Comments on: Major Expenses in 2009 http://blog.canadian-dream-free-at-45.com/2009/12/29/major_expenses_in_2009/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: JMK http://blog.canadian-dream-free-at-45.com/2009/12/29/major_expenses_in_2009/comment-page-1/#comment-40321 JMK Fri, 19 Feb 2010 15:28:47 +0000 http://blog.canadian-dream-free-at-45.com/?p=1252#comment-40321 Finally had to replace my husband's 1997 SUV. It decided to retire itself in January. I began working from home (I'm fortunate my company supports this) and my husband drove my car until we settled on a replacement in May. Between January and May we stopped our weekly payments to RRSPs and extra mortgage payments and let the weekly excess pile up. By the time we found the new(er) 2004 replacement we had the cash ready. We've cut the non-essentials from our life and generally live on 55% of our take home pay. As a result we don't save in advance for big purchases. We just temporarily suspend the massive savings we are socking away as we work toward early retirement. When the dishwasher failed we hand washed dishes for a couple of weeks while we shopped for the replacement and then paid cash. We do the same when we want to take a trip, replace the roof, new tires etc. Rather than have money accumulating in various savings accounts waiting for large future expenses that can't really be predicted we'd rather get the money into our RRSPs sooner than later. Yes this always assumes we'll be making way more than we need to live on, but so far that's been working for us. Most major expenses aren't a surprise. You know your roof or tires will need replacing next year, or that the carpet is getting worn looking. We had expected the SUV to need replacing 2yrs before it happened. It just refused to give up and I'm glad the cash was busy working in our RRSPs rather than sitting in a savings account all that time. Finally had to replace my husband’s 1997 SUV. It decided to retire itself in January. I began working from home (I’m fortunate my company supports this) and my husband drove my car until we settled on a replacement in May. Between January and May we stopped our weekly payments to RRSPs and extra mortgage payments and let the weekly excess pile up. By the time we found the new(er) 2004 replacement we had the cash ready. We’ve cut the non-essentials from our life and generally live on 55% of our take home pay. As a result we don’t save in advance for big purchases. We just temporarily suspend the massive savings we are socking away as we work toward early retirement. When the dishwasher failed we hand washed dishes for a couple of weeks while we shopped for the replacement and then paid cash. We do the same when we want to take a trip, replace the roof, new tires etc.

Rather than have money accumulating in various savings accounts waiting for large future expenses that can’t really be predicted we’d rather get the money into our RRSPs sooner than later. Yes this always assumes we’ll be making way more than we need to live on, but so far that’s been working for us. Most major expenses aren’t a surprise. You know your roof or tires will need replacing next year, or that the carpet is getting worn looking. We had expected the SUV to need replacing 2yrs before it happened. It just refused to give up and I’m glad the cash was busy working in our RRSPs rather than sitting in a savings account all that time.

]]> By: Dave http://blog.canadian-dream-free-at-45.com/2009/12/29/major_expenses_in_2009/comment-page-1/#comment-38022 Dave Wed, 30 Dec 2009 12:03:01 +0000 http://blog.canadian-dream-free-at-45.com/?p=1252#comment-38022 @ jon_snow - There seems to be quite a few incidentals that you don't really think about in weddings that seem easy to justify at the time (the old "oh well, it's once in a lifetime........") @ Andy - the "irresponsible" trips tend to generate the best stories :) with the other "problems" encountered, yours sounds like a very interesting adventure. @ jon_snow – There seems to be quite a few incidentals that you don’t really think about in weddings that seem easy to justify at the time (the old “oh well, it’s once in a lifetime……..”)

@ Andy – the “irresponsible” trips tend to generate the best stories :) with the other “problems” encountered, yours sounds like a very interesting adventure.

]]> By: Andy http://blog.canadian-dream-free-at-45.com/2009/12/29/major_expenses_in_2009/comment-page-1/#comment-37977 Andy Tue, 29 Dec 2009 23:41:49 +0000 http://blog.canadian-dream-free-at-45.com/?p=1252#comment-37977 I decided to deal with the banks instead of a mortgage broker. My reason is that I'm purchasing variable and not fixed. Just read a report where over 80% of people come out ahead with a fixed rate mortgage. My two big expenses this year were a trip to Mexico and rebuilding the car's transmission. The trip was a little out of character for me and was a little irresponsible. Some other problems made it even more expensive than expected. Don't worry, I won't make the same mistake again :) I decided to deal with the banks instead of a mortgage broker. My reason is that I’m purchasing variable and not fixed. Just read a report where over 80% of people come out ahead with a fixed rate mortgage.

My two big expenses this year were a trip to Mexico and rebuilding the car’s transmission.

The trip was a little out of character for me and was a little irresponsible. Some other problems made it even more expensive than expected.

Don’t worry, I won’t make the same mistake again :)

]]> By: jon_snow http://blog.canadian-dream-free-at-45.com/2009/12/29/major_expenses_in_2009/comment-page-1/#comment-37961 jon_snow Tue, 29 Dec 2009 17:01:28 +0000 http://blog.canadian-dream-free-at-45.com/?p=1252#comment-37961 I got married in July of this year, and despite all intentions, my net worth chart, which usually grows steadily all year, has a very noticable plateau during the period of the wedding and honeymoon. It has still been a very good year... the fact that I didn't get involved in equity investment until AFTER the lows of March 2009 has been very rewarding so far. I got married in July of this year, and despite all intentions, my net worth chart, which usually grows steadily all year, has a very noticable plateau during the period of the wedding and honeymoon.

It has still been a very good year… the fact that I didn’t get involved in equity investment until AFTER the lows of March 2009 has been very rewarding so far.

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