Although my financial goals for 2015 may seem a little ambitious, I have decided to create an aggressive savings plan that will ensure my success.
As someone who isn’t very good at tracking expenses and budgeting, I adopt the philosophy of “paying yourself first”. This form of saving will keep me honest in my expenses because I will only spend the money I have left over from my investments.
In short, I intend to save 70% of my work income this year. With this percentage, I am able to accomplish all of the goals that I have set for myself. Here’s a deeper look into how:
Goal #1: Maximize my 2015 TFSA Contribution Limit
As it stands right now, I have contributed 75% ($27,500) of my TFSA limit.
In my aggressive savings plan, I will be contributing $3000 a month until my TFSA is maxed. With $9000 left of contribution room, I will have this goal completed by March 31, 2015.
Goal #2: Maximize RRSP Account
Once my TFSA is optimized, I will begin to make contributions toward my RRSP. For the year 2014, I have $8000 in contribution room.
As for 2015, I have still yet to figure out how much I am able to contribute especially now that I have a defined pension plan. However, I estimate that my contribution room will be around $12,000 to $15,000.
Just like my TFSA, I will also be making a $3000 contribution every month. Assuming that my total RRSP limit is $15,000, I should have this goal completed by August 31, 2015.
Goal #3: Invest in a Property
One of the more exciting goals that I have for 2015 is the venture into the real estate market.
The plan right now is to save up $25,000 down payment for my first property. $15,000 of this amount will be taken out of my RRSP through the Home Buyer’s Plan. I will save up for the remaining $7000 after I have maximized my RRSP.
The deadline that I have set for this endeavour is by December 31, 2015.
Goal #4: Pay off Student Loans (Optional)
The only debt that I have is the dreaded student loan that I have been carrying around for quite some time.
Although it would be nice to be debt free this year, I believe that building my assets is much more important than paying off my 5.5% interest loan. This is why I have made this goal an optional one.
With that being said, once my TFSA and RRSP are maxed I will try my best to repay as much of the loan as I can. If I can knock off 50% of the $18,000 that I owe, I will already be satisfied.
Goal #5: Total Asset Worth – $85,000
This goal is going to be quite challenging but I believe it to be quite feasible. Here is how I plan to have my assets worth of $85,000 allocated:
- TFSA – $36,500 + $8,000 (Return)
- RRSP – $15,000 + $2,000 (Return)
- Property 1 Down Payment – $7,000 + $15,000 (RRSP HBP not included in total)
- Other – $16,500 (Savings & other methods)
- Total – $85,000
Although a little vague, the TFSA, RRSP and Down Payment ($7000) should be more than doable. As for the other savings, I have yet to figure out the plan to accomplish that. Perhaps I will be starting up an online business or generate positive cash flow from renting out my property.
That is it for my aggressive savings plan. I hope it works out as expected and I really look forward to seeing how this plays out.
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