Author Topic: Freshly brewed Mustachian  (Read 1182 times)

thecampguy

  • 5 O'Clock Shadow
  • *
  • Posts: 3
Freshly brewed Mustachian
« on: December 24, 2017, 09:37:33 PM »
Hey All,

I just wanted to give a shout out to any of the great folks I met at Camp Mustache Canada back in October. Such wonderful folks who quickly indoctrinated me in the MMM way over countless pots of coffee.

Here's me in a nutshell looking for some direction of next steps.

Income 46k
39.5 after taxes & deductions
Savings rate of 25%.There is still room for growth.

Car: 2008 Pontiac Torrent - paid off. Before i get hazed I bike/walk to work plus get use of a company car for any work stuff.
Rent: 250/month. I know. It's a steal, but it's a basement apartment in an office building. So no rowdy daytime parties.
Investments: 18k in RRSP, DCPP 33k
Liquid: 22k

I know I'm in an ok spot, at least in terms of no emergency debt.

I'm hoping to make the move and get a place of my own in the next 1-2years. But am looking for what the next steps should be...

I don't have a FI goal date set yet, as I'm anticipating the paying down the mortgage being a key factor.

Any thoughts on where to go next/what I should do?

Cheers


   

nurseart

  • 5 O'Clock Shadow
  • *
  • Posts: 14
Re: Freshly brewed Mustachian
« Reply #1 on: December 26, 2017, 07:15:56 AM »
It sounds to me like you are doing pretty well and some specific goals/action steps might help you stay laser focused. With that rent (AMAZING), I bet you could up your savings rate pretty substantially if you wanted.

What are your goals?

What price range are you thinking for the house?

How much do you not like living in your current apartment? I'd compare costs for renting v buying and what you could do with that extra money instead. Ie, from a recent post look at this financial freedom calculator http://engaging-data.com/freedom-calculator/?utm_source=mmm

My mortgage + expenses of home ownership are probably about 13k a year considering repair/maintenance cost. Your rent is 3k a year. Saving an extra 10k a year, assuming you aren't miserable at your current place, is pretty sweet.

It all depends on what you want.
« Last Edit: December 26, 2017, 07:35:49 AM by nurseart »

Bicycle_B

  • Handlebar Stache
  • *****
  • Posts: 1358
  • Mustachian-ish in Live Music Capital of the World
Re: Freshly brewed Mustachian
« Reply #2 on: December 28, 2017, 01:21:02 PM »
39.5k income minus 25% = 29,625 annual spending. 
29,625 minus 3,000 rent = 26,625 annual non-rent spending.
What is the 26,625 buying?  Can it be optimized?

25% savings rate => 32 years to retirement; maybe 26 years after accounting for current savings.  If you move, what will your savings rate become?  What will the resulting time to retirement be?
http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/

Is a higher income possible?

My non-rent spending is about 13k $US (16k or so in Canadian dollars).  I am FI, but would not be at your rate of non-rent spending.

Congrats on your low rent for now, and entering The Mustache Zone. 

thecampguy

  • 5 O'Clock Shadow
  • *
  • Posts: 3
Re: Freshly brewed Mustachian
« Reply #3 on: December 30, 2017, 03:40:16 PM »
Thanks for the responses!

As the crazy low rent is great, it does come with it's pit falls. Just last night I was woken up by a cleaning crew in the office above at 3am!

Lack of outdoor space is a big one. But I'm guessing that at 10K plus of savings that it comes with I can deal with it for a little while.

While I do have have family low income, my job comes with serious flexibility and some pretty great perks... like 3 square meals per weekend for half of the year's weekends. But I'll definitely look into an additional source of income to help boost savings. 32 years to FI is way too long. So it's time to dig in and look for what else I can do to boost up that savings rate.





okits

  • Walrus Stache
  • *******
  • Posts: 5418
  • Location: Canada
Re: Freshly brewed Mustachian
« Reply #4 on: January 02, 2018, 01:26:48 AM »
Hi thecampguy (or hi again, if we had a chance to chat at CMC!)

Are you tracking your spending?  With that insane rent and some free, regular meals I should think you'd be in a great spot to save like crazy.

Is your 'stache invested optimally (whatever that means in your individual situation)? 

Looking at increasing income (side hustles or career advancement) is a smart move.  Hopefully you can get that savings rate way up!