What’s a personal finance blog without personal finance goals? Here’s mine for 2017 – plus some combined goals with my partner.
(I realize we’re already 3 months into the year, but I prioritized the site redesign and couldn’t publish this sooner… bear with me guys. >,< )
Also, I’m doing something different with my financial “goals” this year. Instead of setting them up as “goals”, I’m setting them up as “trajectories” – which means that I want to take my finances towards a certain direction, without necessarily having a target number by the end of December. We’ll see how this works out!
My Financial Trajectory for 2017
1. Save up $10,500 for a personal goal.
- I’m going to be secretive about this goal other than it’s going towards something completely selfish. This would be my one big reward to myself since buckling down with my finances – what I would consider my “weird spending” (term coined by Desirae on Half-Banked)!
Selfish Reward10,500/10,500 Dollars
2. Build up an emergency fund – $5,000 in my TFSA.
- Currently held in a Tangerine TFSA – savings account only. I do not want to be risky with this cash – I just need it to be there for unexpected life events.
- I expect this will take 6-12 months to save up. My partner is saving another $5,000 on his own which should give us a total of $10,000 for emergencies.
- $10,000 seems like a good amount to start with but I’m a tad worried it might not be enough now that I have a house to worry about AND at the same time, I don’t want to tie up a huge amount of cash in savings… Homeowners out there, any thoughts on this?
Emergency Fund1,000/5,000 Dollars
3. Create a new debt repayment plan for my student loan – $15,952 outstanding.
- I made a plan to pay this debt off by September, 2018. However, that plan was derailed when I bought my house in November. I’ll explain more in a future post; watch out for that one!
- After our emergency fund is topped up, I will create a new plan to tackle this debt. For now, I’m making the minimum monthly payment of $370. And if I just stick to this payment plan, I would have it paid off by December, 2020 – 6 years after I graduated. (and 4 years sooner than the original 10 year repayment plan! :P)
Student Loan24,626/40,578 Dollars
4. Support my partner as he fulfills the terms of his bankruptcy for the remaining 17 months.
- My partner was involved in a rental real estate scam years ago before we even met. We have consulted with several mortgage professionals and lawyers and came to the conclusion that declaring bankruptcy is his best solution.
- When I say I support him, it means in an emotional and positive way. I am not paying for any part of his bankruptcy. But it just means we can’t be as aggressive with our other goals as we’d like to be. This works out because on my end, I still have my student loans to deal with; so essentially, we’re both working on the negative bits of our financial situations.
5. Furnish my home and make it feel more complete!
- I moved from my parents’ place to a place of my own so I didn’t have a lot of furniture or useful things to begin with.
- The goal here is to acquire ONLY the things I absolutely need and love in the home. For example, I’ve been on the hunt for the right dining table and instead of settling for a cheap one, I’m looking and saving up for a quality piece that I know I will love.
6. Pay for my mortgage…
- My mortgage works out to about $1,779 monthly – this is a 5 year fixed term on 2.29% interest amortized over 25 years. That’s $1,800 more I’m spending now compared to before I moved out.
- The goal here is to learn to budget for my increased living expenses while attempting to live a still fun life AND save for my other goals – like early retirement!
- I should also mention that I did use the Home Buyers Plan to borrow $25,000 down payment from my RRSP. The caveat is I need to pay that full amount back in 15 years or I’ll get dinged with taxes as if it was normal income. Repayment starts when I file my 2017 tax return and I will be dragging this loan out over the next 15 years (it’s 0% interest debt to myself after all – I do miss out on investment growth though).
Related Post: Young and Thrifty – How To Use The Home Buyers Plan
7. Save and invest in my RRSP and TFSA.
- IF I get to this point this year, I’ll be investing more money into tax-advantaged accounts. I’ll probably want to save another $10,000 in a TFSA to have more liquid cash before putting all other resources into maxing out my RRSP.
- I do have a pension from work I’m paying into and I’m also saving money in our work group RRSP because the employer matches up to 2% of my contributions.
- My partner will be in bankruptcy this whole year and will not be investing any money.
Care to share? What are your plans for your money this year? What direction are you aiming to go financially?