December 31st… the last day of the year to make things right! What have you done for the past twelve months? Are you proud of what you have accomplished? The best way to know if you have done something with your life is to setup goals at the beginning of each year and follow them. Here’s where I am at with my three main goals:
– Dropping down under $300K in debt
– Opening an RESP and invest $2,400
– Make over $130,000
Let’s start with the unachieved goal…
This year has been such a bummer on my budget that I even quit on paying off my debts. I can’t say that I’m really proud about it but I have to accept what happened; I kept spending without bringing in the dough. I literally closed my eyes and dove into consumption like you would dive into a pool when it’s burning hot outside… speaking of which… my pool was a huge expense that was not properly budgeted for. In addition to that, my sport car broke every month for 5 months in a row at the beginning of the year. Even worse, I kept my eyes closed and bought my family a trip to Disney… Oh! And I forgot; I got the brilliant idea of switching jobs which threw my bonus down the toilet. Finally, having a third kid brings its wealth of expenses as well. Wow!
yeah… I really quit on paying off debt in 2012.
But you know what? I don’t care!
We spent the whole summer in the pool;
I still LOVE driving my sport car every day;
My trip to Disney is an incredible opportunity to spend time with the kids;
The job switch will become the best move I have ever done in my life over the next few years;
And the joy of a third child is just simply priceless.
So I’m not proud of failing on my first goal, but I don’t really care what happened to my finances. I’m young and full of energy. Even better; I’m darn good at making money and I’ll just make more in 2013 to drop that darn debt level under $300K!
Having three kids is quite a challenge when they go to college and you get the bills. This is the reason why I wanted to open a Registered Education Saving Plan. I was a bit late in the year to open it and couldn’t find enough money to catch up to my goal of investing $2,400 in 2012. At least, I put $1,600 in so far and will continue to invest $200/month (plus subsidies) in 2013. At this pace, I calculated that I’ll have roughly $30,000 per kid to fund their tuition. Since I live in Quebec, this should be more than enough to pay for everything.
In the future, I’d like to increase it in order to be able to buy a duplex for them when they will move to another city. This would be awesome if they could share an apartment that is mine. Since I will have to help them to pay rent, I would rather buy the darn apartment and build some value! But I’m not there yet… I’ll have to wait a few years before I can think of this plan!
At the end of November, I already spilled the beans and told you that I will be making roughly $131,000 in 2012. The drop in income compared to 2011 ($176K) is directly linked to my bonus that is a lot smaller this year. It’s normal; I’m starting a new book with no clients, there was an adaptation period to go through. It was a tough year to go from hero to a barely average employee. Still, I was able to rake in a great income!
But I’m already past that dark period and rocking my way through the beginning of my new year at work (starting on November 1st). I’m already at 30% of my objective after 2 months and still working on other deals.
We are going to leave the year 2012 in a few hours and it’s now time to look at what I’m going to do next year!
Yeah I know, I wrote about that… a year ago! I expect my debt level to be roughly where I left it at the beginning of 2012. So it means that I’ll have 12 months to drop my debt by $20,000 if I want to pass the psychological mark of $300K.
The good news is that I have absolutely no expenses planned this year. No pool, no newborn, no car repairs (lol! As if I could predict that!), no expensive vacations. All of this totalled over than $20,000 in 2012 so I should be fine .
I want to pay off my consumer debt since it was the first time since I got my first full time job that I have accumulated consumer debts. Now I have way too much on my plate and definitely need to settle down and deal with this crap. Fortunately, I’m not paying high interest on it but I would rather not wait too long before I see interest rates going up!
I’m planning on using my online company dividends to pay my debts off. I should technically be able to live off of my day job income and use 100% of my company derived income to pay off my debts. I also significantly decreased my insurance costs throughout 2012, this will definitely help put some money aside!
In 2012, I opened up an RESP for my kids, in 2013 I want to open a TFSA… for my kids! William is turning 8 in 2013 and I will need funding to send him to private school in a few years. It’s very important that my kids benefit from the top education and the best resources are only available in private school. I have personally seen the difference between private and public school and it’s not an option for me.
In order to fund it without having to hit my head on the wall each month, I decided to open a TFSA account and start putting some savings aside. Once I will pay off a part of my debts, I will open my TFSA account and start investing $100 or $200 per month.
Financial goals for the year wouldn’t be goals without an income goal! After dropping from $176K to $131K this year, I want to go up half way and make $150K. This would be the definition of my perfect level of income. If I continue to close deals at work at the same pace, making $150K this year shouldn’t be a problem.
In addition to that, I have some good ideas to make money from my online company and have made sure that I’ve put the money engines in place at work to reach my goal. If I can crush it, this will only mean that I’ll be able to enjoy life even more 😉
Yeah… that’s actually not a 2013 goal but a 2014 goal! I want to go to Hawaii with my wife in 2014 because it will be our 10th wedding anniversary. I’m not the type of guy who enjoys all included in Cuba so I thought that jumping from one island to another could be more entertaining!
The deal I made with my wife was that I want to pay cash for that trip. I guess it will cost something in the range of $10,000 so I had better rack-up a healthy bonus to get us there! This is also the reason why I started working on this goal a year in advance! Let’s hope that it will work!!
I also have a personal goal that has nothing to do with finance; I want to lose weight. I’ve been carrying a few extra pounds in 2012 due to the lack of intensity in my workouts. I tried to do it 4 times a week but I didn’t make it most of the time. Part of it was due to the lack of sleep (thx Caleb!) and the other part was due to the lack of motivation. I want drop under 180 pounds (currently sitting portly at 193). 175 would just awesome but I will need to cut down on my eating habits at the same time while working out intensively four times a week. I have done it in the past, so I know that I can do it again!
2012 has been a rough year in many aspects (money was flying out the window, my online company was hit by Google twice and building a new book of clients is not the easiest thing to do!).
But I’m glad it’s over. I look forward to 2013 with hope and optimism. Most of the things that happened in 2012 can’t really happen again next year so I should be able to crush it like I do best ;-).
What about you? What is your #1 goal for 2013?
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