I wrote this post yesterday, and when I went to submit, the site had eaten my post, and I could not get it back. Oh well. This will probably be a shorter version than what I originally wrote lol.
Key: Goal - timing. Context
Financial Goals (in order of priority):
1. Pay off 401k Loan #1 - mid January. The balance on this loan is just under $1500, and will be paid off with part of the tuition reimbursement payment I am receiving on my next payroll. It will likely take a payroll period or two before the system and payroll all agree, and I may have to make a few additional payments while it all catches up. That $1500 also does not include the payment from my 12/31 check which has not posted yet.
2. Increase 401k contribution to 15% - as soon as the loan payment from item 1 is no longer being deducted from my paycheck. This is a big increase - I am currently contributing 10%. At my current salary, I would need to do 18% to max, but that is not possible just yet. I will likely not increase the percentage any higher anyway....between my merit raise this spring and hopefully another promotion later this year or early next, the salary increases will get me there at 15%. I may even have to reduce the % to not go over.
3. Refinance mortgage - initiate the process around March. My mortgage balance is currently around $147k, and the appraisal amount from when I purchased just over 2 years ago was $199k. This means that with zero appreciation, I have equity here. I am hoping for at least 10% appreciation, which would mean valuation at $220k, but higher is really not crazy in my market. I would like to take out as much as I can to be at or under 80% LTV, and will use those funds to pay off some much higher interest debt (see items 4 and 7). Since I will almost certainly get a lower interest rate (currently at 5%), my payment could potentially stay the same, or just go up slightly. I will be resetting my mortgage back to 30 years, but I don't plan to stay here for more than another 2-3 years at the most, and would be resetting to a 30 year at that point anyway.
4. Pay off NCA loan - as soon as refinance closes. This is the personal loan I took out last August that the remaining balances from my debt consolidation were transferred to. The interest rate is abominable, and the total of the monthly payment plus the extra I pay is quite high (higher than my mortgage!) While it's just moving debt around, it mathematically makes sense, and frees up a ton of cash flow to attack other debt. The balance is currently just under $18k.
5. Pay off 401k Loan #2 - end of May? This balance is currently around $4400, again not yet reflecting the payment from my 12/31 check. I will be putting a big chunk from the upcoming tuition reimbursement to this one (basically the difference between Loan #1 balance at time of payoff and total payment which is $2625), between that and the scheduled payments between now and then, this should in a place where it can be fully paid off with tuition reimbursement from the spring semester.
6. Pay main credit card down to 50% utilization - EOY. This should be quite doable once my cash flow is eased up - I can redirect those payments here, and also start plumping up sinking funds etc so I don't rely on the credit card as much.
7. Pay off private student loan - stretch goal, would be as soon as refinance closes. Basically, if I am able to take out enough from the refinance to pay off the other loan AND this one, I will pay both off. If I am not able to pay this off, I will continue paying it down monthly, with the goal to have it paid off prior to graduating in 2023.
8. Pay main credit down completely - stretch goal, EOY. I know I can likely get a bit farther with this card than item 6, but am hesitant to commit to paying it off completely, since there's a lot going on this year. But putting it as a stretch goal keeps it on my radar.
No priority assigned - these "goals" have either been completed already, or are guaranteed to be completed when the time comes so they do not have a priority. I still think there is power in putting them down on paper so I can take stock in goals I have accomplished, even if it was easy! a. increase autosave - the day after every pay day, my bank automatically transfers $$ to the savings account I have with them. I ended 2021 with it being $50 per check, and have increased this to $100 per check. b. increase payment to Mom loan - throughout 2021, I paid her $100 per month. I have budgeted in for $200 a month this year. This will get me down to $14k by the end of the year, so I have a lot of work to do on this one, as I would like it paid off before I buy a new home. c. Fund two rounds of major plastic surgery - estimating my OOP cost will be around $30k. This will be funded from 401k loans. I'm not thrilled that this is how I am going to do it but it's the best option based on other factors. Sincerely hoping this is the last time I need to take one of these guys. I'll need to wait and see what the terms will be based on how much I take, do I split it into two loans, etc. But either way, the money is there, and I cannot wait any longer to save the money up in another fashion.
Non-Financial Goals:
1. Get to goal weight - by Jan 30. As of today, I am 1.2 pounds from my goal weight, which is 100 pounds down from my high weight (truth be told, it was probably even a bit higher than that but I was boycotting the scale lol). 1/30 will mark 4 years since my bariatric surgery, and so I think it would be poetic to have reach goal wieght prior to then. My plastic surgeon would liiike me to be a bit lower than that (10-15 pounds), but we will be ok if I am somewhere in between. Once I get to that weight, then I need to figure out how to stay there haha.
2. Complete two rounds of plastic surgery - first round early July, second round mid-December. This is the timeline and the plan for right now, but we've all seen how our friend that starts with C can throw a wrench into anything healthcare related. I decided to add this as a distinct goal, as while I have the financial aspect of it covered, it's still a huge undertaking...about a million doctor's appointments, arranging for two medical leaves from work, tons of paperwork, and oh yeah, actually physically getting through recovery!
3. Stay the course with school - ongoing. If I stick with the plan, I have 10 classes left to take. I will take 3 this spring, 2 in the fall, then repeat that schedule next year before finishing in December 2023. Going back to school has been such a boon for me - I am accomplishing multiple goals with this, and it's important to stay on track. Thankfully, the hardest work has already been done, and it should be smooth sailing from here on out.
4. Work towards my next promotion - ongoing. Not sure what is a realistic timeframe to expect this in - the cycle seems to be two years, BUT I have been working at the next level for a long time, and truthfully that's the level I should have been promoted to last year (but it generally doesn't work that way lol). I am also going to be taking on leading a larger team this year (my direct reports are going from 2 to 8). But on the flip side, I will have two extended medical leaves (2 months and 1 month), so I am not sure if it's realistic to expect this year. Either way I am going to keep working towards it, and when it happens, it happens. The next level should put me in the range of $130k-$140k. I have no plans to leave my company before hitting the next level, as I am counting on tuition reimbursement through the end of my degree to accomplish a lot of things. once I am done with my degree, and have obtained a key certification in my field, then I may test the waters. (Or not, I love my company and am happy here!)
I guess that didn't end up being shorter after all, lol.