At the beginning of each calendar year I like to make some financial projections for our household. I’ve done it for the last four years and we’ve always not only met our goals, but absolutely destroyed them. It’s pretty stupid when you reach your 12 month goal in seven months. That doesn’t mean that I’m awesome, it means I made our goals too easy.
For 2012 I wanted things to be different. I wanted our goals to actually be a stretch. And boy were they a stretch. According to our 2012 budget, we started the year off with a net worth (NW) of $114,000. I set a goal for us to reach $170,000 by years end. If you saw my latest NW post you’ll see we’re currently standing at $153,000. That means we are $17,000 short of reaching our goal.
If you’re gonna crash and burn, might as well do it to the tune of $17K right? Fortunately (or unfortunately depending on how you look at it) I predicted this failure back in July. Thank goodness we weren’t caught off guard otherwise I might have had a heart attack.
So why did we fail so miserably? It really comes down to two reasons:
We bought a car.
I didn’t account for this purchase in our spreadsheet because I didn’t know if we’d actually find a car worth buying. Turns out we did. We paid $20,000 for our Pilot out the door (after taxes and licensing). We sold Girl Ninja’s car for $8,200 to help recoup some of the cost. We took $11,800 out of our personal savings to cover the rest. If I included our vehicles in our NW, then we wouldn’t be that far off from our goal. But I haven’t included them in the past, and don’t plan on including them anytime soon.
I started a business.
I launched MANteresting in February, well after I made our annual goals. I definitely didn’t anticipate the site picking up steam as quickly as it did. As a result, Jesse and I have been playing catch up ever since, both with the servers and our pocketbooks. From idea to launch, we had only spent about $1,000 building the site. From launch to present, we’ve spent around $15,000 making sure it scales with demand.
You know where my $7,500 portion of the expenses came from? That’s right. Our savings account. There was no way for me to know back in January that TIME, ABC, CNN, WSJ, NYT, TechCrunch, CNET, etc would have a hay day and feature MANteresting on their sites.
I’m happy to report the hard work has paid off and the site now pays for itself. THANK GOODNESS!!!! We’ve spoken with a few different “experts” on internet startups and have been told our site should be valued between $200,000-$500,000. Heck, even if the $200,000 valuation is quadruple our actual value that’s still a significant return on our investment. What will come of the website? Your guess is as good as mine. We’ll either die a slow and fiery death. Or we will end up relatively well off from it. Fingers crossed for the latter 🙂
So yeah, we are gonna end the year about $15,000 shy of our $170,000 goal, but ya know what? I wouldn’t have it any other way. We make money so we can spend some of it (vehicle upgrade) and we save diligently so we can invest in great opportunities (new business).
I’ll be posting up our new budget and our new goals in the next few days. If we are lucky, we can epically fail at reaching those goals too!!!!
How has 2012 treated you? What were some of your financial (or personal) goals this year? Do you count your vehicles in your net worth? Should I?