the Guppie Life

It seems that every blogger worth his salt has a debt reduction plan, a budget, or a savings goal.

I’m extremely fortunate that I’m debt free at a stage of my life where many of my cohorts are burdened with student debt. (Thanks mom and dad!)

But that doesn’t mean I don’t watch my cash flow like a hawk. In fact, since graduating college I’ve become hyper-vigilant about my personal finances. It’s not because I’m now working without a parental safety-net— I’ve been in charge of my own money since I was a teenager.

No, no, the reason I have become obsessed with tracking my financial progress is that early on I set my sights on some lofty savings goals.

Max Out My Roth IRA

I’ve already maxed out my 2007 Roth IRA (and it was really easy to set up!), but 2008 is a third of the way over, and I haven’t contributed yet. Gotta get on that.

Deadline: April 15, 2009
Amount: $5,000

Max Out My 401k Match

I become eligible for my company’s 401k plan in June 2008. My employer matches contributions up to a certain point, but I must be vested for three years in order to keep all of the matched money. While I’m really happy with the new job so far, who knows what will happen in the next three years. Under this plan, I can choose a pre-tax traditional 401k or a post-tax Roth 401k.

Deadline: December 31, 2008
Amount: $2,000

Emergency Fund

I began building an emergency fund before I even moved to the D.C. suburbs for my first job. Right now I’ve got a pretty healthy amount sitting in an online savings account. I could use this money to fully fund my 2008 Roth IRA contribution and still have some padding left over, but for now I want to keep things liquid.

Deadline: Flexible
Amount: An additional $3,000

Hybrid Car Fund

My senior year of high school I paid cash for my current car, a 2000 VW Jetta. (Stick shift and turbo! Woot!) Before that I had a clunker that was a gift from my parents.

I’ve never gone into debt for a car before, and I don’t want to now. The Jetta has <60,000 miles on it because I barely drove in college, so I’m hoping it can last me another year, but it’s beginning to show its age. In the past two years I’ve spent approximately $3,000 in repairs.

For my next car, I’d like to get a used Toyota Prius or Honda Civic Hybrid. I’m not so concerned with the cost of fuel— I just want to make an environmentally conscious decision. Also, both cars have good ratings with Consumer Reports.

I will also consider cheaper (but fuel sipping) compact cars.

Deadline: Before my current car dies
Amount: Ideally $17,000, but realistically I’ll save as much as possible in order to reduce the amount of the loan

New Computer Fund

My livelihood is made in the internet industry, and then I blog on my own personal website in my spare time. So yeah, I’m kind of a computer nut.

I’ve been an Apple fan-boy since I bought my PowerBook G4 laptop in October 2005, and I use a Mac Pro at work. I apple-solutely wouldn’t consider anything but another Mac, but the problem is that Apple products are more expensive than comparable PC’s.

As much as I love my PowerBook, it’s showing its age.

I could save money by opting for an iMac desktop instead of a MacBook Pro laptop, but I love the portability of a laptop. (Of course, I could get the desktop and keep my current fossil laptop for when I need the mobility…. decisions, decisions…)

Also, I will consider buying a refurbished machine.

Deadline: Flexible
Amount: $1,400 - $2,200

Plastic Surgery Fund

Upon reading this saving goal, many of you will scoff and promise never to visit this blog again. “How can he say that he’s trying to be frugal when he’s planning one of the most superficial indulgences money can buy? Is he really that shallow?”

I’m not going to make any apologies for wanting plastic surgery. For years I have been thoroughly unsatisfied with a particular part of my face, and I’m not the kind of person who can sit around and ignore problems that have actionable solutions. I’m doing the best I can with my body by going to the gym, but surgery is the only option for my face.

Who knows? Plastic surgery might even be good for my career.

In college, I told myself that I’d get the procedure as soon as I had the money. My mother said she’d pay for septoplasty— an operation to correct a deviated septum— but not cosmetic work. Still, her offer means I don’t have to choose between a legitimate health issue and my self-esteem.

Deadline: At the earliest, six months from now, after I’ve accumulated a sufficient amount of paid vacation
Amount: $5,000 - $15,000 (depending on the surgeon, severity of the issue, etc)

Total: $33,000 - $44,200

Crap, that’s a lot of money.