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Name, age: Jacob, 31
Annual income: $315,000
Debt: $493,000 on house mortgage, $110,000 on cottage mortgage
Savings: $74,000 in tax-free savings account, $213,000 in registered retirement savings plan
What he does: Aviation professional
Where he lives: Winnipeg
Top financial concern: “Avoiding that lifestyle creep and paying myself first.”
Winnipeg resident Jacob, 31, earned more than $315,000 last year in the aviation industry. But he works hard for that money.
With a base salary of $215,000, he takes on as much overtime as he can, often working up to 12-hour shifts, eight days in a row.
“We are very short-staffed,” Jacob says of his workplace.
To relax, he bought a cottage. His getaway spot is close enough that he can go there even when he only has one day off – which is often, especially in the summer.
His main residence is a four-bedroom home in a quiet Winnipeg neighbourhood that he shares with his wife and dog. Their plan is to have a family, so they bought a big house they can stay in for the long-term.
Jacob’s wife quit her job last year. “We can afford it,” he says, noting that they hope to have their first child in the next year. “We’re both ready and we’ve thought a lot about it.”
Jacob’s income carries the couple’s expenses, which include numerous extras he says he will likely cut when they have kids.
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“I feel like I spend a lot of money unnecessarily,” says Jacob. “Going out, concerts and that sort of thing can easily be axed from our budget.
He adds, “As soon as we have a family, I will definitely start contributing to an RESP,” referring to a Registered Education Savings Plan. He also has a pension through his job, which will pay him 33 per cent of the average of his five best income years.
As it is now, Jacob puts $2,000 toward savings each month, between his TFSA and RRSP, which are both invested in mutual funds with the help of a financial adviser.
“My goal is to max out my TFSA in the next year or two, then start contributing to an additional investment account,” said Jacob, whose wife has roughly $250,000 in an investment account that was gifted to her by family.
“I also plan on increasing my payments on both mortgages to help pay them off faster.”
His typical monthly expenses:
Investment and savings: $2,000
$500 to TFSA. “I also do a lump sum deposit once or twice a year after a long stretch of work, or tax refund.”
$1,500 to RRSP.
Servicing debt: $2,945
$2,270 to mortgage. “House is worth approximately $730,000.”
$675 to cottage mortgage. “Cottage worth about $140,000.”
Household and transportation: $6,620
$268 to property insurance. “For both properties.”
$635 to property tax for house
$92 to property tax for cottage
$260 to electricity and gas for house
$167 to water for house
$20 to electricity for cottage
$3,333 to backyard upgrade. “Prior to the winter, we spent $40,000.”
$300 to gasoline. “Two cars.”
$313 to car insurance
$817 to car payment. “Roughly $26,000 owing. Wife’s car is paid for.”
$67 to car maintenance.
$50 on Uber
$150 for cellphones
$88 for home internet
$60 for cottage internet
Food and drink: $1,225
$400 at grocery store
$300 at Costco.
$75 at coffee shops
$300 at restaurants. “About once a week we’ll go out for dinner/order takeout.”
$150 on alcohol. “More in the summer.”
Miscellaneous: $14,501
$6,167 to federal income tax
$3,883 to provincial income tax
$336 to Canada Pension Plan
$33 to additional CPP contributions (for high earners)
$90 to Employment Insurance
$456 to union dues
$300 on going out. “Concerts every few months, and will meet friends for drinks 2-3 times a month.”
$100 on cannabis. “Wife uses.”
$24 for Netflix
$18 for Disney Plus
$17 for Kindle Unlimited
$11 for Amazon Prime
$15 for Apple Care
$19 for Apple Music
$14 for iCloud Plus
$13 for Sirius XM
$34 for Xbox Game Pass
$275 on clothing. “I buy a lot of my clothes from Old Navy or Costco in bulk.”
$120 on Pilates. “Wife goes regularly.”
$70 on pet food
$63 on vet bills
$167 on golf
$250 on hobby. “Trading card collection.”
$47 on haircuts
$100 on cosmetics
$115 on personal services. “My wife gets her nails done, massages, acupuncture.”
$33 on dentist. “90 per cent coverage through my insurance.”
$8 on glasses. “One pair every two years, mostly covered by benefits.”
$40 on prescription
$1,042 on vacations.
$63 on donations. “We try to support local organizations.”
$83 on gifts.
$250 on life insurance. “Includes $500,000 of coverage.”
$233 on sports tickets
$12 on Visa annual fee
Some details may be changed to protect the privacy of the person profiled. We want to thank them for sharing their story.
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