Monday, January 7, 2013

2013 Goals

I made a whole lot of progress in 2012 and now I have a better idea of what I can expect from 2013.  I'm setting some pretty aggressive goals and it'll be tough to hit some of them but setting the bar too low doesn't make it a challenge.

Budgeting goals for 2013:
Average 80% after-tax savings rate
Average less than $1,400 per month in required expenses
Reduce miscellaneous spending by 15% ($96.51)
Reduce restaurant spending by 10% ($128.31)
Reduce grocery spending by 5% ($205.64)

Savings goals for 2013:
Surpass $256,000 for my net worth ($100,000 increase)
Increase emergency fund to 12 months of coverage

Investing goals for 2013:
Receive $2,750 in investment income (dividends, interest, option income)
Forward 12-month dividends at end of 2013 at $3,500
Obtain 3.00% or higher YOC for my brokerage account
Surpass $250,000 in invested assets
Max out Roth IRA's for my wife and I, depending on MAGI for 2013

Personal/Blogging Goals for 2013:
Lose and keep off 20 lbs
Workout 3 x per week
Increase monthly views of blog to 10k by the end of the year
Monetize the blog
Average 2 stock analysis reports per month
Quit smoking (sorry MO owners)
Read at least 1 book a month

What are you aiming for in 2013?


  1. Pursuit,

    You're killing it man. To increase your net worth by $100k in one year would be simply phenomenal. Saving 80% of your net income is equally legendary. That's the kind of savings rate that gets people to financial independence in 5 years. Good stuff!

    I can only wish I could increase my net worth by $100k in one year. Seeing as how I only grossed $65k last year (which was my highest year ever) I won't come anywhere even close to that. I'd be happy with increasing my net worth by about $40k, though. Of course, life happens we'll see.

    Keep up the fantastic work! Really inspiring.

    Best wishes!

    1. DM,

      I really hope I can hit that $100k mark. That would be awesome. 5 years would be amazing to reach FI too. It'll really depend on how much my FI portfolio is spitting off in dividends. But as you mention, life happens fast and can change in an instant.

      A $40k increase on $65k in earnings would still mean a 60% gross savings rate. I think with another $65k year for you, you'll pass that $40k mark.

      Thanks for stopping by!

  2. Man, this is great stuff. In a day & time where most people are "consumed with consumption", it's unique to see someone interested in actually reducing their discretionary spending; it reminds us that we are not bound to always buying the next greatest shiny object that catches our eye. Blessings to you, man.

    Phil @

    1. Phil,

      It's true, so few people are "consumed with consumption". I know people have been shedding debt since the financial crisis hit, but I expect for the majority of people that's going to be a short-term blip, and not a long-term change. Behavior and habits are very hard to change. I was talking last week with a friend of mine, how I don't understand how some people are getting the latest version of the iPhone every time it comes out. That's $600+ a pop at least on a phone, plus you still have to pay for the service so you can use the phone. Plus I'm sure some people are paying the early termination fee as well. Blows my mind some times.

      Thanks for stopping by!

  3. You have set some aggressive goals. Lowering my spending and coming up with a budget is something I need to get on top of. I look forward to watching you exceed all of your goals.

    1. AAI,

      Sometimes it's a pain to keep track of every penny, but if you're looking to shed expenses then I don't know of any better way. My expenses dropped by almost 11% from 2011 to 2012. Most of that is from being able to see where my money was going and what was just being wasted on things that didn't really bring any value. I know I won't get as big of a cut this year, but if it can drop around 5% I'll be happy.

      We'll see if I can hit them all. I only had a 60% rate in 2012, but some of those were easily achievable and I just failed out of laziness. Here's to a great 2013!

  4. Love it! Those are some aggressive goals, but like you said, if you don't set the bar high enough, then it isn't worth doing since it wouldn't be a challenge.

    80% savings rate is also something I am shooting for. It would be amazing to be able to average this for a whole year. Best of luck!

    Adding another 100k to the net worth would really be something. This would be a huge boost and help you get to early FI in no time. I'm trying to reach 225k which would put me at the half way point of my target.

    Keep up the great work!

    1. FI,

      I know my savings rate is highly dependent on my high income, which if I'm as busy as they're saying it's going to be in 2013 then that'll be awesome. Plus if we finish up here in another day or two I could be looking at a bonus of $400 / day up to 5 days. And that's repeatable on every well we drill, I'm hoping we can get all the kinks worked out and start hitting the bonuses pretty regularly. That could potentially be an extra $2k per month from bonuses and would go a long way towards helping the offensive side of reaching FI. The defensive side is pretty much taken care of.

      I was thinking about it, and I guess I actually hit 80%+ in 2012 since they were taking 8% of my after-tax income out for my ESPP purchases. But since I wasn't actually seeing that money in my checking account I had forgotten about it. I'm still aiming for 80%+ savings from the cash that hits my checking account though.

      $225k would be a nice feat. Getting to the halfway mark is quite an accomplishment and it gets easier once you're on the backside of a goal. I really wish I could get into some rental properties like you. I might work an extra year or two if I hit FI much earlier than expected to be able to save up extra money to get some rental properties. Not sure if I'd try and manage them myself, that might be a headache I wouldn't want to deal with. Plus it'd be nice to not have to deal with it but have a check sent to me even though the property management company is taking a cut. My wife and I will cross that bridge when we get there.

      Have a great 2013!

  5. Very aggressive goals and I love it! Although I do currently own Altria I know you'll kick smoking in 2013! If you keep up with a savings rate like that you'll be rich in NO TIME. I look forward to following your progress.

    1. Marvin,

      I just hope that I can blow past these goals, because that would mean that a lot of progress was made.

      Once again, sorry for MO, but it's the best thing in the long run.

      Thanks for stopping by!