Hi, first post here. I'll admit the subject is pretty much click bait, things aren't that dire but they need solving. Here's my situation, I'm a 32 year old software developer with a bit of a spending habit. As a result I’m in a bit of a debt emergency. Currently my debt is sitting at $6k on a CC, $6.7k for a car loan, and $5.5k on a investment loan (in descending order of interest rates). I know, it’s crazy. But luckily at my current rate of paying them off I should be free and clear within a year.
So now I’m planning on how I’ll ever be able to retire, because at this rate that’ll never happen. Currently my income is $4680 a month, with my expenses being $2750 (mortgage, food, spending money, insurance, fuel, utilities, property taxes, internet, cell, gym). I want to save 50% of my income each month, with the majority going to max out my RRSPs, TFSA, and then use the rest either for paying my mortgage or investing in mutual funds. I’m not sure if paying the mortgage is a better deal for the next bit, I may wait to see how the interest rates change for the next 3 years until my mortgage comes up for renewal (currently pay 2.59%).
So clearly to do this I need to increase my income to $5500 a month, and on top of that I need to start saving for my next car (current one has an extended warranty for another 3 years). I’m a bit of a car enthusiast so I would like to budget a little more than some people, maybe $500 a month for the short term, plus another $500 a month for the long term. That brings my necessary total income up to $6500 a month (after taxes), at least to have the type of lifestyle I’d like. Which is $1820 above what I currently earn. Seems daunting to reach that level of income in a recession.
I’ve thought about having my girlfriend move in with me, but the problem is she and I aren’t on the same page as far as spending. Because she’s a civil servant she’s not worried about retirement, she’ll have the government paying her salary for the rest of her life. As a result, she’s fine with spending every cent she makes on luxuries (travel for instance). And to be honest she has a negative NW. I’m conflicted with breaking up with her to find a girl whose thinking is more in line with my new priorities.
Any help would be appreciated. Thanks and sorry for the wall of text.