Debt $ense

I realized that after posting about setting my specific, detailed financial goals in my Latte Factor post, I probably should actually, you know, post them. I am glad I waited, though, because my first goal has changed after talking with my CC company this morning. Here they are:

1. I will pay off my credit card by January 31, 2007.

2. I will continue my 6 percent contributions to my 401(k). In February 2007, I will increase my contribution to 12 percent, and continue to increase it by 1 percent each month until I hit the limit of 20 percent in October 2007. I will continue that 20 percent contribution until I retire.

3. Beginning in April 2007, I will put $175 a week into a high-yield savings account designated to replace my car so I can pay cash for a used Hyundai Tucson in December 2008.

4. On July 1, 2008, I will open a Roth IRA and contribute $200 a month. Each year I will increase that monthly payment by $50 until I max out my annual contribution. I will then contribute the maximum each year until I retire.

5. In December 2007, I will put $200 a month into a high-yield savings account for a house fund. By May 28, 2010, I will put at least 20 percent down on a house in the city with at least three bedrooms, a yard small enough for a push mower, a master bathroom with room to expand for a whirlpool tub in the future and hardwood floors.

6. In May 2007, I will start putting $25 a week into a travel fund for trips with friends. For my 30th birthday, I will use that money to spend two weeks riding trains around North America and meeting interesting people.

I will revist these goals on July 1, when some work-related things have shaken out, and every six months thereafter to make sure they still align with my situation and goals.