we will get there in the end.
This is like watching the first flowers bloom on a plant you have been tending to for years. Yup, that is exactly how this feels like.
We are a few thousands short of equating our home loan and believe me the feeling is as good as any financial feeling can be. The fact that we can easily take care of our loan with less than half of either one of our paychecks is amazing.We met this target in May and that means no more EMIs from now on the elated feeling is now a constant urge to invest somewhere.
I guess the feeling will be matched when we hit any one of our future goals like maybe hitting a crore some day on our portfolio. We can right now only hope for it though we know (and are backed by solid mathematics) we will see the comfortable warmth of a substantial cushion before most people hit retirement.
This is perhaps the best time to make new short term goals. But before that some info: we have a few things in our basket right now including going back to school, potentially becoming parents one day (sooner or later depending on what happens with school) and other surprises we encounter on the way.
We are also considering how wise it would be to invest in another house in case we have to spend half of the future decade in the city we are in. Rents are expensive and I don’t think they are going to go down anytime soon. But today let’s make a few goals which will stay the same irrespective of what happens as long as we keep on working.
Goal 1: get our monthly spending down to 14000/- without rent.
This might be one of the more realistic goals we have right now. We were able to cut down our spending habits a ton last month and I really hope to make this a new average by the year end. Then we can work on getting it even lower.
June16 June update:We are at 15K still and I can quote a lot of expenses that were one off. Hopefully we will get to this in next 2 months
Goal 2: Save at least 60K a month including our insurances
We already spend around 8k per month on insurance products which we bought before we were financially literate. Right now I am really unhappy with our portfolio and the truth is none of these would cover even one year’s income if either one of us passed away (more on that later). This would allow us to create a substantial amount of corpus in coming year or two which should be enough to tide us over for a year or two if one of us has to go out of commission.
Target Date: Dec 16
Goal 3: Invest in a good term insurance
We are both 30 years old and a good term insurance covering us for 1 cr each costs less than Rs. 25 a day. This would definitely put my mind at ease and also cover us for some critical illnesses for around 50-60% of that amount. I am currently researching various options and should have a decision in a few months.
June16 June update:I am still researching on this and hope to have a definite answer to whether we need it or not in a few months.
Goal 4: Travel More
We love travel and those who know us would say we travel way more than anyone who holds a job should, but for last few months that has gone. We are travelling again this month but the uncertainties I talked about earlier have been holding us back. Hopefully we will be able to travel more in the months to come.
June update: No travel plans for near future after we scrapped our SE Asia trip due to fund and family issues.