# My Financial Statement



## FrugalCanuck (Jan 28, 2010)

Hey everyone. I always like reading the posts in the section so I thought I'd throw up my own.

I'm 29, professionally employed @ 60K gross/yr with a DBP. Living with my gf.

Goals:
Debt free by the end of 2011. 
Travel once a year (I'm a backpacker & budget traveller)
1 year sabbatical in 2016
TFSA untouchable until retirement
Retire by 53

Here is how I div up my expenses per month.

$500 gas & entertainment (spillover goes in to savings)
$500 to my share of house hold expenses 
$170 Student loan
$94 Car Insurance
$45 Cell
$500 to TFSA until limit is reached
$500 to sabbatical fund in 5 years (travelling for 1 year) 30K max
$250 to travel fund -> short term vacations & travel objectives

As you can see my passion is travelling and I save a significant portion of my income for this. There is a lot of value in travel that can't be measured in dollars but it raises my networth in a different way 

Current Balances:
$10,000 - Emerg Fund, HISA - done
$1000 - large purchase fund/auto insurance deductible - done
$1363.59 - TFSA - Invested in a mutual fund - CI harbour fund
$5291.39 - RRSP - Invested in CI Portfolio Series Growth Fund (not contributing anymore)
Current Debt:
$10608.09 @ 5.5% - left of student loan
Vehicle paid off (21K in 3years, w00t!) -> I just wanted say it.

My Ideas:
- I need to track my spending better. Right now I just review in a whim, record nothing, just make sure I only spend on things I need.
- Establish a 1K incidentals fund. My xbox live membership costs $60/m I always just eat the cost but never put it in a catagory. Also, a gift if needed, my 10% deductible of the dentist etc...
- It maybe redundent to have the emerg fund & my auto deductible in separate accounts. i.e. Including it in my 10K emerg fund? 
- I think I'm missing out on an actually investment portfolio. However settings this up would require limiting my travel savings. Or would it? 
- No house, right now, in my mind is worth the expense. If prices & utilities & insurance go down in Ontario (ya right), then I would consider it, but I can't see this as a smart move right now. 
- Move the 10K emerg fund in to the TFSA or on to the student loan?

Any suggestions on what I can do to improve? I know I'm not in as good a shape networth-wise as some of the other posters on here as I had to learn a few hard lessons to be smart with my moolah


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## the-royal-mail (Dec 11, 2009)

Well, I think you're doing quite well. But I do feel you need to substantially beef up your rainy day savings. Or, at least how you think of the money you already have saved. In other words, if you lost your job and had no income for the next 8 months, where would the money to keep your household afloat come from? 3 tiers explained in my sig file.


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## Four Pillars (Apr 5, 2009)

Looks great. Very organized.

If I can make a small suggestion - your backpacking/sabbatical days will be over the minute kids start showing up. Obviously I don't know if you are planning to have kids or not, but if yes - then maybe shift your sabbatical time earlier to make sure it happens. Perhaps take 2 months off each year if that is possible instead of a whole year?

As much as I love my kids, I wish I had done more travelling before they showed up.


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## FrugalCanuck (Jan 28, 2010)

Thanks FP,

Kids are not on the aggenda and not sure if they ever will so I'm not planning on them. I would consider moving the times around if one comes up though.

I am finally able to afford my travels so I want to take advantage of it as much as possible.


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## steve41 (Apr 18, 2009)

Forget about investment/retirement planning, concentrate on the important stuff. At your age you should be worrying about life, career, kids, house purchase. The career asset (securing a long term career/salary trajectory) being the most important. Once you hit your mid 40s and you have these things well in hand, then start to worry about saving for retirement.


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## Saniokca (Sep 5, 2009)

the-royal-mail said:


> Well, I think you're doing quite well. But I do feel you need to substantially beef up your rainy day savings. Or, at least how you think of the money you already have saved. In other words, if you lost your job and had no income for the next 8 months, where would the money to keep your household afloat come from? 3 tiers explained in my sig file.


I don't know if I agree... 10k is quite a bit saved for emergencies judging by the lifestyle. The only reason one would have no income for 8 months is disability. Even then you still have EI. If you aren't one of the people who are too proud to do labour jobs at least part time (waiting tables, pizza delivery, etc.) then maybe you do need more. Otherwise it's a bit too much. The "sabatical" fund can be the extra safety net. I would much rather put it to work somewhere else at this point (i.e. student loan).

to the OP:
Out of curiosity - what's your DBP based on? flat dollar? Earnings? It's important to know what your DPB will actually get you at 53...


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## Rox (Oct 17, 2010)

Have kids early, they grow up earlier, and when they are grown-up, we are still young and able, then can think about going round-the-world then, provided there're still the health and the moolah to help in this ambition, which, I think should not be too much of an obstacle if one takes care of himself well enough.

Have kids late, they grow up late, we will still need to work hard when we are old to support them through university. But of course, druing young times, we would have travelled everywhere.

Time waits for no man, do what you think is best in the heart.

By 2016, you'd be 36, these times are around the height your career, this is when you make a point in the world, or at the company that you work for. Will you be able to afford one-year off and lose the many opportunities that may come your way in your career ?

To me, if I have started working, I'd work hard on my career, but well, that's all behind me now. Good luck !


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## Rox (Oct 17, 2010)

Thought I'd say one more thing here : I wouldn't feel good just spending the time travelling all over the world for the whole year, going from city to city and then only back home at the end of the whole journey. I prefer breaks in-between my travels, need to go back home,...

It's not like a race, you know,.. Sure, I think it would be more cost-efficient to just travel "forward" and not "returning to the starting point", but, well, if it's not enjoyable or satisfying enough, what's the point ?


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