unforeseen events- and 2011 is starting off with a lot of unknowns. I last updated you in October right after Daniel started a new job. Shortly after that he was laid off, and he is again searching for a job. Even though we are unsure of our exact income, we have set several savings goals to start off the year.
2010- Learning From History
Before we set our new goals for this year, we reviewed our spending and saving habits in 2010. It is always interesting to me to see how fast those small expenses add up!
First we evaluated our expenses and made a budget for 2011 based on how much we spent in 2010. We chose to eliminate several expenses, and highlighted a few areas where we could cut back when things get tight.
Second we reviewed how we did on savings. We learned a lot this year about how to save more effectively. We began the year with one lump "savings" We now have our savings divided into separate accounts for each of our savings goals. We learned to put a name on every dollar, and save for all upcoming expenses.
We were happy to see that we saved 43% of our income in 2010. We also recognized that we will be loosing a lot of that income once our baby is born sometime in January. I will be a stay-at-home mother. Our goal is for me to find a few ways to earn a little income from home that will help us put a little more into savings.
Our savings goals encourage us to use our money wisely. We recently began using Mint.com to track our budget & goal progress. I highly recommend Mint to anyone who is looking for help on setting and keeping to a budget.
2011- Setting Goals
Because of our unknown income, we are starting off the year with a few basic savings goals. I will be updating you on our progress at the end of each month.
We have a little saved for health care. With a new baby, we are sure we will need a little more put aside. We will be saving a little each month to help cover any doctors visits and medical expenses.
Second Vehicle- 0%
We have decided that it would be nice to have a second vehicle. We will begin saving towards that.
We continue to save towards Daniel's further education. We have made a new savings goal for this year and will keep you updated on our progress!
For Daniel and I, setting goals gives us direction and helps keep us motivated and focused. We are excited to see what the New Year will bring to us. Good luck on your goal setting!