Welcome to my second financial goals update for 2016.
I’ve always liked this napkin-drawing from Carl Richards because it’s very true.
All plans in life are basically a set of assumptions. This makes planning in our lives important for two key reasons – you set expectations for what you think might happen and you have a baseline to work against when those expectations don’t happen.
My wife and I feel goal setting and monitoring our goals every year are helping us get to where we want to be – financially free.
Let’s recap our goals and see where we’re at as of this month.
- Maximize our Tax Free Savings Accounts (TFSAs)
The TFSA remains a gift to all adult Canadians regardless of their income status. If you don’t know the rules of the TFSA yet please read this post here.
We recently maxed out both of our accounts for 2016 so we’re out of account contribution room. Although it’s not an explicit goal for 2016, we’ve started to save some money for 2017 contributions.
- Make double-up mortgage payments
I continue to say this on my site and it’s worth repeating again: I don’t think there’s an absolute right or wrong way of tackling debt. We’re fans of getting rid of all high-interest debt first. That means we strive to never carry a balance on our credit cards. We have a small car loan on the books for another 6 months but we don’t really worry about it. We figure we’ll always be saving or paying for a car at some point in our lives. We tend to sweat the bigger stuff – our mortgage. Our mortgage debt remains in the six-figures. If we keep after it though we could potentially retire the mortgage by the end of 2020. We continue to make double-up mortgage payments throughout 2016. So far, so good.
- Save $5,000 for a future trip
Investing for our financial future is needed but you gotta live. I don’t mean YOLO (You Only Live Once). Just spending within reason.
Last year my wife and I spent two weeks in Scotland. This year we’re making plans to do some wine touring in British Columbia. This winter, we’re making plans to travel south – I’d like to visit Panama or go back to Costa Rica. We usually save the money for trips in advance, so this is where this goal comes in. We’ve got about $2,000 saved so far and we hope to save more money for trips later this fall.
I’ll keep you posted on our plans.
Thoughts and comments on our saving and investing goals for 2016?