It’s been a while since I gave a full update on my $1,500 Project. My goal is to increase my income or decrease my expenses in order to create $1,500 of free cash flow per month. This amount corresponds to my wife’s net income. In fact, we are both trying to find a solution so she can stay home with our two angels. As she is officially scheduled to go back to work at the end of August, we have about eight months left.
Even though we might be running out of time, I am still confident that we will be able to change our financial situation over the current year.
I recently restructured my debts through my property. I knew that my house increased in value and I wanted to benefit from the equity sleeping in it. With the recent increase of my HELOC, I was able to pay off my personal loan and a small computer loan.
By doing so, I was aware that I was now amortizing my debts over 25 years instead of the 48 months remaining on my previous financial obligations. Therefore, the smart thing to do was to increase my monthly payment on my HELOC in order to pay off my entire debt before the prescribed 25 years that we usually do for a mortgage. So I increased my payment in order to pay off my property in 18 years. Technically, my Smith Manoeuvre investments should compensate for the total amount owing on my property way before that.
We actually hired a housecleaning lady that comes once a month for $50. While this does not help us at all to achieve our $1,500 project, it helps giving us more time an energy to spend in family or even to work on different projects (like blogging 😉 ).
In the end, we were able to create $209 since we started this project in September. I am pretty happy about the results as I had to include the extra expense related to the house cleaning lady ($50). We are now down to find another $1,291 in order to achieve our goal. While this is still a big chunk of money, we have other ideas in mind. I am fairly confident that we should be able to go over $500 in cash flow by the end of April. I just need to get some stuff done before I can write about the good news J. Let’s just say for now that my internet project seems to pick-up.
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