Monday, April 19, 2010

Mo Money.

Now that the vacation is all paid for, and the debt is gone, and the emergency fund is stocked, I'm left with the question we debt free girls long to ask ourselves: what will we do with our extra money?

I'm alotting my income to the following areas:
1.) Fun
2.) Retirement
3.) Mortgage
4.) Taxes
5.) TFSA

I'm anticipating to contribute $50 to my retirement account, and $100 per month to the remaining accounts, with the exception of "Fun", which will take the remainder.

The "Retirement" will be in an RRSP, with the rest of the accounts in various TFSA's.  The account labelled "TFSA" will be invested in mutual funds, so I'm anticipating a somewhat higher rate of return than I could find with a conventional account.

Assuming the monthly allocations, an income of roughly $2900 per month, and the $50 to "Retirement", the monthly budge should be {after subtracting living costs of roughly $1599 - mortgage, insurance, weekly spending etc}:

1.) $751

The fun account will be for trips, extra savings and generally things I want.

I question the amount in the "Fun" account. Is $751 too much?  Should I be allocating it elsewhere? 

The $200 for Taxes, and $200 for Mortgage goes for the quarterly payments, and yearly lump sum payment, respectively.  I could bump the Mortgage $$ up, but I think that my priority at this time should be more "Fun" then paying off the house in a rush {mortgage is only $100k on a place worth almost $300k - I had an inheritance, savings from modelling gigs held in trust until it was given to me, and a parental "loan"}.

Help!!  What do you think?


*Canadian Girl

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