$50000 Savings Goal

By | September 9, 2022
savings goal

This $50000 savings goal is a brand new project I am starting.  I have many things I would like to do with my income.  These include:

  • Increase my contribution to my Dividend Portfolio
  • Save for a down payment on a house or beach condo
  • Payoff my mortgage early
  • Establish an adequate emergency fund
  • Invest money in my taxable brokerage account
  • Etc.

The problem is, I don’t have an unlimited amount of funds.  And so, I have to prioritize.

As you are aware, I previously liquidated my dividend portfolio to purchase a beach condo.  I do want another beach condo BUT I don’t want to have to liquidate my dividend portfolio again to do so.  Therefore, and despite the fact that I seem to change my priorities on a monthly basis (remember when I was going to prioritize establishing an emergency fund?), I now plan on saving up for a down payment!  My goal is to save $50,000 by the end of 2023!

This is huge!  I anticipate that it will take me about 2-3 years to have a fully funded down payment (not including closing costs) for my next purchase.  I may still try to buy next year, but we will see.  One possibility that might happen is that I use my contributions to my Roth IRA to help fund the purchase but I’ll make that decision later.  Truth be told, I’ve mentally committed to cashing out my Roth IRA but I will do so at the last minute.

My goal is to save $50,000 by the end of 2023!

In order to get to $50,000, I will need the combined efforts of my salary and vacation rental investment profits.  Let’s dive in.

A. Savings Goal – Salary

I’ve determined that I want to try to save $20,000 over the course of the next 14 months – starting in September 2022 and ending December 2023.  That’s a very tall order, given my other financial obligations!

This $20,000 will come from my salary and any other additional income I can find over that time period.  So, I may get back into doing more side hustles including driving for Uber and Lyft.

Moreover, to keep me honest, I plan to track my progress along the way – on a monthly basis in my dividend income reports.  Based on my current budget, I should be able to save $16800 by December 2023 just from my salary.  I do have a starting balance of $1689 but I’m not sure I’ll be counting that just yet.  Regardless, I’m confident that doing rideshare will help me reach the $20,000 threshold by next year.

The following is my tracker to get to AT LEAST $16800.  This does not include any pay increases (which I am expecting) or any additional funds that I may get next year.  I will start digitally highlighting the tracker every month.

down payment tracker

When I look on YouTube, many people use a paper tracker and then color code that tracker every month. That is fun. But, because I plan on tracking my progress on this blog, that wouldn’t work so well. I’ve used this digital color-coding method to help get me out of credit card debt, and I plan to use the same method to help me save for a down payment. As the saying goes, if it’s not broken, don’t fix it.

B. Savings Goal – Vacation Rental

I don’t make enough money to save $50,000 from my salary.  So, I am hoping that the profits from my beach condo will help make up the difference.

Based on my current projections, I hope to finish the year with $15,000 in profit.  If I have a similar year next year, I should have another $15,000 in profit.  So, with this $30,000 in combined profits, plus my $20,000 from saving money from my salary, I hope to have $50,000 towards my next down payment.

It’s very possible that I will end this year with $10,000 in profits instead of the $15,000 that I am hoping for.  Regardless, I am confident that next year will be better, because my expenses this year have been elevated given all my projects to improve the condo.

Barring a hurricane that shuts me down, or something extra ordinary, I am confident that the condo can generate enough money to reach my savings goal.  But only time will tell. 

If you’ve followed my blog, you know that I track my income and expenses on a monthly basis in my vacation rental reports.  So, you will be able to judge if I am able to reach my goals or not.

Conclusion

Typically, I leave such lofty projects for January 1 when it’s time for New Year’s Resolutions. But, I feel very motivated right now and I don’t want to lose that motivation.

I figure if I can just start saving money for a down payment, it will eventually become a habit. I’ve noticed that my dividend income report goes out on the first of the month religiously. So, if I continually report my progress in that report, it will help solidify the habit. There’s a small chance that I’ll make tracking the progress it’s own separate post but I doubt it.

What did you think of this post. Let me know your thoughts by commenting below.

8 thoughts on “$50000 Savings Goal

  1. JC

    DP,

    That’s definitely an audacious goal, but it still seems very achievable. I’m looking forward to seeing you progress along the way. I wish we could bump our savings rate up more but honestly there’s just not as much wiggle room now with 3 kids. Life, from a money standpoint, was so much simpler before kids. Haha! But I wouldn’t trade them for anything.
    JC recently posted…Honeywell: A Fair Price For Quality $HONMy Profile

    Reply
    1. Dividend Portfolio Post author

      I hear JC. Life right now is simple without kids, but a part of me wished I had kids (a very small part)!

      Reply
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