2/03/2016

Where the Budget Stands

Okay, so now that we're down to just EI and Jordan's salary, it feels like a good time to post the budget we're working with.  Now, this doesn't apply for February because we still have the Mortgage and the Line of Credit, and all the expenses (utilities, taxes) associated with having the house in Alberta.  Once the house clears, we're going to be clearing those debts and eliminating those expenses,  so this budget is for March going forward until we find a new home.

Some things that will be changing soon are insurances.  We're currently looking at Life Insurance for both of us, and we'll also need to look at tennants insurance of some kind to protect our belongings that are in storage.  I've left line items for those, but the numbers are blank for now.

You might have read on previous posts that I was eligible for the maximum EI and that we also are receiving USSB and BC child care benefits, so that plus Jordan's scary makes up our monthly income.

Next we have our cell phones and the unknown insurances.  Following that we have the benefit premiums I'm paying to maintain my benefits through work.  These used to be deducted from my pay - health care is paid for 100%, but this is 50% of the dental care premium, and Long Term Disability Insurance.

We're paying for TV at my mom's place which is the next line item.

Following that is the car payment - which is paid bi-weekly.  We owe around $14K on this still, so have a ways to go and it is at 0% financing.

I often refer to our monthly spending as 'day-to-day' - this is the money allocated for gas, groceries, hair, clothes, EVERYTHING that is not a fixed expense.  I did a post for leaving this as is a little while ago - but we'll keep evaluating as time goes on.

The savings and planned spending are relatively low considering the amount left over at the end of the month ($1,500) - which is part of the point of this post, to figure out what to do with it.  I feel like it would be good to boost RRSP for a while, and important to always tuck away a little bit for emergencies.  The Baby RESP gets $100/month and the Baby bank account gets the $86.28.  I want to have some money in his bank account for 'long term savings' for him to learn about when he's older, but we may also use some money from here at the end of each year to top up his RESP - we shall see.

We pay for auto insurance in BC annually, so the $250 is to set aside for each year.  Then of course vacation, gifts, and maintenance.  This is more personal, than home right now, because we won't have  a home of our own for a while - but this is for basically everything that we would need from home depot for house maintenance (yard supplies, shingles, money for big house stuff like when a furnace quits etc.).  Personal Maintenance is things like hair cuts, work boots etc.  If we need a 'top up' from the day-to-day.

Okay....so.  The only debt we have is the Kia which I'm inclined to pay off with the rest of the $1,500 each month BUT with planning to buy a house, it might make more sense to just stash all the extra cash for a bigger downpayment, bigger emergency fund - that sort of thing.

What do you think?  Keep the cash, or pay off the Kia?





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4 comments:

  1. I am EXTREMELY debt averse, so personally, I would tend to pay off the car first (unless, of course the amount I could save during the same time period would SIGNIFICANTLY reduce my mortgage- then I would have to reconsider). The numbers are important when making financial decisions, but I think most people forget that our personalities- particularly debt and risk tolerance- are very important things to consider as well. So, I'm not really much help here... I would say to crunch the numbers, but pay attention to what your gut is saying, too. Good luck!

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    1. Thanks for weighing in! I'm so torn! I'm thinking I might split the difference - half on the car, and half cash for just in case until we settle into our new place. Then, if we didn't need it, I can pay of the rest of the car. I've got a bit of time to think on it, so we'll see where we end up.

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  2. I would save the money for a house down payment.

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    Replies
    1. A vote for cash! Thanks ND. I think we might go 50-50 on cash and the Kia.

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