Goal Schedule circa 2014

After much internal debate, I think I’ve finally figured out my 2014 financial goal schedule based on how much I prioritize each thing.

My first goal is to pay off the remainder of my smaller loan.  I have about $2,500 left on this one, so it’s definitely doable in the next 2-3 months.  I’m prioritizing this goal as number one for a couple reasons.  I really hate being in debt.  Realistically, I can get this out of the way pretty quickly and then move on to bigger and better things.  I also find it annoying to be paying to two lenders, so eliminating one completely would be awesome as well.

Second, I’m going to focus on maxing out my Roth IRA.  Since the maximum contribution this year is $5,500, this will definitely take me into the summer, possibly into the fall.  This is a high priority for me because of the amount I’ll gain between 2014 and retirement.  Assuming this money earns 8% annually, that’s more than $130,000 earned by the time I turn 65.  While putting this money toward loans could save me a couple thousand dollars in interest over the long run.  I’ll gladly take a $2,000 hit for that $130,000 later.  Until Goal 1 is completed I will still be automatically contributing $200/month.

Then (third) my focus will be on building up my e-fund.  I can always take that money and put it toward my loans later, but I definitely won’t be able to get it back once I send it off to the lender.  Additionally I have $5,000 in a CD due in July.  I have decided that when it’s up, I’m going to use that money to finish out my Roth and my e-fund.  I’m not really earning enough in the CD to justify not putting it toward loans or other financial priorities.

My fourth and fifth financial goals are to contribute $3,000 to my 401K and $4,000 to my larger loan.  My 401K contribution is automatically taken out of my paycheck, so I really shouldn’t even have to think about that.  I have 6% of my pay taken (>$3,000) every check and my company will match 50% of that.  How rad!

As for my larger loan, this is the lowest priority.  While I am aiming to contribute $4,000 to it this year, about $3,000 will be required in minimum payments.  Most likely, my Christmas bonus or gift money will end up making up the difference.

Do you lay out a schedule for your financial goals?  How do you decide to prioritize your money?