She Strengthens

A Year of Financial Reflection: Lessons Learned and Changes Made

As I reflect on the past year, I’m reminded of the importance of taking a step back to assess our financial situation. Last year, my husband and I were thrilled about his new job and the accompanying $8,000 raise. However, we failed to capitalize on this opportunity to re-evaluate our financial goals and make the most of the extra income.

The Importance of Planning Ahead

One of the biggest mistakes we made was not planning for non-monthly expenses. We underestimated the cost of summer camps, vet visits, and holiday spending, which resulted in a less-than-ideal summer break and scaled-back holiday plans. To avoid this in the future, we’re taking a proactive approach. We’ve calculated our non-monthly expenses for the year, divided them by 12, and factored them into our monthly budget. This includes saving for a family vacation, school fundraising events, and birthday gifts.

Building a Safety Net

Having a robust emergency fund is crucial. While we do have a monthly transfer of $25 to our emergency fund, I wish we had increased it to $100 after my husband’s raise. This would have provided a much-needed cushion when Hurricane Irma struck, resulting in a $600 dent in our savings. Rebuilding our safety net is now our top priority.

Securing Our Future

When it comes to retirement savings, we’ve made some progress, but there’s room for improvement. We’ve taken advantage of my husband’s 401(k) employer match, but I’ve been slow to open my own Roth IRA. Contributing just $50 a month could have made a significant difference in our nest egg come retirement time. We’re committed to upping our retirement contributions and making it a priority.

Setting Goals for the Coming Year

With 44 million Americans supplementing their income with side hustles, we’re not alone in our efforts. My husband and I have brought in around $3,000 this year through teaching local workshops. While this has been a welcome addition to our income, we wonder if a more focused approach could have helped us pay off debt faster. We’re now exploring ways to add more steady teaching gigs to our schedule, aiming to bring in an additional $500 per month.

The Power of Proactive Planning

One of the most significant lessons I’ve learned is the importance of not waiting until January to make resolutions. By taking action now, we’ll be better equipped to achieve our financial goals in the coming year. We’re committed to making progress on our priorities, rather than waiting for the new year to roll around.