listersgirl (![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png)
listersgirl) wrote2004-03-15 08:52 pm
listersgirl) wrote2004-03-15 08:52 pm
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(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!
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!
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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.
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