I have been battling a financial addiction since 2008. It has unfortunately gotten worse every year 😐 I just kept going back for more, and couldn’t help myself. The potential harm of this long term abuse came up in a discussion recently when a friend in Toronto asked me what would happen if I lost my job 😕 So I decided it was time to do something about it and take control of my situation.
The first step is to admit that I have a problem. So yes, I was powerless over my habit and my life had become unnecessarily complicated. But I can change. So today I have made the difficult decision to stop taking on new debt cold turkey, for the rest of the year 😯 This means I will only make new investments when I actually have cash on hand. Stephanie would be proud 😉 From now until January 1st, 2015 I will not write any more of those obnoxious posts along the lines of “OMG! Best opportunity evar! Borrowed $10,000 to buy new investment. LMAO. Gonna be rich! #Sweg!” As for my existing debts which sits at only $535,000, which includes a mortgage, lines of credit, consumer debts, and long term loans, I will continue to service those debts and make the minimum payments. I only pay about $1,500 a month on interest so it’s no big deal given I make about twice as much from my job 😉
I could even pay off all my existing debts today if I really wanted to by selling my farms and some under performing stocks.
If I did that I would probably get swamped by media requests and become famous overnight because it’s not everyday a bachelor in his twenties can buy a home in Vancouver without any financial help from parents or friends, and pay off the mortgage in just five years by himself, and be completely debt free, and still have a six-figure investment portfolio. Many people may not even believe my story, unless they read my past blog posts which demonstrates how I doubled the performance of the stock market last year, and how I turned a $20K investment into $60K in two years.
But I’m not going to sell any investments just yet because I don’t want to cut off my nose to spite my face. De-leveraging too quickly now could limit my future financial growth. Being debt free is a priority for many other people, but not me 🙄 What I really want is financial freedom, which requires stable income to come from valuable assets. This means selling those assets prematurely can actually be detrimental to this long term goal 🙁 It doesn’t feel right for me to reduce my investment capital during the growth stages of my career, and when the cost of borrowing is cheaper than dirt.
But taking a break from borrowing new money sounds prudent, so that’s what I will do for the remainder of 2014 😀 Abstaining from leverage won’t be easy though. Old habits die hard and I will probably be temped by promising stock charts and bullish analysts. But fortunately I update my fiscal situation at the start of each month so you guys can help keep me accountable. I couldn’t ask for a better support group than my readers 🙂 If it sounds like I’m about to give in you guys can talk some sense into me 😉
Random Useless Fact:
Females only make up about 2% of all firefighters in the U.S.