Financial GoalsPersonal Finance

My 2018 Goals

With the new year celebrations well and truly enjoyed, now is an opportunity to reflect on 2017 and plan for the upcoming year. Last year I didn’t write about formal financial goals on my blog but I thought it could be fun this year. I’m sure as hell it will motivate me knowing you all know what I’m shootin for!

If you’re interested, you can check out my 2017 review, which forms the basis of these goals. You can read how I set goals here.

The underlying theme for me this year seems to be around building foundations and making my life one of greater ease. I don’t necessarily mean ‘making my life easier’ – I’m a big fan of hard work. I do want to try and be more at ease with myself and find simpler more efficient ways of doing things, without so much mental stress and pressure to optimise. For example, why spend time hopping from one bank account to another chasing an 0.2% interest p.a. when the dollar difference is $2 per $1,000. I can use that brain space far better just enjoying life.

With that in mind, I only have a few of financial goals for 2018. They’re mostly about saving and investing just a little.

2018 Financial Goals

  • Savings rate after tax 35%

My savings rate in 2017 was 26% after tax. So achieving a 35% savings rate would feel great. It’s my most important financial goal for the year since it underpins everything else – without free cash flow, I can’t save and invest!

  • Increase the fortress fund to $16k

My emergency fund, fondly called the “fortress fund” (who doesn’t like castles!) currently sits a touch over $12,000. Increasing the fortress fund to $16,000 gives me 4 months living expenses in reserve.  Eventually I’ll save a full 6-months, but that will be a goal for 2019.

  • Save for a commercial property deposit

I work for myself and whilst I pay pretty modest rent I don’t have a long term lease. The office suite I rent though is pretty affordable in terms of commercial property – for a capital city. So I’m planning to make an offer to buy it from the owner, who is half hearted about owning it. It’s not a great investment due to its age and the strata fees, but as far as entry level office space goes, it’s a bargain. Plus it means security of knowing for the next 25+ years I have a place to work from without the need to worry about rising rents, relocations etc. I can also sub-let an office or two from the suite to cover the strata fees and maybe make a small profit. Loans for commercial property have a LVR of 30% so I’ll need to save $60k – $70k.
I won’t be able to do this in 2018, but hopefully I can get a good chunk of the way there – $20k would be a great start.

  • Invest in the stock market

Since saving is my primary goal I don’t want to go overboard here. I’d like to grow my portfolio by adding $4k – 8k in 2018. Half of this I plan to invest in low cost index funds / ETF’s and if I find compelling value elsewhere, then the balance in specific stocks. Although I’m not a macro guy, I have a bit of an idea on which sectors I think might do well over the next 20 years, so I’ll be hoping to uncover a few gems there and elsewhere in 2018.

Depending on what my taxable income looks like in May/June I might invest in my Super account – it all depends on my expected tax rate and overall income for the financial year. It’s a bonus that any money I deposit can later be withdrawn (up to $30,000 plus deemed earnings) under the new First Home Saver Scheme. I expect at most I’ll deposit a couple grand.

2018 Life Goals

Aside from financial goals, I also have a few health and fitness goals and general life goals.

  • Exercise 4 hours a week
  • Eat more home cooked meals (i.e. brown bag healthy lunches!)
  • Develop and try out a morning routine consistently for at least a month
  • Study Japanese language 3hrs per week – once I submit my PhD.

That’s it. If you’re a regular in these parts you’ll notice I left off *submitting my PhD* which feels like a gimme at this point. I’m probably 3 months away from submitting so to make it a goal seems a bit redundant. I do want to really buckle down and get it done in the next few months though!

What are your goals for 2018? How did you go in 2017? Which goals did you get there on?

16 thoughts on “My 2018 Goals

    1. Thanks Time. I studied Japanese at school as a kid and ever since I’ve really enjoyed the language and culture. I’d like to live there one day, maybe for 6 months every few years, if I can!

  1. Very well-thought goals, if I may say. I admire your focus, I wish I can be like you. Sometimes I just want to do so many things at the same time and that always backfires. Heh.

    Are you planning to go to Japan soon? I still haven’t been. Totoro is still calling my name.

    1. Hey J 🙂 Something I realised was that I was trying to do too much last year too, I had language goals, Uni goals, business goals, fitness goals, money goals. I’m trying to learn to be content pairing back a little, just a few goals in a category or two and when they’re done I’ll move to new ones. I’m sure you’ll hit some goals this year, your and your boyfriend saved tons last year by the look of it and your Vanguard investments are growing nicely!

      Japan, maybe 2018 but definitely in the next 18 months. I’d like to finish my thesis, work for 6-months then take a month off to travel. Possible! Do you have plans to go? The SG studio would definitely be worth a visit!

  2. I like all of your goals WF30, increasing your growth assets and defensive assets is something we’re also trying to do.

    The most exciting thing is the commercial property, that sounds like a huge, great goal and something that could increase your wealth as well.

    If you manage to achieve all your goals then your life will be better in every way, I hope you achieve them all 🙂

    Mr DDU

    1. Thanks Mr DDU – the commercial property is more for piece of mind than as an investment but I’ve done several calculations and if it can yield 4-5% p.a. I’ll be very pleased, any positive return above that would be cream on top!

      Best wishes for your 2018 too mate.

    1. Hey Income Master – nice to meet another Japanese language student! I’d like to sit JLPT eventually, especially as I’d like to have the option to work there someday but I’m really just learning as a hobby at the moment. Happy if I can just hold a conversation (long way to go), read and write. How have you gone about learning Japanese?

  3. Interesting list of goals WFT. I like the idea of having a fortress fund. I mean, I know it’s the same as the emergency fund, but it’s more fun when you can personalize it and give it your own name. Nice. My current emergency fund is at a dismal $1000. Hope to get that up hopefully by next year.

    Good luck on all your goals in 2018.

    1. You’re totally right it’s more fun! Your $1000 can still cover a lot of small unexpected emergencies so it’s a great place to start. I’m really making the fortress find a priority this year. Faffed about long enough!

    1. Thanks atl. Times like this the fortress fund helps me sleep a little easier. As you know markets have been tumultuous but to know we’re ok is essential.

      And medieval stories are awesome!

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