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Financial goals

I have been coveting a Banana Republic bag for quite some time. This one;

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I even made it a part of my goals for 2015 in my 30 goals for 2015 post, look:
2Every so often I get a new purse because an old one has worn out, or the functions that I need it for change. The current purse I use for a bit dressier occasions when I still need to carry a few things around is starting to show signs of wear, so I’ve been looking to replace it.

There are a few purses I have considered, between MK, Kate Spade and BR. In hindsight this was complete idiocy…. I have a line of credit/mortgage to pay off, I have retirement to save for, I need a newer car in a couple of years. A new pricy as hell purse? Even after a discount any of them run me over $200. Who am I kidding?

In 2012 I used up 75% of the emergency fund I had saved at that time to cover living expenses as my income plummeted in early 2013, it started increasing again when I picked up seasonal employment last year. Ive only been contributing a measly $25 a month October 2013 and onward.

I bought a nice Ck bag in August of 2013 and while I haven’t regretted buying it at all, until now, the mid $200’s price tag set me back about a months worth of groceries and in reality…. even though I saved for it; could I really afford it? No. The purse cost me about 1% of my income that year. 

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Was it worth it? No. I like fashion, I do enjoy looking nice, dressing nice. Banana Republic, Ck, Kate Spade, Ralph Lauren… I am a sucker for the preppy new England look. I don’t quite dress like it, but I do own a khaki coloured trench coat, and I wear my jeans with a leather belt, and flats, and yes I like fancy purses and preppy dressshirts and a-line skirts. I find it appealing. But am I really wearing these items for me, or am I also wearing these items to present an image to the world? Most likely the latter.

While I liked that purse, it’s highly unlikely anyone other than my friends and family really noticed me using it. I didn’t end up liking the quality and the handle has had to be sewn on once already. Don’t get me wrong, there isn’t anything wrong with finetuning your image for yourself and the world. After all, it’s important for your work and social life, but was this expense warranted for me personally? Did I need more stuff in my closet while I am looking to have less stuff? Was it really worth it? Not at all. I don’t want to be poor, this is not the way to not be poor.

My 2015 income should end up being about $30,000 after tax (which reminds me that I’m currently four days late filing my tax return, crap). I projected my income at $27,500 in January so I’ve been able to increase that which is awesome! 🙂 My income is earned in a variety of ways, I’ve had more than one job on the go since I graduated college;

– My normal part-time cleaning gig which consists of two different contracts (I am the main contractor)
– My seasonal luxury cottage scrubbing (self-employed)
– Commission based property rentals
– becoming an accidental landlord on my own house
– occasional random side jobs

The $2,500 increase is not much but it’s something. $30,000 is not terribly low. I can and do, do a lot with my $30,000. 

But I have $4,725.64 saved for retirement right now. Under five thousand dollars. That is just… I mean that will get me what, a quarter of a year of living in the future? Maybe after compounding the interest I’ll get a year worth of living out of it in a good 30 years orso. Maybe more, maybe less, I have no idea because it’s not worth it to do the math because the point is: that is ridiculous. 

I have house debt to pay off asap and if I ever want to retire, a retirement to save for. I don’t want to be poor.

I had no business buying a $240 purse in 2013, and I still don’t in 2015.

What ridiculous purchases have you made that were really kind of stupid??

My bank accounts aren’t looking so good. But that’s no reason not to check in, in fact, checking in will help me face reality. I’m not upset about this month. There were some very emotional highs and lows and January is gone. I can only move forward from here. Now, let’s see how 2014 is going… versus the plans I made for it. 

Health

source below

source below

1. Continue to track my sleeping patterns. Success. I’m sleeping more hours per night, about an average of 8. My actual sleeping schedule is still wacky and I still wake up a lot. I tracked every day (with my fitbit)

2. Increase my step average to average out to 9,000 steps per day over the course of the year. Fail. Yikes. 6,362 was my average. :/ 11 months to go to get that up to 9k

3. Lose 5 lbs and keep them off by December 13th. No yoyo-ing. Fail. Haven’t stepped on the scale. My shorts don’t barely fit. I should face reality here… I don’t want to.

 

Project Move 

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1. Save a $10k emergency fund. Fail. This one requires a bit of a longer explanation: I siphoned a further $3k-ish into my company for taxbills. My emergency fund isn’t looking very ready for any emergencies.  This will be the last time I do that as we’ve decided that we will not repeat what happened just over a year ago, where we lost a load of money. We’re working on paying the resulting taxbill, once that’s paid we will only maintain the current contracts as long as it makes sense to do so timewise and financially and to keep jobs for people we care about. Some businesses work through losses… and sometimes that makes sense. We’ve done it before.

In our case, I am ready for a new chapter in my life and right now the only reason I am keeping the company running is to pay off that taxbill with current receivables and to keep jobs for people I care about. I have some great staff so as long as the current contracts run well, I want them to keep their jobs. If things go south, we will put the kebosh on things within a month or two and move on. In addition, I am looking for other employment already as I need a new challenge, I’ve graduated, time for new things!. 🙂 Once I find other employment/income streams my sister will take over and do as I’ve done for the past five years; run the company and work her way through school that way. (providing the kebosh thing isn’t needed, of course) I do also still want to carry out Project Move, as this section of my goals is aptly titled, and work/live in another country for 3-4 months in the future. (If I do find a job I suppose that means I’d have to take a sabbatical/hiatus of some sort as I’m not currently intending to move anywhere outside of Canada permanently) In the meantime… let’s keep on trucking.

2. Finish and sell my house by the end of the year. In progressI have a place to live once I sell, my mother who is a realtor with ReMax will be listing my house in the spring. I decided over Christmas that I was really ready to sell and while I struggled with the ‘oh no… I do kind of like my little house’… I’ve come to terms with it. Time for the next chapter!

3. Finish digitizing all my files that are able to be digitized. In progress. From 2008-2011 most of my business time was spent actually running a business, not so much sorting files and sitting behind a desk. While my files weren’t a huge mess or anything, I’ve been scanning in any non-taxrelated stuff so I still have a digital copy of it but less paperclutter lying around, the same goes for my personal stuff. Everything possible digital, accessible from anywhere… uncluding sitting in bed. Plus the minimalism thing, I’m trying to pare down gradually and live more clutter-free.

Other financial goals

Oh beach, how I long for you

Oh beach, how I long for you

1. RSP balance of $3,000. In progess. Right on track at $2,400 I think a little ahead even by 5 bucks, every nickel counts 😉

2. Cuba/hot vacation/spring vacation, $1,200. Done! While it may be argued that this wasn’t the smartest move financially. I’m not taking any time off until then, while I no longer work a ridiculous amount of hours I do have responsibilities that generally run 7 days a week. I’m really looking forward to this! I got together with one of my gf’s about two weeks ago and booked it. We’re heading to Cayo Coco at the end of March. Booyah! The price per person was $1075.00, a $50 rebate knocked it down to $1,050 pp, I used $43.50 in points and I have a $162.00 rebate coming through Great Canadian Rebates. Out of pocket $844.50 for 7 nights, 6 days from the airport that’s 10 minutes from my house, straight to Cuba. I’m very much looking forward to this! I am still counting on $1,200 as I need to bring some spending cash and $350 should be just about enough.

3. Short camping trip funded out of pocket in July. Longer world-trip in August/September. In progress. Plotting and planning.

4. A networth of $70,000. In progress. My networth dropped for the 5th consecutive month since September. Then I spent money on not one, but TWO trips. Mmm not so good. I’ve sharpened up my budget, am sticking to a strict grocery shopping budget and no-shoes/clothing/underwear budget which has been going well.  I’ve decided to cancel my healthinsurance. (price keeps going up, im young, healthy, I have provincial healthcare and I intend to switch out Blue Cross for  critical illness type insurance, which is mucho cheaper…) I have a lot of change ahead and hopefully the sale of my house soon.

It’s all a work in progress, I’m winging it and eventually I’ll get where I’m headed. All in all I listed 3 out of ten goals as fails, that’s not so bad!  🙂 

November marks a bunch of deadlines for me. Today I’m reviewing my goals for the month of October and will be setting new goals for the month of November.  I posted my third quarter stats for the year this week, set some weekly goals for the past week, and November also marks my first FULL year of tracking (almost) every single penny in and out. I will be putting together a big article about that later this week so stay tuned for that!

My goals last week were:

1. No spending on clothes. Success!
2. No house spending. Success!
3. No more spending on groceries. Success!

Sometimes just writing up a piece to post on NbN helps keep me on track, so thank you all! Now for the good stuff:

October goals recap:

1. Make a $100 mortgage prepaymentDone, done and done! Total for the year $1,010. If it weren’t for the prepayments my mortgage balance would be dropping at an alarmingly slow rate so I like doing this though I am thinking of making a change.
2. $20 clothing budgetI spent zilch! Still sitting on that giftcard.
3. $150 blow money – FAIL. spent about $250 including a $50 liquor store trip. Hmm.
4. $500 on my student loan and if possible I’d like to get that puppy below $5,000 once and for all this month – Success! You can read about that here. 

November goals
:
1. Student loan below $4,000
2. Grocery budget of $180.00
I only have two goals, I’m contemplating skipping the mortgage prepayment in favour of focusing solely on my studentloan in the next 3-4 months until it is fully paid off. I just started toying with this idea today so I’m not sure yet. It’s been so encouraging to see the effect of the prepayment on my mortgage balance, where my regular payments barely make a dent due to a 30 year amortization period but I’m also very ready to cut loose that darn rock of a student loan. Hmmm. Thoughts?
Good luck this month everyone! Holidays are around the corner, eek!