Archive for April, 2011
Starting the Journey of Home Ownership
I’ve been kicking around the idea of buying a condo for the last few years, and am now really starting to look into it. While I don’t expect to buy a condo this year, I’m solidly down the path of being financially where I need to be. Over the remainder of the year, I’m going to do more research into the local market, and start educating myself on all things homeownership-ish.
What held me back over the last year was school — aside from the financial impact, the stress of home ownership on top of a full time course load, on top of a full time job, would have probably been too much. But, with school now done — its time to start getting more serious about it.
I’ve been talking with friends who have mortgages, and it looks like for my downpayment (about 40k at this time), and my income, I should be able to get around $300k in total for a home. Now, this sounds like a lot… But, with me wanting to live downtown (and I mean downtown, as in a few blocks from office buildings), it will buy just barley a 1 bedroom condo.
I could always go outside of downtown, but that means more commuting, and a bit of a shift in lifestyle. I’ve spent the last four years living downtown, and love it — the proximity to everything is amazing, there is always something to do, and the lifestyle in itself is great. This is something I don’t want to give up… at least, not at this point.
I figure over the next few months I’ll start attending open houses, and start watching the MLS a bit closer. All of this, will be small steps towards owning my own place. Also at the same time, I’ll redouble my effort in saving money — so far, I’m doing pretty well, but I could do better.
Until then, I’ll keep contributing to my RSP’s and savings account, for when I’m ready to pull the trigger.
The last thing running around my head, is career wise and if I’m ready to jump ship to something else. I have a pretty solid job right now, but I’m going to have to make a move sooner or later, and I’d prefer to do so without a mortgage looming over my head.
Has anyone gone down the home-ownership route? Share your tips and suggestions in the comments below.
The Next Stage
I’ve reached an interesting part in my career/life, where within the next couple of weeks, I’ll officially be done school… forever. For the past several years, I’ve been finishing a degree on top of working full time, which has left little time for an actual “life”. But all that comes to a change, as I finish up my final exams this month.
So then what?
I’m not one who sits around doing nothing very well — I need to stay busy and mentally stimulated. While I have no real definitive plan for exactly what happens the day after I’m done, I have a few idea’s running around in my head to fill my time:
- Refocus on my Career: I’ve done pretty well at the company I’m at now, and its got a lot potential. I’m going to re-invest some of my energy into pushing it to the next level.
- Establish Professional Presence Online: For my career path, having an online portfolio or blog would help establish credibility as an ‘expert’ in the field. I’m going to start writing more, and see where it takes me.
- Read 1 Business Book/month: In any field thats growing, reading/learning is imperative for professional and personal growth. Gone are the textbooks, and now is the time to read books on sales, marketing, life and business in general (which I find more interesting than fiction, any day)
- Build Business Network: I’ve avoided networking (mostly because of time constraints… and that I’m always uneasy about it) for the past couple of years, but its time to start getting ‘out’ there at industry events, meetups, and online. I’m now brushing up on actual networking skills by reading Networking for People who Hate Networking, by Devora Zack.
- Get Active: With it already being Spring, theres lots to do outside. I’m going to get outside more, and enjoy the fresh air.
But before I dive head in to all of that, I’m going to just relax for a bit… maybe plan a trip, or just take some time off to enjoy my city. But a few weeks of doing nothing, may do the trick.
My friends who have graduated before me, have all told me the same thing — its a dramatic change, and fast, where there is no more school, and a whole lot of free time to fill. Its both exciting, and scary at the same time…
Monthly Spending: April 2011
Its finally April — I don’t know where March went (or February for that matter), but Spring is around the corner, and I’m literally weeks away from being done school — forever. I’m starting to get worried about “whats next”, but looking forward to the break.
For April, the budget itself was challenging — again getting nailed with eating out all the time (something I’m going to fix once I’m done school), BUT, on the bright side, I got my tax return back, and did quite well.
February Budget Results:
- Home Basics: $1,100
FAIL – spent $1,245 — Needed to replace some home necessities. - Groceries: $250
Win-ish – Spent $141 (but I wasn’t eating at home… d’oh!) - Dining Out: $250
ULTRA FAIL – Spent $526 — Been eating out almost every meal, and its adding up. Seeing this number is shocking, and something I’m going to work on changing… Fail! - Convenience Items: $100
WIN – Spent $90 - Entertainment: $70
WIN – Spent only $1 (I need to get a life!) - Other: $200
FAIL – Spent $350 — but bought some more work clothes.
Budgeted: $1,970
Actual: $2,340 ($370 more than budgeted — d’oh!)
Overall, went over budget yet again this month — and again, its the eating out. I can’t believe I spent more than $500/month out — I need to get this in line, and start saving that money.
2011 Savings / Debt Repayment (per month)
- Student Loan: $600
WIN — paid $1000 towards it (from my Tax Return) - Retirement Fund: $600
WIN – I put $3,000 into my market account (from Tax Return)
The tax return really helped in achieving these goals, and blowing them out of the water. This was planned, as my overall yearly goal, depended on a lump sum investment from my tax return.
March Net Worth Update
Assets
- Bank Account: $889.78
- RSP: $30,228
- TSFA: $5,565
My stocks are still down after the troubles in Japan and Egypt, but slowly recovering. Asset wise, I’m up 6% over last month.
Liabilities
- Student Loan: $8,979
- Credit Card: $0
I’ve decreased my liabilities by 23% from last month!
Overall…
Net Worth: $27,714 (+17% growth over March 2011)
This feels good — last month I was down 6%, now this month, I bounced up +17% — thank you tax return!
Thats my March 2011 results — how did you do?