Saturday, February 23, 2013

By the Numbers - Keeping it Simple

It's been a long time since I've talked about those all important NUMBERS: number of days until summer holidays when we can go east again, number of days until I retire and of course - the financial numbers - how much I'm saving and how much I need to pay off. 

Down the side of my blog....WAY down....are my two counters - and I am happy to report that there are only 124 days until summer begins with the annual trek to PEI and only 491 days until RETIREMENT!!  YOWZER!! Getting below 500 days is so exciting!

Below my two counters are the financials. I just updated them and this is where I'm KEEPING IT SIMPLE! There are only two financial bars now plus the one that I've completed which was the repayment of my Line of Credit last year. I could delete it, I suppose, but it was such a HUGE moment I'm not ready to let go of the reminder of one of the most significant financial accomplishments of my life! Oh yes, and the Line of Credit account is officially CLOSED!

It was either April or May of last year that I emptied every savings account I had (with the exception of RSPs) and paid off the remainder of my Line of Credit. It felt a little scary, no a LOT scary but I felt I could replenish my savings accounts pretty quick since I'd no longer be making payments on the Line of Credit.  Here it is 9 or 10 months later and I've resaved $15,000 plus I made a $2400 RSP contribution today. I am still on track to save $100,000 by the time I retire plus I am steadily reducing my PEI mortgage month by month. I've reduced the amortization period by 8 years over the past 2.5 years by paying an extra $42.00 twice a month and when I renew in August at a lower interest rate the amortization will be reduced even more.

Eventually I'll sell my condo and add that to my little nest egg of savings. People tell me I'm lucky because as a teacher I have a defined benefits pension tied to the rate of inflation. Believe me, luck had nothing to do with it. I've had hefty deductions taken off the top of my paycheques for over twenty years now. That's why my RSP room each year is only around $2400. I've put the maximum into my RSP that I'm allowed annually plus 12% of each paycheque goes into my pension plan.
I won't be living high off the hog. Retiring two years early means a smaller monthly pension.  Happily, my needs are few and my wants fewer.  I have no consumer debt and hope to have my PEI mortgage paid off within the next few years. I'll manage quite nicely on my monthly income and can look forward to getting more pension monies as I age - CPP (can begin to collect at age 60 or higher) and OAS at age 65.
 With low monthly costs I'll still be able to save each month to pay for home and vehicle maintenance as well as travel. I plan to have a barn built on my land and renovate my kitchen.

Best of all I plan to watch the sun rise every morning from my front porch - free of charge!


19 comments:

  1. You're doing sooo well and I just love your lovely little home in PEI!! Can I retire nearby and perhaps live in a granny flat? ;) lol!!

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  2. Now that's how I want to live when it's time to retire - no debt, little wants and a beautiful place with the views...You so deserve it all!!

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  3. LivingrichonthecheapFebruary 23, 2013 at 4:51 PM

    Wow, you are an extreme saver! Well done. Yours is a prime example of savings coming straight off the paycheck really works!!

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  4. Absolutely - can't spend it if you don't have it!

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  5. Thanks Lena! I kept my dreams modest and attainable - if I can do it so can you!

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  6. We may build a yurt for guests!! Come anytime :)

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  7. You are doing so well Jane. I envy your summer in PEI!


    Don't forget to take into consideration the amount our Teachers Pension gets reduced at 65. We unfortunately don't see the full benefit of CPP, as the OTTP gets reduced by a comparable amount.

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  8. Thanks Christie! It's good to have a plan:)

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  9. Congratulations on doing so well with your savings and having a plan that is quite reasonable to achieve. Retirement will be fun, but don't forget to save for a snow blower/generator so you can get out in the Winter months and stay warm when it storms. Our you planning on living in the house during the Winter? It might be fun to experience a big storm.
    Hubby can retire in 4 months! But I think he may work for another year or so.

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  10. Yes, I have plans to buy both of those items...I believe they are necessities. I am really looking forward to spending fall/winter/spring there - I've never seen my lilac tree bloom, seen our forest turn colour or experienced a nor'easter yet! There are a few other things to do too - grade our long laneway, update the septic system and so on. All in good time - I can see the light at the end of the tunnel!

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  11. wow! Less than 500 days before retirement? That's encouraging, right? I know what you mean about the pension. My daughter started teaching this year and they pull 8% right off the top for her 'pension'. I never realized they did that. It sounds like you are doing great on the savings end. I would leave up the PAID IN FULL for your LOC too. Quite the accomplishment!! :)!


    P.S. Will you update your sidebar with my new website? It's www.midlifemommusings.com. Thanks Jane!!!

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  12. You're on my blogroll but when I added your new url I got a message saying the date wouldn't show meaning I guess that when you write a new post you don't get bumped to the top of my blogroll, so I'm also following you now by email. I'll get this sorted one way or the other.

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  13. Hi Jane,

    thanks for the mention and I am so excited for you! Less than 500 days until you retire??? That is awesome! You have done a great job in preparation for your future at PEI!

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  14. No one is cheering you on louder than I am. I am SO proud of you and impressed by you!

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  15. You're a sweetie Sonya Ann! Thank you, it helps to be cheered on! There were years and years when I didn't have two cents to my name, so it feels good to be in the black finally!

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  16. I've done the best I could with what I had. It looks pretty modest compared to most but I'm happy with it and that's what counts :)

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  17. Hi Jane! trying to catch up on blogs - missed this one a lot!

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  18. Susanna! I was wondering about you - good to hear from you!

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Thank you for your comment - it means a lot to me that you read my post and are leaving a comment - you just made my day!