Woah! That’s it! Game over for 2010! It’s time to review how I made out, considering my financial goals for last year! At the end of 2009, I wrote about my 4 financial goals for 2010. Since I have had this blog, I am doing very well on the financial side. I don’t know if it’s related to setting up goals at the beginning of the year or the level of accountability since I am exposing my objectives to the world but this kind of post definitely improves my motivation & financial situation each year!
2010 Goals Reviewed
As mentioned, I had 4 goals. I’m happy to say that I was successful in meeting all of them! Here’s what happened:
#1 Paying off the loan from my parents
This was the toughest one. I had to reimburse the sum of $31,000 within a year because I didn’t pay back much in previous years. So I used my employer stocks along with the equity generated by the sale of my house to pay them back. You can say that I cheated a bit since I also had to use a low interest balance transfer credit card. So if you look at my current net worth, you will notice a substantial amount on my credit cards. This is something I am not proud off but I would rather owe money to the bank than to my parents, at this point!
#2 Increase my base income by at least 15%
This was also an ambitious goal since I have earned several raises over the past 8 years. My average annual income has increased 8% since I started at the bank 8 years ago. I had to exert a lot of energy to get my base income increased but I definitely think I deserve it. Why? Because I have succeeded in goal #4 (being a top 10 planner in Montreal) for a 2nd year in a row.
#3 Increase my online income by 50%
If you read my post about how I went from 18K to 125K in 12 months, you will see that I crushed my objective once again. I must admit that I was pretty confident in this one. The company is growing at a very fast pace and we are looking for a great year 2011!
#4 Finishing in the top 10 financial planners in Montreal again
I have finished top 5 out of 90 financial planners. The way it was calculated was referring to the net business brought in during 2010. This means everything that comes out of my book was hurting my results too. Fortunately, since I take care of my clients, I didn’t have anyone transfer out.
2011 Goals Now!
In this post, I won’t talk about my company’s goals as I will break them down in another article. So this year, I’ll be following up on both personal and corporate financial goals!
#1 Paying off all my credit cards
A financial planner with credit cards debt, huh? That’s not very bright! For the past 6 months, I’ve been switching around between my credit cards and my low interest HELOC. This year, I want to get rid of those debts and start paying my HELOC for real. I thought of doing a Smith Manoeuvre but I have changed my mind recently since I really want to see my debt reduces. So here’s the plan:
– Use my January bonus in full to pay down debt (besides contributing to my RRSP) (about 8K, once the Government has served themselves!)
– Maintain my lifestyle in 2011 (good bye spa and garage… I might make an exception for central A/C though…)
– Pay interest only on my HELOC and use my capital payment toward my credit cards (that’s about $750/month)
– Use my employer stock contribution to pay down my credit cards in June (that’s about $575/month)
So by the first 6 months, I should have almost $16,000 paid off out of $22,000. I should be able to pay the full 22K by December.
#2 Increase my Net Worth to Over 200K
This obviously goes along with my 1st financial goal but I want to increase my net worth significantly. At the moment, I am roughly at 150K. This means that I want to jump by 33% over the upcoming year. Here’s my plan to achieve it:
– Pay down $22,000 in debts
– My house value will increase according to inflation (that’s roughly 7K)
– My pension plan should increase significantly (I have been working with 2008 numbers in 2010 so early 2011 numbers should show an additional 10K)
– I’m making a 5k contribution to my RRSP (coming from my bonus)
– My online company should also increase in value (hopefully determining that it is worth 200K, so 100K each for my partner and I).
#3 Get in The Top 3 Financial Planners in Montreal – Make 150K
Doing the top 10 was done in 2009 and 2010. So far this year (our financial year starts on November 1st), I’m having a huge year in terms of volume in. This is why I’ll try to reach the top 3 and get myself a bigger bonus. But this time, I won’t spend it. I will use most of it to pay down my debt. I am usually able to get a part of my bonus in June, I will probably take it and clear a credit cards by then. At the same time, by succeeding, I’ll surely be in excess of 150K in annual income. This would be a great milestone (especially when I remember that I was making 37K back in 2003!).
That’s it for my personal goals; I’ll follow up with my online goals shortly. Do you think I should aim higher? Or that I am already putting enough pressure on myself?
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