Abundance Update: income, expenses, and goal progress
I figured today I would give you a really transparent look at my financial position. I want to start documenting my abundant lifestyle and goals more publicly so that I can prove that anyone can manifest everything and anything they want no matter the circumstance.
This is just a snap shot of my financial life right now. It doesn’t fully represent how I got to this place in my life. However, all of my wealth success and misfortune has been a direct result of me and my decisions. I really believe that we make our own destiny in life and that all the things that happen to us, both good and bad, are caused by our thoughts and feelings about the world. If you don’t like your financial station it’s because of the choices you have made up to this point in your life. The sooner you accept responsibility for your life the sooner you can make it abundant.
Enough of the pep-talk stuff. Let’s take a look at the numbers:
Some manifesting gurus believe that having a budget automatically implies that you have a lack mentality. This kind of makes sense; if you have to budget your money you obviously don’t have enough of it to just do and spend whatever you want. Thus you aren’t as abundant as you want to be. And I agree partially with this thought. However, I am also a Finance student and I love me a good budget. Having a budget makes me feel in control of my money. It makes me feel powerful and abundant. I love looking at my budget every month and playing around with my savings amounts and seeing where I can save money.
After creating a budget most finance bloggers recommend tracking your spending so that you don’t go over your monthly budget in any given category. And this is the advice that I believe causes the biggest scarcity mindset. Like I mentioned in my Manifesting Disneyland post I am pretty terrible at tracking things. And tracking everything I spend down to the penny make me feel constrained and…well…like I’m on a budget.
Seeing the amount I am “allowed” to spend decrease everyday just makes me feel depressed. Tracking my spending makes me feel so un-abundant and poor. This is the kind of feelings you want to stay away from when you are on a path to manifesting abundance in your financial life. So I just don’t do it. I do look at my bank accounts every day online and always have a rough idea about how much I have spent so far each month. But I could not tell you how much money I spent on restaurants this month.
I think it all just comes down to what works best for you. If you like tracking your spending and it makes you feel good. Go for it! If not, don’t do it. I do, however, think a monthly budget is mandatory. To give you an idea of where my money goes each month here is my budget:
*If you want a copy of my budget that you can edit and enter in your own info you can download a copy -> HERE
A couple of things to note with my budget:
- We have no debt. I realize that this is not the norm. We do have a mortgage which is technically debt but other than that we don’t own anything to anyone. We don’t have a car loan, we don’t have credit card debt, we just don’t have debt. Debt repayment should ad up to about 15% of your take home pay but since we don’t have any we just put it into savings.
- Our fixed expenses are low. This is why I love having a budget so much, you can see what you are spending your money on and then decide if it is worth the cost. You might notice that we don’t have a cable bill (only Netflix and internet). We just don’t value cable enough to pay $50+ a month for it. We bought a house that was well below our max affordability so that we would have lower housing costs. And I shop around for the best deals on everything so I know that I’m getting the best deal. This allows us to keep our fixed expenses low so that we can save more.
- My spending is $0. This isn’t super accurate. I do spend money. But the stuff I spend money on pretty much all falls into our entertainment category. I like to go out to eat and see a movie, go go-carting or hiking or swimming. I don’t really spend much money on “personal” things. Instead, I like to get out there and do stuff. So my spending is encapsulated in the food and entertainment lines.
- We save almost 50% of our income. I’ll talk more about why this is in the “Manifestation/Goal Progress” section of this post (don’t want to spoil the good part).
- We have $0 allotted for emergency savings. I highly recommend everyone has an emergency savings so that when crap happened you have some cash to pay for it. We have built our emergency savings up to a comfortable amount for us so we don’t put any money into that category anymore. If we ever need to deplete those savings we will add that line back into our budget.
Currently I only have a few important goals but they are big ones for me. The way my goals work is all part of a 12 year plan with each goal being a piece of the puzzle and a stepping stone to where I eventually want to end up. Each goal that I complete helps me reach my overall, big picture goal.
Beachfront House With A Pool
Goal priority number one is finding our forever home. We live in a beautiful townhouse right now and I love it. But eventually we would like to have a yard, a pool, and an actual freehold house. So that’s what we are looking for right now. We want a 1,100+ square foot house with two bedroom and 2 bathrooms, preferably a rancher with ocean views, a pool, and a hot tub.
Something like this:
Oh, and it has to cost $330,000 or less. The price is important because for my overall plan to work properly we have to pay it off in 12 years or less. And we can only afford to pay off the house in 12 years at that price point (making our monthly mortgage payment around $2,100 per month with a $70,000 down payment). This extra $1,000 per month will come from the budget line items “Savings – Other”, “Savings – School” (Evan will be done school in December 2017), and “Savings – Bitcoin”.
The market right now where we live is a little crazy so this might be a lot to ask. But I am confident that within two years we will be able to get exactly what we are looking for. And if we can’t find the perfect home we will have the resources to buy some land and build our dream house.
$1,000,000+ Net Worth
One of my big goals is to have a net worth of over one million dollars.
Your net worth is the money you would have if you sold everything and paid off all your debt. The formula is Assets – Liabilities = Net Worth. It’s just a good tool to see, overall, how abundant you are. A net worth statement is also a really easy way for me to show you where I am at with my current financial situation.
This is my net worth statement at the date this article was published:
- House – $350,000
- Truck – $7,500
- RRSP – $20,000
- TFSA – $3,000
- Cash – $70,000
- Bitcoin – $4,700
- Mortgage – $264,000
Net Worth = $191,200
The point to having a high net worth for me is to be able to use my assets to create passive income. I earn interest on my savings, capital gains on my investments, and rental income (eventually) from my property. And with a net worth of just under $1 million I will be able to earn about $33,000 gross per year in passive income if we maintain a 6.5% net return on investment with 2.2% inflation.
And with our current savings plan we are on track to complete this plan:
*Note that not all of our savings are included on our budget above. Evan and I both have company sponsored retirement plans that help our savings get to that $29,500 per year quoted above.
This $33,000 per year is the amount we need in order to complete my next big goal…
Retire By 35
I say retire lightly. I actually really like my job but I don’t want to be working full time forever. I like having some place to be a few days per week. Plus, I love my co-workers and life just wouldn’t be the same without them. Furthermore, if I keep my job I keep my safety net as well as my benefits package and those are two things I need to feel safe and happy (at least for now). So when I say retired by 35 I really mean I would be working around 15 hours a week and Evan could retire fully.
I want to have enough time in life to travel, relax, and just enjoy this world. And that’s what retiring by 35 means for Evan and I. Here is a look at what our spending will look like in 12 years time (note this is net income and the “Income – Other” line includes rental income as well as business income):
As you can see our expenses are in the negative $2,650 per month. That’s where the $33,000 in passive income comes in! $2,650 per month is $31,800 per year. Factor in a bit of tax we are at a $33,000 per year shortfall. See, it’s all coming together now 🙂
A Prada Wallet
And the last, but not least, item on my wish list is a Prada wallet. This is not part of my big picture goals. This is just a fun one. I really want a Prada wallet. I think they are beautiful and classy. And how could you not feel abundant AF pulling your credit card out of one of these bad boys:
They cost about $1,000 new. That’s a lot more than I usually spend on a wallet. I’m pretty sure my current wallet was like $5 from Value Village. But that’s why we manifest right? To up-level our life and be able to have anything and everything we want. This will be my next up-level. So if anyone wants to buy it for me that would be great…
That’s all folks!
That is my 12 year plan and my current financial situation. This was a pretty vulnerable post for me, I don’t often share stuff like this so publicly. But it also feels exciting. I think I will do Abundance Updates maybe twice a year so to keep you up to date on my progress.
But anyway, I hope you feel inspired to dream big and go after what you want in life after reading this. I feel pretty excited about my plan and that I get to share it with you guys. Everything seems to happen faster when you declare your goals out loud to the world.
So what are your big goals and plans for your life? Have you put a plan in place to get where you want to be? Let me know in the comments!