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Our Two Large Financial Goals for 2023

December 12, 2022 By MelissaB Leave a Comment

Our Two Large Financial Goals for 2023

I’m a goal-setter. If I don’t set goals, I meander through life, often wasting time and money. Goal setting gives me direction and purpose. I have an objective to work toward, and since I dislike not achieving my goals, I work hard. My husband and I recently sat down to discuss our plans for next year, and we settled on two large financial goals for 2023.

We’re in a Good Financial Place Going Into 2023

Thankfully, we’re in a good financial place going into 2023. We have paid off all our debts in the last few years, except for my husband’s student loans and our house. We’re not paying anything on the student loans until the pandemic pause ends.

Since we’re not focused on getting out of debt, we can focus on enjoying life and strengthening our financial position.

Our Two Large Financial Goals for 2023

This year’s goals are ones we’ve never tackled throughout our 20-plus-year marriage.

Save/Plan for Domestic and International Travel

My husband and I love to travel, but we’ve struggled with low-paying jobs and raising kids while paying off debt for most of our marriage. Now, we’re more secure financially, the kids are older, and the debts paid off. So we’ve decided to prioritize travel while we’re still young enough to enjoy it.

Take a Trip to Maine

Two Large Financial Goals for 2023

I have wanted to go to Maine since I was a teenager. The closest I got was Vermont. However, since our recent move to New York, we’re only eight hours away. Our goal this year is to travel to Maine for a vacation.

Save for a Trip to a European Country

We would also like to travel internationally. I have had the privilege of traveling to Canada, Ireland, China, Japan, and Switzerland. However, we haven’t traveled internationally for 20 years! So, it’s time to get back at it.

While we do plan to save for travel, we also plan to research travel hacking so we can go sooner than if we relied on savings alone.

Buy a New Car for (Mostly) Cash

We bought our Toyota Sienna 18 years ago. We financed almost the entire thing and paid it off in 4.5 years. We’re still driving that car, though, as you can imagine, we should replace it soon. (It currently has 238,000 miles on it.)

We bought my husband’s 2013 Subaru Outback used and again financed almost the entire thing. We paid it off in five years. It currently has 113,000 miles on it.

For the last few years, we’ve been saving to pay cash for a replacement for the Toyota Sienna. We currently have $20,000 saved. The goal is to buy the car with cash and, if necessary, a loan for no more than $10,000. If we can achieve this, it will be a huge financial victory because we’ve never been able to mostly pay for our vehicle in cash. Now, we need to decide what car we want.

Final Thoughts

Having financial goals, especially large financial goals for 2023 motivates us to stay on track financially. We tend to want to fund the goals instead of wasting money on small, unimportant items.

What are your financial goals for 2023?

Read More

Why Buying a Toyota Sienna Was One of Our Best Decisions

Why We Have a Costco Card Even Though There Isn’t a Costco Nearby

Our Favorite Small Ways to Save Money

MelissaB
MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.

www.momsplans.com/

Filed Under: Married Money Tagged With: 2023 goals, car payment, financial goals, goals, new car, travel

Why You Should Have Both a Checking and Savings Account

March 19, 2020 By MelissaB Leave a Comment

In the interest of financial simplicity, you may think it would be easier to consolidate your money into one checking account.  After all, having a standard savings account seems to have gone the way of the dinosaur since most banks pay no or very little interest on principal.  Yet, there are some good reasons why you should have both a checking and a savings account:

Why You Should Have Both a Checking and Savings Account

The Differences Between Checking and Savings Account

Each Account Has a Different Use

For most people, keeping their money in two accounts based on uses and goals make sense, especially for people with little financial restraint.

Checking Account

Each account has a different use.  A checking account is meant to be used for regular, monthly expenses.  You can pay via check, debit card, or automatic withdrawal.  You can get the money out via ATM or walk-in at the bank.  Most people find a checking account necessary, even if they do typically use their credit card for most purchases.

Savings Account

A savings account is used to store your money that you’re saving for long-term goals such as a full-funded emergency fund, a new car, a down payment on a house, or whatever other savings goal you have.  Most of these accounts do not pay interest, or if they do, they pay a low interest amount, but some do offer more interest if you have a high savings account balance.

Each Account Has Different Rules

Saving accounts may have a limit on the amount of withdrawals you can make.  Typically six withdrawals a month are allowed.

Why You Should Have Both a Checking and Savings Account

As mentioned above, there are significant differences between checking and savings accounts.  Having both allows you more financial freedom and helps you meet your financial goals.

More Financial Restraint

If you struggle with financial restraint, having both a checking and savings account is imperative.

Can’t Fool Yourself

Some people with just a checking account must also put their money they are saving for larger purchases in the checking account.  This can create a false sense of security because it looks like they have more money available than they do.  For instance, if they have $2,050 in their checking, but of that, $2,000 is saved for an emergency fund, they really only have $50 currently available to spend.  However, because they looking at the checking account balance and see $2,050, they feel comfortable spending more than they should.

Limited Access to Savings

Why You Should Have Both a Checking and Savings Account
Photo by Verygoodlord on Unsplash

An ATM card can make it so easy to access your cash, even if you don’t make it to the bank during normal banking hours.  However, you may not have access to your savings account with an ATM card, which means you have to show a bit more restraint.  Not having immediate access to the money during off hours or when you’re not nearby the bank can curb impulse buys, improving your financial situation.  Plus, most savings accounts only give you a limited number of transactions, so you can’t as freely withdraw your money as you can with a checking account.

Automatically Put Money in Savings

Most people have their paycheck automatically deposited to their checking account.  However, if you’re saving for some goal, you can go to your business’ payroll office and fill out a form for part of your paycheck to be deposited in your savings account.

Why You Should Have Both a Checking and Savings Account
Photo by Jakob Owens on Unsplash

Let’s say you’re slowly saving for a new car and want to put $150 a month for that goal in your savings account.  If you depend on yourself to move the money from checking to savings, you might not.  After all, there are always other things vying for that money.   However, if you went to payroll and filled out the necessary forms, $150 will automatically go into your savings every paycheck.  By having two accounts and setting up automatic deposit to savings, you take yourself and self-discipline out of the equation, making it easier to save.

Protect Your Money in the Event of Theft

If you put all of your money in your checking account, you could open yourself up to serious financial difficulties if a thief accesses your account electronically through your debit card.  The thief would be able to empty your checking account, and while you’ll usually get the money back, it can take several days, unlike credit card companies which usually return your money immediately.

While you’re waiting for your hard-earned money to be returned, you may inadvertently bounce checks if you have outstanding payments that haven’t cleared your account before the thief stole your money.

In addition, how will you pay your bills and daily living expenses in the interim?  If you still had a savings account, you could use that money to pay your regular expenses, but if all the money is in one checking account, you would have access to none of your money until the bank refunds what was stolen.

Caveat: Try to Find a Savings Account That Does Pay Interest

While you may want to chuck the savings account because you’re earning very little in interest, maybe it is just time to go savings account shopping and find a bank that pays more interest.  A family friend, Jackie, has her savings at a local credit union, and she earns nearly 2% interest.  Depending on how much you have stashed in your savings, that can add up.  Jackie earns nearly $100 in interest every month, and she earmarks the interest payment to save for a new car.  Every year, she is putting $1,200 away for a new car, and it costs her nothing because it’s all interest.  In addition, as she keeps the interest in the account, it makes her account balance grow, and she earns even more interest.

If you’re thinking of ditching your savings account in favor of a checking account only, take a moment to reconsider.  You’re financially more secure with both accounts.  Maybe instead you should shop around for a savings account that pays more interest.

What is your preference?  Do you prefer to keep money for your medium and long-term goals in a savings account, or do you prefer to keep it all together in your checking account?  What other reasons would you give to encourage people to maintain both accounts, or would you instead argue that people just need a checking account?

 

MelissaB
MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.

www.momsplans.com/

Filed Under: General Finance, Saving Tagged With: checking account, financial goals, savings account

Beating Broke Rules: Dedication

March 25, 2009 By Shane Ede 1 Comment

You can’t turn a corner, enter a bookstore, listen to radio, read a blog, or watch sports without hearing the word dedication several times.  We all talk about dedication in one shape or another.  And in truth, many of us still lack it.

Beating Broke Rule: Get Dedicated

Get dedicated to your goals.  Get dedicated to your new life being free from debt.  Get dedicated to saving for your retirement.  Get dedicated to saving for a house.  A new car.  A ring.  Just get dedicated.

Dedication to your goals is the only thing that will ensure that you can fulfill them.  If you aren’t dedicated to them, you won’t follow through.  If you aren’t dedicated, you won’t meet your goals.  Without dedication, you will fail.

Make the choice today.  Dedicate yourself to your goals and work every day to fulfill them.  Take a step now to reach your goals.  You’ll reach them before you know it.

Shane Ede

I started this blog to share what I know and what I was learning about personal finance. Along the way I’ve met and found many blogging friends. Please feel free to connect with me on the Beating Broke accounts: Twitter and Facebook.

You can also connect with me personally at Novelnaut, Thatedeguy, Shane Ede, and my personal Twitter.

www.beatingbroke.com

Filed Under: Beating Broke Rules, ShareMe Tagged With: Beating Broke Rules, dedication, financial goals

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