# Very New.. 23 years old.



## Mux (Nov 16, 2014)

About:
23 years old working in a supervising position in the oil and gas sector. 
Income fluctuates month by month.
Wants to eventually own a home and have somewhat of secondary income from investments.

Assets:
Truck1= 15000
Car1= 12000
Chq= 2000
Sav= 25000
RRSP= 6000
TFSA= 0.00

Liabilites:
CC= 1500
Truck2= 39000( 950/month)
Sled1= 4000 (approx 200/month)
Rent= 1200 with utlities per month.
Fuel= 500-800 
Phone= Company provided 0.00 
Tv and Internet = 175.00

Income per month before tax:
10-15000.

Short term goals:
Max out TFSA.
Pay out snowmobile and CC.


Looking to for any suggestions on where to put my money plan on maxing out my TFSA and RRSP contributions and re invest into.


----------



## Tawcan (Aug 3, 2012)

Can you clarify your liabilities? I don't understand why your $39k truck liability is more than how much the truck is worth. Rent, fuel, phone, tv and internet aren't really liabilities but rather monthly expenses.

With your monthly income you should try to kill your credit card and car loans. Once these loans are done I'd try max out your TFSA and RRSP. Index fund is a great way to get started.


----------



## Mortgage u/w (Feb 6, 2014)

Given the income you make, there is no reason you should have a credit card debt. You will need to make a proper and detailed budget and see where you're money is going on a monthly and yearly basis.

From what you listed, you have a negative net worth. You need to get in the positives before you can start to see a return from investments (as per your long term plan).

You're true assets are $31,000 total ($25k savings and $6k RRSP). Your debts heavily out-weigh your assets.
If you really need a snowmobile, then take $4k from your savings and pay off your loan. If not, sell it and pay off loan. The way I see it, toys should be bought when you have the extra money to afford it - if you rely on debt for all your 'wants', you'll have it rough financially.

Your truck I'm confused. Why is the loan so high yet worth so little? Is your gas expense mthly? If what you listed is interpreted literally, then you need to get rid of the truck as well and start off again with a smaller vehicle, smaller loan and less gas expense.

Redo your list detailling monthly expenses and monthly NET income. Then you can see what you have available and can budget a savings plan accordingly......but if your debts are causing your expenses to be high, you'll have a hard time building your portfolio.....many years of saving oppurtunity will pass you by if you don't get rid of your debt.


----------



## Spudd (Oct 11, 2011)

I am wondering, do you actually have a car and 2 trucks? If so, why do you need so many vehicles? I would think 1 vehicle for 1 person should be sufficient.


----------



## OurBigFatWallet (Jan 20, 2014)

As others mentioned above one way to fast track the saving process is to ditch the vehicle(s) that aren't needed - maybe the car since it seems like it is already paid for. This will give you some cash to invest and decrease your monthly expenses going forward


----------



## My Own Advisor (Sep 24, 2012)

OurBigFatWallet said:


> As others mentioned above one way to fast track the saving process is to ditch the vehicle(s) that aren't needed - maybe the car since it seems like it is already paid for. This will give you some cash to invest and decrease your monthly expenses going forward


+1 with my account friend above.

Focus on _what you really need_, you'll find you can save a bunch thereafter. It's a never-ending process really


----------



## TK.61 (Mar 27, 2012)

To me this sounds like the stereotypical young oilfield worker. Lots of income, but nothing but debt to show of it. Luckily you still have tons of time and you came to the right place for advice (not my advice specifically).

You have $10,000+ coming in per month, and it looks like you have:

Rent -1200
Truck2 - 950
Sled1 - 200
Fuel - 800
TV + Int - 175
Total: $3325!

If I add, say, $1675 extra a month for food, insurance and misc stuff that you didn't account for, just to make a clean $5000, that leaves you with $5000+ a month you have left over!?! Where is all that going? 

You should immediately pay off the Sled1 loan since you can. You are probably making 1%+/- interest in your savings and are paying 6%-8%(?) on your loan.

Onto your truck(s)? That is a big loan and I would pay it down ASAP since you seem to have a lot of extra income. Do you have a 'work truck', then a nicer truck for when you are not working? Is is necessary to have two trucks? 

Before you look at investments I would get rid of all your unnecessary debt. Going forward I would suggest saving up first and then buying with cash. With your income and minimal expenses that shouldn't be too hard. Don't get caught up trying to keep up with the 'Jones'' as I suspect the big truck loan and sled loan were in part because you have a high income and all your co workers have the newest, nicest trucks and toys? That is a terrible cycle to get into if that is the case.

Just another thought: Not sure what your job security is like, but if you did happen to get laid off you have an exceptionally high amount of monthly payments to cover.

I would suggest reading PeterK and/or Ashin1's threads. They are both young (relatively, haha) and have high paying jobs in the oil and gas sector. They both are good examples of how to handle having so much disposable income at a young age.


----------



## nathan79 (Feb 21, 2011)

Before tax income isn't much use for budgeting. You're looking at 7-10K/mo after tax.


----------

