Published on: 2021-04-24
In direct relation to our Planning 2021, even if we haven't moved to our permanent location yet, our condo is now sold. So we moved away from Vancouver and we have a condo rented for us, reducing many expenses along the way. Not having a place to pay for is a big saving. 4 months will pass by quickly, but the savings are going to compound on the long run.
Monthly expenses changed:
- Mortgage payment from $2684 to $0
- Home insurance from $59 to $0
- City tax from $140 to $0
- Electricity cost from $28 to $0
- Strata fees (HOA) from $457 to $0
- Internet service from $23 to $0
- Auto insurance, from $159 to $106 (a new no-fault insurance will reduce it further soon)
Even if the sale of the property was not highly profitable for us when we factor the realtor, notary and moving fees, we will get around $9500 back on 2021 tax return in March 2022 (reference
). And the savings in the next 4 months will be substantial.
New super simple budget from May to August:
- Income 1: +$3954
- Income 2: +$3264
- Canada Child Benefit: +$229
- Cash back: +$50
- Food: -$800
- Auto insurance: -$106
- Auto expenses: -$100
- Cell phones: -$22
- Pet: -$25
All other expenses are discretionary, including pharmacy, clothing, restaurants, etc. The total budget spendings will be around $1500/month, so at least $6000 can be saved each month.
This means in 4 months, we should be saving $24k. Add this to the investment from the equity we pulled out from the property sale and we will have an important sum of money to invest and/or to buy another property later this year.
In September and afterward:
We are going to leave British Columbia at the end of August, driving back to the East coast to live at my parents place for a few weeks. The end goal is to find a semi-detached house around $250k. If we put down 20% and the variable rate is 1.6%, our expenses will look like:
- Mortgage payment: $809
- City tax: $180
- Electricity: $120
- Home insurance: $59
- Auto expenses: $150
- Auto insurance: $80
- Cell phones: $20
- Internet: $40
- Food: $800
- Pet: $25
The income part will significantly drop in September since I won't have per diem paid to me from my job, but we want to coast on our reduced spending and our frugal lifestyle to find a better balance around work and life.
Both our TFSAs are maxed out and the RESP is also fully funded to maximized the incentives from the federal government.
According to the Planning 2021
, it seems that we are on track. What we needed to sell is gone, we have a new, larger car to fit our family (and we sticked to the budget!). In July, I'll review all spendings and incomes from the first 6 months of 2021.