Life After Debt

It’s been just over a week since my last debt payment. The picture above is actually how I kept track of my debt repayment- it was SO satisfying to see that number go down. I am excited to be able to start working on some other goals and to actually keep ALL the money I make.

I need to realign my goals and values with my spending to create a healthy and happy financial life for myself!

These are the ideas and goals that I have come up with so far, I am definitely going to go deeper and work more on my goals and values in the upcoming weeks, as I will have more time once my exam is over.

These are my main goals that I will be working on next:

1. Open RRSP

2. Savings Goals/Open different accounts for each

3. Insurance Policy- Get one!

4. Find another credit card to replace the old one

5. Set up a new budget

6. Live on last month’s income

7. Re-orient life/career goals

8. Live frugally- align spending with goals; explore minimalism

How do you guys deal with big changes in your budget? Be it debt repayment or taking on debt, or a large purchase, or an emergency? Let me know any tips you have!

-R.

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8 thoughts on “Life After Debt

  1. About 3 years ago, my wife and I took a combined 40% pay-cut. Overnight, we went from being quite comfortable, to having to reduce our on-going expenses significantly. Especially since we made a conscious decision to remain in our current home. I literally went through every reoccurring bill and contacted the vendor seeking discounts or reduction in service. I also approached my bank for mortgage refinancing options. My efforts resulted in hundreds of dollars of savings each month, without simply pushing debt due dates further out.

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    1. It’s really great that you and your wife managed to stay afloat- actually better- with the big pay cut. Was the pay cut a surprise? Or was it decided upon in order to change jobs? Just curious! Thanks for the comment ! 🙂

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      1. My wife’s pay cut was planned, but mine was not. Mine was a larger piece of the pie so it was quite painful (financially speaking) for a long while. In hindsight, me having been let go was the best thing that could have happened. My work environment was severely toxic, and it was beginning to take its toll on my health.

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  2. As I’ve worked on developing frugal habits, exploring minimalism has naturally come into the picture. Minimalism and being frugal seem to be aligned in many ways. Being happier with less. I went through EVERYTHING in my house and got rid of a ton of stuff and am feeling a lot less stressed. Less to clean around, maintain, pick up after the cat knocks it over…etc. Without excess clutter you can really appreciate the things you value most.

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  3. Going through all my things is something I plan to do ASAP. Sometimes realizing all the things you have deters you from buying more, because you actually remember that you have something similar. 🙂 I really hope I can become more…value-based…not quite sure how to put that. I know I have SO much stuff, but for some reason I keep buying more. 😦

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  4. I find that best strategy is to live well below your means. This of course is not always easy, especially if you do not make a large income. However, if you can save a major chunk of your income, you will just become accustomed to living on this reduced income. If you have these savings pulled from your account each paycheque you won’t have the chance to get “used” to the money being there!

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    1. Great advice! I have set up one automatic transfer at the beginning of the month but I think I need to set up one more, so that each time I get paid something is coming out of it.

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