Medicated Money

Monday, May 08, 2006

Long Term Goals - Part I

While currently reading 'The Number,' we sat down and discussed what our number is and what it should be. As the book discusses, the Number is the 'amount of money you need to secure the rest of your life.' That is definitely a difficult answer to derive! This discussion has led us to try to determine our long term goals. Most financial advisors argue that without a true plan, you will never get to a 'financially secure' location. The first step is to determine where you want to go.

We both love our careers and the work that goes with it. However, we both are very family orientated and our first long term goal is to raise a loving family. Money can buy many things, but the love of a family is one it cannot, no matter how much you have. In saying this, we feel that one parent at home with children is a must. This will be difficult due to the fact our education was both expensive and long; some would argue that this is not financially the wisest move. However, we both feel that it is most important that our children are raised by us instead of by others. In discussing this, we feel that Mr. Medicated will most likely continue to work full time while Ms. Medicated will most likely work part-time to help stay current in her field. Our goal is to arrange our work schedules around times when one parent is at home with the children at all times, and/or both be working when they are in school!

Our second long term goal is to become completely debt-free by the age of 35. As many of our readers know, we are currently undergoing a debt repayment plan. This does not include our student loans and/or our future house purchase. Our goal is be completely debt-free by the age of 35 to allow for 25 years of financial growth without debt. At that point, our goal is to have our net income to resemble this:
  • 30-35% - Living Expenses
  • 20-25% - Taxes
  • 40-50% - Savings

Our third long term goal is to be able to retire at age 60. This word 'retire' is probably not the best to use in our plan, but for us, it means to reach a point where working is by choice, not by mandate. We both will most likely continue to 'work.' Mr. Medicated would like to eventually go into the academic world of our occupation, while Mrs. Medicated sees herself working in under-served areas. Our goal is to be able to still have a paycheck available as well as some benefits, but to give back to our field as well as enjoy our 'retirement' with family and friends

In order for us to 'retire' at age 60, we plan to have a certain Number to allow us to live for 30+ years and not having to worry about our money running out or downgrading our lifestyle significantly. In Part II of this post, we will discuss what we think our Number is and how we plan to get there.

2 Comments:

  • Let me say "Bravo" on the choice you two have chosen to have one parent at home when the kids come along. I love personal finance and figuring out how to make smart financial decisions, but we would never compromise raising our children for more money. Too many couples choose to have a daycare raise their children while they pursue their own career goals. I realize very few couples feel this way, so that's why I stand up and applaud your decision.

    By Blogger Me, at 9:58 PM, May 08, 2006  

  • Thanks for the vote of confidence. We both come from families where our mothers stayed at home and raised the children. In today's world, we understand that this can be very difficult. For us, the emotional and social elements of being there for our children in the home out-weigh any financial benefit of both working full-time.

    Thanks for reading and commenting!

    By Blogger Medicated Money, at 10:58 PM, May 08, 2006  

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