Goals are important in life, they give you something to strive towards (with the alternative being aimless and directionless). They provide a measure for yourself, and others, to hold you accountable to.
Perhaps more important than the arbitrary goal though, to help you motivate (and more importantly, discipline) yourself is the “why”. Why is this a goal? Why are you striving towards this?
I invest:
- for future financial independence
- because the power of compounding will help me achieve my goals faster
- because the cash flow will open up many more options to me
My goals for 2021:
- Max out my contributions to my TFSA (done)
- Contribute at least $2400 to my RRSP
- Continue to pay off my debt
Prioritizing and maxing out my tax-advantaged accounts (TFSA and RRSP) will provide far greater returns in the long run as compared utilizing my taxable accounts.
Paying off my debt will allow for far greater financial options and flexibility. Specifically, hitting my goal of paying down roughly $10,000 of debt will give me the option of substantially increasing my cash flow for investments moving forward.
Whereas 2020 was a great capital growth year, I view 2021 as an opportunity to consolidate my gains and continue working on building a solid financial foundation.
Due to uncertainty and the uniqueness of the current situation, I also aim to flexible this year, and will try to capitalize on any opportunities I find which fit my requirements.
