Hello all! I have been reading the forums for some time now and would love to hear your advice!
Life Situation: Single, 1 dependent (age 10), Ontario Canada, 33 years old.
Gross Salary/Wages: $42,000
Other Ordinary Income: $900/mth (mainly government child benefits and support payments)
Taxes: $600/mth
Current expenses: $1500
Assets: Emergency fund $1000
Liabilities: Student loan $40,000, no interest for next 5 years - minimum monthly payment $200
Specific Question(s):
What do I do with the $2000/mth that I am saving?
-making my emergency fund bigger
-paying off the student loan
-purchasing a vehicle (I don't have one at the moment)
-starting an RESP for my child
-starting an RRSP or TFSA
-saving downpayment
Considerations:
-the student loan feels like a huge burden and I would like to get rid of it; however I don't know if it makes sense to focus on that when there is no interest accumulating
-I don't really need a vehicle, but it would make my life easier and save time - not sure if it's worth the expense though; my insurance rate would be approx. $180/mth; also don't know what would be a good amount to spend on a car - last time I bought a vehicle it was for $2000 and it broke down quickly
-would like to start the RESP to take advantage of the government grants that would be added to it ($600/yr if I contribute $2500/yr)
-buying a house - not sure this is something I want to do but thought saving a downpayment may be worthwhile in case I decide it's a good idea to buy; I would likely be looking at $200,000 and would like to have about 20% to put down
I'd like advice on whether I should do all of these things at once, contributing a bit to each, or do one at a time, or ... ???
What would you do?