Canadian Money Forum banner
121 - 140 of 195 Posts

·
Registered
Joined
·
319 Posts
Discussion Starter · #121 ·
August Update:

Did a lot of OT last month, so it looks like I should have no problem paying cash for my property tax bill next month.
Assets:

House - $270k
Condo - $155k
LRRSP - $20 783
RRSP - $13 113
FRESP - $2654
Wife RRSP - $5180
Chequing - $4011
Savings - $0
Work Savings Plan - $3296

Total Assets: $474 037

Liabilities:
House Mortgage - $213 646
Condo Mortgage - $122 206
Student LOC - $6405
SUV Loan - $12 216
BMO LOC - $2700
Wife Student Loan - $3080
Credit Card - $1913

Total Liabilities: $362 166

Net Worth: $111 871
 

·
Registered
Joined
·
319 Posts
Discussion Starter · #122 ·
September Update:

Found out this month I will be getting promoted back to my pre-covid position, so I will be back to making about 40% more than I am now starting December 1st, thankfully. So I expect sometime around Q2, 2022, I should have the remainder of our debt paid off, aside from the SUV loan and mortgages. Possibly sooner, if I do enough OT.

Assets:
House - $270k
Condo - $155k
LRRSP - $20 957
RRSP - $13 283
FRESP - $2851
Wife RRSP - $5631
Chequing - $3271
Savings - $2000
Work Savings Plan - $4358


Total Assets: $477 351

Liabilities:
House Mortgage - $212 869
Condo Mortgage - $121 743
Student LOC - $6356
SUV Loan - $11 759
BMO LOC - $2650
Wife Student Loan - $2980
Credit Card - $1632

Total Liabilities: $359 989

Net Worth: $117 362
 

·
Registered
Joined
·
319 Posts
Discussion Starter · #125 ·
Well, sadly, my furnace just failed, and it will cost about $5400 to replace (still getting quotes, haven't really negotiated yet, but I at the most, I might be able to knock them down a few hundred $$. HVAC companies have high overhead costs, so I'm thinking there won't be a huge amount of wiggle room in negotiations.) So, I think I will pay for the furnace with my credit card, and bust my butt doing OT this month to make up most of the amount. Any extra that I haven't earned by the time my credit card bill is due, I will transfer from my line of credit, and keep busting my butt doing OT to get that debt paid off. Also, someone has expressed interest in buying my condo (rental property) privately. It would be great if I can get a deal done on that privately. I also just paid my $4800 property tax bill with cash that I had in the bank at the end of the last month.

Assets:
House - $270k
Condo - $155k
LRRSP - $20 663
RRSP - $13 410
Non-Registered - $278
FRESP - $3075
Wife RRSP - $5750
Chequing - $1304
Savings - $250
Work Savings Plan - $5170

Total Assets: $474 900

Liabilities:
House Mortgage - $212 000
Condo Mortgage - $121 270
Student LOC - $6307
SUV Loan - $11 301
BMO LOC - $2610
Wife Student Loan - $2880
Credit Card - $2622
Upcoming Furnace Expense - $5400

Total Liabilities: $364 390

Net Worth: $110 510
 

·
Registered
Joined
·
319 Posts
Discussion Starter · #126 ·
Hi Everyone,

Looking for advice once again. We have a 2017 Kia Sorento we bought new for $40k, thinking it would be a nice reliable vehicle, Wife would be nice and safe etc. Well, 6 weeks after the warranty ran out, and with only 95 000 km, the check engine light is on, and it needs a variable valve timing motor cover/sensor replacement. Probably looking at about $700 for repair. Additionally, the engines on these things have been spontaneously failing catastrophically and even catching fire in some cases. Needless to say, I'm a bit concerned about this. We still owe $11k on the car loan, and they are being listed for about $20-$22k.

Any advice on what I should do? I don't really want this thing in my possession if/when the engine bites the dust. Kind of thinking of just going to the Toyota dealership and trading it in for a 2017/2018 Toyota Highlander or something. If the dealership gave me maybe $18k for it, the loan would be paid off, I'd have $7k left over, I get a highlander for $30k, put it on my line of credit, and pay it off ASAP busting my butt doing OT.

Certainly not an ideal situation, but I don't need the engine on this thing failing on the highway in the middle of winter while my wife is taking our 2 year old to daycare or something.

Thanks!
 

·
Registered
Joined
·
632 Posts
It seems like your wife's safety is really important to you so i would get the car. However i would advise you to do your research on the new model to ensure you have a reliable vehicle this time. Sorry i don't know anything about car loans.
 

·
Registered
Joined
·
632 Posts
It seems like your wife's safety is really important to you so i would get the car. However i would advise you to do your research on the new model to ensure you have a reliable vehicle this time. Sorry i don't know anything about car loans.
I will add i drive a 1990 toyota corolla and its been very reliable with no repairs.
 

·
Registered
Joined
·
3,235 Posts
I am not aware of Kia/Hyundai being unreliable. They seem great to me. Perhaps you got a lemon? What are you reading on the internet about "engines spontaneously failing"?

I'd probably just fix it. It's only $700. Regular breakdown maintenance.

If you're so concerned I'd probably go out and buy a brand new car. Not a used Toyota. Maybe you're a new car person. Lots of people are, and trade in every 5 years at 100k because of "peace of mind".

Also have you been to a dealer lately? There's a severe shortage of everything. Used cars are barely cheaper than new. And new cars you have to wait 6 months to get delivered (or pay $5k markup to buy whatever is in stock on the lot, which is almost nothing and dibs'd immediately by fast-acting buyers).
 

·
Registered
Joined
·
319 Posts
Discussion Starter · #131 ·
I am not aware of Kia/Hyundai being unreliable. They seem great to me. Perhaps you got a lemon? What are you reading on the internet about "engines spontaneously failing"?

I'd probably just fix it. It's only $700. Regular breakdown maintenance.

If you're so concerned I'd probably go out and buy a brand new car. Not a used Toyota. Maybe you're a new car person. Lots of people are, and trade in every 5 years at 100k because of "peace of mind".

Also have you been to a dealer lately? There's a severe shortage of everything. Used cars are barely cheaper than new. And new cars you have to wait 6 months to get delivered (or pay $5k markup to buy whatever is in stock on the lot, which is almost nothing and dibs'd immediately by fast-acting buyers).
Thanks Peter, those are all good points. I actually brought it in to the dealership today, and it looks like they might be able to get me a "good will warranty" repair, since my warranty only ran out 2 months ago, and I had them inspect it at the end of August when the warranty was running out to make sure nothing was wrong. So I might not have to pay anything at all for the repair. If I do have to pay out of pocket, it will only be $350, not $700.

It has mostly been the 2011-2015 Kia Sorento's that were having the engine failures. It was because of bearing failures, due to a manufacturing problem, where pieces of metal from the manufacturing process were left in the crankcase. They apparently fixed this problem for 2016 and onwards. Mine's a 2017. However, I also realized that I am entitled to a lifetime engine warranty if my engine fails due to bearing failure, as a result of a class action lawsuit. So maybe I'll just calm down and hang on to it.

I did check out some dealerships, and it is insane. In fact, I encountered one Toyota dealership here that was completely sold out of all SUV's and trucks. One thing I did realize though is that luxury versions of effectively the same vehicle seem to be the best way to go if you're buying used. For example, a 2017 Lexus RX 350 with low mileage is the same price as a 2017 Toyota Highlander with similar mileage. They are both mechanically almost identical, aside from the Lexus having better brakes and suspension. The Lexus also has a nicer interior (full leather etc.). The Lexus just depreciates much more rapidly.
 

·
Registered
Joined
·
3,235 Posts
I think mine had the same engine problem recall (2013 Santa Fe). But I didn't actually have an engine problem, just the recall check.

Yeah nobody wants an old luxury car, unless it's a sports car/collectible (not lexus) so that is not surprising.

Seems like trading your used car in nowadays is a decent deal though, if you want to order a new one and wait for it to be delivered (many months) and pay MSRP. Though I imagine the used car premium these days is only as much or less than the typical "dealer discount" - now a dealer markup - from precovid normal times.

I've concluded, for now, to wait it out and try to not get another vehicle until supply and pricing returns to normal (perhap not till 2023). Though I don't know if I can last that long (want a larger SUV or van).
 

·
Registered
Joined
·
574 Posts
Just reading your diary here for the first time. You've made some decent progress in 3 years. One thing I'll say from experience is that once you have paid down all the 'bad debt', and have at least a year's worth of emergency savings in place, the amount of stress in your life will drop dramatically. I'm curious as to why you still own the rental condo? Going back 3 years you mentioned that you would sell it once your renters move out. Has that situation improved, where the condo is not a money maker for you?

Also, I'm curious as to your approx age? It helps to put your financial journey in perspective. If I had to guess, I'd say you guys are in your early 30's??? That's the age I was at when we had approx the same net worth that you have now.
 

·
Registered
Joined
·
319 Posts
Discussion Starter · #137 ·
Just reading your diary here for the first time. You've made some decent progress in 3 years. One thing I'll say from experience is that once you have paid down all the 'bad debt', and have at least a year's worth of emergency savings in place, the amount of stress in your life will drop dramatically. I'm curious as to why you still own the rental condo? Going back 3 years you mentioned that you would sell it once your renters move out. Has that situation improved, where the condo is not a money maker for you?

Also, I'm curious as to your approx age? It helps to put your financial journey in perspective. If I had to guess, I'd say you guys are in your early 30's??? That's the age I was at when we had approx the same net worth that you have now.

Thanks for the comments. We're both 31 years old. We still have the condo, and it's still losing us about $200/month, which is not great. Still have the same tenants living there. It's steadily going up in value, so I think I might just hang on to it. When they move out, I might hang on to it and rent it out for significantly more than they're currently paying for rent. The rental market has gone up quite a bit since they first moved in. We'll see what happens. I might have someone interested in buying it privately, so I would definitely be interested in that if it pans out.
 

·
Registered
Joined
·
319 Posts
Discussion Starter · #138 ·
Well, I took a bit of a beating over the last month. New furnace was $5400, car repairs were around $450, had a plumbing issue at my rental property that was $610 to have fixed while I was away. On the bright side, I will be getting a 56% raise December 1st, and a cheque for about $5k at the end of December. My employer will also be increasing my savings plan match from 10% to 15% effective the end of December. So effectively, 30% of my gross income will be going to savings, and I'll be making at least $2k/month, probably $2500/month more after tax without doing OT. Each day of OT would be between $500-$1000, so hopefully I can pick up a fair bit of OT in the new year and finally get all of my debt and car loan erased. Once that happens, I'll just be on a mission saving as much money as possible. I'll probably keep that 30% in my savings to go to retirement, and our extra money can go towards building a $25k emergency fund that we'll keep in a high interest savings account that could be accessed immediately if necessary. I also started a "sinking fund" in my non-registered account with Questrade. This is to cover my property tax bill each year. I've just got it invested in very safe stuff that also pay a small dividend. Better than paying into my bank's "property tax account" every month and basically giving the bank an interest free loan. I also plan to start a "sinking fund" for vehicle repairs, house repairs, gifts, vacations, furniture/appliances, and recreational spending. I'll put a certain amount of money into each of these accounts each month to cover any costs for things that or somewhat more spontaneous in nature. (I have some reno's I'd like to get done, including finishing my basement, upgrading plumbing, electrical, etc.). I basically don't want my emergency fund being used for vehicle repairs, home repairs, and things like that which should be expected to be encountered over time. I want my emergency fund to be there for true emergencies. Like my house burning down, me getting injured, or other things like that that would be completely out of my control.

Assets:
House - $270k
Condo - 155k
LRRSP - $21 209
RRSP - $13 853
Non-registered - $730
FRESP - $3361
Wife RRSP - $6382
Chequing - $10 971
Savings - $501
Work Savings Plan - $6340

Total Assets - $488 347

Liabilities:

House Mortgage - 211 302
Condo Mortgage - $120 805
Student LOC - $6258
SUV Loan - $10 614
BMO LOC - $8070
Wife Student Loan - $2780
Credit Card - $12 780

Total Liabilities - $372 609

Net Worth - $115 739
 

·
Registered
Joined
·
319 Posts
Discussion Starter · #140 ·
Alright, we now have eight different sinking funds, plus our emergency fund. The eight sinking funds we created are:

1) Property Tax - $98/week
2) Home Renovations/Repairs - $96/week
3) Vacations - $58/week
4) Wife's Recreation - $65/week
5) My Recreation - $65/week
6) Furniture/Appliances - $39/week
7) Gifts/Donations - $29/week
8) Vehicle Maintenance/Repairs - $32/week

We won't be putting much into our emergency fund until our debt is paid off, which I'm hoping will be this Spring. Once the debt is paid off, we will try to accumulate about $25k in it as quickly as possible. This coming year will be exciting, as our net worth should grow significantly faster once we are no longer losing money to interest on these loans.

We're starting these contributions on January 3rd, once I've got my raise. These sinking funds will help us be prepared for surprise expenses, that so if we're faced with any surprise expenses, we aren't stuck putting it on the line of credit, and I end up busting my butt doing OT to cover it within the month. We made separate recreation accounts for my Wife and I since we both have our own different things we spend money on. My Wife gets her hair done, nails, has some of her own hobbies etc. and I have some of my own hobbies etc. The thing with these recreational things is that it's hard to budget on a monthly basis, because my Wife gets her hair done once every 6 months or so, and the budget for these kinds of things are different every month, and we find we often don't end up sticking to the budget. Either we spend almost nothing on recreation in a given month, or we end up going over what we budgeted. So having a fixed amount going into these accounts will give a specific amount of money available at any given time, and just makes it a lot easier for organizing the finances. My Wife was pretty happy with this idea as well. We have monthly budgets for things we enjoy together, like different events, going to restaurants etc.
 
121 - 140 of 195 Posts
Top