Max out the TFSA
The Canadian government allows you $5500 of tax free, tax-sheltered room to do as you please. Personally mine is a retirement account (in my mind anyway) and I am trying not to touch it or use it for any other purpose. I use a TFSA-trading account. Come January 2015 I plan to add another $5500. I might double check to make sure I am not overcontributing by calling that hot-line (you never know…) because I made that mistake last year and but thankfully had the penalty waived from the Canada Revenue Agency.
Related: So I Over Contributed on my TFSA
If you have not contributed at all to the TFSA, you are allowed $36,500 of contribution room (that’s a lot of money, a great program from the Canadian government, one of the few ideas that I appreciate haha).
Right now, thanks to the hit in the energy sector, my TFSA has been hit (stands at $38,500 at the time of writing) but I hope to contribute the alotted $5500 and it should have $44,000 in it.
I plan to buy more ETFs with it and rebalance my portfolio.
Related: How To Balance Your Portfolio
Max out the RRSP
I usually contribute $200 a month to my TD e-series RRSP and when I have my Notice of Assessment I contribute more to max out the RRSP.
Last year I did not do this very well for a couple of reasons. I was hesitant to “time the market” even though I was not really timing it and ended up having a lot of cash just sitting there without any action. To be honest, I think I rebalanced twice last year only and it wasn’t at a predetermined time.
To fix that, I plan to rebalance in:
March, June, September, and December of 2015 (to coincide with my Dividend Updates so that I will keep accountable).
Increase Networth to $400,000/$385,000
I hope to increase my networth by $35,000 to $400,000 (if I include my defined benefit pension contributions) or $385,000 without including my pension. This is quite a tall order but with discipline I think this is achievable. It would also help if the markets do well too and energy regains its losses haha.
You can follow along to see how I am doing with my monthly net worth updates.
Last year my net worth did not increase as much as I had hoped, however I did spend a lot of money traveling… which brings me to my next personal finance goal:
Spend Less on Shopping and Traveling
I spent a TON of money last year on traveling, I hope to reduce that in 2015 to a reasonable budget of $5000 for the year for travel, which will include road trips, international travel, etc. So far, I have a trip to Hawaii planned.
As for shopping, I went a little crazy in the United States on a shopping trip to Seattle (I blame Nordstrom Rack and my low self-control when it comes to shopping) and spent more than I would have liked on clothes (especially when I am trying to reach my net worth target for 2014, of all things!). A goal of mine would be to only spend $1500 to $2000 on clothes/ shoes/ accessories etc. next year and to accomplish this, I am going to go on a shopping ban every other month starting in January, shopping ok in February, no shopping in March etc. (or earn extra money to account for the extra spending past the budget).
Read 4 Financial Books in 2015
Finally, I hope to read four financial books in 2015 (maybe one for every quarter, haha!). Do you guys have any suggestions? I could crack open Intelligent Investor again, but that was a difficult read for me.
As per usual, look out for a post in June or July of 2015 for a mid-year review on how I am doing with my personal finance goals.
Readers, what are your 2015 personal finance goals?