Welcome to my third financial goals update for 2016.
All plans remain nothing more than guesses. However it’s the process of planning, making some educated guesses, monitoring how those guesses turn out and revisiting the outcomes to learn from them – that’s more important.
Let’s recap our goals for this year 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. Our TFSA is maxed out – which feels great. We’ve actually started to save a few hundred bucks already for 2017 TFSA contribution room.
- 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 – and we do. We don’t carry a balance on our credit cards. We have a car loan that costs us just over $400 per month. This loan is done in another four months but we don’t really worry about this payment. This is because we figure we’ll always be saving up for or paying for a car for many years to come. At some point in our future though, we might only have one car, which will help our operating expenses.
Beyond car payments our largest debt payment focus is our mortgage – and rightly so. 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 year-to-date.
- Save $5,000 for a future trip
Investing for our financial future is needed but you gotta live now and then – otherwise life is just plain boring. Over the last few years we’ve travelled to Costa Rica and Scotland. This year we’re going to do some wine touring in British Columbia for a week. (Most of that trip is already paid for (flights and accommodations – a future post to come about how we did this)). We’re currently trying to save $50 – $100 every few weeks for a winter trip. We figure a sun destination will cost us about $3,500 so we’ve got some saving to do this fall.
I’ll keep you posted on our plans.
Thoughts and comments on our saving and investing goals for 2016?