Once you’re past Freshman year of Frugal School, you’ll understand the importance of setting goals. What you might not have learned is that one effective way to stay accountable to your goals is to publicize them.
Like the old management quote says, you can only change the things you monitor.
In this spirt, the goals for my family and this website are listed below. Just like in a role-playing game, each goal has levels that are more challenging then the previous ones.
You’ll note that there are no dollar signs to be found on these goals. That’s because the amount of money the Foundry makes is somewhat irrelevant. What’s more important is keeping a high savings rate by minimzing spending and maximizing income, which in turn will drive up the amount of investment income our savings can provide. When investment income matches spending, you don’t require paid employment any more, if you don’t want. While it’s important to track and optimize spending/income (which are measured in dollars), they aren’t goals in and of themselves.
I’d love to hear suggestions for other goals, or hear about your goals.
Savings Rate Goals:
Save 55% of income
Save 50% of income (Achieved August 2011)
Save 40% of income (Achieved February 2011)
Investment Income Goals:
Investment income of 15% of total monthly expenses.
Investment income of 10% of total monthly expenses. (Achieved June 2012)
Stay debt free when we become homeowners decided to replace this goal with the following:
Have mortgage paid off by the time I retire
Be debt free (Achieved January 2012)
Have 50 Twitter followers
Have 30 Twitter followers (Achieved August 2012)
Have 1 Twitter follower (Achieved October 2011)
Have 250 Facebook likes
Have 100 Facebook likes (Achieved November 2012)
Have 1 Facebook like (Achieved October 2011)
Alexa rank better than 4,000,000 (gotta start somewhere!)
Get an Alexa rank (Achieved October 2012 – 4,531,808)