• ETF Enthusiast

My financial targets for 2019

Updated: Apr 3

My financial targets for 2019

2018 Summary


At the beginning of the year I had set myself a target to try and grow the value of my assets by 20% (This would equate to R200 000 more in the value of my assets), I was tracking well throughout the year but at the end I ended up achieving a growth of 17% on last year (achieving R180 517 more in the value of my assets).

My priority for 2018 was to increase my long-term/retirement investments. Unfortunately because the market performed so poorly, the entire difference in my long-term investment on the previous year was solely from my own additional capital contributions to my investments.

On the positive side, my rental property had a great year. The relationship with my tenant is very good and I did not have a single worry the whole year. After only two years it is in a position where it is now making me money every month. I will do everything I can to ensure that this continues.

For the last two years I have been contributing money into a “car fund”. This fund will eventually be used to buy my next car when the time comes that my current car, which is already in old age goes into “retirement”. My car has really served me well, and if it could last another two years then I will be able to buy my next car without having to touch my emergency fund.


In 2018 my total liabilities decreased by 2%. The only liability I have is the bond on my flat and the only additional contributions that have been made to the bond are the profits made from renting the flat out.

Net Worth

My total net worth grew by 36% in 2018. This is also just short of the 39% goal that I had set myself (although it was a bullish target).

Overall I feel that I have done well in the areas that I can control. I can control how much I spend and therefore how much I save and invest every month, and I have managed to do this while still living a very fulfilling life.

The most important area which I have no control over – market returns, did not go well for me (or anyone else really) in 2018. Although it is quite annoying, it hasn’t caused me to be demotivated as I am literally 4 years into a mission that will span my whole lifetime.

Asset Allocation

My asset allocation did not change much during 2018. There was a small increase in total equity contribution to my portfolio which is positive. My high cash holding is due to my car fund, emergency fund and the cash portion of my RA and pension fund. My exposure to bonds and my high local equity contributions are due to my RA and Pension fund being regulation 28 compliant. I can’t see myself making much ground on this picture in 2019, but my main priority going forward is to add to my International Equity investments, 16% contribution is really not a good picture. Perhaps I can try and get this closer to a 20% contribution in 2019.

Looking forward to 2019

I have decided to be as realistic with myself as possible in my goals for 2019. This will ensure that I use those goals to help to decide in the best possible way where to allocate money to every month. Setting these priorities upfront will help me to avoid any possible disappointment from not being able to grow my assets as I have done over the past two years.

I think that 2019 will be my most challenging year in terms of growth of my assets and net work, my base is getting more and more substantial and I have two large financial commitments planned. The first is that I am planning to start studying a post-graduate diploma in May. The cost of this is R84 000 and although I am getting some assistance from my employer I will need to pay a minimum of R50 000 myself. I am also planning on having an overseas holiday at the end of next year, realistically this will cost at least R30 000. Paying for these is my first priorities, and I have to consider these as personal investments.

I will naturally be contributing to my pension fund every month as this is part of my employment contract. After this I will contribute the maximum allowance to my Tax Free Savings Account.

It’s impossible to determine at this stage how the markets will perform in 2019 but I have to hope that I can grow my existing assets above inflation (7%). After my two big expenses I should realistically be able to contribute further to my various investments over the course of the year. Based on these factors my target asset growth for 2019 is 14%.

On the liabilities side I am not interested in contributing over and above to my bond. This is because in the long-run I feel that I can get better returns elsewhere, my properties contribution to my total assets is too large and I am in a position where I am making a bigger and bigger profit every year without any additional intervention required at this stage.

My liabilities should continue to drop at an ever-accelerating rate as the interest charged on my bond becomes a tiny bit less each month. I will be aiming to decrease my liabilities by 3% in 2019.

Based on both targets for my assets and liabilities for 2019, my target net worth growth for the year is 26%.

Targets for 2019

Increase assets by 14%

Decrease Liabilities by 3%

Grow my net worth by 26%

International Equity contribution of 20% to my total portfolio

Now that I have these targets for the year ahead I have realistic expectations for what I want to achieve for the year. I know I can beat these targets and will consider it a successful year financially if I am able to. Let’s do this 2019 thing!

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