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 Post subject: Debt free by October 2017 (now August 2016)
PostPosted: Sun Feb 27, 2011 3:19 pm 

Joined: Sat Feb 12, 2011 5:47 pm
Posts: 90
Location: Ontario, Canada
Our only debts are:
$52K Mortgage at 3% (variable), payments of $550 biweekly, done Feb 2015
$90K HELOC at 4% (variable), only interest required monthly
Total $142K

We bought our current house a year ago and closed on our new house before the old one. Since we had no mortgage on the old house it wasn't a problem with financing. We structured the new financing this way to give the flexibility we needed/wanted at the time since we also put about $10,000 into some renovations it in the first month.

We are paying $300 biweekly to the HELOC principal and then the actual interest at the end of the month - right now about $300. When the mortgage is paid off in Feb 2015, we'll add that payment to the HELOC and it will be done by October 2017. Ideally we'll pump anything extra to this along the way, but that's the payoff date as we are now.

I don't anticipate adding much extra to the HELOC payments this year because we need to replace some windows.

We maintain a minimum balance of $2K in our chequing account at all times and I have $5K in a separate savings account. I'm considering this my emergency fund for now. I'd eventually like to have at least $20K but I'm not willing to add to this now and make essentially no interest on it while paying 4% on the HELOC. We do have another $27K in non-registered stocks that could be cashed in if something came up, but since they could easily go down in value at anytime, I don't really count on it for that purpose.

Goals for 2011
1. My RRSP - $16,000 (by Feb 2012)
2. DH RRSP - $19,000 (by Feb 2012)
3. Window replacement $8,000 by August (totally guessing at cost for now)
4. RESPs - $3,000 by December
5. Drop debt by $17K (just with regular payments)

_________________
Kate


Last edited by Kate1 on Fri Dec 30, 2011 8:36 am, edited 1 time in total.

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 Post subject: Re: Debt free by October 2017
PostPosted: Fri Apr 01, 2011 5:43 pm 

Joined: Sat Feb 12, 2011 5:47 pm
Posts: 90
Location: Ontario, Canada
Goals for 2011 - first update
1. My RRSP - $1,000 / $16,000 (by Feb 2012)
2. DH RRSP - $1,200 / $19,000 (by Feb 2012)
3. Window replacement $0 / $8,000 by August (totally guessing at cost for now)
4. RESPs - $0 / $3,000 by December
5. Drop debt by $1,300 / $17,000 (just with regular payments)

Had to spend $1,100 unexpectedly to fly across the country, so that's $1,100 that would have gone to something else. At least I had the money and didn't have to take on debt for it.

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Kate


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 Post subject: Re: Debt free by October 2017
PostPosted: Tue Jun 21, 2011 6:37 pm 

Joined: Sat Feb 12, 2011 5:47 pm
Posts: 90
Location: Ontario, Canada
Goals for 2011 - second update
1. My RRSP - $3,500 / $16,000 (by Feb 2012)
2. DH RRSP - $4,800 / $19,000 (by Feb 2012)
3. Window replacement $0 / $8,000 by August (totally guessing at cost for now)
4. RESPs - $0 / $3,000 by December
5. Drop debt - $8,500 / $17,000 (just with regular payments)

Spent another $700 to fly across the country, at least I got a cheaper flight the second time. The first trip was when we thought my dad was about to die. He hung in for another month and a half. When I came home the first time, I said I wouldn't go back when the end did come. But when it came to it, I wanted to be with my mom and my sisters so I went. I don't begrudge the money spent and again I'm glad I had the money and didn't have to take on debt for it.

Another death in the family in driving distance added about $500 of unexpected costs for hotel and gas. April was rough month.

We've been spending more than we should be on various things. Not going further into debt, but not saving/paying off where we could be. It's really ridiculous the amount of money that goes in and out in a month. Guess I need to check in more often to keep myself on track.

I haven't looked into windows at all. We'll probably put it off a year.

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Kate


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 Post subject: Re: Debt free by October 2017
PostPosted: Wed Jun 22, 2011 5:19 am 

Joined: Sun Jan 17, 2010 2:32 pm
Posts: 6
I'm sorry for your losses. You've had such a difficult month. I think you have a very good attitude about the unexpected expenses.

I tend to spend more in times of stress like this, partly because I genuinely need more things (eg more cell phone minutes so I can talk things over with family and friends) and partly because I am trying to distract myself by doing expensive things (eg going out to dinner and buying new DVDs). If you tend to do this too, you might want to think about how you can curb it in yourself without feeling deprived.

Grief takes up a lot of head space. It can be hard to have the room for financial considerations as well.


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 Post subject: Re: Debt free by October 2017
PostPosted: Sat Nov 12, 2011 10:36 am 

Joined: Sat Feb 12, 2011 5:47 pm
Posts: 90
Location: Ontario, Canada
Goals for 2011 - update
1. My RRSP - $9,550 / $16,000 (by Feb 2012)
2. DH RRSP - $10,800 / $19,000 (by Feb 2012)
3. Window replacement $1,000 / $8,000 (will put off for a year)
4. RESPs - $1,500 / $3,000 by December
5. Drop debt - $13,500 / $17,000 (just with regular payments)

Still spending loads of disposable income, but also being responsible about the future.

We refinanced the mortgage and HELOC in August into one mortgage at a variable rate of prime - .5% so right now it is at 2.5%. We did a 10 year term, but have been making extra payments. If we continue with all the extra payments, we will be paid off in August 2016. It's a little tight so I'm not sure we'll be able to make extra payments every month, but I'd say we should have no problem being paid off by December 2016. The drop in interest rates helps.

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Kate


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 Post subject: Re: Debt free by October 2017
PostPosted: Sun Nov 13, 2011 5:56 am 

Joined: Mon Aug 08, 2011 9:13 pm
Posts: 182
Location: Brisbane, Australia
Congrats on getting the refinance.

You will need to change the title of the thread now :)


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 Post subject: Re: Debt free by October 2017 (now August 2016)
PostPosted: Fri Dec 30, 2011 9:01 am 

Joined: Sat Feb 12, 2011 5:47 pm
Posts: 90
Location: Ontario, Canada
Goals for 2011 - update
1. My RRSP - $10,550 / $16,000 (by Feb 2012)
2. DH RRSP - $13,200 / $19,000 (by Feb 2012)
3. Window replacement $1,000 / $8,000 (will put off for a year)
4. RESPs - $2,000 / $3,000 by December (decided to just do $2,000 this year)
5. Drop debt - $18,000 / $17,000 (just with regular payments)

Refinancing helped us get a little further ahead than planned on the mortgage. We had set up a payment based on a 10 year amortization but have been sending extra to have the payments equal those needed for a 5 year amortization. Now that we've been making those payments for 4 months I know we can handle it so I just sent the request to increase the payment to have it paid off fully by August 2016. That way I don't have to track anything separately.

We do pay deductions into our RRSPs but not for the full planned contribution. We leave some room because we both have the possibility of getting extra pay at the end of the year (overtime for me and profit sharing for DH) that we put into our RRSPs. DH won't be getting any this year, and I think I will carry over my overtime for the vacation we are taking in two weeks. We will use some other savings to get us to the max by the end of Feb though.

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Kate


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 Post subject: Re: Debt free by October 2017 (now August 2016)
PostPosted: Sat Feb 18, 2012 1:34 pm 

Joined: Sat Feb 12, 2011 5:47 pm
Posts: 90
Location: Ontario, Canada
Goals for 2011 - update
1. My RRSP - $14,500 / $16,000 (by Feb 2012)
2. DH RRSP - $19,000 / $19,000 (by Feb 2012)
3. Window replacement $1,000 / $8,000 (will put off for a year)
4. RESPs - $2,000 / $3,000 by December (decided to just do $2,000 this year)
5. Drop debt - $18,000 / $17,000 (just with regular payments)

I had my overtime paid out instead of carrying it over, but forgot to ask payroll to put it right into my RRSP which is what I normally do. Therefore, regular deductions were made and I don't have the extra cash flow to top up both our RRSPs all the way. The extra in mine was only to pay off the last of my HBP early, so there is no tax advantage to struggling to make this extra $1,500 payment now. I'll do it next year instead.

Generally I'm happy with where we got to. 2012 goals to come.

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Kate


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 Post subject: Re: Debt free by October 2017 (now August 2016)
PostPosted: Sat Feb 18, 2012 1:52 pm 

Joined: Sat Feb 12, 2011 5:47 pm
Posts: 90
Location: Ontario, Canada
2012 Goals - to be met by end of Dec. 2012 unless specified otherwise.

1. MY RRSP $12,000
2. My RRSP top up $3,000 Jan - Feb 2013
3. DH RRSP $14,400
4. DH RRSP top up $6,000 Jan - Feb 2013
5. RESP $2,000
6. Family vacation fund $3,500
7. Drop mortgage to $98,400 (decrease of $25,800)

Later in the year we will both hit the maximum deductions for CPP and IE so our net take home pay will go up then. I plan to take that extra and set it aside as the RRSP top up. That way, if we don't have bonus/overtime pay, we will have a pool of money to cover the top up. So goals 2 and 4 probably won't have any movement until August or so.

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Kate


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 Post subject: Re: Debt free by October 2017 (now August 2016)
PostPosted: Sun May 13, 2012 1:09 pm 

Joined: Sat Feb 12, 2011 5:47 pm
Posts: 90
Location: Ontario, Canada
Here's an update on our goals:

1. MY RRSP $2,500 / $12,000
2. My RRSP top up $0 / $3,000 Jan - Feb 2013
3. DH RRSP $3,600 / $14,400
4. DH RRSP top up $0 / $6,000 Jan - Feb 2013
5. RESP $0 / $2,000
6. Family vacation fund $2,000 / $3,500
7. Drop mortgage to $98,400 (decrease of $25,800) $8,8850 / $25,800

I'm happy with the progress so far. Mortgage balance is $115,352.

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Kate


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 Post subject: Re: Debt free by October 2017 (now August 2016)
PostPosted: Tue Jul 24, 2012 5:12 am 

Joined: Sat Feb 12, 2011 5:47 pm
Posts: 90
Location: Ontario, Canada
Here's an update on our goals. We decided to get the windows done this year so I reallocated what I had in our emergency fund and family vacation fund. The work will be done in a month, but it is so reassuring to have the money ready and waiting. I do still have $2,500 in an emergency fund, but I want to work on getting that up to $10,000.

1. MY RRSP $5,000 / $12,000
2. My RRSP top up $0 / $3,000 Jan - Feb 2013
3. DH RRSP $6,000 / $14,400
4. DH RRSP top up $0 / $6,000 Jan - Feb 2013
5. RESP $600 / $2,000
6. Family vacation fund $0 / $3,500
7. Drop mortgage to $98,400 (decrease of $25,800) $13,830 / $25,800
8. Windows $8,700 / $8,700
9. Emergency fund $2,500 / $10,000 (not expecting to complete in the year)

I'm happy with the progress so far. Mortgage balance is $110,394.

_________________
Kate


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