Joe wrote
I did some back of the enveloppe math and it looks like the numbers seem to (almost) add up. With a 12% interest rate on LBP, a 850 usd/month interest should be around 80k usd. If you've been saving for 9 years, that's about 9k usd savings per year, and if you set aside 1600$ / months, this should add up nicely.
This is a really cool story about how savings can add up over time and give you a small war chest to give you security. Thanks for sharing Guitaret!
On the other hand, I wonder how you managed to set 1600$ aside each month. Given how expensive almost everything is in this country, I bet it must take great sacrifice on your part.
Hey Joe,
This is funny/odd that I am sharing my finance in details but I do have high respect to the members here and so here it is:
The interest was lower than that because I took the monthly maturity plan (I guess I wanted the quick option of cashing out) and the final capital was higher (120k).
Managing my finance:
The hardest part is keeping yourself modest and don't start buying stuff just because your income increased.
I am single but I do help in with the expenses at home.
Monthly (please note that this is an average):
In the last 3 years, my income is 3000$, = 2800$ after taxes.
Helping out with bills at home 500$: food (humans + cats), house repairs/accessories, cleaning, water/electricity/internet/phones bills
Car (old but well maintained 4 cylinder BMW):230$ (120$ on gas & 110$ on repairs & insurance/taxes)
Going out + clothes + gadgets + medical (very minor because I do not get sick very often): 500$
The remaining will be around 1600$.
Few times a year I pay some expensive bills. ex: 1000$ TV, 1000$ Treadmill, 5000$ helping out with our summer mountain house...
I have to be honest that recently I was worried about the cash I collected and sometimes I envied my friends who spend all their earnings and are worry free (in which they tried to help me by offering me to transfer them my bank credit of course). Having cash in the bank did not make me feel like I am financially safe, to be honest, and the worst part is that the worry took part of my time/effort that I could have used in self-development or helping other people.