increase my net worth

Well, I haven’t so much increased my assets, but I have managed to drop my liabilities, month to month, from last month, by about $6k, with probably $2500 more to eliminate before the month is out. Over the course of the year, I think I’m up quite a bit – retirement savings appreciating, plus credit card liability getting whittled away.

HR has already been notified to start maxing my 401(k) withholdings as of Jan 1, and I’m working on my 2008 budget, which will include lots of savings now that I don’t have to write fat checks to credit card companies. I hope to have at least a few thousand dollars saved outright (not in retirement) by the end of the year.

I think I’m on track to getting my 401(k) maxed out, for 2008. 2007 is sort of a loss at this point; it’s not that I didn’t invest in my 401(k)—I did, just only 1/3 of the max. Which is not bad, but it could have been better.

It turns out that maxing my 401(k) next year will actually drop me a tax bracket, so that’s my goal. Beyond that, hopefully my expenses should be much reduced (since my credit cards will be paid off), so in addition to that offsetting the loss due to increasing the 401(k) withholdings, I hope to be able to put aside at least a hundred bucks a month for savings. I haven’t decided on what vehicle yet—I have a money market account, but it has a terrible interest rate, so I might get a savings account with my bank, which has a better rate. I guess I don’t really know what I’m saving for, other than “to not spend,” which makes it somewhat harder to set a goal. I should set some sort of goal. I’ll work on that next.

I would like to reach a six-figure net worth by the end of 2012.

To this end, I am aggressively paying down my debt and by the end of 2007, which will relieve me of $10k in liabilities.

In 2008, my plan is to invest roughly $10k against retirement, and save/invest between $2k and $5k for ordinary savings. (I have to reexamine my financial situation in January to firm up that plan.)

If I save $15k each year for 2008, 2009, and 2010, I should reach $100k in net worth by the end of 2010 (barring any other changes in my financial situation).

I need to figure out a balance between retirement savings, and saving for my long-term personal goals. And paying off my mortgage, which is not really a goal but it would be nice.