Money Matters
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Help me save for repairs/advice on investing

I read in some other threads here how good you ladies are about cutting down on expenses and advice on savings vs. debt

 Right now I clear $3000 per month and the husband clears $2600-3800 per month

(we own our own business and the minimum he makes is $2600)

We have to pay a minimum of $1440 per month on our mortgage (2.99 perecent interest) but we currently pay $850 bi-weekly to pay it off quicker

Our expenses are follows

$300 per month into work savings account (my work doubles this amount, it is the maximum they will doubt and it vests in three years)

$150 per month work RRSP (Same thing as above, vests in 3 years and doubled)

Heath insurance: Work pays

Vehicle insurance: $160 per month

Home insurance: $180 per month

Electricity: $125 Per month

Heat: $45 per month (in the winter months)

Cable: $75 per month

Internet: $75 per month

Cell phone: $180 per month (one is business)

Private RRSP: $150 per month

Life insurance: $88 per month

Property taxes: $144 per month

Food: $400 month

Gas: $450 month (we even commute together in the car, which is less fuel)

Entertainment: $300

Yoga: $180 per month

Gym memberships: Work pays

 

We currently have $55,000 in various GIC that mature at different times in the next 5 years, they are currently only making 1.25-2.25% interest (pitiful)

We have RRSPs as well that are locked in until retirement. My questions are follows.

Since the mortgage interest is higher than the GIC's are bringing in should we be pulling them and applying to the mortgage? (we have no other debt than our farm mortgage)

Our vehicles are a 06 & 10, we paid cash for them, but it was before we had a house (and had more money) and we would like to start a savings account for when we have to replace them, what is a resonable amount to save per month to replace vehicles?

The roof on our barns needs to be replaced and the cost is about $5000 this can wait until next year.

Should I lower my RRSP contributions and my higher mortgage payments in order to complete the repairs? I don't feel this is an "emergency" situation to use our emergancy fund (I was off work 22 wks last year with an injury and we depleted our emergency account and we have just started replenshing it)

How much should I be contributing per month for a house hold repair account?

Any suggestions on how to maximize the extra money we have no before we have children and more bills?

How much annually should we be putting towards our retirement? (I am 25 hubby is 27)

 

I know this is a lot of questions but any input would be appreciated!

Re: Help me save for repairs/advice on investing

  • I have read the post a few times...

    For retirement it is generally assumed, based on longevity data, that women typically outlive men. So, you should put more towards retirement to cover this. Also, the number in terms of a percentage is usally between 10-20% of your gross (before tax) income.

    For a car, work backwards. Figure out what types of cars you want (makes models) and pay attention to fair new and used prices for them. If you assume buying a car in 5 years, then how much per month would it take to get you to that point to buy vehicle XYZ?

    Is your 2.99% a fixed rate on your mortgage?

    I'm assuming your $55k is your emergency fund. So, if this is what you feel "safe" with then leave it.

    For household repairs, you know how old your home is. What will die in the next few years and plan on that. Windows? Roof? Furnace? AC?

    Good palces to cut are in entertainment, Internet (I pay $50/month as a comparison) and cable (go without - it's a new trend!).

     

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