We had a super fun year in 2013 with many amazing accomplishments. I honestly can’t think of anything that was a downer for us this year.
I got a new car – an Audi Q5.
I got an amazing new dream job. I feel inspired again and love going to work. I am rewarded and recognized for my hard work and I have the luxury of balancing my personal life with my professional life. It could not be a better situation and I hope to retire from this job. Chris decided to stay home with the kids rather than go back to work and he’s very happy with his decision.
We went to California for vacation. We took a road trip in the new car and saw all of our awesome friends and went to 4 or 5 amusement parks. We were exhausted after coming home! I need to make a post about California!
We celebrated our 10 year wedding anniversary and the kids started kindergarten!
What we accomplished in 2013:
I set out to learn about personal finance, complete a mud run or Warrior Dash, and continue my new lifestyle of eating healthy and exercising regularly. As part of that continuation, I wanted to take a ballet class. So how did it go?
We accomplished most everything on our list for personal finance – most of which were done by using the book Smart Couples Finish Rich:
- Organize our financial records both electronically and hard copy, including: tax returns, retirement accounts, social security statements, investment accounts, savings/checking accounts, mortgage documents, credit card debt, other debt/liabilities (car, student loan, etc.), insurance (home, car, life, medical, etc.), family will/trust, kids’ accounts (college, etc.), and our financial plan. This was a HUGE undertaking and we did the hard copy files but not the electronic files. I’m glad we did this because it made it very easy to talk through everything with a financial advisor.
- Define our 5 values as individuals and as a couple. This was an awesome exercise for us. Our values as a couple include: Fun/Spontaneity, New Experiences/Learning, Security, Health, and Charity/Altruism. Generally speaking we realized that we basically make all of our life decisions, including financial decisions, from a basis of these values. Each of us tends to put more emphasis on one value above the others, and we also view each value through a different lens. For Chris, spontaneity is fun, whereas I just value having fun. Chris values having new experiences, whereas I value learning new things.
- List all of our short and long term financial goals. This was also a lot of fun, however my job change in the middle of the year changed the timing of some of our longer term financial goals. Some of our goals relate to our net worth, paying off debt (including the mortgage), various home improvements, being able to purchase big ticket items with cash, investing/starting new businesses, the ability to experience new things in life, and how to give back to our community in a meaningful way.
- Set 5 short term goals to be completed in the next year. These goals were more about becoming educated on finances and putting things in place to increase our financial security.
- Set a stricter budget and stick to it with a solid understanding of money in/money out (managing today and the future). This was hard at first, but became easier. I think we still have room to improve on this.
- Educate ourselves on all things financial – Much of this was done via our own research, but we hired a financial advisor in July and that made things so much easier!
- Retirement planning – We have saved 1.6x our income, which according to most calculators is considered ‘ahead of the game’.
- Savings accounts (emergency fund, vacations, car, household, etc) – We have ~3 months of expenses in liquid savings and would prefer to have 6 months, so this will be a focus going into 2014.
- Will & Trust – We will be doing this in January.
- Health Coverage – We are good on this.
- Insurance (life, car, house, long term care, disability, etc) – We will sign up for life and disability insurance in January. We are good on everything else.
- Planning for our dreams (paying off the house, changing careers, paying for kids’ college, investments, owning property, travel, etc) – Much of this is covered in our goals.
- Learning when we need to hire a professional – For us we realized by July that we knew enough on how to hire a financial planner and that we had no interest in managing any of the stuff or coordinating efforts to make everything work.
- How to teach the kids about money and personal finance – This will always be a work in progress, but the kids get spending money and they have to save 10% (and we match that 10%), then donate 10% (we pick a specific charity), and the rest they can save or spend as they choose.
Chris and I completed two mud runs and the Warrior Dash:
Survivor Mud Run – Berthoud July 2013:
Warrior Dash, Copper August 2013
5K (8K?) Foam Fest, Byers Sept 2013
We continued eating healthy, I maintained my weight/dress size without tracking my food and I continued working out all year. I started ballet in April and decided to get more serious beyond ‘taking a class’ and really learn how to dance. I danced in my first recital in December!
Chris planned to focus on health this year. He feels like he did a halfway focus on health for 2013 and could do better. He did accomplish the specific goals of: Completing a mud run or Warrior Dash and taking a Karate class.
Charlotte wanted a trophy in either gymnastics or soccer. She got a medal in gymnastics and then switched to Karate because she said she ‘won gymnastics already’. She now has an orange belt with black stripe.
Cooper wanted to start Karate and now has a purple belt with white stripe.
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