In or around 2015 I started to get serious about understanding my finances. I began tracking my income, spending and investing, in a haphazard sort of way. In 2016 it became more methodical.
In hindsight I wish I had made these posts in real-time, as my situation was unfolding. I had intentions to do so, but, I was focused on graduating from college and landing a job that would triple my income…better late than never.
This is for the month of June, 2016.
Let’s see what we’ve got!
Total Income: $3059.11
Total Spending: $2199.65
Total Invested: $-120.20
% of Income Invested: -3.93%
Total Net Worth: $28,660.46
Womp womp…red numbers in two of the most important categories. What gives? I remember this month.
We were living, and still do, in a city that is not pedestrian friendly. The stress that would inevitably develop at home by being without a car was deemed not worth it. With only a couple days to shop around we pulled the trigger and bought a car.
We found a good deal on a used 2009 sedan, with very low mileage. We used a low interest line of credit to pay for it. The dealership offered to finance, of course, but considering we were both still students with unpredictable income, the rate was not good. By using my LOC we were able to pay “all cash” and take control of the monthly payments ourselves. We decided on $100/month per person, so $200 total. I also transferred $1000 out of my TFSA as a lump sum payment towards the car. It may have been technically more beneficial to keep that money invested, but it felt psychologically satisfying being able to slam a chunk of cash down with little concern.
Looking on the positive side of things, my net worth held strong as I was still dumping as much as I could into my brokerage TFSA.
My income was over $3000 for the month; a first time experience for me. Over $100 in dividends too, that feels good!
I remember being knee deep in my work term at this point. If I remember it honestly I found it stressful. I was worried about impressing everyone, both management and coworkers. I felt like I was making a lot of money than at the student rate of approximately $16.50/hr, but I knew a full time job would bring me to about $30/hour. A wage I would have never imagined being possible.
The rest of my expenses were pretty bang on. Ignoring the oddity of the $1000 spent in the “Car Misc” category, my typical expenses came in at just under $1200; my income was two and half times that…oh man, the potential savings rate…that gets my heart pumping!
Well…thanks for stopping by.