BHAG. That’s Big, Hairy, Audacious Goals. (Or: Big, Hairy-A## Goals, depending on whom you ask. But this is the family-friendly version!)
Anyway, I never heard the term until I read Switch: How to Change Things When Change is Hard by Chip Heath and Dan Heath. The idea is that these “stretch” goals inspire us to greater success than less ambitious ones. So, to start our financial makeover, Mr. Smith and I thought about what we want our money to be able to do for us. At this point, we are simply allowing ourselves to dream, saving the “ifs” and the “how?” for later.
Here are our goals, listed in order of when we would like to achieve them:
August 2014: Travel to the East Coast for a family reunion. Estimated cost: $7000.
2015: Replace our minivan with a 4WD vehicle, such as a Suburban. Backpacking is one of Mr. Smith’s great joys in life, and he looks forward to the day when the whole family can join him on these trips. A 4WD vehicle with good clearance is better suited to driving on forest service roads than our aging minivan, and we’ll need to be able to seat seven. We’d like to be able to pay cash for this. Estimated cost: $25,000 used.
Summer 2015: Take a road trip around the western states. Estimated cost: $2500.
September 2016: Relocate to Europe for the school year. This is a stretch goal, for sure!
September 2017: A Smith starts college; Mrs. Smith enrolls in nursing school. We’d like to be able to help A with his expenses (how much is TBD) and pay cash for Mrs. Smith’s tuition (approximately $12,000 for the two year program) and the necessary child care.
3-5 years: Finish home improvements: replace windows, countertops, kitchen and bathroom floors. Install gas fireplace, upgrade insulation, complete misc. electrical work.
Sept. 2019: B Smith starts college. As with A, we’d like to be able to help, but don’t know how much.
7-10 years: Move to a water-view home with a large lot and plenty of guest parking.
2023: Throw an amazing party for our 25th anniversary.
2024-2027: C, D, and E start college. Yikes!
20 years: Convert home to a bed and breakfast.
20+ years: Have the option to retire comfortably at age 60. In all likelihood we will be happy to work longer, but we want the option to retire if our family situation calls for it.
Next Up: Can we do it all?