Navigating Debt and Expenses: A Journey Towards Financial Freedom

I hope you haven't encountered any issues with TD's recent difficulties regarding direct deposits and other matters. Speaking from my own experience, I didn't bother checking my bank account for my pay because I knew that discovering it missing would have caused unnecessary distress, even considering TD's ongoing problem. However, I did verify it yesterday and happily received my paycheck, confirming that everything is now in order. Rest assured, things are back on track.

In my perspective, it's essential to acknowledge that such issues can potentially arise with any financial institution. It's important to address any imaginative scenarios that may have crossed your mind: situations where you can't access your funds, your cards aren't functioning, inability to withdraw money from ATMs, payment rejections using credit or banking cards, unexplained disappearance of funds from your account, difficulties with e-transfers or direct deposits as seen recently, and even the threat of cyberattacks. While there's no need to panic, it's prudent to recognize that any of these scenarios could potentially occur.

To safeguard yourself against these unforeseen circumstances that are beyond your control, it's advisable to have some cash on hand. While it may not be ideal, I won't disclose the exact amount I keep, but I recommend having a reasonable stash of several hundred dollars in $20 bills and some $10 bills. This way, you'll have a backup in case of emergencies.

Almost a year ago, on July 7, 2022, you may recall the significant Rogers outage that left millions without internet and cellular services. This outage had far-reaching effects, impacting government services, payment systems, and even emergency services like 911. One of the major issues during the Rogers outage was the disruption of payment systems. While I don't recall if credit cards were still functional at that time, using Interac was certainly not possible.

In addition to keeping cash on hand, I maintain multiple banking accounts with different institutions as a precautionary measure. I allocate a portion of my savings across these accounts, prioritizing accessibility over potential interest gains. This way, I ensure that I have funds readily available when needed.

This month of June is an exciting one as it brings three paychecks, which is always a welcome occurrence. While I haven't made any recent new investments, I have focused on reducing my margin debt due to the current interest rate of 8.25% on my margin account. I've significantly paid down my margin debt, which now stands at $37,921.01. Although it remains a substantial amount, it's far from where I once was. In the past, when interest rates were lower, my margin debt had surpassed $100,000. While I don't take pride in that fact, it serves to highlight that I had utilized margin and benefited from it. However, the increased interest rates have changed the landscape, limiting my financial freedom. I can no longer make unrestricted decisions with my money. Although this higher interest rate keeps me grounded, it's not necessarily a negative outcome.

I am approaching my 43rd birthday, and as I grow older, I find myself longing to eliminate my margin debt. While I do declare the interest earned on that margin as a financial fee on my tax income, the returns are not substantial. Therefore, the urgency to pay off my margin debt persists, despite any reluctance I may have. Currently, I can only afford to make a $200 payment towards my margin account, primarily due to unexpected expenses like two recent dentist appointments, which cost me over $760 out of pocket. There is a possibility that I may require jaw surgery in the future, although nothing is certain at this point. Health professionals diligently perform their duties, but being of Acadian descent comes with certain genetic peculiarities, including some visible defects. Unfortunately, the issue with my jaw falls into this category of uncertainties. In various aspects of my life, I tend to be fortunate in my misfortunes, and my jaw situation is just another example. Hopefully, it turns out to be nothing significant, but I am still required to pay $450 for a necessary medical procedure, which is completely unacceptable. Fortunately, apart from a mild case of asthma, I don't have any major health problems.

It's not a tragic situation, but my initial plan was to make a $1,000 payment towards my margin debt instead of the smaller $200 payment, which brings it down to $37,721. I believe I can reduce this debt further to $27,000 by the end of the year, with the possibility of paying off the remaining balance in 2024. This would make me debt-free just in time for my 45th birthday in... 2025. My primary focus now is to diligently pay off my margin account debt while cutting down on expenses.

Since my arrival in Montreal, I have spent a considerable amount of money. After spending a couple of months in New Brunswick, I indulged in some shopping, dining out, and various activities upon my return to Montreal. I recently made a payment of over $2,000 on my credit card, but I had anticipated these expenses when I came back. Additionally, now that I live alone, I no longer share the grocery bill with my old folks. I must admit I like the calmness of my apartment. When I am at home, it's like we are 10 people living together always so noisy and full of life, while we are just 3. I must admit, I miss them from time to time.