2022 Financial Goals
Well, wasn’t 2021 interesting???
Welcome to my 2022 financial goals, a countdown to semi-retirement edition. Maybe. Hopefully!
I certainly can’t say if 2022 will be better than 2021, and even 2020 in our pandemic context, but it is my hope. Like you maybe, I’m a bit “done” with the pandemic and looking for optimism. I’m using this post for some personal inspiration because the reality is: I need it!
2022 Financial Goals – Looking back to 2021
A reminder to readers we designed our financial goals in the last year or so around these larger goals as part of My Financial Independence Plan here.
To realize my financial independence (which means work on my own terms), in 2021 we had expectations of fulfilling the following:
- Max out contributions to our Tax Free Savings Accounts (TFSAs).
- Max out contributions to our Registered Retirement Savings Plans (RRSPs).
- Continue to pay off our mortgage.
- Initiate a larger emergency fund to start semi-retirement with.
Well, since our last update in 2021, we put the pedal down on items #1-3 and started to re-think #4 that I’ll share more about in a bit.
- TFSA and RRSP contributions were maxed out,
- We paid down thousands on our mortgage (now just in the mid-5-figures to go), and
- We increased our cash position slightly for the years to come.
2022 Financial Goals – Looking ahead
Looking ahead, here are some financial goals for 2022.
Max out our TFSAs
You probably already know but it’s worth mentioning anyhow I think: the 2022 TFSA contribution limit is $6,000 per adult. Here’s the total TFSA contribution room to date: $81,500.
Using your TFSA as an investment account is one of the best things you can do with your TFSA, although other ideas exist as well.
In 2022, we already moved cash savings from our non-registered savings account to our TFSAs – so effectively this goal is nailed already. I’ll share what I bought and intend to buy more of in 2022, in future posts.
Max out our RRSPs
While I don’t yet know what my (nor my wife’s) RRSP contribution room is for this year, exactly, I know I’ll get those updates via our respective CRA Notice of Assessments – after tax filing work is completed. I figure our RRSP contribution room will be in the range of about $8,000 each for the 2022 tax year.
Increase our cash wedge for semi-retirement
Some readers will recall I made the decision to incorporate in 2020, for many good reasons many folks decide to incorporate as well.
I wrote about my thoughts on whether I would take a salary or dividends from my corporation eventually. In the near-term however, I will do neither.
Instead, I will see if I can increase our corporation income in 2022 and keep our increased cash savings there for the time-being as I approach semi-retirement, potentially around the end of 2024.
I will use my personal cash position to invest in my taxable account and build up investments there over the coming years.
How much cash do you intend to keep? Why?
Surpass $27,000 per year in 2022 from TFSAs and taxable income per year
Last year, was a HUGE year for us with dividend increases. I suspect if we get more dividend hikes in 2022, we should surpass this goal rather easily. Here is my chart from my dedicated Dividends page whereby I update my stock and ETFs holdings and share what I own for income and growth.
Check it out and let me know if you have any questions, including how to improve or my blind spots!
For now, I will continue to invest in my hybrid approach as I’ve done for the last 11+ years, for the coming years:
Approach #1 – we own a number of Canadian dividend paying stocks for income and growth.
We own these stocks inside our non-registered account and within our Tax Free Savings Accounts (TFSAs). My monthly dividend income updates focus on that.
Approach #2 – we own a number of U.S. dividend paying stocks for income and growth AND we’re owning more units of low-cost U.S. Exchange Traded Funds (ETFs) inside our RRSPs over time.
2022 personal resolutions
I’ll keep this list very short but I’m going to deviate a bit from my 2022 financial resolutions to share a few personal improvement items…
- Increase physical fitness. I’ve made improvements over the last year but I’m not where I want to be. I have commited to getting into a mix of walking, stretching, yoga, and some weights three times per week.
- Being more mindful of my time and energy. Less can be more. I think we can think of binge watching Netflix and drinking wine or craft beer during it as a form of rest, but it’s a bit flawed. Aligned to my personal goal above I believe physical activity is more restful than we might expect, and mental rest is more active than we realize. As such, I’m going to work a bit more in 2022 on my time, listening to my body, my mind, and what I need. Being busy and being effective are two different things. I’m going to work on what moves me, what doesn’t and focus on energy on the former more in 2022.
I wish you well in your financial or personal goals this year and I would appreciate any comments on mine. I read every comment.
What are some of your personal finance resolutions?
Do you have any personal goals to share in 2022?
This was my financial independence update from a few months ago.