2015 Financial Goals and Outlook

// Published January 4, 2015 by Swati

Goals

Reduce eating out to $3000 year
Last year we reduced this to $3800 – and this year I am hoping to trim it further to $3000 year. It may be a little harder now that are kids actually eat at restaurants, but we are hoping for less outings, and more time at home.

Actually reduce groceries to $18,000 year
I missed this goal by a small amount last year, but am hoping to reach it this year. My brother in law is probably going to move out this year, but we are planning to adopt this year (process finalized!), and are expecting an increase of 1 or 2 kids. I am anticipating costs of formula for a newborn, and diapers etc no matter what. So we’ll see!

Contribute $2500 to kids RESPs (per kid)
I hope to continue this from the previous year, until we max out the Canada Education Savings Grant – which works out to some 14.7 years or so of contributions.

Contribute $22,000 to RRSPs
Not expecting CPP or OAS to actually be around by the time we retire, I am hoping to create self-sufficient retirement accounts. I hope that we are able to continue contributing to our RRSPs despite the fact that neither of our companies offer RRSP matching.

Increase mortgage payments to $1350
This is a new perpetual goal I am adding — I’d like to be able to increase my mortgage payments on an annual basis. I really, really want to be able to pay off the mortgage in 10 years. Way better than 17. We are hoping with our lump-sump contributions and an increase in payments, this dream can be a reality.

Contribute $7,000 to mortgage pre-payment
This would be great and inline with the dream to pay off the mortgage before I am 40 🙂

Outlook

Addition to the family
I am expecting a financially challenging this year, especially if we do end up with an adoptive child. An adoptive child means 7 months of no work (and EI pay only) followed by nanny costs.

An adoptive child also means the baby costs of diaper, wipes, etc. are back. If it’s a girl there are no worries about clothes, but a boy would mean..well, either the baby boy is wearing a lot of pink or we are heading to the thrift store again.

Expected house repairs
House repairs could also be a big cost, especially if we decide to do the deck again. We also have to repair a water-damaged ceiling in our house, so plenty of renovation expenses. I am not expecting any surprising car expenses this year given that they have brand new tires on both and were maintained recently. Lower gas costs should also help the car budget.

Increased vacation costs
Vacation costs should see a dramatic increase as the family cottage that we used to go to will double or triple in costs. Now with a family of 17, we are splitting a rather luxurious cottage. However, I may skimp on camping this year given the extended cottage vacation….but at the same time, I am longing for family time with just the four of us, so that my creep up as a cost somewhere. I am also expecting to fly down to California to visit my nephew, so that will be a cost somewhere. Overall, I am expecting my vacation budget to more than double from $1700 to near $3500.

We may have to dip in some savings this year, but it’s difficult to say until we know whether or not we are getting a child — a lot of decisions hinge on that one!