Going in the right direction! Yippee!
Vacations are paid. Kids’ day camp and birthday parties too. Car didn’t breakdown this month. Life is good!
I’ve cashed out a part of my employer shares to pay down my debts and am finally seeing thing moving along in the right direction. I started January with a net worth of $203K. I’m now at almost 237K in 2012, I wanted to focus on debt repayment. If you look at my total debts back in January, I was at $317,836. Now I’m at $322,331. If you do a quick math here, you won’t be impressed. However, considering all the bad luck I have endured over the past 6 months (read more about it here), I think I did a pretty good job.
For the very first time in my life, I feel the stress of debt. It’s a weird feeling. I have never been concerned about my level of debt since I started working as I have always able to increase my income significantly (read more about the chronology of my income). Therefore, each time I made an important purchase in my life, I just thought that I needed to boost my year-end bonus to compensate. The worst part is that it has always been working very well.
But I woke up at the end of 2011 telling myself; “do you really want to keep up like this all your life?”. It’s not a matter of being or not being able to make my payments. I’m doing pretty well at it actually and am not worried at all. However, when I look at my situation for the upcoming years, I really would like to drop my debt level drastically before turning 35 (which is in five years). This would give me the ability to enjoy financial independence and would be able to quit my job whenever I want.
I actually love my job. I enjoy every single day. But knowing that I can pull the plug at any moment and never be worried is an awesome feeling. I want to feel that way in the future!
But putting so much emphasis on debt started to stress me. Each time I’m about to spend money, I now think twice. I look at my bank account every couple of days when I used to check it every two months. I’m constantly calculating my debt level and trying to find where I spend money in order to cut back. To be honest, I don’t really like this feeling!
I’m doing this because I don’t want to get stuck in a credit spiral where I don’t see the end of the tunnel. Instead, I’ve created the urge of action right away. But it really bothers me. I’m not sure I want to continue this way, but I want to make sure I go under 300K before I stop my madness. I have 23K to go and I’ll feel relief J. Once past the 300K level, I’ll start to breath again. I guess I have about one year to go in order go under 300K. My year-end bonus (once again!) should be enough to bring me down to this level in January 2013 :-D.
Speaking of which, I’m better off starting to work like there is no tomorrow at work!
Here’s the table:
|CHECKING ACCOUNT||$1 000||$1 000||0,0%|
|$4 872||$1 450||-70,2%|
|RRSP ACCOUNT||$28 254||$28 948||2,5%|
|PENSION PLAN||$26 131||$26 131||0,0%|
|HOME||$351 640||$351 640||0,0%|
|COMPANY SHARES||$131 521||$131 521||0,0%|
|MAZDA TRIBUTE||$15 624||$15 190||-2,8%|
|MAZDA RX-8||$3 600||$3 200||-11,1%|
|TOTAL||$562 642||$559 275||-0,6%|
|CREDIT CARD||$10 064||$7 985||-20,7%|
|LINE OF CREDIT||$19 589||$19 819||1,2%|
|HELOC||$264 754||$264 154||-0,2%|
|CAR LOAN||$15 624||$15 190||-2,8%|
|Personal Loan||$9 791||$9 583||-2,1%|
|Pool Loan||$5 637||$5 600||-0,7%|
|TOTAL||$325 459||$322 331||-1,0%|
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