As I posted last week, I’m going to be debt free by the middle of August! Whee!! This is super exciting news and I am so so so so so happy to have finally achieved this milestone. However, as I’m sure you noticed, I’m also not really sure what to do next now that I have all this extra room in my budget. I’ve got a few thoughts so far:
- Give myself a small cost of living increase, since my cost of living amounts have been stagnant for the past 2 years.
- Top up my emergency fund, which has gotten a little low.
- Start saving a little bit for travel. It’s definitely something I want to do more of.
- Increase my RRSP contribution amount from 1.4% of my gross income to 5% of my gross income. Why not higher? Well, starting next month I start contributing to the pension plan at work, which automatically deducts 5% of my pay, puts it in the pension plan, and adds a matching 5%. So I have the basic 10% of retirement savings covered, but I want to be saving a little bit more than that.
- Start saving up for a down-payment for a condo or house.
Retirement and a house are goals that are a few years away yet. So, in the mean time, I’m starting to research what are the best investment vehicles to put that money in. I don’t have any conclusions yet but I’ll let you know once I do.