Welcome to my final financial goals update for 2016…
Earlier this year we made a bunch of assumptions and then we worked through those assumptions. How did we do in 2016? Did we fail? Let’s recap our goals and find out.
- Maximize our Tax Free Savings Accounts (TFSAs)
I believe the Tax Free Savings Account remains a gift to all adult Canadians regardless of their income status. Whether your savings are for short-term expenses, medium-term major purchases or long-term investment purposes – my advice is to open and start using your TFSA. If you don’t know the rules of the TFSA yet please read this post here. In 2016 we maxed out both TFSAs early so I’m proud to say we nailed this goal. In case you are interested, we use our TFSAs as one of our retirement accounts. You might want to consider that for wealth building yourself. I suspect more folks would use their TFSA the same way we do if they changed the name of this and other accounts to be more clear about their true power.
- Make double-up mortgage payments
I continue to say this on my site: debt sucks. My friend Preet goes even further on this than I do:
What debt do we have?
Well, we don’t carry a balance on our credit cards. That’s nuts.
We don’t have a car loan. Why would you when you can drive this beauty?
We don’t have debt on our line of credit.
We have a mortgage. That’s it. That’s enough. Even though our mortgage remains in the six-figures I calculated if we keep after it with lump sum payments over the next five years we should be nearly mortgage free.
Back to this goal, we accomplished this.
- Save $5,000 for a future trip
Investing for our financial future is needed but we don’t sacrifice fun. Earlier this year we spent a week and a half in British Columbia. Here’s how you can save and spend freely on vacation.
Throughout the year we saved some money for another future trip. We hope to do some international travel in 2017 to Europe. It was a good year for travel. We met this financial goal.
As you may appreciate by now we try and have a few focused financial goals but that’s it. We don’t agonize over the great TFSA vs. RRSP vs. mortgage paydown debate. We don’t get hung up on whether or not to snowball debt. I couldn’t care less about the damn Latte Factor.
We have a savings plan that focuses on maxing out our TFSAs each and every year. Spoiler alert – 2017 will be no different.
We keep steady monthly payments flowing to our RRSPs. This helps keep my RRSP maxed out and allows my wife to get closer to her goal of maxing out her account within the next year or so.
We make lump-sum mortgage payments to slay our mortgage.
We have another savings bucket for fun. Life is short.
Simple goals with simple plans for simple people. Yes, I just called myself simple. But simple works.
Thoughts and comments on our saving and investing goals for 2016?