Recipe For Financial Freedom

After a disciplined frugal month, I was able to reduce my credit card debt and my personal/utility loan; I have reduced my cash balances to a minimum with no provisions for contingency/emergency. Currently I am not looking at my students loan as i am planning to get out of it by paying a lumpsum after a few months.

Networth increment is of 2.87% in the past 20 days(see my networth as on 10th October’07 here).
The important thing for me here is that total assets increased and simultaneously my liabilities decreased.

A very tough month ahead for me, as this is the month of festivals and Diwali (Festival of Lights) coming up on 8th of November, my birthday too is on 4th November. My next bike servicing/repair is also scheduled in the next month. I am expecting huge spending in the next month but I shall try as much as possible to remain frugal after all I have to get out of the debt as soon as possible.

The plan for next month

I am planning to remove my complete credit card debt.

I wanted to pre-close my personal/utility loan but I figured out that I shall be paying an amount equivalent to the amount that I shall be paying in installments over the loan tenure. So I dropped the idea.

Now, I am planning to take the interest free advance (which initially I planned to take for loan repayment) from my employer and shall be putting into the stock market. I know that this is a huge risk but my plan is to create more assets for myself and my salary shall service the payments for this advance.