What is your base camp.

[maat55]

I think that an important part of a financial plan should include, what I think of as an base camp. This will vary from person to person, but many will have some of the same parts.

Before I tell you what my base camp is, I would like to define my base camp as the priorities I feel are the rock of my finances. This to me means that before I allow myself luxuries, I feel these priorities should be met. Now, I'm not saying I will not let myself have a chocolate shake before these things are met, but I am diligent to achieve them.

My base camp is in order:

To be debt free (Not including house) Done.
Have an EF of 10,000 Done.
Term Life ins. Doing
Invest at least 10% Doing
Building fund ( An important future need for my business) Doing
5,000 wedding fund for my last daughter. Doing

Earlier this year I cut my cable to basic, resigned my membership to golf club, lowered grocery bill, cut back on entertainment, Wife colors her hair in house, we together cut back a lot of misc. spending to focus on reaching this base camp.

After my daughter is married and the building issue has a long term resolve, they will be dropped. Until then, we will not go on any big vacations, buy any whatevers etc.

To add to this subject, I think people should have a what if list. That will instantly dictate a change in your spending habits.

What if I loose my job.
What if I go to the hospital.
Etc.

What is your base camp? Those things that come before anything else.

[Gailete]

Base Camp? Never thought of it that way.

Mortgage pay-off in about 7 1/2 years - Doing
Keep Medicare insurance premiums always paid up to date - doing
Keep a well stocked pantry - Doing and always in process
Pay all utility bills and cc bills on time (no late charges) - Doing
Emergency fund-Doing
Term life on hubby-Doing

Work on finding the best way to heat and cool house and avoid excess utility bills is a work in progress.
Living the frugal life is a work in progress.
Roll excess into savings as we get it is always a work in progress

We haven't achieved any huge financial goals at this point but hopefully in 8 years we will have our mortgage for our house (including workshop for my self employed spouse) paid off and a rental property completely paid off (income of which is part of our retirement plan). Hopefully all cc paid off in 12-18 months and keep to cash payments which is less stress inducing and better for my poor health.

The what ifs have happened. I'm disabled from a high paying nursing job. My husband has chronic health problems with NO insurance. We work hard to make ends meet.

Gail

[jIM_Ohio]

Base-

spend less than we earn every month and year.
invest 10% of income for retirement at age 68
emergency fund 1 w/ 3 months expenses
emergency fund 2 w/ 3+ months of expenses
enough insurance spouse can cover remaining bills
follow a reasonable budget for basic spending patterns
----
above base
save 20% for early retirement (age 52-55?)
create a budget which accounts for less frequent purchases (and add to EF2 above)
keep taxes in 15% bracket if possible
max the HSA account
pay off the house 2nd mortgage and 1st mortgage

[LivingAlmostLarge]

Save at least the maximum in all retirement accounts when available
emegency fund of 3 months cash
1 month liquid cash
taxable savings of at least 3 months cash
save for known long and short term expenses (car repairs, replacement, home repairs, etc)

[Snave]

1) Max retirement accounts - 401k's and Roth's - Do every year
2) Save additional money outside of 401K for retirement so as to retire early (the screw you I quit account!) - doing - this also doubles as our EF since there is a significant amount in it and it is above and beyond our retirement
3) Fund kids full college education - still having kids so don't know how much this will end up being, but currently saving 5K a year for college in 529
4) Fund Term Life Insurance - enough that if I pass my wife will be taken care of (But not enough so that she can marry some personal trainer and live in the lap of luxury! I don't want to give her any ideas.) Done
5) Keep on living below our means. Constanly doing.

[JinCO]

1) Build 6 month EF
2) Pay off student loan debt
3) Fund kids college fund
4) Max 401K investing
5) Invest additional 10 - 20% of income towards early retirement

[MonkeyMama]

I am not exactly sure I am at my base camp right now. It is something we left when we have kids and we will have to get back to before we consider living on one-income on a more permanent basis. Though I feel like we are very close. The closer we get the closer I feel to the financial security we felt before kids. Which consisted of the following:

1) Never rely on 2 wages for the basic/necessities/long-term contracts
2) Limit mortgage payment to 35% one income.
3) No other debt (just mortgage)
4) $15k cash in the bank (efund)
5) 10% gross income to retirement
6) life insurance, disability insurance, health insurance, etc.
7) No worries about big one-time expenses (set aside monthly for). No worries daily bills.

[disneysteve]

1) Max retirement accounts - 401k's and Roth's -
2) Save additional money outside of 401K for retirement so as to retire early
3) Fund kids college education
4) Fund Term Life Insurance
5) Keep on living below our means

Can I just copy yours?
I did remove the word "full" from #3, though. I'm not sure we will (or want to) cover it entirely.

[Snave]

Steve, I put full in there as it would be a goal. I would love to be able to do that. I was fortunate that I didn't have loans when I left college. I also understand the flip-side and kids having to pay some of there way. I can really see that rationale, but I still would like to pay it in full if possible. I guess it will aslo come down to a private or public school. If they go to a public school, it would be less expensive and easier to do. Med school is on there own dime, however!

[maat55]

[QUOTE]

1) Never rely on 2 wages for the basic/necessities/long-term contracts
QUOTE]

This is one of my most important fundamentals to live by. Good mention.

[stressedmama]

1. Save at least 10% in retirement accouts 401K - doing a little better then this currently
2. Have EF of 6 months expenses - done
3. Saving for kids 529s - doing but could do better
4. Insured - Health, Dental, Vision, Life - done
5. Have a will - working on
6. Living below means - doing but it's pretty tight right now