2024 Financial Goals
Welcome to our 2024 financial goal-setting post along with a recap of our 2023 goals.
Happy New Year!
I hope 2024 is a healthy and prosperous one for you and your family…
2023 Goals Recap
Before we get into our financial goals for the new year, I thought I should reconcile the year that was. While our financial goals year-over-year remain simple, they also continue to be SMART (specific, measurable, etc.) as much as possible. My professional role is to encourage this type of thinking in the workplace so I figure I better practice at home what I preach. 🙂
Ha. Loved that AI interview…
Our Goals On Debt
As referenced in our September 2023 update, I/we try and stay focused on our financial journey because there is a lot of calamity and drama that could weigh us down otherwise. It’s easy to feel like you’re not making progress or keeping up with others…
For the most part, we focus on us and tune-out the noise.
Years ago, we shared a goal to try and pay off our mortgage sometime in 2024. Here is one example of that.
“In the coming 3-4 years, without any mortgage debt, we’ll have financial options….”
Before the pandemic, when money was dirt-cheap for many years, we happily killed mortgage debt and renewed our mortgage at under 1.7%. We knew more money paid down then would mean less interest costs if/when rates climbed higher.
Well, here we are. 🙂
With less than $9,000 to go on the mortgage, at the time of this post, we will be mortgage free by March 2024.
To reconcile one of our 2023 financial goals, we made a significant reduction on our mortgage and remain on track to kill it this spring.
Our Goals On Saving and Investing
Long-time subscribers will recall I favour the TFSA as an investment account, the one key account to prioritize over your RRSP for many reasons every year. Managing the RRSP-generated tax refund every year is just one thing to be mindful of in this debate…
Well, true to our own cooking during 2023, we saved enough money to max out our 2024 TFSA contributions – and did so on January 1, 2024 (yesterday).
Another financial goal from 2023 was to complete our cash wedge for any pending semi-retirement. We believed in 2023 as we do today in early 2024, that keeping some cash or cash equivalents beyond our stock and ETF equity portfolio will not only shield us from any equity market calamity but cash savings could be advantageous to deploy if/when equities tank in price – only to buy more stocks on sale!
With cash savings held between personal and corporate accounts, we’ve fulfilled this goal.
We now have ~ 1-years’ worth of cash available across various accounts to cover basic living expenses if/when/should we want that.
How much cash should you really keep is personal and is usually aligned to other objectives, something I believe all DIY investors should consider here:
Although I can’t speak for you, keeping cash does offer a meaningful sleep-at-night factor for us that’s very hard to ignore.
“We do it because cash is the oxygen of independence, and – more importantly – we never want to be forced to sell the stocks we own.” – The Psychology of Money
In that book, Housel (the author) goes on to say with his cash wedge philosophy in reference Charlie Munger whereby keeping cash avoids touching the stock portfolio over time:
“The first rule of compounding is to never interrupt it unnecessarily.”
Finally, we desired to max out contributions to our RRSPs and did so, in 2023. We continue to believe that RRSP contributions and growth offer two great benefits as we continue to work full-time:
- The first advantage is our RRSP contributions reduce our taxable income.
- The second positive – assets held within our RRSPs — both the amount I/we contribute and any gains we see – is also sheltered from tax until we withdraw it. So, our thinking is, when money comes out of our RRSPs in full-retirement, we hope to be in a lower tax bracket and therefore pay less tax.
2024 Financial Goals
With 2023 goals accomplished, the new year brings new opportunities. The aforementioned mortgage goal is a given for 2024, so it would seem foolish to include as a goal for 2024. I will however keep you posted and let you know what we decide to do to celebrate this major financial milestone in the coming months… 🙂
Here is our short-list of saving / investing goals for *2024:
- Max out our RRSP contribution room by April 2024.
- Save for our 2025 TFSA contribution room by September 2024.
*potentially our final year of aggressive savings for investment purposes???
That’s it. Two goals.
Without any mortgage debt in a few months, most of the income we make beyond our day-to-day living expenses of course will be diverted to investing, as a final push towards fulfilling some semi-retirement dreams including the income we need to live from, from our portfolio.
We cannot share in detail what that means at this point, but once again, I will keep you posted as the dream remains alive and becomes more clear as 2024 progresses…
I look forward to keeping you updated on My Own Advisor in 2024 including how our long-term financial independence, work on our terms dreams might finally be here…
Happy New Year and best wishes, more new content to come in the coming weeks!