The current status of the goals are on the menu, or by clicking here.  The goals are:

Invest at least 40% of net income (excl. 401k).

This goal help ensure that as income increases, a proportionate amount of money is put into my investment accounts.  This is better than a fixed amount because it helps me stay diligent about investing income as it’s earned, as opposed to concentrating on a fixed amount.  In addition, it provides flexibility to still meet a goal if income drops for any reason.

Contribute Federal Maximum into Roth IRA.

This is a carry-over goal from 2016, but makes sure I invest the maximum allowed to a Roth IRA ($5,500).

End the year with average 8 months expenses.

Since having an emergency fund remains important, and to help prevent me from “cheating” to meet the other goals at the cost of draining the bank accounts, this goal makes sure that I always maintain an emergency fund based upon actual expenses.  Note that I have a number of exclusions because should income stop, there’s no way I’ll be spending in those categories, and thus should not count as a “normal” expense.

Stretch Goal – Invest at least 45% of net income (excl. 401k).

This is a stretch goal because the 45% of net income is difficult to attain.  I want to eventually try to invest a minimum of 50% net income, so having stretch goals helps me get that target.

Stretch Goal – End the year with average 12 months expenses in bank accounts.

While some would argue that having 12 months in an emergency fund is crazy, I don’t think that’s true.  While I would not care to have more than that amount in cash since it’s not making me any money, it sure comes in handy in case of a sudden job loss and cushion against unexpected expenses.