I set goals and objectives each year and it will come as no surprise that they include financial goals. I am paid a salary (fixed) so the areas were I have the most short-term influence are saving and investing.
1 – Stick to my budget.
My 2018 budget is very similar to the second half of 2017. The second half of 2017 saw an increase in expenditures after buying a home with my boyfriend and also combining finances for the first time. There will be two main changes from 2017 to 2018:
- Reduce – we have completed the majority of the onetime improvements on the house so will reduce the budget there.
- Increase – we are planning two vacations into the budget. A weeklong trip in the early spring and two weeks in the fall.
2 – Fully fund my TFSA for 2018
This is always my first savings objective of the year. This year’s limit is $5,500 with a cumulative total of $57,500. As you may remember, I think the benefits of a TFSA are fantastic! Contributing the max each year should be a priority for a majority of people.
3 – Eliminate capital gains by contributing to my RRSP
Selling stock and ETFs for the house down payment resulted in higher than usual capital gains. I will increase my RRSP contribution in order to reduce my tax bill. I will include the details in a future post.
4 – Rebalance my ETF investments
Over the past year, my US indexed funds have outperformed the Canadian ones so will rebalance there. I automate my weekly ETF purchases using TD Waterhouse’s e-series funds. While the MER is higher than some of their competitors the convenience and zero trading fees has made it worthwhile for me.
5 – Open a new trading account
Set up a Questrade account and find a way to automate it. Questrade doesn’t have pre-set reoccurring investments. I love the convenience and discipline of automatic investments so will be figuring out a way I can work around it. The benefit of using Questrade is that they have zero fees to buy ETFs so it would make weekly ETF investments into Vanguard and iShares funds financially feasible. I will check in on how this goes.
Those are my 2018 financial goals! Let me know what yours are.
More information and resources
The government of Canada’s reference on your TFSA
RRSP limits and contribution information