A huge interest of mine, more so since studying, is personal finance. I’ve always gravitated to numbers, tracking, statistics it seems. I’ve watched YouTube videos, read books, listened to podcasts and followed many blogs and Instagram pages on personal finance. I have familiarised myself with both Dave Ramsey and Barefoot Investor methods. Unfortunately, I found neither of these particularly resonated with my way of living (or wanting to live). I think this is because I wanted something sustainable or practical to follow. Much like health and fitness or weight loss goals, I wasn’t looking for the quick fix, or a quick way to lose my debt. I wasn’t even looking for a one size fits all solution.
In one of my original posts, What’s in a Name? // Why I Started This Blog, I discussed how this blog was more than about a physical renovation of my house. It was also about ‘renovating’ my life, through living with intention, this is through awareness of my goals, my finances and my possessions essentially.
Although I am on a Debt Free Journey, this isn’t one of those blogs that will claim ‘I paid 100k in 6 months’, if this works for you, congratulations! I am very fortunate to be young and in the position I am, so perhaps this is my reason for my views on finances. My process is about finding something sustainable. I want these changes to reflect a lifestyle, so I don’t find myself making ‘careless’ financial decisions in the future. I want to improve my relationship with money. As previously I was on the ‘debt is always the answer’ road, savings has never really been my thing.
This leads me to the point of this post. Below is a list of my financial goals; both short-term and long-term.
Short-Term (A Year or Less)
- Pay out Personal Loan (car loan) OR;
- Refinance this Personal Loan (either into Mortgage or Lower Interest Option)
- Start making additional payments to my HECS debt (think Student Loan for my abroad friends)
- Pay 5% of my mortgage (if I choose not to refinance)
- Pay 15% of my total debt (currently at 5.26% paid)
- Save $3k for a holiday by 2020
- Create buffer of at least one pay packet (for emergencies)
Long-Term (Over a Year)
- Pay out mortgage by age 30 (2027)
- Pay out HECS debt by age 30 (2027)
It focuses a lot on clearing my already accrued debt. I have always been torn between the options of saving money or paying off debt. As I tick off these goals, I will update you with the new goals, in place of the old.
A good insight to my finances is the Minimalist Budget post, I discuss how I minimise expenses and maximise cash flow. This helps me focus on paying debts quickly. It’s important to note that since I started my relationship with debt started (age 18), I have always paid more than the minimum repayment. My financial position use to take quite a toll on my stress levels. In the past few years, I have learnt not too worry so much, however I still find that I seem to be ‘obsessed’ by it all. I choose to say aware.
What are your financial goals? Are you someone who became financially aware young or was this something that occurred later in life?
Baby Sloth x