Welcome to the year 2014! I know that it has already been 2014 for quite some time now but I would still like to wish everyone the best in the new year.
If you’re just joining in right now, let me catch you up to speed. For the last year or so, I have slowly begun taking interest in improving my finances. Especially now that we have entered into a brand new year, I have made the decision to take my finances more seriously and embark on the journey to financial freedom.
Million Endeavour is here to track my progress and to motivate you in taking your finances seriously as well if you haven’t already done so. Whether you are a beginner or a veteran, I am sure that you will pick up something new and useful along the way.
Now that you’re all caught up, let me give you some idea of how I like to operate. I am one of those people who like to carefully plan everything instead of jumping right into it without any sort of direction. This is why I have taken some time to think about what I would like to achieve financially in this year. Here are my 4 financial goals for 2014:
1. Achieve positive net-worth
I have been out of University for about a year now. As a result, I have accumulated quite a hefty sum of student loans and this has left me in negative net-worth. My main priority would be to achieve positive net worth as quickly as possible. This doesn’t necessarily mean that I am going to pay off my student loans quickly. In fact, there is no rush as the interest rate for the loans are quite low. For more details, check out my net worth updates.
2. Maximize my Tax Free Savings Account (TFSA) contribution
Any extra money I have left over at the end of each month will be automatically contributed to my TFSA. Right now, I have $12,000 worth of mutual funds purchased in my account. This means that I can still contribute up to $23,000 in 2014.
3. Invest in a property
At the present moment, I am still living with my parents. I plan on purchasing a 1 bedroom condo at some point during this year. Investing in my own property will also help me grow as a person. The price range for the property should ball park around $150,000 to $200,000. As soon as I have 20% for the down payment, I will begin to hunt for properties.
4. Establishing a reasonable portfolio
Currently, I am looking into establishing a diversified portfolio that involves shares from bonds, equities, index funds and stocks. My goal is to form a strong portfolio with a return rate of 10% (which is already very modest) and to move away from the managed mutual fund portfolio. As I do more research, I will keep you up to date on how I go about approaching this.
These are my 4 tentative financial goals for 2014. I don’t think I am being too ambitious and they all seem to be more than doable. What are yours?
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