After so many months of seeing my debt rising due to my stupid habit of pimpin’ my lifestyle, I’ve finally put my money where my mouth is. I have started to pay off my debts! You know what is the toughest thing to do with your budget? It’s not making more money, it’s slowing down your spending habits!
But to be truly honest, I wasn’t able to slow down my spending in June. In fact, it was just a regular month ‘finally’ without extra expenses. The good thing is that I don’t expect to have extra expenses for the rest of the summer. My children’s birthday gifts are done (it’s a huge cabin in the woods!) and we don’t have any big summer vacation plans either… hey one guy has the right to get that it’s time to stop spending ;-).
Expenses are under control; what’s next?
I’m currently concentrating at the bank, on finishing my year with a big bang! I closed several deals in June and I am now in line to get a bonus over $30K… possibly 40K if I’m lucky enough! This bonus is payable in January… it will be the perfect time to pay off my credit card debts in full! Unfortunately, even if the bonus is pretty chunky, once the Government is paid and I max out my RRSP contribution, there won’t be much left after I pay off my debt! I guess this is what happens when you spend money you expect to earn… there are no personal rewards when paying it back!
I don’t expect to increase my company shares value until the end of the year. The only things that will increase will be the value of my house at the end of the year (by 3%, following inflation) and my pension plan (which I still have yet to receive my updated employee booklet). Both assets should pop $20 to 25k more on my statement. Therefore, I should be able to reach the $200K net worth mark without too much effort this year. If I’m lucky, I’ll reach $250K by January when my next bonus gets deposited!
Learning something from this
This is probably the most important thing I’ve learned from spending money that I am expected to make in the future; it’s not as fun when you get your bonus. You don’t even feel “proud” or happy since you see the money in your bank account one minute and gone the next.
Will I continue to spend money? Yup! But I’ll make sure that I spend money earned and not expected!
Here’s the details of my net worth statement for June:
CHECKING ACCOUNT $1 000 $1 000 0,0%
$6 197 $6 930 11,8%
RRSP ACCOUNT $21 407 $21 453 0,2%
PENSION PLAN $12 000 $12 000 0,0%
HOME $345 640 $345 640 0,0%
COMPANY SHARES $98 000 $98 000 0,0%
MAZDA TRIBUTE $20 832 $20 398 -2,1%
MAZDA RX-8 $8 400 $8 000 -4,8%
TOTAL $513 476 $513 421 0,0%
CREDIT CARD $18 859 $16 625 -11,8%
LINE OF CREDIT $19 759 $19 717 -0,2%
HELOC $264 574 $263 710 -0,3%
CAR LOAN $20 832 $20 398 -2,1%
Personal Loan $12 291 $12 083 -1,7%
TOTAL $336 315 $332 533 -1,1%
net worth: $180,888 (+2%)
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