2024 New Year’s Resolution
A new year is upon us. And with the new year, another cliché title for a blog entry.
My 2022 resolutions were a big vague. I graduated as a CRNA and started working. Completing my education and boards was good enough for me.
Starting The Financial Cocktail was another 2022 resolution. TFC manifested in October 2022 without a specific plan in mind. I simply desired a media outlet to share my learnings.
My 2023 resolutions were a bit more refined and defined.
2023 Resolutions to Review:
Blog post every Tuesday
Expand the financial coaching
Meet the set dollar amount to invest each month
Aggressively invest throughout 2023
Blog Post Every Tuesday
This was almost accomplished. I went 51 of 52. I write posts 1 week at a time. I don’t sit on a bunch of unpublished blog entries. This bit me in the butt when I missed a week due to the birth of my daughter.
All-in-all, no regrets. I made it up the next week by publishing 2 posts. Close enough for me, I’ll count this resolution as accomplished.
Expand the Financial Coaching Aspect of TFC
This is a poorly written resolution because it is not definitive. Regardless, I have met some great CRNAs through financial coaching. Sometimes a single meeting is enough for folks to feel confident going about their financial business. Other times, we have monthly recurring meetings.
This has been extremely rewarding. I have received great feedback from those I have worked with. I’m excited to see just how much each of these CRNAs will accomplish in 2024.
Meet the Set Dollar Amount to Invest Each Month
I kept this vague because everything about this blog is embarrassing. I’m not a fan of my writing. Sharing details of my life on the world wide web is intimidating. The whole thing is sort of like hearing a recording of yourself. Sounds good at the time, but chalk board nails on playback.
In the name of transparency, Mrs. TFC and I agreed on setting aside $20,000 each month. Yep, that was our number. Bold right! I can proudly say we met this savings/investing goal each of the 12 months.
And not only did we meet this $20,000 goal, but we greatly exceeded it most months. Let’s just say the overtime was plentiful and I’m sick of being broke. Note, I didn’t say, “Sick of living like I’m broke.” I said, “I’m sick of being broke.”
Aggressively Invest Throughout 2023
Again, a poorly written goal. Due to market conditions at the end of 2022, I expected a mix of equities and money market allocation. We ended up a bit heavy on the money market side, but still put the money to work in some capacity.
The long-term play is to dollar cost average into low-cost, passively managed index funds.
2024 New Year’s Resolutions
Blog post every Tuesday
$1M net worth at age 30
Blog Post Every Tuesday
The blog writing remains enjoyable. I’m always looking for areas of interest. At the start of 2024, I’m making a transition to full time locum work, so expect related content.
Feedback over the past year has been overwhelmingly positive. I’m always looking to expand my reach as there are plenty of CRNAs who could save millions and change their financial trajectory with just a few hours of financial literacy. Knowledge that pays lifelong dividends.
$1M Net Worth at Age 30
The hair is turning gray and thinning as I write this entry. I will be over my first hill this year. Another year above ground. This is not a boastful financial goal, but hopefully an inspirational one showing proof of concept.
Mrs. TFC and I will be looking to achieve a net worth of $1M. Pretty straight forward. Most of this comes from earnings and savings, not from investment returns. At this point, our nest egg produces a notable return. Not nearly enough to live off, but it’s a start.
Our financial independence number is $2.2M. This is a fluid number representing a time in which our investment returns will equal or exceed our cost of living. Regardless of how our cost-of-living changes over the next couple years, entering the two-comma club is a major milestone.
Other Resolution Considerations
I think I’ll stick with these two for now. I would like to maintain a reasonably healthy lifestyle by attending the gym 5 times per week.
Practicing at the top of the scope has been enjoyable. I would enjoy continuing this type of practice, but in the full-time locum world, I’ll likely end up talking a room lacking flare.
I don’t have any specific 1099 related goals. My notepad is filling up as I record the process of setting up an LLC, completing the paperwork, and building a team. The concept of starting a business is daunting. Hopefully some insight from a new 1099 contractor will be relatable to a few readers.
Suggestions for Personal Finance Resolutions
Whatever your resolution, make it a SMART goal. Specific, Measurable, Achievable, Realistic, Timely. Without a specific, measurable goal, it’s difficult to evaluate success. Fortunately, finance goals make great SMART goals.
Maximize the employer 401(k)
Earn $300,000 this year
Achieve a saving’s rate of 25%
Invest $10,000 each month
Pay off the student loans
Financial changes are difficult for a few reasons. It may be difficult to earn more or work overtime in a particular area. This means traveling for overtime – difficult for many.
Implementing drastic changes lack sustainability, so make them worthwhile. It’s not fun to work 70 hours per week forever. But, if working 70 hours a week for 3 months makes the student loans disappear, it can be done. Then cut back to 1.0 FTE.
Mrs. TFC and I are pushing our luck with our current savings rate which likely hovers around 80% of net income. It’s not desirable forever. That’s why the plan is to reach FI by age 35. Then any income is just gravy. Something to offset expenses and preserve the nest egg. Basically, spending cash.
If I can trade a heavy workload and high savings from age 18 to 35 for financial freedom after age 35, I’ll take that. My goal is to exit the “trade time for money” model of life ASAP. Hopefully by reading The Financial Cocktail, you too can exit the rat race with no money problems and decades to spare.
Single Month Resolutions
A fun little sample of a financial resolution. I use fun lightly. Try a no spend month. That’s a month without discretionary spending. All former discretionary dollars go towards your financial goal. This way, you aren’t tied to a decreased cost of living for 12 months. Try it in February.
No eating out. No movies. No travel. No buying clothes. Most clients I work with are surprised at how much they spend in these areas. After completing a written budget, most say, “I knew we ate out a lot, but I didn’t expect that.”
I’m not saying discretionary spending is bad. Look at this as a financial detox to accelerate your progress.
Increase your savings rate by 3%. Or increase your retirement contribution by a couple bucks each month. Just try it. Put away a seemingly insignificant amount each month and see where it takes you. See if you notice the money missing from the slush fund.
Try gradual progressions just for the sake of trying it. It’s risk free. If you really hate it, you can spend double next month.
Quit Procrastinating
Open that account you talked about during 2023. Maybe it’s the 529 account for your grade schooler’s future education. Maybe you wanted to try a backdoor roth, but never got around to it. Maybe you wanted to donate to that nonprofit. Whatever the case, make it happen in 2024.
I really like the 80% rule I wrote about in one of the last blogs. Doing something in the general direction with 80% of the success is far more effective than doing 0% due to analysis paralysis. Make the leap. Make it happen.
Thanks for reading!
