June 2020 Spending and Net Worth Update

Pre-tax Savings Rate: 52.0%

For details on savings rate calculations and budget category breakdowns, see my Guide to Net Worth Updates.

Income (-0.39%)

Our side hustle is slowly coming back to life! While people aren’t holding parties, families are doing small get togethers in their bubbles and occasionally someone wants something special to celebrate. Still nowhere near where we were (under 10% our normal sales), but it’s something. Thankfully hubby remains eligible for the CERB, which pretty much exactly replaces what we’d normally get in our side hustle.

Other income this month consists of $67.51 of credit card cash back rewards, and $264.47 in our annual Costco rebate check. We try to buy everything we can from Costco and the $120 executive membership always pays for itself and then some with its 2% cash back.

Category This month Last month Difference
FULL-TIME JOB 7,163.70 6,496.97 666.73
SIDE HUSTLES 137.00 137.00
GOVERNMENT 3,177.45 4,077.42 (899.97)
DECLUTTERING 100.95 171.06 (70.11)
INVESTMENTS 74.20 53.63 20.57
OTHER 331.98 228.78 103.20
TOTAL INCOME 10,985.28 11,027.86 (42.58)

Expenses (+8.41%)

Splurged a little bit this month but I’m ok with that. I bought a small tablet (captured under household expenses [technology]). I was tired of reading eBooks on my phone as the highlighting and notetaking was a chore. It’s so nice to read with a larger format, much closer to reading actual books. And considering the number of books I can read through my monthly Scribd subscription, and what I would normally spend on books, I think I’ll save money in the long run. Fingers crossed.

Transportation costs were a bit lower this month as we got an insurance rebate check where everything was shut down and people were told to work from home. Misc expenses was loaning my 11-year-old some money to buy supplies for one of his business ideas.

I was hoping to keep food purchases under $1000 but we went a bit over; we bought a lot of “treats” this month ($77.31 worth!). This included sweet cereal to eat dry for movie snacks, dealcoholized beer, and smoked salmon to make sushi. We also spent $29.99 to buy Season 5 of The Magicians. I think a lot of this was emotional spending… we’re having a hard time going on month 3.5 of being isolated with kids with challenging needs and having no help. If I need fruit loops and a show to keep going, I’m going to get them.

Category This month Last month Difference
TAXES 1,045.02 852.20 192.82
SHELTER (incl. insurance) 777.43 885.15 (107.72)
TRANSPORTATION 305.01 390.75 (85.74)
FOOD & CONSUMABLES 1,046.46 950.88 95.58
UTILITIES 414.31 414.31
INSURANCE (health, life, data) 293.70 418.69 (124.99)
HOUSEHOLD 401.83 20.13 381.71
CLOTHING, SHOES, ACCESSORIES (not work related) 22.99 22.98 0.01
HEALTH 17.44 86.10 (68.66)
EDUCATION 12.60 12.60
CHILDREN EXPENSES
PET EXPENSES 10.91 12.35 (1.44)
ENTERTAINMENT 29.99 14.18 15.81
GIFTS TO OTHERS 28.73 28.74 (0.01)
BUSINESS EXPENSES 312.22 171.08 141.14
EMPLOYMENT EXPENSES 479.18 463.69 15.49
DB PENSION + CPP 1,771.16 1,646.20 124.96
MISC 78.46 123.35 (44.89)
TOTAL EXPENSES 7,047.45 6,500.77 546.68

Balance (-13.02%)

Less than last month, but still not bad! To save $35k by Feb 2021 I’m going to have to ramp up my income though. COVID-19’s still putting a damper on the side hustle, but I can list all the stuff I want to get rid of that I’ve been hanging onto because it has value. That’ll be a goal for next month.

Category This Month Last Month Difference
INCOME 10,985.28 11,027.86 (42.58)
EXPENSES 7,047.45 6,500.77 546.68
BALANCE 3,937.83 4,527.09 (589.26)

Net Worth (+2.42%)

I can’t believe I just cracked 200k last month and I’m half way to 210k! After 2 years of stationary net worth it’s really nice to see progress here. Full time employment is certainly helpful.

Category This Month Last Month Difference
ASSETS 297,990 293,889 4,101
Liquid (Cash, HISA) 18,975 18,371 605
Semi-Liquid (TFSA, RRSP) 7,160 3,828 3,332
Fixed (house, car) 271,855 271,690 165
LIABILITIES 91,278 92,061 (783)
Auto Loan @ 3.99% 7,600 7,904 (304)
Mortgage @ 2.69% 83,678 84,157 (480)
NET WORTH 206,713 201,828 4,885

Assets Not Counted in Net Worth (+1.39%)

The RESP is still recovering from the COVID-19 dip. I also sold off some mutual funds and bought XGRO instead. I was debating hanging onto them until they recovered, but logically that didn’t make sense; yes, they’re down, but they’re tracking the index just like XGRO is tracking the index, so if I sell them down and buy XGRO for cheap, and XGRO has a lower MER, then I should still be ahead.

Category This Month Last Month Difference
PENSION ESTIMATED VALUE 92,400.40 91,221.84 1,178.56
RESP 19,666.34 19,485.72 180.62

Your Money Or Your Life Wallchart

So I’ve changed this up a bit this month, and I’m showing two different “expenses” lines. The orange “total expenses” line reflects my actual costs, and let’s me appreciate the true difference between income and expenses in terms of what I have available to save. The second, red expenses line includes only those expenses that would continue after FIRE (so no contributions to my pension, CPP, EI, paycheque deductions, etc.). My “estimated income at 4% SWR” line only has to cross the red expenses line for me to be financially independent.

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