Posted by Tim Stobbs on November 16, 2012
In my next article I wrote for Moneyville (which I don’t believe has been published yet), I comment on the fact that right after you pay off the mortgage there is no immediate impact to your life. The reality is you still need to go to work the next day and nothing changes until you start seeing your paycheque without those big payments coming out. Well that train has finally hit.
Yesterday was my first cheque without the mortgage and it finally has hit how very little of that money I need to pay my bills for the next month. Actually it works out that I can get by with just one of my two cheques every month to pay the bills. Yes that means we can now save over 50% of our take home pay. Life is good!
So I’ve already submitted some paperwork to do an extra lump sum contribution to my pension plan which should consume nearly all of my next paycheque. You might be wondering why I would bother with making an extra contribution to a plan where I can’t touch the money until I turn 50. Well I found out that really isn’t entirely true. While about 2/3 of the money is truly locked in, the remaining 1/3 is considered voluntary contributions and I can transfer those to an RRSP when I leave the company without the age restriction. Also my plan is so bloody big the fees with it come out to be comparable to ETF fees (aka dirt cheap).
Overall I’m off to work on a Friday with a big smile on my face. Have you ever had that issue with delayed reaction to a big change in your life? How long did it take to sink in for you?