As I was reviewing my financial goals for 2007 the other day, it dawned on me that it’s half way through 2007! I figure now is a good time to discuss my progress thus far. I have listed my goals and progress below:

Goal #1: Increase passive income to $500/mo

Progress:

Goal #2: Become better at my job

Progress:

  • I didn’t define “better” in my financial goals post. What is the meaning of “better”? Better to me is to improve my skill set and add more value to the company that I work for and I believe that I have been doing this.

Goal #3: Save 20% of annual income: $23,000/yr or $1917/mo

Progress:

  • RRSP: $400/mo
  • Pension: $325/mo
  • Savings: $1213/mo
  • Total: $1938/mo (20.2% of gross annual income)

Goal #4: Increase charitable giving to $1200/year

Progress:

  • Thus far in 2007, we have donated $600, so we are on track for $1200 before the end of the year. $100 of that is from the Links for Charity fundraiser.

Goal #5: 12-15% return in portfolios.

Progress:

  • Non-Reg Account: Started 2007 with $40,700, current organic worth $44,450 (+9.2%)
  • Wife RRSP Account: Started 2007 with $4000, current organic worth $4600 (+15.0%)
  • My RRSP Account: Started 2007 with $33800, current organic worth $39250 (+16.1%)
  • Organic worth is my resulting value before contributions/deposits.

Financially speaking, 2007 seems to be on track to meet my goals stated at the beginning of the year. However, you never know what the rest of the year may bring as the equity markets seem a tad bit over heated. We can only wait and see!

Cheers!

10 Comments

  1. The Financial Blogger on June 14, 2007 at 7:59 am

    Congratulation, you seemed to be pretty on track!
    It is a good things to set realistic goals at the beginning of the year. You have better chance to make it.
    Out of curiosity, I checked your passive income breakdown and I didn’t see any income from your site, did you forget them?

    FB.

  2. FrugalTrader on June 14, 2007 at 8:43 am

    Hey Financial Blogger! No, I don’t include the site income in the passive income section because I don’t consider it passive income. I consider it a low paying, high labour, second job. :) I keep blogging because of my passion for finance and the community it creates, not b/c of the small amount of money it brings in.

  3. FourPillars on June 14, 2007 at 10:14 am

    What are you invested in? Your returns are pretty good – I’m assuming they are year-to-date returns?

    Mike

  4. FrugalTrader on June 14, 2007 at 10:24 am

    Hey Mike!
    My returns fluctuate like crazy because I’m a stock picker. The RRSP’s are 40% indexed, the other portion are dividend stocks and a few small caps. The small caps are where most of my return has come from. Yes, they are year to date returns.

  5. David on June 14, 2007 at 12:41 pm

    It would also appear that some of your goals are easier to reach due to your income. Based on your numbers, you are earning about 150% – 160% of the average Canadian family income. Having two professional incomes, and sensible spending vs. savings goals, should put you well on the way to a secure financial future.

    DAvid

  6. FrugalTrader on June 14, 2007 at 12:50 pm

    Hi David, yes, I agree. But my opinion is that whatever income level that you are currently in, saving 20% of your income will put you ahead.

  7. ThickenMyWallet on June 14, 2007 at 10:54 pm

    Great to see you are on track!

    Any particular reason why your RSP contributions are low relative to your savings? I suspect your pension has something to do with it?

  8. David on June 14, 2007 at 11:04 pm

    FT: Yes saving 20% will put you ahead, David Chilton has shown that 10% makes a huge difference. However, for two families living in the same economy, it should be easier for the family with greater disposable income to save larger percentages. Both pay similar rates for necessities such as heat, light, & staples. The costs of housing should be equal, though the higher income couple may CHOOSE to live in a less modest home. Were you to live on our joint income, you would be saving far more that 20% of your income!

    DAvid

  9. GoalGuru.com on June 15, 2007 at 1:31 am

    Congratulations on making outstanding progress towards your goals! High five to you!

    Live Your Dreams,

    Jill :)

  10. FrugalTrader on June 15, 2007 at 8:52 am

    ThickenMyWallet: Good question! My wife has a pension which limits her rrsp contribution amount. For me, I contribute my maximum. The reason why it’s so low ($400/mo), is b/c my first couple years out of University was a low paying salary. And in 2006, I was unemployed for a few months, so 2007 contributions will also be low. In 2008, RRSP contributions will get more aggressive.

    David: Yes, ideally, as our incomes increase we should stick with the same lifestyle and save more money. We have been pretty good with this the past couple of years with our pay raises, however, going forward, we are purchasing a fairly expensive house. :) We plan on aggressively paying down the mortgage on the new home and living there for a long long time.

    Jill: Thanks for the praise!

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