DINKS on track so far

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Kate1
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Location: Ontario, Canada
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Re: DINKS on track so far

Postby Kate1 » Sun Mar 11, 2012 2:25 pm

The mortgage is dropping nicely even with the travel. Well done!
Kate

kombat
Posts: 1979
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Location: Ottawa, Canada
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Re: DINKS on track so far

Postby kombat » Fri Dec 07, 2012 10:12 pm

It's been a while, so here's an update:

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Assets

$ 10,231 Cash savings
$ 141,000 RRSPs (Canadian 401(k)'s)
$  1,900 TFSAs (Canadian Roth IRAs)
$ 14,500 Emergency fund (Target: $12,500)
$  5,500 Car replacement fund
$  4,500 Travel fund
$ 500,000 Home value
$ 80,000 Land banking investment

Liabilities

$ 261,000 Mortgage
$   0 Line of credit
$   0 Credit card debt
$   0 Student loan debt
$   0 Car loan(s)

----------------------
$ 496,631 NET WORTH


We're a little behind schedule, because we've repurposed some of the extra mortgage payments toward general expenses. I won't get into it here, but overall, I believe they were worthwhile expenditures, and I'm comfortable with where we are in the overall plan for paying off the mortgage early.

Rachel
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Re: DINKS on track so far

Postby Rachel » Sun Dec 16, 2012 7:03 pm

Congrats on the continuous mortgage repayment! Any more news on selling the land?

kombat
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Location: Ottawa, Canada
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Re: DINKS on track so far

Postby kombat » Tue Dec 03, 2013 5:22 pm

I don't mean to let so much time pass between updates to this thread, but I suppose occasional updates are better than no updates at all. :)

We've continued to try and pound away at the mortgage. We're hoping to finally get some money back from the ill-advised land banking investment in 2014. If we break even, I'll be ecstatic. Our emergency fund could use a little more beefing up, but I'm OK with it where it is for now. The travel fund is getting a little out of hand, it might be time to repurpose some of that money toward replacing the car (which is approaching 300,000 km). Steady as she goes, I guess. We're both 38 years old.

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Assets

$5,000 Cash savings
$181,500 RRSPs (Canadian 401(k)'s)
$5,870 TFSAs (Canadian Roth IRAs)
$10,780 Emergency fund
$9,100 Car replacement fund
$10,140 Travel fund
$500,000 Home value
$80,000 Land banking investment

Liabilities

$236,000 Mortgage

----------------------
$566,390 NET WORTH

kombat
Posts: 1979
Joined: Tue Mar 11, 2008 12:19 pm
Location: Ottawa, Canada
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Re: DINKS on track so far

Postby kombat » Wed Sep 10, 2014 5:09 am

I really admire folks with the discipline to update their journals monthly. :) I tend to wait until there's enough worth reporting before considering posting an update.

2014 has been an expensive year for my wife and I. In the spring, we flew out west twice to visit siblings, then bought a used car, which set us back $14,500. We paid cash though, so no debt. Then in July, we flew out east for a week to visit our families, then immediately followed that up with a quick 3-day trip to Las Vegas with some friends. All paid for with cash, but it's completely drained our Travel fund. We've got 2 big trips planned for next year (Jamaica for my best friend's wedding, and Hawaii with my parents and brother), so we're going to have to beef that fund back up in a hurry.

Then life threw us a curveball a couple of weeks ago when our 13-year old central air conditioner leaked all its freon. They said they could replace the coil for $1,300, but the unit itself (and furnace) were nearing their life expectancy and it would likely only buy us a couple more years. So we replaced the whole system, which set us back $9,000. Again, we had the cash, but that money was supposed to be going toward accelerating paying down the mortgage.

As a result, we haven't been able to pay much extra on the mortgage in the past few months. Our net worth has still crept upwards slowly and steadily, but not as quickly as I would have liked.

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Assets

$5,000 Cash savings
$214,000 RRSPs (Canadian 401(k)'s)
$8,000 TFSAs (Canadian Roth IRAs)
$12,000 Emergency fund
$1,400 Car replacement fund
$0 Travel fund
$500,000 Home value
$80,000 Land banking investment

Liabilities

$220,000 Mortgage

----------------------
$600,400 NET WORTH

fiddlefaddle
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Re: DINKS on track so far

Postby fiddlefaddle » Thu Sep 25, 2014 7:24 am

Looks like you're making nice progress. Question: how do you decide how much to spend on travel? Do you put a certain amount in an account regularly, or decide on where you want to go and then save up? Just curious...

kombat
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Re: DINKS on track so far

Postby kombat » Thu Sep 25, 2014 7:30 am

Good question! We save a set amount ($700) every month earmarked for "Travel," and we make our plans around that budget. We may have to increase that amount however, as we have some expensive travel coming up next year (best friend getting married in Jamaica, my sister getting married out east, and a long-planned trip to Hawaii with my parents and sibling).

Likewise, we set aside $450/month for "Car Replacement," and whenever our car dies and we need to replace it, our maximum budget will be however much we've managed to accumulate in that "Car Fund" by that time.

kombat
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Location: Ottawa, Canada
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Re: DINKS on track so far

Postby kombat » Wed Jan 14, 2015 5:48 am

I guess it's time for another update. As I mentioned 2014 was an expensive year for us, but we did have a few things go in our favour. Several years ago, when we were young and naïve, we got involved in a charitable donation scheme to reduce our taxes. We got audited, the donations were denied (for tax purposes), and we had to pay taxes, penalties, and interest. Well there was a lawsuit that's dragged on, and in 2014, the CRA (Canada's IRS) extended a settlement offer to the people involved. Long story short, we took the deal and got back the interest and penalties we paid back then, which amounted to a little under $7,000. I put the entire amount against the mortgage.

In addition, despite the economic turmoil, our investments have continued to grow steadily. Here's how the numbers shook out at the beginning of January:

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Assets

$3,500 Cash savings
$223,500 RRSPs (Canadian 401(k)'s)
$7,300 TFSAs (Canadian Roth IRAs)
$13,000 Wife's DCPP
$11,000 Emergency fund
$2,700 Car replacement fund
$2,650 Travel fund
$500,000 Home value
$77,000 Land banking investment

Liabilities

$207,000 Mortgage
$1,000 VISA

----------------------
$632,650 NET WORTH


The $1,000 on the Visa is my wife's, she bought a couple more expensive items for Christmas. It gets paid off every month, but it was significant enough that I felt it appropriate to include it in the summary.

I also decided to use a more conservative value for the Land Banking investment (I'd been rounding up in the past), and I'm now including my wife's employer-sponsored deferred compensation pension plan (DCPP). It's basically a defined-contribution pension plan that both she and her employer contribute to.

kombat
Posts: 1979
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Location: Ottawa, Canada
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Re: DINKS on track so far

Postby kombat » Wed Sep 09, 2015 2:12 pm

Once again, I've let far too much time pass. Not a lot's been happening, we've chipped a way at the mortgage a little extra, but much of our money's been going towards travel. We went to Jamaica in April for my best friend's wedding, we traveled home in the summer for my sister's wedding, and we had already planned a 2 week trip to Hawaii for this November. So we've been dipping into the car fund and even a little into the emergency fund to keep from having to liquidate any sheltered funds or (even worse) borrow money.

Our investments did quite well for the first part of the year, then gave back much of the gains in the past couple of months. Still, we're considerably ahead, and slowly making our way towards 7 figures, even if it's not as quickly as I would have liked.

The other complication is we're going to need a new roof next year ($8,000), and it's very likely that one of my cars is going to die and my wife is quite insistent on a rather expensive replacement (small SUV, probably $20 - $25k, but still will be a challenge to pay cash on top of the Hawaii trip this year, and, oh yeah, a $12,000 European River cruise next year with her family).

I just turned 40 this summer.

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Assets

$6,900 Cash savings
$244,280 RRSPs (Canadian 401(k)'s)
$8,200 TFSAs (Canadian Roth IRAs)
$16,600 Wife's DCPP
$10,200 Emergency fund
$1,600 Car replacement fund
$3,400 Travel fund
$500,000 Home value
$77,000 Land banking investment

Liabilities

$194,000 Mortgage

----------------------
$674,180 NET WORTH


One mitigating factor is that now that I'm in a full-time position with the government, I'm entitled to a pretty generous defined-benefit pension plan that is relieving a lot of the stress of retirement saving/planning.

See you in 6 months for another update! :) (kidding, hopefully it won't be that long).

LMoot
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Re: DINKS on track so far

Postby LMoot » Wed Sep 09, 2015 5:59 pm

Wow, you're moving right a long. Really good for 40 (which is still young). Looking at your varied investments *almost* makes me want to dip my toe into other forms of investing. Clearly it's been working out for you. Will you be contributing the same amount to retirement now with the pension in the works?

kombat
Posts: 1979
Joined: Tue Mar 11, 2008 12:19 pm
Location: Ottawa, Canada
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Re: DINKS on track so far

Postby kombat » Wed Sep 09, 2015 6:39 pm

The plan was to throw our extra cash (about $2,600/month) at the mortgage to pay it off quickly, then take that money, along with the old mortgage payment, and "catch up" our retirement investing. Unfortunately, that extra monthly "buffer" has gone to travel, replacing furnaces and air conditioners, used cars, and soon a new roof, so not as much of it has been going into the mortgage as I would have liked. :(

geoff_tewierik
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Re: DINKS on track so far

Postby geoff_tewierik » Wed Sep 09, 2015 11:10 pm

That extra $2600/month will soon not be being spent on "other" things and it'll get into the mortgage soon :)

kombat
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Location: Ottawa, Canada
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Re: DINKS on track so far

Postby kombat » Wed Dec 02, 2015 5:59 am

It's getting close to the end of the year, so I figured another update was in order.

A lot has happened in the past couple months. Since my September update, our net worth has only crept up by about $15,000. There are several reasons for that.

Home Repair - Our house is 15 years old, and the roof needed replacing. Cost: $8,800. We had the money for it, but it was earmarked for our big Viking River Cruise we'd been planning for next year.

Vacation in Hawaii - This was mostly all already paid for, and we did it pretty cheaply (flew on points, stayed in VRBO's and split the cost with 4 other family members), but there were still some incidental costs and other costs that we couldn't pay until after the trip (i.e., the cost of the rental vehicles was split among the 3 couples, but the amount couldn't have been known until after the trip). So there's some residual charges on our Visas from that.

Next year's vacation - My wife has been planning a Viking River Cruise for a couple of years now. This will be our last big trip for a couple of years. She actually got a great deal on it (2-for-1), but the balance needs to be paid by the end of this year. That's $11,500. We had the money, but the roof repair took it. Which leads me to ...

Mortgage Refinance - Our mortgage was up for renewal next July, but I had a feeling rates would be creeping up before then, and didn't want to wait. So we did an early renewal to lock in a great rate (2.64% fixed for 5 years). Since we were refinancing anyway, we took the $11,500 for the river cruise out. We plan to put it back over the next 12 months using the regular monthly amount we set aside for "Travel." However, refinancing the mortgage incurred several other costs, such as the penalty for breaking it early ($2,000), lawyer fees ($1,000), and a few hundred dollars in other miscellaneous fees like admin fees, wire transfer fees, and so on. Since we got such a great rate, I also decided to do something I would normally never advocate: I took out some money to invest it. We decided to max out our TFSAs (Canadian version of a Roth IRA, but better). We'd accumulated quite a bit of room, so this amounted to about $64,000. Nevertheless, I'm pretty confident the money will earn more than the 2.64% it's costing us.

So that's why the mortgage had a growth spurt. But our TFSAs had a big growth spurt too. $11,500 of the "Car/Travel/Slush Fund" will be gone by the end of the month, as my wife pays for next year's River Cruise. The credit cards will also be paid off this month, as we usually do.

So here's where we stand at the moment:

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Assets

$1,000 Cash savings
$264,680 RRSPs (Canadian 401(k)'s)
$73,000 TFSAs (Canadian Roth IRAs)
$18,500 Wife's DCPP
$10,500 Emergency fund
$17,000 Car/Travel/Slush fund
$500,000 Home value
$77,000 Land banking investment

Liabilities

$270,000 Mortgage
$1,200 Credit cards

----------------------
$690,480 NET WORTH

avocado
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Re: DINKS on track so far

Postby avocado » Wed Dec 02, 2015 11:03 am

$15K in 2 months is 2.2% per year, or 14% annualized. That's pretty good!


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