“Adina’s Financial Resolutions Update (Q1)” is a post by Adina J in which she tallies her score on her 2013 resolutions. |
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Don’t panic: the first quarter of 2013 is not yet over. But since I have an important update on one of my 2013 financial resolutions, I figured I might as well do a quick review of them all. If you prefer, let’s all pretend it’s the end of March already; I, for one, wouldn’t mind.
Financial Resolution #1: Negotiate a Raise
Consider this one checked off the list! From beginning to end, it was a months’ long process, but in practical terms it consisted of about 3 short meetings. As with all things, the best laid plans always find a way to go awry. I am very happy with the end result, but I didn’t get there the way I had thought I would. Basically, to keep things simple and semi-confidential, there are two main criteria on which a raise in my compensation can be based. Going into this year’s negotiations, I thought that my best bet would be Criteria A; it turned out that my employer went with Criteria B. The result is the same (a raise for me, yay!), so I am not complaining. I guess that, had I been able to better pitch Criteria A, it’s possible that my raise could have been higher (based on both criteria simultaneously), but that’s an “if” for another year.
My raise for 2013 is a smidgen over 14% and, before you ask, it’s already been dedicated to our savings. OK, maybe not all of it; I am planning to take a small portion of my January retro-pay and splurge on a massage and a facial. YOLO, right?
Financial Resolution #2: Open Spousal RRSP
As previously detailed on the blog, I abandoned this goal very early on. Instead, we decided to re-balance the amounts directed to each of our respective RRSPs. Going forward, rather than splitting our monthly contribution ($2,000) 50 / 50, I will be putting in $1,500 and my husband will be putting in $500. This will achieve similarly tax-efficient ends.
We haven’t gotten around to boosting my husband’s TFSA just yet, but it’s next on our financial agenda once our taxes are filed.
Financial Resolution #3: Increase Net Worth
As I previously wrote, December and January were “expensive” months for our household, which had an impact on our cash-flow up to and including February. So, over the first 2 months of 2013, our net worth increased by only about $4,800 (not including home equity). I plan to increase this number much more substantially in Q2, based on my salary increase and the anticipation that we’ll be free from large expenses for at least a few months.
Financial Resolution #4: Cancelling My High-Fee VISA
Done!
Financial Resolution #5: Shop for Clothes Secondhand
Here, I have to report mixed success. I did buy some non-second-hand items in January. BUT! They were each under $40 per item, so I was still kinda sorta within my guidelines. In total, I spent $140 on seven items of clothing that month, and zero dollars in February. Yes, you read that right! That hasn’t happened in… I can’t remember how long. I did splurge on some pricey jewelry while on holiday in Vancouver, but since that money came out of discretionary income I’d previously saved (precisely for such splurging purposes), I’m not counting it – no matter what Joe says!
All in all, it’s been a pretty decent first quarter of 2013, and the forecast for the rest of the year looks promising.
14% raise? Congrats, Adina!! Is that a normal raise or a high one? I still don’t know what my raise for this year will look like since we’re not on a January calendar. Are you sure that your extended medical benefits don’t cover massages?
I’m curious. When you leave your employer, what happens to your group RRSP? Can you transfer it to your personal RRSP or is it stuck there forever?
Thanks Leigh! It really depends on the individual situation. It’s not out of whack with certain past years, but then again, raises in my profession tend to level out a bit after the first few years (I’m not 8 years in). Considering I didn’t get a raise last year, this really averages out to about 7%.
My employer-matched RRSP is a personal one, it’s just required to be with a particular financial institution. I believe that I can transfer money out once a year. From what I’ve discussed with other co-workers, the process is a PITA, and the amounts are small, so no one seems to bother. However, if my employer stopped matching my contributions, I would definitely tranfers the money to my other RRSP.
I think my health benefits cover massages, but only with a doctor’s prescription or some such nonsense. I don’t go for massages very often (like, once every 5 years or something), so I’m not sure it’s worth the hassle of getting a doctor’s note and having to come up with some reason why I need them.