My Financial Goals For 2020

2020-goal-1

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!

Savings

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
Yearly Bills $1,703.00 $2,400.00
Car Fund $753.47 $3,000.00
Travel Fund $720.89 $2,500.00
Future Housing $2,454.50 $5,000.00
Total $5,631.86 $12,900.00

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.

Investing

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.

More Diversification

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.

Current Portfolio Diversification

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!

Matthew

 

39 thoughts on “My Financial Goals For 2020

  1. Hey Matthew!

    You got some great goals set up for the year and maxing out the TFSA is a great step in achieving your desired dividend income.

    My entire portfolio is setup of ETFs diversified across Canada, US, Developed and Emerging markets. To make sure I can take advantage of the entire global equity markets.

    My goal for the year based on my dividend forecast is Dividend Income between $6200-$6500 for my 5th Full year of investing.

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  2. nice Matt

    Great goals. 10k in forward income would be a fantastic milestone.I look forward to following your journey this year. I just set my goals for the year but they arent as ambitious as yours. Hopefully I fly past them.

    cheers Matt

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    1. Thanks your probably right. I think if I got my portfolio in the high six figures when I retire then low 30s might be doable. However I will probably end up in the 50 to 60 range.

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  3. Nice set of goals! A little bit ambitious, but with hard work, motivation, and consistency, you can pull it off. Drips and div raises will certainly help. Question: What’s going on with your car insurance? Is that the regular price in Ontario? Because I think it’s way too much. In Quebec, you would pay half the price.

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  4. Hey Matthew, you’ve set up quite a few targets for yourself. It’s a good set of goals.
    I like you detailing your savings goals. It’s great that you can look ahead, see what your financial needs might be, then set up a plan to address it. NIce work.
    That’s a big leap from 2019 to max out your TFSA for 2020. However, with the debt payoff addressed, if you can redirect those payments to the TFSA then you’ll be very close to maxing out those contributions.
    Good to see the dividend income and forward dividend income goals… I have those as well. Best of luck in reaching $10K in forward dividend income this year.

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  5. Have you considered withdrawing the amount of your 2020 dividends in your TFSA and using them to build your RRSP?

    You could do this for two reasons. Withdrawing from your TFSA increases your contribution room in 2021. Adding the TFSA dividend money to your RRSP might help you get a larger tax refund on your 2020 return.

    Liked by 1 person

    1. I haven’t considered that. In fact I’m focusing on maxing our my TFSA this year at the start of the year I had around $19k contribution room. I am doing this because I still make between $40 to 50k per year so I think TFSA is a better strategy for the time being. Once that is maxed I will turn my attention to the RRSP.

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      1. Withdrawing the TFSA dividends in 2020 increases your contribution room in 2021 I believe. That may become important to you when max out your TFSA contribution room.

        I always try and max out my RRSP contribution so that I can minimize my taxes in the current year. I will be a lower income senior so withdrawals from my RRSP in the future won’t be too punishing for me tax wise.

        Any way you can eliminate all of this clicking to subscribe to comments? Ask My Own Advisor how he does it.. I have now received about six emails from you just to confirm comments.

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      2. I have no idea where my future income will be and feel that I don’t make enough to have the RRSP return enough in taxes at the moment. If my strategy works I will begin contributing to my RRSP next year. In regards to subscribing to comments is there an option to unsubscribe at the bottom of the email? This is a first issue I’ve heard of.

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  6. I want to receive the emails for your responses to my comments. I just don’t want to have to click on the email that says (subscribe) confirm to comments. I have to click on that to get replies to my comments. Then I receive another email stating the confirmation of my subscription to the comments.

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      1. Please confirm your subscription for All About The Dividends

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        You recently signed up to follow this blog’s posts. This means once you confirm below, you will receive each new post by email.

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      2. Ok so this is to receive each post when they are published. Did you receive an email for comments? I’m thinking if you click confirm for the email you just showed me that should stop any further ones in regards to receiving posts in your email.

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      3. I am not techy. I can’t find your email on your website or I would forward them to you. I click on the confirm and then a new window opens. at the new website where I am marked as confirmed. Then I get another email stating I am confirmed to get the emails.

        Perhaps one of your techy friends could try it and give you a better explanation.

        I don’t have to do it for each comment on a blog post. I just have to do it once for each blog post. I commented on two posts so I was asked to do this twice.

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      4. I’m not techy as well. My email is in the About section of the blog. Link for that is on the top of the screen but here it is again. allaboutthedividends.wordpress.com It all makes senses when you get an email saying your confirmed as a subscriber to the site. If you can send the email or a screenshot of it to my email maybe I can figure it out.

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  7. I did the process to receive each blog post. I was fine with confirming that subscription. Why does it still want me to confirm I want to receive replies to each blog post comments?

    I am not trying to be difficult. I am a big fan of blogs and I like to comment. That includes suggestions about the way the blogs look and function. I also comment, both positive and negative comments, on many products and services I use. Campbell’s Soup is in my bad books right now. I am not sure if they changed one of their soups or if I got a bad batch. I emailed them with all of the details including the lot and expiry date of the possibly affected product but they have yet to respond.

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    1. I have a couple of followers who reply to my comments so I don’t know if they subscribed to comments or not. I will try to reach out to them to see how they see my comments. Your not being difficult I’m sorry you are having this experience. When you subscribed to comments did you happen to hit subscribe to all the comments in any one post?

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  8. Subscribe to comments on Adding Diversification to the Portfolio on All About The Dividends!

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    You recently signed up to follow one of my posts. This means once you confirm below, you will receive an email when new comments are posted.

    To activate, click confirm below. If you believe this is an error, ignore this message and nothing more will happen.

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      1. I do have hotmail but I think what is happening is because your host is wordpress. I think they do this sort of thing. Again, not techy, not a blogger, no idea but still having an opinion.

        Liked by 1 person

      2. Did you happen to see DGXs comment that I sent you? He is a follower of the blog and any post he leaves a comment on he subscribes to the comments and doesn’t seem to have any issues? I don’t want to say your email address here to make it public but I was wondering if I removed it it might reset and we could try again with subscribing to the site?

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    1. Beth does this help at all? Hey DGX perfect timing I have a question for you. Did you subscribe to see my comments? I currently have someone having an email problem, just wondering how you see and respond to the comments on my site.

      DGX Capital
      Yup I subscribe to comment replies when I post and I get an e-mail notification saying there is a new comment on the post and there an option to reply within the email which leaks to the post directly 😁

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