| Mortgage Free - Finally - Click HERE for Original Thread |
| TrevorK |
Well, the day has finally come for me. Ever since I moved into my house 2 years ago I've been working towards making it mine, all mine, and not the banks.
With today's paycheque I've finally been able to get enough together to pay my entire house off. It's been a long two years with a lot of hard work and now it's all payed off. The feeling that you get when you know you can do whatever you want because you don't have a need for a high paying job is amazing. Working at McD's would pay all of my bills.
The biggest question on my mind is what to do next? Thoughts are racing - I want to travel, I want to buy a new car (The Q7 was looking pretty nice). The biggest challenge for me will be to stop saving as much and start spending some money on the toys that I want. It's a completely different mindset when you're saving, and I'm sure it's going to be a tough one to break out of.
There are been several people here that have helped me out along the way with answering questions, throwing out ideas, etc, etc... Just thought I'd say thanks. |
|
|
| Jord@n |
Big congrats! You've done really well for yourself and you're still a pretty young guy if I remember correctly.
Enjoy your financial freedom and this just goes to show hard work does pay off, I know you've worked two jobs and many hours.
:thumbup: |
|
|
| ChromeDragon |
Jesus. Can you help me pay off my place now? hehe
I'm guessing you make a LOT more money than I do though, so it's a little tough to make big payments. |
|
|
| ehos |
Congratzi!!!
Well done! Not many people can do what you've done in 2 years, let alone 25!
:blue:
Ok, now share with all of us how you did it and all the good details :)
Oh yeah, get working on your family, someone to share your good fortunes and fill that big house of yours! :) |
|
|
| Inzane |
Congrats!
Glad to hear you're finally ready to kick into a little spending mode. :thumbup:
People can't live their ENTIRE lives following wealthy-barber style financial plans to the letter without occasionally enjoying some fun and indulgence along the way. What good is a multi-million dollar nest egg if you die before you can enjoy any of it?
Anyway, back on topic, now you just have to have yourself a Mortgage Burning Party!! :beer: |
|
|
| ae1969 |
Congratulations! Not an easy task by far.
Not sure what you should do now??? It will be difficult for you to change your mind set. Once you are used to living on the necessities....... you find it hard to blow XXXX$ dollars....
Definitely travel. If you have the opportunity to go back packing .....do it. The world is a big place and edmonton is far from being the center of the universe.
And then.... find that special someone? get married? have kids?
IMO nothing in life is more rewarding than seeing the world through the eyes of a child. Who cares if you can retire at 30 or have X millions. In the end who will remember you and who will care that you were even on this planet?
Nice thing is now you have a big headache off your shoulders and can focus on things that really matter. YOU. |
|
|
| the_fornicator |
2 years? that's fucking insane. that's a lot of willpower too. good on ya.
as for my suggestion as to what to do with your money? I suggested you make yourself a regular at the strip joints around town. |
|
|
| WorkInProgress |
I guess my big question is, 2 years ago housing prices were reasonable, so what did you originally sign the mortgage for?
If you bought a house for $80,000 a few years ago, it's probably worth $200,000 - $250,000 now, but paying off $80K isn't all that impressive.
If you bought a house for $500,000 2 years ago, well then DAMN SON! Haha, pay that off in 2 years, you must have killed someone? Congrats! |
|
|
| MyGTR |
You asked what you should do now...
First, you definitely need to celebrate this success and treat yourself to something fun and frivilous. There is no point in working hard to not enjoy the fruits of your labour.
Second, (just my opinion) take out a home equity line of credit for a small amount...just enough to put down on a revenue property. Select a property that will pay the interest on the home equity line of credit and the mortgage so you aren't actually making any payments (your tenants do). Get all that money you have tied up in your home working for you!
Before long, not only will you have your own home paid off you will have a lot of equity in a second property which you can sell or leverage for more equity.
Great achievement, man. Congrats! :bowdown: |
|
|
| TrevorK |
| Thanks for all the kind words guys - it's been a long couple years and it's nice to be finally done, and to hear from people who don't think it was just a giant waste of time (like others I talk to). |
|
|
| TrevorK |
quote:
Originally posted by Inzane
Congrats!
Glad to hear you're finally ready to kick into a little spending mode. :thumbup:
People can't live their ENTIRE lives following wealthy-barber style financial plans to the letter without occasionally enjoying some fun and indulgence along the way. What good is a multi-million dollar nest egg if you die before you can enjoy any of it?
I agree 100%. I have a company pension plan, along with several investments that will all ensure I have more than enough come the ripe of age of 53 when I am eligable to retire without contributing anything further.
I'm going to try to shift gears, and after this year start spending some of my money, and spending my time on other things than work.
quote:
Anyway, back on topic, now you just have to have yourself a Mortgage Burning Party!! :beer:
Already in the works. I'm going to start getting a list of alcohol/food together, and write a note to pass along to the neighbours warning them of the potential rowdiness. And inviting them to join in. |
|
|
| TrevorK |
quote:
Originally posted by ae1969
Not sure what you should do now??? It will be difficult for you to change your mind set. Once you are used to living on the necessities....... you find it hard to blow XXXX$ dollars....
I've always thought that people who have out of control spending just don't have enough will power.
Well, I guess I get to put that to the test as I slowly try to stop my out of control savings.
quote:
Definitely travel. If you have the opportunity to go back packing .....do it. The world is a big place and edmonton is far from being the center of the universe.
This is a big part of my plans. The hardest part is I'd like to go with something, and none of my friends have enough money to go, or holidays.
.
quote:
And then.... find that special someone? get married? have kids?
Already found ;)
She graduates from UofA this year. I'm sure the rugrats will be happening within 5-6 years after that. Then I'll be posting on how broke I am |
|
|
| TrevorK |
quote:
Originally posted by the_fornicator
2 years? that's fucking insane. that's a lot of willpower too. good on ya.
as for my suggestion as to what to do with your money? I suggested you make yourself a regular at the strip joints around town.
The bank will know me by name when I come in daily for rolls of loonies :lol: |
|
|
| TrevorK |
quote:
Originally posted by WorkInProgress
I guess my big question is, 2 years ago housing prices were reasonable, so what did you originally sign the mortgage for?
Yeah - housing was a lot more reasonable back then.
I paid $180,000 for my house, which is now worth $390,000 (A neighbours with the same floorplan but a little smaller sold for $390,000 2 months ago) I'd say. I'm going to be getting the appraisal done shortly to increase my HELOC. |
|
|
| TrevorK |
quote:
Originally posted by MyGTR
First, you definitely need to celebrate this success and treat yourself to something fun and frivilous. There is no point in working hard to not enjoy the fruits of your labour.
I think you're absolutely right - and I'm trying to figure out what this should be. I'm thinking maybe something material, like a new TV or Pool Table. I'd love to go on a trip, but friends with no money makes it hard to get people to go.
quote:
Second, (just my opinion) take out a home equity line of credit for a small amount...just enough to put down on a revenue property. Select a property that will pay the interest on the home equity line of credit and the mortgage so you aren't actually making any payments (your tenants do). Get all that money you have tied up in your home working for you!
Already done!
I use a HELOC and leverage my home for investing. With working 80 hours / week I don't have much time to handle revenue properties right now, so I focus on getting my return through the markets.
Once I "settle down" and work a normal 37.5 hours/week I want to get a bit more into real estate to diversify.
Of course, this summer I'm trying to find a good rate since my Prime - 0.51% expires. I doubt I'll find any better than Prime, but who knows.
quote:
Great achievement, man. Congrats! :bowdown:
Thanks! |
|
|
| TrevorK |
quote:
Originally posted by Jord@n
Big congrats! You've done really well for yourself and you're still a pretty young guy if I remember correctly.
Yup - I'm a ripe old 25.
quote:
Enjoy your financial freedom and this just goes to show hard work does pay off, I know you've worked two jobs and many hours.
Thanks - that's the best part about the whole thing is that I don't do anything special, I don't have a vast education. But all I did was work hard, something anyone can do. |
|
|
| TrevorK |
quote:
Originally posted by ChromeDragon
Jesus. Can you help me pay off my place now? hehe
Sure, I'll send you over my brother to live in your basement suite - he'll pay you some rent every couple months or so :lol: |
|
|
| TrevorK |
quote:
Originally posted by ehos
Ok, now share with all of us how you did it and all the good details :)
Honestly, there's not much to what I did.
I worked between 64-80 hours/week for the past couple years to pay off my house. When I thought about buying something, I just told myself to wait 48 hours and if I still wanted it I'd get it.
I have it a bit easier than some, I worked all through school and had no debt or anything. No family to pay, no big bills to pay.
But really, I did nothing special. If I was smart, and just wanted money, I would have took a trade and been making much, much more money. I find it amazing how much those guys waste, how many live from cheque to cheque when they make that much.
quote:
Oh yeah, get working on your family, someone to share your good fortunes and fill that big house of yours! :)
Working on it - we've been going out for many years now, and it's all in the cards once she gets herself settled down from graduating and starting a career.
Hoping to get some more life experience before the kids come, we just need to find her a job whereby she gets a lot of holidays. I have almost 46 days saved up at work, and would leave to spend each one out of the country. |
|
|
| Flex |
| Congrats...paying off a house is a huge acheivment, especially at 25. I know people in the 50's that are still paying off their homes. We would have had ours payed off as well but we bought our store so we had to put that back a bit. But we will have our place paid off in less then 5. |
|
|
| LeadSled |
Congrats on the milestone, it's nice when all the hard work finally pays off. I'm sure you've heard this from your dad too, but if not, this is what mine always tells me. He says to have fun when you're young because as soon as marriage/children strikes you down, there's no more frivolous spending. The man owns a business that nets 7 figures a year and he still spends less on himself than I do, and I'm a student. I say you blow that extra money on something fun and completely irresponsible before the old lady reigns you in.
How about a project muscle car? They're great at soaking up that extra money... the billet connecting rods I ordered cost almost as much as this spring's tuition at the U :banghead: |
|
|
| Talon_66 |
Congrats!
Im hoping to buy my first house when I turn 25 in the spring. Wish I could do it as fast as you. |
|
|
| daytonagord |
I work in the trades and am just working myself ragged trying to get a down payment. but then when a starter home is over 300,000 and have less then perfect credit it is hard to get going.
good working getting it paid off so fast! I have a wife and kids already so that really slow the process down. LOL
enjoy your home man! |
|
|
| Inzane |
quote:
Originally posted by TrevorK
I worked between 64-80 hours/week for the past couple years to pay off my house.
Ick... that is not something I could voluntarily do.
All considered I have things pretty good for what is mostly a 40hr/week job. It has to be special circumstances for me to want to work extra. And given that my wife is of the same profession, its like my income is x2 so there's no real incentive to WANT to work that much really.
Time is worth more than money to me (Always has been, which is why I left a cushy job in Fort Mac years ago and took a paycut to move south). Time with my wife, my dog, my friends, my hobbies... That all has to factor in somewhere. |
|
|
| TrevorK |
quote:
Originally posted by Flex
Congrats...paying off a house is a huge acheivment, especially at 25. I know people in the 50's that are still paying off their homes. We would have had ours payed off as well but we bought our store so we had to put that back a bit. But we will have our place paid off in less then 5.
I'm actually thinking of, in 5-10 years, looking to do what you've done and go into a franchised-business. If it's something I can get the GF motivated in working, then she'd probably be more than happy to work there in the daytime.
I like the concept of having my own business - it's something that can truely reflect the amount of effort I put into it. Whereas with working for someone else, especially in the public sector, the effort I put in doesn't effect what I get out of it. |
|
|
| TrevorK |
quote:
Originally posted by LeadSled
Congrats on the milestone, it's nice when all the hard work finally pays off. I'm sure you've heard this from your dad too, but if not, this is what mine always tells me. He says to have fun when you're young because as soon as marriage/children strikes you down, there's no more frivolous spending. The man owns a business that nets 7 figures a year and he still spends less on himself than I do, and I'm a student. I say you blow that extra money on something fun and completely irresponsible before the old lady reigns you in.
How about a project muscle car? They're great at soaking up that extra money... the billet connecting rods I ordered cost almost as much as this spring's tuition at the U :banghead:
It's funny - my dad thinks the same way you/yours does. He's telling me to stop working so much and start enjoying things now.
I think I've inherited my work ethic from my dad, when he owned his shop he was there all the time working away and keeping track of all the guys.
Cars are one thing I'm going to get back into once I stop working these hours - before I did I was always painting cars, working on them, etc, etc.... I miss it, and would love to get back to it. Now it seems I only work on my car for maintenance-type things. |
|
|
| daytonagord |
| maintanace is for old people....modifications are for the young...and young at heart. |
|
|
| TrevorK |
quote:
Originally posted by Inzane
Ick... that is not something I could voluntarily do.
All considered I have things pretty good for what is mostly a 40hr/week job. It has to be special circumstances for me to want to work extra. And given that my wife is of the same profession, its like my income is x2 so there's no real incentive to WANT to work that much really.
Time is worth more than money to me (Always has been, which is why I left a cushy job in Fort Mac years ago and took a paycut to move south). Time with my wife, my dog, my friends, my hobbies... That all has to factor in somewhere.
I wholeheartedly agree with you - I've been slowly learning over the past couple year (You could say I'm a bit stubborn) that money isn't everything in life. Yes, you need enough to live comfortablely, and I think now with everything all paid off and the investments getting ready to start producing I'll be able to really take that to heart.
It's going to be a slow transformation - for me it's a complete lifestyle change to try and slow down. Right now I'm at 80+ hour weeks and after this weekend I plan to have it cut back down to 64.
Once my GF is graduated and settled into a career I think it'll give me some of the motivation I need to stop working this much.
It's going to be a long road to breaking this habit - I just know it. Most people probably don't realize how hard it is to change your lifestyle when it appears the answer is just to not work as hard (Which in our society most don't have a problem with).
People like you and SilverZ24 (There are probably others here like that, but I haven't talked to / read about them) are really who I would like to model my career life after. You guys both have great jobs which allow you (Financially and time-wise) to pursue what you want in life outside of work. Because my career isn't as lucrative as yours, I've had to put in a little extra at the beginning so that I can get to the "comfortable" point. But I'd really like to eventually, within a year (But, being stubborn it'll probably be 2) end up more like the two of you career-wise. |
|
|
| TrevorK |
quote:
Originally posted by daytonagord
maintanace is for old people....modifications are for the young...and young at heart.
I hear ya.
I buy the aftermarket stuff, I just never get around to installing it. I have a complete rear suspension for my Camaro, aluminum driveshaft, etc, etc... just waiting to go into her. Come to think of it, I've had the complete rear suspension for 3-4 years now (Because I remember moving it all over to my house from my parents place). |
|
|
| ehos |
STICKY!
I'm sick of seeing so many depressing, down posts, that I think this is one of the few (only?) positive posts on this entire forum.
You sacrificed for 2 years, now you get to enjoy 50 years+. It's the exact opposite of what people do now (party for 50 years and have nothing to show for it at the end).
My brother did the same thing, but after his 3rd house, he's kinda got stuck in the whole work mentality. It's all good if you take some time to enjoy what you've done.
(And you can travel by yourself you know, it's actually better sometimes because you learn things about yourself you can't when you're encumbered with other people sometimes...). |
|
|
| shawley |
maaaaaan what do you do??? to be able to pay off a house in 2 years thats not a trade? lol
working 80hours a week? damn i dunno if i could do it,
congrats man!
i'm 19 and by the time i go to buy a house a basic one is gonna be way to far outa my reach unless the market goes back down |
|
|
| TrevorK |
quote:
Originally posted by ehos
STICKY!
I'm sick of seeing so many depressing, down posts, that I think this is one of the few (only?) positive posts on this entire forum.
You sacrificed for 2 years, now you get to enjoy 50 years+. It's the exact opposite of what people do now (party for 50 years and have nothing to show for it at the end).
I think you're right - most people just party away, then have to deal with all the consequences (of having nothing). I have given up a lot of my spare time in the past two years for this, and it's nice to have something to physically show for it. Something that I can look at, and know that's what I have earned. It's a great motivational factor, because if I was able to sacrifice 2 years for this, there isn't much else I can't handle.
I wish we could have more positive stories here too about this sort of thing - financial freedom is within the reach of everyone who wants to work hard. I don't do anything specialized or anything that I am in demand for. I do an average white collar job and work towards doing my best at it.
Doctor? Lawyer? Dentist? You don't need any of them to be financially secure in life. And I'm a firm believer that financial security is a key to improving your quality of life.
quote:
(And you can travel by yourself you know, it's actually better sometimes because you learn things about yourself you can't when you're encumbered with other people sometimes...).
I think my girlfriend would kill me if I took a trip without her - she'd be too worried about the trouble I'd get into in say, New York, without her. She's already a little upset over the conference I'm going to try to attend for work next year in Vegas.
Hopefully when she graduates in a month she'll be able to find a nice job with good holidays. I'm not as worried about what she get's paid - I'm hoping she get's a job she is happy in and gets a good amount of holidays. |
|
|
| TrevorK |
quote:
Originally posted by shawley
maaaaaan what do you do??? to be able to pay off a house in 2 years thats not a trade? lol
I'm just in the computer field.
I wish I was a trade - I'm still kicking myself over that. With the number of hours I put in they'd be delivering my cheque to me in an armoured car :lol:
quote:
i'm 19 and by the time i go to buy a house a basic one is gonna be way to far outa my reach unless the market goes back down
Start small and work your way up.
I was able to get into a nice place that's worth more than average now because of market timing and a personal connection.
But I would have no hesitation purchasing a condo for awhile until I built enough equity to help get what I want. Or, to do what my friend did. He found a basement suite for 200-300/month, and just rented it while he saved. It was cheaper to rent it than it now is to pay his property tax bill on his new place. |
|
|
| stealth |
Congrats man!
Thats a big step in your life that you have accomplished and do not have to worry about.
I wish I was old enough to purchase a house when the market was descent and affordable.
I went to a mortgage specialist the other day to see what I could get. I could purchase a really nice new house, but in the back of my mind I know how much it really is worth... |
|
|
| jberger |
quote:
Originally posted by shawley
maaaaaan what do you do??? to be able to pay off a house in 2 years thats not a trade? lol
working 80hours a week? damn i dunno if i could do it,
congrats man!
i'm 19 and by the time i go to buy a house a basic one is gonna be way to far outa my reach unless the market goes back down
shawley get into a trade , trades are good money makers, i am in camp working min 84 hours a week , last couple have been 88 a week, my shift is 24-4 every thing is payed for even my fuel to get to fort mac and home, all i pay for is clothing , i might buy a bag of chips once in my rotation so i save mad cash!!!!!!
people can say i dont have a life but it will be worth it for me, my home will be payed off by sept this year, and then i relax for a couple of months
TrevorK CONGRATS man thats good to here that i am not the only one working insane hours |
|
|
| midnite |
damn i'm so jealous, i am your age but wasn't in a position to buy a house until now. it's gonna take me forever to pay one off!
congratulations :beer: |
|
|
| GQsmooth |
Man that's an awesome feat. My hat goes off to you..
But I could never do such a thing, it's just too much of a sacrifice for my lifestyle. Most people would say you should party as much as you can while your young, so you won't regret not doing this or that when you had the chance. But in your situation it looks like you've got your own set of goals and you've got your priorities straight, so...congrats! |
|
|
| TrevorK |
quote:
Originally posted by stealth
I went to a mortgage specialist the other day to see what I could get. I could purchase a really nice new house, but in the back of my mind I know how much it really is worth...
You've got the perfect frame of mind - you recognize what you can afford vs what the bank says.
I agree, I think houses are overvalued now as well (There is no reason considering our vast area that lots are so expensive). However, most don't seem to care and even with the slowdown in the oilpatch that is currently going on it's not really dipping down. |
|
|
| TrevorK |
quote:
Originally posted by jberger
people can say i dont have a life but it will be worth it for me, my home will be payed off by sept this year, and then i relax for a couple of months
TrevorK CONGRATS man thats good to here that i am not the only one working insane hours
I look forward to seeing your post, declaring the same thing, this September! |
|
|
| TrevorK |
quote:
Originally posted by midnite
damn i'm so jealous, i am your age but wasn't in a position to buy a house until now. it's gonna take me forever to pay one off!
congratulations :beer:
I wouldn't worry about it too much - with hard work you can have it paid off much sooner than you think.
All you can do is try your best, and if you do that you can be proud of yourself, regardless of what the outcome is. |
|
|
| TrevorK |
quote:
Originally posted by GQsmooth
Man that's an awesome feat. My hat goes off to you..
But I could never do such a thing, it's just too much of a sacrifice for my lifestyle. Most people would say you should party as much as you can while your young, so you won't regret not doing this or that when you had the chance. But in your situation it looks like you've got your own set of goals and you've got your priorities straight, so...congrats!
Yup - that's the other side of the coin, and valid as well.
Myself, I feel I'm still young enough (25) that now I'm able to go out and experience what I missed over the last two years, without any worry as to responsibility.
I plan to try and live it up - it's going to be tough to get used to it, but I'm going to give it a shot. Besides, this year I have to take 15 vacation days (Or I lose them), so I need to go somewhere. |
|
|
| Insomniac |
Congrats...
I say kick the roomates out (if you have any), buy yourself something nice, and take a big deep breath...
Time to cut back the work though... enjoy life.
I love working 37 hrs a week :D |
|
|
| WorkInProgress |
quote:
Originally posted by TrevorK
Yeah - housing was a lot more reasonable back then.
I paid $180,000 for my house, which is now worth $390,000 (A neighbours with the same floorplan but a little smaller sold for $390,000 2 months ago) I'd say. I'm going to be getting the appraisal done shortly to increase my HELOC. [/B]
Well congrats man! I'm super impressed, just don't go and blow all your money on hookers, and the white stuff! |
|
|
| 92_WhItE_H23 |
| congradulations man. thats one fuck of an accomplishment at your age.. i could only imagine how set i would be to never have to pay rent or mortgage at 25. Retiring at 40 is definatly in your reach and very very few people get that luxary.. ill be lucky to retire before im 60 lol |
|
|
| STiPWR |
Must have a pretty decent paying job still..
I don't think that I could pay off my mortgage with my old ladys income too in that time frame. Even IF I didn't spend a cent besides the essentials. |
|
|
| dance_of_curse |
| im about to start work as a first year plumber up north. all i can say is if you wanna get into trades..go to the union of which trade you want to work and join. im going to be making 17 an hour 12 hours a day...weekends are 3 days and start on friday which pays double time. so on an average weekend id make around 1200 alone...so for a 7 day week its a smidge over 2k. my friend knows a guy who cleard over 190k last year alone....but due to drugs/booze hes living check to check he spent 1k on thursday night alone...its sad...but...id have my ps2 and gt4 to bide my time.:) |
|
|
| stealth |
quote:
Originally posted by dance_of_curse
im about to start work as a first year plumber up north. all i can say is if you wanna get into trades..go to the union of which trade you want to work and join. im going to be making 17 an hour 12 hours a day...weekends are 3 days and start on friday which pays double time. so on an average weekend id make around 1200 alone...so for a 7 day week its a smidge over 2k. my friend knows a guy who cleard over 190k last year alone....but due to drugs/booze hes living check to check he spent 1k on thursday night alone...its sad...but...id have my ps2 and gt4 to bide my time.:)
Best thing to do is work as much overtime as you can to keep you busy.
When I worked out of town, I played GTA:SA and slept. On the weekends I came back to Edmonton. |
|
|
| dance_of_curse |
| well im not worried about drugs as i dont do anything and have no reason to...its just the other sketchy people...and i have a good slew of ps2 games...over 200 so i hardly doubt id be bored...plus...12 hours a day doesnt give much in the wake of time doing nothing:) |
|
|
| TrevorK |
quote:
Originally posted by Insomniac
I say kick the roomates out (if you have any), buy yourself something nice, and take a big deep breath...
With one being my brother and the other my best friend, I couldn't bring myself to do that. Hell, I might be 30 and they'll still be living with me. I could never turn my back on them like that.
Besides, it'll eventually be free babysitting :lol:
quote:
I love working 37 hrs a week :D
As I'm sitting here working 10 hours on a Sunday, thanks for rubbing it in!! :) |
|
|
| TrevorK |
quote:
Originally posted by 92_WhItE_H23
congradulations man. thats one fuck of an accomplishment at your age.. i could only imagine how set i would be to never have to pay rent or mortgage at 25. Retiring at 40 is definatly in your reach and very very few people get that luxary.. ill be lucky to retire before im 60 lol
Yeah - early retirement is definetely within reach. I don't know if I could bring myself to and reduce my pension that much (There's that savings mode mentality again).
Although what I might consider is, when I'm that age, taking a job whereby I have more "fun" and enjoy it more. |
|
|
| TrevorK |
quote:
Originally posted by STiPWR
Must have a pretty decent paying job still..
Yeah - my jobs don't pay too bad. Definetely not trades-type money, but not high-school diploma money.
quote:
I don't think that I could pay off my mortgage with my old ladys income too in that time frame. Even IF I didn't spend a cent besides the essentials.
Then tell the wife to start making more! I've already told my GF that we are going to need to start saving for my mid-life crisis cars because they're going to be expensive :D |
|
|
| TrevorK |
quote:
Originally posted by dance_of_curse
im about to start work as a first year plumber up north. all i can say is if you wanna get into trades..go to the union of which trade you want to work and join. im going to be making 17 an hour 12 hours a day...weekends are 3 days and start on friday which pays double time. so on an average weekend id make around 1200 alone...so for a 7 day week its a smidge over 2k. my friend knows a guy who cleard over 190k last year alone....but due to drugs/booze hes living check to check he spent 1k on thursday night alone...its sad...but...id have my ps2 and gt4 to bide my time.:)
This is exactly the route I would have taken if the boom was there when I graduated HS. For me, it's too late to adjust my lifestyle to accomedate this sort of work environment.
At work I deal with tradespeople daily, and have to always hear about the summer time when they go up north during their 2-3 months of holidays and come back with $10K cash (after paying all the taxes) for every month they are there.
What I've always wondered is what do they blow all their money on? When I talk to tradespeople everyone of them seems to know a bunch of guys who are cheque to cheque....How do you waste $2000 in a week, every week? |
|
|
| ChromeDragon |
quote:
Originally posted by TrevorK
This is exactly the route I would have taken if the boom was there when I graduated HS. For me, it's too late to adjust my lifestyle to accomedate this sort of work environment.
At work I deal with tradespeople daily, and have to always hear about the summer time when they go up north during their 2-3 months of holidays and come back with $10K cash (after paying all the taxes) for every month they are there.
What I've always wondered is what do they blow all their money on? When I talk to tradespeople everyone of them seems to know a bunch of guys who are cheque to cheque....How do you waste $2000 in a week, every week?
They drop it all on shit they don't need ... hehe, like most of us on these boards.
Once everything is a little more stable with my house here I intend to start upping the payments. I assume your investments had a fair amount to do with your being able to pay off the house so quickly, yes? |
|
|
| TrevorK |
quote:
Originally posted by ChromeDragon
They drop it all on shit they don't need ... hehe, like most of us on these boards.
Perhaps I've fallen too far into the savings mindset, but I can't see where I would even start to spend all of that.
I guess if they went to the bar nightly and stuff, and always got wasted.....
quote:
Once everything is a little more stable with my house here I intend to start upping the payments. I assume your investments had a fair amount to do with your being able to pay off the house so quickly, yes?
Actually, not really. All the money I've had leveraged/invested has remained untouched throughout the whole thing. I pay enough tax as it in in April, so I didn't want the increase when I withdraw money and pay capital gains. |
|
|
| dtjohnst |
quote:
Originally posted by TrevorK
Yeah - early retirement is definetely within reach. I don't know if I could bring myself to and reduce my pension that much (There's that savings mode mentality again).
Although what I might consider is, when I'm that age, taking a job whereby I have more "fun" and enjoy it more.
Something to consider is most poeople end up really bored when they retire. I know a guy who joined the OPP when he was 22. At 26 he transferred to the RCMP and bought into his pension. So he'd get his 25 years for max pension at 47. He paid off his house and his car and whatnot, kept saving up, and when he was 30, he took a 5 year leave of absence and travelled around the world. 6 months in France, 6 months in Germany, etc. Saw everything he wanted to see all in once chunk, then came back and went back to work. No he'll end up with full pension at 52, so he's figuring he might do that again when he turns 40, go back and visit all the friends he made, and he'll still be retiring at 57.
That's the advantage of being able to retire early....you don't have to. You can go do things while you're young that most people say they'll do when they're retired, but once they're 45 feel they're too old. |
|
|
| TrevorK |
quote:
Originally posted by dtjohnst
Something to consider is most poeople end up really bored when they retire. I know a guy who joined the OPP when he was 22. At 26 he transferred to the RCMP and bought into his pension. So he'd get his 25 years for max pension at 47. He paid off his house and his car and whatnot, kept saving up, and when he was 30, he took a 5 year leave of absence and travelled around the world. 6 months in France, 6 months in Germany, etc. Saw everything he wanted to see all in once chunk, then came back and went back to work. No he'll end up with full pension at 52, so he's figuring he might do that again when he turns 40, go back and visit all the friends he made, and he'll still be retiring at 57.
That's the advantage of being able to retire early....you don't have to. You can go do things while you're young that most people say they'll do when they're retired, but once they're 45 feel their too old.
I never even thought of a leave of absence from work - that actually sounds like a really good idea. I'm gonna have to keep that in mind. |
|
|
| daytonagord |
| I am in a trade and I can only get 80k a year as a licenced mechanic. |
|
|
| Insomniac |
I was thinking about this thread earlier today and was thinking about how Trevor did this:
- roomates
- working OT
- modest lifestyle
Being a salaried employee, and living in a small condo, I don't know how I could pay down my mortgage so fast. I could double payments, but that would still leave me with a 9 year mortgage (which isn't that bad at all!) |
|
|
| Markis |
Wow - congrats Trevork, you should be taking some time off to write a book on how you did it :)
Time for the Smith Manoeuvre! |
|
|
| Jord@n |
quote:
Originally posted by Markis
Wow - congrats Trevork, you should be taking some time off to write a book on how you did it :)
Time for the Smith Manoeuvre!
I'd buy it! :D |
|
|
| SilverZ24 |
Congrats Trevor! Damn that went fast!
Definitely reward yourself with something now (like a new vehicle). And good luck with finding that new balance between spoiling yourself and continuing to save. :thumbup:
I have managed to be without car payments for a few years (and that in itself is quite a relief) but I look forward to the day of not having to worry about that mortgage payment as well. :beer: |
|
|
| TrevorK |
quote:
Originally posted by Insomniac
I was thinking about this thread earlier today and was thinking about how Trevor did this:
- roomates
- working OT
- modest lifestyle
Being a salaried employee, and living in a small condo, I don't know how I could pay down my mortgage so fast. I could double payments, but that would still leave me with a 9 year mortgage (which isn't that bad at all!)
The catch was, I wasn't working OT. I was actually working a second job at straight time.
The hardest part for most people, who would want to attempt this, is to find a second job that they consider worth their time. |
|
|
| TrevorK |
quote:
Originally posted by Markis
Wow - congrats Trevork, you should be taking some time off to write a book on how you did it :)
Time for the Smith Manoeuvre!
I was in Chapters awhile ago and saw all the mickey mouse finance books, the ones that are geared towards people in a perfect world with a perfect job.
Most people think everything they want is out of reach, when all they really need to do is find a way to extend their ladder and grab onto their goal.
I'm already leveraging - I have about $120K leveraged into investments and the other day came up with an idea to make it even more tax efficient (Especially with the new tax laws of not having to convert to a RRIF until 71 it seems). I'm not sure how much more than $120K I want to leverage, with a pension and that already I'm pretty secure. |
|
|
| TrevorK |
quote:
Originally posted by SilverZ24
Congrats Trevor! Damn that went fast!
Definitely reward yourself with something now (like a new vehicle). And good luck with finding that new balance between spoiling yourself and continuing to save. :thumbup:
I have managed to be without car payments for a few years (and that in itself is quite a relief) but I look forward to the day of not having to worry about that mortgage payment as well. :beer:
Yeah - the new vehicle seems more and more likely as to what I want to get this year. I would really like a new winter car - the one I have is manual windows, manual locks, etc, etc.... I mean, it's more than enough to drive around in the winter with, but it'd be nice to have something a little more luxourious. I spent a good 4 hours at the Auto Show sitting inside new cars to really get a feel for them. I've never had a new car in my life, and I think it's time to spoil myself.
The other night I actually created a list of things I want within the next 3 years - where I want to go, what I want to do, etc, etc.... Even with budgetting to pay for a $30K wedding all by myself it seems like I'll be able to achieve everything on the list. The only real stumbling block in my list is the one I usually complain about - finding someone to travel with. I have 6 trips in the list (New York, Toronto, Vegas, Cuba, Europe, Mexico) and I'd still love to explore our continent more (LA, Miami, Chicago, etc....) as well. |
|
|
| ae1969 |
quote:
Originally posted by TrevorK
Yeah - the new vehicle seems more and more likely as to what I want to get this year. I would really like a new winter car - the one I have is manual windows, manual locks, etc, etc.... I mean, it's more than enough to drive around in the winter with, but it'd be nice to have something a little more luxourious. I spent a good 4 hours at the Auto Show sitting inside new cars to really get a feel for them. I've never had a new car in my life, and I think it's time to spoil myself.
The other night I actually created a list of things I want within the next 3 years - where I want to go, what I want to do, etc, etc.... Even with budgetting to pay for a $30K wedding all by myself it seems like I'll be able to achieve everything on the list. The only real stumbling block in my list is the one I usually complain about - finding someone to travel with. I have 6 trips in the list (New York, Toronto, Vegas, Cuba, Europe, Mexico) and I'd still love to explore our continent more (LA, Miami, Chicago, etc....) as well.
Great plan.
But.... you already have a travel partner........that one is called your wife. |
|
|
| TrevorK |
quote:
Originally posted by ae1969
Great plan.
But.... you already have a travel partner........that one is called your wife.
She just needs to find herself a job first - she graduates in a months time.
I'd like to just take off when she graduates, but the big problem is that she'll probably want to try and find a job as well, since it's right after graduation.
We'll see what she wants to do - I just know I'm dead if I go to Vegas without her... |
|
|
| Casanova |
| Soooo how did you do it Trevor? Other than saving and budgeting. Everytime you had an extra 200 or lump sum, did you just dump it on your mortgage? |
|
|
| TrevorK |
quote:
Originally posted by Casanova
Soooo how did you do it Trevor? Other than saving and budgeting. Everytime you had an extra 200 or lump sum, did you just dump it on your mortgage?
Honestly, I did it pretty ass-backwards.
For the 1.5 years I just put whatever was left over towards my house. For the last 6-8 months I actually had a budget and stuck to it.
Because I put the money towards the house every paycheque, I was able to see it disappear so that I couldn't spend it.
Also, what helped was the amount I worked. Don't get me wrong, I still wasted a tonne of money as I ate out for all my meals on the weekend, etc, etc.... However, during the week itself I wasn't spending any money since I was pretty much working.
Because my roommates gave me cash for rent, I actually haven't withdrawn cash in over 2 years. I just use their cash for spending money/fun money, and the only bills I pay out of my wages are CC/utilities/etc...
Overall, I didn't do anything special and didn't live a meagre life. It was just hard work, and saving money. I'm sure if I was only working 40 hours / week I would've been spending more. |
|
|
| Kiddo |
quote:
Originally posted by TrevorK
Honestly, I did it pretty ass-backwards.
For the 1.5 years I just put whatever was left over towards my house. For the last 6-8 months I actually had a budget and stuck to it.
Because I put the money towards the house every paycheque, I was able to see it disappear so that I couldn't spend it.
Also, what helped was the amount I worked. Don't get me wrong, I still wasted a tonne of money as I ate out for all my meals on the weekend, etc, etc.... However, during the week itself I wasn't spending any money since I was pretty much working.
Because my roommates gave me cash for rent, I actually haven't withdrawn cash in over 2 years. I just use their cash for spending money/fun money, and the only bills I pay out of my wages are CC/utilities/etc...
Overall, I didn't do anything special and didn't live a meagre life. It was just hard work, and saving money. I'm sure if I was only working 40 hours / week I would've been spending more.
nice job dude I'm in the same boat as you but I'm doing close to 94-96 hours a week. so I know what you mean when you say you were just working and never had a chance to spend any money, but some how I'd still find it really hard to pay off a house in 2 years even at 180,000. so teach me some of your secrets :).. unless you make a lot more then me lol I'm only bringing in close to 60k a year after the taxes cause if you do have any connections on a high paying evening job? |
|
|
| Inzane |
quote:
Originally posted by TrevorK
However, during the week itself I wasn't spending any money since I was pretty much working.
Because my roommates gave me cash for rent,
I can see how this worked out for you.
On the one hand, it'd suck having roommates for long periods of time, but on the other hand you were working so much you weren't home much so it probably didn't matter that there were other people around.
To sum it up, you basically made sacrifices, bigtime during that mortgage payoff period.
Having to deal/live/put up with roommates - sacrifice
Having to work major overtime or have two jobs - sacrifice
Not spend much money (on whatever) - sacrifice
That's a lot of sacrifice. |
|
|
| TrevorK |
quote:
Originally posted by Inzane
I can see how this worked out for you.
On the one hand, it'd suck having roommates for long periods of time, but on the other hand you were working so much you weren't home much so it probably didn't matter that there were other people around.
Exactly.
The roommates weren't of a huge help in the grand scheme of things ($700/month between the two), but it definetely gave me all the cash I needed for groceries, entertainment, etc... This way, I always had cash, so I didn't feel like I was sacrificing. It helped me keep my impulse spending in check because I only spent what I had.
quote:
To sum it up, you basically made sacrifices, bigtime during that mortgage payoff period.
Having to deal/live/put up with roommates - sacrifice
Having to work major overtime or have two jobs - sacrifice
Not spend much money (on whatever) - sacrifice
That's a lot of sacrifice.
Yup - it was a lot of sacrifice. The roommates weren't bad - one is my brother and the other my best friend. It would've been a lot worse if they were complete strangers.
That's probably the reason that most people don't choose the path I did - it isn't all peaches and cream. It does require work, and does require sacrifice. I think the key is to find the balance that you are happy with because it will be different for everyone. |
|
|
| EK9Hatch |
First off, I want to give you a HUGE congrats on your accomplishment! That is very very impressive. This is something that I gaurantee less than 2% of people will do.
You said you bought your place for 180k. I was just curious what you put down as a down payment? What was the actual mortgage you took out? Also, did you have a car payment during those two years?
Even paying 80k a year in your house is crazy impressive. You must make well over $120,000/year before taxes.
Anymore insight would be great, Thanks :thumbup:
Jamie |
|
|
| ehos |
The whole 'salary' thing and paying off the house is throwing me for a loop. I know TONS of self made people in sales/commission/self employed that made mad cash.
But SALARY (granted 2) is just blowing my head apart :) With 2 jobs and all that tax, jeez, HOW?
How much are you getting paid? (Sorry to be so rude). But the thing that always keeps salary guys in check is the number of hours they can work and taxes (doesn't matter how much you work, you'll just wind up paying more tax).
Self employed etc guys usually write off tons of stuff and get tax breaks, but how did you avoid the huge tax hits?? (You must be in the top tax bracket, with 2 jobs I don't see how you're not?)
Tell us your tax secrets! :) |
|
|
| TrevorK |
quote:
Originally posted by EK9Hatch
First off, I want to give you a HUGE congrats on your accomplishment! That is very very impressive. This is something that I gaurantee less than 2% of people will do.
You said you bought your place for 180k. I was just curious what you put down as a down payment? What was the actual mortgage you took out?
I put down $30,000 on the house. We adjusted the purchase price to $200,000, the seller gave me $20,000 and I only needed to put in $30,000 to make 25% equity. Hopefully that made some sense.
quote:
Also, did you have a car payment during those two years?
No - I have never had a car payment in my life. Everything has been paid for with cash.
They aren't all glamourous cars, but in the past before I got caught up with work I used to fix up damaged cars for myself, drive for a year, then sell for a profit. My father used to own his own bodyshop, so it was relatively simple/easy.
I'm hoping to have a car payment soon though ;)
quote:
Even paying 80k a year in your house is crazy impressive. You must make well over $120,000/year before taxes.
Anymore insight would be great, Thanks :thumbup:
Jamie
When I look back at my T4's and that, I notice that I did make quite a bit more than I've estimated. Up until now I've thought my income was 80K-90K. But you're right, looking at my T4's and assessments, it's over six figures. I never really paid much attention with the money just coming in :) |
|
|
| TrevorK |
quote:
Originally posted by ehos
The whole 'salary' thing and paying off the house is throwing me for a loop. I know TONS of self made people in sales/commission/self employed that made mad cash.
But SALARY (granted 2) is just blowing my head apart :) With 2 jobs and all that tax, jeez, HOW?
A giant tub of vasoline. Honestly - tax time is a huge crunch for me.
I do everything honest, and by the books. Because of the amounts involved I have actually avoided any sort of grey area where I might receive a ruling against me, and just went into the "definetely not going to be a problem" side of things.
Looking back, I could make things more efficient. I've disregarded incorporating and such because of the length of time I planned to work two jobs.
quote:
How much are you getting paid? (Sorry to be so rude).
With everything in total it's over six figures. I used to think it was lower until today, but I never paid much attention as the only time I add it up is tax time, and that's never a pleasent experience.
quote:
But the thing that always keeps salary guys in check is the number of hours they can work and taxes (doesn't matter how much you work, you'll just wind up paying more tax).
Self employed etc guys usually write off tons of stuff and get tax breaks, but how did you avoid the huge tax hits?? (You must be in the top tax bracket, with 2 jobs I don't see how you're not?)
Tell us your tax secrets! :)
You're absolutely right - the salaried employee has an uphill battle all the way. Especially one like me that doesn't have a union to demand crazy rates for OT and such.
I don't avoid the taxes - I just take what I've been given. At the beginning I would bitch and moan about all the taxes I pay, but I've slowly started moving towards accepting that it's a part of making money and that's that.
I'm partially kicking myself for not incorporating at the beginning of things, however with the time period I hope to be employed at two jobs I don't think it would have been beneficial. If this was going to be more of a permanent thing, or a 5+ year plan, then I would have definetely done it.
There were things I could have done, and some say should have done, to minimize my taxes. But I've heard accountants who also said that might get challenged because it's not a correct interpretation.
Now, tax planning on my investments is going very, very well right now. It's just that the income and deductions I wanted to make were more grey area according to most in the field, and I didn't feel comfortable gambling when the CRA changes 1% interest per month. |
|
|
| SilverZ24 |
| Salary does suck. Busy times of the year when I have to work a lot of overtime my paycheque is exactly the same as it is when I just work 40 hours. |
|
|
| Insomniac |
I'd like to know how much money you made at your second job compared to the first one. I don't think I'd be able to make even close to what I make, in a 2nd job... unless I'm on the streets ....
:D |
|
|
| daytonagord |
I work flat rate so I get paid for the amount of work I do in a day.
for eg. a job that book time is 2 hours, I get paid 2hours, sometimes I win and get it done in 1hr, sometimes I loose and it takes more then 2 hours, then when we get slow I am just hopping for work to show up even if I will loose time.
this makes it hard to budget and a 2nd job just won't happen for me I have a wife and 2 kids so my time with them is worth more then any job would pay.
congrats on paying it off so fast! I am having enoughf problems trying to save money at all for a downpayment or anything |
|
|
| RoB |
| Good job! I only have 23 years left on mine. But its affordable so I don't have any concerns. My car is paid off. Newer truck. All in good time. |
|
|
|
|
|
