I’ve been feeling too lazy in the last few days to bother going out much even though I’m on vacation over the Holidays. Granted, the record-breaking 46-centimetres (18-inches) snowfall in only 15 hours over Montréal on the 27th has made going out unappealing, especially since the City expects it will take more than a week to clear up the mess, which means driving and parking around town is a total nightmare.
Still, I’m a bit at a loss to explain why I’ve been putting off going to the Musée des Beaux-Arts de Montréal to see an exhibition I really want to see: Il était une fois l’Impressionnisme. After all, this city does have a completely underground subway and I live only two blocks from a station! But the mere thought of having to bundle up to brace the cold and putting on my heavy and uncomfortable winter boots is enough to make me say to myself, “Nawh…”
So what I have been doing instead?
Well, aside from going to my sister’s for two days over Christmas, I’ve done some reading online. I’ve done a few minor but helpful updates on the web application we use at work. (I consider that stuff more of a hobby than actual work.) I’ve watched some TV. I’ve called a few out-of-town friends. But mostly, I’ve rejigged yet again my budget spreadsheet, which is leading me to seriously question my sanity …in the sense of saying to myself, “Maurice, you’re obsessing over this thing!”
But I think my reasons for coming back to it stems from the fascination I hold as I assess what I’ve accomplished thus far.
- The October 2011 version of my budget was so opaque in comparison to my November 2012 version that it felt like a runaway train. It seemed to work although I didn’t understand how or why, but then I had to make several corrections when it derailed a little bit. In my newest version, however, the Summary tab matches up to the penny at all times with my actual bank balances, which eliminates all confusion and ambiguities.
- According to this August 2012 Globe & Mail article, “the average Canadian’s non-mortgage debt reached $26,221 in the second quarter of 2012, up $192 from the previous quarter,” a level the article calls “a new record high.” I seem to recalll that, when I did my first serious budget in a decade shortly after I started my job in March 2006, my debt was about 125% that figure stated for 2012. Being used to living on very little and not knowing if the job would become permanent, I achieved the remarkable: I brought it down to just 38% by January 1, 2008. Then, however, I did that crazy thing of getting married, so when I picked up the pieces (and myself) and restarted budgeting in October 2011, I was back up — far less deeply than in March 2006, at about 81%. Yet in only 15 months (i.e., in about one week), despite expensive curve balls, failures, and lawyer’s fees for the divorce, I’ll be at 33% and totally in the clear by the end of 2013 (probably much sooner given an important variable I haven’t factored into my calculations and should kick in by early spring).
- I keep coming up with creative and flexible ideas not only to accelerate this debt-elimination plan but also to actually build some savings and to find ways of eventually contributing more towards retirement. Basing myself on the principle of “pay yourself first,” I allow myself a lot of wriggle room on every paycheque — so much so, in fact, that during cold winter months when go out even less, I end up not spending all my “allowance.” So, instead of spending it during the next period, I throw whatever excess — even if it’s only 10 bucks — into debt servicing or savings. It’s amazing how quickly a few dollars here and there add up quickly!
I’ve said it before, but this budgeting thing is not a chore but an ultimate act of optimism for me by virtue of looking years into the future. I’m fortunate in that there’s enough coming in, but the discipline budgeting imposes is allowing me to see some fabulous options in front of me.
- I should be able to pay for my next car in a few years out-of-pocket, which would also be less expensive since many car dealers give a considerable discount on a cash purchase.
- Since I only get three weeks of vacation time (which is not enough) until I reach 10 years of seniority at work but my employer allows me to buy up to five days of vacation time per year, I will soon be able to effortlessly afford such a purchase.
- Going forward, I will always have savings to cover vacation expenses “as I go” rather than putting them on credit and worry about paying later, which is what got me into debt in the first place (aside from the fact I had no choice but to live on credit prior to March 2006).
- I can also think about making big purchases like air-conditioning and furniture without getting back into debt, or at least not on a long-term basis. That’s how I managed to buy winter tires and a new suit in mid-November and had them paid off by Christmas.
- And best of all, I project that in only three years, if nothing goes extraordinarily wrong, I could have from six to nine months of clear salary sitting around, building a bit of interest but being readily available should some personal disaster occur.
The only grey cloud in this sky filled with silver linings is that purchasing a condo in Montréal remains out of my reach. I’d need to make $15K more a year to even scratch the entry level and I sure as hell ain’t going to get myself a(nother) husband just to make a condo happen, so after the extensive number-recrunching I’ve done, I’ve not only stopped even entertaining the thought but also stopped feeling any regret about not being able to achieve that one goal, for really, in all other respects, I’m feeling incredibly empowered and optimistic financially for the second time in my life.