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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.


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!


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.

Unknown said...

Funny girl.


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