Have you thought about everything before buying your first house ?

Before stopping renting your place, have you thought about everything before buying your first house? We all know the closing fee of becoming an owner, the insurance cost that will be higher and the mortgage payment.  But they are not the only expenses of your first house.

First, you have to think that you need to keep your house in shape. You need to work on it and that cost some money. If you do it yourself you will need new tools to do it and parts or if you don’t do it you will pay someone to do it. Depending on the size of the house you need to do each room every couple year.

Second, you will need some basic utility like lawn mower, shovel for winter and summer.

Third, the emergency funds need to be bigger since a problem can happen in the house and you need to repair it NOW.

Fourth, don’t think you have seen everything at the visit and the inspection. There are some kinds of stuff like the floor you though was OK, but it‘s scratched. You will see all the little problems and big one once you own it. Some will bother you, but nobody will see them.

These are some of the things I thought before buying my house, but I didn’t thought they will be so high expense. For some person, the mortgage payment, will be the same as the rent, but the other fee will not permit them to live in a house. So sometime, renting is not throwing away your money. It can permit you to continue to live well and save some money.

Readers : have you had some unexpected expenses you didn’t think with your first home ?

Goal Update April

Hello everyone, this is my goal update of april.

This month is a good month for my goal.  I kept selling stuff on Ebay which gonna cover the inventory fee and all the other are success or on its was.

Goal updates :
  • Goal 1 : Get 2000$ ahead to cover the expense of next month On its way

I am now at around 1000$ to cover next month expense. It’s 700$ morethan the last update,

  • Goal 2 : Add 100$ month in my RSSP On hold

No modification since the last update. This goal will be put on hold for the moment and but this year I need to put some in the RSSP. Instead of adding money to my RSSP, I’ve added some to my TSFA account.

  • Goal 3 : Add 100$ month in my Emergency Funds Success

I’ve added 100$ to my mortgage checking account to have a month worth of payment in it. I’m considering this my emergency funds.

  • Goal 4 : Get a new tablet Failed and cancelled

This goal will not be completed.

  • Goal 5 : Keep this blog updated Success

I posted regularly in April.

  • Goal 6 : Trade cryptocurency. (Bitcoin, Dogecoin, Litecoin …) On it’s way

I’ve traded some cryptocurency.

  • Goal 7: Add or speed 100$ biweekly for the incoming baby.   Cancelled
  • Goal 8 : Make at least one trade in Questrade by trimester – Success

I’ve made a trade in April.

  • Goal 9 : Get a new inventory for the business. Success

I’ve bought for around 350$ of stuff to sell. This should make around 700$.

Wasting your money on drinking and eating out

BeerAfter reading Blonde on budget post on this subject, I’ve got the idea to share my story on my personal experience on wasting my money on drinking. While I was younger, every weekend I was going out to eat and drink with friends. These weekend cost me between 150 to 300$ each.  All this money was going to pay for beer and something to eat. I was living at my parents’ house and I was freshly out of school and working full time. I was putting money on a saving account to pay my car loan and I was spending all on these weekend and computers.

The money spent on computers was around 1500$ years and after using some of the stupid thing I bought like a gaming wheel at 350$, I sold them on kijiji. But the 150 to 300$ wasted on these weekend is lost forever.

What I wish I did back then ?

I wish I had put more money in a saving account or invested it. I don’t say I should not  did that, but I could have spent around 75$ for these weekend instead of 300$. With 75$ I could have enough fun while drinking a beer or two without getting drunk.  That would have made me 225$ by week in saving or 11700$ by year. I did that for about 3 years, so I wasted around 35100$. This money wasting was around 8 years ago.  Today with a 7% return per years, I would have around 60308$. This would have made a great down payment for my house or a great portfolio.

I wish I had taken this in consideration before wasting all this money, but I can’t go back there so the only thing I can do is share my experience on that subject.

Readers : We all made error while we were younger, what was yours ?

Net Worth March Update : $11,937.01 (+31.19%)

Assets Feb-16 Mar-16 Monthly Change
Checking $538.00 $3,607.78 570.59%
Saving $2,233.00 $51.25 -97.70%
TSFA Investment $815.00 $980.57 20.32%
RRSP Investment $0.00 $0.00 0.00%
House $215,000.00 $215,000.00 0.00%
Car $17,000.00 $17,000.00 0.00%
Mortgage $208,372.00 $207,873.85 -0.24%
Car loan at 0% $15,615.00 $14,957.86 -4.21%
Credit Card $2,499.64 $1,870.88 -25.15%
NET WORTH $9,099.36 $11,937.01 31.19%

This is my second net worth post. The mortgage and the house is owned by me and my wife. The others entry are only my numbers and do not count my wife net worth.

This month was kind of rough in income since I’ve got 1 week of 0$ income and an other one that was cut by half. Luckily it was a 5 week month so it’s not that bad and I’ve got 1000$ from my parents to buy some stuff for the house.

I had to use my saving to pay all the bills. These saving were in a 0.8% register saving account so it’s not a big lost and I will make it again to the amount it was. The amount I didn’t used to pay my bills is in my checking account. Also, I’m trying to get one month of mortgage payment in my mortgage checking account. I consider this as money to be used if I can’t pay the mortgage for a month or if the money is not transfer fast enough between banks.

The TSFA investment account grow a lot this month since I added $150 in cash in it. Also, I’ve  started a little day to day trading in it to make it grow faster.

I also invested 286.11$ USD in my side hustle in the last week of the month to buy a new inventory. In the month of march, I’ve sold for 43.75$ of stuff. This is not my profit, but the revenue of the month. With this investment, I am looking to make the revenue of the side hustle around 100$ for the next month.

Readers : Did your net worth grow last month ?