# 37 year old (late financial bloomer) diary



## sunworship (Mar 15, 2019)

I had a head in the sand attitude for a long time. I am a late bloomer.

*As of May 2018:
*

Age: 36, engaged
Income: $110,000 
Student debt: $25,000 at 5%
Liquid Savings: $35,000 (earmarked for June wedding)
RSP: $8000

*As of March 2019:
*

Age: 37, married
Income: $150,000.00 (took a major chance and left a permanent job to take a short term contract at a higher seniority level and higher income commensurate with my years of experience, gamble worked out and I am now permanent in that role)
Student debt: $18,000 at 5%
Liquid Savings: $2000 (emergency fund)
RSP: $12,700 

*Changes*

As of end of January 2019, I changed my habits significantly from not tracking my spending and living on a budget while only making minimum payments in accordance with my student loan repayment schedule, to setting a goal of agressively paying off the student debt by August 2019. This meant putting 50% of my income towards agressive debt repayment, learning to live off the rest, and to stop using the overdraft for frivolous fun choices that I hadn't budgeting for. I eat out once a month, I don't get coffee out, and I don't go out on the town with friends very often. My biggest discretionary cost these days are gifts (baby showers, birthdays, housewarmings, weddings.)

What spurned the change? I want to say it is that I am expecting our first child, and maybe it is that, but I think also I realized I liked the challenge and I knew big changes needed to happen to establish goals and reach those goals. I think also I realized that my bad habits were allowing for equally bad habits for my husband. If I wanted him to make improvements to his credit card bad habits, I needed to do the same with my own student debt repayment avoidance habits. I was making the minimum payments on my student debt without thinking how much that 5% interest was costing me over time. 

*Current Goals:
*
Debt free: August 2019

Buy a home in Toronto: March 2020 (I will have 8% of $750,000 down payment saved by then and am interested in advice from people who think I should wait until March of 2022 when I will have 20% of a $750,000 mortgage saved)

Retirement: retire by age 68 with an annual income of $94,000 - right now this goal is based on the defined benefit pension I have if I stay in my current role which is the plan. Given the mortgage we will have to take on I doubt I will be able to save enough even with a frugal lifestyle to reach that goal without the pension. This will largely factor into any career moves I make.

That's my short form debt diary.


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## Beaver101 (Nov 14, 2011)

^ This is not meant as criticism but not sure why you would worry about Retirement goals that will not happen until some decades away or 31 years to be exact at a retirement age of 68. I would focus on the current 'debt free' goal by August 2019 first and foremost and being on track with the budget for at least a year.


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## sunworship (Mar 15, 2019)

I take your point. Goal # 1 is becoming debt free. Goal #2 (the timeline of which may have to be reassessed) is to save up a down payment. Goal #3 is to save towards retirement with the date and savings goals adjusted year to year based on life adjustments and planning.


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## Gruff403 (Jan 30, 2019)

Congratulations on the baby and taking a better interest in your families finances. Great to have some goals and strategies for accomplishing them but be flexible as you never know what life will throw your way. Just keep moving forward and enjoy the ride. When bambimo arrives enjoy every second and take care of yourself first. 
Don't forget to open an RESP ASAP. I'm not sure I would want to take on the Toronto real estate market. Get debt under control, save some money, enjoy the baby. I assume you are renting now. Owning a house is more expensive than most realize. There are some merits to renting in overheated markets.
Controlling debt and developing some good money habits will pay off huge in long run. But please don't forget to live. Frugality is good - to a point.


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