listersgirl | (no subject)

Well, I've finished reading Debt Free by 30, and I'm ready to start becoming rich! Yup.

I did the first step, making a complete list of all my expenses, including keeping track of everything I spent for a month. Wow, I spend a lot on food and eating out. And then I added it all up, and compared it to how much money I made...and there's the reason why I don't have any savings. Living proof that people always spend exactly what they have, without even realizing it. And to think, I used to live on $10,000 a year. How things change.

So now I'm supposed to look at ways I can save - how necessary is my rent? My transportation? My cable/internet/phones? My entertainment? My buying of DVDs/CDs/books/magazines? Those last ones, probably not very. Heh. To start with, I'm going to go talk to my credit union and see if I can reduce my bank fees, which will probably basically mean not using ATMs as much. And then I'm going to look at transferring my credit card stuff to a lower interest card, even if it means not getting any points toward anything. I don't know that I'm ever going to use those points anyway. Oh, and I'm going to try to get a better deal for my cell, since I don't really use it much.

After that, I'm not sure yet - I guess just try to spend less on non-essentials. The grand plan is that I want to have 3 months salary in my savings account in case of emergency, like losing my job. At the rate I'm going now, this'll take about, oh, 4 years. I think I may need to speed that up. I did my taxes this weekend, too, though, and it looks like I'm going to be getting some money back, so I can start with that. And then try to save a bit each month. And once I have that bit in savings, I guess I can start saving for a down payment.

Oh, *lord*, this is going to take forever. But if it actually works, I'll feel like such a responsible grown-up!

Flat | Top-Level Comments Only

You have inspired me to potentially buy/borrow/steal a copy of said book.

Also, we spend a HUGE amount on eating out also.

It was a very interesting book. And I think it'd be even more useful for you, since you live in the States - there was a lot of stuff that really only applied in the abstract, or that I had to convert in my brain (ok, a 401(K) is like...an RRSP?).

I'm just hoping not to be HOMELESS by 30 :) I think debt free is a bit to much to hope for at this point....bastard student loans. Sugar daddy, sugar daddy...wherefore art though sugar daddy? Rich uncle? There *must* be a rich uncle out there just waiting to keel over and leave me millions, right? Um...right? Meanwhile I will probably continue to have fun spending my money on coffee and the demon liquor...and le jazz hot.

Mystery_Diva

Hee - my mom is totally pushing for me to marry rich. I think she figures if you're going to marry at all, it should have some financial benefits. :)

I read that book. But the overwhelming thought of, "But I don't wanna stop buying books/muffins/CDs/fabric" kept running through my head.

Of course, I'm sure it's a lot easier when you're not living on a grad. school stipend. :)

Hey, don't know it: I aspire to live on a grad student stipend! At the moment I'm living on the £60 a week I can make around studying.

I know - since I technically have the money to buy things, it's really hard to stop. I never used to buy books - library all the way, baby - but now that I've started, I want them all!

sounds like a plan.

about saving for a down payment: I don't know how it works in Canada, but here in the states, lenders are so eager to lend money that there are home loans available that don't require much of a down payment, or any. You might want to talk to a mortgage lender, just for informational purposes as you begin saving. They can also tell you exactly what price range you should be looking in given your income, expenditures, etc. /bossy_know_it_all :)

I noticed that - there are lots of ads that talk about no down payment. The monthly payments seem to be a lot higher, though, which is a bit scary.

I have a friend who's looking at condos right now, so for the moment I'm just grilling her to find out what her finding are, but I should probably talk to someone professional. :)

I'm in year two of my four year plan and it's totally worth it, once you get going it even becomes easier! Congratulations on your planning and implementation!

Down payment for your first home in Canada is 5%, and you can borrow that on top of your mortgage if your credit is really, really, really good - but it's expensive. They'll hose you with massive interest rates if you do that. And you'd still have to pay the legal fees and the inspection and taxes and all that stuff.

You can also borrow a down payment from your own RRSP, but you have to pay it back within a specified amount of time, and you would then lose the earnings from that money while it's out of your RRSP, so most people don't recommend doing that. But it's a popular option, nonetheless.

Thanks for the encouragement - it's always good to hear that other people are going through the same thing.

I came out of school with 40G in student loans, plus a LOT of credit card debt... I feel yer pain.

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Debt free by 30?

Re: Debt free by 30?

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