Signposts of Progress

Along the way toward realizing your long-term goals, it can be helpful assess intermediate goals and signs of improving wealth.  Hopefully, you are already down this list, but here are 7 signposts of progress toward reaching your ultimate goal:

  1. Pay off credit card balances every month.
  2. Build emergency reserves of 3 to 6 months worth of bills.
  3. Get your savings plan up and running and align it with your goals.
  4. Reach the point where a mortgage is your only debt.
  5. Plan to have your mortgage paid off by your retirement date.
  6. Achieve a positive Liquid Net Worth when your investments exceed your debt level.
  7. Reassess your goals.  Have they changed?  What does it mean for your future nest egg size and savings rates?