Excited but need some clarification...
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Excited but need some clarification...
| Fri, 01-08-2010 - 7:00pm |
Whew...
After three long months I have been able to put together a budget with a paycheque that varies month to month for various reasons...
I found the budget process very difficult and I was conflicted when I did it.


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Hi Duke,
Congrats on figuring out your budget. I am still struggling with that a bit, even though I have my consumer credit paid off, and will soon have my car paid off.
So, your question if 10 years is a reasonable amount of time to pay off your debt, including your mortgage. The first thing I would say is that if you are comfortable with this, then I would tend to say yes. However, I would challenge you to ask yourself some questions.
1. How old are you? Does your 10 year plan allow you to have your mortgage paid off before you retire.
2. Have you considered how much money you are loosing in interest by taking so long to pay off your consumer debt, and if so, are you comfortable with that? If not, you may need to reconsider.
3. Do you think these are numbers you should run by a financial planner?
I so glad you have finally come to some conclusion on a budget.
Norma
"Patience is the best remedy for every trouble"- Plautus
Thank you so much for your response...
Those are really good questions...
I am 39 so my debt and mortgage will be paid off by 49. (I plan to retire at 57.)
I know those darn interest payments. Thank goodness my interest rates are low (1.9% - 11.5%) and I'm planning to transfer to a home equity line of credit at some point this year (can get it for 3.25%)
First of all CONGRADS on making an attempt at a budget!
Thank you so much for your response...
You have always been so kind to me...
With regards to mortgage ...in Canada we do not get a tax break on mortgage interest like you do in the States...so I'm good in paying it off in ten years to coincide with my consumer debt load....
Duke
Hi Marie... We are on the board at the same time...
You've given me food for thought...I just feel I need to save aggressively now because I'm pretty darned determined to retire at 57 ( Small townWest Coast Canada in a condo six months and I hope to buy a small manufactured home in Northern New Mexico for another six months)
Yes this city boy has plans for small town living in Coastal Western
Okay Duke, you finally got me to post again :)
Where in Northern New Mexico are you planning to come when you retire? It looks like we have the same "schedule" for our retirements planned...but I am already in a small town in Northern New Mexico :)
It really is great here, just wondering where "here" you are shooting for!
I would like to be within half an hour drive of Santa Fe so I can enjoy all the arts there...
I love northern New Mexico and am excited to think about spending 6 mos. a year there....
How long have you lived there, what do you love about it and are there any difficulties living there?
Thanks for responding...
Duke
57 huh? Nice.
A goal is a goal is a goal. The fact that you have a goal with a time line is half the battle.
However, there is a little thing called "debt fatigue" that gets to a lot of people. That is why paying down your debts in 3 years is recommended. You get tired of paying off debt. I have been doing it for 2 and a half years and I am very, very, very, very, very tired of it. If I had to do it for 10 years....I don't think I could handle it. Perhaps I feel this way because it stands in the way of some of my other goals. This is not the case for you as you are on track for your other goals.
But you can do it however you want to. The beauty is you can change your plan at any time. If you decide you are getting tired of the debt you can speed it up.
Just my two cents.
Thanks for that Karen-
I'm glad you reminded me that I'm not married to this plan (marriage...eeks..no way...lol) and that I can change this plan at no time.
Debt fatigue...gosh I don't know...I've tried crunching all the numbers so many times and three years would mean i would live verrrry poorly and I'm just not interested in that in my life at this time...
Again ty,
Duke
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