2017 Goals

Cast from our course, we wander in the dark. No stars to guide, no point of land to mark.

It’s time to take down the tree, vacuum up pine needles, and start making New Year’s resolutions. Here are mine.

I use ONS metrics for net worth related goals[1] – why reinvent the wheel? Calling home equity “property wealth” might be somewhat silly, but it seemed reasonable to keep the ONS terminology intact for consistency.

Savings rate

Maintain a savings rate above 60%. Monthly savings rates don’t matter so long as the year to date average is at or above target.

Property wealth

Overpay mortgage by £10k or more.

Pension wealth

Use up all available pension allowance.

Financial wealth

Top up Emergency Fund in line with any salary increase. Continue with regular savings into the S&S ISA.

Tax

Pay no more than £22k income tax in 2016 / 2017 tax year, and no more than £23k in 2017/2018 tax year.

Notes:

  1. Except for property, where I don’t take into account any revaluations. They are only really relevant for investment property, which I don’t own, and I also can’t be asked to track property index movements in between valuations. Hence here and everywhere else in this blog property wealth = purchase price – outstanding mortgage balance.
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