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 !! :-)
Debt-Free !!!!!!!!!
April 28th, 2010 at 12:56 pm
April 28th, 2010 at 01:04 pm 1272459871
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April 29th, 2010 at 01:21 am 1272504110
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April 29th, 2010 at 11:36 am 1272540983
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.