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CMF

I am curious to know what you did (if anything) when you became Debt free?

I have been debt free for just over a year now.. and I basically moved all my debt payments into my RRSP and TFSA funds.. but surely someone has done something more exciting then me?

:smilet-digitalpoint
 

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Spent several years debt free...then went back into debt and invested in more real estate. Been in debt ever since, but it's a different kind of debt, none personal.

The past few years, because there hasn't been a lot of opportunity in real estate, I've been running out of debt again...but I'm always working to try to get back into debt.
 

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When I got out of debt (including mortgage), I put aside money every paycheck into a "play" account. It wasn't much 10% of my income, but that money is meant to be spent on frivilous things that will bring me joy. So maybe I want to buy some expensive sporting equipment, as long as I have money in the play account, I do it and don't feel guilty. As a natural born saver, I could have the tendency to save everything, so this forces me to enjoy a little of it.
 

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I'm still in debt unfortunately (mortgage) but as soon as we're debt free the mortgage payments will simply get shuffled into maxing out TFSAs every year (ASAP or faster each year than now), then maxing out RRSPs (until no room left), then filling up the non-reg. account as much as possible.
 

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CMF

I am curious to know what you did (if anything) when you became Debt free?

I have been debt free for just over a year now.. and I basically moved all my debt payments into my RRSP and TFSA funds.. but surely someone has done something more exciting then me?

:smilet-digitalpoint
purchased 126 acres of land and second house plus retirement at 56,was free of debt in 1994,22 months to full retirement
 

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Spent several years debt free...then went back into debt and invested in more real estate. Been in debt ever since, but it's a different kind of debt, none personal.

The past few years, because there hasn't been a lot of opportunity in real estate, I've been running out of debt again...but I'm always working to try to get back into debt.
I did similar. Plowed my money towards building a real estate portfolio. Ramped that up in about 7 years. Quit my job. Live of the income. Travel the world. Hit all 7 continents. 26 countries and both poles.

That's not to say I don't work. After 3 months of living off the assets (I was only 28 at the time) I got itchy. Life needs a purpose. So I started my part time business and my wife found the job of her dreams here in Thailand. Been here 3 years now.
 

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Discussion Starter #11
When I got out of debt (including mortgage), I put aside money every paycheck into a "play" account. It wasn't much 10% of my income, but that money is meant to be spent on frivilous things that will bring me joy. So maybe I want to buy some expensive sporting equipment, as long as I have money in the play account, I do it and don't feel guilty. As a natural born saver, I could have the tendency to save everything, so this forces me to enjoy a little of it.
This is exactly what I want to do.. have that money to spend set aside on absolutely wasteful items..

one day lol
 

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I did similar. Plowed my money towards building a real estate portfolio. Ramped that up in about 7 years. Quit my job. Live of the income. Travel the world. Hit all 7 continents. 26 countries and both poles.

That's not to say I don't work. After 3 months of living off the assets (I was only 28 at the time) I got itchy. Life needs a purpose. So I started my part time business and my wife found the job of her dreams here in Thailand. Been here 3 years now.

Wow.. how did you accumulate this much wealth by 28 to live off if ?
 

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I went into debt in my early 30s to buy a modest home after saving up for a big down payment. I paid off that mortgage in 2 years. After that, I had 15 debt free years and saved like crazy in my RRSP and non tax sheltered accounts. In 2007 I went into debt again to start a rental property portfolio. My maximum debt was in 2010. I was able to continue saving during this period. My debt is now only 20% of the maximum and I expect to eliminate it within 5 years. As I am now retired, I do not plan on taking on any additional debt.
 

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Wow.. how did you accumulate this much wealth by 28 to live off if ?
3 Reasons:

First, I was young and single making a reasonable income and when I wanted to be "hardcore saver" I could plow about 60% towards a down payment on a new home. I started when I was 20 or 21 (can't remember lol).

Second, I bought at a good time. This was mainly luck. My first property gained 80% value in about 5 years. It's been stagnant since.

Third, I combined effort and knowledge with money and leverage. Most people invest unleveraged in the stock market by putting away a few hundred every month and then forgetting about it until it's time to meet with their advisor once a year (at best). I worked my full time job, then went and renovated an apartment for 6 hours every evening, or kept my books, or cut grass, or showed apartments. I leveraged my properties heavily at first (something I'm glad people can't do now because it's more dangerous than it is worth), and made sure I paid attention when hard knocks taught me a lesson.


That said, it's a good thing my wife and I started working again because shortly after, our living expenses changed. At 28 years old I may have had the foresight to invest early and put in the energy...but I didn't have the smarts to realize how life changes and along with it, so do your expenses :)

If I could go back and do it again, I wouldn't consider myself "financially free" until I had at least 25% more income than expenses plus enough to keep my investments growing on top of that (so closer to 50% more income than expenses)
 

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I went into debt in my early 30s to buy a modest home after saving up for a big down payment. I paid off that mortgage in 2 years. After that, I had 15 debt free years and saved like crazy in my RRSP and non tax sheltered accounts. In 2007 I went into debt again to start a rental property portfolio. My maximum debt was in 2010. I was able to continue saving during this period. My debt is now only 20% of the maximum and I expect to eliminate it within 5 years. As I am now retired, I do not plan on taking on any additional debt.
Well done Heyjude!

You don't happen to do anything in the Victoria Area of BC do you?
 

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I want to [...] have that money to spend set aside on absolutely wasteful items.
I have found that this doesn't work for me. Eventually the "play money" account has real money in it, and I couldn't bring myself to do anything remotely frivolous with it. Eventually it became FTS and BCE shares and my truck is still a beat up rattletrap.
 

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We sold our boat to pay off our home mortgage. Then used the extra cash to buy a smaller boat ;) After that, I don't recall, but our savings did grow.
 
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