One of our financial goals this year is to save a ‘first six months in Portugal fund’. We set the amount for this goal at £6k*, which should be enough cash to cover the initial cost of renting an apartment for 6 months (including deposit and any fees).
Ramping up the mortgage over payments has delayed our progress somewhat and to date, at just over the halfway point of 2011 we’ve only managed to put £2,099 into this fund…….a little behind goal! But I’m determined to hit all our savings targets for the year, so it’s time for extra focus and a little snowflaking!
How I’m hoping to achieve our goal:
- Regular deposits: The regular deposits into this fund are £359 a month (6x £359), which added to the amount we have already (£2,099), will take the amount saved at the end of the year to £4253.
- Guaranteed side income: The unpaid money from June’s site income has now cleared, so I’ll be able to add another £500 to the fund this month.
- Grocery budget: There’s a small possibility of snowflaking a little money that’s leftover from grocery spending, although that will be very difficult.
- Work overtime: Holiday season is upon us so there may be chance of a little work overtime.
- Side income: June was a great month for my sites so I’m going to keep working on them in the hope that it will continue.
- Tightening of the purse strings: Since going back to work I can feel the lifestyle spending creeping back in. Before working I could go for days without spending even a penny, now, and it’s because I’m out of the house more, it’s a pound here, a pound there without even thinking. It has to stop!
Now it’s time to turn the potential ways of reaching our goal into action!
What saving goals are you working on at the moment? Do you have any radical ways to make a little extra money?
*Based on us renting for approximately £700 a month……..although we may find a cheaper option.
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(photo credit Move To Portugal)
{ 7 comments… read them below or add one }
Goals turn dreams into reality. You are doing great and I really like your list of “how” you are going to do it.
I just started thinking about a major goal – car loan payoff- and decided that I’m going to push to have them paid off before this time next year. (I would LOVE to have them paid off before the end of 2011, but my one car loan is at $13000, and I’m afraid that wouldn’t leave me any money to eat!) Once both car loans are gone, I will have an extra $900 a month. It’s insane that I even have these loans, (one is my daughter’s and she will be paying us back once she finishes grad school and starts work). I think I’ll come up with a list to figure out how to get rid of these loans sooner rather than later!!
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Laura Reply:
July 12th, 2011 at 8:17 pm
@Sharon paying off your car loans as soon as you can (and having the $900) would be great for your future plans.
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I always love reading your updates!!! The only goal I really have right now is beefing up my emergency fund! As for your spending money here & there now that you’re working again, you can’t spend any £ if you don’t bring any £ with you!
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Laura Reply:
July 12th, 2011 at 8:12 pm
@Carla good point! I shall leave my purse at home!
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I really like how you split up your goals into dollar amounts that you can wrap your head around.
I’m personally struggling with goals like “save for retirement” or “save for kid’s education.” The numbers are staggering when you try to figure out how much you really do need. I’m much better at smaller things like “save for a bathroom remodel or “save for a car.” Saving $20K for a car actually seems achievable to me. Saving $1-2MM does not. Perhaps I can make smaller goals. I think I need a retirement budget and figuring out how much I will pay in taxes and for healthcare and stuff and start ticking them off one by one. Or maybe it’s just easier to do $40K incremental goals. Each $40K representing a year’s worth of comfortable post retirement living. I suppose if 2 people are working and we can save one income then each year of working can represent at least a year of retirement expenses, although hopefully it’ll be more because I don’t anticipate needing as big an income by then when everything’s paid for.
Sorry for the long response, you got me thinking, yet again.
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Laura Reply:
July 12th, 2011 at 8:11 pm
@Sandy Splitting goals into ‘actual amounts is the only way I can function, like you say anything else is too mind blowing.
The idea of saving for retirement in increments is a good way to approach it and less daunting! We have a figure in mind but it seems a long way off at the moment.
I’m sure $40k will be more than enough to cover a years expenses
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Hi,
I am portuguese and i live in belgium since 1983. I was 13 years old when i left my country. I have been reading your blog for several months. I love portugal a lot and i miss my country a lot. I try to go back every two years. When i look at your photos, i just want to take a plane and go back where i was born. I am from santarém, in the center of portugal. I wish you can realise your dream to go live there. Don’t give up!! I think it’s amazing that somewhone who isn’t portuguese want’s to learn and live and portugal, my beautiful country!!! Sorry for the english mistakes!
Boa noite
Paula
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Laura Reply:
July 12th, 2011 at 7:50 pm
Hi Paula! Thank you so much for saying hello! I hope that you can get back to Portugal one day, it really is a beautiful country.
Please don’t apologise for any mistakes, your English is way beyond my Portuguese.
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The lifestyle spending does tend to creep back in when one is working. It takes some extra effort and organisation,like making lunches in the morning, or taking a coffee to work, or taking fruit to snack on. When time is scarce, these things can easily be let go and its so easy to buy takeaway, with the additional costs that soon add up.
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Laura Reply:
July 12th, 2011 at 7:44 pm
Hi Little Green Village. I do need to be more organised with taking snacks to work…and remembering my water bottle, which I keep forgetting. Good to see you back blogging too!
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Hi Laura, I’ve been out of the blogosphere for quite some time now, but it’s great to see that you haven’t given up. In fact, you seem more dedicated than a year or so ago when I was last on planet blog.
In reading your latest entry I see that your budget is based on 700/month initial rental. Have you decided on a location and/or type of property you will be looking for? I ask because if you’re looking at the Algarve, and you don’t need anything too large, I’ve a 1 bedroom apartment with pool in Carvoeiro and a 2 bedroom townhouse in Porches, both available for long let, and both priced at under 400/month. Availability is of course unknown, depending on occupancy, but if this area and these types of properties are possibilities for you let me know.
Keep up the good work and I will make renewed efforts to follow your progress.
Jim
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Laura Reply:
July 12th, 2011 at 7:42 pm
Hi Jim! Welcome back! At the moment we’re thinking Lisbon because of my husbands work situation….but thank you so much for the offer! If we do decide on The Algarve, and you have a place available, I’ll be sure to get in touch.
Good to see you back
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I think I’m going to Fail at our debt repayment for the year. It won’t be by much but I don’t see how we will be able to catch up at this point.
I love how you listed out how you are going to step up the plan so you will be able to reach your goal! Good luck!!
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Laura Reply:
July 18th, 2011 at 6:33 am
@Sandy Thanks! I wouldn’t see it as a fail……nearly missing a goal is much better than totally missing it
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