2018 Financial Goals – Final Update
Passionate fans of this site will know I’m not an early retirement zealot.
We don’t scrimp and save every dime to live in a small apartment and call ourselves “retired!”….but….we are somewhat focused on money management. Heck, I do have a blog after all!
And for good reason…
I want to share what I know. I want to share what I don’t know. I want to learn from others. I want to hear different perspectives – to try and improve. Life is for learning.
And when it comes to money management this truth remains: nobody cares more about our financial well-being than us.
So, by setting goals, hitting some and failing at others – we at least push ourselves to better heights over time. We try. We learn. We try again.
We’ve come a long ways in recent years. By documenting and following up on our financial goals each year, we’re getting closer to these major financial milestones:
- Big goal #1 is to own a $1 million investment portfolio for retirement. That portfolio value excludes workplace pensions and excludes any house equity.
- Big goal #2 is to own a paid off home/condo and retire from full-time work with no debt.
How are we marching towards these goals? One week, then a month, then a few months at a time.
For 2018, these are the goals we set for ourselves:
- Maximizing contributions to our TFSAs (for long-term dividend income and growth), and
- Killing debt.
In January 2018 we kept our annual commitment to maximize contributions to our Tax Free Savings Accounts (TFSAs). If you don’t already know, there are many great things you can do with your TFSA this year – here!
As done in previous years, we decided to buy more Canadian dividend paying stocks inside this account.
Based on those contributions in early 2018, dividends reinvested throughout the year, assets inside those two tax-free accounts are now churning out close to $8,000 per year in dividend income tax-free.
While very nice we don’t dare touch that money that money though. We have long since considered our TFSAs as retirement accounts even though other people don’t. This means investments within these TFSAs will help us cover future needs and wants in retirement when we’re no longer working and/or when we no longer have a decent job to rely on.
These are our wants and needs in retirement. What are yours?
So, we nailed the TFSA contribution goal and are proud of it. That was $11,000 invested in early 2018.
How did we do on the debt?
Throughout the year, we paid down our mortgage debt. We need to. Otherwise, the bank will take our house away!
All told, we reduced our mortgage by just over $20,000 this year, thanks to our routine, bi-weekly accelerated payments. Our debt remains in the six-figures still, and will remain there for another year or so, so we have a ways to go to be completely debt-free.
Given my RRSP contributions are fully maxed out; so no financial goal there, and my wife’s RRSP now has less than $28,000 left in contribution room (well down from where it was a few years ago – no financial goal there either) – we’re starting to feel OK about our assets and debt-management plans. We just have to keep doing what we’re doing.
No travel specific travel goals in 2018 but you gotta live – life is short!
We had no specific travel goals in 2018 but we took a trip anyhow. This time, we visited Whistler (pic of Whistler Village below) in the fall. It was beautiful:
With 2018 long gone, my attention has turned to 2019 and what we need to do to make this year a financially successful one. I certainly have some ideas on what that could be and I hope to share those goals soon.
Thanks for following along and being a fan.
How did you make out on your 2018 financial goals? Did you set any? Why or why not?