Hello everyone let me introduce myself. My girlfriend and I are 22 years old. We have been dating for 7 years and are currently living together in Regina SK. I have recently graduated with an Engineering degree and she is one semester away from completing an Education degree.
Long Term Goals (10+ years)
- FI in 10 years. ( estimating I need a 70% savings rate to do this)
- Start a family in around the same time ( when we are both 30ish)
Mid Term Goals (<5years)
- Buy a house (Could do this sooner but I feel uncertain about current real estate values)
Short Term Goals (1-2 years)
- Get married to my GF
Debt
Approx $400.00 to my parents. This represents the profit from textbook sales. They bought the books for me so the money should go back to them. They let it ride for a month while we pay the GF last semesters tuition.
Assets
My TFSA
$23,000 in TDB902 , I have contribution room for $4,200 more
GF TFSA
$14,000 in TDB902, she has contribution $12,000 more
Saskatchewan Pension Plan (SPP)
$2700 a onetime investment from my family when I turned 18. It is a locked in plan, and I am just letting it ride
Public Employees Pension Plan (PEPP)
$2,500 this is my pension plan through work. They contribute 7.25% and I contribute 5%. I placed this in the most growth orientated plan they have.
Cash
$1,800 in an ING Direct savings account.
Vehicles
97 Ford Ranger estimated value $1000 (my vehicle)
06 Malibu estimated value $5000 (her vehicle)
Monthly Spending/Budget
Credit
$3,800 net from me
$500-1,000 net from her, this value depends on what work she can schedule in around school.
Debit
Investments: $2000, plan is to max out my TFSA first, then hers then open a cash account
Rent: $1,200, contract runs to beginning of May, includes water
Groceries: $500
Gas (Vehicle): $200
Electricity and Gas utility: $150
Insurance/Plates: $150 (paid in full once a year for both vehicles)
Cell Phones: $150 (aprox $70 each)
Restaurants: $100
Public Transport: $62
Internet: $50
Hobby: $20
Tenant Insurance: $18 (paid in full once a year).
This breakdown actually puts us overspending each month… Ouch, so while okay right now (Plates/insurance not due again until September and Tenant Insurance probably not going to be renewed… thoughts?)We do need to cut something and boost savings to the 70% mark.
Other things to note:
I am a user of Mint and have gotten my GF to start using it. I love it, she is a hesitant convert.
The truck was purchased from my parents and gets used on the weekends as I take the bus to and from work Monday to Friday. We plan to give it back to them when my GF completes her degree and has a more standard schedule.
My cell phone plan locks me in for another 23 months ($351.09 device balance + $50 cancelation fee), putting canceling and switching to a sub $20 prepaid plan at a 10 month payback. One thing we were thinking of doing is waiting until my GF phone contract runs out in March and letting her take over my current contract. She is not ready to give up the Smartphone yet, so this keeps her on a data plan and helps us avoid the biggest penalties, while ditching a $70 plan.
At our current savings rate, we will max out the TFSA’s before the end of the year. I intend to open a cash account to invest what won’t fit. I intend to use the TFSA as the equity portion of our portfolio and get that started first (why we are all equity at this moment). Dollar value of what can invest will increase when GF finishes degree in three months and starts being paid to teach.
Putting this together makes me realize that I am not in as good shape as I thought, but let us tear my plan apart and put it back together.
Should be fun!