It has been a while I did not write any posts, but I am still on my journey of self discovery. I am doing my best to stay on track and not to get sidetracked.
One of my goals was to live debt free. In my last post about financial freedom, I have made a plan and started executing it to achieve this goal. I destroyed my credit cards, payed off due amounts on cards with smallest amounts, then I consolidated the rest of my cards into one bank loan to save on interest. Interest rate for most of credit cards is 25% other than monthly and yearly fees. I reconned if I pay only the minimum payment, it will take me forever to pay it off. Bank loan interest rate is much lower, mine was about 6.0%, which made a difference. Remember, every penny counts.
I am still keeping an eye on my expenses, stopped impulsive buying. If I decide to buy something I really plan for it, ask myself do I really need it. So I was able to save a portion of my salary every month, even more than the recommended 10%. I have saved 6 months salary and kept them aside as a buffer, or emergency fund.
I have bought a small apartment and invested very little money in mutual funds. In the same time I am very reluctant to invest any money in the stock market, but I am planning to start early 2020 after paying off my credit card and bank loan.
As for debts, I have paid off my student loan in full. I kept only one credit card that I used to pay for my travel fairs and other travel expenses. I decided to stop using my credit card and pay cash instead. I am planning to pay off my credit card and bank loan by November this year, three more months to go.
I feel very proud of myself as I got myself out of the black hole of debts. Not only that, I also managed to save some money in the form of cash and in a form of small apartment. After I pay off my credit card and bank loan I am planning to save more money that will be spent to buy some shares in the stock market and on vacations to reward myself after this big achievement.
My plan was very realistic, and can be applied by any one no matter what. I will be lying to you if I told you it was a breeze or that I was able to save one or two million dollars over the past couple of years.
If you are in debt, I hope my story will inspire you to get out of debts and turn things around. The only thing you need is to have the right mindset and start. Never give up no matter what. Sure you will get some set backs on your way, just keep focused and keep going.
Good luck.
Feel Good 