2015 Financial Goals

Over the last couple of years I’ve posted our financial goals on My Own Advisor.  Some fellow bloggers have noted this might be a bold move but I don’t consider it too daring.  Other bloggers have reported on their goals for certain reasons but here are my reasons for doing so:

  • I believe all goals should be clear and transparent,
  • I believe all goals should be realistic,
  • I believe all goals should be measured, and
  • I believe all goals should be documented.

In my day job and industry, if things are not documented they didn’t happen.  Making our goals clear, realistic, monitoring them for progress and writing them down should increase our chances of hitting the mark.  Except for one objective we nailed all our financial goals last year.  Did we get lucky?  Maybe but I would like to think we realized our 2014 financial goals because our objective-setting and monitoring processes are working.

So, 2015 will be no exception folks and without further ado here are our 2015 financial goals.

  1. Maximize our TFSA contributions.
  2. Increase our mortgage payments by $200 every month.
  3. Save $5,000 – $7,000 for home improvements.
  4. Do not incur any new debt.

I did not include our RRSP contributions as a goal since those contributions are already fixed and we have no intention of changing them in 2015.

I’ll update our goals if our plan changes during the year.

Nothing fancy I know but when it comes to saving and investing I don’t think anyone needs to make things more complicated than necessary.  As a reader though, you can be the judge.

Got any comments for our saving and investing goals for 2015?

What are your thoughts about us saving AND killing debt at the same time?

28 Responses to "2015 Financial Goals"

      1. Good work but he already has the tax headache … but it’s gone after this year when you do your taxes.

        By journalling into a tax free account, you effectively created a sell at the rate on the day of the journalling and you have to deal with the capital gains, dividends and ACB from distributions.

        I just sold my REIT in non-registered too to minimize tax headaches but I have had it for 5 years … 🙁 lots of math to get organized in a spreadsheet.

        Reply
        1. By journalling into a tax free account, you effectively created a sell at the rate on the day of the journalling and you have to deal with the capital gains, dividends and ACB from distributions.

          Yup, deemed disposition.

          I think you’re smart to sell your REITs non-registered. If you’re going to own REITs, go registered accounts and avoid the tax headaches for sure as you well know. We all live and learn, believe me, I have a long list of mess-ups.

          Thanks for comment as always Passive!

          Reply
  1. Nice looking goals, Mark. My wife and I set a similar one — that we want to put down extra money each month in order to make extra mortgage payments this year. We are aiming for two extra payments per quarter, so hopefully that will help us in the long run.

    R2R

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  2. “Increase our mortgage payments by $200 every month.”
    Is that +200 in Jan, +400 in Feb, +600 in Mar…etc? Or increase payments by 200 in Jan and hold steady from then?

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  3. I saw your 2014 goals and now, after seeing your 2015 goals, it’s interesting to see a compounding effect taking place in your goals. If I’m reading correcting, you’ll be maintaining the additional principal payment of $300/mo from your 2014 goals, and adding $200/mo to that number going forward. That’s pretty impressive!

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  4. Those certainly are clear, realistic and measurable goals. Not adding new debt is binary — you either succeed or not.

    Depending on your mortgage interest rate, adding just a little principal payment every month would make a big difference in the long run. (Our rate is fixed at 4.3% and we pay $315 extra per month).

    Good luck on reaching your goals in 2015!

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    1. Thanks for the encouragement. I think our blend of killing debt and saving at the same time should work out. Time will tell if our strategy is correct 🙂 Good luck for 2015 and stay in touch!

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  5. Kudos on setting goals and posting them publicly Mark.

    100% right on doing both the saving and the mortgage speed pay down. Exactly what I did and it worked.

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    1. Thanks Deane. Trying to do all the right things and to be honest, I’ve learned from others. I appreciate you and others sharing your story and what worked and what didn’t.

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  6. I always considered that paying off a mortgage was a risk free return so if you consider that the interest avoided is equivalent to a 5-6% riskless rate of return before tax (even at todays very low rates)-not available anywhere else, so I concentrated on paying off the mortgage first. I used RRSP contributions solely as a cash flow tool (if I needed some extra cash in the first few months of the year I’d do a contribution to make sure I got a tax refund). That worked for us as both my wife and I had fairly secure jobs and DC pension plans through work-admittedly a pretty good setup. Now-no mortgage, so we can do more aggressive investing. It has worked out so for in our circumstances.

    Reply
    1. Agreed Keith, I also see mortgage payments as a guaranteed rate of return.

      With no mortgage, you’re in great shape, you can focus on investing which must be a nice feeling. 😉

      My wife and I still have some fat mortgage debt but it should be killed in 6-7 years. We figure a combination of killing debt and investing will serve us well over the next 5-10 years; diversifying our assets this way.

      Thanks for your comment – have a great weekend! #GoSens

      Reply

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