Hello /r/pf,
TL;DR I feel like I'm currently at the point where I can't reduce my saving ratio which is 35%ish. Can I safely acquire another transaction 400-500/mo or am I taking to much away from my saving potential. Budget follows.
Some financial background. We're a single income(CAN 100k-110k /yr) family of four. I do not want to retire early, i just enjoy having a minimal amount of debt and living day-to-day. We live in a rural town with no amenities within 200km.
Here's a breakdown of our monthly budget: ---All amounts include taxes/insurance
- Mortgage ($119,000 @ 3.9%) - $860.00/mo
- Vehicle (-$51,000 @ 0.0% 4.5yrs left)- $900.00/mo
- Electricity - $250.00/mo
- Phone/Cell/Internet - $310.00/mo
- Savings Acc. - $600.00/mo
- Gas - $120.00/mo
- Groceries - $250.00/mo
- Dogs x2 - $100.00/mo
- Retirement Pension plan & CPP - $860.00 /mo
- Kids(3y/4y) are taken care of with my spouses baby bonus.
- Wife and I spend no money on 'fun' stuff. If it isn't on our budget plan, we don't buy it.
Current monthly spending ~$4300.00.
Net take home income is ~$6300.00, after retirement cont.
Current Savings:
-
Retirement contribution $860 /month
-
House equity $34,000
-
Emergency fund at $11,000
-
2k in cheqings
With the $2000.00 excess every month I am either doing renovations, upgrading or paying down the mortgage. My family is living in this house, doing the same thing every day while I work. My spouse recently gave me an ultimatum that will hit our saving potential, but it kind of has to be done. Essentially, I need to purchase an outdoor toy for a family of four, but the price is out of my cash range, so I need to finance.
Is there a rule of thumb for when financing is okay (if ever)? What is a decent interest rate ? Can I safely acquire another transaction 400-500/mo or am I taking to much away from my saving potential.
Any advice on anything here would be appreciated. Thanks.
Submitted April 24, 2017 at 11:59PM by Awsm_POE http://ift.tt/2pZfCpQ
