# RKS Money Diary



## RKS (Jan 12, 2013)

Hi All,

I thought that this would be a good place to introduce myself. I've been lurking the forum for a while and between here and the blogs (mainly MDJ) I have learned a lot. I have a lot more to learn, but I'm working on that while I build my savings before diving into investing.

I'm 28. I graduated college in 2007 with $24,000 or so in student loans. I've been working steady since. I purchased my first home in 2008 and sunk all my free money into renos and paying down student debt. In 2010 I landed a dream job in a remote community and purchased my second home. On weekends and vacation I finished my renos on the first house and sold it privately. I came out ahead on the sale, even after a rough pre-payment charge from the bank. I used the cash to pay off the remaining student debt and LOCs from renovating while carrying two mortgages, and had about $10,000 left to start my savings. This was late 2011.

In 2012 I really began to focus on living below our means and saving / paying down the mortgage. Our household income is about $95,000 ($75k for me and $20k for the wife). My wife is now on mat leave until August and we'll be evaluating options for day care / staying home. We've been saving $725+ biweekly. Last year we started putting an extra $100 biweekly against our mortgage along with a $10,000 principal payment (last years tax refund). We are now paying an extra $290 biweekly (the maximum allowed). Doing this, we've reduced our mortgage from the original $137,000 to $120,000 in two years. I am planning on putting another $10,000 down in February on the anniversary date. Our mortgage is our only debt with an interest rate of 3.79%, far greater than any returns on my current savings. I'm going to get into a Couch Potato investment plan in the near future. I just want to save up a bit more cash before getting into it.

Current standings:

Mortgage: $120,000
House Value: $140,000 (purchase price)
Non-Reg Savings: $15,500
Registered Savings: $16,000
DB Pension: TBD
Vehicles: $10,000 (resale)
Cash: $1000


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## Pigzfly (Dec 2, 2010)

Glad to hear that the first house renos/etc worked out in your favour. It sounds like you put a lot of sweat equity into it.
That is a monster tax refund, do you anticipate an equally large one this year? Are you able to change your source deductions to reduce that a bit?
I assume the term on your mortgage is a few more years, so you will not be able to get any more prepayment flexibility than what you are doing currently?
The 10,000 in February on the mortgage will be coming from your non-reg savings, I assume? 

It sounds like you've got a pretty solid plan and foundation, all the best


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## RKS (Jan 12, 2013)

Thanks, Pigzfly.

It was a big tax refund. Primarily the result of moving expenses and RRSP contributions. I'm expecting a refund between $2500-$5000 for 2012, depending on how much more I put into RRSPs and how my pension contributions work out.

The mortgage matures in February, 2016. I'm allowed to both double my regular payments and pay up to 10% of the original balance each year. I'm hoping to have it paid off in 6-10 years. The extra payments are indeed from unregistered savings.


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