Monday, December 22, 2008

2009 - The Year of Savings

2009 will be a fresh start for me literally as I am now 100% debt free. I have already been thinking about what goals I want to conquer for the new year.

Last year I had two big goals for the year.

1 - Become Debt Free - Check! I pulled this one off just in time.

2 - Start My Retirement Savings - Sadly, No.

For 2009 I need to really think about my goals because there are so many things I need to take into consideration.

Exhibit A - Bf and I have a plan to leave the country for one year. I am hoping to have a minimum of $5000 saved before the trip. We are backpacking Australia will be working along the way. Items I need to purchase include : proper clothing, sleeping bag, gear (headlamp and such), plane ticket, etc. Those items will need to purchased above and beyond the savings. Eek!

Exhibit B - Retirement Savings. I don't know what my issue is with getting this started. I have been well aware since I was 14 years old the benefits of starting early and here I am 12 years later and still nothing. I need to get educated on this and get my arse moving. I have a lot of catching up to do in this department. This year my goal is just to get started. I'm not going to give the big push on this for 2009 because I have a lot of other financial commitments.

Exhibit C- EFund Beefaroni - I am thinking that my goal for this will be $2500.

Exhibit D - Secure Credit Card - I really want to start rebuilding my credit. A secured credit card is what I'm looking at to get me started. It will also allow me to open a shop on Etsy and can be used for an emergency when traveling. I am estimating between $500-1000 for this.

In the next few years I will also need to consider other goals such as: wedding fund, home fund, baby fund and educational/entrepreneurial fund. I don't want to overwhelm myself with financial commitments and I'm already feeling that this will be quite the heavy load. I need to think these over and make sure they are all S.M.A.R.T goals.


Frugal Dreamer said...

Good luck this next year!!! You can totally do it ;)

And I liked the EF beefaroni! lol

Shevy said...

If you're only concerned with starting your retirement savings and not saving a lot or maximizing returns or managing your portfolio why not just open an RRSP like I have with TD?

I transfer $10 per week into it (this is my required repayment of money I withdrew several years ago for use as a downpayment) and it's really painless. I found I didn't notice $10 per week, although $40 all at once would have probably been difficult (silly, but true).

The money accumulates in a fund until I have enough to buy a GIC but there are probably other options (like buying an index fund or whatever). You could also do this through ING I believe.

It's not a lot of money but it really helps you to form the habit. And then you can ramp up the retirement savings after you come back from Australia.

Dolly Iris said...

Shevy - That is sort of the plan. I am waiting until after the holidays to sit down with my bank. I'm considering the home buyer rrsp. I would love to max out my retirement savings right now but it will have to wait until after the trip like you said. :)

Arual said...

I was going to suggest what Shevy said too. Every opaycheque $25 automatically gets transfeerred to my RRSP and then when I reach $500 I make it a GIC.
I need to sit down wiht my bank too and discuss the homebuyers plan.

I am so excited for you that your money is all yours now to do with what you want! And Australia is so close.

skupers! (verification words make me laugh ☺)

debtfretter said...

hey dolly,
i know exactly what you mean about the `saving for everything' scenario. I want to save a downpayment and/or beef my efund but feel i can't put off buying a house much longer either. How do people afford everything we are supposed to have in this society??
Sounds like you're getting there though!