In the beginning of 2013 I set out 6 financial goals to complete by the end of the year. Time to recap.
1) Increase net worth by $50,000. Pass
- North American stock markets had double digit gains in 2013.
- Bumper crop in the prairie provinces pushed farmland values to new highs
- Real estate market in Canada also performed well.
- US dollar strengthened against our Canadian Loonie which was a nice unexpected bonus
My net worth grew by roughly $68K in 2013 This is why it’s important to stay invested, because you never know which asset class will perform well.
2) Make at least $6,000 more income than last year. Pass
Made more than $5,000 extra from my farm rental income Plus I got a $1,000+ raise at work this year so yay!
3) Put $5,000 into my retirement account. Pass
In late November as a desperate attempt to complete this goal I borrowed $6,000 from the bank to put into my RRSP. The RRSP loan is at 4% interest rate. Maybe this is cheating because I didn’t use my own savings But the goal didn’t specify where the money had to come from
4) Put $5,500 into my TFSA. (Roth IRA equivalent) Fail
Didn’t make any new contributions this year. Used all my savings for better opportunities elsewhere and TD wouldn’t give me a TFSA loan.
5) Put at least $18,000 towards other investments Pass
Made a $20K down payment on the $172K purchase of my second farm. Funded the remaining $152K with bank loans.
6) Bring the total value of my non-registered accounts to $100,000. Fail
Although my portfolio is worth over $120,000 it wouldn’t be fair to count it entirely as mine since roughly $50,000 of that is margin debt.
Looks like I passed most of my goals (4 out of 6,) so overall I’d say it was a pretty successful year Below are a couple of stretch goals, which I didn’t expect to reach anyway.
2013 Stretch Goals
1) Pay down at least $1,000 of my debt. Fail
I started the year with $357,000 of debt. I tried to reduce it down to $356,000, but somehow my debt has actually grown to $531,000 today
Oh well. It’s not my fault I’m addicted to cheap credit like a fat kid is addicted to candy When money is cheap it distorts the markets and people dig themselves deeper into debt than they otherwise would. Just like if candy was practically free everywhere then a lot more children would probably develop diabetes and tooth decay that otherwise wouldn’t. Is it fair to blame the kids? If the Fed wants people to stop borrowing so much money then maybe it should stop printing so much of it. But oh wait. It can’t
2) Make $90,000 of pre-tax income. Fail
The new rental income helped but it wasn’t nearly enough.
Random Useless Fact: Vatican City is both a city and an independent state. It is the smallest internationally recognized country in the world with an area of 110 acres, and a population of just 840. Official language – Italian. Currency – Euro (€)