getting the money done right

[Island Son]

After many, many years I'm getting FINALLY getting my money in order. I'm going to post up what I'm doing so you can see & follow or criticize

1. get all debts paid off - done

2. get my credit card down so that I can pay off the full amount every month. I haven't carried a balance lately anyway.... but, I'm marking it as "done"

3. Average out how much I spend every month (rent, internet, food, cable, clothes etc). Added in some money for nice stuff, because life is too short to drink cheap beer. Done.

4. Work out a minimum budget based on the above (in case I lose my job), cutting out cable, new clothes, etc. and put aside 3 month's cash for that one. In progress.

5. Get better return on the money i'm putting aside... I opened up an ING investment savings account. Done.

6. Minimize my current bills - in progress. I can't do much about cable (if I cut out some features I lose the discounts, which pushes my bill back up to within $15 of what I'm paying now). Switched to a business cellphone plan which saves me $30 a month with free evenings and weekends. It's ridiculously easy, if you walk into a store they just want to sell you a plan they don't care if you work at one of their customers companies or not. My credit card is $80 a year and 18.5%, I found a card that has lower rates at another bank (Scotia), so I opened up an account there and I'll apply for the card soon. 12.5% interest AND no yearly fee, sweeeeet.
Do a lot of research on this one, some places have low rates but are deliberately designed to make you default and pay HUGE fees, they misbill you etc.


this is long enough already so I'll update it again when something new happens.

 

[bran987]

Sounds like you're on the right track , congratulations!

 

[powderguy]

You ever listen to Dave Ramsey?

 

[The Red Dragon]

Good work, most people never see it out of the red. Just be sure not to accumulate more. I think the secret is just spending less than you earn and investing the surplus. You seem to be on your way there, especially after you stocked up 6-12 months worth of money to live on.
Don't rely on our social security net in the future :S

 

[chewyxrage]

Yearly fee for a credit card? wtf I thought this was 2006


Good work though, it's a good feeling isn't it?

 

[WarriorPL]

Great work bro. #1 is the biggest one to put behind you.

 

[powderguy]

Good work, most people never see it out of the red. Just be sure not to accumulate more. I think the secret is just spending less than you earn and investing the surplus. You seem to be on your way there, especially after you stocked up 6-12 months worth of money to live on.
Don't rely on our social security net in the future :S

Bingo! Alot of people think that good credit = wealth. LOL! You need to spend less than you make and invest!!!! It is as simple as cutting/bulking.... colories in/calories out!

 

[Razorguns]

(1) lower your debt then
(2) figure out how to make more money, so you can go back to your comfortable living with increased means.

 

[Island Son]

F*ck. it has taken me THIS LONG to get my Equifax credit rating cleared.
My credit report had 2 collection notices. I called the collection agencies, they'd never heard of me; that person had a different middle name, age, address, social insurance number. I had that figured out in one day, took the agency 2 months and me bugging them every 10 days to get that shit fixed.

So, I've checked my credit rating and it is great!

 

[Island Son]

Income tax refunds are in (this year and last year), I had them done by an accountant who got me money back. If I'd done last year's on my own I would've owed money.

So, I've now saved enough for my emergency unemployment fund. 3 months of living expenses in an ING account. They're going into 3 3-month GIC's at 3.5%, with automatic renewal. My corp is stable and they love me but, you never know what'll happen.
living expenses, tick!!

 

[Island Son]

here's a small update:

I put all my income tax refunds into my ING savings account. If I lived without it before I can live without it now.

Opened up 2 of the 3 ING GIC's the third one is going at the end of July.

Transferring my 2 existing RRSP's to Scotiabank, I'm going to use their DirectInvest meaning I'll pick the portfolios myself. So I have a lot of reading and research to do.... I already know the bulk of them will be in an index fund with low management fees, the rest will be split between DRIP's and buy-and-hold stocks, maybe a 50/20/30 ratio.

Joined the company stock purchase plan because (1) it's a stable, well regarded and growing company, and (2) they'll match what I put in. Heyyy, free low-risk money!

 

[Island Son]

and I bought a condo 2 years ago (before construction), the closing date will be either very late this year or early next year. I put aside some of the refund money into a 6-month GIC at 3.75%, that'll be for the closing costs, lawyer fees etc. Better than having it sit in a banking account at 0.1%.

Every time the interest rate goes up 1% it potentially costs me $40,000 in mortgage interest. Ouch.

 

[bran987]

and I bought a condo 2 years ago (before construction), the closing date will be either very late this year or early next year. I put aside some of the refund money into a 6-month GIC at 3.75%, that'll be for the closing costs, lawyer fees etc. Better than having it sit in a banking account at 0.1%.

Every time the interest rate goes up 1% it potentially costs me $40,000 in mortgage interest. Ouch.

Do the math on whether or not you should buy a rate lock bro! It might be in your best interest right now.

It sounds like you are doing a lot better man, KUDOS on getting your financial house in order. That's one of the things I respect most about a person.