2017 Financial Goals – November Update
2017 has been a blur…
December is now around the corner. That means we only have a few weeks left to realize these goals.
- Do not to incur any new debt.
- Maximize our Tax Free Savings Accounts (TFSAs).
- Make double-up mortgage payments.
- Save $5,000 for a vacation.
- Save $5,000 towards a new car.
- Top up our emergency fund.
Since our last update we’ve been busy saving (and spending) our way towards these goals. With 2018 inching closer here is where we are at…
- Do not to incur any new debt. I had doubts on this one earlier this year because I wasn’t sure if we could afford a newer car. See goal #5. Year to date, we have not incurred any new debt – so goal accomplished (so far). The only debt that remains at the time of this post is our mortgage. Now we need to get through Christmas shopping debt-free!
- Maximize our Tax Free Savings Accounts (TFSAs). Goal accomplished! We maxed out our 2017 TFSA contributions in January. We have the same goal in six weeks for 2018.
- Make double-up mortgage payments. Goal will not be accomplished. You may have read about our housing dilemma and we continue to work through that. Do we sell and buy a similar detached home in Ottawa? (No, because we can’t afford that – we’ve been priced out of the market for city single family homes.) Do we sell and buy a semi-detached home in the city? Maybe although that’s at the very top of our budget. Do we downsize from this house and buy a condo instead? Potentially, that’s our leading option right now. What does this have to do with our double-up mortgage payment? We’ve stopped it. While we continue to make more than the minimum payment on our mortgage we’ve turned down our double-up payment privileges. Over the last few months we’ve started to save up some money (and will continue to do so) for future moving costs or other home needs. When are we moving? No idea, but hopefully not this winter. I hate moving in any weather let alone winter…
- Save $5,000 for a vacation. Goal accomplished! Our trip to Portugal occurred in October this year and it was two weeks of international bliss. Here are some photos:
We tend to save up for our trips in advance. This way, we don’t have any financial stress when on vacation. We hope to take another international trip in 2018. Destination unknown right now. Saving for that will start in early 2018 after the Christmas bills are paid for and just as importantly, after our TFSAs are funded.
- Save $5,000 towards a new car. Goal accomplished! So far, so good with the 3-year-old Mazda now in the yard. We hope to own this car for another 10+ years.
- Top up our emergency fund. Goal accomplished! We keep our emergency fund at this amount. We’ll probably increase it by $1,000 in 2018 (and every year going forward) to fight inflationary costs and build our cash wedge for retirement.
Not too bad but we won’t hit every goal.
What about RRSP contributions?
They are no longer a goal. My RRSP is out of contribution room. My wife has some RRSP room left, but not very much. Her RRSP should be maxed out in early 2018. That would mean both our TFSAs and RRSPs will be fully contributed to within the year. That would be a HUGE milestone for us if we can get there in another few months.
Back to the present, that’s our update. A few weeks to go to hit at least one more goal. That would be a great year – and I hope we can pull it off.