I was looking over our accounts tonight, seeing how we were
doing so far this month. I clicked on my TFSA, curious what the interest rate
is at… 0.60% Hmmm. I knew it was low but not that low. We make more interest on
the high interest savings account than my TFSA… I click on our LOC: 6.7%
I wonder over to G, let him know. After about an hour of
discussing we have agreed that I am going to withdrawal my entire TFSA, all
$8855.79 of it, close out my TFSA (and stop contributions) at our bank and pay
off our LOC. That will leave us with $1355.79 that I will open a TFSA
investment account with at Tangerine and restart my $200 biweekly contributions
(not skipping one if all the paperwork goes smoothly). Our goal for the rest of
the year will be to top up out Emergency Fund once again, but instead of the
$5000 we had before we want to increase this to $10,000 - we just feel more
comfortable with this number given our dogs health & owning a home.
A lot of decisions were made tonight, but I’m honestly
feeling really good about this. G even suggested once we get any windfall of
money and our emergency fund is starting to fill up we can do a lot more lump
sum payments to my TFSA to fill it back up. We definitely aren’t going to
inflate our life style since we both agreed we live pretty darn well on our
budget right now. I’m really happy with where we are going to be at the end of
this month. Pretty much a 6% return just by filling out a few forms!
Bye-bye car loan!!
- M
I am glad your loan is gone. I know how it feels having that debt calling out to you all the time. While neither was easy, I found myself much more motivated to pay off debt that I was to save. Very weird.
ReplyDeleteI've read a few different blog post with people saying the same thing: that paying off debt was easier than saving. I definitely think if we didn't have our savings automated that I would be in same boat.
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