2015 Goals Update: Big Changes
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Happy Monday friends! I have one question to ask – how is the year more than half over already? It’s crazy to think that it’s mid-July. With the traveling we’ve got coming up over the next few months the year is going to end awfully quickly for us.
As I wrote last time, it has been an incredibly busy year for us. That’s a great problem to have on one hand, but I find myself wanting to sit back and reflect on all that has been happening, including changes for us and our business. It’s hard to think that I’ve been working for myself for over three years now and that our business is five years old.
Anyway, we have had one big change with regards to the business. I touched on it last quarter, but we’ve made the switch from being classified as an LLC to an S-corp. There were a number of reasons for this, mainly coming down to taxes and the amount we can save for retirement.
Speaking with our CPA about the decision, he indicated we’d be able to save five figures with regards to taxes. I about fell out of my chair when he mentioned that! That alone was reason enough to make the switch. The other big reason for the change is we’re moving from SEP IRAs to Solo 401(k)s for both Mrs. Frugal Rules and I.
Truth be told, I know we would’ve been able to make this switch and still be classified as an LLC, but didn’t make the switch in time last year. We’re changing that now. Saving for retirement and being self-employed can be a challenge on one hand as you miss out on any employer match, but to be quite honest I don’t miss it one bit.
We’re able to save considerably more now through the Solo 401(k) option with both of us having the ability to max out our plans (which is $18,000 this year) plus the ability to put an additional 25 percent of our salaries, from the company, towards the plans. Free money is nice and all, but I’d rather be able to put away more money. 🙂
Thanks to our lack of time to manage things as we like we’re also in the process of moving all of our investments to Vanguard. I’ve resisted it for too long and really need to simplify our investing as we have too many things all over the place. Making the switch to move everything to Vanguard should help simplify our investing quite a bit. I’ll be writing a post more in-depth on the move in the near future. That being said, on to the progression of the goals.
2015 Goals Update
Save at least $15,000 for a new to us car. As I wrote a few weeks back we’ve been seriously considering changing this goal altogether. In fact, we’ve decided to change the direction of this goal completely in order to allow us to buy a house within the next year or so. We’re sitting at about $20,000 in our Discover Bank account so I’d rate this goal as a pass since we’ve hit the minimum we want to have but effectively are moving in a different direction. We’ll still be putting away what we’d consider a car payment of $300 per month into a specific savings account so we can buy in cash eventually, but everything else will be going towards the house down payment of at least 20 percent. It’ll take some work to hit the goal of buying a house within the next year, but believe it’s entirely doable without sacrificing any retirement savings.
Do P90X. Like last quarter, this is a big fat fail. However, I’m still exercising regularly, more in fact, though changing it up some. I’ve found that I really enjoying getting out of the house, since we work from home. What that means in terms of exercising is that I’m getting outside and doing a 3-4 mile walk each weekday. Once I get home I follow that up with a 30 minute circuit training video from YouTube. While this does take up a bit more time than I like, it’s well worth it as I’m sure it was key in me losing 100 pounds. Honestly, I’ll likely continue at this pace as I’m aiming to lose an additional 10-20 pounds to get to the target I want. So, this one is a fail but with a reason behind it. 😉
Start and complete a course for Frugal Rules. This is another fail. Like I mentioned last quarter, I’ve gone a completely different direction with this goal and launched a niche site that’s focused on what the course would have instead. I still really want to launch this course, though there are too many things competing for my time at the moment. We’ll see where this goal goes, but will likely not progress that far this year.
Looking at my goals for the year thus far I’d rate myself at a 50/50. Overall I’m happy with how things are going, though not very happy to not have begun work on a course to offer on the site. That being said, I’ve found that I really like having fewer goals to work on as it has helped me keep focus on what we’re working towards.
The rest of the year is going to be fairly busy for us travel wise. We just returned from NYC a few weeks ago for business. We’ll be driving out to Denver in two weeks for my younger brother’s wedding. FinCon will be about six weeks after that and the week we get back from FinCon we’ll be going on a family trip to Dallas and will likely throw in another short trip or two as we both have Companion Passes.
How are your goals for 2015 shaping up thus far? Do you have any fun trips planned for the year? What’s new in your corner of the world?