Earn an average of $7,500+ per month.
My personal income goal for 2013 is $90,000 which works out to $7,500 per month. As I said previously, I’m not entirely sure how I’m going to reach this, but figuring out a way is half the fun so I’m excited to see what I can pull together.
Give more to charity.
Right now I give $25-$50 each month to charities, but it’s such a small fraction of my income, there’s no reason why I can’t increase this. I generally give to whatever cause catches my eye/heart each month, and while I’ll continue to do that, I’d also like to donate to one cause regularly for the long term.
Start a Freedom Fund.
A Freedom Fund (sometimes called an “F#$% You fund”) is savings set aside to pursue a “free” life away from the daily grind of traditional full-time work. I have no intention of quitting the 9-5 life anytime soon, if ever, but I’d still like the option to do so. I would consider this buffer money if I ever decide to leave work to start a business or choose to stay home to raise children.
Pay off my remaining student loan.
I could do this sooner rather than later, but I hate putting money towards a loan that’s only costing 3% interest instead of putting the money in long-term investments that will return more than that. At this point I owe $8,500 and I expect to bring that total under $5,000 within the first two months of the New Year with regular payments and my income tax refund. Then I’ll reassess how aggressively I want to repay the remaining balance. In any case, I’ll be debt-free in 2013.
Save more for retirement.
For the past 1.5 years, over 20% of my gross income has been being socked away for the years when I’m old and grey. This is thanks to my mandatory employer pension with matching. I’m still not all that into planning for life in my seventies when I’m only in my twenties, but my tax credits are about to run out so it’s time to max out my RRSPs. Because RRSPs can also be used for education or a down-payment on your first home, I feel more inclined to lock my money up in this savings vehicle.
Spend less than $4,000 on personal travel.
I’ve been spoiled with two trips to Europe in two years and even though travel is a huge priority to me, there’s some other financial goals that need to be put first in 2013. At this point, I have one personal trip and about 4-5 work trips planned for the coming year, all of which are in Canada. In an effort to be more frugal, this might be the first in four years that I stay within my own country! Or maybe not.. a trip somewhere warm and tropical might be in order. In any case: $4,000 max.
Put more money into the stock market than anything else.
Looking at my spending for 2012, the top three categories were debt, bills and travel in that order. Since my debt will be gone sooner than later and I’m cutting down travel, I’m hoping to increase contribution to my brokerage account and take a super aggressive stance with investing in stocks, to the point that I put more money in this than anything else. It’s bold, but it’s a good time for me since I’m young and have a fairly large disposable income. Furthermore, since the bulk of my retirement savings is in a very safe place, I can take risks with my money without the worry of irreparably screwing myself over in the future.
… and that’s it for now! What are your financial goals for the new year?