New Debt-Free Savings Plan

Next weekend, I will officially be out of debt.

After I get extremely drunk off of (free) wine and most likely start crying of joy, I have the rest of my life ahead of me. I’m sure the debt hangover will last a couple of weeks, so I’ve been trying to figure out how I’m going to split my money for the next couple of years. The numbers above were without interest, but I figured it wouldn’t matter since interest rates are abysmal, and it’s only for the first 3 years anyway.

Of course there will be times where I won’t be able to save this much, and it’s also possible that I’d get a raise within the next 3 years, in which case I’ll add the extra into my savings. It’s very likely that the numbers won’t  match these on August 1st, 2015. But, my rock bottom goal that there’s no way I won’t hit is a net worth of at least $15000 by 24. If I can do that, awesome. If I can do better, fantastic.

What do you guys think?


11 responses to “New Debt-Free Savings Plan

  1. This is amazing. I wish I had done the same thing, after paying off my credit card! But I guess I still have debt. Anyway, looks good! But you’re saving $100/month more this year than any other. Don’t count on raises in the future but where’s that $100 going 😉

  2. Looks like you have a nice plan. Personally I would save more aggressively for retirement, but you have to do what makes you feel comfortable. To add on to what Cait said, take any raise you get and save it to avoid lifestyle inflation, you won’t even miss the money that way!

    • Yes, I’m thinking that in year 4 I’ll split the numbers more evenly between retirement and a down payment. I didn’t want to get too far ahead of myself though. I’ll probably roll any tax refunds and government checks right into an RRSP as well- every little bit counts right?

  3. Yeah I would say fill your emergency fund bucket, then save more aggressively in a high-intereste account for retirement. But I probably shouldn’t be the one giving financial advice. 🙂 You seem to be doing great!

  4. Congrats! You’re almost there! I would definitely contribute towards retirement after you build up that e-fund.

  5. Wow, congrats on being so close to your debt free date! I think your plan to split more evenly between retirement and the down payment fund is a really good idea.

  6. OMG, I truly admire your determination! You’re most definitely on the way to achieving your financial goals, Meghan.

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