What percentage of your net income do you put aside every month?

[ExtraSlow]

Originally posted by J-hop
Not having a car payment is a huge factor too. My most expensive car was 13k (gfs car) my daily cost $2500. Some people spend 15-20% of their net income on car payments. Absolutely ridiculous IMO.

Holy shit yes this. I have close friends who spend more on vehicle payments than they do on their mortgage! And it ain't because they have a small mortgage!

[rx7boi]

After paying my mortgage, I'm saving about 21%.

[ercchry]

Originally posted by J-hop
Not having a car payment is a huge factor too. My most expensive car was 13k (gfs car) my daily cost $2500. Some people spend 15-20% of their net income on car payments. Absolutely ridiculous IMO.

There is a minimum annual cost to owning any vehicle... if it's not payments... it's maintenance. Having owned every end of the spectrum there is a balance that needs to be found, owning a beater is not always the most fiscally responsible solution... not to mention you actually have to live with it

[bjstare]

Originally posted by J-hop
Not having a car payment is a huge factor too. My most expensive car was 13k (gfs car) my daily cost $2500. Some people spend 15-20% of their net income on car payments. Absolutely ridiculous IMO.

Agreed 100%. A large car payment (percentage-wise of net income), is such a horrible use of money.

[Lex350]

I put $1700 a month aside each month..and by put aside I mean give it my greedy ex-wife!

[J-hop]

Originally posted by ercchry


There is a minimum annual cost to owning any vehicle... if it's not payments... it's maintenance. Having owned every end of the spectrum there is a balance that needs to be found, owning a beater is not always the most fiscally responsible solution... not to mention you actually have to live with it

Yea but paying car payments on a car you can't afford otherwise never balances against buying an older used car and saving the difference. Not even considering insurance.

Plus if you're doing your own work and it's a car readily available at pnp then maintenance really isn't much of a cost.

Yea the whole "you have to live with it" is a fine point. I get made fun of by coworkers because they can't believe I drive a "rusty POS". But that allows me to save near 50% of my pay checks.

[canadian_hustla]

OP - thanks for this it is kind of nice to know i feel so broke all the time and i always thought it was because i had a big mortgage lol

Disclaimer. We don't go on expensive vacations and we drive old cars (relatively speaking)

29% club here

TFSA or cash - 26%
Defined pension (excluding matching) - 3%
RRSP - 0%, i just don't believe in them

Notable expenses - parking downtown is 4%

I am a firm believer in the power of two incomes which helps in my case...

EDIT: oh and no kids lol

[KappaSigma]

Originally posted by zhao
If OP wants just savings from salary, 40-50% for myself for the last few years.

all my 20s was "0%" saved, but I was either using old sports cars as 'savings', or dumping every penny into my business.



Disagreed. What is recommended for one person may not be recommended for another.

What if he put 5% down on his house? You'd be putting his money to sleep with that advice.

Huh? You pull the 5% back out and now the interest is deductible.

[Xtrema]

~30%

If you count principle payment on mortgages for rentals, probably just shy of 40%.

[zhao]

Originally posted by KappaSigma


Huh? You pull the 5% back out and now the interest is deductible.

Was there some change in HELOC's I am not aware of?

Last time I looked into HELOC's it broke down like this:

Appraised value of property = 500k
Maximum amount available on a HELOC w/ a mortgage = 400k
If 250k is still owning maximum HELOC w/ a mortgage amount = 150k
With no mortgage, aka nothing owing, maximum amount = 325k

What bank lets you do 5% down on a mortgage and then instantly gives you that entire 5% back in a HELOC?

[ercchry]

^^^you haven't looked in a while, refi max is 80%, HELOC is now 65%

Originally posted by J-hop


Yea but paying car payments on a car you can't afford otherwise never balances against buying an older used car and saving the difference. Not even considering insurance.

Plus if you're doing your own work and it's a car readily available at pnp then maintenance really isn't much of a cost.

Yea the whole "you have to live with it" is a fine point. I get made fun of by coworkers because they can't believe I drive a "rusty POS". But that allows me to save near 50% of my pay checks.

Rather have money in appreciating assets than depreciating... total cost of ownership can fluctuate greatly, if you work on your own car your time must be given a value, as well with the tools needed to actually do it

My best car value has been mildly used, still under warranty vehicles, I have had multiple that have had a total annual cost of less than $3k... while the older shit has had multiple $1k+ bills within months, and have had bigger losses at resale

Also... when you're an adult insurance is pretty damn close across the board no matter your vehicle choice... old Lexus LS430 vs current e90 M3 is within $10s of dollars of each other

I'd rather have a consistent $300-$500 payment than rolling the dice on not having a car for a few days due to break down, and unknown repair bills, while the full balance of the car sits in an account making more money than the interest on the car loan... bigger picture stuff. Run life like a business, the perks are much more enjoyable than pinching pennies

Not saying I agree with dropping mortgage sized payments on cars every month... but the middle between that and driving throwaway vehicles isn't all that bad

[ercchry]

Originally posted by Feruk
Why would I not count my employer matching? These rules are confusing.


That's not really accurate because we have no recourse mortgages in Alberta and you can't assume real estate will always go up. If real estate were to tank here, you could walk away from the house and likely only lose the money you'd paid into the mortgage. However, any extra payments towards the mortgage would be sunk.

That's not really accurate either... if you have an insured mortgage, you best believe there is recourse... "then put more than 20% down" ...nope, there is still backend insurance... I want to say up to 65%? Not looking it up

[max_boost]

Find a balance somewhere that works and lets you sleep soundly at night.

I am currently over the car kick but I still like a nice looking/reliable/decently fun car to drive around.

[That.Guy.S30]

Originally posted by max_boost
Find a balance somewhere that works and lets you sleep soundly at night.

I am currently over the car kick but I still like a nice looking/reliable/decently fun car to drive around.

Wtf?

What have you done to max_boost?

[max_boost]

The future belongs to the real ballers and or the next gen young beyond ballers

[zhao]

Originally posted by HiTempguy1
Maybe its just me, but some people posting in here either:

1) Are balling out of control (not surprising, it is beyond)

2) Basically do nothing that costs any money... which isn't a bad thing if that's your kind of deal, but I just couldn't live that lifestyle

3) Are WAY oversaving for retirement.

Like Sputnik:

- 10% into TFSA
- 7.5% into my Defined Benefit Pension (with another 7.5% matched)
- 8% into RESP
- 5% into RRSP

Why?? You are saving/investing 30% of your after tax income for retirement (well a bit less because the DB and matching is before tax but I digress)? I just don't really understand, especially with a DB, you'll probably get 60-65% of your highest 5 year average income when you retire. Why would you possibly need more money then, when you probably have way more expenses now then you will then?

I'm genuinely curious, do half of Beyonders plan to retire at 40 or 50?

I earn 6 figures, I to have a DB pension and all my calculations for retirement planning indicate it will be more than sufficient. I also have a small amount going into a TFSA right now, but we're talking like 1%,

And I don't have a girlfriend or wife, I'd need even less for retirement assuming we were still together and she worked her entire life.

So yea... I don't get it, I must be missing something when people are saving 50% of their income per month. Or maybe they started saving late in their 30's and are making up for lost time?

You and I both did the spend every cent on racing thing. You know how expensive racing is, and you're probably exactly like me at your age where if you had 5g more, that just means that many more events you can go to that year.

I have no idea what other people are saving that much for, but IMO taking a bit of time off from full time racing and dumping every spare cent in to investing will allow me to either retire early, or give me a very big budget for racing forever, or both. I dont want to be old and fucked with 3 million in the bank I can't spend or enjoy, fuck that. But I would like to be semi old, and doing exactly what I want, as much as I want, without any financial stress.

So you make 6 figures, but even if that means you only make 100k (I make less than that at my career), your take home is probably around 70k, and realistically being able to save half of that isn't crazy (Honestly, I could have not financed my 335i, picked one of my 6 other vehicles to DD, and probably be saving more like 60%).

I still spend money, but I do not buy a lot of consumer bullshit. I'm not the guy that thinks he'll take up skiing, so he drops 4g on equipment to only do it 3 times a year, then to think next year I'll take up photography, so I buy 4g in equipment and only spend a day or 2 taking pictures. I'd be goodwilling/pawn storing some equipment to see if I like it first. Nor do I need the latest phone, tv, gaming console, and a lot of shit for the house/car that I know I dont need. Everything I buy is researched and somewhat calculated... and if I buy it, odds are I will use it until it is worn out. I also do not mind getting free stuff. Half my shirts cost $200, the other half were free shit that was given to me. When I needed a frying pan, I bought cast iron, because in 40 years it'll still be good. It took me a decade of racing before I started modifying my race car to go faster. Saving what I do doesn't bother me in the slightest, except for less racing, so I guess that makes me somewhat of person #2 on your list.

Now if you want to talk to someone who takes saving and pinching pennies to another level, way too far IMO, talk to my wife. She once worked full time + had another job that was part time, and banked 100% of her full time job's salary. She was mortgage free in her 20s.

[zhao]

Originally posted by ercchry
[B]^^^you haven't looked in a while

hmm, you'd be correct there (Id guess my info is from 2014ish), but do you know what KappaSigma is talking about? ...5% down on a new mortgage and instantly get a HELOC on that entire amount? I can't see that being real. That was definitely not doable when I inquired.

[ercchry]

Originally posted by zhao


hmm, you'd be correct there (Id guess my info is from 2014ish), but do you know what KappaSigma is talking about? ...5% down on a new mortgage and instantly get a HELOC on that entire amount? I can't see that being real. That was definitely not doable when I inquired.

Best of my knowledge he is talking about already having the heloc in place... while you are not

[That.Guy.S30]

Originally posted by max_boost
The future belongs to the real ballers and or the next gen young beyond ballers

Yea. Everyone on here is a millionaire +

Here I am counting my pennies and looking up to max_boost..

[J-hop]

Originally posted by zhao


...So you make 6 figures, but even if that means you only make 100k (I make less than that at my career)...
...(Honestly, I could have not financed my 335i, picked one of my 6 other vehicles to DD, and probably be saving more like 60%).....

Not judging but how the hell are you able to finance a 50k car and own 6 other cars and pay a mortgage on less than 6 figures and still put anything substantial away for savings??

Saving isn't just hoarding money. The economy is shit, I want at least a 12 month safety net of liquid to semi liquid cash in case I lose my job. I don't want to be sweating at night trying to figure out how much longer I can eat ramen noodles for to keep my house. Or in the best case scenario I keep my job I want to move out of the city onto an acreage where I can build a nice garage for all my crappy cars . I also want to be able to take trips without spending months paying off a credit card bill. Etc. Really as max said though it's about striking a balance that allows you to sleep at night....