Over the last couple of years I’ve posted our financial goals on My Own Advisor. I do this because:
- 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.
So those are the academic reasons. The other reason? Doing this stuff works. Here are our financial goals for this year:
- Maximize our TFSA contributions.
- Put $300 lump sum payments on our mortgage every month.
- Save $5,000 for home improvements.
- Do not incur any new debt.
As of this post here’s where we are:
Maximize our TFSA contributions.
Done! We filled up our TFSAs earlier this year but with the budget announcement to increase the contribution limit to $10,000 per adult for this account, my wife and I have $9,000 more in contribution room to add this year if we can tackle it. So, we’ve met this goal but we’ve decided to try and maximize this account, again, for the second time this year. It’s definitely a big stretch assignment for us.
Put $300 lump sum payments on our mortgage every month.
So far, so good. Our mortgage is up for renewal later this year. We figure the less debt at the time of renewal, the better.
Save $5,000 for home improvements.
So far, not so good. We’ve only managed to put away about $1,000 year to date. Pathetic but oh well.
Do not incur any new debt.
To date we have not incurred any new debt and we continue to pay off our credit cards every month. We have no intentions of taking on new debt because our mortgage debt is enough for us and that won’t help us get to financial freedom in another 12-14 years if we do.
Note: We have not included RRSP contributions as a goal in 2015 since those contributions are already a steady monthly habit. I’ll have a few more updates on our progress later this year.
Got any comments for our 2015 financial goals? What progress are you making?
Mark
My name is Mark Seed - the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I'm looking to start semi-retirement soon, sooner than most. Find out how, what I did, and what you can learn to tailor your own financial independence path. Join the newsletter read by thousands each day, always FREE.
This is exciting. I love when it’s time to create new yearly goals. Paying down our mortgage early was a major goal of mine and my husband’s. My husband created an amortization schedule for us in Excel that allowed us to play around with lump sum values so see what it would do our schedule (how much sooner we could pay off). It was a huge motivator! Not sure if this something you have done, but I would highly recommend!
I use a few different calculators myself to see how we can collapse our mortgage. Hopefully only 5-7 years away. Thanks for the comment Jess and good luck on your goals.
I just went through a renewal process, and it’s pretty exciting in a sense that you see a huge change in how much of your money starts going towards principal as opposed to interest. If prior to it only about 60% of our payment was going towards principal – and that’s after raising the payment several times – after refinancing whopping 3/4 of our payment is going towards principal!
What did you renew at and for Underdog? I’m looking forward to the day the debt is retired. I suspect we’ll look at work entirely differently!
Our RRSP goal got cannibalized when the TFSA limit increased.
Still plan to maximize everything, but will take longer than anticipated.
I hear ya. We contribute to RRSPs now/still because we’ll definitely be in a lower income bracket in retirement (than now) but maxing the TFSA has always been a must in my opinion.
Mark, you’re doing well. Maybe with all your financial goals something has to give a bit, like your home reno fund.
We’ll be topping up the TFSA’s at the end of this month. It will be interesting to see just what happens (if anything) to the limits later this year.
Something definitely has to give this year Deane…just not sure what yet! Hopefully the Liberals don’t do anything with our TFSA!
Great job Mark!
I didn’t set any formal financial goals for myself so technically I’m on track. I did manage to max out my TFSA including the extra $4,500 which was a huge positive for me.
Maxing out the TFSA is great Barry!
We’re just about to maximize my TFSA limit for this year ($10,000) in total. That felt like a big accomplishment. Now time to focus maximizing Mrs. T’s TFSA.
Geez, maxing out your TFSA and hers ($10,000) would be impressive…so well done!
Great job on staying the course without incurring any new debt this year. I wish I could say the same. I’ve been swamped with updates to my home. I’m happy about the TFSA contribution increase and I’m thinking about moving some of my non registered assets over to max out that account.
Our spring has been expensive, summer will be no different. I’m happy about the TFSA increase as well but I’m not sure we’ll find the money to fund it in 2015. We’ll see! Maybe the blog can take off to help me? 🙂
Nice! Without question, maximizing the TFSAs for my wife and I was top priority. Hopefully this new limit stays the same and Trudeau’s plan to reverse it to original limit never happens. Re : yer mortgage term that’s up later this year, it could be a good time to lock into a good rate and longer term in case interest rates start rising.
Things are coming along but it’s a balance for us for sure…save a little, spend a little…hence the lack of progress on the home improvement fund. Ah well. If the Liberals reverse the TFSA decision there will be an uproar!! 😉