# Finally out of debt!



## Taxsaver (Jun 7, 2009)

I`m officially today debt-free for the first time since 2003! It`s a greet feeling!  I can now open a TSFA.  It was all bad debt, burning money. Next time I have debt, it will be a mortgage!


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## the-royal-mail (Dec 11, 2009)

Congratulations! One milestone reached, and now, onto the next one. 

What is your strategy for preventing a reoccurence?

Any thoughts on a rainy day fund?


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## Taxsaver (Jun 7, 2009)

The source of our problems are almost always coming from inside. In my case, it's my out-of-control emotions that were the problem. I have a budget that I look at least twice a week to keep an eye on what is coming in and coming out. Had I been that way since 2003, I would have a house almost mortgage-free by now!  Now I'm 45, so I am serious about things like finance.

Regarding an emergency, I am accumulating all my extra money in a TSFA. I don't have any costy project for 2010 (traveling, buying a car, buying a house, etc.). I earn good money, and will live a $300 a month room in a house. I don't have a car; commute to work with a bike. It costs me $200 a month for food, and don't go out. Some people say I live a priest's life.

My project for 2010 is to create my own business. I have an idea on which I'm working with a business consultant.


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## the-royal-mail (Dec 11, 2009)

Sounds very good. Here's something else to think about:

1. what is your goal for the amount of rainy day savings (in TFSA) you would like to have?
2. what is your goal for the amount of money you would like to save for possible house downpayment?
3. How long have you given yourself to achieve these goals? The budget you mention above should allow you to see these projections in a second, or can be extended out to see how much time you will need.

You're doing great! Keep it up! And starting a business is a good way to help your situation! Good luck with that!


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## Dana (Nov 17, 2009)

Congratulations! That is an awesome acheivement!


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## CanadianCapitalist (Mar 31, 2009)

Taxsaver said:


> Some people say I live a priest's life.


Others might say that you are on the fast track to financial freedom. It really is a good feeling knowing that you don't own a single red cent to anyone. Congratulations!


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## Four Pillars (Apr 5, 2009)

Congratulations TS!


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## moneymusing (Apr 3, 2009)

That's great news Taxsaver!! It's a great feeling transferring that last payment over.

It's also great that you're starting up a business. There's something great about taking control of your life as well as your finances through running your own business rather than "working for the man"


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## canadianbanks (Jun 5, 2009)

Congratulations TaxSaver! Just keep in mind that mortgage is also debt that can become a nightmare if you borrow more than you can service. I like the idea of starting a business, because if your business succeeds you'll be on the way to a real financial freedom.


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## Taxsaver (Jun 7, 2009)

I opened a TSFA with ING today! Nothing in it yet.


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## overtaxed (Nov 20, 2010)

checkout ally and other online banks. there are always some better rates to be had.


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## Taxsaver (Jun 7, 2009)

The ING TSFA has been at 2% for a while. Now it is at 1.5%. I would like to stop at $5,000 and use this as an emergency fund. Then I'll invest my budget surplus in my RRSP until I get the $25,000 amount for the government house purchase plan to buy a house.


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## 72camaross (Apr 26, 2010)

<- Jealous.

Where is the 'Like' button? haha

Good Job!


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## Taxsaver (Jun 7, 2009)

72camaross said:


> <- Jealous.
> 
> Where is the 'Like' button? haha
> 
> Good Job!


Thanks. I worked hard AND smart to get where I am now. I do as much overtime as possible until January 1. This extra money will be well invested, not wasted. I was in $17K of toxic debt, if the term is applicable here, a year and a half ago. The first determinant step I took was to make a budget. It's the best financial advice I can give to someone in financial trouble. I can talk about it by personal experience. My main goal for 2011 is to liberate myself of the 9-5 slavery mode. Instead of working for people, I want people work for me. I will no longer accept to be yelled at and treated as a second-rate human being by customers, and humiliated by supervisors. It's a promise I'm making to myself.


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## kcowan (Jul 1, 2010)

Congratulations Taxsaver and welcome. I am sure you will find it fun going forward.

I encourage you to build up that nestegg so you can afford to get out from under your day job and get people working for you.


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## the-royal-mail (Dec 11, 2009)

Taxsaver said:


> My main goal for 2011 is to liberate myself of the 9-5 slavery mode. Instead of working for people, I want people work for me. I will no longer accept to be yelled at and treated as a second-rate human being by customers, and humiliated by supervisors. It's a promise I'm making to myself.


Can you tell us how you plan to accomplish that?


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## Taxsaver (Jun 7, 2009)

Good question Royal mail. I thought I banned of the forum already! 

I have a business idea in mind. I'm just going to copy and paste what my uncle is already doing. He works for himself with no employee and the headaches they bring. One thing's for sure, the members of this forum will be the first to know if that works out well.


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## marina628 (Dec 14, 2010)

I am very happy for you ,look forward to reading more from you.

Marina


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## Harper77 (Nov 11, 2009)

Congrats!
Would you mind posting up some little tid-bits as to how you were able to accomplish it? How far in the hole were you? What did you have to change/alter to accomplish it?


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## plaza (Sep 16, 2010)

Congrats!!


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## rookie (Mar 19, 2010)

and all the best. do let us know how it goes!!!


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## NLOIL (Jan 28, 2011)

*Tfsa*

A TFSA is a very special investment vechicle, a gift to Canadians! I would not suggest opening a TFSA in order to just stash cash at 1-2% interest.


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## I'm Howard (Oct 13, 2010)

Not sure if this has been answered, but you Die, the TFSA has a $100,000 with your child as beneficiary, how is it taxed, or not?


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## andrewf (Mar 1, 2010)

Probate taxes apply, but it isn't taxed as income.


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## Four Pillars (Apr 5, 2009)

I'm Howard said:


> Not sure if this has been answered, but you Die, the TFSA has a $100,000 with your child as beneficiary, how is it taxed, or not?


I wrote about this today:

http://www.moneysmartsblog.com/esta...ry-successor-holder-tax-free-savings-account/

In that case, the TFSA money becomes unregistered as of the date of death, with any income being taxable in the hands of the beneficiary.

There won't be probate fees if you have the child listed as a beneficiary.


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