Layout:
Home > Debt-Free !!!!!!!!!

Debt-Free !!!!!!!!!

April 28th, 2010 at 12:56 pm

Took money from my Cash Savings, went into my Bank and paid off my Personal Loan - the last debt I have - I don't owe anybody anything - well apart from monthly payments like mobile phone and Internet but they're not really debt in that I can cancel if I wish.

So... yes... DEBT FREE !!!!!!!!

Note: I am not a home-owner so I don't have a mortgage. I am happily renting a room. I don't WANT to buy a house - in that it's not something that I feel will make me happy, excite me etc etc. Also I'm not 100% certain where I will be living in the next 3, 4 or 5 years and I really cherish my independence and freedom.

So my salary is totally mine at last. My effort is mine.

My Debt-Free Budget looks as follows:

32% into secure Cash Savings (Target 50,000).
10% into Retirement Account for the tax relief.
8% into Shares of my Employer (don't pay Income Tax).

50% - everything else - rent, bills, food, holidays, buying anything and everything. I'm going to put any overtime or any other money that comes my way into this "Spending" side of the budget so that I can treat myself from time to time. Life is for living right ? :-)

But of my basic Work Salary, 50% is to Savings of some sort and 50% is to Spending which I'm pretty happy with as a Single person on an average industrial income.

I feel like I've arrived at the Start Line of the Marathon as opposed to having finished at - as Financial Independence is still a long way away - but at least I'm heading in the right direction !! :-)

12 Responses to “Debt-Free !!!!!!!!!”

  1. Joan.of.the.Arch Says:
    1272459871

    You are a rare bird to save 50% of your income. I wonder where you will be in 10 years if you stay on this path.

  2. creditcardfree Says:
    1272460113

    Yipee!! Congratulations! You have done a fabulous job.

  3. ambitioussaver Says:
    1272460208

    Congratulations! That is wonderful!

  4. monkeymama Says:
    1272460969

    Congrats!!!

  5. Ima saver Says:
    1272463042

    That is great!

  6. Analise Says:
    1272470984

    Commendable effort! I like your plan to save a healthy amount, but also to use some $$ to enjoy life. It's important to have balance... some for now, some for later.

  7. ceejay74 Says:
    1272476826

    Excellent! Glad to hear it's happened at last. You've done well while being flexible with your goals, which I like. Enjoy living in the present and planning for the future, versus paying for your past! Smile I hope to join you someday.

  8. Broken Arrow Says:
    1272482609

    Dude, congrats! Very awesome.

  9. retire@50 Says:
    1272485517

    congrats! one of the best presents you can give yourself is no debt

  10. cptacek Says:
    1272504110

    wow, I am impressed! Saving 50% is amazing.

  11. wowitsawonderfullife Says:
    1272510098

    Congrats!

  12. Apprentice Bliss Hunter Says:
    1272540983

    Thank you all !! Ceejay you'll be hot on my heels I feel !

    Yeah.. it's amazing how being debt-free is allowing me to save so much of my basic take-home pay. Well my monthly loan payment was 26% of my basic take-home pay. So that will make up most of 32% Cash Savings goal. I'm already paying 100 a month to the goal as well.

    I'm also already saving 10% to Retirement and 8% in Employer Shares. So saving 50% of my basic pay is only a small amount in euro and cents over what I was paying before towards debt and savings.

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 4.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]