Published on: 2021-01-05
After reviewing 2020, here is the planning for the following year.
Even if everything is to be set regarding the sale of our place and job transfers, we hope to be able to move early in the year. It will impact the budget, so let's assume March 1st. If the category is split in two, it denotes the previous location and the new one.
- Savings : $14 500
- Phones : $251
- Electricity : $55 + 1 700
- Internet : $44 + 350
- Food : $9 600
- Car : $400 + 3 600
- Pet : $300
- Technology : $600
- House improvement : $6 000
- Pharmacy : $900
- Personal care : $500
- Sport gear : $1 000
- Clothing : $1 800
- Child : 1 000$
- Restaurants : $600
- Mortgage : $4 954 + 10 000
- Strata : $906 + 0
- City taxes : $280 + 2 400
- House insurance : $120 + 700
- TOTAL : $62 560
Projected net incomes
- 1st wage : $31 500 (if leave without pay for 2 months)
- 2nd wage : $44 200
- Corporate expenses (estimated) : $3 000
- Canada Child Benefits (estimated) : $2 760
- TOTAL : $81 460
The gap between spendings and incomes is not a bug, it's a feature. I tend not to budget to tight because it does not serve the beneficiaries well in my opinion. Incomes can fluctuate, so can the spendings. Any leftovers will be turned in savings, no second though.
This budget will allow us to save a minimum of 18% of net incomes, plus the equity on the mortgage ($12 000), bringing the total saving rate at 33%. In the perspective of a downsizing year, it is excellent.
Here are couple details on what will happen this year, so I don't forget.
- Bike sale (+$3 600)
- Car sale (+$3 500)
- Car budget does not include the amount to buy a new car (planned budget of $15 000).
- Tech budget is may be for a new phone (250$) if mine wants to retire early after 4+ years of service. And a new battery (50$) for my wife's phone. I'm leaving room (300$) for the unexpected, but probably not much spent here.
- Home improvement budget does not include the amount returned to us after the sales of possessions before moving, but including the cost of a container.
- We will be able to do some fiscal deductions from the move.
- Mortgage budget factors our new target at $1000/month to be able to live from 1 wage in the future.
On another note
Life is not only about money. Don't take this planning as the meaning of our life. We do aspire at creative work, spiritual experiences, etc. I just personally want our wallet to be aligned with our values and not to be a drag for our future. At the same time, I do not want to pursuit the American Dream of the always more money, always more stuff. Thus, I don't care about having a promotion to get a better income. All I want is to make good decisions with my money.