# Melon's Saving Plan Diary



## MonkeyMelon (Apr 4, 2015)

I just discovered this forum recently I am inspired by all the other posts in this forum. I am going to stop lurking and start contributing to the community.

I am on a mission to save as much as I can in the next 2 years before I settle down and be a home owner.

Current Situation:

*Income:* $59,000 from employment income and another $5,000 from self-employed income. That works out to be about $4,000/month after tax income.

*Fixed Expenses:*
Rent: $1,100/m (inclusive of internet, hydro and water)
Auto Insurance: $157/m
Life/Critical Illness Insurance: $150/m
Gym: $33/m
RRSP Contribution: $300/m

*Variable Expenses:*
Gas: $230/m
Food (Dining, Fastfood & Grocery): $450/m
Entertainment & Shopping: $500/m
Mobile phone: $0 (due to work allowance)

*Total Expense*: $2,920/m

Therefore, on top of the "fixed expense" of $300 RRSP contribution per month, I have another $1,100/m disposible income to save and invest. If I want to be a more aggressive saver, I know exactly where I need to save money (eat out and shop less!!!) I made it a priority to pay off both my student loan and car loan and I am glad to say that I am now debt free.

Here's my current assets:

Savings/Chequing Account: $6,800
TSFA: $49,600
RRSP: $9,200
Car: $26,000 

*Net worth: $65,600* (not counting the vehicle)

Starting January 2015, my goal was to save an additional $30,000 by end of 2016 and use that towards a down payment towards a home. Since then, I have put $2000 into my TSFA - I got set back a little due to credit card bills from the holidays. I will also need to set $1,500 away to attend my friends wedding later this year as well. I have about 21 months remaining to save another $28,000. I will need to save $1,400 a month, is it feasible? Am I on track?

Updated: June 16, 2016

Assets (as of June 2016):

Savings/Chequing Account: $27,500
TSFA: $78,000
RRSP: $200 (used all my RRSP to buy back pension in April, just started RRSP again)
Defined Benefit Pension: $30,000
Car: $20,000 

*Net worth: $135,700 * (not counting the vehicle)

What's changed? New job, with higher income and defined benefit pension. Used all my RRSP to buy back 3 years in April 2016. Followed my plan and save aggressively. Canadian Dollar dropped which increased the value of my US equities inside my TSFA.

On track to save $30,000 between January 1st, 2015 to December 31, 2016


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## janus10 (Nov 7, 2013)

Not having done an indepth study, but it seems that many people start out with the greatest of intentions but do find it difficult to stick to their plan. Obviously, life throws you a curve and it's nice to be flexible, but it's also important to get back on track as soon as possible. Perhaps that's why the Wealthy Barber kept drilling home the idea of paying yourself first rather than letting discretionary expenses control your savings.

One thing I have suggested to future homeowners is to talk to people in order to get a full understanding of ALL of the costs of owning and furnishing a home, and start budgeting as though you were already a home owner. Can you afford the home insurance, property tax, utilities, garden supplies, mortgage, maintenance, etc, etc, etc for month after month after month. You would need to account for the fact that your current rent would offset some of the mortgage, just like any utilities you pay for now.

I've not met anyone who was truly prepared to be a first time homeowner until they had several eye opening discussions.


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## MonkeyMelon (Apr 4, 2015)

^^

Thanks for the mind opening questions. Right now, I am at a stage where I just want to build a capital and leave the thinking for when the date gets closer. If I don't have the money saved up, nothing else matters. I've set my goal to save $30,000 by end of 2016 but it doesn't mean I have to buy a house immediately in 2017. I will consider the same thing you mentioned above regarding the costs associated with owning a property. So part B of the grand scheme of things would probably involved saving another X amount by Y time and proper budget planning.

As well, although I did not mention in my initial thread, but I have full intention to buy the house with my girlfriend so with the power of dual income and savings, I will ensure that we are fully prepare and plan for all kind of scenarios before we sign any offer.


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## MonkeyMelon (Apr 4, 2015)

Time has surely went by quick. Re-visited my thread from last year and update new numbers to keep tracking my goal.


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