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Invest at least 55% of net pay, excluding what’s contributed to 401(k):

• Ensures I’m investing at least 55% of my net take-home pay into some kind of investment.
• Investments that count towards this goal are Roth IRAs and Taxable Brokerages.
• 401k contributions are not included, as they are taken out of my paycheck.

Contribute Federal Maximum into Roth IRA:

• This ensures I’m contributing the federal maximum allowed towards a Roth IRA.
• For 2020, the maximum contribution is $6,000.

End the year with average 8 months expenses in bank accounts:

• Ensures an emergency fund exists for unexpected events.
• Calculates minimum required emergency fund by adding up all expenses for 2020, divides by 12, then multiplied by 8 to get average expenses.
• Some expenses are excluded or reduced as they would likely not be incurred in an emergency scenario (charity contributions, trips / entertainment, and electronics).

Stretch Goals:

• A more aggressive version of the “primary goals”.

How Results are Calculated:

• Green: No worries at this time meeting the goal, based on actual and planned metrics. Or, goal is within 2% of target.
• Yellow: Some worry about achieving the goal, planned budget shows goal will not be met. Or, amount projected is within 5% of target.
• Red: Goal is at risk for being met. Planned budget shows major changes needed for goal to be met. Or, amount projected is less than 5% of target.