Set Some Goals for 2010
Posted by Gail | Filed under Goals
As we round the corner into a new decade, it’s a good time to stop and take stock of what we’ve achieved and what we want to achieve over the next several months. And from Chris comes the following letter:
I would really enjoy it if you did a blog in the next few weeks about making yearly financial goals. I am in the process of making my financial goals for next year. It would be nice to read a blog about it and how to make a realistic goal, and open a discussion among your loyal fans about their upcoming goals and if they met their goals for 2009. Thanks for all your dedicated hard work.
You’re welcome Chris, and I hope that 2010 brings you all the things that your little heart desires. You’re off to a good start if you’re taking the time to set some goals. But I want you to remember that just because you set yourself a goal, that doesn’t mean the path you walk to achieve your dream will be a smooth one. Most paths have some rocks, a few holes, and the odd dragon. You’re going to have to be determined to get to where you want to be.
If you want to arrive at your goal on time, then you have to set a deadline. Whether you’ve decided to become debt free, buy a home, or have a baby, if you don’t set a date for your goal it is still just a dream. And if you aren’t clear on what it is you want to achieve, you’re going to find the road far more winding than it need be.
Clarity requires that you take a somewhat general goal and put in all the detail to make it very specific. A general goal would be, “Pay off my debt.” A specific goal would be, “I want have my $1,345 credit card balance paid off in full by June 2010.”
Some goals are huge and that makes them very intimidating. If you have no emergency fund now and you intend to establish the suggest six months’ worth of essential expenses, that can seem like a daunting task. So break it down into smaller, more manageable pieces. If the goal is too big, frustration will get in the way. If the steps are attainable, you’re much more likely to succeed. So instead of, “I’ll have six months’ worth of essential expenses or $12,000 saved,” try “I will have my first month’s worth of essential emergency expenses saved by April 2010.”
Remember that the goals you set must be things you are both willing and able to achieve. While you are the only one who can decide just how high your goal should be, pulling numbers randomly out of the air isn’t the way to do it. If you want to take a family vacation next winter, and you expect that vacation will cost $6000, then you’ll have a year to save $500 a month to meet your goal. If there’s no way on this sweet earth you can swing that $500, setting the goal will be a sure path to failure. Instead look at what you want to achieve and make it realistic. Will you choose a less expensive vacation and stick with your time frame? Or will you extend your time to save so you can put away an amount you can actually manage to have the family vacation you really want?
A plan followed blindly is as bad as no plan at all. And yet, sometimes when we set a goal for ourselves, we become so slavishly committed to meeting that goal that we can’t see the damage we’re doing to ourselves elsewhere in our lives. Racking up a truck-load of credit card debt to make the vacation happen on time isn’t the answer. Being realistic about the goal is.
Okay, your turn: Chris is wondering if you met your goals for 2009? I’m wondering what kinds of goals you’ve set yourself for 2010? And how can I help?
January 11, 2010 at 7:53 am
We didn’t have any goals per se in 2009…BUT, for 2010 we are determined to get back to cash only…when we were first married 22 years ago you couldn’t use a c/c at the grocery store…you paid cash…we didn’t even have debit service yet!…no on line shopping etc…it was so simple…if you had the money after all the bills were paid you could buy stuff…no money, no stuff…we are going back to that this year…I hope more folks do it too….
January 11, 2010 at 7:57 am
I’ve met my goals for 2009 and when you mention the odd Dragon sneaking up, I must say I’ve had a rather huge one to deal with. As for my goals fo this year, in 2010 we are planning to be debt free. The Original plan is by June, but unless I get a major tax refund or a major bonus then we will have to push this debt free date back to about September. I know planning on using money from a bonus or tax return is probably wrong till it’s actually in your hands, but that is what I’m doing. We are also planning a nice 3 week vacation in Bermuda in December, this will be paid for by extra money we have.
regards,
Jason
January 11, 2010 at 8:05 am
We met our goals in 2009 of maxing out our TFSAs, RRSPs (just up to the employer matched contribution) and actually having money in our savings account for emergencies. This year we will continue all of the above and in addition to attempting to make it out of the year the same way we did this year; with no credit card balance. This should be quite the feat seeing that we’re expecting our first little one in May and I feel like we’re beginning to hemorrhage cash. In preparation for mat leave we’ve already begun living on my reduce salary and at the moment it’s not so bad. This should be quite an interesting year financially.
January 11, 2010 at 8:48 am
This is timely for me as I have recently finished our 2010 plan and have written about it today (and tomorrow). We had some dragons pop up over last little while, so we’ve had to adjust earlier plans to make them fit our new reality. Paying down the mortgage is still priority one, but we will be doing so at a slower pace until our income picture clears up a bit more.
The TFSAs and RESP will be our next priorities. I will probably be monitoring our expenses even more closely this year and I will make adjustments to our plan as needed. If expenses need to be cut, I already know what’s getting the axe first.
@Lynn C. – Congratulations! It sounds like you might need to make some in-game adjustments this year as well, but you guys seem pretty well-prepared.
January 11, 2010 at 9:21 am
Congratulations to all who have made a financial plan for 2010. I have just started to follow Gail’s blog and find it extremely interesting with the amount of input people have about their finanical goals. It helps me to continue to see my light. We are probably about 6 years away from paying off our mortgage completely, I have decided to buckle down and get it paid off as soon as possible.
January 11, 2010 at 9:23 am
I met most of my 2009 goals. My biggest goal this year is to pay off early my consolidated loan. The math shows this is do-able and it’s just a matter of how early I can make it happen. It will be a very exciting moment as I have re consolidated this loan a few times but never, truly, paid it off.
January 11, 2010 at 9:41 am
Each January I get into “finance mode” and am determined to do things right. I didn’t make a plan for 2009, because I was still working on my goals from 2008. Most of those were achieved, I am happy to say.
My main goal this year is to save for an emergency fund and savings back into gear, because they have been depleted. So, after making a budget, and feeling good about it…yet again, something happens that requires an outlay of cash. Cash, of course, which we don’t have.
We own a house. The house was built in 1980, and it was completely refurbished when we purchased it in 2007. It was a good price and something we could afford at the time.
Since then, my husband’s hours have been cut, so he is getting less money, with no raises for either of us. And, now, things are breaking at the house. In September of last year, while my husband was in the hospital for surgery, our air conditioner broke down. If it was not for my mother-in-law, we would never have been able to come up with the funds to purchase a new one. In November, the hot water isn’t working one weekend (these things always happen on a weekend), so there was a $95 outlay of cash to the electrician. And, as I said, I started out this year with well-meaning intentions, and then this weekend, the pump for the sprinkler system sprang a leak. Luckily I won’t be using the sprinkler system anytime soon, but it is something that will eventually need to be fixed.
So, it seems that I have good intentions to start saving for that emergency fund, but it seems every month yet another crisis happens and we can’t seem to get ahead.
Right now we are barely keeping up with the house payments, bills, etc. It is a constant state of worry and stress for me. In December, I wanted my husband to take over the budget, because I am just getting frustrated everytime I have a budget together and then something unexpected comes up. When the pump sprang a leak this weekend, I literally cried. I just couldn’t believe that another thing was going wrong with the house. I just cried and cried, thinking that we will never get ahead. I am nearly at the end of my rope and so very stressed out.
Anyway, if everyone will cross their fingers for us that nothing breaks down, maybe we can get the savings and emergency plans underway. We are not using our credit cards (I have taken mine out of my wallet and placed them in a drawer), and told my husband that he will have to make a payment arrangement with the plumber for the pump replacement.
Good luck to everyone with their financial plans this year.
January 11, 2010 at 10:18 am
Last year I didn’t have a specific goal in place. Just pay down the debt.
This year we have a couple.
1. pay $1000 a month on debt. This will get our credit cards paid off by the end of the year and start on the monster LOC that we have.
2. save for a trip to disney in March 2011. I have broken it down by month and it is doable.
By writing it and saying it out loud it makes it stronger and harder to avoid. I have a spread sheet that I fill in the payment, amount still owing and total paid out at the end of each pay and month. It makes it easy to see the amounts and if I am on track. I have been doing this since October and is working for us.
I wish everyone the best financially in 2010. Thankyou Gail.
January 11, 2010 at 10:20 am
We only discovered Gail in July 2009, so our 2009 goals only span the last 5 months of the year. They were:
- pay $2000 off LOC (actually paid off $2400)
- add $3000 to RRSP (added $2600 to RRSP)
- start an RESP (did it and had $500 in it Dec 2009)
- start an Emergency Fund and have $1000 by Dec/09. (Dec/09 $1100 in EF)
Our goals for 2010 include adding to all our various funds, and paying off the LOC fully:
- pay off LOC by Apr 2010 *** will be consumer DEBT-FREE ***
- add $2400 to EF
- add $4800 to RRSP
- add $2400 to RESP
- add to our planned spending fund and start enjoying the benefits of having money to spend!
- start a 2nd new car savings fund by September 2010
These 2010 goals add up to a savings plan of about $10,000 for the year. I’ve never managed to save that much money in one year so this will take discipline, as Gail often says. To soften any bumps along the way, we haven’t taken into account the fact that we will be getting some money back at income tax time so whatever money we get back can help to meet these goals if we’re falling short. If all’s well financially, we’ll re-invest the return into our RRSP’s.
January 11, 2010 at 10:24 am
Joanne,
It sounds like your budget is not reflective of reality. Do you have a category for house maintenance? All of the items you described as emergencies are really just natural upkeep of a house, and you should expect a few things to break down each year. It happens to everyone – the difference is whether you’ve budgeted for them or not. Your setting yourself up to fail if you don’t plan for the normal wear and tear of items in a house. There will always be something that needs repair or maintenance. Gail recommends putting aside 2-3% of the house’s value into your home maintenance fund. If it is truly impossible for you to find the money to plan for these expenses then you may be stretched too much financially, and either need to lower your housing costs (ie. sell & downsize or get a tenant or another creative way) or make more money.
Good luck…:)
January 11, 2010 at 10:28 am
Joanne, I am sorry for your troubles. I will send some good wishes out to the universe to stop your bad luck. I hope 2010 is better for you.
January 11, 2010 at 10:37 am
Saving for House Maintenance is very important. I didn’t realize that till I started following Gail’s advice. When we lived in a condo, we had a condo fee of $250 per month. When we bought our house, we thought we could increase our monthly mortgage payments by $250 since we wouldn’t be paying that condo fee anymore… however, I’ve since come to learn that whether you pay it to a condo board or to a self-directed bank account, you should STILL sock away a few hundred dollars each month for home maintenance. This is now incorporated into our planned spending fund. As we grow this account, we will be sure to leave behind a minimum balance of ~$2500 to cover untimely home repair bills. As our home gets older (it is only 4 years old right now) we will increase the minimum balance so there will always be *some* money available for home maintenance. Like what’s happening to Joanne, it would be very frustrating to try desperately to follow a budget and get ahead, only to be knocked down by one home repair need after another. Good luck Joanne, and I hope you house stops hindering your attempts to stay on budget. If not, I agree with the previous poster… you may need to re-evaluate whether or not your housing costs are too high for your income. Can you make more money somehow to help cover the immediate costs before you?
January 11, 2010 at 10:44 am
Our goal this year is to not go further into debt. DH is presently in school for re-training and our income has dropped significantly since he was laid-off of work.
We have decided to refinance our mortgage to allow for more cash flow each month. Right now it just doesn’t make sense to leave it as is. We had taken a shorter amortization because we could afford it, but life threw some nasty dragons in 2009. I’ve given this a lot of thought ans soul searching. I felt like I was a failure to consolidate but really I’m just re-packaging. I’m not in any hurry to pay the house off. We bought it for a wonderful price 5 years ago and consolidating will still be well below market value.
Next year when DH is working again, our son will be in school and childcare costs will be significantly less. We will re-look at the mortgage at that time and possibly increase our monthly payments.
With the change in cash flow we should have an xtra $500-$600/mth. Surely we can build some more savings and not go into any more debt.
January 11, 2010 at 10:52 am
I met my most of my 2009 goals. They were to set up a TFSA for me and my husband and to max it out. My other goal was to quit my full-time job and find one in my professional field. So I did quit my job and then found a short-term contract in my field but I now find myself unemployed. My goal for 2010 is to find a job and live off Gail’s jar system to minimize the damage to my emergency fund until I have a job.
Fortunately our expenses are relatively low but our tv broke at the end of 2009 and my husband needs a new computer. Wwe are fighting the urge to buy new ones out of fear that I’ll be unemployed for a while and we’ll run out of money.
Once I find a Full-time job we’ll re-evaluate our goals.
January 11, 2010 at 11:16 am
I love this type of post!
For 2010, I am planning to pay $15,200 towards my debt, by the end of 2010.
I am also planning to have increased my savings accounts by a total of $3,000 and my RRSP by another $1200 this year (before the performance of my funds is accounted for).
I plan to write everything down and be diligent about this, and to stick to my budget.
This year will be the first 18 miles of the marathon I’ll finish in 2011.
January 11, 2010 at 11:22 am
I’m all for manageable goals, but sometimes you need to push yourself until you’re just outside that comfort zone. When you achieve something you weren’t quite sure you can do, it’s the greatest feeling in the world because you exceeded your own expectations. Like taking that half-pipe with your snowboard even though it feels like Mexican jumping beans have taken up residence in your stomach. That’s how self-improvement happens: not by doing what you know you can do, but by going beyond it.
Achieved my goal in 2009. 2010 is for socking away a significant amount in various retirement and savings accounts. 2011 is the year of the new car. I figure by then my ‘98 Honda Civic might be willing to die.
January 11, 2010 at 11:28 am
This year we have what others may consider a small goal, but it’s one that we can handle – to save for Christmas! We started banking $60 a month in September of last year, and it was so great to just reach into our ‘pocket’ and pull out some money for Christmas. So we’ve tweaked our budget and are going to top it up to $100 a month for 2010.
Maybe this is just a little baby step – not the $10K or $20K everyone else is talking about – but this is huge for us. And I think it’s important not to get overwhelmed by all the numbers, but to have a budget that is sustainable and enjoyable in the long run. This was our big lesson of 2009.
January 11, 2010 at 11:31 am
Ann, I agree about stretching yourself outside your comfort zone in order to exceed your expectations! That’s what I keep reminding myself and hubby when we get to the end of the jar money a few days before the end of the month! Go a little bit hungry for the ultimate goal, otherwise we’re back to square one! Thus my very tight jar budget where every penny is used up each month. In spite of that, we manage and do not dip into savings in order to get through a handful of days without money – we just suck it up and stop spending! We FEEL very poor, but it’s all self-induced in order to meet or exceed our goals, and that’s a GREAT feeling!
January 11, 2010 at 11:49 am
My plan for 2010 is to stick to my budget in full. I started last year but I was never diligent about it and this year Im ready for change so 2010 this is it. My goals for 2010 include paying off my $1900 in cc debt and making a dent in my car loan while saving $$$ for a trip home and EF after putting money away for long term-ef and debt I have 400 left to do disperse between my goals. As well my last goal is to get my partner in line with his money and buget one day we will have joint accounts and a house and the white picket fence so we need to be on the same page when it comes to finances and he has a bad habbit with his cc that will have to be addressed this year. Best to all of you for 2010 good luck on your goals
January 11, 2010 at 11:50 am
Last year we survived some serious dragons, and managed to save around 8500 in emergency by dropping our morgage payments (we were overpaying by quite a lot). Also put money in RRSP (all my bonus) and RESP (very modest though).
My goal this year is to put the mortgage payments back up again. And not to run into any dragons. My goal is that everybody stays healthy.
If you say that’s a silly goal, it’s about as silly as the goal of “having a
baby”. Sure, you have some input in the process, but not as much as you’d think.
January 11, 2010 at 11:51 am
My big goal this year is to save enough money so that my husband and I can try to start a family. That means saving about 5,000 pounds and making sure we can live on my husband’s income plus the (very small amount of) maternity pay that is available in the UK. It’s cruelly imbalanced here – men only are allowed 2 weeks of unpaid leave and women get 6 weeks at 90% pay followed by 33 weeks of what for me is 30% pay.
Another goal is to save the 1000 pounds required for my husband to apply for residency status (no visa required to work) in the UK.
We have no consumer debt and no mortgage, and I want to keep it that way, I guess that is a good goal too!
January 11, 2010 at 11:52 am
Alicia- Great goal I did that mostly saved up for christmas and bought christmas gifts when I found something sutiable and it made my christmas LESS hecktic and more enjoyable except for the last miniute splurges which next year wont be as that was my only mistake for christmas this year but whats done is done and theres nothing like being ready full throddle when christmas arrives
January 11, 2010 at 11:53 am
@ioana – so glad I said “*try* to start a family”!
January 11, 2010 at 11:54 am
Last year I had goals such as $1,000 EF fund, and paying of my $3,000+ c/c balance by the end of the year (there were a few others, but those were the biggies). This year, my partner and I are aiming to become 100% debt free, and reach $12,500 in our house down deposit fund.
January 11, 2010 at 12:04 pm
Our goals for 2010:
- we have $40,000 owing on an LOC and currently pay $2000/mo on that. I’ve picked up some extra contract work for the next 4 months which should reduce it by at least $8000 more, but I’d *really* like to pay that puppy off by the end of the year
- our car loan will be paid off by July — that amount will either go towards the LOC or boost the emergency savings fund (currently $200/mo)
- wow, I’d really like a vacation, but that seems unlikely this year as the budget’s already balanced at 0! And in reality the last time I went on an expensive vacation I didn’t truly get a sense of satisfaction proportionate to what I spent on it. Now it seems that appreciating a beautiful day at the park with our dogs or dinner with friends is what truly satisfies.
January 11, 2010 at 1:18 pm
My Goal in 2010 is to save $25,000 for a wedding and a down payment. I already have $25,000 of it saved. I’m really luck that I live at home and am able to stock away about 75% of my net income for savings (my parents don’t charge me rent). They maybe they should but I am saving as much as I can and not living on thousands of disposable income a month
January 11, 2010 at 1:23 pm
We didn’t have any detailed, definable, measurable goals for 2009; just “make a budget” and “save some money”. We did too! It was more of a feeling of “enough” and “just right”. Not the best way to make a goal but I didn’t really want to make a goal so it worked out.
Note to people embarking on mat leave/parental leave. Your company may require you to continue paying into your pension while you are off on leave. This will eat up a large part of your already reduced earnings. Other than that, congratulations!
January 11, 2010 at 1:39 pm
My goal last year was not to give a cent of interest to any credit card companies. We did it and I was so excited. I even put it as my facebook status! I bet a few people thought that it was a simple goal and others thought that it was inspiring.
I wrote down all by planned spending goals, emergency savings, RESP’s for both my girls, charity donations, rrsp’s, and TFSA goals that I would like to achieve this year for my husband. I asked him to look over it to see where he would like the money directed and if we can financially afford it. You just have to give up little things everyday and not feel bad that we can’t go out for dinner etc.
Good luck in 2010 everyone!
January 11, 2010 at 2:02 pm
I recently discovered Gail and just love her no nonsense advice. in 2009 goals were just to make it until I graduated. Now, 2010 is to live on the budget for real this time (started with my jars this week). We are actually living off one paycheck, which is what we did when I was a student, so why not when I am working and devoting my entire paycheck to debt repayment so we can pay off all our consumer card debt. This is doable in a year times. Next year, tackle the LOC and then my student loans.
January 11, 2010 at 2:04 pm
Managed to save up a $5k emerg fund in 2009 – first time in my life – and got rid of one CC. All but one of the rest (low interest rate) should be gone by June 2010. Thanks to Gail, yay! Didn’t pay off as much debt as expected, boo. Back on track for 2010, though.
January 11, 2010 at 2:04 pm
We have some basic goals which are standard recurring items every year. We consider these the minimums we need to accomplish, but if there are no other big expenditures/surprises that year we ordinarily exceed on #4 & 5.
1. No new debt
2. Maintain 6months EF
3. Maintain accelerated morgage payments
4. Contribute enough RRSPs in DH’s name to get him down a tax bracket (results in a refund of ~85% of contribution)
5. Contribute a minumum of $6k extra toward mortgage.
In 2008 we did #1-5 plus took two holidays and replaced the dishwasher (all cash).
In 2009 we did #1-5 plus replaced my husband’s 1997 Suburban with a 2004 Durango (cash) and did $2k in repairs to my 2000 Honda (cash), and did $2k in additional mortgage payments beyond the basic $6k target.
For 2010 we’ve so far only committed to the first 4 we normally do every year. I’m expecting to be laid off in February so while we still intend to make extra payments toward the mortgage, they won’t be happening until I’m in a new job. Likewise, extra RRSP contributions over the normal plan aren’t scheduled at this point. While we had intended to take another big family holiday this summer, I keep arguing with myself that no matter how great the deals are I have no business committing to anything until I’ve landed a new job. And the the money set aside should probably be left alone and consided extra emergency funds in case it takes longer than 6 months to find a new job. Once my job situation is resolved we’ll reevaluate what we can commit to beyond the basic 4 targets. I’m hopeful that we’ll catch up in the second half of 2010 and my job turmoil just means we do things on a different schedule this year, but ultimately get it done by year end (although perhaps without the holiday).
I find setting concrete goals for each year really helps. I used to just think in general terms about what we ought to do, but the problem was I never knew if I was on track. Invariably we wound up scrambling to contribute to our RRSPs on February 28th because we realized we hadn’t done enough during the year.
On the longer range planning, we want to retire a little early at 56/59 in 10 years. We may not want to retire then, but at least we want the option to do it. As a result many of our day to day choices now are done with an eye to that December 2020 target. Depending on many factors, we may not be able to do it, but I figure it certainly won’t happen if we don’t set the date and have a target to work toward.
January 11, 2010 at 2:06 pm
My goals were pretty basic for last year – take a cheap vacation once a year, max out my TFSA, and continue paying off my student loan so that it can be paid off by Dec 2010.
These goals were all met, and this year, my goals are somewhat similar:
- I’ve got the plan to pay off my loan by November 2010 (that will make it three years from when I had to start paying it off – a far cry from the 15 years I had to sign up for initially!)
- Once my loan is paid off, increase my TFSA/RRSP/general savings using the money that would have gone to my loan (so I have house/wedding/emergency fund money set aside for the next 10 years plan)
- Take another vacation, using my “bonus pay cheque” for the year. Leftover money there goes into my “fun fund” so that I have some lee-way if I decide I want to spend some more money in a month on theatre/entertaining friends/etc.
- Give more to charities (once my loan payment is no longer taking 40-someodd percent of my take home pay, I can certainly be more generous with my money).
January 11, 2010 at 2:10 pm
Last year I paid off my OSAP debt. It was an unwritten goal of mine. This year I have written my goals down to help remind me and stay accountable. I want to
-pay off the $5000 to my family loan
-save $4000 in a TFSA
-save $500 for Christmas
-put $1000 toward retirement
-make an additional $2010 in ways other than teaching
-save $300 for a trip to the states
Ah it seems like a lot based on my very low income, but I think I can manage. Then 2011 will be very nice without the debt!
January 11, 2010 at 3:07 pm
Our big goal for 2010 is to buy our first home. Even though this is our 2010 goal we started planning for this in 2009, researching mortgages, costs of owning a home, commuting costs, property taxes, insurance, and saving, saving, saving, etc…! We have planned like this before; in 2009 we paid for our large wedding which we had started planning for in 2008 and for 2010, part of our financial planning includes researching the cost of starting a family in 2011.
Its a process that works for us even though it is hard to pinpoint a date for either goal. We want to buy a home sometime between March and October this year, but we need to see what’s on the market, what prices are like after the Olympic rush here in Vancouver, etc… I always find every year I need to revise our financial timeline a couple of times, usually for good reasons, like my husbands recent promotion or my raise, which adds more money to the savings jar, and moves some goals up a couple of months. And then, even when you think everything has been figured out there are always the surprises. Like 2 weeks into our 2010 financial plan, my Dad is taking a contract oversees, in the middle east, for one year, so now we need to budget for a trip somewhere in either Europe or the middle east so that I can see him at least once in the next year. And this was supposed to be our no travel year!! (except for, of course, the annual road trip to the Calgary Stampede) Its kind of like Joanne’s pump, it needs to be done but timing is flexible.
So Gail, since you’re asking how you can help: What would help us the most is an idea of the financial expenses we should plan for when trying for a family? We know the obvious stuff like the cost of cribs, diapers, babysitting, etc… but I was surprised by how many people mentioned RESP’s above, something I wouldn’t ever have thought of!! Anyhow another great blog, always a conversation starter over the dinner table!!!
January 11, 2010 at 3:11 pm
Well, my very first goal was to make a ‘realistic’ budget and stick to it! I have been making budgets for years now and they never really worked. Now I know why… whenever I thought I needed something I’d just fudge the numbers, and that included ‘paying myself’ from my credit line. Ha, how stupid was I?
But now I’ve found Gail’s advice, and your comments, and I have a much better view of how to budget. Who knew 15% of my take-home should got towards debt and only 25% towards life?!? Not me, and I’m sure there’s an awful lot of people out there who still don’t know!
I’m still working on the rest of my goals. I know I want to pay off my credit line this year, plus put money in an emergency fund and house maintenance fund, plus maximise my savings, but I haven’t sat down and worked out the exact numbers yet. So I guess my next goal of 2010 is to do set my goals! lol
Have a great year everybody, may you all find joy and happiness a la Gail!
January 11, 2010 at 3:24 pm
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January 11, 2010 at 3:24 pm
This is a great post. This is my first year doing a financial goals list — I haven’t done it in the past (because I was lazy) but now that I quit my job and own a business I made sure to write them down. Like many posters before me, my husband and I are focussing on TFSA and RESP. I have also set up vacation funds, gift funds but the contributions are quite minimal as we are trying to max out on everything first.
We will be trying for a 2nd baby too this year so we have to plan for that as well. Looking forward to seeing how everyone does in the next few months. It’s geat having cheerleaders and supporters
January 11, 2010 at 3:55 pm
My goals this year is:
- to get the student loan down $6000, which will leave about $2000
- resume additional mortgage prepayments after wedding and honeymoon in June
- get emergency fund up by $1800.00
- plan better for expenses that are not monthly
2009 was a interesting year. Moving into our first house proved to be very trying on our bank accounts. We had accounted for all the things in regards to renovations and closing costs but I had only set aside $2000 for furinture and misc. items. That was definately not enough. Oh and don’t forget a lawn mower, weed wacker, lawn sprinker, rake, snow shovel, etc.
Holy crow …. I new all this stuff was going to need to be purchased but I thought well we will just purchase it when the extra money is there. While spring and summer came before the extra money was there so our lawn started to look like a jungle, therefore we had to use credit. Fortunately I got a unexpected bonus that paid it off. Phew, dodged that interest.
January 11, 2010 at 4:00 pm
Great post Gail ~ hope you had a nice weekend!
Our 2009 goals were:
-each of us have a $5,000. TFSA – check
-put $1,000. in our grandson’s RESP – check
-no interest paid on a credit card – check
-credit card paid in full at the end of each month – check
-pay off LOC as much as possible … $27,163.91 paid – check
-use cash – we did most of the time but must improve
Hubby retired the end of June 2009 so things for 2010 don’t look as rosy. Not in our best interest to continue putting money in RRSP’s at this point I don’t think – especially as I want our LOC a distant distasteful memory.
Our 2010 goals are:
-add $5,000. to each of our TFSA’s
-put $1,000. in our grandson’s RESP
-no interest paid on a credit card
-credit card paid in full at the end of each month
-use cash
-pay as much of the $28,000. left owing on our LOC – I had originally planned on
having this at zero by December 31st but:
- we had a dragon that cost us $3,500. paid cash without touching EF
-we have to save up $3,000. to have our house rewired in the Fall
-we are saving to rent a cottage for a week (an hour away…nothing Carribean)
-saving up for all Christmas expenditures
It’s hard to hear of the sales and refrain from participating. We’d really like to have our floors redone (from 1986 carpet to wood) but will only do so when we have cash in hand. The government says they’ll give $$ back till January 31st…so I’m sitting on my hands – urg!
Off topic:
@Geoff and Marie
Did a little survey at work this a.m. Asked 4 co-workers who have RRSP’s to please tell me everything they know about MER. The answer each time was ‘nothing’. When I explained they said they were told when they started taking out RRSP’s that the agents were paid a salary and that there would be no expense to them. Even though I feel a dunce about all this, at least I’m not alone. Thanks for the insight!
January 11, 2010 at 4:12 pm
Our last year goals were to live on cash as possible.
Like Auto Maint. saved Cash check
all Christmas gifts. cash and spend less on them.. check
bring down c/c. Not as much as I liked but we got in a small vacation
that we needed instead. ( Vacation was cash )
By end of last year to total be on cash with purchases. Kinda of! A lot more than when we started…
Have Husband on board sooner than later.. Finally sometime last year with a lot of patience…..
Have more in emergency savings than $1000. Got to that goal and than didn’t go any farther to next 1000. Will have to work on it this yr..
For 2010 yr Goals should be:
$3000 in emergency fund
Few hundred in auto and house maint., clothing and other savings categories.
Go on a 2 wk vacation in the summer with cash saved up for it.
Pay off taxes this yr and get a jump stART for next yr..
Pay off c/c and than don’t pay another dime of interest..
Save for a few big ticket items that needs ( plus want a little too) to do this year.
Pay for more than half of extra auto off and pay it off in 2011.
When it’s time to renew insurances for house and autos insurances have cash to pay for the year. Instead of paying extra 5% each month for the service of monthly payment and $1.5 for monthly payment to company for house ins…
January 11, 2010 at 4:26 pm
I did the same as Alicia for Xmas last year – put $15.00/week into a savings jar and never touched it till December. This money came from my weekly cash allowance. I didn’t increase my allowance to allow for it. Proud of myself for that little change in savings.
My goal this year is to max out my TFSA – I have the bank automatically take out $400.00 a month so I don’t see it in the bank book (yes, I’m old school and still have a bank book) and end up spending on something else.
January 11, 2010 at 4:56 pm
@Manisha
Check out Gail’s website under Amazing Articles, there is one on gearing up for baby.
January 11, 2010 at 4:58 pm
@Manisha
Gail also did a blog on November 13, 2009 called baby gear where she outlines the basic needs. Search on Baby Gear to find it or look in the blog archives.
January 11, 2010 at 4:59 pm
2009 Goals were:
Paid CC in full (-9800) (done oct. 09)
Cleared Loan RRSP (-3200) (done sept 09)
Started high yield saving account (TSA) (+3500 need to used 1500 down paiement for a car)
Making additionnal money (+4000 after taxes) and applied it to debt and travel!
I Switched bank (lower my banking cost)
2010 Goals are
- 7500 knock down on the LOC (car)
+ Maintain a no CC fee
+ 4800 in saving account
+ 2500 RRSP (paid cash, no 4-years loan anymore…)
+ Cheap travel
+ sofa needed soon (50% is accumulated throught 2009 gift cards)
Big and motivating year for saving. All those efforts will help to go futher in the process of becoming an home/condo owner in 2011.
January 11, 2010 at 5:05 pm
@ Catherine – and what did your coworkers say when you asked them where they thought the money for the salesperson’s salary came from?
See, I think this is a matter of perspective. It is true that contrary to some investment strategies (ie a group scholarship RESP program) that the money you are investing is not being subjected to fees. 100% of the money you put in, goes in. It’s just they take a cut off the top forever and don’t show you, that upsets me. I’m only 34 though so the impact has been relatively minor, my rrsp is just starting to really grow but if I found this out at 60, I’d have been upset.
Did you find out what your MERs on your funds are? Generally speaking equities will have bigger MERs than bond/fixed income products, but then again bond/fixed income products shouldn’t have MERS at all!
January 11, 2010 at 5:32 pm
thanks Sedonahike!
January 11, 2010 at 5:53 pm
@ Manisha – childcare will likely be your biggest expense, unless you or your husband can work from home.
January 11, 2010 at 6:04 pm
Two questions =– our 2010 goals involve growing our savings and working towards debt repayment.
Should I put my $1000 bonus into rrsp’s or put it on debt repayment? We are $42,000 in debt but working on a 3 year out of debt plan. We probably won’t have to pay taxes because of daycare this year but we only have a little over $100 in new rrsp’s for 2009.
We have a relatively low loc but it is higher than our new cc with 5.99% interest for 5 years. We can transfer another $9,000 to the new cc leaving us less than 3,ooo on the loc.
January 11, 2010 at 6:23 pm
Gail cover your ears…
I forgot a newish ongoing target I began last April when I received my new Aeroplan VISA. Put every dime possible on the VISA to maximize the Aeroplan points.
Don’t flip, I know it runs against all that’s sacred and Gail-esqe, but when you want to travel like we do it makes a lot of sense. I pay off the VISA every WEEK when I balance up the bank account and online CC statement against the items on the Excel spreadsheet of our planned spending for the year. We never carry a balance, never pay interest and I truly don’t believe we spend any more, I just get credit for paying a different way. Once the December points post in another few days we’ll have enough for all 4 tickets for our next trip to Europe.
In past years we allocated $80 a week in cash for miscellaneous. Trouble was we never took the time to write down what it was spent on. Now that we use the VISA everywhere they take it and the online account has it all nicely itemized for me. After reviewing our cash consumption for 2009, I’ve put reduced the planned cash withdrawl to $20/week for 2010. We may not even go through that much. The last couple of times I put a $20 in my wallet I put a post it note on it with the date. It often sits there for a month or more untouched. All our regular bills go directly on the VISA, so other than a vending machine or parking meter I can’t think of anywhere I’d spend cash anymore. I used to have insurance automatically go out of our bank account monthly. This year I paid the entire year upfront so I could put it on the VISA. At nearly $5k for house, cars, RV I hated to pass up the 5000 miles. Also with my layoff on the horizon I’m relieved to have removed that $415/mth payment from the schedule every month in 2010. It means our EF has to cover that much less when the time comes.
I’m sure the people who see me putting $10 in groceries on my VISA are thinking, poor thing, she can’t really afford her groceries. Meanwhile I’m thinking, “I got only what was on the list and I’m 15 miles closer to Venice”.
January 11, 2010 at 6:26 pm
@ Jenn — Gail is not against credit cards per se. This has been covered many times on this blog. She’s against spending more than you make, and most people who have a problem with that, tend to use credit cards to make it happen, that’s all that’s it. But if you spend $20 you can afford in cash or on a credit card, then that’s all good!
January 11, 2010 at 6:37 pm
When I made my goals in 2009, I didn’t think that becoming debt-free was attainable, so I didn’t want to set myself up for disappointment by putting it as a goal.
I don’t know how I did it (oh wait, yes I do…hard work!), but I managed to pay off ALL of my own debt, about $12k. I also started an emergency fund (started the year with over half of my first months’ expenses), started a car savings fund, and found enough money left over to take 2 trips to BC, a trip to Boston, and Halifax!
This year my financial goals are to have half of my emergency fund saved for ($2.5k), keep plugging away at my car savings (I want a new Volkswagen!), keep plugging away at my retirement savings, and to stay out of debt!
I have also put myself on a strict $100/week cash budget, and I’ve made it through the first two weeks of the year. It’s amazing how many things you can cut out of your life that were unnecessary/eating up cash.
January 11, 2010 at 7:40 pm
My savings goals for this year are pretty much the same as last year, except I don’t have an emergency fund to contribute to because now I’ve got six months of essential expenses saved! I just need to stick to the plan for my savings and it’ll be smooth sailing.
My spending goals are tough, though. I have a few things I really want, and I can’t afford ALL of them this year
January 11, 2010 at 8:06 pm
I can happily report that yes I did reach my 2009 goal. Pay off my car.
My goals for 2010 is to finished paying off the credit card and work on my emergency fund.
January 11, 2010 at 8:19 pm
@Geoff~I feel like we live in different countries. You are so knowledgeable about investments…me? I’d like to put my $$ under the mattress. My coworkers (aged 60, 56, 52 and 49) were shocked by what I told them. Talk about co-ink-e-dink…guess what came in the mail today? Our investment info. with several brochures about fees etc. I couldn’t find the letters MER anywhere. So, I’ve roped hubby into agreeing to make an appointment with our investor to get things straight. He can give me the Reader’s Digest version. I’m dizzy enough.
@Stephanie~if it were me, I’d think about putting your $1,000. bonus into a RRSP (yes you do pay a fee for this service…) and any refund you get back put it on your debt. If you don’t think you will get a refund at all, then I’d put $500. into a RRSP and $500. onto your debt. Just my humble opinion.
January 11, 2010 at 8:36 pm
Oh m’god! Is there really a fee for paying insurance monthly?!? I had no idea… I was wondering why all of you smart people were paying yearly… I’m heading to the filing cabinet right now to pull out my paperwork!
I love this blog, it’s amazing what you learn
January 11, 2010 at 9:19 pm
2009 was a big year for us: first house (5% down), new car (25% down) and a wedding (cash!), but we managed to save up for these while also getting rid of my credit card debt (all of it!). I also started making significant payments on my student loans (instead of the treadmill payments I was on before). Started an emergency fund and increased my RRSP contributions (which I want to continue to do as there’s still quite a bit of room) Good year.
2010 Goals:
-Attain 3 months worth of expenses in emerg fun by end of the year
-Pay off provincial student loan (will happen next month OMG!)
-Increase National Student Loan payments to be on track for 2012 payoff
January 11, 2010 at 9:58 pm
@ SophieW – the cost is usually more if you pay insurance on a monthly basis. Just do the math when you get your renewal. My insurance company (TD Meloche Monnex) doesn’t charge more for the monthly payments, so that is what I’m doing for one of our cars (I’m on Mat Leave right now), all the others were paid in full before I went on leave.
January 11, 2010 at 9:59 pm
SophieW; I pay my insurance monthly and I do not pay a fee to do so (I quizzed my agent at the initial setup and again at my renewal as well as checking my policy). However, if I paid it quarterly – there would be a fee – you will have to find out from your insurance company for sure.
January 11, 2010 at 10:19 pm
Catherine – thanks I think we will do that.
In BC, ICBC charges a small % for monthy car insurance (maybe 2 %). We pay monthly right now because compared to other interest we are paying for it would not make sense to save up for that vs. pay down higher interest faster. Once we are debt free then we will be saving up in adavance for car insurance.
Our 2010 goals include celebrating the small steps. As we pay off one debt, we will go out for dinner (with a coupon) to really mark the occasion! We should be able to pay off our overdraft, one cc
January 11, 2010 at 10:21 pm
—- and our LOC. I read Gails new book and she says that you need to mark the small achievements too.
Good luck to everyone on their goals this year.
January 11, 2010 at 10:23 pm
Geoff, you wrote:
“Did you find out what your MERs on your funds are? Generally speaking equities will have bigger MERs than bond/fixed income products, but then again bond/fixed income products shouldn’t have MERS at all! ”
Funny! I don’t agree! Someone is hired to conduct the transaction and some transactions have costs. Bonds have to be posted on a secondary market to be able to sell them after purchase and before they mature. That system costs something! Don’t forget all the people involved in put MFunds together (lawyers, accountants, their assistants…).
I remember when I first found out that the TSX has a TSX listing! Huh? Yup, they make $ via transaction fees (and possibly many other things).
Catherine:
I like the magazine MoneySense. It’s not cheap but it has useful info. The writting is not too difficult to follow. You can get some of the articles via the website:
http://www.canadianbusiness.com/
(Canadian Business could be a bit much for a beginner and a non-business oriented person). The Canadian Capitalist website offers good info.
I learned this stuff bit by bit, but I will admit that I enjoy the reading. I recommend NO MORE than 1 article per week, until you get hooked. I forget when and how I started, but I did.
January 11, 2010 at 10:37 pm
With my last car payment made last Friday, I am now completely and utterly consumer AND mortgage debt-free! So my number one financial goal for 2010 is to remain that way.
2. reallocate the money used for my car payment to maximize my TFSA early and once that is done, reallocate it and the regular TFSA payment I was making to the emergency fund.
3. get my important papers in order by February – I know it’s not necessarily financial but it’s time for DH and I to get our wills and POAs in order, update the beneficiaries to all my insurances and pension plans (being a work surfer for 20 years, I have 3 vested pension plans so I need to make sure my DH is listed as beneficiary for all of them, plus my work insurance which I got prior to us moving in together).
4. Save $4,000 for a 2011 winter vacation in a very warm spot.
5. Never pay another credit card interest payment or bank service fee in 2010 (and carry this through year after year) To do so, while I make all regular purchases (in accordance with the budget) on the credit card to get the airmiles, the money is moved into planned spending immediately after each week’s transactions so that on receipt of the bill it is immediately paid. And to eliminate my monthly bank fee in my chequing account, I need to maintain a balance no less than $3,000. So I have been doing that since October and am proud to say after years of contributing to my bank’s profits through interest payments and bank fees, I no longer do so.
January 11, 2010 at 11:03 pm
Pay off LOC by August 2010. Start a savings account for a new vehicle/vehicle repairs (already started it, actually). Start savings for holiday (started). Use cash. Continue to be amazed at how well gails budgets work.
Oh, and keep hubby away from the car lots and electronics stores. I recall one other fan on this site once said “the best time to buy a new car is when you Need one” and I am using that as my mantra. Ditto for the big screen tv hubby is yearning for.
January 11, 2010 at 11:03 pm
My goal for right now is to track my spending so that I know what I’m spending my hard earned money on. I usually browse the credit card bills when they come in, and always pay them off in full. But now I want to know exactly what I’m buying, so that in a month or two I’ll know where I can cut back so I can seriously start saving.
The other day I found a strange charge on my credit card. $75 USD (80 CAD). Not that much. Not sure if a year ago I would have noticed this charge. Anyways, the charge should be reversed soon, and the credit card has been canceled (ok, it’ll be replaced, can’t live without it).
January 11, 2010 at 11:47 pm
Thanks gail for posting this. I needed to hear that goals should be realistic and attainable.
January 11, 2010 at 11:52 pm
btw, my goals are:
1. use cash except for bill payments (to earn points)
2. think, rethink, and rethink again before buying something
3. maximize TFSA by the end of the year
4. build an emergency plan (will start with 2 month’s worth of essential expenses)
5. afford the trip to the other side of the world to attend my sister’s wedding in May without a single debt (or if there is any, I have the money to pay for it)
6. be able to afford my next school year’s tuition fee and books without using credit / OSAP
WISH ME LUCK!!!
January 12, 2010 at 1:35 am
Funny thing, I had the same comment for Joanne as the other Jennifer had.
It does sound a little bit to me as if the costs you are referring to are general repairs and maintenance and are likely to come up each year. We have an 1980’s house too, and I have emphathy with the maintenance costs!
It sounds like your budget is stretched quite thin. I do wonder if you got stretched too far when you bought your house? I think the other Jen’s suggestion of looking for a tenant is a good thing, so that you can have a bit more room in your budget to save. Have you ever considered taking in an international student? You don’t need a whole suite (just a private bedroom), and I think some agencies pay $500+ – $800 or so per month. If you have a younger student, you will need to devote time and energy to them (of course), but if that’s not your thing you can always look to slightly older students.
If it works, you can then use say half the money to put into a seperate account for house maintenance. The other half can go into savings / emergency fund / other.
Good luck, and I too am sending you good karma wishes. But I think a good plan + karma is the way to go.
January 12, 2010 at 2:07 am
My goal is to pay off my travel credit card! Yikes I am up to $4000!! I started with $500 a month in Dec and now in January. I always pay my balance on my every day card, but let the travel one run up like crazy!
January 12, 2010 at 6:52 am
[...] setting rules are all over the place. Very recently, MoneyNing, Financial Highway, and Gail Vaz-Oxlade had some good posts on the topic. Really, you can’t hear this stuff too often. I’m [...]
January 12, 2010 at 9:08 am
My goal for last year: pay off the loc (40k for house renos) – done.
My goals for this year:
1. Do not carry a LOC balance ever (CC doesn’t carry a balance)
2. 10k for TFSA
3. 30k for RRSP
4. Establish a new budget based on a lower salary so that I can work less
Not sure if 2 &3 will conflict with 4 but I will try to do all of them!
January 12, 2010 at 10:13 am
@ Marie – I was mostly kidding when I wote that bonds shouldn’t charge an MER. I realize there are some costs that need to be covered in performing the transactions. However, the theory behind MER is that your funds are being managed. I can buy that more in an equities market, where supposedly expertise is paid for so they can pick the right stocks. However, to charge a 2% MER on a bond market, where let’s face it, the gradings are done for them and the only thinking involved is if you want a provincially-backed bond or a government bond (etc), a 2% charge is too high. But a small 0.5% MER seems quite reasonable.
@ Catherine – if I’m so smart, how come I’m not rich?
What I do, however, is ask a lot of questions. A lot. A lot a lot. Plus I read. And the library has tons of books on finances too.
January 12, 2010 at 10:15 am
@ Catherine — when you meet, also ask your advisor is your funds are front or back-end loaded, and what your DSC (deferred sales charge) fees would be if you withdrew them all. These are the charges, usually expressed as a % of total invested, that you would be charged to withdraw your funds. Usually it’s tiered, so that if the money has only been in 1 year, it’s 3% (etc) and in year 7 it’s 0%.
January 12, 2010 at 10:25 am
Well I didn’t have any written goals for 2009, but my unwritten ones were to pay off my student loan (which I did, took me 3 years instead of the 9 years that was suggested!), start a TFSA & RRSP (and I started both).
As for 2010 I’m actually working on writing down my goals this year, so that I have a more concrete plan.
I would like to max out my TFSA, possibly max out my RRSP & start saving a down payment so that in the future I can buy my own place.
All the best to everyone in 2010.
January 12, 2010 at 11:10 am
@Diana, Jennifer, Mrs. T & Jen – thanks for the kind and thoughtful words
Yes, we are stretched rather thin on the budget, and I am currently looking for a part-time job to supplement our income. I currently work fill-time.
Unfortunately we can’t rent out a room in our home (and I have done that before), because we live in a 2-bedroom house, and my husband’s son occupies the other bedroom (he’s 17).
We are going to give our situation another 6 months and see what happens, and if things don’t improve, we may have to sell the house. Although, the housing prices have fallen since we purchased the home, so I don’t even know if we would get what we paid for it.
I just started watching Gail’s show, and I am happy to say that last week I did have some money left in my “jars”. I am going to remain positive and will be going on a serious job hunt this weekend for a part-time job.
Here’s to 2010!
January 12, 2010 at 12:37 pm
Currently I have pretty much no savings. Well I guess that isn’t true. I have I think $3000 in RRSP’s and about $300 in a TFSA that I just set up recently. My goals for 2010 are to pay off the balance on my Visa ($1900), pay off $2000 on my personal loan and to earn an extra $3000. I also just started an emergency fund, car fund and house fund (TFSA account) which I hope to start putting more money into. Hopefully all goes as planned! Thank you so much for all of your posts and advice. I love how honest and blunt you are
January 12, 2010 at 3:00 pm
@Geoff~Ah…now I see! I also ask a lot, a lot, of questions…just different ones. I keep our library functioning (usually 6 books read a week) however, they are not finance books. I love mysteries, autobiographies, history and also love to bake – so love to read recipes.
Whenever I hear technical jargon I am reminded of the joke about the man out for a walk with his dog. The man is talking to his dog. All the dog hears is ‘blah, blah, blah”.
I printed off what you said to ask and will give it to hubby.
Never doubt that you are already a rich man. You have a beautiful family.
@Marie ~ thank you for the link. I’ll check it out. I’ll also see if the library gets this magazine. I have my doubts about getting ‘hooked’ though – math has never been my forte.
January 12, 2010 at 3:04 pm
Geoff:
MER on the Bond market is generally lower than the pure equity market. The MER for the index-based bond funds is also generally lower than the index-based equity funds. It bugs me that sometimes I find index-based balanced funds that charge “equity MER”.
January 12, 2010 at 3:06 pm
Catherine:
While at that website, the Couch Potatoe Portfolio is worth a good read.
January 12, 2010 at 4:00 pm
@ Marie – if I wasn’t married, I’d be asking you out for a drink right about now.
January 12, 2010 at 4:39 pm
Geoff:
I don’t go for internet affairs (or otherwise) anyways… nothing personal
January 14, 2010 at 10:12 am
Goals for 2009:
1. create a budget – didn’t work but I what I manage to create was a “maintenance fund” for the house, cars, clothes, and dog. I am extremely proud of that fund. this past 6 weeks, the cars have needed $3600 in repairs and the dog $2500 in surgery. Now, I should get some of the dog’s expenses back (insurance) but at least i had the money up front.
2. Add to the TFSA and emergency fund and RESPs. – yep.
3. Work on paying down the mortgage – yes to that too. MoneySense magazine says you can pick one thing and work on that. We have been badly burned in the stock market in the past. I figure, paying down the mortgage is risk free, why not do that?
Next year is a big year for us. Our goals are simpler.
1. fly entire family out west for a wedding – $8000, likely $10,000 for a two week trip of a lifetime
2. figure out how much time I can take on mat leave without going into debt, or dramatically changing our lifestyle. It is early days yet, but Gail says we should have looked into this when we first started trying. I did, and the numbers were too depressing.
3. Not worry about money because we have a plan.
If I can get through 2010 without worrying, that will be a first, and I will put it in a success post!
January 15, 2010 at 8:25 pm
Our goal for 2010 is to start living within our means. We have made a budget and are using the jars (Just started today). We have a plan on paying down our credit card debt and the goal is to have one paid off by August and the other by July 2011. Our other goal is to save enough money to pay for a little vacation to see my husbands best friend this June. My only other goal is to be able to breath by not living pay check to pay check.
January 16, 2010 at 4:31 pm
Hey Joanne, I know how you feel. I am in the same boat all the time, but trying hard to make things different. I set up a TFSA this year for our emergency fund. I also have an account I am putting some money in each month for home repairs etc. Like Angela, I vow to pay off my credit card debt by the end of the summer and then tackle our massive LOC.
Here’s wishing us all luck!
January 16, 2010 at 7:08 pm
Hi,
2009 I paid off all my debt following Gail’s way. I am so glad I found her. Followed her advice on CC debt, called my company, asked for 0% interest free consolidation. Now, all of my debt on 4 cards have been paid off completely. I have no debt but I need to find work otherwise I will go back in debt which I don’t want. There is only 1K left on my husband’s card which too is interest free and the money is saved for it so I am thinking of paying it down and both of us being completely debt free, total of 21K. Though my husband doesn’t like charting our spending but he appreciates the fact we are soon to be debt free and God help me with a job so at least I can keep it that way till I finish my studies. Pray for me!
Thanks Telus for your Calendar where I wrote every single purchase I made and kept track for each and every day. Many thanks to Gail for her lovely advice and her inspiring saying, “Is that paid for?”
March 14, 2010 at 11:10 am
2009 Goals:
1. To put $5000 in RRSP’s. — $4500 put in
2. Big vacation — Went out east @ cost of $3000, but paid cash
3. Establish $10 000 in EF — done
4. Put $5000 more into RESP’s — pushed to this year
5. Complete bathroom reno — $4000 paid in cash! No balance owing!
We had 2 unexpected purchases — 1 was a new vehicle, and the 2nd was our ‘dream vacation home’. ‘Summer home’ was purchased in cash. Truck was not
2010 Goals
1. $5000 in RRSP’s — done
2. $5000 in RESP’s — will be when tax refund is in next week
3. Keep $10 000 in EF — so far… property taxes and other seasonal bills coming up…it’ll be close, but should reestablish quickly.
4. Keep cc balances @ 0 — got to remind DH about this!
5. Take on small home reno project — new flooring in kitchen, or baseboards and ceiling in basement, whichever sounds most affordable and manageable.
6. Look at finances more closely to see where we can save more…
7. One summer weekend getaway @ budget $750 but pay in cash
8. Reorganize our finances — some of our banking practices just doesn’t make sense anymore…
9. Save an additional $5000 to establish a TFSA next year.
10. Have no regrets!
I had no regrets for 2009. Some may question my purchase of our ’summer home’ but it was the best purchase we ever made — it’s a trailer in a campground, not brand new, paid in cash, and, because we live in a rural area, this gives us, and our kids, a sense of community that we otherwise wouldn’t have, plus the added value of exercise with biking and swimming and other sports. Plus, our hydro is included in our seasonal fee, and we have air conditioning there (vs. at home). And, as an school employee, summers can be long
If we had known a deal like this was going to come up, though, we likely would have postponed our trip down east for another year, but we enjoyed both, and don’t owe on either.