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Sunday, September 14, 2014

Paying off that student loan once for good

I currently have a $1 300 available in cash, but I didn’t do anything with it so far – which is very unusual. I made a very painful decision: to pay my student loan by the end of October of this year. The balance of my student loan is of $3 147. Its quite a bit of money, but not that much either. I find it painful to pay off my student loan because its money that I won’t be able to invest inside my TFSA and I didn’t invest in something new in quite some time. My latest investment in Stantec Inc. (STN) doesn’t count at all because it was made inside my RRSP.

I had in mind to pay off my student loan but I never been really super enthusiastic over the idea. But I am now very serious about it. Currently, its $98 every month that goes as payment on the student loan. If I can erase that debt and leave a 1k in my bank account, I will be saving $101 per month. $101 is quite a lot of money to get in term of dividend money, its the reason why I decided to pay off my student loan and later on in November, I will have a 1k that will be laying on my bank account.

Following what, I will only have my rent, grocery and extra to cover up, all extra money will be put on my margin account and/or new investments. By the way things look now, I could only have 10 years left to do on the workplace. Not that I expect to retire at 44, but I want to have the choice to retire or not at that age, and please trust me on that one, I really don’t want to work until my late sixties… Or if I do, its because I will want to, not because I will have to.

Dividend investing is a good shit plan cover off. A shit plan is something you put on place in case shit happen, like a lay off or any kind of other shit that could happen. And the Canadian stock market is a good place for shit plan. The idea to have investment working for me for the rest of my life is just terribly sexy and I cannot wait for my non-registered portfolio to hit on the $150 000 value. And the Dividend Girl will be forever and employers could only kiss me good night.

3 comments:

Anonymous said...

Well stated Dividend Girl. I've been following Derek Foster's dividend 'shit' plan for years, and I can tell you every year I get raises from my stocks. That's why at work I never complain about not getting any raises while all my co-workers are like complaining chickens.

Cheers to you and Derek Foster!

Mark

Cntrysky said...

I paid off my student loans (Ontario and Canadian) years ago. It is nice to have that extra money to put towards something else. I don't blame you thinking that you should pay it off. Who wants to pay interest on a loan? I can't wait until my car is paid off (and especially the mortgage). That would be an extra $500 + an extra $1600 per month to put towards investing.

Art Coleman said...

Funny girl.

 

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