Topic Title: Save for sabbatical year without compromising long term goals
Life Situation: 25, single with a cat, living in Quebec, Canada
Gross Salary/Wages: $40,275
Individual amounts of each Pre-tax deductions
Health and Dental = $1,337
Union dues = $288
Government programs (EI, QPP, QPIP) = $2,775
Pension (+match) = $1,352 (x2)
Other Ordinary Income: Some side income earned by coaching at my curling club - pays for membership/food/drinks/events there, but no take home pay
Qualified Dividends & Long Term Capital Gains: None
Rental Income, Actual Expenses, and Depreciation: None
Adjusted Gross Income: $34,523
Taxes: $6,789
Take home pay = $27,734 ($1,066 bi-weekly)
Current expenses:
Rent = $710
Internet = $62
Electricity/heat = $46
Cell phone = $40
Gym Membership = $12
Netflix = $10
Total fixed costs = $880/month, $10,560/year
TFSA contribution = $100/week, $5200/year (would like to change investment for something with lower fees)
Groceries = $160 (Shop at local grocery store weekly)
Household = $35 (toilet paper, hygiene products, dish soap, etc.)
Eating/Drinking out = $110 (One area I should cut down on but hard saying no to going out with friends)
Travel = $410 (Probably too high but I love to travel, includes 1-2 bigger trips per year and a few weekend trips)
Cat = $50 (monthly average of vet, litter and food)
Clothes = $70 (Don’t shop much but try to buy quality when I do)
Other = $90 (random expenses like event registration, cab rides, school supplies, varies a lot from month to month)
Total variable costs = $925/month, $11,100/year
Miscellaneous cash = $70/month, $840/year
Expected ER expenses: Long way off, who knows
Assets:
Work defined contribution pension = $5,000
RRSP = $300 (not contributing right now)
TFSA = $5,600 (adding 100/week)
Emergency fund = $1,100 (also have $10,000 line of credit @9% available for emergencies, though I don't want to have to use it)
Liabilities: None
Net worth = $12,000
Savings rate = 19% gross, 27% net
Specific Question(s): I have been working for the past 3 years, paid off all my student loans and am now starting to build up my net worth. I want to save more but I don't know how with my current income/expenses. Not sure if I should be trying to find a new job, optimizing my current spending, starting a side hustle… I also want to take a year off and travel but I’d like to leave my TFSA and pension intact to gain interest and save up separately for my travel. If I don’t take any big trips this year, I could save the $5,000 I spent on travel last year and use that for a big slow travel trip with lots of couchsurfing, working in hostels, etc. along the way to make it cheaper. I also want to invest my TFSA elsewhere, currently at RBC with a high MER mutual fund and would like to switch to index funds but not sure how to get started (Canadian mustachians please advise!) I welcome any thoughts or suggestions that might help me work towards my goals! Feel free to face punch me, I can take it!