Canadian Money Forum banner

81 - 92 of 92 Posts

·
Registered
Joined
·
91 Posts
Discussion Starter #81
May Update:
Renewed my home mortgage, and went for 5-year Variable Closed at Prime - 0.5%, which for now works out to 2.10%. Also got them to stop paying the property tax on my behalf. So with the reduction of mortgage payments due to lower interest for now, and not paying monthly into the property tax account, it gives us about an extra $300/month liquidity. The car will be paid off the beginning of September, so that's an extra $283/month as well, so we'll have about an extra $583/month buffer come September. I know I still have to come up with the property tax money, but that's not due until next June. By then, my Wife will have been back to work for a while already, and I should be back to work this Fall I think.

Assets:
House - $270k
Condo - $155k
LRRSP - $14 050
RRSP - $7174
Non-Registered - $297
Wife's RRSP - $1064
Chequing - $5752
Savings - $1560
Total Assets: $454 897

Liabilities:
House Mortgage - $224 157
Condo Mortgage - $128 640
Student LOC - $7120
SUV Loan - $19 267
Car Loan - $880
BMO LOC - $6400
Credit Card - $1167
Wife Student Loan - $4076
Total Liabilities - $391 707

Net Worth: $63 190
 

·
Registered
Joined
·
91 Posts
Discussion Starter #82
Realized I had an error in my previous post. That should have read "June update". Anyway, here is the July update. Thanks for following! The wage subsidy was extended until the end of December, so hopefully my employer continues with it until after August. They have indicated that they plan to keep doing it as long as it's available, so I'm hopeful. I do think I'll be recalled by the Fall, but this is some security in the meantime, at least. Our expenses currently are $5640/month, and net income is $6457/month. That leaves us $817/month, and that includes paying $400/month towards the LOC and $85/month towards the student LOC. With the car being paid off in September, that will give us a buffer of $1100/month. We do have property tax due by the end of August of about $1800, and $2227 income tax due by the end of September.

Assets:
House - $270k
Condo - $155k
LRRSP - $14 420
RRSP - $7569
Non-Registered - $218
Wife's RRSP - $1119
Chequing - $5719
Savings - $1860
Total Assets - $455 905

Liabilities:
House Mortgage - $223 455
Condo Mortgage - $128 183
Student LOC - $6990
SUV Loan - $18 588
Car Loan - $597
BMO LOC - $6050
Credit Card - $1351
Wife Student Loan - $4076
Total Liabilities - $389 290

Net Worth - $66 615
 

·
Registered
Joined
·
91 Posts
Discussion Starter #83
August Update:

Assets:
House - $270k
Condo - $155k
LRRSP - $14 763
RRSP - $7653
Non-Registered - $96
Wife's RRSP - $1147
Chequing - $5845
Savings - $2236
Total Assets - $456 740

Liabilities:
House Mortgage - $222 723
Condo Mortgage - $127 735
Student LOC - $6996
SUV Loan - $18 134
Car Loan - $283
BMO LOC - $5700
Credit Card - $1490
Wife Student Loan - $4076
Total Liabilities - $387 137

Net Worth - $69 603
 

·
Registered
Joined
·
91 Posts
Discussion Starter #84
CEWS is going down to $500/week for furloughed employees starting September 1st (which is actually $76/week less than EI, and doesn't make any sense to me at all). With my Wife on EI for mat leave, and me on CEWS, we will barely get by on our monthly expenses by the skin of our teeth, and that's assuming my tenants continue to pay rent on time. My final car payment on my car is coming out September 7th, and it will be all paid off. It's a 2013 Toyota Corolla. Our other vehicle is a 2017 Kia SUV, which we still owe $17 900 on. To me, it makes financial sense to sell my Corolla. I believe I would get about $9000 for it. I could use that money to pay off the line of credit, and put the remaining $3300 towards paying off my student line of credit. That would eliminate my monthly line of credit payments, and also save me $138/month on car insurance, as well as some maintenance costs. Thoughts?
 

·
Registered
Joined
·
10,529 Posts
That makes practical sense IF you will not need to be a 2 vehicle family again anytime soon. Otherwise, the buy/sell spread and transactional costs of buying a replacement in the near future will be hundreds if not $1000 or more. How much do you save each month by eliminating the 'interest' costs of the LOC buydowns (in addition to the $138 insurance savings)?
 

·
Registered
Joined
·
91 Posts
Discussion Starter #86
That makes practical sense IF you will not need to be a 2 vehicle family again anytime soon. Otherwise, the buy/sell spread and transactional costs of buying a replacement in the near future will be hundreds if not $1000 or more. How much do you save each month by eliminating the 'interest' costs of the LOC buydowns (in addition to the $138 insurance savings)?
That's a good point. On my LOC, I'm paying $28/month interest. It really depends how long I end up being laid off for, before we will need to have two vehicles. My Wife goes back to work in February. I could also just stop driving the car, and just leave fire/theft insurance on it until I need to drive it again. Storage insurance is only $15/month, so I would save $120/month by doing that.
 

·
Registered
Joined
·
10,529 Posts
If you don't know about when you will be working again, e.g. few months to a year, I'd suggest NOT to sell the vehicle, but store it at lowest cost of storage and non-driving insurance. Yes, there will be additional depreciation but the amount is getting smaller each year and it becomes more a case of vehicle condition and odometer that sets market price rather than model year.
 

·
Registered
Joined
·
91 Posts
Discussion Starter #88
Yes, makes sense. I just took it off the road yesterday. I was paying $138/month for insurance (unfortunately in Manitoba, public insurance has a monopoly and I don't have the luxury of shopping around for better rates). I just left fire, theft and vandalism insurance on it, which is only $10/month, so this will help for sure. I also applied for a courier driver job to hopefully add a little bit of extra cash to tie us over to until we are back to work. I also phoned the bank and got them to decrease my automatic monthly payments on my line of credit down to the minimum amount. In total, with the car being paid off in September, removing the insurance, lowering my monthly LOC payments, and some other trimming as well, I was able to shave over $700/month off of our spending. This will allow us to save about $900/month more than we spend, even with both of us out of work. If I get this courier job, we will save about $2900/month more than we spend. My plan would be to put most of that towards debt repayment, and continue with my goal of getting it paid off.
 

·
Registered
Joined
·
91 Posts
Discussion Starter #90
September update: I've been called back to work! Going back to sailing the friendly skies October 1st, and my Wife is returning to work full time January 6th. Very excited. Also, my car is paid off! It's been a busy month, as I have been installing new flooring and trim throughout my house. My Wife and I did all of the work ourselves, and it still cost us just over $3000. Saved about $2500 in labour doing it ourselves, and it makes our house look like a brand new place. It turned out amazing. I also had to install a new range in the condo, which cost about $800. So it wasn't a cheap month. I think I added well over $3000 to the value of our house with this new flooring/trim, at least. We had old hardwood flooring in rough shape to the point that the polyurethane was peeling off the floor, and I was concerned about our baby and/or dog ingesting a piece.

Assets:
House - $270k
Condo - $155k
LRRSP - $15 015
RRSP - $7669
Non-Registered - $91
Wife's RRSP - $1119
Chequing - $6676
Savings - $2311
Total Assets - $457 881

Liabilities:
House Mortgage - $221 991
Condo Mortgage - $127 287
Student LOC - $6864
SUV Loan - $17 455
BMO LOC - $5620
Wife Student Loan - $4076
Income Tax Payable (this month) - $2227
Property Tax Payable (this month) - $1839
Credit Card - $5654
Total Liabilities: $393 013

Net Worth: $64 868
 

·
Registered
Joined
·
91 Posts
Discussion Starter #92
Thanks, London! I used the 4 months off to get back in shape, lost 25 lbs, spent lots of time with the new baby, did some work on the house etc. Made the most of the crummy situation. I still have many thousands of colleagues who need to get back to work, so I feel lucky. Basically just starting where I left off before the layoff. My cash accounts are pretty low right now, but that's due to paying my property tax for both properties, as well as my new flooring last month. Now that our new flooring is installed and I'm back to work, I'm going to tackle trying to get the LOC fully paid off, followed by my student LOC, and then my Wife's student loan. Should be able to get all of those things paid off in the next 12 months or less, as long as I don't get laid off again. Once that's done, we will be aggressively saving money at roughly the same rate we were paying off our debt. I also opened a family RESP this month, but the minimum initial funding for that is $1000, so I'm just waiting until my next pay cheque to put $1000 into it. In doing that before January, I can at least get some of this year's government grant for the account. Here's the October update:

Assets:
House - $270k
Condo - $155k
LRRSP - $16403
RRSP - $7748
Non-Registered - $98
Wife's RRSP - $1154
Chequing - $1852
Savings - $12
Total Assets - $452 267

Liabilities:
House Mortgage - $221 244
Condo Mortgage - $126 826
Student LOC - $6794
SUV Loan - $17 227
BMO LOC - $5420
Wife Student Loan - $4076
Credit Card - $2436
Total Liabilities - $384 023

Net Worth: $68 245
 
81 - 92 of 92 Posts
Top