Hi everyone and welcome to my 2020 goals post. Today I will share with you five goals that I have created and want to achieve by the end of this year. I find that setting goals helps keep me focus, my mind tends to wonder at times to other things and I end up getting distracted. If you would like to look at how I did with my 2019 goals click here.
Last year I set goals in three categories savings, investing and health, this year I decided to just focus on savings and investing. Health is important to me I just feel like I don’t need to write about it. I gotta get my body looking good for FinCon in September 🙂
Time to get to the goals!
Last year I moved the majority of my savings over to EQ Bank to take advantage of the 2.3% interest rate they were offering. I was only receiving 1.07% at RBC, no brainer right! I have four accounts with EQ Bank at the moment and have them set up for specific roles.
|Jan 1st, 2020||Dec 31st, 2020|
I think this goal or goals for my savings are modest and can be achieved. In the Yearly Bills account I know it doesn’t look like a big increase at the moment however in January I will be using the full $1,703 to pay for my 2020 car insurance. The Car Fund account is either for a future brand new car or used car, I haven’t decided on that yet. Also I haven’t decided on when that purchase will be, my car is still in really good shape and has a few good years left in her. With the Travel Fund I will probably be needing the full $720 that is currently in there for my trip to FinCon in September so I would like to have about $2,500 in the account for the next trip. I don’t know yet if Future Housing is for an apartment or house so I will keep throwing money into this account.
My main focus for 2020 is going to be on investing I would like future me to be in a good position financial. I’m going to have three of the four goals be stretch goals. Not sure if I can do them but I will give it my all to achieve them.
Max Out Tax Free Savings Account (TFSA)
This is probably my biggest goal for this year, I would love to max out the contribution room. My current employer offers a defined pension plan where they match what we pay into it so for tax purposes I am not going to invest much into my RRSP for the time being. If your new to investing or maybe from outside of Canada and would like to learn more about the TFSA Sarah over at Smile and Conquer wrote an awesome post about it called Your 2020 TFSA just click the link and give it a read. On January !st Canadians gained an additional $6,000 in contribution room because of that Canadians now celebrate Jan 1st as Happy TFSA Day lol. With this additional money my contribution room stands at $19,124.38 for 2020.
It’s a huge goal for me considering that last year I contributed less than $7,000 to my TFSA which is a big amount. I think I have a good shot at achieving this because last year I paid off $10k in debt so that would can be used towards investing.
Dividend Income ($9,500)
Last year I received $7,506.03 in dividend income a gain of $1,511.46. So this year with the goal mentioned above I thought I would try and receive $9,500 in 2020. If achieved my income would grow $1,993.97 this year.
Forward Dividend Income ($10,000)
With all of the new investing I’m planning alongside dividend increases, dripped shares I would love to see my forward income reach five figures. At the end of 2019 my forward income stood at $7,727 this is a very big stretch goal. You never know what will happen so fingers crossed.
I think this goal is probably on a lot of Canadians minds as we maybe too focused on the Canadian market which only makes up 4% of the world’s market. For years now I have wanted to diversify more and started last year with my investments in US dividend paying stocks. This year I am looking at buying an ex Canada ETF that I can purchase and give me more US and International exposure. So my goal is to purchase this type of ETF and contribute monthly to it.
My current investment diversification looks like this.
As you can see this needs some work, I need to reduce the Canadian exposure. This year this will be a challenge since I’m investing a lot into my TFSA where I hold Canadian stocks. So the long term goal then is to reduce the Canadian amount to around the 35% range.
That’s a wrap everyone, I hope you like my goals! Do you set goals? Please feel free to comment below.
Thanks for reading!