My 2011 Goals
It seems all of the personal finance bloggers out there are posting their 2011 goals, so I figure I’d take the hint and write my own down too. I’ve been thinking of these for the past month or so, but its probably good to document it on here. These goals span both personal finance and life goals, because they essentially go hand in hand.
In 2011, I’m going to…
Eliminate my student loan of $10,000(yahoo!)(accomplished October 2011)
I really hate having a student loan — or any debt — hanging over my head, so in 2011, I’m going to get rid of it once and for all. In reality, I could continue on for the next several years paying $100/month and be fine, but I’d rather it be gone.- Save $10,000 in my retirement / house fund
I’m saving up to buy a home in the next couple of years, so I’ll try to max out my RSP’s again in 2011 and enjoy the tax deductions along the way. Then, using the First Time Homebuyers Loan, I’ll withdraw part of it for a down payment when I’m ready to buy. - Eat better and be more active
A big part of this will be to cook a lot more meals at home, bring my lunch to work, and avoid the over-processed fast food crap I’ve been eating, along with cutting back on the amount of caffeine / pop I consume. In doing so, I’ll not only eat better, but save money. As well, I’m going to try to be really active 2 days/week minimum. - Follow a Budget
This is to help me stay on track with where my money is spent, so I can accomplish the above goals. I’m not one to over-spend as it is, but I think I could save more if I keep better track of this. You can read my budget here. - Earn $5k more next year, outside of work
I’m really passionate about eBusiness, so I’m going to see how I can earn some additional money from it through consulting and side projects. As well, I’ll see what I can unload on Craigslist and eBay. This also include my growth of my various investments.
So those are my five goals — they’re all fairly broad for a reason, as I find these tight “do X by Y” don’t factor in the realities of life very well. But, at the end of 2011, if I reach all of these, I’ll have had a great year.
See you in 2011!
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Good luck on your goals! By the way, are the RSPs like 401Ks in the States?
Thats a great question — I did a quick look, and they sound about the same. Essentially, you defer the income tax on any money put into the account, with the purpose of saving it for retirement. At that point, you can invest it/save it, how you please.
In Canada, we have the option, of tapping up to 25k of our RSP to purchase our first home, but have to pay back that contribution back over like 15 years, without taking a tax penalty for early withdrawal.
You’ll find getting rid of the student loan to be a very satisfying experience. There’s no feeling like putting an end to a loan like that when you are young.
I didn’t write about it, but also have a similar drive to eat better and be more active. Eating better is a tough one.
Thats my hope! I’ve been putting off killing it for a couple years, as last year I thought my money was much better invested in the stock market than on a loan charging me only 3% — that bet paid off, as the market grew MUCH more than 3%… But this year, with the market where its at, the return isn’t gong to be nearly as substantial — time to put the final nail in my student loan!
Oh that’s a great option. I think in the States, we can take out contributions from the Roth IRA for a first home purchase, but we don’t have the chance to recontribute that amount later on.
These all sound like great goals, good luck!
Great goals! I’m sure you’ll meet them and exceed them
Great goals..debt is always bad (non deductible)
My thoughts on the RRSPs and using it for a house is to take a pass. Housing prices, I believe have very little upside in the near future and more downside…so be patient time is on your side.
TFSA is excellent if you can treat is as long term money.
If want to read a good book read Leap: Lifetime Economic Acceleration Process by Robert Castiglione or drop me a line.
In general the biggest mistake which the banks teach us is to accumulate as much money and in retirement take this money as slowly as you can. There is almost no talk of taxes! Since the TFSA ( which is really the US version or a ROTH IRA) anyone who believes taxes maybe higher or the same but not lower knows the TFSA is your best place. Problem is a limit of only $5,000. You can take this to a higher level with less risk.
The other industry joke is the poor financial planning software that is used by all the big firms so any poor results in the markets means the the projections are useless.
cheers,
Brian
Yeah, thats my biggest concern about buying a house is I could probably make a better return in the market/bonds/etc. Plus, I live in BC… so house prices are outrageous in the downtown area to begin with.
Hey TSM,
The house prices in Canada are due to come down at some point. The markets can be tough as well.
If you want to read something different go to my comment:
If want to read a good book read Leap: Lifetime Economic Acceleration Process by Robert Castiglione or drop me a line.
You will have something different to talk about for future stories in the paper.
cheers,
Brian
There is a whole section about the markets RRSPs /401K plans, taxes etc.