One Month Down, Thirty-Five To Go

I know that technically January does not end until Sunday night, but this is my last blog entry for this month. 

My plan to become totally debt free is underway and it will take three years to complete (hence the thirty-six months). 

I have said it before and it is still true that you dream for the future, plan for the mid-term, and work the now. So, I plan to work this plan, but life has thrown me a curve ball before and it will do so again. 

With that in mind I will work this plan and adjust my plan as things come at me. As always, I will adapt and change to meet and beat whatever challenges comes my way. 

As well, I will not be so blindly committed to a plan as to not take advantage of an opportunity which may cross my path. 

Having said all that, as it stands now . . . On month down, thirty-five to go to total debt freedom.

Progress

Okay, so for one thing, I am happy to report that my fridge does still work, it just needs to run when it is above freezing outside. 

It is a bit of a quirk, but what it means for me is that I need to watch the weather. When it is a warm day, run the fridge, when it is a below zero day, leave the freezer door open.  

Ah the things I have to do just to keep my frozen food frozen. Thanks to the warm weather we are having I was able to run the freezer and refreeze my food . . . yay.

As far as the financial planning goes, I was able to find a “high interest” savings account in the world of that stock trading account that I have access  to. 

It functions like an actual savings account with safe and secure principle and a modest interest rate. 

I may diversify down the road as with financial planning, if you are not making at least the inflation rate, you are losing money. 

For now, it will do and more specifically it is just right for the “Long Term Savings” which I will start using in May, once my Contingency Fund (Mid-Tern Savings) is topped up. 

All in all, things are looking up, so there is that. After all, for the last few nights I was actually able to lock my door without fear that it would be frozen shut by morning.

Meeting the Banker Again

Tonight, after work I meet the banker where I will rectify the situation concerning my RRSP and TFSA. They say that they have some ideas as to what products are best suited for me. We shall see what happens, and as always I will keep you posted. 

I am enjoying the few days of relative warmth, we should see a few days of above zero weather and that is a nice change. I will be trying to see if my fridge will work, as I do hope to refreeze my frozen dinners. 

I do look to the seasonal warmup with great anticipation, but I am doing fine with the weather that we have had as of late. I am not complaining, grumbling a bit, perhaps, but not complaining. 

Debt Free Strategy

I have been thinking this weekend on the best and most strategic way to get debt free. 

I first thought that I would use an extension of my snowball method. That is, pay the truck off first (12 months) and then focus on the trailer (18 Months). 

Since I have decided that I will build up and maintain that contingency fund first (4 months) that pushes this whole plan to a total of 34 months. 

This timeframe got me thinking, since there is only three years (36 Months) left on the truck anyways, why not focus on the trailer and then on long term Savings after that, all while letting the truck loan run its course.

Here is a chart to compare the two options before me. These months include this month (January).

Option A		Option B
Phase Name	Months	Phase Name	Months
Congingency	4	Congingency	4
Truck	12	Trailer	24
Trailer	18	Savings ($12,000)	8
Savings ($4000.00)	2
Total Months	36	Total Months	36

As you can see, Option B makes the most sense, and certainly so financially. It just goes to show that you don’t always have to pay debts off fast and early. In this case, letting the truck loan run its course makes the most sense.

Squeaking Out of January

It is payday so that means that it is time to do my budget for payday. To put it succinctly, this month could have gone better, financially. It could have gone worse mind you, but it could have gone better. 

I will get out of January with my savings plan intact, and yes my credit cards are still maintained at a zero balance, but my persona overdraft has been cleaned out. 

The main culprit was my camping trips this month, I booked three of them. One was the impromptu one I took last weekend to Banff. Then I booked the spot for The Feb long weekend. Finally I had to book the May Long Weekend now in order to get any spot at all. 

I will be fine, I will get through this, and I will build up my overdraft again. The important thing to note is that I am in my own overdraft and not the bank’s. 

It is important to look at the victories and the positives in all this, and just keep moving forward.

Writing Dry Spell

For reasons that I can’t explain, I am in a bit of a dry spot when it comes to my writing. I just seem to have temporarily lost the gumption to sit down and write. I have a few projects to work on, I have ideas there to write, but to sit down and write them just seems pointless.

I will get over this, I will get on with it and write my ideas and sure enough finish book two. It just seems silly to be writing if nothing comes of the works that I have already written (enter literary agent and/or publisher).

Self-publishing is out as you need to fund it yourself and also promote it too, I simply can’t promote anything worth beans.  

This is just a bit of the winter doldrums as I simply loath the cold, I can take it, I can do it, but I don’t have to like it. 

Well, That Sucked

Okay, I had intended to sit down and learn investing last night after work. I was too mentally drained from the busy day to be able to focus on that, so I pushed it off till morning. 

This morning I got up and took a stab at it . . . I was left frustrated and disappointed. It was a complicated interface and the only options open to me were: stocks, bonds and mutual funds. None of which I wanted to invest in at this moment. 

I tried to find something simple and safe, like a 30 Day GIC that I could just add a bit to as I rolled it over each month . . . nope. Even figuring out how to buy anything was not there, so even if I saw a bond that seemed not too hideous, I couldn’t do that.

I really have neither the patience nor the extra cash to play in the markets. I just want something simple and safe. With all returns so stupidly low, there is no point to really shop around when the rates are below 1%.

I have already sent an email to the bank stating that I want to reverse this and close these accounts. I still want the RRSP and the TFSA, but in a more (alleged) “High Interest” Savings Account style. 

For me, the RRSP is just something thrust on me that I see no purpose in. Perhaps if I had started years ago, it might interest me. Right now it is a trash can into which I have been guilted to throwing money into. Once it goes in, it ain’t yours anymore. Maybe when you turn 65 you can get a bit of it back, maybe.

I am looking to just save up cash until I decide to pay off loans. That’s it, keep the money safe until I can use it thanks.