2014 Goals Review & 2015 Goals
Happy new year everyone! I wish you the best for you and your families in the year 2015.
Here is a little update on what I have been up to recently. The reason why there haven’t been any updates for quite a while on my blog is because I had been clocking in some forced overtime at work.
Although the holiday pay is nice, I feel that the additional income was not worth it. I had worked 10 days straight and that has put me into a state of pure exhaustion. In any case, the past is the past and it is time to look forward to the brand new upcoming year.
Before I start going into my personal finance goals in 2015, I would like to do a review of the ones I had in 2014. Let’s get started:
My Finance Goals for 2014
Here were the goals that I have set for myself mid-way through 2014:
1. Total Asset Worth – $40,000 (Failed)
The initial goal was to achieve a total asset worth of $40,000 for the year 2014. However, it appears that this goal was not met and that I have to play a little catch up in 2015.
As it stands right now, my total asset is sitting at $29,063. Let’s round that to $30,000! At the start of 2014, my total asset was worth $11,487. My asset worth had grown 153%.
2. Maximize my TFSA – $31,000 (Failed)
Unfortunately, I was not able to save enough to maximize my Tax Free Savings Account this year.
The goal was to have $31,000 contributed to my TFSA by the end of the year but I was only able to have $25,000 contributed. With the increase contribution of $5,500 for 2015, I can still contribute up to $11,500.
3. Portfolio Dividend Growth – $50/month (Re-considered)
My goal of a portfolio dividend growth of $50 a month has been reconsidered. I have decided to null this target because I will now be focusing on capital gain growth instead of dividend growth.
The reason for this change is because I have realized that my portfolio does not have the capital required to create a decent dividend growth strategy. I am also working towards financial freedom by the year 2020 and a dividend portfolio will not yield the results I am looking for.
4. Open an RRSP Account (Accomplished)
Finally, some good news! I have completed this goal in December 2014 and have configured my RRSP account into the e-series with TD Bank.
I will also be looking into some direct investing for my RRSP when I have more funds at my disposal.
5. Read 3 books on Personal Finance (Accomplished)
Although 3 books on personal finance isn’t exactly a lot, I have completed this goal. I will make sure to increase this number for the year 2015.These were the books that I have read:
- The Lazy Investor by Derek Foster
- The Millionaire Master Plan by Roger James Hamilton
- Rich Dad’s Before You Quit Your Job by Robert Kiyosaki
- Rule #1 by Phil Town
My Financial Goals for 2015
I have big plans for 2015. Here is a list of my current goals for the new year:
- Total Asset Worth – $85,000
- Contribute 2015 TFSA Limit
- Maximize RRSP Account
- Portfolio Capital Gain Growth – $10,000
- Pay off Student Loans
- Invest in a Property – $25,000 (down-payment)
- Create a Comprehensive Business Plan
- Read 12 Books on Personal Finance (1 per month)
For a more up to date and real time tracking of my goals, you can do so at my Goal page.
That is it for now! What are your financial goals for 2015? I would love to hear from you below.
Jeff,
Very aggressive goals, I like it! Too bad you didn’t meet a bunch of your 2014 goals, but that’s a good reason to try even harder this year.
I’m sad to hear you say that the dividend growth investing strategy won’t work for you. Looking at your numbers and your target date I’d say it will be hard, but it should be manageable. Anyway, you have to do what feels right or else you won’t be able to keep going.
Best of luck to you in 2015! Looking forward to your progress.
Cheers,
NMW
Thank you NMW! I like to be aggressive in my goals because it helps me keep moving forward and aim higher.
I think i’ll start reinvesting in dividends when my portfolio hits about $100,000. In the mean time, I have decided to take some risks in some stock investing. I hope that pays off. : )
Happy new year buddy!
I like how aggressive you are approaching your finances. No other way to do it! congrats on achieving some of your goals and best wishes for 2015.
R2R
Thank you R2R! I like your goals too but I am pretty sure you’ll be able to make more than $5,500 in passive income this year at the rate you’re going!
Happy new year!
Looks like it will be an exciting year. I see Active Income and Portfolio Income goals. Do you have any Passive Income goals?
Keep us posted with this comprehensive business plan. Good Skill!
Definitely will! Ahhh… I did forget about my passive income goals but at the current moment I see no way of incorporating that onto my list. Will update it soon though!
Have you thought about adding a zero onto your reading list goals? So 120 books for the year? 😀
That is way too much for me Henry! I’m more of an audiobook type of person. I am one of those people who rarely finishes a book. 🙂
I still would consider a dividend growth strategy for the long term. Even though 2020 is only five years away a DGI strategy can still provide you a long term increasing income stream after you are FI and what’s wrong with that? Every dividend portfolio starts out small. The beauty is that with dividend increases and fresh capital continually invested the compounding effect will really start to roll after several years. Just my 2 cents.
An excellent point, I will look into how I can utilize a dividend growth strategy!
Rather than buttonhole yourself into a “type” of investment strategy, why don’t you just decide on an amount to invest, and then invest that amount in the “best” investments available at the time you have the money? This will allow you to diversify and not limit you. For example, if you are only looking at capital gain growth, company A might be expected to have growth of 10 %. Company B might be expected to have 6 % capital gain growth and 5% dividend, so 11% growth overall – a better investment. It also allows you to balance your investments better between larger/smaller cap, different sectors, etc. JMHO, but why limit yourself if you don’t need to – keep your options open and invest in the best opportunities overall. Take care.
Thank you for your words of wisdom Chris! It is a really good idea to do a hybrid of capital gain growth and dividend growth. I’ll look into it further by doing some further research.
I like the aggressive set of goals. It’ll force you to push yourself from Day 1, which is a great thing! I like how you diversify your income sources, something I hope to achieve one day soon. Best of luck achieving your goal in 2015.
Bert, one of the Dividend Diplomats
Indeed my goals seem to be aggressive but I try to keep it real as well. I definitely look forward to seeing how these goals play out!
Jeff,
I actually think dividend growth investing is MORE applicable/beneficial for younger investors. The time it takes for dividend growth and compounding to work its magic means younger investors have that resource in spades to get the snowball rolling. And since the research has shown that dividend payers/growers outperform the broader market and stocks that don’t pay dividends over long periods of time, I honestly don’t see the reason why someone would want to invest one way and then switch it midstream. But you have to do what you feel is best for you and your journey! 🙂
BTW, why a million by 2020? Is there a special correlation to that and your expenses/income needs? I’m guessing you plan on a 4% SWR and you’re forecasting expenses to be $40k/yr?
Best of luck!!
Cheers.
Hi Jason!
Thanks for the insights. I think I am going to focus on dividend growth now. : )
Million by 2020 is just a goal I have set for myself because that is when I turn 30. However that is a really ambitious goal. If I can just escape the rat race and quit my day job by then, I would be happy. I can live off 40k a year. Maybe 4% is a little conservative, I think I can try to strive for 8%.