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Tuesday, April 8, 2014

Once debt is gone...

My rental property debt will be gone come May 5th. I will be literally debt free but that does not mean that money is not going to be tight this year. Unfortunately my part-time work will be decreasing as I am told. There has not been a new proposal given to a prospective customer since the beginning of the year. All we have are the current customers and that may not be enough. So, I have tweaked my budget carefully and things do not look terrible, however, I will be extra careful and try to sock away the same amount of money each month as if I will still be paying the debt on the rental property.

I still do not have a new tenant. Once a new tenant moves in, I will be diverting that income to my retirement income.

I am looking at different types of saving accounts offered by my bank. I think, I will set up a 5 year saving account in USDs. I must set it up with a minimum of USD 500 and I must add a minimum of USD 50 per month. The interest rate is 2.60. I do have a USD savings account but this one will force me to put aside some money every month as if I am paying down debt. The question is how much money should I put in that account every month.

I will put the remaining amount that I will be saving in a savings account for easy access in case of an emergency or in case I need to supplement a given month's income.

I am also contemplating to look around for a new job. May be I should network a little bit to see what may be out there. In another post I will discuss my current arrangement and how it is tying me down in some respects so, that may be you guys can suggest a different approach.

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