We’re a fraction of the way there

Well we now have $2500 in the bank towards our home deposit! That is one-sixth of the way towards our initial aim of saving $15,000. We had planned to put that down as a 5% deposit on a home, and use the $7000 first home owners grant towards fees. However, the subprime market problems over there in the US are affecting the share market here, which has resulted in the first of what is predicted to be several interest rate rises. So we have been thinking that we should really have $30,000 saved, to reduce the amount we have to borrow so that an interest rate rise has less of an effect on us.

However we are in two minds about the whole thing, especially given the way the housing market continues to rise. So we are not thinking about it too much …. just plugging away at the credit card debt and saving each week.

The best part of being one-sixth of the way there is that in two weeks’ time, we’ll be more than one-fifth of the way there ($3000 saved). See how I continue to find ways to make myself feel good about this!

I have to admit, I have never had $2500 in cash in the bank before … though it doesn’t really count yet because we still have the credit card debt, which is currently higher than our cash supply. However, in  a couple of weeks’ time when the government rebates arrive (just in time for the election – funny that!) we will be credit card debt free!!!!

US? CREDIT CARD DEBT FREE?

Depending on how much we receive, it might push our emergency fund up to $1000 too.

Isn’t it amazing how things can go uphill and downhill at the drop of a hat.

Meanwhile, I also had a good talk about business and personal finance with one of the general practice (family practice) doctors that has been teaching me. He told me about the income I could expect as a GP and how I could expect to be able to work flexibly for a good salary (any salary looks good to me at this point!). Seriously though, I was very happy with the expected income, but more so he impressed me because he talked to me about a lot of the same stuff that we talk about here in the blogosphere.

He told me how he is working extra hours and trying to sink his earnings into shares etc while he is younger and without a family yet. He talked to me about having concrete goals, and one of his was to have a passive income of $100,000 a year by the time he was 40. He said he wasn’t on track to achieve that yet but that he was going to be a hell of a lot closer to it for trying. In his words, I think he said “oh boo hoo if I’m 44 before it happens”. He wants that so he can continue to do his job for the love of it, but also be able to survive comfortably without an income if it’s ever necessary. And he wants to be able to spend time with his kids (when they arrive). So though at first glance he may appear a little money-focused, he is actually looking for the same thing as other people – security and stability for the future.

He really inspired me to continue my debt reduction efforts and buy a home, then work hard towards getting some money in an investment fund . As he was saying, the value of compound interest (when working for you, not against you) can not be under-estimated!!!

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1 Comment »

  1. […] enough though, it’s LESS than we had in savings around this time last year. This post is from August 30 2007, and in it I wrote all about how excited I am that we have $2500 in our […]

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