Over the past few years, I’ve been running my personal finances without identifying any clear goals or metrics for success. I’ve been fairly diligent financially over the past few years, achieving a ~25% savings rate. According to most personal finance articles, that would mean that I’m doing quite well. However, it is important to me that I feel that I’m getting good value for my money and I want to get more structured around my financial goals.
2016 financial achievements:
- Increased income by 32% – I grew my total employment income from $72,000 in 2015 to $97,000 in 2016 through two raises (including one promotion)
- Grew my net worth by 57% – My net worth increased from $80,000 to $125,000 through a combination of savings throughout the year and market gains from existing investments
2017 financial goals:
- Increase income by another 30% – This is extremely ambitious (and borderline unlikely) but I have been performing strongly at work and getting a lot of positive recognition. I’m up for another promotion this year and expect my compensation to go up by another ~15% this year at the very least
- Save 50% of whatever increase in compensation I receive – I want to up my savings rate further and begin to invest outside of my retirement accounts (I already max out my 401k and my Roth IRA)
- Grow net worth to $175,000 – Continue to save aggressively and hope for modest growth in existing stocks