Updates and plans

My last post was made January 22, in Thoughts on how to move forward I talked about a long of things. Personal, health, work, about shifting the focus of my financial planning from just getting my shit together to planning for a different future. I thought I had written here after but… figments of the imagination can be pretty realistic I suppose. 🙂 So here’s an update!

Early retirement is on my mind a lot. I suppose this has always been the goal, it has always been what got me started on this path, what got me to fix my mess, get out of debt and save, it is what makes me live like no one else now so that my tomorrow can be different.

I’ve made quite a lot of progress recently. Healthwise I feel amazing, after enlisting the assistance of a naturopathic doctor and finding more like minded people. Through getting back into my workouts and finally, seriously addressing my diet I simply feel amazing. I have not felt this full of life in a very very long time. I’m no longer afraid, I’ve also developed a healthy dose of scepticism toward the medical doctor I have dealt with this past year, but that is perhaps a post for another day. 🙂

Financially I am doing well, I am doing better than I ever expected. I achieved a $100k networth on October 1, 2017. And now, only 6 months later can celebrate;

Which is pretty darn incredible. I guess the snowballing thing just continues once you pay off debt! My goal for 2018 is to achieve a $175,000 networth. My RRSP contribution room for 2018 is $16,528.  So i’ll be using that to reduce my taxable income. There’s been some updates too in the job department, but I’ll leave that for another post.

To get from $135k to $175 is kind of a leap, I mean 40k in one year? I was even considering trying for $185k but lets not set unattainable goals ;). I don’t have a gargantuan income but living simply does allow me to save a lot. This year I will also earn more than last year, which is fantastic, I intend to save it all.

$250k is the magic number for me, its my freedom number, it’s the number at which I will be barista-FI. Financially independent enough to be able to survive on any basic part-time job and live according to my needs and wants.  (assuming, as a single person, not as a couple). I suppose it’s still quite a bit away, it’s a big enough number. So here she goes, a $40k addition to my NW by the end of 2018. Can I beat it?

A year on Lending Loop!

I am rewriting this post because I already wrote it and it disappeared into the bowels of the internets. So. 🙂

I opened an account with Lending Loop in December 2016 and made my first deposit on December 28th. 

I LOVE the idea of Lending Loop and so far I LOVE the execution of Lending Loop. As a past and current small business owner I know how hard it can be to obtain reasonably priced financing through conventional methods and fully understand that there is a market for P2P lending. Do I believe that debt is a necessity? No, is it useful? Yes.

Consequently I’ve made investments  in a variety of businesses, from $25 up to $325 depending on the risk band and company information provided and scoured off the internet. Most of the loans are in between those two numbers.

I earned $91.64 with Lending Loop this year and made deposits to a total of $2,936.33 and investments throughout the year. If you translate this in hours I spent on reading and learning and thinking about the whole thing… that’s definitely less than minimum wage but as I invest more that will go up. 🙂

The majority; 41% of my investments are A’s, 35% B/B+ and the remainder divided between C (more heavily) and D, the least. I do not intend to make any further investments in D-rated loans or riskier. It’s not my style, I’m uncomfortable with it and so here we are. I aim to keep my gross yield hovering around 10%, which after somewhere around 25% tax should net, haha obviously… 7.5%, not accounting for any delinquencies of which there were none this year! I do expect to get stuck with some next year.

I intend to deposit a further $2,000 to lending loop next week and will invest it gradually through the year as I have this year.

I’m very excited about it!

Goals and budget for 2017

Goals, shmoals. Didn’t set any this year because life was just chaos. I moved three times this year! I sold my house! I didn’t write about it because it felt so surreal for a while. It was about 6 weeks to close the deal, I moved. Yadda yadda, I’m alive, hey! Lets start with income;

My main job’s contract was renewed until December 2017, there will not be a pay increase which kinda sucks but I expect my net income to reliable be $24,352.44 for the year, which breaks down to $2,029.37/month (26 pays divided by 12).

Life has become a lot easier now that I am renting a one-bedroom apartment and no longer have to worry about paying the mortgage, electric expenses, renovation expenses and all the other “hassle” that comes with owning a house are all over with for now. No snowremoval to worry about… I just pay rent and that’s it! My rent includes internet and heat/electric so it’s just one nice round-ish number. It’s a nice change after 8 years of going at it alone trying to fix up an old house. I would NOT buy a house again by myself so for now I’m just saving for the future. 🙂 *o*

I’m setting goals right now for 2017. I started with doing a new monthly budget, things always vary but it helps to plan ahead and I’ll set up my monthly savings contributions accordingly.

My monthly anticipated expenses:

Rent: 450.00
Groceries: $175.00
Life insurance: $11.61
Clothing/misc: $40.00
gifts: $20.00
Blow money: $100.00
Health/Medical: $40.00
Car ins: $37.84
Copper (food/toys): $50.00

Total: $924.45 pre-savings (under 1,000, ha!)
Most of my other car expenses are deductible so I don’t count them in my personal budget. I have NO extra health insurance besides the basic provincial healthcare. I have NO disability insurance etc.

Left for savings transfers $1,104.92 = 54% of my net income! 🙂
I have completely ignored any travel expenses as all my travel is financed by a cottage cleaning job I have been taking on every summer for the past few years. It pays for every penny I spend on travel and that’s essentially why I do it! Out of my normal pay I’ll be budgeting my goals. I do have another third stream of income through renting out tourism properties for owners, which earns me another couple of thousand per year. I usually allocate this money to wherever it’s needed. This year I’ll plan to throw it completely at my vehicle savings, though I won’t count it here.

Total amount of regular income to be distributed: $13,259.04

RSP/TFSA: $448.14/month. $5,377.68 for the year.

House: $156.78/month
I set the goal for the year at $1881.28. I have some savings set aside for a future house and would like to round off the number by the end of the year!

Vehicle: $500/month will set me at $7,209.16 at December 2017 excluding any interest bits. This is only 60% of the $12,000 minimum I want/need to purchase a new vehicle. Assuming I’ll earn $2,000 with my seasonal job I’ll be at $9,209. I hope to make up the shortfall here by finding part-time employment, $2,800 in extra work shouldn’t be that hard to find… right? Categories where I may be able to scrimp are groceries, blow money and clothing. This will vary month to month.

As you can see, continuing to save for a future home and replacing my vehicle is still quite difficult on my income. I’m not really sure how I should handle this. Ideally I’ll be able to find supplemental income, which, since I won’t need it to live off, can be used entirely to siphon into my RSP’s/investments.

I set up the new goals in the widget bar on the side, let’s see how it goes!