Goals Shifting a bit

Since my new raise kicked in I am allocating the new income to more savings. I am accelerating the emergency fund transfers and also starting a fund for a new laptop. I am approaching 5 years with my current MacBook Pro and will need an upgrade soon. Either this one will die or Apple will stop supporting it. I need to be prepared.

I am transferring $50 per month to a new savings account just for my new laptop. My target is $2000 so I will add to it later as I get more side income and have a larger emergency fund. It all starts with the first $1 saved and snow balls from there!

I am doubling my contribution to my emergency fund to hit my target sooner. I want to have 1 year's worth of bills saved up and I am about 1/3 of the way there. Doubling my transfers will get me there a lot faster!

The main point here is that I am immediately putting my new income into savings and not letting lifestyle inflation eat into it. All other aspects of my budget remained the same. This is a big win financially!

The Obama 2012 Payroll Tax Cut

Like it or not we are going to get a little bit more in each paycheck this year thanks to a tax cut that passed. I always like paying less in taxes but know that almost any cuts will be temporary thanks to the staggering national debt.

Politics aside I got my first pay stub of the year early. I will get a whopping $5 more per pay period. I am disappointed as I was expecting more from a payroll tax cut. The change must be very minor to only affect my bottom line by $5.

While I don't mind an extra $10 and change per month I was hoping for something a little more substantial. Thanks! I guess...

New Long Term Goal: Increase residual income to $1,000 per month

Now that I am more settled financially I am beginning to look into ways to boost my side income. I have always been on the lookout but now I have more time and energy to dedicate to it. I have several types of side income that I produce to move towards my goal of financial independence and extensive world travel.

My current side income avenues:

• Interest Income: Savings, CD's, Bonds, etc.
• Investment Income: Dividends, Gains on stocks/mutual funds
• IT Consulting: Break/Fix work locally
• Miles & Points: Churning Credit Cards, bonus promotions, flying for work
• Focus Groups: Giving my opinions on products for money

My new goal is now to boost the income from the above activities as well as new ones I can start so that I earn an average of $12,000 per year from it. I am looking heavily at a rental property as an option to boost it. I am also researching investing strategies and looking for more IT consulting work as I can. I am constantly working on miles and points deals since they can create high value for travel.

If I can make this happen it will bring me a lot closer to financial independence. It is much easier said than done but I have to start somewhere. There are risks too that have to be weighed and managed along the way.

Staying ahead in tough economic times

The bad economy in America is old news. We all hear about it day in and day out. A friend of mine was laid off recently. Things at my own job have been wishy-washy lately too. We have been busy but it seems when we gain ground we lose it elsewhere. All of this has renewed my focus on an adequate emergency fund.

My emergency fund is growing nicely but not as fast as I would like. I have lost a roommate and the income from that so I cut expenses as much as I sanely could and also am working on a side business. The slowness of my savings growth frustrates me to no end but there is no quick fix. I find myself very irritable lately and impatient most of the time. Nothing like the feeling of being stuck to put you in a great mood...

Another annoyance that is bothering me is the fact that I am going on 3 years without a raise in an already sub-par paying job. Costs have gone up on all fronts, especially food, over the past 3 years. Bundle in inflation and I am actually losing ground in real terms. I fear the days are numbered before I get completely fed up with it all.

Therefore I am going to start seriously looking for something else. One can only tread water for so long before change is imminent. It seems I need to find a larger company with more stability and hopefully a more interesting position available. Some benefits, such as health insurance, would also be nice. I need change. I am bored and stagnant where I am now. There has to be something better out there!

2011 Goal Progress: Increase Income

I have a major goal this year of increasing my income. I am now working multiple channels to make this happen. So far:

• Being more aggressive in finding side IT work -- paid off!
• Taking a course to complete my technical school IT degree -- in progress
• I am going to renew my notary registration to make myself stick out in job applications
• After I am done with the above course I plan to study and take a Microsoft Exam
• I am giving more thought on how I am investing my savings (more aggressive portfolio)
• Meeting new people and networking more (I am REALLY lacking here)

As I move forward I hope all of these things will bring me more opportunities to increase my income. I am certainly below where I feel I should be at the moment and the down economy is making it that much more difficult to get ahead. I am also considering a job change to get the pay increase I want (and benefits would be great too).

Back to School!

At the end of this month I will be taking an online college course to complete my CIS: Networking degree. I have worked in the IT field for over 10 years but only only hold a degree in Finance. Even though the degree I will receive will be from a 2-year technical school I believe it will help me in job searching.

In the IT field certifications and experience are the top two items that land you an interview. I have a couple of certifications under my belt with more to come this year. I am starting with completing this final class to get a degree and then plan to move forward with Microsoft certification. Having both of these opens up newer (and higher paying) job options.

This is all part of my big picture plan of earning more so I can save more. The more I can save the sooner I can stop working all of the time and focus on what matters to me: travel, helping others, and freelance consulting. I understand that money is not everything but I have to increase my income to have any chance of getting to my goal before age 60 or later. Time is money too!