Comments on: 8 Financial Resolution Ideas for 2010

By: cannon_fodder

cannon_fodder — Mon, 04 Jan 2010 01:59:42 +0000

By using my CC for almost everything I buy (coupled with the distinct advantage of working from home or on the road almost exclusively) I don’t get surprised as to where my money goes. Thus, I don’t need to track expenses.

Because I am in the highest tax bracket, I only max out TFSA contribution if everything else is maxed (e.g. RRSP). That being said, I likely will find a way even if it is to take some of my dividend income from my SM portfolio to fund it.

I have begun tracking my net worth on a monthly basis. I used to do it twice per year.

Will and Power of Attorney were done years ago and nothing has changed that would require a rewrite.

Employee matching has been maxed out for every employer that I worked.

I never carry a credit card balance UNLESS it is one of those 0% offers. (I’m hoping to make it 3 years in a row getting a 0% credit card for balance transfers.)

I don’t have an emergency fund per se. I believe to tap into LOC’s if I run into an emergency. It costs nothing in lost opportunity or fees if I don’t use it. But, as I build up a balance in a TFSA, this could soon represent an implicit Emergency Fund.

Saving up for something fun almost always means vacations.

My financial priorities are:

1. Max out RRSP contributions for my wife and I (including contributions to spousal RRSPs)
2. Max out TFSA
3. Pay down mortgage

I’m not sure if we will eliminate our mortgage this year or not. It depends whether this makes sense or not (i.e. why divert money to pay down nondeductible debt at 1.5% if you can put it in a TFSA and earn more?).

By: andrewbpaterson

andrewbpaterson — Sat, 02 Jan 2010 15:17:38 +0000

Great list, Kathryn.

- I’m already doing a few of the items on the list (# 1, 4, 5);
- Regarding #2, I don’t really want to max out TFSA until RRSPs are exhausted;
- Regarding #3, I just read Rich Dad Poor Dad, so I’m all excited about buying assets that produce income, and tracking those assets as opposed to things like my car and consumer electronics which are “assets” that just suck my income away. I hope it’s not just a phase! Finally,
- I’ve printed out the remaining items (#6, 7, 8) and am pumped to get ‘er done!

HAPPY 2010!!

By: used tires

used tires — Sat, 02 Jan 2010 03:36:06 +0000

Fantastic idea with this post, for me personally I think one of the best things most people can do is get themselves more educated financially, I know that is one of the thing that lacks alot in a society, which leads to so many mistakes that could be prevented if everyone had that power called knowledge. :)

Till then,

Jean

By: Link Wheels

Link Wheels — Fri, 01 Jan 2010 03:17:17 +0000

Fantastic info Kathryn,

I should organize a will, I have not done so yet.

Regards, David Pagotto

By: PD

PD — Thu, 31 Dec 2009 04:53:00 +0000

My resolutions are:
1) Track my expenses and be a better steward of my money
2) Decide between RRSP and TFSA or both
3) Renegotiate my mortgage and make some double up payments
4) Buy a new car in October

By: Kathryn

Kathryn — Wed, 30 Dec 2009 23:13:03 +0000

foolishman: It’s great that you can admit you’re overwhelmed and aren’t sure where to start. The important thing is that you have a goal, you know where you want to go and you have a great income and no debt. What you need is the ‘how’ to get there. You will want to make an appointment with a fee for service financial advisor for advice. They don’t make money off your investments, only on the time they give you. You may also want to begin reading some beginner investment books.

I might also post your situation to the forums and see what others say. The only problem with that is that you will get a lot of conflicting advice based on people’s risk tolerance levels. Seeing as you have over $82,000 your checking account, my guess is your risk tolerance is fairly low. Yet if you want to retire early, you will have to take some risk.

By: norm4475

norm4475 — Wed, 30 Dec 2009 17:46:07 +0000

Good list. I pretty much do all these things except for the will.

Something I would suggest in addition to tracking net worth is setting a goal for net worth at the end of the year. Include milestones for each month or quarter to keep yourself on track. I will do it monthly so that I can adjust my targets.

By: foolishman

foolishman — Wed, 30 Dec 2009 06:21:49 +0000

Thanks this very helpful. My goal for the year is to invest!

I have money but investing is very difficult for me, as there are so many options and choices to make that it boggles my mind. What kind of general investment strategy could be recommended for someone like me:

I’m nearly 30, single, no commitments and my only goal is to make as much money as possible so that I have a realistic option of retiring at 40-45 years of age with an average income of 40-50k (today’s dollars) until I die.

My portfolio:

income (bt): $80k + OT (ranges from 15k to 70k, last few years)

assets:

chequing account: $82500
“Loan” held in Father’s LOC*: $75000
RRSP – TD Balanced Index Fund: $40000
Company Pension: ~$30000

total:

*(he pays me interest instead of to the bank, and I can withdraw the money at any time)

debt:

none

I have no idea where to begin, other than to open a TFSA, but invest in what?

By: Doctor Stock

Doctor Stock — Wed, 30 Dec 2009 06:01:34 +0000

To be honest, I wish everyone just did #1 – track the pennies every day. You’d be amazed at how much cash is spent on different things when you actually know. Good post!

By: janine davis

janine davis — Wed, 30 Dec 2009 03:59:17 +0000

Thank you so much. This helped a lot.

By: cash back credit cards

cash back credit cards — Wed, 30 Dec 2009 01:31:24 +0000

The problem I have been hearing is that more and more employer are taking away the match due to money issues. Also, is a TFSA like the american Roth IRA do you know?

By: Dave

Dave — Tue, 29 Dec 2009 20:29:49 +0000

Amen to your comments about writing a will. I’m a lawyer. I don’t practice estate law, but I know enough to be aware of the pitfalls. There is no way I would muck about doing my own will, which is why I had a lawyer whose practice is wills and estates do mine.

By: Keith Morris

Keith Morris — Tue, 29 Dec 2009 19:36:07 +0000

Here’s a good one: automate your finances!

By: Financial Cents

Financial Cents — Tue, 29 Dec 2009 18:50:03 +0000

Good post and nice ideas for 2010!

Here are mine, in no particular order:
1) save at least $5,000 for lump-sum payment on mortgage
2) contribute at least $5,000 to ENB DRIP
3) max-out TFSA
4) save (and take) a well-deserved vacation!

Cheers!

By: Kate

Kate — Tue, 29 Dec 2009 17:19:59 +0000

My two goals are to save at least 5k and pay off the one remaining credit card.

By: Craig

Craig — Tue, 29 Dec 2009 17:11:10 +0000

Tracking spending is something I have focused more on this past year. I am not very specific with it, but like to know the basis to where my money is being spent and where I can adjust.

By: No Debt Guy

No Debt Guy — Tue, 29 Dec 2009 15:38:02 +0000

My main goal is to trim some fat from my spending. Figure out what I can do without this year.

First up is my expensive web hosting. Just working on transfering everry thing now. PITA!

By: mp

mp — Tue, 29 Dec 2009 15:23:08 +0000

Mine is to have an emergency fund equivalent to 12 months of living expenses saved by Dec 31 2010.

By: saveING.ca This is why I signed up with ING Direct

saveING.ca This is why I signed up with ING Direct — Tue, 29 Dec 2009 13:17:40 +0000

ah man I have to get on top of this, here’s some tips to make it stick for those like me who need this;

from 6changes.com

1. Pick 6 habits for 2010.
2. Pick 1 of the 6 habits to start with.
3. Commit as publicly as possible to creating this new habit in 2 months.
4. Break the habit into 8 baby steps, starting with a ridiculously easy step. Example: if you want to floss, the first step is just to get out a piece of floss at the same time each night.
5. Choose a trigger for your habit – something already in your routine that will immediately precede the habit. Examples: eating breakfast, brushing your teeth, showering, waking up, arriving at the office, leaving the office, getting home in the evening.
6. Do the 1st, really easy baby step for one week, right after the trigger. Post your progress publicly. (Read more.)
7. Each week, move on to a slightly harder step. You’ll want to progress faster, but don’t. You’re building a new habit. Repeat this until you’ve done 8 weeks.

You now have a new habit! Commit to Habit No. 2 and repeat the process.