September’s Debt Reduction Update and Goals for October



Checking on the progress of my debt reduction and savings strategies today! Here are the raw numbers of my accounts, comparing when I first started blogging here and today:
Debt Reduction
Debt 07/14/2019

And Debt 09/30/2019

Debt reduction spreadsheet found at Vertex42
Savings Accounts:
Savings account: $2000 
Increase of: $2000. I said I had $321 that week, but I spent the $321 in savings immediately. Since then, I’ve saved $2000 exactly and haven’t dipped in to the funds once.
Investment account: $379
Increase of: $379
I’ve put some side-hustle money in to an app called WealthSimple, which is a service targeted at making investment simple for millennials. I opened this account a few months ago with two $175 deposits and I’ve already made a little cash. I’m in an aggressive-growth portfolio, so my earnings actually dropped to $1 during some market volatility. Today, I’ve got $29 of profit in there. I’m using this account like an additional savings account and will be contributing around $200 a month to this.
Once I have more time, I’ll take more control over which investments I buy, as I actually quite enjoy the stock market. For today, I’m glad for the help WealthSimple offers. WealthSimple allows you to transfer money out relatively easily, so I like it for medium-term savings. These are funds I can transfer elsewhere in a year or two.
Registered Retirement Savings Plan: $13 267.33
This is the Canadian equivalent of the 401K. My employer matches up to 3%, which isn’t much, but it’s free money so I make sure to take advantage of the full matching amount. I was going to contribute more to this fund, but the management fees are 1.94%. That’s a bit high, even for Canada where we pay a lot for financial products. I regularly see offers of 0.5% for management fees, and I’d like to open a new RRSP account once I have a few months of emergency savings saved up.
TOTAL SAVINGS: 
$15 646.33
Net worth (based on total savings – total debt):
-$18 829.04
Takeaways
I’m going to give my efforts a B grade. Overall, my debt went down a bit. My savings went up significantly (considering I had none before), and I’m prioritizing saving over debt payment at the moment. If something happens and I lose my main income stream or need to move, I have almost nothing in the bank. That terrifies me.
I’m not thrilled that one of my credit card balances actually went up, but I’m going to make a payment of $100 to that today, and then continue to throw money at that as I can to bring it back down.
I think posting a monthly reconciliation of accounts is going to be imperative for my progress. As nervous as it makes me to review the health of my entire financial portfolio, it doesn’t make sense to hide from it.
Goals for October:

Track all transactions diligently
Post two spending diaries (chronicle all spending for a randomly chosen day, highlighting an average spending period)
Make a concrete plan for killing credit card debt, with or without line of credit approval

Keeping it simple because tracking all transactions is difficult enough for me!
The post September’s Debt Reduction Update and Goals for October appeared first on Blogging Away Debt.



Source link