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Thread: My journey at 26...

  1. #41
    Senior Member
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    This has to be the first time I have met a person motivated to pay higher taxes. You do realize CRA would be happy to take any amount you can volunteer to pay? There is a special entry for that on your tax return form.


  2. #42
    Senior Member
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    May 2010
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    1,957
    Awesome job man, we're the same age. Saving $100k in 3 years is fantastic, and you beat your goal of 200k by 30!

    Do you have something in mind to do with all that cash? I see you seem to be saving a lot in HISA but making fairly small (minimum?) payments on the mortgage. Have you thought about paying more of the mortgage off faster?

    Quote Originally Posted by Spudd View Post
    Sorry to be nosy, but why do you have $4 in TFSA and $51k in HISA? Why don't you shelter most of that 51k in your TFSA?
    Quote Originally Posted by MoneyChase View Post
    Higher taxable income motivates me. I paid $3,000 in taxes last year. If I owe $4,500 this coming year, it simply means I'm winning.
    Quote Originally Posted by Spudd View Post
    But you realize your net worth (which you're tracking in this diary) would go up faster if you paid less taxes, right? If it were me I would be more motivated to keep the money for myself than to give it to the taxman.
    This is an interesting perspective... Hopefully you're beginning to come to the realization that paying more taxes doesn't "mean I'm winning" - Although I can see how that mindset might be motivational to a young person fresh out of school and eager to earn a good living by working hard, prove their worth, and claim their place in society as a successful adult. But just wait until your tax bill is $30,000 instead of $3,000... Then I'm quite sure you won't be so motivated and excited at the prospect of paying $45,000 the next year as a result of excessive winning.

    For now, dumping $52k (at the start of 2017) into a HISA TFSA could be a very quick and easy way to rearrange your funds. At 2% interest and a tax rate of 30% you would immediately save $300/yr straight into your account. Plus you would be growing your TFSA contribution limit in a risk-free way for if/when you want to be begin investing in the stock market sometime in the future.

  3. #43
    Member
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    Jul 2016
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    West Coastin
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    Quote Originally Posted by MoneyChase View Post
    December 4, 2016

    Assets
    House Appraisal: $285,000.00
    Cash: $50
    Chequing #1: $4,578.13
    Chequing #2: $2,001.00
    Chequing #3: $2,605.05
    HISA #1 = $60,860.13
    HISA #2 = $400.31
    TFSA = $4.02
    RRSP = $5,644.13
    Group RRSP = $1,648.00

    Total Assets: $362,790.77

    Liabilities
    Mortgage Owing: $162,110.75
    Visa: 0
    Mastercard: $0
    LOC: $0
    HELOC: $0

    Total Liabilities: $162,110.75

    Total Assets($362,790.77) - Total Liabilities($162,110.75) = $200,680.02 @ 29.
    Great work on that 200k milestone! That is really impressive @29

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  5. #44
    Junior Member
    Join Date
    Aug 2013
    Posts
    23
    February 12, 2017

    Assets
    House Appraisal: $285,000.00
    Cash: $0
    Chequing #1: $4,351.72
    Chequing #2: $2,001.00
    Chequing #3: $3,105.05
    HISA #1 = $63,458.51
    HISA #2 = $400.59
    TFSA = $4.02
    RRSP = $5,644.61
    Group RRSP = $1,825.21

    Total Assets: $365,790.71

    Liabilities
    Mortgage Owing: $161,282.82
    Visa: $60.11
    Mastercard: $0
    LOC: $0
    HELOC: $0

    Total Liabilities: $161,342.93

    Total Assets($365,790.71) - Total Liabilities($161,342.93) = $204,447.78

  6. #45
    Junior Member
    Join Date
    Aug 2013
    Posts
    23
    June 16, 2017

    Assets
    House Appraisal #1: $285,000.00
    House Appraisal #2: $270,000.00
    Cash: $100
    Chequing #1: $6,515.73
    Chequing #2: $2,001.00
    Chequing #3: $3,105.05
    HISA #1 = $2,408.47
    HISA #2 = $401.12
    TFSA = $4.02
    RRSP = $5,645.54
    Group RRSP = $2,101.00

    Total Assets: $577,181.93

    Liabilities
    Mortgage #1: $159,864.84
    Mortgage #2: $170.000.00
    Visa: $0
    Mastercard: $0
    LOC: $0
    HELOC #1: $22,940.06
    HELOC #2: $0

    Total Liabilities: $352,804.90

    Total Assets($577,181.93) - Total Liabilities($352,804.90) = $224,377.03

    Bought my second rental property & excited for my new adventure! Plus, 30 years old as of 2 weeks ago-ish!!!!
    Last edited by MoneyChase; 2017-06-16 at 05:46 PM.

  7. #46
    Senior Member
    Join Date
    Nov 2013
    Posts
    526
    From your first post you already impressed me as to how you were able to amass so much so quickly on an average income. You could be a real help to others, of many age groups, if you felt like posting about how you were able to get to where you are.

    Certainly having a frugal mindset is not particularly common these days, but I'm sure most everyone above the 30% lowest of earners could learn to cut back here or there.

    We've never seen a post about any material purchases or even a vacation. You don't speak of entertainment expenses at all. How do you reward yourself for all that you have accomplished, or do you enjoy the journey enough that it is its own reward?

    What struck me about your last post is how quickly you amassed a $100k down payment on your latest property. I can't make the math work in my head based on your Feb post and accounting for closing fees.

    It seems as though you were able to create about $40k in just four months to add to your existing cash holdings. Details on how you achieved that could be quite helpful to us all.

  8. #47
    Junior Member
    Join Date
    Aug 2013
    Posts
    23
    Quote Originally Posted by janus10 View Post
    From your first post you already impressed me as to how you were able to amass so much so quickly on an average income. You could be a real help to others, of many age groups, if you felt like posting about how you were able to get to where you are.

    Certainly having a frugal mindset is not particularly common these days, but I'm sure most everyone above the 30% lowest of earners could learn to cut back here or there.

    We've never seen a post about any material purchases or even a vacation. You don't speak of entertainment expenses at all. How do you reward yourself for all that you have accomplished, or do you enjoy the journey enough that it is its own reward?

    What struck me about your last post is how quickly you amassed a $100k down payment on your latest property. I can't make the math work in my head based on your Feb post and accounting for closing fees.

    It seems as though you were able to create about $40k in just four months to add to your existing cash holdings. Details on how you achieved that could be quite helpful to us all.
    Hi Janus,

    Thanks for the kind words. I've always believed that it was not about how much you make, but more about what you do with the money that you do earn. I don't have a college or university degree like a lot of people on here. I think at some point I could provide rays of hope to the people whom think because they work low paying jobs for whatever reason that they automatically assume they can not have a successful life financially speaking.

    I've actually never taken a vacation anywhere. I have a couple close friends that I do things with that cost little to no money, like fishing, just hanging out, watching movies, going to the beach etc. And the way I reward myself is with materialistic items that cost more then $100 when I reach goals. Example: I grew up in poverty a lot of my life so my very first paycheck I received working as a dishwasher at a restaurant I had two thoughts. Take the $300 buy some things I could not afford and continue being broke or save it to $5,000 and buy myself something nice. I saved $5,000 and bought a laptop for $450 at Best Buy. First laptop I ever owned and it ended up dying a few months ago so I went out and bought another one @ $450 because it's needed for the rental business.

    My closing costs were $5,000-ish. I did utilize my HELOC on my other property because I can pay off $23,000 way faster then the 5 year fixed that the new rental property is locked into. This allowed me to have liquid cash for any emergencies, interest I can write off, and a cheaper monthly mortgage in the long term. Before any taxes, deductions or expenses I am grossing approximately $100,000/year these days. The rental property is also netting $700+ month net not including equity and I'm making more income now then I was when I first created this thread, which is probably why you're having a hard time grasping it!

    I've also read some blogs periodically online like Mr Money Mustache, but the blog doesn't intrigue me because my gross income was never $100,000+/year and I never went to college or university. I give all the credit in the world for retiring by 30, but there is a lot more people in the world earning less then $100,000/year and/or living a poverty life.

    I will start posting more detailed updates for now on to give people a better understanding of my growth. Feel free to ask any questions and I'll do my best to answer!

  9. #48
    Senior Member
    Join Date
    Aug 2013
    Posts
    1,920
    Kudos as well to your saving & work ethic.
    I'm sure you realize that you are heavily (solely) invested in rental real estate. Depending on location you should continue to do well, but I would suggest building up some diversity in your investments over time as well.


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