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 Post subject: Northern light see the light
PostPosted: Mon Nov 19, 2012 5:02 am 

Joined: Sat Jun 16, 2012 2:11 am
Posts: 192
Working as a salesman for five yars after high school and then study at university and get (two) kids at the same time has been... Hard. But after 5-6 years of studies and parental leave (with twins) for both me and the mrs I have, after about 1½ years of really hard work, payed down $4.500 CC debt, $3.000 debt to dad and a friend - and at the end of this month I will pay the last $890 on the car. I do still have a (government) student loan of about $38.300, but with the interest rate at 2,1% and a minimum monthly cost of $145 I will not pay this one faster than I need (next 20 years or so). The interest rate is a three year average of the governments cost of financing it, set every year so it will keep very, very low for a long time. The rent of our home, including parking, is about 16% of household income, food is about 14% and income is set to rise substantially the upcoming years. On top of that a "children grant" of $330 per month. In our monthly budget we have 20-30% free space to save or have fun with. Our total emergency fund passed $11.000 last month. My public pension, company pension and (small) private pension savings is about $84.500 (I am in my early 30:s). Mrs about the same on pension. For us, health care and university is free and some income protection if we get sick or unemployed so no big need for massive savings towards that.

It feels like I turned a page, or started over. I am where I want to be. The backpack is off!

We are thinking of buying a boat this spring. Yes, in cash.


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 Post subject: Re: Northern light see the light
PostPosted: Mon Nov 19, 2012 5:49 am 

Joined: Sat Jun 16, 2012 2:11 am
Posts: 192
PS. My best savings account (government guaranteed deposits) gives me 2,275% net interest, compared to the 2,1% net interest payed on student loan - so the choise of not paying it faster is really simple. In the longer perspective I intend to start saving towards retirement through a fixed taxation account, where cheap equity index funds or stocks seems like a decent choise. Taxed money in (no upper limit), low tax (0,49% now) running up to retirement - and then tax free withdrawal (at any time by the way) DS.


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