2023 Resolutions

Happy New Year! I don’t know about you, but I love the start of a new year. In addition, I love making resolutions. Admittedly, making resolutions is the easy part. Fulfilling those resolutions throughout the year is the hard part. Just take a look at my 2022 Resolutions – Year In Review post. I had 7 resolutions for 2022, and out of the 7, I failed 4 of them outright. Although I had good reasons for failing, at the end of the day, a failure is a failure. But I am not going to keep that from preventing me from making resolutions for 2023. My whole perspective on life has changed. I am keeping my fingers crossed that 2023 will be a lot better than 2022, so without further adieu, let’s take a look at my 2023 resolutions.

This will be a long post.

2023 Resolutions

The following are my resolutions for 2023:

1. Get Out And Stay Out Of Credit Card Debt
2. Establish A One-Month Emergency & Maintenance Fund For Each Property
3. Continue To Payoff First Rental Property Early
4. Buy Another Beach Condo
5. Increase Contributions To Dividend Portfolio To $1000
6. Travel Overseas To At Least One Country
7. Achieve Financial Independence
8. Start a YouTube channel
9. Go on a cruise
10. Report on my progress along the way

That’s a long list. Let’s dive in.

1. Get Out And Stay Out Of Credit Card Debt

The first resolution I have is a repeat of my 2022 resolution, but with a twist. If you recall, one of my 2022 resolutions was to get out of credit card debt. I failed that resolution miserably. Not only did I get fail at this resolution, but I actually increased my debt. When I made my 2022 resolutions – Year in Review post in December, I reported that my credit card balance at that time was $7758.74. Well, at the time of this writing, my credit card balance is $8403.30!!! AHHHHHHHHH.

Ok, I’ve calmed down.

If you can’t tell, I have a spending money problem. I pretty much use my credit card for everyday expenses. So, even if I pay a large payment towards the balance, I build it back up. And, since my overall balance is increasing, I am spending more money that I am using to payoff the credit card. Also, don’t get me started on the ridiculously high interest rate I am paying. As the saying goes, the struggle is real. But that all ends now!

A new year means new found motivation, and I plan on paying off this balance over the course of the next 3 months!!! Say what? Let me explain how.

1A. Plan To Payoff My Credit Card Balance

The first thing I plan on doing is stop using my credit card for everyday purchases. The points are nice to have, and currently I have a lot of credit card points. But getting out of debt is more important to me right now. So, I will switch over to a cash budget for the time being.

Additionally, I plan on increasing the payment I make to my credit card per month. I anticipate being able to pay approximately $1500 – $2000 per month over the course of the next three months from my regular paycheck. Before, I was paying about $1000 per month on the card. However, I recently got done paying back a personal loan from a private person, and I was paying $1000 towards that loan. So, I plan on adding that funds to my monthly credit card payments.

What’s more is that I am expecting to receive $5600 in February. I lent someone money and I should be getting that money back then. So, assuming I get paid back on time, I will use that money to hep payoff the credit card balance.

If you are paying close attention to my 2023 resolutions, you will notice that one of my goals is to buy a beach condo. The plan is to payoff the credit card before I close on the condo. That way, the monthly payment won’t count against me in the bank’s debt-to-income ratio calculations.

Although the balance is high, I am confident that I will be able to payoff my credit card by the end of March. With any luck, I should be able to do it by the end of February.

1B. Staying Out Of Credit Card Debt

I have a clear plan to get out of credit card debt in short order. The next part of my goal will be to stay out of credit card debt for the rest of the year. That’s going to be far more challenging and will take a behavioral change on my part.

I won’t commit to never using the credit card again. Of course, my problem is that once I start using it, it’s hard to stop. But I just need to find a grove and ensure that I payoff the credit card balance at the end of every month. Millions of Americans struggle with using credit cards responsibility, and I must admit that I am one of them.

Wish me luck.

2. Establish A One-Month Emergency & Maintenance Fund For Each Property

Another one of my 2022 resolutions that I failed at is establishing a one-month emergency fund for each property that I own. In my opinion, this is good accounting and money-management and I should have already done it. But, better late than never.

Although I’ve decided to try again and get this done in 2023, I realize it’s going to take me a while before I can focus on this goal. If I am successful in purchasing a condo this year, then my immediate concern will be to ensure that the condo is able to pay for itself. So, whatever little funds I have left over will be used to improving the condo (if necessary). Then, once it gets going, I will be building up my reserves as much as possible. Part of that process will be me trying to establish a one-month emergency fund for each property I own.

Finally, I may reorganize my finances in such a way that each property has it’s own bank account. I kind of do already, but it’s all jumbled in a way that doesn’t make logical sense. I know that’s an easy fix, but I will get to the reorganization if and when I am able to purchase my final beach condo.

The bottom line is that fulfilling this goal this year is conditional on the success of my investment endeavors in 2023.

3. Continue To Payoff First Rental Property Early

This was one of successful resolutions in 2022 and I figured I would keep the momentum going for 2023. When I initially decided to start paying off my house early, I was expecting that I would be able to pay it off when I retired from my job about 10 years from now. Of course, I will likely leave my job because of my health concerns and if so, I don’t know if I want to work ever again. I will cross that bridge if and when I get there.

Right now, I am trying to live everyday to the fullest. I am also trying to live for the long-term, even though, realistically, I may not have a long-term horizon anymore. I can’t begin to tell you how hard it is to do, and somedays, it’s harder than others. But, to keep my spirits up, I try my best to have goals and try to stay positive. Having goals to work on helps me to keep going.

All that to say that I plan on continuing to payoff my mortgage early. There is a realistic chance that I may sell this house before I pay it off, but that’s ok. There’s also the possibility that it will go to my mom if I die and then she can decide what to do with it. But this is a good habit I have right now and I want to keep the momentum going for as long as I can.

4. Buy Another Beach Condo

Of all my 2023 resolutions, this is the one that I am most excited and nervous about. If you recall, I bought my first beach condo in October 2021. I had never done anything like that before, and it was scary. But since that time, I’ve managed that vacation rental myself. I report on my progress during my vacation rental reports that I post on this blog. In a nutshell, the property pays for itself and I get to use it from time to time.

One of the things I discovered is that I LOVE managing the property myself. I love hosting guests and so far the experience has been rewarding. So, what’s better than having one beach condo? Having two!

All jokes aside, I am nervous about this next purchase. First of all, it’s very difficult getting financing for a beach condo because most of them are non-warrantable condos. Additionally, interest rates are super high right now. I was quoted interest rates as high as 9%. One private lender said 12%. OUCH! In order to purchase a beach condo, I would have to cash out ALL of my retirement accounts (Roth IRA and Roth 401k) and incur all the penalties and taxes associated with that decision. Unfortunately, I am not yet 59-and-a-half.

So why buy another condo? Let’s discuss further.

4A. I Won’t Be Satisfied Unless I Do

It’s interesting but if I didn’t buy another piece of real estate, I could easily report that I am financially free. That is, I would have enough money to last my for the rest of my life (given my current life expectancy), and I wouldn’t have to worry about money ever again. I could do all the traveling I want, and if an emergency were to happen that required a large some of money, I could always tap into my retirement accounts if push comes to shove.

But somehow, I won’t feel satisfied. When I bought my first beach condo, I didn’t know about my health condition at the time. In fact, I could have tapped into my retirement account to get a bigger condo but I chose not to. I chose to start with a one-bedroom condo so that I can see if managing a vacation rental was right for me. The plan was always to buy a bigger one later.

The only difference is now, is that I moved up the timeline to get a second one because of my health condition. My health could take a turn for the worse at any moment, and I don’t like living with regrets.

There is no guarantee that purchasing a second condo will be successful just because the first one currently is. In fact, it’s wrought with risk. Because I will be using pretty much all of my cash to do it, I will in effect be house rich and cash poor for a while. I do have access to credit cards if need be (not ideal I know), but it’s never a good thing to be so cash-strapped. Also, if a hurricane comes that disrupts travel, or another pandemic, I might be screwed. I supposed there’s always bankruptcy – but a LOT would have to happen before I get to the point of declaring bankruptcy. Worst case scenario is that I sell one of my real estate or refinance it to get cash if I really need it.

Finally, even if I am able to buy a beach condo, I will be lucky if it cash flows! I am just hoping it at least breaks even.

4B. So, Why Would Buying Another Beach Condo Make Me Satisfied

Well, in addition to fulfilling one of my goals, owning a second condo is ideal for a number of reasons. For starters, if something were to happen to the first condo, my guests could utilize the second condo if available. But, more importantly, the second beach condo I buy will hopefully be larger than the first one.

In an ideal world, I will purchase a 2-bedroom condo directly on the beach or a 3-bedroom condo two streets from the beach. That way, I can have a place large enough for friends and family to visit when I want to get away. If I just want alone time, I can use the 1 bedroom condo and if I want to take my family and/or friends, I can use the larger condo. It’s a lifestyle asset after all and I plan to use it to enjoy life.

That being said, I’m not an idiot. I don’t want something that’s going to be a strain on my budget or otherwise result in negative cash flow on a monthly basis. In fact, a large part of the reason of getting another condo is to establish an income stream that to me is more reliable and predictable than the stock market. I am at the point in my life right now where I would rather not worry about the ups and downs of the stock market. Cash flow is the name of the game for, and that’s what I will be focused on with the next purchase.

4C. No Guarantees I Will Be Able To Buy Another Beach Condo

So far, I’ve found only bank who has said yes to qualifying me for a mortgage. I qualify to purchase another one-bedroom (which I may still do), but I am really trying to qualify a 2 or 3 bedroom. I still have to file my taxes, which I will do in January.

My goal is to make an offer in February and hopefully close in March or April. I want the property up and running for the busy season so I don’t have to worry about paying for it out of pocket.

I am moving heaven and earth to make this happen, but all I can do is try. In fact, I would be completely ok if the bank ultimately says no to the condo I want. That doesn’t bother me. What would bother me is if I didn’t go after my dream because I was too afraid of failing.

5. Increase Contributions To Dividend Portfolio To $1000 Per Month

Of all my 2023 resolutions, this is going to be very difficult to meet. If I am able to buy a beach condo, I will likely be strapped for cash for a while. All the stars would have to align for me to be able to meet this resolution this year.

Much like establishing a one-month emergency and maintenance fund for each of my properties, I anticipate that I won’t be able to get to this resolution until the latter part of the year. Even if I don’t get to the $1000 figure, I hope to increase my contributions to my dividend portfolio from what it was in 2022. In 2022, I contributed at least $200 per month to my portfolio. Getting that number to $1000 is going to be super challenging.

I am reminded of Michelangelo’s quote when he said, “The greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low and achieving our mark.” Although this will be difficult, I am going to try and achieve this goal in 2023.

6. Travel Overseas To At Least One Country

As mentioned earlier, I plan on living my life to the fullest. One of my goals for 2023 is to travel to at least one foreign country. I do have a short list of countries that I want to visit. So, let’s discuss.

6A. Canada

I have never been to Canada. Honestly, I don’t really have a great desire to go to Canada. I’m sure it’s a fine country. However, one of my sisters live in Toronto. If I do visit, I plan on traveling with my mom.

Since my sister has a daughter, I would get to meet my niece in person for the first time. So, as you can imagine, this is high on my list. Plus, I get to explore one of the major cities in Canada, so win-win.

6B. Jamaica

Jamaica is high on my list as well. I have family who lives in the Caribbean island. The weather is usually perfect and the food is good. Moreover, it’s been a while since I’ve visited the island, and so I am overdue for a visit.

Since I’ve never been on a cruise, one option is to kill two-birds with one stone. Perhaps I’ll take a cruise to Jamaica. Hahaha. We shall see.

6C. England

England is high on my list! I just love Britain. London reminds me of New York, but it has its own vibe. Moreover, I am a succor for the British accent. Every time I visit Europe, I always try to go to England. So, I would love to see this country one more time.

Ideally, if I do visit England, I plan to travel with a friend. It’s more fun that way. We can also split the cost when it comes to hotel.

6D. India

So, one of my good friends is from India and I’ve never been. After a recent conversation with him, I decided to put India on the list. He would be my chaperone and I would stay at his family’s house when I get there.

I don’t know if India will be the next foreign country I visit, but so far it is officially on my bucket list.

6E. Cost And Other Considerations?

One of the benefits of being in credit card debt is that I have points. At the time of this writing, I have over 300,000 points that I can use. That’s enough to get me a roundtrip ticket for an international trip.

Honestly, I don’t know if I will be able to take an international trip every year, but with any luck, and good financial planning, I may just be able to.

One of the big things to consider is my treatment schedule. At present, it’s very difficult to go anywhere for more than a weekend, and even that is tough. So, while I have lofty goals to travel aboard, my treatment schedule, and quite frankly, the side effects of my treatment, make is extremely difficult to do so. But, as the saying goes, “where there’s a will, there’s a way.” And right now, I have the will!

7. Achieve Financial Independence

Of all my 2023 resolutions, this one might be the most important. I plan on finally achieving financial independence in 2023.

Arguably, I am financially independent right now. But, I haven’t done the math. In 2023, I will do the math. My thought process is simple: my assets will be comprised of real estate that pays for themselves, and hopefully brings me a source of income. Additionally, I will have income sources independent of a job that is reliable and guaranteed for the rest of my life. So, assuming I don’t have a W2 income, the goal is to have my income sources higher than my expenses – all while being able to do the things I want, like travel and entertaining.

If I am able to achieve all this, I will be financially independent. That is, I won’t need to work ever again. Granted, I won’t be rich! Far from it. But, I won’t starve either and I will have a roof over my head. So, at some point in 2023, hopefully after I purchase the beach condo, I will do the math!

Of course, I will have to get my spending under control. I don’t technically have a budget as I follow the Conscious Spending Plan. In fact, I am seriously considering moving back into live with my mom for a few months to help reduce costs – especially if I buy a condo. So, everything is on the table.

My plan was to do the math later in life, but alas, I am forced to do so now as opposed to later. The difference is that by doing it now, I have less income sources coming in, as opposed to my original plan of doing it 10 years from now. But it’s all good. I am just thankful for life and I am trying not to sweat the small stuff.

8. Start A YouTube Challenge

Well, well, well. Here we go again. All the way back in January 2021, I posted my 2021 resolutions. At that time, I plan was indeed to start a YouTube challenge. In fact, I did all the steps to do so and even recorded my first video. I reported on this fact in my YouTube Channel Update post in May 2021. The only thing I had to do was click the button to publish the video, and I chickened out.

Here we are two years later and I still haven’t posted anything to YouTube. So, alas, I once again have decided to go on YouTube. I already have the channel name and everything.

But for private reasons, I’ve decided that I won’t go on YouTube until towards the end of 2023. It’s possibly I might just say F-it and do it earlier. I’ve noticed that I do (or don’t do) a lot of things based on my mood which changes constantly. But, I anticipate that a lot of the reasons for my hesitancy will dissipate as we get closer to the end of 2023.

Finally, if I declare myself financial independent, and I am no longer working, I may want to find something to do from home. I hope I enjoy the process of making and editing videos as I do blogging. If so, then I will likely do YouTube full time (or close to it) – even if no one watches my videos. If you can’t tell by now, I prioritize doing the things I like. So stay tuned.

9. Go On A Cruise

My 2023 resolutions list seems more like a bucket list than anything. But, although this is unlikely, I plan on going on a cruise in 2023.

Some of my friends plan on taking a cruise in June. It’s too soon to know if I can join them, but I am keeping that in mind. Even if I can’t make that particular cruise, my friend and I plan on going on a separate one later in the year. Again, it’s hard to plan things with my treatment schedule, but there’s no reason why I couldn’t go on a short 2-3 day cruise.

I have been on a boat before in international waters where we get to gamble. But that was only for a night. This would be a full blown cruise to a foreign country – perhaps the Bahamas! I am excited. However, I know that it’s easy to get Covid-19 taking a cruise, and I have to be careful since I am immune deficient. But, I guess that’s what masks and vaccinations are for.

10. Report On My Progress Along The Way

Of all my 2023 resolutions, this one should be easy to meet. As I was writing this post, one of the things I realized is that I typically disclose my resolutions in January and wait a whole year before reporting on how I did. There’s no reason for that.

So, to help ensure that I don’t forget about my resolutions, I plan on reporting on my progress along the way.

For example, if I am able to payoff my credit card debt by March, I will blog about it and update my 2023 resolutions scorecard.

Easy-peasy.

Final Thoughts

Wow, that was a long list. Making resolutions helps to keep me going. I may not meet all of them, but I will try to work towards achieving my goals.

Although my life drastically took a turn for the worst in 2022, I am not going to give up. I am going to live my life the best way I can. There are other things that are not on the list that I will be working on as well. For example, I plan on finding a good church to go to in order to work on my spiritual health. Additionally, I hope to improve on my chess skills and dancing skills in 2023. I tried to keep the list to mostly financial topics – since this is a financial blog. But, as you can see, there’s a lot of things I want to accomplish.

What about you? Do you have any resolutions for 2023? What did you think of this post?

Let me know your thoughts by commenting below.