September to November Monthly Reports

Hi,

The last few months of the year are when I really started to feel the effects of having little income. And the Canadian dollar kept falling. So I had to tighten my belt a bit more, so to speak.

Please note that as of September 2015, I began using a $1.35 USD-CAD rate.

September 2015

NAME JULY 31, 2013 SEPTEMBER 30, 2015
Mastercard $6,123 CAD $12,427 CAD
Visa $8,653 CAD $35 CAD
B-school loan $96,800 USD
($125,840 CAD)
$76,504 USD
($103,281 CAD)
Ontario Student Assistance Program (OSAP) loan $20,931 CAD $2,249 CAD
Student Line of Credit (LOC) $9,678 CAD $0
TOTAL $171,225 CAD $117,992 CAD

I reduced my CAD$ debt by $1611 , but since the CAD$ fell yet again and my US loan accumulated over $500 USD interest, my total loan balance went up. Depressing.

October 2015

NAME JULY 31, 2013 OCTOBER 31, 2015
Mastercard $6,123 CAD $11,977 CAD
Visa $8,653 CAD $0 CAD
B-school loan $96,800 USD
($125,840 CAD)
$76,940 USD
($103,869 CAD)
Ontario Student Assistance Program (OSAP) loan $20,931 CAD $1,719 CAD
Student Line of Credit (LOC) $9,678 CAD $0
TOTAL $171,225 CAD $117,565 CAD

In October, I paid off $1015 CAD of my Canadian debt, but again because of exchange rate and interest on my US$ loan, my total debt only went down by just a few hundred CAD dollars.

November 2015

NAME JULY 31, 2013 NOVEMBER 30, 2015
Mastercard $6,123 CAD $11,777 CAD
Visa $8,653 CAD $685 CAD
B-school loan $96,800 USD
($125,840 CAD)
$77,462 USD
($104,574 CAD)
Ontario Student Assistance Program (OSAP) loan $20,931 CAD $486 CAD
Student Line of Credit (LOC) $9,678 CAD $0
TOTAL $171,225 CAD $117,522 CAD

November was the same story as in October. Actually, it was worse…as my total balance was only down $43 CAD, although I poured in over $1400 CAD into debt…

I’m trying to focus on a bright side, anything: I only took home under $3000 CAD per month in income, so being able to put $1400 of it towards debt was not bad. Depressing though it was to the overall picture…

In my next post I will do my 2015 year end report.

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2014 Report – Another Year Over

Happy New Year!

Happy New Year!

2014 is over and, as always, I am thankful to get the opportunity to see the start of another year.

Today, I bring you the end of month report for December 2014 as well as a debt progress summary.

In December, I had zero money coming in and the Canadian dollar fell even further against the US dollar. At the same time, some of my expenses went up instead of down. For instance, I spent a bit more on dining out because of the holiday dinners and meetups with friends.

DINING EXPENSES

OCTOBER NOVEMBER DECEMBER
$172 $133 $201

I also spent about $240 on gifts.

Thankfully, my family is not big on Christmas gifts. However, a family member had a significant birthday, there are kids in my household and I also bought little holiday gifts for a few friends so that’s why the figure is $240. AND I also spent $1000 more on health (dental) expenses than I had been averaging the past few months.

Another thing to give thanks for is that my holiday spending was limited to eating out and gifts. I had no entertainment expense! The cold weather is not conducive to my going out. Yesterday, for instance, the weather was feeling like a positively depressing -30C/-22F. When winter hits in Canada I know I can look forward to spending much less on entertainment!

ENTERTAINMENT EXPENSES (TRAVEL, DRINKING/PARTYING, RECREATION)

SEP OCT NOV DEC
$0 $30 $13 $0

Also, since I had no incoming cash flow, I did not give my Mum money for the family this month. A bit of the dining expenses up above though was towards a couple family takeout/delivery meals (pizza and takeout).

Here is where things stood at the end of December:

NAME JULY 31, 2013 DECEMBER 31, 2014
Mastercard $6,123 CAD $0 CAD
Visa $8,653 CAD $38 CAD
B-school loan $96,800 USD
($109,142 CAD)
$79,667 USD
($89,936 CAD)
Ontario Student Assistance Program (OSAP) loan $20,931 CAD $18,260 CAD
Student Line of Credit (LOC) $9,678 CAD $0
TOTAL $154,527 CAD $108,196 CAD

November’s balance was $110,767. So that means that in December I paid off $2571, just meeting my minimum threshold of $2500 per month in debt reduction. A minor miracle considering I had no income!

At the end of December 2013, I was $139,881 in debt. So that means that in 2014 I paid off $31,685 or an average of $2640 per month. On a salary that ended up being quite a long ways below the six figures it would have hit had I been earning proper income the last 4 months of the year.

Overall, I have paid off $46,331 in 17 months! And that doesn’t include most of the interest payments!

I am currently on track to meet my goal of eliminating my debt in a total of 5 years and that is great! I may not be quite where I want to be right now financially, my savings are currently being depleted and my future is still quite uncertain. But I’ve begun to accept uncertainty as my permanent status in life anyways. And, more importantly, I am super thankful that I got good income for as long as I did and that I was able to pay off as much as I did! Many people’s entire gross income is the total I paid off this past year and many of those people work a helluva lot harder or at least expend a lot more physical energy working in their jobs than I ever will. So I AM thankful!

My financial wish for 2015 is that I, and any readers in a similar boat, will attain our debt reduction goals this year!

November Monthly Report – What’s Going On?

Hi all,

The news coming out of the US the past couple weeks have been depressing, especially as it concerns the Brown and Garner cases. Added to that is the fact that, after October, November was the month I took in the least amount of money since last year when I first started working for myself. So money is tight going into the holiday season. Also, the Canadian dollar is still struggling against the US. For these reasons, my mood going into the holidays is a bit somber.

With November being the second straight month of barely any incoming funds I was unable to put as much money towards debt. I cut down my expenses a little more too, as I am now on the path of spending as though I expect no income for 6 more months.

In fact, if I discount the money I gave my Mum and loan interest payments, in November I only spent $458 in total. Most of it was on health and dining out.

DINING EXPENSES

SEPTEMBER OCTOBER NOVEMBER
$440 $172 $133

I reduced my dining out by a bit. A good chunk of the dining spending above was work-related. The only non-work-related dining expense was treating my family to Popeye’s takeout one Saturday night ($55 fed close to ten people – there is a reason poor people eat a lot of fast food). I was lucky in that often my clients paid for lunch if we had a lunch meeting. However, sometimes I ended up buying my own lunch when my meeting was just before lunch time. A few other times I was good and packed my lunch with me when I knew my work meetings downtown were scheduled to be done at lunch time and I wanted to go work at the library afterwards. I may have to go back to packing my lunch more frequently if my situation continues as is.

ENTERTAINMENT EXPENSES (TRAVEL, DRINKING/PARTYING, RECREATION)

AUG SEP OCT NOV
$68 $0 $30 $13

That $13 was for a movie ticket.

If things continue as is I will have to suspend giving my Mum money and cut down further on dining as well as miscellaneous expenses, until I start receiving income again. For instance, no more delicious lattes every now and then at Starbucks – it will be all about the cheaper tea/bottled water during my meetings. Every little adds up when trying to cut down on spending! I had also been hoping to do a holiday trip (or rather, a January trip) somewhere but that doesn’t look possible at the moment.

On the bright side, since I am in the suburbs with my fam again, far away from the temptations of downtown living, and since it is cold again here in Canada, my desire to go out and spend money is much lower. So I am not yet really feeling the crunch.

Anyway, here is where things stood at the end of November:

NAME JULY 31, 2013 NOVEMBER 30, 2014
Mastercard $6,123 CAD $0 CAD
Visa $8,653 CAD $0 CAD
B-school loan $96,800 USD
($109,142 CAD)
$81,802 USD
($92,346 CAD)
Ontario Student Assistance Program (OSAP) loan $20,931 CAD $18,421 CAD
Student Line of Credit (LOC) $9,678 CAD $0
TOTAL $154,527 CAD $110,767 CAD

October’s balance was $112,940. So that means that in November I only paid off $2173, falling short of my minimum threshold of $2500/month. I am, nonetheless, thankful that I was still able to pay above the minimums for my loans (which combined currently equal around $1091), despite two low-to-no incoming cash flow months. And I’m very thankful that my situation is not so terrible yet.

In December, I hope I will be able to pay off enough to get to $45K paid off in 17 months.

October Monthly Report – Cash Flow Woes

Hi everyone.

My end-of-month report for October is due. So here I am!

October was a little bit of a rough month income-wise because I didn’t get any money coming in for the projects I am working on. One of the clients was late with payment, main client, but they have been late the last few times so I was kinda expecting it.

I actually had to dip into my savings to make payments towards debt. I felt comfortable doing so because my savings are still enough for now. Not one year’s worth like I want, but maybe enough that I could make the money in it stretch to last me 6 to 8 months if I get no income for a while, without reducing my debt reduction rate. Although I have a feeling that my cash flow will continue to be bad for the next month or so, here’s hoping it won’t come to the situation where I’m looking at 6 to 8 months without income!

Anyway, since I kinda knew I wasn’t going to have any money coming in, I limited my spending throughout the month. Glad to report that my spending for this month is the lowest it has been since February last year, a few months before I got my first contract. Back then I was on such a spending diet that my monthly spend for the month, minus credit card interest payments, was $400 or less. So this month my spending was the lowest it’s been in a year and a half. Definitely a record.

Granted the main reason my monthly expenses fell was because I cut back my spending, knowing or rather suspecting that I wouldn’t get any cash coming in this month. But it’s nice to know I can easily make $500 plus reductions in spending if really needed.

As part of my reduced spending plan in October I went out less. Part of this was prompted by the fact that early on in the month, after a late night out and a few minutes waiting out in cold weather in clothes that were not meant for cold weather, I impulsively decided to get a cab home. That ride cost me over $40 as opposed to the $3 the bus was going to charge. I felt so guilty about that that I skipped going out at night for a couple weekends. I also hate cold weather. So the way I see it, my guilt was another excuse to not go out in the cold.

My dining expenses for October amounted to $172. Thankfully, that’s a marked decrease from the previous 2 months. The last time it was that low was in June.

DINING EXPENSES

AUGUST SEPTEMBER OCTOBER
$371 $440 $172

The $172 is close to my ideal of $150 or less and within my budget of maximum $250. So I’m feeling better about it.

My other big expenses excluding loan interest, for the next few months, will be health (mainly dental), gifts (including monthly amount I give my Mum) and entertainment. Health should be a fairly constant $250 – $350 for the next few months. Gifts will ramp up during the holidays. My family is thankfully not big on gifts, but I do like to buy presents for my friends and also treat my huge family to a few dinner/lunch takeout meals. Entertainment is the other regular expense. That includes travel, drinking/partying, recreation, etc.

I no longer really have a grocery bill. So from now on I will track entertainment expenses instead. In October it was pretty low, because I barely went out and my bus tickets for travel were bought in July. Here is a comparison of my entertainment spending the last 4 months.

ENTERTAINMENT EXPENSES (TRAVEL, DRINKING/PARTYING, RECREATION)

JUL AUG SEP OCT
$404 $68 $0 $30

In other news, the Canadian dollar keeps falling. Earlier this month I started feeling a bit of debt fatigue as I considered how the balance feels like it has barely moved the past couple months. And I felt a bit depressed when I considered how much longer the Canadian balance on my b-school loan is going to take to go down.

I am feeling a bit better now as I am focusing on small steps at a time (that by the way is great advice for life!). When all was said and done at the end of October, here is where things stood:

NAME JULY 31, 2013 OCTOBER 31, 2014
Mastercard $6,123 CAD $0 CAD
Visa $8,653 CAD $0 CAD
B-school loan $96,800 USD
($109,142 CAD)
$83,589 USD
($94,364 CAD)
Ontario Student Assistance Program (OSAP) loan $20,931 CAD $18,576 CAD
Student Line of Credit (LOC) $9,678 CAD $0
TOTAL $154,527 CAD $112,940 CAD

September’s balance was $115,652. So that means that in October I paid off $2712, meeting my minimum threshold of $2500/month but falling short of my real goal of $3000.

My US dollar amount is going down but, as aforementioned, my Canadian balance feels like it is not moving much. I think part of my sadness came from accepting that I am not going to be able to pay off $50K by the end of this year, a stretch goal I had. Perhaps if the dollar was not dropping so fast and the end of this year was not looking to be filled with cash flow worries…Ah well.

September Monthly Report – Home Again

Hi everyone.

I come to you shame-faced and more than a little disappointed in my progress for September.

September was a busy traveling month for me. I was barely home.

The month started with a visit by two of my best friends from business school for the Labour Day weekend. That was an expensive long weekend! Probably the most expensive one in a while since my friends were foodies who wanted to try as much of the cool food/desserts in Toronto as possible. Including one of my favourite Canadian meals, also probably the most unhealthy thing one can eat.

poutinePoutine is the most delicious heart-attack-in-a-box ever!

Anyway, a few days after my friends left, I moved back home. However, within a few days of moving back, I left again. On a long weekend trip to visit a friend in Montreal. Then the weekend after that I went on a five day trip to attend my best friend’s wedding in the US. I saved greatly on transportation to visit these friends.

I saved money on the travel costs to visit my friends (more on that later) and, for the first trip, was actually pretty good on minizing spending once I arrived. However, for my friend’s wedding I spent more. Mainly because of gift-giving. I didn’t skip on the gift for my best friend and her husband. Also, I treated myself to a couple extra purchases there (namely the always-expensive fro-yo and a nice meal).

My Pinkberry fro-yo was great but I think my $6.57 could have been spent much better. Or not spent at all! This is my dilemma whenever I buy Starbucks coffee, coffee from independent coffee shops or little treats such as frozen yoghurt from specialty shops. I always think how I could have bought a meal for the same price as one little cup of coffee. A meal would have been much more filling and much less of a waste of money. That’s my Third World Mentality coming through. But seriously, if I never had to meet clients in coffee shops I would hardly go to coffee shops. They are a money drain!

Moving right along!

I thought August’s spending on dining out was bad but September got it beat by far.

DINING EXPENSES

July August September
$237 $371(!) $440 (!!!)

I am beginning to accept that dining is the category that benefits from my extreme frugality in other areas. I save extra hard in other areas so I can put a little more towards dining without feeling too guilty. Because I love trying new food. So I’m ok with spending a little more on dining, now that I am earning more money. However, I would like to keep my spending in the category to maximum $250 per month and ideally $150 or less.

I had only one week in the condo in September but I spent a whopping $62 on groceries. To be honest though, some of that was money I gave my Mum to buy me some things at the supermarket once I moved back home.

July August September
Dining Out $237 $371 $440
Groceries $94 $101 $62
TOTAL $331 $472 $502

All in all, minus rent, my total spending for September was $2133, which is just slightly less than August’s total. But September’s total includes only around $645 of interest payments for August, compared to the closer to $1000 figure it had been for the previous 3 months.

Also, unlike in August, in September I did not put much money toward debt. My spending total was around the same but my incoming cash flow was less in September than in previous months. So I was hesitant to throw extra money at debt.

As of the end of September, here is where things stand.

Oh, before I get to that, I decided to use the $1.1275 USD-CAD exchange rate to keep track of my progress from last year July til now. So my 2013 debt numbers will change a bit from this post onwards. Of course, now that I am using the $1.1275 rate though, looking at the currency history for this week, I am wondering if I shouldn’t just use a rate like $1.3 just to be safe…Hmmm, I will revisit this rate in 6 months.

Also, the credit card balances are not overdue. Just haven’t paid them yet but will do so in full before the balance due dates.

Ok, here is the latest:

Name July 31, 2013 September 30, 2014
Mastercard $6,123 CAD $57 CAD
Visa $8,653 CAD $167 CAD
B-school loan $96,800 USD
($109,142 CAD)
$86,650 USD
($96,698 CAD)
Ontario Student Assistance Program (OSAP) loan $20,931 CAD $18,730 CAD
Student Line of Credit (LOC) $9,678 CAD $0
TOTAL $154,527 CAD $115,652 CAD

August’s balance at the same rate was $118,011. So that means that in September I paid off $2359, which is below my monthly minimum goal of $2500 – hence the reason for the shame-faced greeting.

Sigh.

August Monthly Report – Exchange Rate Blues

Hi everyone!

I’m sorry I have been MIA this past month. I was enjoying my last month downtown. Also, I had a ton of visitors back-to-back this past month, almost right up until my last day downtown. I am back home with the ‘rents now so I have more time.

I have a post I want to do about saving money while living and having fun in the city. Before I do that though, I should do my end-of-month report for August. Here goes!

As I mentioned up above, August was a busy month. It also felt like an expensive month, spending-wise. With all the visitors I had who wanted to enjoy the food of downtown Toronto about which I’d been boasting, I didn’t really cook as I do when I am normally on my own. In fact, I barely cooked. Consequently, my dining expenses for the month were more than double what they were in June and 57% more than what they were in July.

Behold the difference in spending on dining out (this includes coffee shops, which is where I have many work meetings).

DINING EXPENSES

June July August
$177 $237 $371 (!!!)

So far, not good.

However, if I also look at grocery spending and compare the totals of dining out and grocery shopping per month, it looks like this:

June July August
Dining Out $177 $237 $371
Groceries $242 $94 $101
TOTAL $419 $331 $472

June and July’s spending on food are no longer far apart. Both are still hella high though!

Another big expense was a new laptop, which I finally bought after working with an old, slow one for way longer than I should have. Especially considering that on my laptop is where I do 90% of my work. More details about my laptop expense in a future post on saving in the city.

Besides those two aforementioned things though, almost all my other expenses were down or almost the same from the previous month. Here is a comparison of my biggest ones, minus loan interest payments:

June July August
Dentist & Health $150 $869 $263
Entertainment $93 $404 $68
Clothes $210 $84 $6

In total, minus that laptop purchase and rent, I spent about $2157 in August. Compare this with June’s $2426 and July’s $2838. Keep in mind that these totals look high because they include close to $1000 of monthly loan interest payments and an average of $430 per month of dental expenses.

Although July’s total included tickets bought for future weekend trips, it is pretty surprising to me that my spending total for August is less than those of the previous two months. But I’m not going to complain!

Yay me for kind of spending less this month!

I also made a big effort to put more money towards my debt this month, more specifically toward my business school loan. I actually put money toward the debt before I received pay from my clients this month. I’m happy to report that my efforts again paid off this month. However, they came at the expense of my monthly saving goal. Since my main client was again late with their payments, I didn’t get much income for August until September. And I actually had to dip into my savings a little until I received the payments. Thankfully, I had built up a buffer of savings from the past year so I could survive just fine until I got paid.

Speaking of buffers, since I started paying off the principal balance on my MBA student loan in July my payment due date has been going further and further into the future. My next due date is now June 2015! My goal is to push it out at least one year ahead, in case I, for whatever reason, no longer have work and it takes me a year to find a paying gig. Would love to have the burden of paying my loan off my shoulders while unemployed.

Anyway, without further ado, here is where things stand as at the end of August:

Name July 31, 2013 August 31, 2014
Mastercard $6,123 CAD $0
Visa $8,653 CAD $605 CAD
B-school loan $96,800 USD ($105,503 CAD) $87,382 USD ($95,238 CAD)
Ontario Student Assistance Program (OSAP) loan $20,931 CAD $18,883 CAD
Student Line of Credit (LOC) $9,678 CAD $0
TOTAL $150,888 CAD $114,726 CAD

It would seem that my debt has fallen below $115K! At the end of July, it stood at $119,428. By my calculations up above, the balance at the end of August is $114,726. Meaning, I paid off a whopping $4702. That seems fantastic! However…however…and here is where I become the bearer of bad news again…

Today, I remembered (after making a transfer of funds from a Canadian bank account to my US bank account) that my bank charges me higher than the actual exchange rate whenever I make a transfer. Worse is that I certainly noticed the downward trend of the Canadian dollar against the US dollar the first 6 months after I started tracking my debt reduction. And I most especially noticed a downward trend again in July this year. I finally went and checked the historical values today.

The two charts below are exchange rates from July 1, 2013 to September 9, 2014 (the date I am writing this post).

Here is a chart of the value of the Canadian dollar to one US dollar.

CAD to USD Exchange Rate - Historical

You can see that the Canadian dollar dropped from over $0.96 of a US dollar to under $0.92. As I mentioned in my first post, it sucks that almost the entire time I was in the US during grad school and afterwards when I was unemployed….In other words, when I had no income whatsoever, the Canadian dollar was at par or greater than the US dollar. I arrived in Canada and I swear it felt like the Canadian dollar literally began falling that very same day. The chart above, which begins a few months after I moved back, kinda proves my feelings correct. Do you see that depressing downward trajectory going to around February 2014? This year’s July and August were also looking dim. For the past few months, the Canadian dollar has been nowhere near where it was last year July. *sigh*

Here is another view of the same information. This second chart shows the US dollar expressed as one Canadian dollar.

USD to CAD Exchange Rate - Historical

*double sigh*

As you can see from the second chart, one US dollar is now equal to $1.0885 Canadian. My Canadian bank, however, charged me the rate of $1.1273 to do the wire transfer to my US account. At first glance, $0.0388 does not seem like a big difference. However, to my five-figure US dollars loan amount owing, that $0.0388 is a $3,390 CAD difference. Not an insignificant amount of money!

This, by the way, is one of the many reasons I have been focusing on paying off the business school loan first. I don’t want to continue losing money because of crappy exchange rates! And, while the Canadian dollar may yet rise again to equal the US, I think that the quicker I pay things off the less I will lose.

To be more accurate in the debt amount I have to pay off, I have decided to stop using the exchange rate of $1.0899 which I’d been using since July and instead start using a rate closer to the rate I am charged. I also want to use a higher rate because I am conservative when doing my financial planning.

Besides checking when I go do my transfers, I have not really been following the currency markets and have precisely zero idea whether or not the Canadian dollar is expected to rise or fall in the next year or so. Earlier I chose $1.0899 for my rate, although it was probably around $1.0589 on average, because I wanted to account for that increase bank rate. Now that the Canadian dollar has fallen even more (and the USD/CAD rate has risen) I think I should adjust my numbers. And yes, I recognize that the Canadian dollar seems to be on a little upward trend the past 3 weeks. However, as a financial pessimist, I am going to assume that it will fall soon, at least getting back to today’s level within the next 3 months.

So from now on, I will use an exchange rate of $1.1275 for my amount owing in US dollars (and pray that the rate falls in the future or does not go much higher, on average, than where it is today).

When I use the rate of $1.1275 for August, my new table looks like this:

Name July 31, 2013 August 31, 2014
Mastercard $6,123 CAD $0
Visa $8,653 CAD $605 CAD
B-school loan $96,800 USD ($105,503 CAD) $87,382 USD ($98,523 CAD)
Ontario Student Assistance Program (OSAP) loan $20,931 CAD $18,883 CAD
Student Line of Credit (LOC) $9,678 CAD $0
TOTAL $150,888 CAD $118,011 CAD

That, my dear readers, is a $3,285 difference in amount owing. And, it makes the amount paid off in August only a measly $1,417.

Sad faces upon sad faces.

If I want to feel better I should think about how my total paid off in the 13 months is $32,877 or an average of $2,529 per month. To pay off $150,888 in 5 years, I need to pay off $2515 per month on average. At $2,529 paid off per month, I just hit that monthly goal.

If I want to feel A LOT better about things though I could also use that $1.1275 rate for last year’s July amount too to get a better idea of the progress I have made in comparative terms. My new-new table would then look like this:

Name July 31, 2013 August 31, 2014
Mastercard $6,123 CAD $0
Visa $8,653 CAD $605 CAD
B-school loan $96,800 USD ($109,142 CAD) $87,382 USD ($98,523 CAD)
Ontario Student Assistance Program (OSAP) loan $20,931 CAD $18,883 CAD
Student Line of Credit (LOC) $9,678 CAD $0
TOTAL $154,527 CAD $118,011 CAD

Making my total paid off so far equal to $36,516 or an average of $2,808 per month. To pay off $154,527 in 5 years I need to pay off an average of $2,575 per month. Paying off an average of $2,808 would make me a few hundred dollars ahead per month, which is good!

I’m not sure which table to use. Should I use the same exchange rate for my entire payoff period (beginning July 2013) or should I adjust the exchange rate periodically, perhaps every 6 months? I am leaning toward going with the former because if I do the latter it makes my true progress harder to track as the amount paid off will fluctuate a lot when I make adjustments to the rate.

If any of you reading have an answer or any suggestions for how to handle currency fluctuations in my debt reduction tracking, please let me know in the comments!

July Monthly Report – I Believe I Can Fly

Hello all :). I hope those of you in Ontario are having a great long weekend. I know I am! There were so many free events this weekend in Toronto that it was hard to choose where to go. Long weekends are especially fun in the city because there are usually more events than normal. And normally summer weekends in Toronto are already packed with events.

I love Toronto

This month I continued to spend a lot. Sad face. However, I should note that while it is a lot compared to the spending I did when I was at home it is not that much considering that I am on my own and am going out a helluva lot! Also, after last month’s total and utter failure I made a big effort to put way more towards my debt, although I once again was dealing with some late payments.

In July, I made a bunch of extra payments towards my b-school loan. In so doing, I finally paid off the accumulated interest part of the loan and now some of my monthly payments are being applied to the principal balance. This is great news. It is great to see the principal going down now, after well over a year of seeing every payment I made only being applied to interest. THAT was depressing because it felt like my principal balance owing was never gonna go down.

I had a big credit card bill of over $1500 at the end of the month. Over $600 of it was towards my dentist fees. I forgot to pay off the credit card balance before the month’s end. Otherwise, my debt reduction progress for July would have been much better! Don’t worry though, I didn’t carry the credit card balance past the due date. I actually just paid it off, before the due date, so I’m good.

 

Name July 31, 2013 July 31, 2014
Mastercard $6,123 CAD $0
Visa $8,653 CAD $1167 CAD
B-school loan $96,800 USD ($105,503 CAD) $91,038 USD ($99,222 CAD)
Ontario Student Assistance Program (OSAP) loan $20,931 CAD $19,039 CAD
Student Line of Credit (LOC) $9,678 CAD $0
TOTAL $150,888 CAD $119,428 CAD

At the end of June my debt total was $122,675. So that means that in July I paid off $3247, thereby meeting both my minimum monthly goal of $2500 and paying off more than my desired goal of $3000 per month! I still have some catching up to do though since June’s progress was so dismal. I need at least a couple more months of paying off more than the desired goal to be fine again.

In great news though, I met my goal of paying off $30,000 in one year! I paid off $31,460 of debt from July 2013 to July 2014! So I am on track, actually a little ahead, of my goal to be debt-free five years from July 31, 2013!

I am extremely grateful that I was afforded the ability to be able to pay down so much in one year, while still living my life in a way that worked well and was enjoyable for me. I love this feeling of having met a goal. Believing that I can fly does get me places! I pray and hope that next year I will be in a similarly joyful position when it comes to my debt reduction progress!