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Here is my Monday morning confession. I have been in a money slump for the past few months.
Since I graduated college, I have always set specific money goals along the way. From buying a house to paying off the mortgage or from maxing out my 401k and IRA to becoming a millionaire, I’ve always set goals for myself.
The problem is that I’ve accomplished all of the goals above.
Now that I’ve checked off all of my goals, I look around and am unsure of the next goal to set.
While reaching FIRE is definitely my long-term goal, that’s not necessarily a goal that I can experience on a daily basis.
Nothing Tangible
Sure, it feels great to look at my Personal Capital account and check out how close I am to reaching FIRE. But for the most part, I feel like my finances are on autopilot. There really aren’t any tangible short-term goals that excite me. When I was paying off my mortgage or maxing out my 401k, I could see myself moving towards those goals on a daily basis. That tangibility helped me stay inspired and continue on those paths.
My 2017 goal of increasing my savings from 65% to 70% just isn’t exciting.
Having reached all but #12 of the Twelve Pillars, I have been disciplined along the way. But now, I am in a bit of a holding pattern.
Moving Abroad
As I shared earlier this year, my wife and I are deciding whether to go overseas. While I would love to go overseas, I also love being close to our family. There is something special with having your children being able to interact with their grandparents on a weekly basis.
The best part of my son’s week is when I tell him he is going to see one of his grandparents. His reaction is pure joy. Thinking about him not seeing his grandparents is somewhat heartbreaking to think of.
I waffle back and forth when it comes to this decision. This may also be why I’m having such a difficult time deciding on our next financial goal.
Since going overseas is not a sure thing at this point, we have been saving cash with the goal of buying a home debt-free, whenever that might be.
Buying a Home
As I’m sure many can relate, the neighborhoods that we like don’t currently have any homes for sale, or if they do, they are out of our price range. Since we haven’t made a mortgage payment in 5 years, it’s very difficult to think about going back into debt.
And so, we wait.
Now don’t get me wrong. Our current home is adequate. However, we’d really like to move into a home with a yard for our kiddos to play instead of walking/driving to the playground every day.
Since my wife and I grew up seven houses down from each other, we both have a similar vision of the type of childhood home that we’d like for our children to grow up in.
A Crossroads
Right now, we’re at a crossroads. I’m trying to balance investing for the future while also having funds available to pay cash for a home today.
I hesitate to throw money into the market since I’d like the cash readily available if we are to buy a home. But everyday that the market goes up, it hurts just a little knowing that we’re missing out on the upside. Although, if the market drops all of a sudden, I won’t feel nearly as bad.
With all that said, I need to get out of this money slump. I need to come up with some tangible financial goals for 2018. Hopefully these goals will deliver me from the slump.
You can always try a super frugal month where you don’t buy anything unless you absolutely have to. You can try it and see where the edge of the savings rate really is. I would bet it is close to 90% with your house paid off.
Or you could try some more side income projects and try to maximize your side income. By boosting that higher and higher you can become financially independent even faster.
Justin @ Atypical Life recently posted…How To Invest In Cryptocurrencies
We found that focusing on our Net Worth helped when we were in a money slump. That allowed us to see progress while we were saving and waiting for other long-term goals to approach. And we also tried to give ourselves a break and not worry too much about what was going on 🙂 As long as we were still saving and investing, we tried to remain comfortable with things like the cash cushion that became our down payment, etc 🙂
Mrs. Adventure Rich recently posted…Net Worth Update – December 2017: $314,270.68 (+$8,231.85)
Thanks for sharing Mrs. Adventure Rich!!! I have to admit that I haven’t been looking at my net worth as much recently. So looking at the long term definitely will help adjust with some of the burnout I’ve been feeling 😉
Ohhhh I have a similar money slump. Honestly I didn’t think that existed. Money is awesome, what’s slumpy?! But no I get it now. I’m not having any new money goals pop out at me for 2018. I have more blog goals than money goals! :/
Hahhaha…like you I have more blog goals than money goals. I guess as long as I have some goals I should be good, right 🙂
We’re in the same situation and I find it very freeing to have reached our goals. Still, we’re in the process of buying land and we have to be mindful on housing costs too.
I also get your comment about not being in the market because we have money on the side too. But I don’t sweat it. When you have “enough” it doesn’t make sense to take actions that might possibly bring you “more” but don’t make you feel comfortable.
I don’t think you’re really in a money slump, to be honest. I think you’re just feeling a bit complacent. Go shake things up a bit! Do something kooky that has nothing to do with money!
Mrs. Groovy recently posted…Housing Costs in Charlotte, North Carolina
Thanks for sharing Mrs. Groovy!!! I think you’re right. I am a bit complacent. Now I just need to figure out exactly how to shake things up. Sounds like a good goal for 2018 🙂
Thank you so much for sharing your honest thoughts! I had a similar feeling after Mr. FAF started working. Suddenly, I feel like I lost interest in accumulating money.
We are not going on a spending spree or anything. We are frugal still. But I’m trying to find my lifelong passion other than saving money to FIRE.
I’m right there with you Ms. Frugal Asian Finance!!! I’m trying to figure out exactly what will ignite that spark like I had towards reaching FIRE. I’m still trying to figure it out 🙂
MSM, this is a great problem to have, but it’s still a problem. I have achieved similar goals as you too, except for the mortgage free part. I am taking my time to pay off my mortgage and would only do so if the interest rate is above 5%.
My top motivations now are as follows:
– increase my net worth by at least $100k per year.
– if I achieve that goal, it will be bumped up to increase my net worth by 10%
– if I also achieve that goal, shorten my FIRE target date by a year.
At this pace, I have already shortened my FIRE date by two years. Only about 7 more to go until I reach $2M.
Leo T. Ly @ isaved5k.com recently posted…The #1 Financial Goals That You Should Achieve
Thanks for sharing Leo!!! Those are awesome goals to have. I definitely need to sit down and re-evaulate things during the Christmas holidays but I definitely will use what you’ve laid out as a guideline 🙂
We try to have a mix of 5 year and current year goals. 2018 we hope to max out both Roths and increase 401k but we also want to go on two trips. We aren’t sure if we are going to move or renovate our basement bathroom.
Just trying to live in the moment and soak up all the time I can with my kids keeps me from getting slumps.
Budget On a Stick recently posted…It’s The Most Stressful Time Of The Year
Thanks for sharing!!! My wife and I definitely would like to go on some trips in 2018 if things work out. I definitely need to work on living in the moment a bit more. Great advice 🙂
Not sure if this helps, but my sister lived overseas for several years (her hubs is in the Army). We all kept in touch via video chatting, so her kiddos got to see everyone on a near-daily basis. It’s no replacement for the real thing, but it made the distance much easier.
Mrs. Picky Pincher recently posted…What A Frugal Weekend! December 3
Thanks for sharing!!! It’s definitely hard to think about since Pop Pop lives 10 minutes away, but the experience would definitely be fun. We’ll see what the future holds.
I tend to put my money on autopilot when this happens and focus elsewhere for a while. A fresh look later on results in new ideas and better short term goals.
FullTimeFinance recently posted…Opps, There goes the budget. Barcelona Vacation
Great vantage point!!! Things are going well so maybe it’s time to focus on something else. Like eating healthy and exercising consistently 🙂
Autopilot to pile up on excess cash. With the market arguably operating a high-level, I get excited about the buying opportunity I can have later. That thought takes me out of a money slump. 🙂
SMM recently posted…A Customized Budget Is A Good Thing
Hahahah…great point of view SMM!!! I definitely would love to get excited about buying opportunities in the future. Although my SIL likes to remind me that she suggested buying bitcoin will it was at $2k and look where it is now 🙂
I guess it’s a good problem to have in your case? 🙂 But I do get it. What about saving for a trip abroad instead of moving there right now? Or maybe a bucket list type goal (you may have to do some soul searching to find some items if you don’t have any). In any case, slumps are short-term usually so just be patient.
Tonya@Budget and the Beach recently posted…November Rewind: Gettin’ Dir-tay
You’re absolutely right Tonya!!! Slumps are temporary 🙂 There are definitely some trips I’d love to do. Although having two kids 2 and under make it a bit more difficult at times. Just need to convince the wife we can do it 🙂
We focus on net worth and set mini goals. I think next year we’ll set monthly type goals aimed at different things – like earning more money, cutting one expense from our lives, etc.
The road to FIRE is definitely long and boring once you’ve got stuff set up. 🙂 The key is to find things in the short-term to focus on so you don’t deviate from your path too much.
Dave @ Married with Money recently posted…What It’s Like As a One Car Family With a 26-Mile Work Commute
You’re absolutely right that FIRE is a marathon after you get things set up. Slow and steady wins the race and I need to keep pace 🙂 Thanks for sharing!!!
When you find success, I find it interesting as an individual to get re-motivated and set new goals.
You’ve found success, and now your priorities have changed. With kids, a wife, and financial freedom, you can do what you want. Enjoy it!
Erik recently posted…Using Education to Increase Income and Speed Up Time to Financial Independence
Thanks for sharing Erik!!! It’s interesting to see how priorities change in life and are altered. I definitely need to take advantage while I can 🙂
Haha I wish I was at your stage but I’m not even close! Sigh…
I also feel that way too sometimes… whether to hold cash or to invest bc I would feel pretty bad if markets continued to go up. But as what Warren Buffett says, the best thing about holding cash is you can view it as a call option with no expiration date! Idk how the housing market is in your area, but in your case, maybe you’ll have the option to get a great bargain at some time. Or if you change your mind and markets are heading south, you’ll also have the “call option” to buy assets on sale. Either case, you have flexibility. And that’s still considered as a solid investment
fin$avvy panda @ finsavvypanda.com recently posted…10 New Year’s Resolutions that Will Improve Your Finances for 2018
I have to admit I’ve never heard that “the best thing about holding cash is you can view it as a call option with no expiration date.” That is such a great analogy and one that I definitely need to remember. I love the line 🙂 Thanks for sharing!!!
I understand your dilemma about moving abroad. I would love to move overseas, but we are near my wife’s family so she’s reluctant to leave. In your case, since you have children, perhaps waiting a few years in your current location before moving abroad makes sense.
As for your goals and motivation, I agree with the other commenters that it’s a good problem to have, and that you may want to focus on your net worth. Besides that, perhaps it’s time to prioritize goals in other parts of your life.
Gary @ Super Saving Tips recently posted…17 Weird and Wacky Ways to Save Over $7,000 A Year
Thanks for sharing Gary!!! I definitely agree it’s time to start looking at other aspects of my life to potentially optimize. There is always room for improvement and I have a bunch to do in other areas 🙂
Ooh, moving overseas sounds amazing, but I totally get the reluctance to leave close family. We aren’t too long a drive from family, but the idea of living someplace that required a long flight in order to visit was not appealing. I know you guys will come to the best decision for you.
I’m in a different financial slump…I miss having a salaried job! Staying home with the kids has a lot of benefits, but I dislike the feeling of not contributing to our nest egg.
Mrs. COD recently posted…Resetting Healthy Habits
Thanks for sharing Mrs. COD!!! Mrs. MSM dealt with that for awhile but she came around to the long term financial investment that she’s pouring into our children and that’s going to hopefully pay off in big time dividends down the road for us 🙂
I’ve hit money slumps and let them go for a while. Generally it means that everything is on autopilot and going relatively smoothly. I use that time to focus on other areas of my life and wait for inspiration to come back on the money side.
Matt @ Optimize Your Life recently posted…Stepping Off the Path of Least Resistance
Thanks for sharing Matt!!! It definitely sounds like I need to take a break and look at some other areas in the meantime. I definitely know there are other areas that I should/could be looking at 🙂
As others have mentioned, I typically focus on other areas (e.g. exercise, learning new things) when the finances are humming along. That’s part of the reason I haven’t been posting on blogs lately – just exploring other things.
On the financial side, I have started to dabble in real estate crowdfunding. I keep thinking that we should consider rental properties at some point, but we just aren’t willing to commit to that yet. It does keep things interesting to learn more than simple index fund investing.
Mr. Need2Save recently posted…10 Things To Consider Before the Sun Sets on 2017
Thanks for sharing Mr. Need2Save!!! There is so much to explore out there. I definitely need to look into a couple of things that I have been neglecting. Great points and I definitely need to look at real estate investing as well 🙂
Good problem to have I must say. My only suggestion is not much different from what others have said, and that is for you to try something totally new, not necessarily money-related. I don’t have any specific suggestions, but I’m sure you will find your rhythm!
I’m trying to figure out exactly what it is. I’m trying to exercise more but I have to admit that I still hate exercising even though I’ve been pretty consistent over the last year. I need to figure out something that gets my juices flowing 🙂
I hit the same slump as you, but a little later in life. As the old saying goes, it’s not about the destination, it’s about the journey. Once you get there, it’s always a bit of a let down. That said, I found I just needed to relax and enjoy the fruits of our accomplishments. Your life will change and new personal finance goals will naturally evolve. Just remember to enjoy the journey. Tom
Tom @ Dividends Diversify recently posted…Partying Like It’s 2007 (Part 1)
Thanks for sharing Tom!!! I definitely feel like at times my head is down too much and I miss parts of the journey. I definitely need to look up more often and enjoy the scenery. Thanks for providing great perspective 🙂
Like some of the other commenters have mentioned, I’d try and focus on something else, perhaps even do something silly with a little bit of money. Something that’s freeing and out of the norm. Shake up the ‘usual.’ Maybe that means unplugging from the digital world for a weekend or booking a fancy trip. Choose something else to look forward too and go get/do that.
I have to admit that last weekend I was a bit burned out from writing articles and pushed through a fiction book for the first time in a long time. It was a pretty great weekend 🙂 Need to have more of those!!!
I would agree with most of the commenters above, its time to focus on something else.
Since you have most of your finances on autopilot right now. Now is the time that you exercise your real finance superpower: patience.
I can’t remember the exact quote but there is a quote out there about investing that goes something like: “it’s not in the doing that I made my money but in the waiting”
You are crushing it right now but so has everything else. Real estate is up, stocks are up, bonds are up, everything is up so its hard to differentiate your success from the success that everyone else is having. People are making fortunes investing in bitcoins. FOMO is starting to kick it. If you look online, it seems like everyone is reaching for FIRE.
Take a deep breath and appreciate 2017 for what it has been for finances: Awesome. We don’t always get these years. Soon enough the amplification will be going the other direction.
It’s time to put 2017 in the books and go back to your goals list. Start on 2018 and making sure everything is headed in the right direction.
If you are eyeing a new home, with your savings rate, you will have a down payment on one of those homes with a nice yard before you know it. Payments still too high with 20% down payment, just keep saving and put more down to have a smaller mortgage.
Still in a slump? Set a goal for a new skill at work. Double down on exercise goal, or start cooking more at home. Get a jump start on your new year resolutions.
I am glad to see you are crushing it but there is always something else we can work on.
Doctor in Debt recently posted…Five Minute Friday: Rapid Response Report
Thanks for the great kick in the butt!!! You are absolutely right that 2017 has been a great year. As Warren Buffett likes to say “Only when the tide goes out do you discover who’s been swimming naked.” Hopefully I’ve done enough to stay out in the tide 🙂
Sounds like your in the complacent stage. Maybe you should do something different like go on a vacation abroad where its accommodating for kids. Or find a new hobby, something that doesn’t relate to money.
Kris recently posted…Financial Mistakes Part 2 – The College Years
Thanks for sharing Kris!!! I definitely agree it’s time to unplug 🙂 Now to convince my wife where we need to go!!!