New year, new challenges. I will do my best to tackle the six financial goals listed below which are similar in nature to last year’s goals. I’ve also included 2 additional stretch goals. These stretch goals will be super challenging so I don’t except to achieve them but it would be a real bonus if I did :0)
“A goal is not always meant to be reached, it often serves simply as something to aim at.”
~Bruce Lee
1) Increase net worth by $50,000. Counting on my savings as well as my nearly half a million dollars worth of investments to appreciate 😀
2) Make at least $6,000 more income than last year. Thanks to my new rental income from the farm this one should be pretty doable.
3) Put $5,000 into my retirement account.
4) Put $5,500 into my TFSA. (Roth IRA equivalent in Canada)
5) Put at least $18,000 towards other investments (net of taking on any new debt)
6) Bring the total value of my non-registered accounts to $100,000. Currently my TFSA, cash trading account, and margin account, has a combined value of $68,700. So I’ll need to grow these accounts by $31,300 this year 😉
Stretch Goals
1) Pay down at least $1,000 of my debt. Adding together the balance on my line of credit, a margin loan, and everything else, my total debt is $357,200. It’s not a lot, and interest rates are still low, so I’m not really concerned about it, but I noticed other personal finance bloggers making it a goal and a priority to pay down their debts this year. So I’m going to try and do the same because maybe that’s the smart thing to do. $1,000 is a lot of money though and I don’t know if I have that kind of discipline, so I’m making this a stretch goal, but hopefully I can get myself to only $356,200 of debt by the end of the year.
2) Make $90,000 of pre-tax income. I’m in a race with this other personal finance blogger to see who can make $100,000 dollars a year first. For 2013 she set a goal to make $90,000 so I’m going to follow suit and do the same :0)
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Random Useless Fact: Auto correct has made it easier to text. But it doesn’t always work the way you expect it to, and that can lead to some unexpected results.
Good luck ! Hope you won’t spend to much on games 😛
I’ll try. Those Steam sales are very tempting though 😉
Did you bought something during the winter sale ?
Not this time, I was too busy playing the new Professor Layton game.
This year I chose no hard financial goals for myself. Instead I have posted something on my fridge in large type, to remind me to get where I want to go. JUST DO IT – “It takes as much energy to wish as it does to plan – Eleanor Roosevelt”. You see there are many things i wish to do, that I seem to never get to for some reason or another. My goal this year is to get to some of those… Cheers. I feel your stretch goals are attainable, so don’t set your mind up for failure, just plan your way there (^O^)
Thanks, I like that motto. Gotta work on my “just do it” attitude too.
Your goals sound awesome! And you have such a solid foundation to start from! Haha…one time I was sending a group email to my classmates on my phone. When referencing a peer it autocorrected her name to “hatred.” Not cool, not cool.
Lol, darn you autocorrect. That must have been an awkward situation for both you and your peers (゜_゜)
$1K to debt? Don’t let us peer pressure you just ’cause we want to pay off $55K in the next year or so =) That money has “ties” as it were – since much of what’s left is a family loan, and the only other facilities we could move the debt onto have significantly higher rates that aren’t worthwhile to keep a balance on long-term. But once we’re done with that, we plan on riding out our 3.25% mortgage as slow as we can.
3.25%? That’s a really low rate. All my debt is higher than that, including my mortgage. But it’s up for re-fi later this year so my fingers are crossed for a good deal 😀
Challenge Accepted, Liquid!
$6000 a year in dividend income!
Okay, see you at the finish line 😉
I like that you are focused on building your networth instead of just paying off debt. So many times I feel like PF bloggers miss the big picture. Good luck on the $90,000.
Yar, I love putting myself into debt if it means I can build more wealth in the long run.
It sounds like you have some awesome goals for 2013. Our goals are to ontinue paying our house off and moving forward with our savings and investing plans.
Yours sound great as well. I think we’ll have a good year in the stock market in 2013. Good luck ^_^
Great goals! I am sure you’ll be able to reach them, even the stretch goals. Good luck!
Thanks, I’ll do my best ヽ(^。^)ノ but can’t make any promises.
Wow, I can’t wait until or investment portfolio is worth half a million. Based on your other Gil
goals I’m surprised you consider $1000 a stretch goal on your debt. You could easily divert a small portion of your investment savings and knock that out quickly.
You guys already have more than half a million in investments if you include your two condos :0) I know some people say your home isn’t an investment, but I think any asset you own that tends to appreciate in value over time (ie: real estate) is always an investment 😀 You’re right about my stretch goal on debt. I could simply use some of my savings this year to pay down debt, but I have a feeling it’s going to be harder than it looks.
Those look like some awesome goals! I’ll take an investment portfolio like that any day!
Cheers, last year I only managed to achieve 3 out of 6 goals. This year, I’m going for all 6 haha 🙂
Good to see that you have made a plan for 2013. Hopefully your investments will appreciate during the year and it looks like 2013 will be a great year for stocks. Have a great new year!
Hope you had a great holiday too 🙂 I think 2013 will be better for the stock market, especially up here in Canada. We had relatively poor performance last year.
Good luck, Liquid K! I know you can do it 🙂 90k in gross income!! Wish I can match half of yours lol. Now, I’m starting to think about not liquidating my stocks for my down payment later this year and keep on growing my stocks!! I am afraid of debt and hate it with a vengeance… but you make it sound like it’s working to your advantage!
Without borrowing to invest my passive income wouldn’t even be half of what it is today. But I pay for the circumstances I’m in now with higher risk and interest payments each month. However debt can always be paid back, but investments might not be this low again.
lol nothing like a good challenge to keep you motivated! Good luck!
Yup, I’m going to pass with flying colors this time 😉
Great goals. Question: what do you think about contributing a little bit less in retirement and a little bit more in paying off debt? This dilemma always bugged me and I never could find a satisfying answer.
Hey Ms. Coin. I think that’s a great idea 🙂 I don’t think I will be able to hit my investment target for this year anyway. Unfortunately I’ve taken on more debt than I would have ideally liked recently but I’m going to try and make a bigger effort to pay down my debt next year 😀