I've decided to set high investment goals for 2007 in order to increase my net worth and investment portfolio balances.
My goals are as follows:
1. Increase my Net Worth by $10,000 in 2007.
Due to student loans and credit card debt, my current net worth is in the red. I plan to contribute all my earnings from wages, investments, and blogging to paying off my credit card debt and student loans as soon as possible. To achieve this, I will need to generate $11,000 – $12,000 of cash flow in 2007. It's a great challenge for a broke college student, but I've found that goal setting can be incredibly motivating and inspiring.
2. Max out my Roth IRA contributions by April 2007.
I have until April to max out my yearly Roth IRA contributions. Once I begin working next week, I can contribute 75% of my first 5 paychecks to reach my goal by mid-February. Once I max out my IRA, compounded interest over time will take care of itself. Maxing out your Roth IRA is a smart way to plan for retirement because your earnings grow tax-free.
3. Contribute $200 a month to my ShareBuilder Portfolio (Reduce contributions to $150 during School Months).
For 2007, my stock portfolio has taken a backseat to my Roth IRA. The stock market has ignored historical trends in the 4th quarter, and I feel a bear market lies in the near future. If you're looking for stock picks, do some research on foreign companies. Foreign stocks should outperform domestic stocks in 2007. Look to China, India, and South Africa for investment ideas since these 3 nations are projected for high single digit GDP growth next year.
Now that my goals are in place, I must focus and achieve them. All my goals are written on a piece of paper, and attached to my bedroom mirror so I see them every waking day. Positive reinforcement yields great results.
For more advice on goal setting, My Wealth Builder wrote an excellent post on how to define the perfect goal.
What are your financial goals for 2007?