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Starting off on the right foot

5276 Views 14 Replies 11 Participants Last post by  specialk
Hi all,

I'm looking for some advice on how to make sure I start off my financial journey on the right foot. I graduated about 2 years ago and have worked hard to save money by living at home. I'm looking to move out next year (spring/summer) in the KW area.

Some basic info:
Salary: $70k
Savings: $55k (ING savings acct)

Investments (80/20 split of equity/bonds in index funds)
RRSPs: $13k
TFSA: $5k
Non-registered: $12k
Monthly investment purchases: 28% of gross income

I'm debating whether I should look to rent or buy when I move out. I'm skeptical of buying a house (around $250k in KW), because it would require me to reduce my recurring investment purchases (plus the potential instability in the housing market). I'd like to live in a nice place, so it would be around $1000-1100/mo for rent. I could look at buying a condo (monthly cost not much more than renting), but I'd worry that I would not want to live there long enough to make it worth all the fees when I need to sell it.

I know the early years can have a big impact on my financial future, so I look forward to any advice that you can share. I think one of the things I really struggle with is trying to balance saving for the future with living for today. Currently, a large part of me just wants to invest like crazy and accumulate a huge sum of money, but I wonder if later in life I won't regret spending more when I was young.

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DrStan has very good advice.

Rent for a while, get your independence, and stay mobile. Mobility in youth can be very valuable. If you've got a chum across town, sharing a 2-bed for a bit could be both a lot of fun, and cheap.

And keep saving.
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