To keep me honest but also focused, I post my financial goals on My Own Advisor. One thing I’ve learned over the years is I have a much better chance at realizing my goals if I keep tabs on them, and often.
Here’s a recap of our 2014 financial goals:
- Continue putting $300 lump sum payments on our mortgage every month ($3,600).
- Maximize both Tax Free Savings Accounts (TFSAs) ($11,000).
- Increase Registered Retirement Savings Plan (RRSP) contributions by $200 per month ($2,400).
Here’s our report card year-to-date.
Continue putting $300 lump sum payments on our mortgage every month ($3,600) – on target
Since January 2014 we’ve been meeting this goal. By making mortgage pre-payments automatic, we never see this money. Keeping some of our income out of sight is helping us kill our mortgage debt more aggressively. We hope to have our mortgage debt under $200k soon. If we keep up our pre-payment schedule, all things being equal, I’m predicting we’ll be completely debt free in less than 8 years.
Maximize both Tax Free Savings Accounts (TFSAs) ($11,000) – done!
I have some stocks that pay dividends in a non-registered account so I moved some holdings into my TFSA a few months ago. My TFSA is now out of contribution room. I suppose this is not really saving money per se, more like a swap of monies already saved. I hope to make up for if/when we surpass the goal # 3 below. Just last week, we saved enough money from late-2013 until present to max out my wife’s TFSA. Her account is now out of contribution room. I’m not sure what to buy yet in this account but I suspect it will be either an equity indexed product or a REIT since the prices for the latter are still decent.
Increase Registered Retirement Savings Plan (RRSP) contributions by $200 per month ($2,400) – on target
We recently cut the home phone cord (something I intend to write about soon) and with more small changes in 2014, I think we’ll be able to save more money and contribute to these accounts. We currently contribute a few hundred bucks a month to each RRSP and there is no intention of changing that, only increasing this amount during the course of the year. So far, we’re on target to meet this goal. Our hope is with a paid off home in a few years and maxed out RRSP accounts, we’re on our way to financial freedom.
Three simple goals with the same overarching goal as last year, do not incur any new debt. One goal down and two more to go. Stay tuned for more updates.
Got any comments for our saving and investing goals for 2014?