So, I've been tinkering with my budget again (what I do every day). I realized that my car is not going to last me forever. It's a 2010, so I'm hoping it will last me another 4 years (at least). So, next year I will start putting aside money towards a new (to me) car. In 4 years I won't have a ton to spend on a car, but may have enough in my emergency fund to offset that (without making a huge impact on the emergency fund).
I have also modified my budget when it comes to money being set aside for my son's higher education. When he's 17 instead of putting all the money I would have put aside to the mortgage (paid off by then), I'll take half that money for a new (to us) car for either him or I. We have public transportation where we are, but it's not fantastic. So, I want to at least plan for him having his own car. By then he should have a job and be footing the bill for at least the gas and maintenance, if not the insurance (we'll cross that bridge when we come to it).
I was asked yesterday how I was doing since being on Gail's show. I think I'm finally doing pretty great. It took me a few years. I was on the show when my son was only a couple of months old and now he's 7 and I'm finally on track. It is so hard being a single mom sometimes. I had no idea there were subsidies for day care. That would have been a huge help to me for 3 years!!! But, I can't change the past, I can only look to the future and learn from my mistakes. I'm finally doing pretty well and will have my mortgage paid off in 27 years instead of 25 (and I put debt into the mortgage at least 3 times). So, thanks again to Gail for putting me on the right track.
Wednesday, December 13, 2017
Wednesday, December 06, 2017
End of Year Budget Review
So, I rejigged my budget numbers based on what I spent this year (and what I plan to spend for the rest of December) and determined that I was over on two categories this past year. Now, I'm not sure where my math went wrong because I have enough in my bank account to cover my December Visa bill and have money left over. So, I'm not sure if I actually did go over my budget. Obviously, the new heating / cooling system was over my budget (my house budget was not equipped to cover a $13,000 expense), but that aside my budget tells me I was over in two categories.
I was over by $300 in my public transit category. At the end of the year I was asked to switch from my local office to a downtown office. Which meant I needed to start taking the train. This was not an expense I had expected and couldn't budget for. The expectation is that my yearly bonus would help to cover this new expense, but I had to handle it until January.
I was also over in my books / toys / gifts category. Apparently, I spoil my son. This category also held our expenses for computer backup and security ($250 at the end of the year - which I had forgotten about). I was over by $420. I've upped my son's allowance starting this month so that he will be responsible for the majority of books he buys (and will hopefully start to understand why I love the library so much). We spent a lot of money on video games this year. I bought my son a 2DS system for his birthday and games at Christmas. Plus we had games and accessories for the Wii early in the year. Next year I am planning on replacing the Wii (it is on its last legs). We will hopefully be able to borrow games from the library for whatever system I end up getting. I will have to plan ahead for that purchase as it will not be cheap.
But, with those (3) categories aside, I think I had a fabulous year in terms of budgeting. It was really my first year to really make sure I was doing it and I'm pretty happy with the progress I've made. I have my mega spreadsheet that I review daily. It has details of my budget, my spending, where my mortgage is and will be in the coming year, where my son's RESPs are and when I will be able to start putting more towards that goal, where my RRSPs are (not great). I know I should focus on my RRSPs but I really want to get the mortgage paid off and Jude's school costs figured out. Jude will still need to pay for part of his school, but I'm hoping that I can keep the amount as low as possible for him. I do not want him drowning in debt when he gets out of school (like my brother and I).
I'm planning to up the amount of money against the budget and Jude's RESPs next year. My goal is to have the mortgage paid off in 9 years and then put that extra money against Jude's school budget.
So, year 1 of budgeting is almost in the books. Here's hoping I don't spend more than I've planned this month.
I was over by $300 in my public transit category. At the end of the year I was asked to switch from my local office to a downtown office. Which meant I needed to start taking the train. This was not an expense I had expected and couldn't budget for. The expectation is that my yearly bonus would help to cover this new expense, but I had to handle it until January.
I was also over in my books / toys / gifts category. Apparently, I spoil my son. This category also held our expenses for computer backup and security ($250 at the end of the year - which I had forgotten about). I was over by $420. I've upped my son's allowance starting this month so that he will be responsible for the majority of books he buys (and will hopefully start to understand why I love the library so much). We spent a lot of money on video games this year. I bought my son a 2DS system for his birthday and games at Christmas. Plus we had games and accessories for the Wii early in the year. Next year I am planning on replacing the Wii (it is on its last legs). We will hopefully be able to borrow games from the library for whatever system I end up getting. I will have to plan ahead for that purchase as it will not be cheap.
But, with those (3) categories aside, I think I had a fabulous year in terms of budgeting. It was really my first year to really make sure I was doing it and I'm pretty happy with the progress I've made. I have my mega spreadsheet that I review daily. It has details of my budget, my spending, where my mortgage is and will be in the coming year, where my son's RESPs are and when I will be able to start putting more towards that goal, where my RRSPs are (not great). I know I should focus on my RRSPs but I really want to get the mortgage paid off and Jude's school costs figured out. Jude will still need to pay for part of his school, but I'm hoping that I can keep the amount as low as possible for him. I do not want him drowning in debt when he gets out of school (like my brother and I).
I'm planning to up the amount of money against the budget and Jude's RESPs next year. My goal is to have the mortgage paid off in 9 years and then put that extra money against Jude's school budget.
So, year 1 of budgeting is almost in the books. Here's hoping I don't spend more than I've planned this month.
Thursday, November 30, 2017
Year End Review Part 1
It's coming up on the end of the year and I have a good idea of how much money I will be spending to the end of December (I hope).
I have a good idea of how much money I will have left in my bank account at the end of the year and I know what I had at the beginning of the year. I think it works out to me having overspent $900 for the year. I have managed to put away $3000 into a savings account and around $3000 into RRSPs, and some money set aside for my son, plus pay off my line of credit and most of my car loan (that will be done early next year).
This year I had the giant expense of a new A/C, heating, and water tank unit. $13000, I believe. I will hopefully have that paid off by the end of next year and will only have my mortgage remaining for debt. I've put bad debt into my mortgage I think 3 times. So, once the above is all paid off, my mortgage will be back at my original purchase price (not great I know). But, it is worth about $80,000 more than what I paid for it. On my current debt repayment plan I will have the mortgage paid off within another 8 years. I know not great, but I'm a single mom and I weigh the debt repayment against all of the activities my son wants to participate in (the activities tend to win out).
I know the debt repayment isn't as aggressive as it should be, but I'm trying.
I'm updating my budgeting spreadsheet. It now contains some charts so I can visualize where my money is going. This year the majority of my money went to: mortgage, condo fees, childcare, groceries, vacation (we are going to Disney next year and I have that time-share type deal that I'm still paying for), and debt repayment.
Next year I should have three categories removed from my budget: water heater (since I purchased this year), car payment (because I moved it into my mortgage payment and that portion is almost paid off), and pet (unfortunately, I had to put down my wonderful Placenta Head this year). Those three categories made up about $120 / month in my budget. That money can now go to debt repayment.
I'm also debating whether or not we will finally use that vacation time share in 2019. If we do, I'll be paying for the portion we have to pay, plus the flights in 2018. At the end of 2018 will be my last payment on the time share, so that will be a big amount of money for the year back in my budget for 2019. I'm thinking half to vacations and half to debt repayment (but let's get through 2018 first).
I still have a big amount on the Disney trip to pay in 2018 - the remainder of the hotel and all of our food. I know you can bring your own food into Disney, but my son is really picky and I expect we will just be eating pizza everyday. I'm going to start looking at the grocery stores that deliver to Disney to see what we can maybe buy and have delivered.
My spending app tells me that I was over my typical spend two months out of eleven. February - when I paid for part of Disney and summer camps. and June when I paid for the rest of summer camps. I had three months where I was on the cusp for overspending. So, I think that was a pretty good year. I can't expect to have every month under. I have Disney to pay for in January, camps to pay for in February and June.
I am hoping to keep my expenses down in December. I only have a couple of presents left to buy (should be under $100). We will have higher gas costs, and eating out costs because of travel for the holidays, but the rest should be under control.
I have a good idea of how much money I will have left in my bank account at the end of the year and I know what I had at the beginning of the year. I think it works out to me having overspent $900 for the year. I have managed to put away $3000 into a savings account and around $3000 into RRSPs, and some money set aside for my son, plus pay off my line of credit and most of my car loan (that will be done early next year).
This year I had the giant expense of a new A/C, heating, and water tank unit. $13000, I believe. I will hopefully have that paid off by the end of next year and will only have my mortgage remaining for debt. I've put bad debt into my mortgage I think 3 times. So, once the above is all paid off, my mortgage will be back at my original purchase price (not great I know). But, it is worth about $80,000 more than what I paid for it. On my current debt repayment plan I will have the mortgage paid off within another 8 years. I know not great, but I'm a single mom and I weigh the debt repayment against all of the activities my son wants to participate in (the activities tend to win out).
I know the debt repayment isn't as aggressive as it should be, but I'm trying.
I'm updating my budgeting spreadsheet. It now contains some charts so I can visualize where my money is going. This year the majority of my money went to: mortgage, condo fees, childcare, groceries, vacation (we are going to Disney next year and I have that time-share type deal that I'm still paying for), and debt repayment.
Next year I should have three categories removed from my budget: water heater (since I purchased this year), car payment (because I moved it into my mortgage payment and that portion is almost paid off), and pet (unfortunately, I had to put down my wonderful Placenta Head this year). Those three categories made up about $120 / month in my budget. That money can now go to debt repayment.
I'm also debating whether or not we will finally use that vacation time share in 2019. If we do, I'll be paying for the portion we have to pay, plus the flights in 2018. At the end of 2018 will be my last payment on the time share, so that will be a big amount of money for the year back in my budget for 2019. I'm thinking half to vacations and half to debt repayment (but let's get through 2018 first).
I still have a big amount on the Disney trip to pay in 2018 - the remainder of the hotel and all of our food. I know you can bring your own food into Disney, but my son is really picky and I expect we will just be eating pizza everyday. I'm going to start looking at the grocery stores that deliver to Disney to see what we can maybe buy and have delivered.
My spending app tells me that I was over my typical spend two months out of eleven. February - when I paid for part of Disney and summer camps. and June when I paid for the rest of summer camps. I had three months where I was on the cusp for overspending. So, I think that was a pretty good year. I can't expect to have every month under. I have Disney to pay for in January, camps to pay for in February and June.
I am hoping to keep my expenses down in December. I only have a couple of presents left to buy (should be under $100). We will have higher gas costs, and eating out costs because of travel for the holidays, but the rest should be under control.
Friday, August 25, 2017
2017 debt so far
So, I was thinking that I hadn't gone into anymore debt this year and then I remembered I had to replace my heating and cooling system this year. So, I went into a huge amount of debt this year. $13000 to be exact. But, I'm on track for that to be the ONLY debt I incur this year.
I'm socking away money into an emergency fund now as well as trying to build back up my RRSPs (when I was on mat leave I took out almost all of my RRSP money - which created a viscous circle of owing taxes). I put away money into an RESP and a savings account for my son every month (on top of his allowance for his weekly mad money).
I'm still addicted to watching 'til debt do us part'. Even though I've seen all the episodes that they've been airing I still usually remember something else I should be doing.
My big problem is still eating out. I take my son out for dinner once a week (it's like our entertainment) and he gets McDonald's once a week (it's his favourite). Then I probably get take out once or twice a month (to get my Thai or Indian fix). Not near as bad as I used to be, but still not great. I've tried not getting a drink when we go out, and most times I forgo dessert.
I was trying a different Pinterest recipe every week, but once the summer hit I stopped and just relied on my BBQ (which I picked up for cheap off a Facebook group). I'm hoping to get back to cooking once school starts up again.
I'm socking away money into an emergency fund now as well as trying to build back up my RRSPs (when I was on mat leave I took out almost all of my RRSP money - which created a viscous circle of owing taxes). I put away money into an RESP and a savings account for my son every month (on top of his allowance for his weekly mad money).
I'm still addicted to watching 'til debt do us part'. Even though I've seen all the episodes that they've been airing I still usually remember something else I should be doing.
My big problem is still eating out. I take my son out for dinner once a week (it's like our entertainment) and he gets McDonald's once a week (it's his favourite). Then I probably get take out once or twice a month (to get my Thai or Indian fix). Not near as bad as I used to be, but still not great. I've tried not getting a drink when we go out, and most times I forgo dessert.
I was trying a different Pinterest recipe every week, but once the summer hit I stopped and just relied on my BBQ (which I picked up for cheap off a Facebook group). I'm hoping to get back to cooking once school starts up again.
Thursday, August 17, 2017
Mortgage Status
I was using my debt calculator on my mortgage today and if I am calculating correctly I should have my mortgage paid off in just under 9 years (possibly fewer). This is huge! I have no other debt. Of course, that timing puts me right when my son will (hopefully) be going off to higher education of some kind. I have RESPs for him, but who knows how much it will cost at that time.
I know I've made mistakes in the past and if I hadn't of made them I would be in such better shape today, but I've hopefully learned and will continue to learn and make the best of the situation as it stands today.
9 years! I'm so excited.
I know I've made mistakes in the past and if I hadn't of made them I would be in such better shape today, but I've hopefully learned and will continue to learn and make the best of the situation as it stands today.
9 years! I'm so excited.
Tuesday, August 15, 2017
Equity and Birthday
So, I was wondering how much equity I have. I did a quick calculation and I appear to be worth about $200 000. Not a huge amount, but not horrible. Since I have consolidated all of my debt into my mortgage I am hoping to be able to make bigger payments (which I've been doing) into that amount.
This summer hasn't been great for keeping the spending in line. I spent more than I probably should have on my son's birthday (party and gift). I kept the party to 3 kids, but with food and excursion it was probably $150 - $175. The gift was $200 (but he hasn't put it down since he got it, so I feel like it was money well spent).
My toy / gift budget for the year is used up so I don't know what I'm going to do for Christmas. I don't think Christmas will be as extravagant as the birthday present, but I'll still need to find some money for something.
According to my budget spreadsheet I've been going over budget $400 a month on average, but according to my bank account I have extra money for the year. I'm not sure where I screwed up on those two things (I'm hoping the bank account is right).
I've been losing money on my investments and I'm hoping that is just for now (I talked to an adviser at the bank and that's what they believe).
Next year should be a good year in terms of debt repayment.
This summer hasn't been great for keeping the spending in line. I spent more than I probably should have on my son's birthday (party and gift). I kept the party to 3 kids, but with food and excursion it was probably $150 - $175. The gift was $200 (but he hasn't put it down since he got it, so I feel like it was money well spent).
My toy / gift budget for the year is used up so I don't know what I'm going to do for Christmas. I don't think Christmas will be as extravagant as the birthday present, but I'll still need to find some money for something.
According to my budget spreadsheet I've been going over budget $400 a month on average, but according to my bank account I have extra money for the year. I'm not sure where I screwed up on those two things (I'm hoping the bank account is right).
I've been losing money on my investments and I'm hoping that is just for now (I talked to an adviser at the bank and that's what they believe).
Next year should be a good year in terms of debt repayment.
Thursday, June 01, 2017
House Repair and Debt Consolidation
My water heater failed about two months ago. Due to the setup of my heating and cooling system this meant I had no hot water and no heat. The system was probably 20+ years old. It also handles my air conditioning (which failed completely about 3 years ago). So, I had the tough decision about what to do.
After getting lots of different quotes and speaking with my dad (in the business of heating and cooling for many years), I decided to replace the entire system - hot water tank, heating system, and cooling system. This worked out to about $12 000. I don't have $12 000 lying around.
I talked to the bank, there is a ton of equity in my home (worth about $350, I owe about $160). They are willing to add the cost to my mortgage, but I also need to include my line of credit ($10 000) and my car loan ($10 000). This sounds good to me, lower rate at least.
So, I did this and now I have one monthly payment and one place to look at all of my debt. So, I'm trying to put the money I had set aside for debt repayment as a payment on my mortgage. But, I don't know what happened. This was true for a couple of months, but now I seem to not have the extra set aside. I don't feel like I spent more in the last couple of months.
But, this month I owe $700 on summer camps (next month as well) and my cat had to be put down ($300). So, it was an expensive month.
Plus, I had put my yearly bonus and tax return against my line of credit. So, I no longer have access to that extra money for this year, which would have been used to help on the summer camp.
But, on a happy note: my debt (including my mortgage) is $186 000, and my house is worth $350 000 (not that I could afford to move - as nothing would be available for that). It's nice to have one number in one place. I only have about $16 000 in investments, but it is something and it is growing.
I am hoping to get the debt back down to $160 000 in the next two years and to increase my emergency fund as much as possible in that time. Once I've got the debt back to where I want it to be, I'll increase my emergency fund, and once that is where I want it, I'll be upping my savings. I'm not in the financial shape I'd like, but I'm getting there.
After getting lots of different quotes and speaking with my dad (in the business of heating and cooling for many years), I decided to replace the entire system - hot water tank, heating system, and cooling system. This worked out to about $12 000. I don't have $12 000 lying around.
I talked to the bank, there is a ton of equity in my home (worth about $350, I owe about $160). They are willing to add the cost to my mortgage, but I also need to include my line of credit ($10 000) and my car loan ($10 000). This sounds good to me, lower rate at least.
So, I did this and now I have one monthly payment and one place to look at all of my debt. So, I'm trying to put the money I had set aside for debt repayment as a payment on my mortgage. But, I don't know what happened. This was true for a couple of months, but now I seem to not have the extra set aside. I don't feel like I spent more in the last couple of months.
But, this month I owe $700 on summer camps (next month as well) and my cat had to be put down ($300). So, it was an expensive month.
Plus, I had put my yearly bonus and tax return against my line of credit. So, I no longer have access to that extra money for this year, which would have been used to help on the summer camp.
But, on a happy note: my debt (including my mortgage) is $186 000, and my house is worth $350 000 (not that I could afford to move - as nothing would be available for that). It's nice to have one number in one place. I only have about $16 000 in investments, but it is something and it is growing.
I am hoping to get the debt back down to $160 000 in the next two years and to increase my emergency fund as much as possible in that time. Once I've got the debt back to where I want it to be, I'll increase my emergency fund, and once that is where I want it, I'll be upping my savings. I'm not in the financial shape I'd like, but I'm getting there.
Wednesday, February 15, 2017
Annual Goals 2017
I just read a blog that had listed their annual goals and I thought what a great idea.
Debt - to pay off half of my debt this year (including my car). I have a good plan, I think, so that all of the debt is paid off within 24 months. I still have monthly / yearly child care costs that almost equal my mortgage. This takes a huge chunk out of my monthly income.
Saving - I don't have a great goal for this as most of my money will go to the debt issue. I did put a chunk of my yearly bonus toward my RRSP, but it probably isn't enough. I'm starting to worry about my retirement income. I need to decide if any money I don't spend out of my budget will go to debt repayment (probably) or savings.
Vacation - Last year we travelled out west to see my brother's family, we also did an overnight at Great Wolf Lodge (not money well spent - it was so expensive), and we did a bit of a staycation and did a week of touristy things in Toronto. This year we are staying close to home, but will use some of the vacation money towards next year's trip (either Disney or Mexico). So, nothing big planned this year, but budgeting for next year. We will also do Wonderland and the Zoo, and hopefully a weekend of camping this year.
Reading - Last year was a complete fail on the book front. I wasn't taking the train anymore to work so I didn't have all of that time for reading. I don't stay up reading at night because I'm too tired after reading to my little guy. I am hoping to read 10-12 books this year. I've read 2 so far (better than last year). I'm reading at the gym (maybe not great for my workout, but makes me happy).
Knitting - This has also been a complete fail lately. I just don't seem to have any interest in it. I've started a couple of projects, but nothing holds my interest. I think back to the blanket I made for my niece and can't imagine do something like that again. I need to find a project that excites me.
Fitness - I joined a gym this year. I sit all day at work and don't really get much exercise with a 6 year old. I get to the gym most work days for a 30 min session. I'm trying out different things to see what I like, most days I just want the treadmill so I can read my book. When I was on mat leave I lost a ton of weight walking everyday.
Spending - We eat out once a week because my little guy loves it, but that's it. Which has been hard since I love take out. I miss my Indian, Mexican, and Thai options. But, seeing the debt come down makes it all worth it. Once this debt is all paid off maybe I'll splurge. I'm also stopping myself from buying any shoes (which I love). I'm hoping to only spend money on the little guys clothes this year. I spent a lot on toys last year, so I'm hoping to curb that spending as well. He has an allowance (that he likes to save, not spend). I'm saving up for his birthday, and then for Christmas, but will try to not spend anything else this year. I've cut back on my alcohol intake as well. I like beer, alot, but it was getting too expensive. I'm limiting intake to the weekends (and not when we go out for dinner), so it works out to just over 12 a month, which is way better than this time last year when it was about 12 a week. I did splurge on scrapbooks already this year (used up my whole budget for the year in fact). There was a sale so I had last year's books printed. The money came out of my bonus. We spend a lot on sports. For a not very active family, I don't know how this happens. How do other families afford it? We just have swimming and skating throughout the year and it is expensive. I'm forgoing hockey for another year to save the $400 and the little guy has decided he doesn't like Beavers anymore, so that saves me another $200 a year.
I don't understand how people can have so much money to put towards debt and saving. I feel like I'm doing everything I can to limit my spending, but still not as much as I'd like to put away. Even once the debt is paid off I don't feel like there will be as much as I'd like to put towards RRSPs. I also have RESPs to think about. I haven't been able to put a ton towards those though because of the debt, but plan to up that amount once the debt is paid off. I'm also hoping to put more towards my mortgage. So many things I want to do with that debt money! I so wish I hadn't of gotten myself into this mess. I hope my son never ends up here. Is it because of my childcare costs? My mortgage and car amounts make up 36% of my income. Childcare is about 10% of my income (which will be true for another 4 years at least).
That's my plan. If I stick to it (and I plan to), I'll be debt free (excluding my mortgage) in two years.
Debt - to pay off half of my debt this year (including my car). I have a good plan, I think, so that all of the debt is paid off within 24 months. I still have monthly / yearly child care costs that almost equal my mortgage. This takes a huge chunk out of my monthly income.
Saving - I don't have a great goal for this as most of my money will go to the debt issue. I did put a chunk of my yearly bonus toward my RRSP, but it probably isn't enough. I'm starting to worry about my retirement income. I need to decide if any money I don't spend out of my budget will go to debt repayment (probably) or savings.
Vacation - Last year we travelled out west to see my brother's family, we also did an overnight at Great Wolf Lodge (not money well spent - it was so expensive), and we did a bit of a staycation and did a week of touristy things in Toronto. This year we are staying close to home, but will use some of the vacation money towards next year's trip (either Disney or Mexico). So, nothing big planned this year, but budgeting for next year. We will also do Wonderland and the Zoo, and hopefully a weekend of camping this year.
Reading - Last year was a complete fail on the book front. I wasn't taking the train anymore to work so I didn't have all of that time for reading. I don't stay up reading at night because I'm too tired after reading to my little guy. I am hoping to read 10-12 books this year. I've read 2 so far (better than last year). I'm reading at the gym (maybe not great for my workout, but makes me happy).
Knitting - This has also been a complete fail lately. I just don't seem to have any interest in it. I've started a couple of projects, but nothing holds my interest. I think back to the blanket I made for my niece and can't imagine do something like that again. I need to find a project that excites me.
Fitness - I joined a gym this year. I sit all day at work and don't really get much exercise with a 6 year old. I get to the gym most work days for a 30 min session. I'm trying out different things to see what I like, most days I just want the treadmill so I can read my book. When I was on mat leave I lost a ton of weight walking everyday.
Spending - We eat out once a week because my little guy loves it, but that's it. Which has been hard since I love take out. I miss my Indian, Mexican, and Thai options. But, seeing the debt come down makes it all worth it. Once this debt is all paid off maybe I'll splurge. I'm also stopping myself from buying any shoes (which I love). I'm hoping to only spend money on the little guys clothes this year. I spent a lot on toys last year, so I'm hoping to curb that spending as well. He has an allowance (that he likes to save, not spend). I'm saving up for his birthday, and then for Christmas, but will try to not spend anything else this year. I've cut back on my alcohol intake as well. I like beer, alot, but it was getting too expensive. I'm limiting intake to the weekends (and not when we go out for dinner), so it works out to just over 12 a month, which is way better than this time last year when it was about 12 a week. I did splurge on scrapbooks already this year (used up my whole budget for the year in fact). There was a sale so I had last year's books printed. The money came out of my bonus. We spend a lot on sports. For a not very active family, I don't know how this happens. How do other families afford it? We just have swimming and skating throughout the year and it is expensive. I'm forgoing hockey for another year to save the $400 and the little guy has decided he doesn't like Beavers anymore, so that saves me another $200 a year.
I don't understand how people can have so much money to put towards debt and saving. I feel like I'm doing everything I can to limit my spending, but still not as much as I'd like to put away. Even once the debt is paid off I don't feel like there will be as much as I'd like to put towards RRSPs. I also have RESPs to think about. I haven't been able to put a ton towards those though because of the debt, but plan to up that amount once the debt is paid off. I'm also hoping to put more towards my mortgage. So many things I want to do with that debt money! I so wish I hadn't of gotten myself into this mess. I hope my son never ends up here. Is it because of my childcare costs? My mortgage and car amounts make up 36% of my income. Childcare is about 10% of my income (which will be true for another 4 years at least).
That's my plan. If I stick to it (and I plan to), I'll be debt free (excluding my mortgage) in two years.
Tuesday, February 14, 2017
Debt Reduction Plan
Back when Jude was only a year old, I was on the show 'Til Debt Do Us Part'. Being a single mom without a plan on mat leave had put me in a whole that I wasn't sure how to get out of. Luckily Gail Vaz-Oxlade came in to set me straight. She had a great plan for me, but I faultered. I had a year on mat leave with no supplemental income except EI (about a 1/3 of my income) and went into about $20000 worth of debt. Then came the next couple of years where daycare costs were about $1700 / month, more than my mortgage, car payment, and housing costs combined.
During that time I went on stress leave from my company and tried to find a company that would be a better fit. This took a few months. During that time I went on a trip (that had been planned well in advance of all this) and went into a depression hole while on the trip. Well, depression holes for me normally mean I'll spend money. I bought a vacation membership while on that trip (with money I did not have).
Luckily, I came back and found a position with an organization that fits me perfectly. Flexwork, flexplace, time off for appts, and understanding about mental health issues.
I was still dealing with expensive daycare fees so I wasn't making any headway with my debt (plus now, I had the monthly payments for the vacation property). Fastforward to last year, I switched locations with my organization (no more $250 / month for train travel) and received a hefty bonus.
I went back to my budget spreadsheet and made a plan. I stuck to the plan! I paid off $10000 of my line of credit last year. That leaves $14000 remaining on the credit line, plus $10000 for my car, and $5000 for the vacation property.
If my calculations are correct I will have all of this paid off by the end of next year. I could probably pay it off sooner, but we are going on vacation next year (not this year).
I look at the numbers constantly. But, it keeps me on track. I just needed to write about it because I'm excited to be on the right track.
I'm Back!
The last post was in 2012. Wow, it has been awhile. I've been spending my time on Facebook I guess. This morning I was thinking about my debt reduction plan and that I wanted a blog to chat about it, so here I am.
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