Canadian Money Forum banner

61 - 80 of 92 Posts

·
Registered
Joined
·
91 Posts
Discussion Starter #61
Ok will do, thanks. I'll keep putting all of my extra money on the LOC. Should be able to get another $6-7k paid off on the LOC next month.
 

·
Registered
Joined
·
10,526 Posts
Ok will do, thanks. I'll keep putting all of my extra money on the LOC. Should be able to get another $6-7k paid off on the LOC next month.
The key is to pay down highest interest debt first., then the next highest interest debt when the first one is gone, and so on. So yes, put the excess to LOC buy down.
 

·
Registered
Joined
·
91 Posts
Discussion Starter #63
November update:

Still feeling very motivated! I'm picking up $1200/month of overtime, which is helping. I could do about $2500/month of OT, but I'm already away from home 16 nights a month in different cities all over the place with a pregnant Wife at home, so it's a balance. I wanted everyone's opinion on this: We haven't really treated ourselves in a long time....Just been focused on paying off debt and saving. I was thinking for Christmas and our birthdays, it would be nice to treat ourselves a little bit. I was thinking $250 for Christmas each, and $250 for each birthday....Which would be $1000 total. Is this a terrible decision?

Anyways, here's the November update:
Assets:
House - $270k
Condo - $155k
Chequing - $5400
Savings - $1304
Work TFSA/RRSP/Non-registered combined - 17 050
RRSP - $250
RRSPL - $17 900
Wife's RRSP - $500
Total Assets: $467 404

Liabilities:
Wife student loan - $4280
Student LOC - $7450
House Mortgage - $229 003
Condo Mortgage - $131 785
SUV Loan - $22 651
Car Loan - $2456
LOC - $39 000 (Yes, I know this is higher than last month....I made a mistake on my last entry...It was $39 300 last month....Going to pay off another $6-8k on it when I get my bonus this month)
Credit Card - $1715
Total Liabilities: $438 340

Net Worth: $29 064

Thanks for following!
 

·
Registered
Joined
·
10,526 Posts
No. There needs to be some reward to go with rigorously 'staying on track'. We always did that in some form, usually an inexpensive local vacation, in our early days when paying off student loans and a 2nd mortgage.
 

·
Registered
Joined
·
91 Posts
Discussion Starter #65 (Edited)
December update: One year in, and I'm really happy with the gains we have made! Our debt has gone down substantially, and our income has gone up quite a bit. At the end of the month, I'll have about $12 500 becoming unvested in my work TFSA and non-registered accounts, plus about a $1400 bonus at the end of the month, so by January, I hope to have the LOC paid down to about $15 000. My goal is to have all of our debt, except the SUV loan and mortgages paid off in the next 12 months. Thanks for following!

Assets:
House - $270k
Condo - $155k
Chequing - $1651
Savings - $1531
Work TFSA/RRSP/Non-registered combined - $14 857
RRSP - $250
RRSPL - $18 000
Wife's RRSP - $900
Total Assets: $462 189

Liabilities:
Wife student loan: $4250
Student LOC - $7400
House Mortgage - $228 310
Condo Mortgage - $131 336
SUV Loan - $22 200
Car Loan - $2173
LOC - $28 625
Credit Card - $1391
Total Liabilities: $425 685

Net Worth: $36 504
 

·
Registered
Joined
·
91 Posts
Discussion Starter #66 (Edited)
January Update: A bunch of my savings at work became unvested, and I was able to cash it out to pay off a good chunk of debt. We just had our first baby a few days ago, so this will reduce the amount of OT I can do, and my Wife is now on EI for the next year, while she is on mat leave. If I manage to do 8 hrs/month of OT, it will make up for her lost income. So I will just try to make the best compromise for being at home with the new baby, while controlling costs, and doing the odd bit of OT where it is convenient to do so. I was lucky enough to receive nearly a 100% raise compared to this time last year. So even with no OT, and my Wife being on EI, our monthly take home pay is still about $2500/month more than it was last year. My new years resolution is to reach $100k net worth by the end of 2020, and elimate the LOC, student LOC and my Wife's student loan. It will require continued penny pinching, but I think it is doable based on our performance over the last year.

Assets:
House - $270k
Condo - $155k
Chequing - $2672
Savings - $1908
RRSP - $5300
LRRSP - $17 493
Wife's RRSP - $1040
Total Assets - $453 413

Liabilities:
Wife student loan - $4230
Student LOC - $7400
House Mortgage - $227 633
Condo Mortgage - $130 896
SUV Loan - $21 524
Car Loan - $1890
LOC - $14 700
Credit Card - $1770
Total Liabilities: $410 043

Net Worth: $43 370
 

·
Registered
Joined
·
91 Posts
Discussion Starter #67
I've been working on cutting costs, and I made a major gain today with our cell phone bill. Our contract with Telus ended this month, and we were paying $129/month for both of us for unlimited calling/texting, and 8GB of shared data. I did some digging, and discovered that we were only using about 800 MB each of data, since we are pretty much always in range of WIFI. I decided to get our phones unlocked, cancel our service with Telus, and switch to Lucky mobile. We went to Dollarama, and paid $4 each for the Lucky mobile sim cards (the sim cards are $10 each everywhere else), and we each now pay $25/month for unlimited calling/texting and 1GB of data each (it's 500MB of data each, but we each got an additional 500MB for signing up for the pre-authorized payments). No data overage charges (it just goes to a very slow download/upload rate off 144 kbps once you exceed the 1GB), no contract. It's only 3G data speeds, but when I'm outside of WIFI, I only use data for checking emails, sending messages, some basic tasks for work etc, so we should each be able to easily stay within the 1GB limit. With tax for both of us, our cell phone bill is now $56/month. Savings of $73/month, or $876/year.

For internet, I have been calling my internet service provider every 6 months to continue getting my promotional rate of $75/month (tax included) for the fibre optic 150 MBPS internet (normally about $140/month), and so far, they keep extending that promotion every time I call them. We cut cable a while back, and just subscribe to Netflix, disney plus and amazon prime. Those three combined is still significantly cheaper than cable, allows us to get free shipping with amazon, and gives us more shows to watch than you could ever know what to do with.

One other thing I'm proud of with our cost cutting is a change we made with our groceries. We got a PC optimum card (we live right near a superstore), and I discovered that with a PC insiders subscription, we can get 20% back in PC points for all the money we spend of diapers and wipes. I got a referral code from someone, which allowed me to get the PC insiders membership for $75, instead of the normal $100. This is allowing us to essentially get diapers/wipes for much cheaper than even Costco or Amazon. It also allows us to use click and collect (PC express) without having to pay the pickup fee, which is great for my Wife, having the baby on her own while I'm away for work for 3-4 days at a time. It allows her to order online, and just park at the superstore, and an employee loads the groceries into the SUV, without her even having to get out of the SUV. It also came with a code that gives $10 off each of the first three orders over $50.

Over the last year, I have given a summary of assets, liabilities and net worth each month, but realized I haven't given a summary of our budget since I started this thread. I'll do that tonight. Thanks for following!
 

·
Registered
Joined
·
91 Posts
Discussion Starter #68
Here is the summary of our monthly budget:

Take home pay: $8400/month (While Wife is on EI mat leave, and includes $1290/month rent. This is assuming I don't pick up any OT.)

Expenses:
Car insurance - $275/month (can't negotiate or find better deals, because it's public insurance in Manitoba)
Car Payments - $749/month (will be going down to $467/month in September once the car is paid off, and we will just have the SUV to pay off)
Fuel - $110/month
Auto Service - $20/month (this is what we budgeted for next month since there are no oil changes etc....this is just for car washed next month)
Internet - $80/month
Mobile Phone - $56/month
Utilities - $228/month
LOC/Student LOC/Wife's student loan payments - $605/month
Entertainment - $100/month
Alcohol/bars - $100/month
Coffee shops - $20/month
Groceries - $500/month
Restaurants - $150/month
Gifts - $50/month
Pharmacy - $50/month
Home Insurance - $91/month
Home Supplies - $100/month
Mortgages (for house and rental condo, including condo fees and property tax payments on the house) - $2628
Baby Supplies - $150/month
Hair - $20
Pet food/supplies - $80/month
Clothing - $70/month
Hobbies - $40/month

Total Expenses - $6272
Income - Expenses = $2128. This is with no OT. If I pick up OT, I can usually add about another $1000-$1500. With the baby at home now, I'm going to be limiting the amount of OT I pick up.

I have been putting $75/week into our savings account, which I didn't include in expenses. It just gets transferred from chequing to savings automatically every Friday. The remainder of the excess money typically goes straight on to the LOC. Once the LOC is paid off, I will start paying off my student LOC, and then followed by my Wife's student loan. Once the car, and those three loans I just mentioned are paid off, that will free up an extra $888/month, reducing our total monthly expenses down to $5384, allowing us to save money at a pretty good rate, especially once my Wife goes back to work.
 

·
Registered
Joined
·
63 Posts
Here is the summary of our monthly budget:

Take home pay: $8400/month (While Wife is on EI mat leave, and includes $1290/month rent. This is assuming I don't pick up any OT.)

Expenses:
Car insurance - $275/month (can't negotiate or find better deals, because it's public insurance in Manitoba)
Car Payments - $749/month (will be going down to $467/month in September once the car is paid off, and we will just have the SUV to pay off)
Fuel - $110/month
Auto Service - $20/month (this is what we budgeted for next month since there are no oil changes etc....this is just for car washed next month)
Internet - $80/month
Mobile Phone - $56/month
Utilities - $228/month
LOC/Student LOC/Wife's student loan payments - $605/month
Entertainment - $100/month
Alcohol/bars - $100/month
Coffee shops - $20/month
Groceries - $500/month
Restaurants - $150/month
Gifts - $50/month
Pharmacy - $50/month
Home Insurance - $91/month
Home Supplies - $100/month
Mortgages (for house and rental condo, including condo fees and property tax payments on the house) - $2628
Baby Supplies - $150/month
Hair - $20
Pet food/supplies - $80/month
Clothing - $70/month
Hobbies - $40/month

Total Expenses - $6272
Income - Expenses = $2128. This is with no OT. If I pick up OT, I can usually add about another $1000-$1500. With the baby at home now, I'm going to be limiting the amount of OT I pick up.

I have been putting $75/week into our savings account, which I didn't include in expenses. It just gets transferred from chequing to savings automatically every Friday. The remainder of the excess money typically goes straight on to the LOC. Once the LOC is paid off, I will start paying off my student LOC, and then followed by my Wife's student loan. Once the car, and those three loans I just mentioned are paid off, that will free up an extra $888/month, reducing our total monthly expenses down to $5384, allowing us to save money at a pretty good rate, especially once my Wife goes back to work.
I have been following your progress and it is very inspiring, congratulations on the new family member and once your debt is gone and you are able to swing that to investments you will be in great shape come retirement. Congratulations on taking control of your future!
 

·
Registered
Joined
·
10,526 Posts
Likewise. Good progress and it appears by the end of this calendar year, the balance sheet will be looking a whole lot better. It is amazing the weight that comes off one's shoulders when debt payments and outstanding obligations have been eliminated and there is additional free cash flow to then tackle other debt like incremental mortgage pre-payments and/or building an investment portfolio.

I still think based on comments I think I expressed many months ago that you need to deal with that condo in one form or another. If I remember correctly, it was not cash flow positive on an 'all in' basis and if correct, that is an albatross. Imagine what the dead equity in the condo would do buying down your home mortgage in addition to not having a 'cash in red' situation on that 'investment'. Investment RE is a terrible investment if it does not have clear and certain positive cash flow by a significant margin.
 

·
Registered
Joined
·
91 Posts
Discussion Starter #71
Thanks guys! It definitely feels like a big weight gradually being lifted off of my shoulders. I agree - The condo is a thorn in my side. I'm just waiting for my tenants to move out, and I'm going to sell it as soon as they do. In Manitoba, you can't just choose not to renew the lease. If you don't renew the lease, it just continues month to month after that until the tenants decide to move out. The only options to have them move out are if I move back into the condo myself, or I make extensive renovations, requiring them to leave (in which case, I'm required to offer to rent the place to them again after the renos are done). Also, if they refuse the annual lease renewal, then the lease terminates at the end of the leasd, and they would have to move out. Now, I can sell the place while they're living there, and then the new owner could require them to leave within 3 months of the sale. However, this would make it harder to sell, and condo prices for older condos like mine are already down the drain for now, and vacant condo units in my development are staying on the market for a long time without selling. The rate of condo fee increases is going down finally, and I'm going to try to make a case with the city to have the assessed value decreased for property tax purposes. I've also been increasing the rent each year. All in right now, I'm losing $150/month, which is definitely not good. But, I think it's better than the headache of trying to sell the place while the tenants are still living there. Hopefully they will move this Spring, and I can put it up for sale.

Thanks for following!
 

·
Registered
Joined
·
91 Posts
Discussion Starter #72 (Edited)
February Update:
Assets:
House - $270k
Condo - $155k
LRRSP - $18 779
RRSP - $6367
Non-registered - $255
Wife's RRSP - $1187
Chequing - $2445
Savings - $2285

Total Assets: $456 318

Liabilities:
House Mortgage - $226 954
Condo - $130 455
Car Loan - $1981
SUV Loan - $21 073
BMO LOC - $14 400
Student LOC - $7351
Wife Student Loan - $4163
Credit Card - $1976

Total Liabilities: $408 353

Net Worth: $47 965
 

·
Registered
Joined
·
91 Posts
Discussion Starter #73
March Update:
Assets:
House - $270k
Condo - $155k
LRRSP - $11 400
RRSP - $6866
Non-Registered - $255
Wife's RRSP - $908
Chequing - $5557
Savings - $2587
Total Assets: $452 573

Liabilities:
House Mortgage - $226 224
Condo Mortgage - $129 980
SUV Loan - $20 622
Car Loan - $1698
BMO LOC - $14 100
Wife Student Loan - $4080
Credit Card - $3960
Student LOC - $7213

Total Liabilities: $407 877

Net Worth: $44 696

No big surprise in the few grand loss of net worth this month I suppose. Our investments are down about 30-40% since last month. This money is locked away at least, so the plan is to just hold it there. Currently facing the risk of temporary layoffs at work right now, unfortunately. Hopefully this passes in the next few months. Thankfully we buckled down and paid off most of the LOC this year before all this happened, and the car is nearly paid off. Each month, we're re-evaluating expenses, trimming back where we can.
 

·
Registered
Joined
·
91 Posts
Discussion Starter #74
April Update:
Assets:
House - $270k
Condo - $155k
LRRSP - $13 492
RRSP - $7230
Non-registered - $255
Wife's RRSP - $995
Chequing - $6271
Savings - $4377

Total Assets: $457 620

Liabilities:
House Mortgage - $225 542
Condo Mortgage - $129 539
SUV Loan - $20 170
Car Loan - $1415
BMO LOC - $13 700
Wife Student Loan - $4000
Credit Card - $960
Student LOC - $7192

Total Liabilities: $402 518

Net Worth: $55 102

Did a tonne of OT in March in order to earn as much money as possible before possible layoffs happen. I'm an airline pilot, so as you can imagine, it's going to take a while for my industry to recover. I've got my seniority at a major airline, so if I get laid off, hopefully I'll be recalled within the year. Starting this month, we're taking a substantial salary cut in lieu of layoffs. We'll see what happens for May and onward....It's being negotiated on a monthly basis basically. My plan is to transfer excess money from Chequing to Savings. We've cut pretty much all unnecessary expenses. We will likely park one of the vehicles and take the insurance off, and just go down to one vehicle if I get laid off. My Wife is already on EI (for mat leave), so if I end up on EI as well, money will be very tight, but we've come up with a budget that would allow us to get by without having to dip into savings for about 10 months. Hopefully if I get laid off, it won't be for 10 months, but it's hard to tell at this point. We're preparing for worst case scenario. I really don't want to wipe out the savings we have worked so hard to build over the last year.

I spent a few hours on the phone negotiating lower rates on our monthly services. Managed to get our monthly internet bill down about 50%, put both vehicles on "pleasure use" insurance, since we are using them so little, that they qualify for those rates, we don't have cable or home phone, we're not buying alcohol or eating from restaurants, we've cut back on meat, got really cheap cell phone plans ($25/month each), and I negotiated lower premiums for house and condo insurance. At this point, other than the fact that we're still making car payments and insurance payments on two vehicles, we've got our expenses about as low as possible. If I don't get laid off, we'll be that much further ahead. If I do get laid off, we should be prepared at least.
 

·
Registered
Joined
·
91 Posts
Discussion Starter #75
Well, I got my layoff notice effective June 1st. I maintain my seniority, and they can't hire externally for 10 years, or until everyone is recalled. So there is some protection there thankfully at least. Thing is, I have no clue when things will turn around and I'll be back to work. I don't want to dip into my savings or LOC, so I am trying to come up with a budget that would assume both my Wife and I being on EI. My Wife will be back to work full time in February, and I should be able to find something that pays more than EI for the summer, but we're budgeting for worse case scenario. With both of us on EI, plus our rental cheques, our net income monthly would be $5519 (down from the $13 000 we were bringing in with my Wife working, and even $10 800 this month with my Wife on mat leave). Pretty substantial hit, but a hit that pretty much the whole world is dealing with. Currently, our monthly budget is $6012/month. I guess I haven't given a breakdown of our spending in a while, so I'll share that now.
Car Insurance - $276/month
Car Payments - $749/month
Gas - $70/month
Auto Service - $20/month
Internet - $70/month
Mobile Phone - $56/month
Utilities - $228
Loan payments - $605/month ($400 for LOC at 6.46% interest, 120 for Wife's student loan at 3.45%, $85, for student LOC at 3.95%)
Entertainment - $100
Alcohol - $100
Coffee Shops - 20
Groceries - $500
Restaurants - $100
Pharmacy - $50
Home Insurance - $80
Home Supplies - $100
Mortgages, condo fees, property tax - $2628
Baby Supplies - $150
Pet food - $50
Clothing - $40
Hobbies - $40

So we need to trim at least $500/month in expenses. We could sell both vehicles, have enough money to pay off both car loans, and go down to one cheaper vehicle. That would save $750/month in car payments, and about $160 in insurance, for a total of $910/month in reduced expenses. We could also just suspend the car payments on both vehicles for 3 months with no penalty (a special COVID-19 thing the banks are doing). This would relieve us financially for a few months, and possibly make it easier to sell the vehicles, when hopefully the social distancing/stay at home rules are less strict. We could reduce the LOC, wife's student loan and student LOC payments to the minimum payments to save about $350/month. We could trim the alcohol and restaurant budgets in half to save $100/month. I'm on reduced pay for the month of April, and then back up to full pay for the month of May. So I should be able to put a few thousand $$ in our savings account before June 1st at least.

Thoughts?
 

·
Registered
Joined
·
91 Posts
Discussion Starter #76
May Update
Assets:
House - $270k
Condo - $155k
LRRSP - $12 485
RRSP - $7100
Non-Registered - $255
Wife's RRSP - $1022
Chequing - $5809
Savings - $7684

Total Assets - $459 355

Liabilities:
House Mortgage - $224 842
Condo Mortgage - $129 085
SUV Loan - $19 719
Car Loan - $1132
BMO LOC - $13 350
Wife Student Loan - $4076
Credit Card - $2922
Student LOC - $7180

Total Liabilities - $402 306

Net Worth - $57 049
 

·
Registered
Joined
·
2,840 Posts
So we need to trim at least $500/month in expenses. We could sell both vehicles, have enough money to pay off both car loans, and go down to one cheaper vehicle. That would save $750/month in car payments, and about $160 in insurance, for a total of $910/month in reduced expenses.
There's a very high chance your wife's job will still be there next winter, yes?
I'd think I'd just sell 1 car in your situation and keep the other. No need to sell both and go down to a beater. You're financially not that bad off even with the (hopefully temporary) layoff.
 

·
Registered
Joined
·
91 Posts
Discussion Starter #80
Thanks everyone, I appreciate your responses! Sorry for the late response.
Milhouse - We've shed some expenses (what little we could, since we've already been living fairly frugally to begin with, aside from having two vehicles), and I've negotiated lower service fees on things like internet etc. This month, we will spend about $2000 less than we bring in.
J4B - Thanks! My company is keeping me on the wage subsidy until the end of August, when the wage subsidy ends. Works out to about $3700/month gross. More money than EI anyway.
Peter - That's a good idea! We're considering selling one car for sure, and yes, there's a very high chance my Wife's job will be there in the Winter, unless there's a second wave of the virus that wreaks the level of havoc that this wave has caused. We will most likely sell the car instead of the SUV, since my Wife feels safer with the baby driving the AWD SUV in the winter. We should be able to get about $10k for the car anyways. We could use that money to pay off the LOC and most of my student LOC. With the car being paid off, and the LOC being paid off, that would reduce our monthly debt payments by $683/month. We may have to keep both vehicles though, as there is a temporary job I am looking at in a different province in the interim while I wait to be recalled to my normal job. I'll just have to wait and see how things are shaping up. If it looks like that's not going to materialize, then it will be an easier decision to sell the car.

I've ran all the numbers, and if I'm still laid off by the time the wage subsidy runs out, and I end up on EI, we will be able to cover all of our expenses, without dipping into savings at all. During my time on the wage subsidy, we will be able to save about $500/month. I'm considering taking the $7000 from our savings account and putting it on the LOC. The interest rate on the LOC has gone down to 5.46%, but I will still save about $32/month in interest this way.

Thanks for following, everyone! On the plus side, I get to be a full time Dad to our new baby, and I've been taking the time off to exercise outside lots. Been doing a lot of biking and running. Best part is that exercise is free, and it gives a priceless boost to your health. Thank goodness we took the steps at the beginning of this thread to get our budgeting under control! We would have been in a far worse situation right now otherwise.
 
61 - 80 of 92 Posts
Top