As 2005 draws to a close, it is that time of the year to make resolutions (and hopefully keep them). Here are my financial resolutions for the New Year:

  1. Fully fund our RRSP accounts. I have to admit that money has been a bit tight this year (spouse on maternity leave) and we have only contributed 78% of our eligibility for 2005.
  2. Pay down consumer debt. Unfortunately, we had to use our secured line of credit to purchase a family van. Now, I would like to pay it off as soon as possible.
  3. Reduce mortgage debt. Since, money will also be tight in 2006, I don’t see how we will be able to make a lump sum pre-payment on our mortgage. We will continue to pay about $200 more towards our mortgage every month.
  4. Continue to invest wisely. In 2005, my portfolio returned 13.5%. I initiated a small position in a bond index fund and increased my exposure to international markets (by buying EFA). I’ll be looking to initiate exposure to REITs and emerging markets.
  5. Reduce expenses. Despite our decreased cash flow, we plan to spend far less than we earn.
  6. Start and fund an education savings plan (RESP) for our kids.
  7. Increase our net worth by 15%.