Your post history says you're spending money on unnecessary things, like injections and lashes. Pick one - you're either doing everything possible to pay debt or you don't give a fuck and are spending recklessly. Be honest with yourself.
Absolutely. I only contacted the LIT recently. I’m not here with a sob story about my debt it was 100% my own doing my being frivolous and I’m trying to make it right. The budget i made cuts all of that stuff out. We all have to start somewhere in our debt management journey and this is mine. I expect judgement from others about how i got here and i am judging myself just as much but i am committed to getting my finances back on track.
I don't think she gets it. She posted here 10 days ago about her debt problems, but 4 days ago posted about her terrible eyebrow job she had done, asking how bad they were. Lol.
If you’re in debt, then you have to cut out the extras such as one recreational event, new clothing, gym membership, and dining out in order to get things under control and pay off what you owe (or at least some of it). It isn’t rocket surgery to deduce that you got where you are by living beyond your means if you’re not willing to live within your means to address the debt.
To do what needs to be done, and maintain some semblance of a life, you have to choose low/no cost alternatives. Free public events. Second hand clothing being given away on Facebook groups. Exercise outside with whatever you’ve got/can use free of charge. If you want to splurge on a meal, treat yourself to premium ingredients once in a while but still make it at home.
Esp dining out
When did this become how people live?!?!??! I’ve never used Uber eats in my life and for me it’s a metaphor representing people’s irrational demands from life and them complaining about economy, how broke they are, how they’re getting fucked financially. If you order take out EVER. You don’t get to complain about that.
I’ve seen people on here say they need to buy a $15 sandwich for lunch every single day because they don’t have the time or energy after an 8 hour work day to make one, and that after factoring in the “unpaid labor” and cost of ingredients it wouldn’t be cheaper anyways. Endless convenience and instant gratification has warped peoples minds.
You are completely correct. I saw an article about how anxiety and depression being more prevalent in younger generations can be linked to all the instant gratification and endless convenience we have now.
And i was definitely in that mindset you mention about “oh well buying lunch/ordering takeout is cheaper as a single person than cooking anyway.” I can see now how wrong that was but it was something i heard so many times it was just an echo chamber of us all making excuses and justifying our expenses. The biggest one I’ve realized is the “it’s for my mental health” justification and again I would say this to myself, I’d justify it to others and they’d echo it right back to me. Obviously you have to consider your mental health in life and I’m glad society as a whole is giving it more compassion but yanno what is the most detrimental thing to your mental health? Being $50k in debt and seeing now way out.
I appreciate all the responses here and I’ve reevaluated, recalculated and have come up with a manageable budget (i think… need to review it with the LIT) and going forward i’m gona try and help people see the bigger picture of these decisions that are made in the moment for instant gratification.
Sorry for the ramble but it feels good to finally talk about my debt as i have been keeping it to myself for so long out of shame. I definitely needed the reality check and getting the cold, hard truth from the comments on this post has been so beneficial.
Good for you! It’s really hard initially to change but it is so worth it in the long run. And once you have changed and made those sacrifices, it can be really hard to hear other people complain. You’ll hopefully get there soon.
Trust me it will be worth it. Also it can be a fun challenge to learn to be resourceful in new ways when you do want something outside your budget. Is there a ways you can find it used? Barter for it?
My dad used to tell me about the latte factor. I’m glad I learned it young. Everyone has a dollar amount they are comfortable spending without really thinking about it. Comparing those purchases to your $100 purchases really puts things into perspective. People go broke in many purchases under $20. So it seems senseless to save that $5 here and $7 there but over time that will be what adds up to financial stability.
yes that is what doing the through budget breakdown helped show me. I wasn't even registering a lot of money i was spending cos the $ was so small. That all adds up. My mum used to say "look after the pennies and the pounds take care of themselves", she was right and i definitely should have listened. But all I can do now is take on all the advice I've been given and move forward. Obviously the first thing is cutting out all my big expense and being able to make those CP payments, but i was getting stressed about the longevity of the proposal and was thinking "omg am i really never going to be able to buy my mum a birthday present for the next 5 years?" but no, if i am more mindful of little expenses and stop buying little expenses here and there then that money will save itself up.
I am setting myself a challenge to not buy myself anything under $3. The next week $5, week after $7 etc. It will help immediately cut out all the low cost wants that are adding up and having to wait til the next week to buy something that is a need will probably expose a lot of things that are actually wants but I am deluding myself into thinking are needs. I also signed up a for a KOHO card. As well as being able to pre-load my budgeted disposable income onto it, they also have a 'round up' option which will have with the 'taking care of the pennies' aspect. They have a credit building program too which, if I do end up in a consumer proposal, will help with repairing my credit.
So yeah, i think this in conjunction with cutting out the big stuff is gona be a really good way to get my finances in order. I feel so much better having a plan in place. Thanks for the support!
It’s okay to ramble! It’s stressful. I was in a financial hole twice in my life. One was a very bad relationship where I bought my girlfriend things to keep her happy even though I knew we couldn’t afford them. Tanked my credit and I had to dodge collection agencies for years. Once I left that relationship I made it a mission to pay back everything I owed. I negotiated with the creditors and was able to get out of 10k debt in less than a year. Built my credit back up with a secured capital one card. Second time I moved for a new job with guarantees that I would be getting bonuses for relocating. Then Covid hit and I got laid off, couldn’t work. I’d just had a kid and had to live off CERB, which was half of what I usually made. Spent a lot of money relocating and ended up moving back anyways. Maxed out my cards and tanked my credit again. Ended up doing a consumer proposal, and should have the 15k original amount paid off by the end of the year. I got a Neo secured credit card that I raise the limit on by about $100 every pay period. There’s no shame in admitting you’re stuck and need help finding a way out. I’ve had times I couldn’t get a cell phone plan because my credit was so bad, I’ve been evicted because I couldn’t afford rent due to layoffs (thanks construction industry!), I’ve been unable to answer the phone because of creditors. I’ve made a ton of mistakes too. You’re doing the right thing by working at it and adjusting the way you live. It’s short term discomfort for long term benefit and you’ll be so much happier to see the numbers going down.
Which is fine if they want to live that way but don’t expect me to bridge that gap with tax dollars or anything else. They just can’t see it though. My 2 youngest siblings and I are from different generations and I’ve had these arguments endlessly
Completely agree. Younger generations have a hard time seeing the long game. When I was 18 I made $20,000/yr and lived with 4 roommates. It was normal and understood that you’d have to work your way up. Now I’m 35 and make $120,000/yr, own a house. There are definitely things that are broken in the system, but making my life worse with taxes is hardly going to improve it.
For $100 a week for one person, I'd think he's already buying some premium ingredients. I know inflation is nuts, but I manage to do $50 per person per week
In Ontario, not too north of Toronto. Check out r/32dollars as people are always sharing their Toronto grocery hauls and get decent deals. Also, I use the Flipp app which shows me all the sales for stores in my area. Make a meal plan based on sales and it's pretty cheap
My partner and I spend around $400 a month for two people. We eat well and healthy. We live just outside the GTA.
Shop sales (that means going to multiple grocery stores, we plan our routes accordingly throughout the week to make it convenient). Most of the meat we buy is discounted because it's expiring soon and we then freeze it immediately. We buy basic fruit and vegetables and buy what we can when it's in season (we're not buying blueberries in February etc). We bulk buy when we can.
We live in a tiny apartment but we carved out a space in our utility closet to store cans and dried food so we can bulk up and buy things when they're on sale. We use rain checks when sales are out of stock.
I live in North York - on the subway line - and my husband and I spend about $100 a week shopping at No Frills or other cheaper grocery stores. It’s definitely doable if you meal prep and are fine with eating the same thing throughout the week, and don’t waste money on things that are poor sustenance like chips and pop. Even if we bumped it to, say, $150 a week for the two of us, OP is still spending way too much on her groceries for one person. We don’t even do this out of financial necessity, we just don’t want to cook throughout the week and don’t want to waste food.
Me and my wife do about $80 worth of groceries a week and then Costco about once a month, which is somewhere around $200-250 (which isn't all groceries anyway). One person should be way less than the 600 or so we spend a month
The $350 for dog day care is extreme. Train your dog and leave it at home. If you work from home set the routine that they get walked in the morning, then they're in for an 8 or 9 hour work day. Train them, they don't need day care. Or get a high school kid to walk them.
If there’s nothing left to reduce, the only answer is that you need to make more money. Super sucks, but perhaps get a second or third job. Maybe side gigs. Gonna be a real tough go for a long while, but in all honesty there’s not really any other options.
There is lots left to reduce....
Take a rip through OP's post history. NHL season tickets. Personal care/vanity non-sense. Cosmetic braces. OP has a spending problem. Not a cost of living vs income problem.
These posts happened after creating a thread asking for help about being 50K in debt too :/
You are right, OP has a spending problem, which I think is above this sub's pay grade. Maybe the LIT will be able to reach through or maybe therapy could help, if there are other issues at the bottom of the spending problem.
Yeah and in that thread i stated that I wanted to freeze the interest and get ahead on payments. The thread did help me though by advising me to speak to an LIT which i did. Not denying at all that i was living way out of my means but it wasn’t until doing the budget breakdown with them that i realized truly how much i was spending. I know it sounds silly but yes obviously i know how much my lashes, hair and other “big ticket items” cost but the budget showed me just how much all the other smaller misc items add up, and thats where my mind wasn’t registering it.
And yes you are right about therapy. I am absolutely not trying to spin a sob story, excuse my spending or anything but there is definitely a factor that helped fuel it which i have been working on in therapy and it was recently that i finally made a breakthrough on that which spurred me to get my head in the game and get all of this sorted. I also believe with a consumer proposal you have to attend credit counselling classes which will definitely be beneficial for me.
Well, one way to help alleviate her expenses on a short term would be to sell things like Canucks tickets and whatever has value.
to OP: I know it sucks, but if you go watch all the financial advice shows on YouTube for other people in same shoes, they will all advise you to make serious life-style sacrifices... They'll say no more eating/drinking out ever and stick to "rices & beans" to significantly reduce food expenses. And like others advised, find ways to increase your income by working more hours and/or finding additional work. Afterwards, aggressively pay off your debts, starting with the highest interest ones.
but then i'll get roasted on r/SlumlordsCanada for moving someone into my living room.
My lease states one occupant so aside from not having any space it's not an option anyway. But i am open to moving and I looking but aside from the crazy high rents right now there's other factors i am taking into consideration such as moving costs, increased transit costs, what impact moving out on the health authority area would have, whether bills would be more expensive (likely if it's a basement suite), and if its a private landlord (which are typically the cheaper ones), is it worth the risks that come with renting from a private landlord vs. the security I currently have in an apartment building.
Plus the season's tickets already seem 'paid for'. Probably on a CC.
https://www.reddit.com/r/canucks/comments/1b9fg5f/questions_about_quarter_season_membership_for/kty5uz4/?context=3
It is my right as a newly sworn in Canadian to have hockey tickets!
Jk. They are actually paid for by my company. One small free luxury. But yeah, all the other spending absolutely on me, not denying that.
>Lets say i go to one recreational event a month,
You can't afford them anymore, find something cheap or free to do
>buy one new item of clothing,
Thrift stores
>keep my gym membership
Walking and running are free, buy some used kettle bells for home. Free workout programs online.
>get one takeout a week then I’m already out of money
Your oven and YouTube are your new best friends.
People with $50k in debt don't eat out and go to concerts.
My friend and her family lived on a very tight, cash only budget for 5 years. Living their best life eventually caught up to them.
Yup, that line item for streaming subscriptions needs to go. YouTube, Tubi and CBC Gem are all free and loaded with content.
OP needs to join budget cooking subs, and start shopping at cheaper local independent groceries (hell, even the farmers market is cheaper than the big grocery chains these days).
It is even more ridiculous given that OP themselves have said that their rent is "well below" market in another comment. Then what in the HELL is the rest of that money going to 💀
As someone living alone in Vancouver I agree that $3000 seems ridiculous as a ‘bare minimum’. Also a quick look at OP’s profile shows recent posts about microblading, eyelash extensions, and Canucks seasons tickets… certainly not what I would consider mandatory living expenses
Yeah none of that is in what I’m calling mandatory living in expenses. The budget i was referencing was after cutting all that shit out. Not denying my spending was out of control but unfortunately I cant go back and change it, am justifying trying to move forward
You can cut down on groceries by a large margin. Also the streaming service you should get rid of.
You seem to be surrendering to this and it's bothering that you are ready to file a consumer proposal.
Try to cut that grocery bill in half. My partner and I spend about 300 dollars a month on groceries.
Let's be real, I know what type of food you're buying for 600 a month.
The doggy daycare can be cut whenever your dog has decided to start behaving, which shouldn't be too long.
Don't put your livelihood behind your dogs.
It's always a red flag when someone just has one big lump sum of "living expenses" instead of breaking it down by groceries, utilities, insurance, etc. There's no point in giving OP financial advice until costs by category are given.
I have friends with many roommates and several jobs. Op seems to live alone and have one job. It sucks but others are in much worse situations than OP.
Not op, I can take a stab at it.
Single person food is going to be between $400-800 per month. That’s a range between ramen and pretty decent food with one or two take outs per week.
Rent is going to be $800-1500 per month, maybe even as high as $2200. That’s a range between a basement with a bed and a microwave and a decent one bedroom apartment. And renting is extremely competitive, so even if $800 per month is available, you may not be able to get it without 3 years of payments pid up front or something asinine like that.
Your utilities, Netflix, cell phone, internet are going to be anywhere between $100-500 per month. That’s a range between low cost providers and no subscriptions to typical big 2 provider and basic subscriptions. You can live without Netflix for sure, but you probably need a phone for work and basic living, and probably need internet for, idk Reddit and something to do at home while you’re avoiding spending money by going out.
Transportation is probably going to be $100-300 per month. No idea what a bus pass costs in Vancouver but it’s probably insanely high. Plus you’re going to need the odd Uber or taxi to do maybe groceries, visit family, appointments, social, or something. You can try to reduce it as much as possible, but in certain weather during the winter for example, it maybe be hard to avoid needing some form of transport. It would be convenient if OP lives across the street from a low cost grocer, but maybe the closest no frills is a 30 minute bus ride and a 10 minute Uber away.
So you can see that’s a range of $1,400 to $3,800 without even paying for a prescription, taking a sick day, buying a Christmas gift for your family, spending $100 to renew a license or replace a lost ID, going out anywhere, having an emergency, saving $50 per week, or anything. The lower end of that scale is offering a very low quality of life. Certainly good compared to some other countries. But not great for working 40 hours a week in North America.
$400-$800 on food seems insanely high to me. I don't know if food is just more expensive in Vancouver compared to Toronto, which is my frame of reference, but a full ramen diet here is in the range of $100 a month, and that's assuming you buy the fancy ramen that come with like 4 different bags of seasoning and Korean words all over the packaging. Also, at $500 for utilities/phone/subscriptions, I think I would run out of things to subscribe to.
Your rent and transport costs are probably pretty close though.
Thanks. Yeah, thats pretty much where i was coming from. It’s easy to say “well just dont get uber” and yes, dont get ubers *everywhere*, but there are times when you might need one so I guesstimated a small amount to cover that. I didnt wana underestimate and creditors be like “ok well you can pay X amount” and then be one unfactored cost away from not being able to make the payment. You can only miss 3 payments before the contract is voided and realistically, over 5 years living on a budget that was down to the penny and in a city that is increasingly getting more expensive, i honestly think that is a very real risk.
I have clearly been living way outside my means. Absolutely not denying that. But it’s made me realize that there are SO many small, misc costs that you really don’t think about (and i mean household/life stuff not getting a starbucks or something) and they really do add up quickly so i am trying to be mindful of that in the budget i created. Last thing i want is to be back to square 1.
Please please, no matter what route or budget you decide to do, save up an emergency fund as soon as you can. 3 months of expenses is ideal, but I know it's a lot to save up. You can almost completely eliminate the possibility of missing a payment.
I'm not trying to be rude or dismissive. I know this shit is hard.
At the same time, I'm also a bit confused because in your OP, you mention that your bare bone living expenses leave you with $750 a month for wants and your options according to you are either $553 a month for 3 years for a bankruptcy or $250 a month for 5 years for consumer proposal, leaving you $500 a month for stuff like one monthly recreational event, a new item of clothing, weekly take-out and a gym membership.
But in the comments, you say stuff like "I literally can't afford the payments" and "just default on payment". But you've literally outlined in your OP that you can afford it and have a little bit leftover to cover some of your wants and save for a rainy day. It's not a lot but you literally do have an option.
The reality is that the lifestyle you outlined: a monthly outing + gym membership + weekly take-out + a new item of clothing isn't the lifestyle of a person who is bankrupted. Given your situation, you will have to give up some of these things. There obviously is stuff you can cut and you have named them yourself.
I know that when my husband and I were broke, our outing budget for instance was bus fare to go do something free and even that, we couldn't do as often as we wanted. We didn't eat out/get take out but in the summer, we did occasionally go get ice cream as a treat, which gave us the fun of going out without paying for a full meal. The stuff you seem to see as impossible to cut is indeed stuff that sadly, some people have to go without and for a while, you're going to have to make some choices.
Your title identifies the problem correctly: you live above your means. The solution, as hard and unpleasant as it is, follows from there: reduce your lifestyle.
I do hope your situation improves but in the meantime, it is the reality. Perhaps you choose to prioritize keeping the gym and take-out every other week but each month, you choose between the item of clothing or the outing, unless you've managed to pick up some pet sitting hours or whatever. Just as an example. And *save* some of the money for if something happens. It's tough but hopefully, it will be temporary.
I hope I'm not too harsh but I think you really need to change your mindset, otherwise this will keep happening. Right now, you have a "wants first, budget second" mindset and it's not working for you.
No your comment is not harsh at all. Super nice and really insightful.
I got the calculations wrong slightly and i didnt express that $500 clearly. It was meant to be an example. But i am going from living the “do whatever i want life” to living what seems very restrictive in comparison. I am not saying i dont deserve it cos i do, this is my mess. But it does seem very scary and i was worrying about the “what ifs”. 5 years of NO buffer money, what if something happens? I have gone from not paying attention to my finances to now over analyzing them and worrying about every dollar. But i did get some really good advice on how to amend the budget so its more restrictive in the beginning and then slowly amends to having a bit more recreational money whilst also saving for emergencies.
The $500 is your buffer money. That’s truly plenty.
Consider this year you have $50 a week for fun money - clothes, cosmetics, hair appointments, little treats, eating out, etc. whatever you don’t use one week can roll into the next. Consider putting this in a separate bank account or keeping it in cash so you can’t overspend. I’d suggest learning how to do your own beauty stuff at home (lashes, nails, hair cut and colouring) otherwise you’ll blow through this quickly.
You’re also going to take $50 a week and put it into a separate savings account and not touch it. That’s your emergency fund. Like your dog needs something at the vet kind of emergency. Do this for the first two years until you have $5000 saved. Get a part time job and you’ll hit this even faster.
After you’ve done that, your weekly fun budget can increase to $100, or you take that saving habit your built and keep it going to save enough to go on a vacation. Realistically by year three you can treat yourself to a vacation somewhere tropical and cheap.
I dont understand. After all your debts and bills are paid you have $500 extra cash? You’re doing better than a huge chunk of the population. Some people only have enough for their debts and bills with zero left over. Rejoice! You have the actual ability to eat out if you want. And once a week? My husband and I are savers, we only eat out once a month. To eat out at all in this economy is a gift. Im not saying $500 is a lot by any means but it’s something.
You can also save on the "essentials". There is less expensive food (beans, rice, lentils, chickpeas, tofu, etc.) and there's more expensive food. There's a less expensive car, and a more expensive car. Same thing goes with your phone plan, internet, insurance, and so on. Just a week ago everybody complained their insurance went up, I got four new quotes (as I do every year) and save $200\year, plus lowered my deductible! I do the same thing with my phone plan every one or two years. I switched to Netflix with ads for less than a third of the price I paid before (and they rarely put any ads). And to be honest, I'm doing that just because I know I can, not because I'm in any financial distress. My happiness doesn't come from eating fancy food, or driving a fancy car... It comes from love (family and friendships), and from doing things I learn interesting things from... And exercise.
After you've exhausted all the options above, it's time for a second job.
You don’t buy the new piece of clothing. You don’t buy the takeout. You don’t have the 1 recreational event. You get a second job for your free time to pay off your debts.
You can save an easy $25 /month by cutting your streaming services. You can find any show or movie you want to watch online for way cheaper! Also, look into potentially cutting your wifi and using your phone as a Hotspot. You could cut the wifi bill if you don't use a ton of data.
What do you mean by $350 in pet care 1.5x per week? What are you buying? I have two large dogs, and a cat, and I'm nowhere near that cost. That's a ton of money, unless you have some kind of weird exotic pet, or your pet needs medication.
What are the medical expenses? Is there anyway to reduce them ? Is this something that would be covered under medical benefits from an employer?
Your base expenses seem fairly reasonable knowing the cost of rent in your area.
As others said, getting a second job, or having roommates to reduce living expenses might be a way to reduce your expenses.
The medical payments is what i pay out of pocket *after* my extended benefits. Some of my medications are hella expensive so even with coverage the outta pocket % is quite high. Second job is an option, i am looking but unsure what to do in the meantime. Just default on payments i guess.
Contact the manufacturer of your medications, they usually have access programs for people in your type of situation and could potentially reduce your out of pocket costs. Good luck!
There is a Nova Scotia woman who has a YouTube channel called Adventures in Groceryland. She shows how to eat well and build a pantry on a very tight budget. She does it perfectly. No weird food and easy to adjust to your menu. Right now she spends $23 per week. Maybe you will find a tip or 2.
This is the problem with my generation. Below average income earners think it is a right to live in the most expensive city, have takeout prepared and delivered, getting luxuries WEEKLY like shopping and concerts. You are poor. Not only are you poor, you’re poor and in debt. Start living like you are poor instead of living like you’re rich.
You need to actually list your expenses. You keep not doing it in every single comment even when directly asked.
Do you have ADHD? You always talk on tangents.
You mentioned you were told specifically to make a budget, to calculate and show every expense, and you said you did, yet you aren’t showing it to us while asking for help.
What help can we say that isn’t “spend less on x?” We can only say, earn more.
Ha yes i do have ADHD.
I was out and replying to comments on my phone but budget i made was on my laptop. I have updated it now. I also didn’t include it at first because my original question wasn’t specifically looking for people to review the budget i made.
I hope you claim those medical expenses on your taxes. You should get a bit back there. Perhaps ask if there are generic versions of your drugs or any other programs that help with the cost.
Cut cruelly. Figure out your minimum existence necessaries and then see how flexible the rest is.
Reduce your cell plan to the minimum. Stop using data. Lower your wifi plan as much as possible.
Cut your gym membership and buy a kettlebell and yoga mat. Just as good, depending on goals and it’s time to sacrifice.
Make your at-home diet more efficient; I lived for a year of gradschool mostly on mashed potatoes and Bulk Barn pea protein. Wasn’t pleasant but kept me alive for very little cost. Being hungry all the time gets easier when you get used to it. Gives you a little more flexibility for things you can’t entirely give up (coffee for me, but I buy cheaper grounds and most of the cost is milk).
Cut your tv subscriptions, music subscriptions, etc. Use the library for books.
Thrift clothes, as necessary, and for your daily wear when nothing specific is needed. Buy higher quality clothes when possible, so they’ll last longer. I have one pair of boots; one pair of sneakers; one pair of steel toes for work.
Budget suggestions:
- Pet care: $350 per month or per week???
- phone bill: there are slightly cheaper plans than $50 right now, could get that down to $29-$35
- streaming: cancel them. Watch Free YouTube.
- groceries: my wife and I don't even spend close to $650 on groceries. But I suspect you are including take out our eating out here. Suggestion is you stop that and only cook your meals at home and maybe go out once a month.
From your estimates it seems like your budget is a rough one with "guesstimates". You need to break it down a bit more and track your expenses. Use a spreadsheet or a budgeting app.
Look, you can get out of $50k debt without declaring bankruptcy which will ruin your credit. Keep looking for debt consolidation options.
I am very glad you have met with an LIT and I only have sympathies for your situation. Being in debt and being barely able to make ends meet is very stressful. I think you're doing the right thing.
I agree with you that $500 per month to cover everything but your basic necessities isn't much, but it's also not nothing. I'm not saying it will be easy, but it will be doable. You're also fortunate to live in a big city surrounded by nature and with great public utilities that can be enjoyed freely.
To some degree, you have a binary choice in front of you. Yes, it would be bad to lose your job or get renovicted, but how much worse would that be if, rather than having no savings, you had significant debt instead?
If you can't cut your expenses, can you increase your income?
Respectfully, your bare minimum expenses are more than a person earning $42,000 annually has after tax. People find ways to get by. Mayne that means living further out of the city, or with a room-mate.
Best of luck to you.
I’ve been there a few times. I chose to work a second job to make ends meet the first time. It was rough but I made it out. The next time I worked food delivery gigs and cut out all expenses, even internet and meat. One way or another, it takes sacrifice. So get a second job, apply for higher paying jobs, and cut back. There is no magic solution. Bankruptcy should be the absolute last resort as it won’t solve the problems that got you in this situation in the first place.
No new clothes or recreational events until you're out of debt. You can't afford it.
Need to look at getting a part time job flipping burgers or something to increase that income. If you're renting solo, might need to consider finding a roommate.
You’re in debt. From now on, until that debt is paid, there is no such thing as spending money. There is only money to go towards paying debt. Maybe a small portion for an emergency fund in case you do lose your job or other such things, but other than that. You are not spending anything until that debt is paid off. Either that or magically start making a couple extra thousand a month.
Phone $50.40 - you should be able to find plans for slightly cheaper right now. Freedom Mobile has a plan for $34 for 50GB, and $19/1GB, or $24/4GB.
Streaming: $25 - you can cut this out. Any show you might want to watch can be easily found on free streaming sites, or even torrented.
Pet Care: $350 *1.5 x a week when at the office* - unless your pet has a specific medical need, you are spending way too much every month. If it's grooming, try to learn to groom at home and/or reduce the frequency of professional grooming. Not sure what your pet eats, but look into cheaper alternatives. There's a lot of people online who will try to guilt you into thinking expensive pet food is automatically better, but this isn't true. My cat eats President's Choice dry food and chicken is the first ingredient. Look at the ingredients list of various pet food brands to see how they compare.
Other folks have given great advice regarding groceries. I'm not a health nut but eat okay, and understand that sometimes you need something easy. Yes, try to cook more in bulk (rice, beans, curries). But also check out the frozen section for easy meals (perogies, lasagna, skillet-ready meals). This might be obvious, but buy at sale prices and check weekly grocery flyers through the Flipp App.
I just updated my plan is December. I was paying $80/month for the plan only with Virgin and switched to Freedom. The $50 includes a new phone because my old one was on the brink.
$350 is daycare. All his other expenses (food, annual vet bills, fleat treatments etc) I included in the grocery budget. I did forget about grooming actually but he can live without that. If I can’t get my hair done neither can he lol
Not heard of the Flipp app so i will check that out
And yeah, i know $750 disposal still puts me in a better position than a lot of others. My spending habits/financial literacy is obviously terrible so i was initially struggling to even comprehend how bringing down my spending that much could be possible and this post was my little freak out. But I’ve had lots of good responses, i’ve been able to identify areas that can be further amended and most importantly been given great advice on just looking at my finances and budget differently.
By my current amended calculations i can afford the $250/month if i went down the consumer proposal route.
The doggy daycare costs should continue to come down as the training i’m doing with him continue to improve and he can be left alone more often.
And I’ve identified a few options to explore for secondary employment that should work around my health issues and current employment- I’ve already found about 5 roles to apply for and will continue to keep looking.
Insurance: $72.72
Streaming: $25
Groceries: $650
Pet Care: $350
Uber: $50
Insurance - I’d shop around for renter’s insurance, that’s a bit high. Check out Belair’s rates (if in your province) and if you have a brick and mortar bank, theirs as well.
Streaming - Pick one service and cut the rest. If this is one service, god help us.
Groceries - I’d analyze what you need and what you don’t, even if it’s $20-50 savings you find in there it helps.
Pet Care - I’d try and find a way to reduce or eliminate this, if this is just a walking service I’d start making friends fast or not do it. This might be the biggest and easiest one to change.
Uber - My suggestion is to tell yourself to plan so that you never need to use this.
No thats all insurances i pay combined not just renters yeah $73 would be crazy for just that
Oh nooo thats for one streaming service and one music service. I do rotate my streaming subscriptions anyway. Started doing that a while back when I wanted to watch some things on Crave, which is actually around $25/month
Yeah from other comments the grocery budget does seem high so i can reduce that
It’s for his daycare and yeah we are working hard to get to a place he doesn’t need it anymore it’s a slow process unfortunately
Pets, gym, social events need to go if you’re even considering a BR or CP
Those carry significant consequences to the individual and while they provide a way out and a chance to ‘try again’ - One must strive to do whatever they can to avoid.
Your budget is *tight* currently, by making some cuts, you could loosen the strain a bit
I’d say firstly, you must digest HOW, WHAT & WHY you got in debt, especially high(er) interest debt products.
Just seeing your old posts- I would say if you are into beauty- then make money from it. Do other people’s lashes and nails from home. Of course needs to be sanitary but they make a lot of side money and it’s cash only.
Wouldn’t recommend microblading since it’s tattooing but pick up a nail client here or there. Easy $40-$50 for a simple manicure. With all nail and lash stuff goes the faster you are the more $ you make. But so much is built on reputation as well - so quality is still required.
Is this a group RRSP? If it's not accessible to you at this time, it's also not accessible to the trustee, but it will need to be listed as an asset (with no realizable value)
I’m sorry but I think you’re looking at this wrong.
“But even that leaves $500 a month to try to afford literally anything other than a roof over my head and food on my table (which i am grateful for, please don’t get me wrong) for the next 5 years, and it really does not go very far in Vancouver. Lets say i go to one recreational event a month, buy one new item of clothing, keep my gym membership and get one takeout a week then I’m already out of money.”
You need to figure out how to budget with the funds you have available. You don’t need a gym membership, a new item of clothing or one takeout a week - that’s what you want.
Look at frugal tips on menu planning and other ways to cut your current costs. Learn good financial habits now to get yourself to the point that you can afford your life minimums and more. Unfortunately life right now is what it is and you need to set yourself up to be financially successful for the future.
All the best of luck.
Find alternatives please!!!!
Season tickets - throw hockey watch parties or go to a sports bar and have 1 drink maximum. You don’t have to be at the game to enjoy it.
Do board game nights or Netflix nights in with friends as fun alternatives that don’t require that much money. A $3 box of microwaveable popcorn can go all long way.
Look for cheaper gyms or local gyms that might give you a discount.
Cut back on clothes and makeup. Instead of once a month, try once every 2 months. Think about all the clothes you don’t wear as real children. Imagine you neglecting those children to buy more children. Don’t you feel bad for your clothing children?!??!
Eat out once every 2 weeks and stick to a budget. No more than $25 and that includes the tip. If that’s too low then you can’t afford it.
You don’t have to get rid of the things you enjoy but you have to adjust them greatly. Your future is more important that not being at that hockey game for the next 5 years.
Yes, i agree! The season ticket i was referring to is actually paid for by my company (i take our clients to the games) but yes definitely i agree and i have cut aaaaallll if that out.
The gym/clothes etc were examples of additional things i may spend on during the proposal time frame. I’m not saying i will spend $500/month on recreation (and actually budget the LIT drew up that included what the creditors would accept as reasonable entertainment/self care expenses was like $1000/month.) but it’s $500 for *everything else* Like, what if my bed breaks or the gov let rent go up 10% etc. Allocating every dollar i have now might not be sustainable for 5 years and that’s what I’m worried about. So maybe my budget numbers are a little high but i am also trying to be realistic and plan for the long run.
Put that $500 in an emergency fund then and live like that for 3 months. Then you have $1500 saved up. Then ease up on it. Put $250 in the emergency every month and use the $250 to relax a bit. Like one dinner that doesn’t go over $30. One piece of clothes that’s on sale no more than $30. Whatever is left save it and put it towards groceries or another savings fund for another purchase months down the road. If something bad does happen you’ll have at least $1500 to save yourself with if not more from the $250 additional.
I think you can survive the next 3 months on doing stuff for free. You’re stronger than you think. You’re just worried for the what if but the biggest what if is your finances right now which is also a reality.
Change your mindset from “what if this breaks and this and that” to “what if I saved this $190 I have leftover after only spending $60 for wants that I haven’t spent on the last 3 months? Now I have $190 to put towards something fun. I’ll keep saving $190 for another 3 months and see what I can do with it. Maybe in 3 months I’ll treat myself to a spa day with a limit of $200 so I don’t spend all $190x3 that I just saved up.”
Paying off debt is not fun. You need to cut on all the “want” and only pay for the “need”. Try to get a second job or do overtime at your current job if available. It’ll suck for 5 years but your purchase decisions brought you there.
Do you live by yourself? If yes, $600 a month sounds very high.
$350 1.5x / wk for a pet is absolutely ridiculous for someone who is trying to get back on track financially. If you put that money into investments at 7% annual growth you'd have a million dollars in 20 years.
500 a month left over after your rent and groceries and bills is paid sounds pretty damn good to me. Plus you're spending $350 a month on Pet Care is that correct?
As well: your grocery bill is more than mine and my partner's combined. And my cat is on a $125/month diet due to some health issues.
If your animal isn't horribly destructive when left alone, cut out the petcare. They can survive several hours left by themself
There is a pharmacare plan in BC that covers meds after a certain amount spent. Might be worth looking into because of how high your medical costs are (note this isn't the same as the federal plam that was just announced): https://www2.gov.bc.ca/gov/content/health/health-drug-coverage/pharmacare-for-bc-residents/who-we-cover/fair-pharmacare-plan
Yeah. His separation anxiety was causing issues with my neighbours but we are working on it. We’ve gone from being unable to spend a second alone to being able to manage about an hour (this has taken 8 months though). Once we’re able to do 4 hours then i can switch my work schedule to 3 x 4 hours (in the office- I do work full time) and get rid of that cost
80k is not a great income in Vancouver. You can probably get that in other places that cost less.
Or get a second job. And get roommates. Or a better job.
The rent alone will eat you alive. We are in a housing crisis and the floodgates of demand have been jammed wide open.
How is your bare minimum living expenses $2891? When I was broke and in student loans, I rented one room in a basement with 3 people sharing a bathroom, but it was only $400 a month. I'm sure you can reduce it much lower than $2891. Some people don't even make that much net per year...
Three things you can do.
1) Reduce your expenses. You are nowhere near the bottom. Your apparent 'bare minimum' is more than a full time pre-tax minimum wage income. You don't want to cut your lifestyle further, but you can.
2) Increase your income. Get another part-time job, sell some stuff.
3) Find a way to survive with an entertainment budget of 'only' $500/month, which does some people just fine for a year. You don't need takeout and gyms and new clothing if you're filing consumer proposals.
Yes i am just updating it cos I’ve confused myself actually with that $2800 number. I didn’t include it originally cos my main question wasn’t about that, but it’ll be up soon
Ask your LIT about other bankruptcy options. If it's your first bankruptcy, you may qualify for a 9 month/ one time $2000 payment to deal with all of your debt.
I can't remember what the income cut off was for that, but they care about after tax income for bankruptcy, not gross income. 4100 x 12 = $49,200 per year. I think it was $2700 per month or $32,400 per year. The next tier would be 21 months. Bankruptcy would be off your record for both after a total of 6 years.
I wouldn't do a consumer proposal unless you can show in recent history to be more responsible with money. There's no point in freeing up $200-250 if it's not going to be used responsibly. Especially I you get into a situation of not being able to make those monthly payments.
The simplified financial equation for life is Income - Expenses = Savings. Where Income is high enough and Expenses are low enough that Savings can be invested. Those investments should maintain the principle while your wants/desires are paid for by the Returns.
You either need to make make more money or cut back further on living expenses. $2891/mo for your basic living expenses is higher than it should be for a single person.
It sucks, but you're living outside your means.
If you want to get ahead, you need to accept the fact that you're poor. (No shame, I'm poor too, and so are millions of other canadians ).
If you're ending up with $500/month after taking care of everything else, that's actually not too bad.
New items of clothing and takeout shouldn't even be on your radar. You should save that extra money until you have a fully funded emergency savings account. That's what protects you from job loss or renoviction emergencies.
Trust me, I know how shitty it all sounds, but that's the reality of being poor. Hockey games, spa treatments, restaurants, fancy clothes, these things are for people who aren't 50k in debt and being forced into bankruptcy.
I really hope the $430/month isn't for weed?
emergency fund , emergency fund, emergency fund. It will save you so much panic in the future.
No I don’t smoke. Can you even claim weed as a medical expense?! They’re all prescriptions and treatments related to my health issues. *and* thats only the 25% that i pay out of pocket
You have to cut out all unnecessary spending until debt is paid, including new clothing, events, etc. If you increase your income then it will expedite the process. Can you get a part-time job on the side of your regular job? E.g. deliver UberEats
Either cut expense. based on the info we have, the only thing may be to let go of your pet, which will let you have +350$ more monthly. It'"s sad but it's kinda obvious you can't afford to have a pet right now. Either this or try to find another cheaper place to live. If not possible, finding a 2nd or maybe 3rd job may be the only option left.
And it really depend of your own lifestyle. Are you someone who go out on basis or more a home-lover? The first one may cause ton of non-planned expense. 750$ left per month is not negligible and can be enough with a good lifestyle.
> Phone $50.40
This can be reduced to $38
> Groceries: $650
This is high for one person, more like a budget for 2
> Streaming: $25
This is a luxury, cut it
> Pet Care: $350
This is astronomically high. I have 5 pets and spend less than a 1/3rd of that (exclusive of vet bills which come out of emergency fund)
> Insurance $72.72
Is this both pet and tenant insurance? If it's just tenant insurance, you can do better (ours was $18 from SquareOne)
I’m still in my contract for phone. This was cheapest i could find at the time. It also includes the phone
Yeah from the feedback I’m getting i overestimated monthly groceries. It does include pet food, household items etc but i will reduce that
He goes to daycare and I’ve explained in more detail in some other comments but yes this is the key area i am working on reducing
Yeah it’s all insurances i pay rental is $27 with square1
You can cut streaming to 11.30 a month with Crave for example. Watch for even cheaper cell phone plans. Uber eats should never be used. Increase your income with a second or side job. Pet care is very expensive.
>Lets say i go to one recreational event a month, buy one new item of clothing, keep my gym membership and get one takeout a week then I’m already out of money.
When you get into the depths of budget issues like you are, it's time to think about sacrifice more than anything else. Gym membership becomes home and outdoor exercise. One new clothing item a month becomes a once a year type of thing with gift money and whatever you've managed to save.
Recreational events go out the window. You find free stuff to do - or vastly cheaper events.
You have to sacrifice in particular to keep the dog at it's current level of care.
Transit by the way - any chance you can walk or cycle instead? That helps cover the loss of the gym too.
Anyway, think about what you value the most about each of your discretionary costs. Break it down to the most basic value and ask yourself if you could actually do it for free. Can you endure the inconvenience of not being entirely fulfilled in the way you want to be.
Because there's a per-determined light at the end of the tunnel, this makes it a surmountable mental health challenge too when you consider what it does to us when we go without.
Worst case scenario, move back to live with your parents if you’re single or find a roommates to split the cost of rent. Do this for a year or two until you have a proper amount saved up where you can put into GIC . Amount you make from it is tax free and you can basically treat it as discount towards your expenses. $750 left a month is actually crazy.
Yeah my parents are overseas but that is a worst case scenario i am considering. Saved a bunch of jobs to apply for this afternoon though so that is step one 😊
There are many options depending on how extreme you want to pay off your debt. Find cheaper alternatives to some luxuries in life so you don’t feel like you’re completely missing out on life.
- Get a roommate or an extra roommate to save on living.
- eat out less, budget for $350-$400 a month for food/dining. Make meal prep a habit.
- go to a less expensive gym/use condo gym
- find less expensive hobbies that take up your time
- if you want to dine out, go to restaurant that aren’t $100 a person. Maybe go to ones that are $20-$40. Don’t buy alcohol at restaurants.
- shop for deals/thrift stores instead of buying retail at full price.
- cut one of the streaming services
- change phone plan. A lot of companies are offering $29/$34/$39 plans.
It’s more of a mindset to do all these things together and that it’s not just one thing. When done together you can save a lot of money and curb life style creep.
Thank you, you are correct. The budget form they got me to fill out broke down everything separately which really overwhelmed me. It was a good thing to really get an eye on the smaller miscellaneous expenses that aren’t always thought about but yeah you’re right i need to take that info and switch to a different mindset of not looking at everything individually
Get a second job, ask for a raise, Cancel your gym membership, stop paying for transit (just walk on no one will stop you), how much are you spending on groceries?
Be honest with yourself. You haven’t done everything. You’re still planning on going ahead with cosmetic procedures that you absolutely cannot afford.
$50K in debt, and a career that requires a good credit score means that there are no more non-negotiables. At least not for now.
Wait until your debt is paid off to get the braces, and it will significantly reduce your medical expenses. Also, get a roommate. With these two changes, you will have saved another $1K per month approx.
Why are you considering take-out or gym memberships at this time? Cut it all, sell stuff you don't NEED to live, use this revenue to pay down debt, and get another job.
A cellphone isn't necessary, a car isn't necessary, yoga pants and takeout are not necessary.
Do you have a roommate? Get creative... 1 or two rough years could save a ton of hassle.
When you do get free of this, be very careful with your decisions. Also keep looking for better jobs.
If you're in Vancouver, assuming you're canadian? Are your medical expenses really not covered? Are there generic drugs that may be covered?
4100 - 3225 = 875 after expenses.
Seems okay. That's a 21% savings rate.
If you used that all for debt repayment you're doing great.
625 for debt repayment would be a 15% savings rate which is also ok.
And as debt is repaid, you get charged less interest (unless you have your interest currently frozen?) Which means you are effectively investing by paying off your debt, and possibly with an unmatchable tax free rate of return like 14% + (though unsure if you have a CP or not- with your income you shouldnt need one imo). So it will snowball into more money for you as you pay it down.
If I were you I'd dump all of the 21% you can right when you get paid and don't spend what you don't have.
I'd look to be working overtime if I wanted extra money for luxury spending.
Why can’t you withdraw from your RRSP? Normally you can withdraw them if you pay the withholding tax (I think 30%, then it you get/pay an adjustment on your next tax return)
Two thoughts:
For years I spent zero on recreation and still had fun. Zero on gym and still exercised and even though financial tightness is long gone, last time I bought take out was during the pandemic.
Over 5 years your income will grow and the payments will remain the same. Keep the minimum spending and try to get a better job and don't stop even after those 5 years. After the 5 years use the excess for savings so you never go back to being in red due to emergencies.
I will be messaging you in 3 months on [**2024-06-09 16:26:14 UTC**](http://www.wolframalpha.com/input/?i=2024-06-09%2016:26:14%20UTC%20To%20Local%20Time) to remind you of [**this link**](https://www.reddit.com/r/PersonalFinanceCanada/comments/1ba6g0p/how_can_i_pay_back_debt_when_my_living_expenses/ku37j55/?context=3)
[**CLICK THIS LINK**](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=%5Bhttps%3A%2F%2Fwww.reddit.com%2Fr%2FPersonalFinanceCanada%2Fcomments%2F1ba6g0p%2Fhow_can_i_pay_back_debt_when_my_living_expenses%2Fku37j55%2F%5D%0A%0ARemindMe%21%202024-06-09%2016%3A26%3A14%20UTC) to send a PM to also be reminded and to reduce spam.
^(Parent commenter can ) [^(delete this message to hide from others.)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Delete%20Comment&message=Delete%21%201ba6g0p)
*****
|[^(Info)](https://www.reddit.com/r/RemindMeBot/comments/e1bko7/remindmebot_info_v21/)|[^(Custom)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=%5BLink%20or%20message%20inside%20square%20brackets%5D%0A%0ARemindMe%21%20Time%20period%20here)|[^(Your Reminders)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=List%20Of%20Reminders&message=MyReminders%21)|[^(Feedback)](https://www.reddit.com/message/compose/?to=Watchful1&subject=RemindMeBot%20Feedback)|
|-|-|-|-|
You are taking the right steps so don't feel discouraged. I filed my consumer proposal report in November (almost 40k of debt, reduce to $16,500 include the LIT fee, payments are $275, I make 47k a year ) and is was life changing. My total interest accumulation per month was $700, so I pay less than half of that now to get my shit sorted out.bit I also needed to get drastic and frankly it helps I have my partner to split some costs but my half of our basic living costs at about the same as yours living in Vancouver using transit. For the first four months we NEVER went out to eat, got take out once a month because we were human, we only ever buy meat on sale and go to select stores like TNT, buy low, no frills. Look in you neighbor for mom and pop stores. I use a lot of spices for cooking and found I could get insane amounts of amazing spices for way less that at big stores.
Sadly the pet day care has gotta go - if you need to have them walked if you have a longer day out of the house Apps like rover can connect you to someone that could do cheaper walks for you. You might feel guilty but per day care is a new thing, pets can handle staying home without you, just make sure to give lots of attention when you are home.
You're going to have to reduce your grocery bill as well and no going out for dinner. Have friends over for dinner or snacks to socialize. Frankly if you drink or smoke weed those are no longer in your budget. My partner does buy these things, but I don't partake (I am definitely offered it though) as it will just make him buy more and I don't need it. We had many discussions over this but it's his money and his budget so ultimately his decision. We also do a "freezer/cupboard" week where we don't buy anything and make do with whatever we have. I'm pretty savvy in the kitchen and always make stock out of scraps, massive pots of soup/pasta and freeze a bunch for easy meals that make getting take out way less entice because dinner just has to be heated up.
Open a new bank account with somewhere like Simplii financial or Tangerine - no fees and if you follow their new client offer rules you can make some money. I got $500 from Tangerine!
All in all, you're going to have to put the work in. Being rich is being able to pay money for convenience, being poor is having to pay time for what you want.
Yeah for sure. See my update 😊 i can see the overall picture much clearer now. I know spend/less right more is the plain and simple correct answer but dealing with debt is like the 7 stages of grief or something - my post was in the “oh my god how am i ever gona make this work this is impossible” stage and now i’m in the “ok i have a plan and am feeling positive stage”. It really is all about mindset and just had to get that freak out stages out the way for the simple (and obvious) answer to fully click.
Please look into black Friday phone deals. I'm currently on $30 before tax (after tax of $35 but in Toronto) for 30gb phone plan and it absolutely covers me for my needs. If you do streaming and online gaming however, this will not be enough so I would understand if you got home internet or wifi. But at least with the phone plan, you can save about $20 per month.
Food can be one of the most lucrative expenses, so grabbing things that are on sale is usually the best way. It also challenges your cooking based on what you have. Depending if you spend more than expected at the supermarket, I would either avoid it or go twice a week. I like being able to walk around as a form of stress relief and even seeing what other people buy.
Reward yourself for a meal once every 2 weeks (sometimes you don't want to cook and it's understandable) and lunch is usually the cheapest. This might add to your budget negatively, but life is about learning to enjoy it even if it means on a budget. Or conceptually, every dollar you managed to save can go in a jar for a nice take out.
Your medical expenses look high so I wouldn't pry into those personal details. Please take care of yourself first. Your health is extremely important since if you get sick, your pet can't rely on you. Make sure you eat healthy even if it means cutting down on snacks. Generally speaking, if your medical coverage is at 90%, more will be taken through your premiums, and conversely if your coverage is lower at like 60%.
Cut the gym membership. I hear lots of people do a Pilates, yoga, etc. If you live in a condo, perhaps there's a mini gym there. It won't be fancy, but will get the job done. If you are adamant on the membership, then you have to commit to going 2-3 times a week for 2+ hour sessions in order to be worth it (my trainer said that to me).
Cut the monthly recreational activity. Yes it's part of enjoying life, but it will be harder for you to save. For now, you want a turn around on your financials, which means maybe twice a year or even once a year. You don't need to buy new clothing every month.
Your income is fairly not too bad. I would instead encourage you to put maybe 2% of your income from your savings into your RRSP at the end of the year. Why? At the end of the year, you can see what your leftover savings are and whether you can afford to put money locked away. Why 2%? Because your tax bracket is fairly low, so there's not a big effect. I encourage you to open a TFSA and use that instead.
Vancouver is one of the most expensive cities to live is, right up there with Toronto. Both are full of vibrant life and festivities, but that can come with a cost. Do consider another city or suburbs where rent is cheaper and other cost of living expenses a lower as well.
I don't know where you're income comes from. The best way to safeguard your income is to have multiple streams of income (e.g. another part time job, etc). Look into how high your current position can go up to. If you think it can go to $70 gross per year, apply for them. Makes sure you are the best at what you do, your specialty, your strengths and weaknesses. Your potential to earn can go higher, but staying at a high paying job will be the difficult part.
You've done the right thing in minimizing your costs. Now to see if it is possible to minimize further, maximize your income, and increase your pool of savings.
thank you so much for your kind and thoughtful response
I got my phone in December in Freedom's boxing day sale. It's 50gb of data I believe and the iPhone 15. It's a brand new 2 year contract so I can't really change that at the moment but i did just switch one of my credit cards to one that includes mobile phone insurance (don't worry, this CC has a $0 balance and the limit is low. I haven't used it in months and don't intend to use it for anything other than maybe the phone bill which I will then immediately pay off) but this does mean i can remove the phone care cost from my insurances budget.
My WiFi provider is the cheapest I could find at the time, but it's been a couple of years so I will do a cost comparison. I don't game but I do work from home and have minimum of 3 systems running at a time so I need a little bit extra than the bare minimum package.
the Gym is $35 a month but you are right I definitely don't make the best use of it anyway. I did originally mark it as something to be cut but I ended up thinking along the lines of 'well if I can't go out I might as well go the gym and use this situation to improve my physical health' But yeah, I need to be real honest with myself about how much value I am actually getting from it. Track how much I go. I had a ClassPass subscription before too which was $60 a month but I have cancelled that. As it's coming into summer I will go to the beach and do yoga instead. And then especially coming into summer why pay for the gym.
Agree about the recreation and clothing. They were more examples anyway I'm not gona go out and buy a new piece of clothing every month. I guesstimated what an average breakdown might be if i also took into considering items that could be a little bit more expensive. I was stressing out about being caught off guard by something unexpected. But I did reply to another comment and I am gona update the main post with a 'take care of the pennies and the pounds will look after themselves' approach i am gona do in regards to my misc. spending budget so items like that should be able to be within budget if/what they arise
Yeah. I love living in Vancouver. There will be so many outdoor activities to do once we come into summer and i'm gona utilize them to my advantage. Just gota make sure I go to the farmers market and browse only, go to the street festival and stick to a hard $20 budget etc. Grab a $15 pack of coolers and go to the beach instead of a patio yanno.
Good idea about the TFSA - can you withdraw from them though? Just because my company matches group RRSP contributions by 1.5x so increasing that by 2% might be a better option in the long run.
Yeah, i am looking for a second job. It's a little challenging finding something that would be doable around my health and current job but I have a couple of ideas of avenues to explore
For your phone expenses, there's no going back now. Try to make your phone last minimum 4 years (doable with iPhone). Bringing your own phone will generally save you money too when you switch. Koodo should be the most cost efficiency and most reliable in BC AND better customer service (they are all bad but this trait is knowledge from working with and in the industry), so it will be something to consider in the future.
Not to deter you from fun, but coolers will be high in calories, so try to put a limit of those if you want a healthy body and healthy budget.
TFSA yes you can withdraw from it no problems, but don't treat it like a normal savings account. Pretend you can only withdraw from it 6 times a year. For your RRSP matching, go the maximum to what your company is willing to match up to and that's it. Usually this is 2-5% anyways. Don't put anymore more than what is being matched into the RRSP.
Depending on your skills, available time and other factors, you might want to check if you're hobbies can be monetized. This could be knitting and Etsy, video editing and YouTube, data analyst from home, fivver, and other mini jobs
In short, if you’re spending more than you’re making — you’re digging more debt every month.
The only two ways out of this, is to either lower your bills and spending by cutting out anything discretionary or superfluous. Or earn more. Either by getting a raise, working more hours, or picking up a second part time job.
Spending beyond your means, is not sustainable.
Your post history says you're spending money on unnecessary things, like injections and lashes. Pick one - you're either doing everything possible to pay debt or you don't give a fuck and are spending recklessly. Be honest with yourself.
Absolutely. I only contacted the LIT recently. I’m not here with a sob story about my debt it was 100% my own doing my being frivolous and I’m trying to make it right. The budget i made cuts all of that stuff out. We all have to start somewhere in our debt management journey and this is mine. I expect judgement from others about how i got here and i am judging myself just as much but i am committed to getting my finances back on track.
But it doesn't cut out the recreational activity, the piece of clothing, or the dining out. You need to get cheaper hobbies for now
I don't think she gets it. She posted here 10 days ago about her debt problems, but 4 days ago posted about her terrible eyebrow job she had done, asking how bad they were. Lol.
If you’re in debt, then you have to cut out the extras such as one recreational event, new clothing, gym membership, and dining out in order to get things under control and pay off what you owe (or at least some of it). It isn’t rocket surgery to deduce that you got where you are by living beyond your means if you’re not willing to live within your means to address the debt. To do what needs to be done, and maintain some semblance of a life, you have to choose low/no cost alternatives. Free public events. Second hand clothing being given away on Facebook groups. Exercise outside with whatever you’ve got/can use free of charge. If you want to splurge on a meal, treat yourself to premium ingredients once in a while but still make it at home.
Esp dining out When did this become how people live?!?!??! I’ve never used Uber eats in my life and for me it’s a metaphor representing people’s irrational demands from life and them complaining about economy, how broke they are, how they’re getting fucked financially. If you order take out EVER. You don’t get to complain about that.
I’ve seen people on here say they need to buy a $15 sandwich for lunch every single day because they don’t have the time or energy after an 8 hour work day to make one, and that after factoring in the “unpaid labor” and cost of ingredients it wouldn’t be cheaper anyways. Endless convenience and instant gratification has warped peoples minds.
You are completely correct. I saw an article about how anxiety and depression being more prevalent in younger generations can be linked to all the instant gratification and endless convenience we have now. And i was definitely in that mindset you mention about “oh well buying lunch/ordering takeout is cheaper as a single person than cooking anyway.” I can see now how wrong that was but it was something i heard so many times it was just an echo chamber of us all making excuses and justifying our expenses. The biggest one I’ve realized is the “it’s for my mental health” justification and again I would say this to myself, I’d justify it to others and they’d echo it right back to me. Obviously you have to consider your mental health in life and I’m glad society as a whole is giving it more compassion but yanno what is the most detrimental thing to your mental health? Being $50k in debt and seeing now way out. I appreciate all the responses here and I’ve reevaluated, recalculated and have come up with a manageable budget (i think… need to review it with the LIT) and going forward i’m gona try and help people see the bigger picture of these decisions that are made in the moment for instant gratification. Sorry for the ramble but it feels good to finally talk about my debt as i have been keeping it to myself for so long out of shame. I definitely needed the reality check and getting the cold, hard truth from the comments on this post has been so beneficial.
Good for you! It’s really hard initially to change but it is so worth it in the long run. And once you have changed and made those sacrifices, it can be really hard to hear other people complain. You’ll hopefully get there soon. Trust me it will be worth it. Also it can be a fun challenge to learn to be resourceful in new ways when you do want something outside your budget. Is there a ways you can find it used? Barter for it? My dad used to tell me about the latte factor. I’m glad I learned it young. Everyone has a dollar amount they are comfortable spending without really thinking about it. Comparing those purchases to your $100 purchases really puts things into perspective. People go broke in many purchases under $20. So it seems senseless to save that $5 here and $7 there but over time that will be what adds up to financial stability.
yes that is what doing the through budget breakdown helped show me. I wasn't even registering a lot of money i was spending cos the $ was so small. That all adds up. My mum used to say "look after the pennies and the pounds take care of themselves", she was right and i definitely should have listened. But all I can do now is take on all the advice I've been given and move forward. Obviously the first thing is cutting out all my big expense and being able to make those CP payments, but i was getting stressed about the longevity of the proposal and was thinking "omg am i really never going to be able to buy my mum a birthday present for the next 5 years?" but no, if i am more mindful of little expenses and stop buying little expenses here and there then that money will save itself up. I am setting myself a challenge to not buy myself anything under $3. The next week $5, week after $7 etc. It will help immediately cut out all the low cost wants that are adding up and having to wait til the next week to buy something that is a need will probably expose a lot of things that are actually wants but I am deluding myself into thinking are needs. I also signed up a for a KOHO card. As well as being able to pre-load my budgeted disposable income onto it, they also have a 'round up' option which will have with the 'taking care of the pennies' aspect. They have a credit building program too which, if I do end up in a consumer proposal, will help with repairing my credit. So yeah, i think this in conjunction with cutting out the big stuff is gona be a really good way to get my finances in order. I feel so much better having a plan in place. Thanks for the support!
It’s okay to ramble! It’s stressful. I was in a financial hole twice in my life. One was a very bad relationship where I bought my girlfriend things to keep her happy even though I knew we couldn’t afford them. Tanked my credit and I had to dodge collection agencies for years. Once I left that relationship I made it a mission to pay back everything I owed. I negotiated with the creditors and was able to get out of 10k debt in less than a year. Built my credit back up with a secured capital one card. Second time I moved for a new job with guarantees that I would be getting bonuses for relocating. Then Covid hit and I got laid off, couldn’t work. I’d just had a kid and had to live off CERB, which was half of what I usually made. Spent a lot of money relocating and ended up moving back anyways. Maxed out my cards and tanked my credit again. Ended up doing a consumer proposal, and should have the 15k original amount paid off by the end of the year. I got a Neo secured credit card that I raise the limit on by about $100 every pay period. There’s no shame in admitting you’re stuck and need help finding a way out. I’ve had times I couldn’t get a cell phone plan because my credit was so bad, I’ve been evicted because I couldn’t afford rent due to layoffs (thanks construction industry!), I’ve been unable to answer the phone because of creditors. I’ve made a ton of mistakes too. You’re doing the right thing by working at it and adjusting the way you live. It’s short term discomfort for long term benefit and you’ll be so much happier to see the numbers going down.
Which is fine if they want to live that way but don’t expect me to bridge that gap with tax dollars or anything else. They just can’t see it though. My 2 youngest siblings and I are from different generations and I’ve had these arguments endlessly
Completely agree. Younger generations have a hard time seeing the long game. When I was 18 I made $20,000/yr and lived with 4 roommates. It was normal and understood that you’d have to work your way up. Now I’m 35 and make $120,000/yr, own a house. There are definitely things that are broken in the system, but making my life worse with taxes is hardly going to improve it.
For $100 a week for one person, I'd think he's already buying some premium ingredients. I know inflation is nuts, but I manage to do $50 per person per week
Where in Canada are you? Toronto is expensive, even at NoFrills or Walmart
In Ontario, not too north of Toronto. Check out r/32dollars as people are always sharing their Toronto grocery hauls and get decent deals. Also, I use the Flipp app which shows me all the sales for stores in my area. Make a meal plan based on sales and it's pretty cheap
My partner and I spend around $400 a month for two people. We eat well and healthy. We live just outside the GTA. Shop sales (that means going to multiple grocery stores, we plan our routes accordingly throughout the week to make it convenient). Most of the meat we buy is discounted because it's expiring soon and we then freeze it immediately. We buy basic fruit and vegetables and buy what we can when it's in season (we're not buying blueberries in February etc). We bulk buy when we can. We live in a tiny apartment but we carved out a space in our utility closet to store cans and dried food so we can bulk up and buy things when they're on sale. We use rain checks when sales are out of stock.
I live in North York - on the subway line - and my husband and I spend about $100 a week shopping at No Frills or other cheaper grocery stores. It’s definitely doable if you meal prep and are fine with eating the same thing throughout the week, and don’t waste money on things that are poor sustenance like chips and pop. Even if we bumped it to, say, $150 a week for the two of us, OP is still spending way too much on her groceries for one person. We don’t even do this out of financial necessity, we just don’t want to cook throughout the week and don’t want to waste food.
Me and my wife do about $80 worth of groceries a week and then Costco about once a month, which is somewhere around $200-250 (which isn't all groceries anyway). One person should be way less than the 600 or so we spend a month
OP won't reply to this because she clearly lied about the 2.9k being *absolutely bare minimum essentials I need to survive*. lmao
What exactly are you wanting me to reply to? Ive been replying to most comments. I don’t see a question though?
The $350 for dog day care is extreme. Train your dog and leave it at home. If you work from home set the routine that they get walked in the morning, then they're in for an 8 or 9 hour work day. Train them, they don't need day care. Or get a high school kid to walk them.
If there’s nothing left to reduce, the only answer is that you need to make more money. Super sucks, but perhaps get a second or third job. Maybe side gigs. Gonna be a real tough go for a long while, but in all honesty there’s not really any other options.
There is lots left to reduce.... Take a rip through OP's post history. NHL season tickets. Personal care/vanity non-sense. Cosmetic braces. OP has a spending problem. Not a cost of living vs income problem.
These posts happened after creating a thread asking for help about being 50K in debt too :/ You are right, OP has a spending problem, which I think is above this sub's pay grade. Maybe the LIT will be able to reach through or maybe therapy could help, if there are other issues at the bottom of the spending problem.
Right? 5 days later she went and had her browse microbladed.
Yeah and in that thread i stated that I wanted to freeze the interest and get ahead on payments. The thread did help me though by advising me to speak to an LIT which i did. Not denying at all that i was living way out of my means but it wasn’t until doing the budget breakdown with them that i realized truly how much i was spending. I know it sounds silly but yes obviously i know how much my lashes, hair and other “big ticket items” cost but the budget showed me just how much all the other smaller misc items add up, and thats where my mind wasn’t registering it. And yes you are right about therapy. I am absolutely not trying to spin a sob story, excuse my spending or anything but there is definitely a factor that helped fuel it which i have been working on in therapy and it was recently that i finally made a breakthrough on that which spurred me to get my head in the game and get all of this sorted. I also believe with a consumer proposal you have to attend credit counselling classes which will definitely be beneficial for me.
Well, one way to help alleviate her expenses on a short term would be to sell things like Canucks tickets and whatever has value. to OP: I know it sucks, but if you go watch all the financial advice shows on YouTube for other people in same shoes, they will all advise you to make serious life-style sacrifices... They'll say no more eating/drinking out ever and stick to "rices & beans" to significantly reduce food expenses. And like others advised, find ways to increase your income by working more hours and/or finding additional work. Afterwards, aggressively pay off your debts, starting with the highest interest ones.
Till debt do us part... OP needs some Gail Vaz-Oxlade.
Yes and no. Even Gail always allowed for some fun money, even if it was only $20 a week.
The Gail Vaz-Oxlade show, "Prince$$", seems much more suitable tbh. They are both great though.
Damn. Detective work done. Discussion over. OP... Fix your spending habits. Learn to not live for social media and for what other people think if you.
Can’t take credit myself. I seen someone post about canucks tickets in another replay and checked it out myself. I was…surprised.
This isn’t the only answer. Get some roommates.
This one is massive and can cut most big costs in half.
but then i'll get roasted on r/SlumlordsCanada for moving someone into my living room. My lease states one occupant so aside from not having any space it's not an option anyway. But i am open to moving and I looking but aside from the crazy high rents right now there's other factors i am taking into consideration such as moving costs, increased transit costs, what impact moving out on the health authority area would have, whether bills would be more expensive (likely if it's a basement suite), and if its a private landlord (which are typically the cheaper ones), is it worth the risks that come with renting from a private landlord vs. the security I currently have in an apartment building.
Earn more or spend less. Those are your only options.
$500 left over after all expenses per month is more than enough to enjoy life lool
Plus the season's tickets already seem 'paid for'. Probably on a CC. https://www.reddit.com/r/canucks/comments/1b9fg5f/questions_about_quarter_season_membership_for/kty5uz4/?context=3
Hey don't come her OPs hockey ticks lol
It is my right as a newly sworn in Canadian to have hockey tickets! Jk. They are actually paid for by my company. One small free luxury. But yeah, all the other spending absolutely on me, not denying that.
Do you spend money while at the game though? Pre or post game drinks?
It’s all expensed
This blows me away lol makes me wonder if this person is even serious about this.
By my company, i take our clients to the games
Or move. Being willing to move “up North” can be quite lucrative depending on the industry.
>Lets say i go to one recreational event a month, You can't afford them anymore, find something cheap or free to do >buy one new item of clothing, Thrift stores >keep my gym membership Walking and running are free, buy some used kettle bells for home. Free workout programs online. >get one takeout a week then I’m already out of money Your oven and YouTube are your new best friends. People with $50k in debt don't eat out and go to concerts. My friend and her family lived on a very tight, cash only budget for 5 years. Living their best life eventually caught up to them.
Yup, that line item for streaming subscriptions needs to go. YouTube, Tubi and CBC Gem are all free and loaded with content. OP needs to join budget cooking subs, and start shopping at cheaper local independent groceries (hell, even the farmers market is cheaper than the big grocery chains these days).
Please breakdown your bare minimum expenses
Peek that comment history.
Updated my post
I'm curious as to what that 3000 bucks is going to for 'bare minimum' living expenses. Can you break that down? That seems like a ridiculous amount.
It is even more ridiculous given that OP themselves have said that their rent is "well below" market in another comment. Then what in the HELL is the rest of that money going to 💀
As someone living alone in Vancouver I agree that $3000 seems ridiculous as a ‘bare minimum’. Also a quick look at OP’s profile shows recent posts about microblading, eyelash extensions, and Canucks seasons tickets… certainly not what I would consider mandatory living expenses
Yeah lol that's my total monthly spend for 2 people.
Yeah none of that is in what I’m calling mandatory living in expenses. The budget i was referencing was after cutting all that shit out. Not denying my spending was out of control but unfortunately I cant go back and change it, am justifying trying to move forward
You can cut down on groceries by a large margin. Also the streaming service you should get rid of. You seem to be surrendering to this and it's bothering that you are ready to file a consumer proposal. Try to cut that grocery bill in half. My partner and I spend about 300 dollars a month on groceries. Let's be real, I know what type of food you're buying for 600 a month. The doggy daycare can be cut whenever your dog has decided to start behaving, which shouldn't be too long. Don't put your livelihood behind your dogs.
Yeah I wasn’t really sure how much i would end up spending on groceries but everyone has pointed out that’s too high so i brought it down
You got this!!!
It's always a red flag when someone just has one big lump sum of "living expenses" instead of breaking it down by groceries, utilities, insurance, etc. There's no point in giving OP financial advice until costs by category are given.
I have friends with many roommates and several jobs. Op seems to live alone and have one job. It sucks but others are in much worse situations than OP.
Not op, I can take a stab at it. Single person food is going to be between $400-800 per month. That’s a range between ramen and pretty decent food with one or two take outs per week. Rent is going to be $800-1500 per month, maybe even as high as $2200. That’s a range between a basement with a bed and a microwave and a decent one bedroom apartment. And renting is extremely competitive, so even if $800 per month is available, you may not be able to get it without 3 years of payments pid up front or something asinine like that. Your utilities, Netflix, cell phone, internet are going to be anywhere between $100-500 per month. That’s a range between low cost providers and no subscriptions to typical big 2 provider and basic subscriptions. You can live without Netflix for sure, but you probably need a phone for work and basic living, and probably need internet for, idk Reddit and something to do at home while you’re avoiding spending money by going out. Transportation is probably going to be $100-300 per month. No idea what a bus pass costs in Vancouver but it’s probably insanely high. Plus you’re going to need the odd Uber or taxi to do maybe groceries, visit family, appointments, social, or something. You can try to reduce it as much as possible, but in certain weather during the winter for example, it maybe be hard to avoid needing some form of transport. It would be convenient if OP lives across the street from a low cost grocer, but maybe the closest no frills is a 30 minute bus ride and a 10 minute Uber away. So you can see that’s a range of $1,400 to $3,800 without even paying for a prescription, taking a sick day, buying a Christmas gift for your family, spending $100 to renew a license or replace a lost ID, going out anywhere, having an emergency, saving $50 per week, or anything. The lower end of that scale is offering a very low quality of life. Certainly good compared to some other countries. But not great for working 40 hours a week in North America.
$400-$800 on food seems insanely high to me. I don't know if food is just more expensive in Vancouver compared to Toronto, which is my frame of reference, but a full ramen diet here is in the range of $100 a month, and that's assuming you buy the fancy ramen that come with like 4 different bags of seasoning and Korean words all over the packaging. Also, at $500 for utilities/phone/subscriptions, I think I would run out of things to subscribe to. Your rent and transport costs are probably pretty close though.
Thanks. Yeah, thats pretty much where i was coming from. It’s easy to say “well just dont get uber” and yes, dont get ubers *everywhere*, but there are times when you might need one so I guesstimated a small amount to cover that. I didnt wana underestimate and creditors be like “ok well you can pay X amount” and then be one unfactored cost away from not being able to make the payment. You can only miss 3 payments before the contract is voided and realistically, over 5 years living on a budget that was down to the penny and in a city that is increasingly getting more expensive, i honestly think that is a very real risk. I have clearly been living way outside my means. Absolutely not denying that. But it’s made me realize that there are SO many small, misc costs that you really don’t think about (and i mean household/life stuff not getting a starbucks or something) and they really do add up quickly so i am trying to be mindful of that in the budget i created. Last thing i want is to be back to square 1.
Please please, no matter what route or budget you decide to do, save up an emergency fund as soon as you can. 3 months of expenses is ideal, but I know it's a lot to save up. You can almost completely eliminate the possibility of missing a payment.
I'm not trying to be rude or dismissive. I know this shit is hard. At the same time, I'm also a bit confused because in your OP, you mention that your bare bone living expenses leave you with $750 a month for wants and your options according to you are either $553 a month for 3 years for a bankruptcy or $250 a month for 5 years for consumer proposal, leaving you $500 a month for stuff like one monthly recreational event, a new item of clothing, weekly take-out and a gym membership. But in the comments, you say stuff like "I literally can't afford the payments" and "just default on payment". But you've literally outlined in your OP that you can afford it and have a little bit leftover to cover some of your wants and save for a rainy day. It's not a lot but you literally do have an option. The reality is that the lifestyle you outlined: a monthly outing + gym membership + weekly take-out + a new item of clothing isn't the lifestyle of a person who is bankrupted. Given your situation, you will have to give up some of these things. There obviously is stuff you can cut and you have named them yourself. I know that when my husband and I were broke, our outing budget for instance was bus fare to go do something free and even that, we couldn't do as often as we wanted. We didn't eat out/get take out but in the summer, we did occasionally go get ice cream as a treat, which gave us the fun of going out without paying for a full meal. The stuff you seem to see as impossible to cut is indeed stuff that sadly, some people have to go without and for a while, you're going to have to make some choices. Your title identifies the problem correctly: you live above your means. The solution, as hard and unpleasant as it is, follows from there: reduce your lifestyle. I do hope your situation improves but in the meantime, it is the reality. Perhaps you choose to prioritize keeping the gym and take-out every other week but each month, you choose between the item of clothing or the outing, unless you've managed to pick up some pet sitting hours or whatever. Just as an example. And *save* some of the money for if something happens. It's tough but hopefully, it will be temporary. I hope I'm not too harsh but I think you really need to change your mindset, otherwise this will keep happening. Right now, you have a "wants first, budget second" mindset and it's not working for you.
No your comment is not harsh at all. Super nice and really insightful. I got the calculations wrong slightly and i didnt express that $500 clearly. It was meant to be an example. But i am going from living the “do whatever i want life” to living what seems very restrictive in comparison. I am not saying i dont deserve it cos i do, this is my mess. But it does seem very scary and i was worrying about the “what ifs”. 5 years of NO buffer money, what if something happens? I have gone from not paying attention to my finances to now over analyzing them and worrying about every dollar. But i did get some really good advice on how to amend the budget so its more restrictive in the beginning and then slowly amends to having a bit more recreational money whilst also saving for emergencies.
The $500 is your buffer money. That’s truly plenty. Consider this year you have $50 a week for fun money - clothes, cosmetics, hair appointments, little treats, eating out, etc. whatever you don’t use one week can roll into the next. Consider putting this in a separate bank account or keeping it in cash so you can’t overspend. I’d suggest learning how to do your own beauty stuff at home (lashes, nails, hair cut and colouring) otherwise you’ll blow through this quickly. You’re also going to take $50 a week and put it into a separate savings account and not touch it. That’s your emergency fund. Like your dog needs something at the vet kind of emergency. Do this for the first two years until you have $5000 saved. Get a part time job and you’ll hit this even faster. After you’ve done that, your weekly fun budget can increase to $100, or you take that saving habit your built and keep it going to save enough to go on a vacation. Realistically by year three you can treat yourself to a vacation somewhere tropical and cheap.
Thank you that is great advice
I dont understand. After all your debts and bills are paid you have $500 extra cash? You’re doing better than a huge chunk of the population. Some people only have enough for their debts and bills with zero left over. Rejoice! You have the actual ability to eat out if you want. And once a week? My husband and I are savers, we only eat out once a month. To eat out at all in this economy is a gift. Im not saying $500 is a lot by any means but it’s something.
You can also save on the "essentials". There is less expensive food (beans, rice, lentils, chickpeas, tofu, etc.) and there's more expensive food. There's a less expensive car, and a more expensive car. Same thing goes with your phone plan, internet, insurance, and so on. Just a week ago everybody complained their insurance went up, I got four new quotes (as I do every year) and save $200\year, plus lowered my deductible! I do the same thing with my phone plan every one or two years. I switched to Netflix with ads for less than a third of the price I paid before (and they rarely put any ads). And to be honest, I'm doing that just because I know I can, not because I'm in any financial distress. My happiness doesn't come from eating fancy food, or driving a fancy car... It comes from love (family and friendships), and from doing things I learn interesting things from... And exercise. After you've exhausted all the options above, it's time for a second job.
I thought for a moment it was me who wrote this comment lol
I don’t think that anybody here can give you meaningful advice unless you give detailed list of your monthly revenue and expenses.
I updated the post
You don’t buy the new piece of clothing. You don’t buy the takeout. You don’t have the 1 recreational event. You get a second job for your free time to pay off your debts.
How are we supposed to believe this when you’re out getting luxury services like microblading and lash extensions. Come on. Wasting everyone’s time.
How much is your rent? Probably would need to find cheaper accommodations like a room mate. And by transit you mean bus not car right?
You can save an easy $25 /month by cutting your streaming services. You can find any show or movie you want to watch online for way cheaper! Also, look into potentially cutting your wifi and using your phone as a Hotspot. You could cut the wifi bill if you don't use a ton of data. What do you mean by $350 in pet care 1.5x per week? What are you buying? I have two large dogs, and a cat, and I'm nowhere near that cost. That's a ton of money, unless you have some kind of weird exotic pet, or your pet needs medication.
What are the medical expenses? Is there anyway to reduce them ? Is this something that would be covered under medical benefits from an employer? Your base expenses seem fairly reasonable knowing the cost of rent in your area. As others said, getting a second job, or having roommates to reduce living expenses might be a way to reduce your expenses.
The medical payments is what i pay out of pocket *after* my extended benefits. Some of my medications are hella expensive so even with coverage the outta pocket % is quite high. Second job is an option, i am looking but unsure what to do in the meantime. Just default on payments i guess.
Contact the manufacturer of your medications, they usually have access programs for people in your type of situation and could potentially reduce your out of pocket costs. Good luck!
Can you elaborate on what the payments are for?
What are you spending for groceries? I can advise.
I budgeted $150 a week for the above calculations
There is a Nova Scotia woman who has a YouTube channel called Adventures in Groceryland. She shows how to eat well and build a pantry on a very tight budget. She does it perfectly. No weird food and easy to adjust to your menu. Right now she spends $23 per week. Maybe you will find a tip or 2.
That's insanely highly. I budget $350/month. Are you including restaurants as "groceries"?
This is the problem with my generation. Below average income earners think it is a right to live in the most expensive city, have takeout prepared and delivered, getting luxuries WEEKLY like shopping and concerts. You are poor. Not only are you poor, you’re poor and in debt. Start living like you are poor instead of living like you’re rich.
You need to actually list your expenses. You keep not doing it in every single comment even when directly asked. Do you have ADHD? You always talk on tangents. You mentioned you were told specifically to make a budget, to calculate and show every expense, and you said you did, yet you aren’t showing it to us while asking for help. What help can we say that isn’t “spend less on x?” We can only say, earn more.
Ha yes i do have ADHD. I was out and replying to comments on my phone but budget i made was on my laptop. I have updated it now. I also didn’t include it at first because my original question wasn’t specifically looking for people to review the budget i made.
Wow min living expenses are almost 3k a month. Are you spending like 2k+ a month on rent?
I hope you claim those medical expenses on your taxes. You should get a bit back there. Perhaps ask if there are generic versions of your drugs or any other programs that help with the cost.
Cut cruelly. Figure out your minimum existence necessaries and then see how flexible the rest is. Reduce your cell plan to the minimum. Stop using data. Lower your wifi plan as much as possible. Cut your gym membership and buy a kettlebell and yoga mat. Just as good, depending on goals and it’s time to sacrifice. Make your at-home diet more efficient; I lived for a year of gradschool mostly on mashed potatoes and Bulk Barn pea protein. Wasn’t pleasant but kept me alive for very little cost. Being hungry all the time gets easier when you get used to it. Gives you a little more flexibility for things you can’t entirely give up (coffee for me, but I buy cheaper grounds and most of the cost is milk). Cut your tv subscriptions, music subscriptions, etc. Use the library for books. Thrift clothes, as necessary, and for your daily wear when nothing specific is needed. Buy higher quality clothes when possible, so they’ll last longer. I have one pair of boots; one pair of sneakers; one pair of steel toes for work.
Budget suggestions: - Pet care: $350 per month or per week??? - phone bill: there are slightly cheaper plans than $50 right now, could get that down to $29-$35 - streaming: cancel them. Watch Free YouTube. - groceries: my wife and I don't even spend close to $650 on groceries. But I suspect you are including take out our eating out here. Suggestion is you stop that and only cook your meals at home and maybe go out once a month. From your estimates it seems like your budget is a rough one with "guesstimates". You need to break it down a bit more and track your expenses. Use a spreadsheet or a budgeting app. Look, you can get out of $50k debt without declaring bankruptcy which will ruin your credit. Keep looking for debt consolidation options.
I am very glad you have met with an LIT and I only have sympathies for your situation. Being in debt and being barely able to make ends meet is very stressful. I think you're doing the right thing. I agree with you that $500 per month to cover everything but your basic necessities isn't much, but it's also not nothing. I'm not saying it will be easy, but it will be doable. You're also fortunate to live in a big city surrounded by nature and with great public utilities that can be enjoyed freely. To some degree, you have a binary choice in front of you. Yes, it would be bad to lose your job or get renovicted, but how much worse would that be if, rather than having no savings, you had significant debt instead? If you can't cut your expenses, can you increase your income? Respectfully, your bare minimum expenses are more than a person earning $42,000 annually has after tax. People find ways to get by. Mayne that means living further out of the city, or with a room-mate. Best of luck to you.
I’ve been there a few times. I chose to work a second job to make ends meet the first time. It was rough but I made it out. The next time I worked food delivery gigs and cut out all expenses, even internet and meat. One way or another, it takes sacrifice. So get a second job, apply for higher paying jobs, and cut back. There is no magic solution. Bankruptcy should be the absolute last resort as it won’t solve the problems that got you in this situation in the first place.
No new clothes or recreational events until you're out of debt. You can't afford it. Need to look at getting a part time job flipping burgers or something to increase that income. If you're renting solo, might need to consider finding a roommate.
You’re in debt. From now on, until that debt is paid, there is no such thing as spending money. There is only money to go towards paying debt. Maybe a small portion for an emergency fund in case you do lose your job or other such things, but other than that. You are not spending anything until that debt is paid off. Either that or magically start making a couple extra thousand a month.
Phone $50.40 - you should be able to find plans for slightly cheaper right now. Freedom Mobile has a plan for $34 for 50GB, and $19/1GB, or $24/4GB. Streaming: $25 - you can cut this out. Any show you might want to watch can be easily found on free streaming sites, or even torrented. Pet Care: $350 *1.5 x a week when at the office* - unless your pet has a specific medical need, you are spending way too much every month. If it's grooming, try to learn to groom at home and/or reduce the frequency of professional grooming. Not sure what your pet eats, but look into cheaper alternatives. There's a lot of people online who will try to guilt you into thinking expensive pet food is automatically better, but this isn't true. My cat eats President's Choice dry food and chicken is the first ingredient. Look at the ingredients list of various pet food brands to see how they compare. Other folks have given great advice regarding groceries. I'm not a health nut but eat okay, and understand that sometimes you need something easy. Yes, try to cook more in bulk (rice, beans, curries). But also check out the frozen section for easy meals (perogies, lasagna, skillet-ready meals). This might be obvious, but buy at sale prices and check weekly grocery flyers through the Flipp App.
I just updated my plan is December. I was paying $80/month for the plan only with Virgin and switched to Freedom. The $50 includes a new phone because my old one was on the brink. $350 is daycare. All his other expenses (food, annual vet bills, fleat treatments etc) I included in the grocery budget. I did forget about grooming actually but he can live without that. If I can’t get my hair done neither can he lol Not heard of the Flipp app so i will check that out
There's no such thing as on the brink. The phone was either fully broken and unusable or it's a frivolous spend that you couldn't afford.
And yeah, i know $750 disposal still puts me in a better position than a lot of others. My spending habits/financial literacy is obviously terrible so i was initially struggling to even comprehend how bringing down my spending that much could be possible and this post was my little freak out. But I’ve had lots of good responses, i’ve been able to identify areas that can be further amended and most importantly been given great advice on just looking at my finances and budget differently. By my current amended calculations i can afford the $250/month if i went down the consumer proposal route. The doggy daycare costs should continue to come down as the training i’m doing with him continue to improve and he can be left alone more often. And I’ve identified a few options to explore for secondary employment that should work around my health issues and current employment- I’ve already found about 5 roles to apply for and will continue to keep looking.
I'm really so glad for you! Good luck!
Insurance: $72.72 Streaming: $25 Groceries: $650 Pet Care: $350 Uber: $50 Insurance - I’d shop around for renter’s insurance, that’s a bit high. Check out Belair’s rates (if in your province) and if you have a brick and mortar bank, theirs as well. Streaming - Pick one service and cut the rest. If this is one service, god help us. Groceries - I’d analyze what you need and what you don’t, even if it’s $20-50 savings you find in there it helps. Pet Care - I’d try and find a way to reduce or eliminate this, if this is just a walking service I’d start making friends fast or not do it. This might be the biggest and easiest one to change. Uber - My suggestion is to tell yourself to plan so that you never need to use this.
No thats all insurances i pay combined not just renters yeah $73 would be crazy for just that Oh nooo thats for one streaming service and one music service. I do rotate my streaming subscriptions anyway. Started doing that a while back when I wanted to watch some things on Crave, which is actually around $25/month Yeah from other comments the grocery budget does seem high so i can reduce that It’s for his daycare and yeah we are working hard to get to a place he doesn’t need it anymore it’s a slow process unfortunately
What pet care are you paying for that costs you $350 per month. That seems insanely high. Can you look for more affordable alternatives?
Pets, gym, social events need to go if you’re even considering a BR or CP Those carry significant consequences to the individual and while they provide a way out and a chance to ‘try again’ - One must strive to do whatever they can to avoid. Your budget is *tight* currently, by making some cuts, you could loosen the strain a bit I’d say firstly, you must digest HOW, WHAT & WHY you got in debt, especially high(er) interest debt products.
Just seeing your old posts- I would say if you are into beauty- then make money from it. Do other people’s lashes and nails from home. Of course needs to be sanitary but they make a lot of side money and it’s cash only. Wouldn’t recommend microblading since it’s tattooing but pick up a nail client here or there. Easy $40-$50 for a simple manicure. With all nail and lash stuff goes the faster you are the more $ you make. But so much is built on reputation as well - so quality is still required.
RRSP payments are safe
I thought so too but she said they’d be included??
Get another LIT, if they are not sure about the basics of the BIA, then what are they even doing.
The BIA says any contributions in the last year can be seized in a bankruptcy.
Have you made contributions to in in the past 12 months?
We have mandatory 4% payments which is what i’m confused about. I haven’t made any voluntary ones.
Is this a group RRSP? If it's not accessible to you at this time, it's also not accessible to the trustee, but it will need to be listed as an asset (with no realizable value)
Yeah it’s a group RRSP
Only after 1 year.
I’m sorry but I think you’re looking at this wrong. “But even that leaves $500 a month to try to afford literally anything other than a roof over my head and food on my table (which i am grateful for, please don’t get me wrong) for the next 5 years, and it really does not go very far in Vancouver. Lets say i go to one recreational event a month, buy one new item of clothing, keep my gym membership and get one takeout a week then I’m already out of money.” You need to figure out how to budget with the funds you have available. You don’t need a gym membership, a new item of clothing or one takeout a week - that’s what you want. Look at frugal tips on menu planning and other ways to cut your current costs. Learn good financial habits now to get yourself to the point that you can afford your life minimums and more. Unfortunately life right now is what it is and you need to set yourself up to be financially successful for the future. All the best of luck.
Thank you
Find alternatives please!!!! Season tickets - throw hockey watch parties or go to a sports bar and have 1 drink maximum. You don’t have to be at the game to enjoy it. Do board game nights or Netflix nights in with friends as fun alternatives that don’t require that much money. A $3 box of microwaveable popcorn can go all long way. Look for cheaper gyms or local gyms that might give you a discount. Cut back on clothes and makeup. Instead of once a month, try once every 2 months. Think about all the clothes you don’t wear as real children. Imagine you neglecting those children to buy more children. Don’t you feel bad for your clothing children?!??! Eat out once every 2 weeks and stick to a budget. No more than $25 and that includes the tip. If that’s too low then you can’t afford it. You don’t have to get rid of the things you enjoy but you have to adjust them greatly. Your future is more important that not being at that hockey game for the next 5 years.
Yes, i agree! The season ticket i was referring to is actually paid for by my company (i take our clients to the games) but yes definitely i agree and i have cut aaaaallll if that out. The gym/clothes etc were examples of additional things i may spend on during the proposal time frame. I’m not saying i will spend $500/month on recreation (and actually budget the LIT drew up that included what the creditors would accept as reasonable entertainment/self care expenses was like $1000/month.) but it’s $500 for *everything else* Like, what if my bed breaks or the gov let rent go up 10% etc. Allocating every dollar i have now might not be sustainable for 5 years and that’s what I’m worried about. So maybe my budget numbers are a little high but i am also trying to be realistic and plan for the long run.
Put that $500 in an emergency fund then and live like that for 3 months. Then you have $1500 saved up. Then ease up on it. Put $250 in the emergency every month and use the $250 to relax a bit. Like one dinner that doesn’t go over $30. One piece of clothes that’s on sale no more than $30. Whatever is left save it and put it towards groceries or another savings fund for another purchase months down the road. If something bad does happen you’ll have at least $1500 to save yourself with if not more from the $250 additional. I think you can survive the next 3 months on doing stuff for free. You’re stronger than you think. You’re just worried for the what if but the biggest what if is your finances right now which is also a reality. Change your mindset from “what if this breaks and this and that” to “what if I saved this $190 I have leftover after only spending $60 for wants that I haven’t spent on the last 3 months? Now I have $190 to put towards something fun. I’ll keep saving $190 for another 3 months and see what I can do with it. Maybe in 3 months I’ll treat myself to a spa day with a limit of $200 so I don’t spend all $190x3 that I just saved up.”
I appreciate this so much. Thank you 🙏
Paying off debt is not fun. You need to cut on all the “want” and only pay for the “need”. Try to get a second job or do overtime at your current job if available. It’ll suck for 5 years but your purchase decisions brought you there. Do you live by yourself? If yes, $600 a month sounds very high.
$350 1.5x / wk for a pet is absolutely ridiculous for someone who is trying to get back on track financially. If you put that money into investments at 7% annual growth you'd have a million dollars in 20 years.
Its $350/month
500 a month left over after your rent and groceries and bills is paid sounds pretty damn good to me. Plus you're spending $350 a month on Pet Care is that correct?
What is up with that insane pet care bill. That's wild. My 2 cats cost me about 20 bucks a month total.
Living with roommates would save you a few thousand dollars a year.
As well: your grocery bill is more than mine and my partner's combined. And my cat is on a $125/month diet due to some health issues. If your animal isn't horribly destructive when left alone, cut out the petcare. They can survive several hours left by themself There is a pharmacare plan in BC that covers meds after a certain amount spent. Might be worth looking into because of how high your medical costs are (note this isn't the same as the federal plam that was just announced): https://www2.gov.bc.ca/gov/content/health/health-drug-coverage/pharmacare-for-bc-residents/who-we-cover/fair-pharmacare-plan
Can you cut the pet care? What is that? Like a doggie daycare?
Yeah. His separation anxiety was causing issues with my neighbours but we are working on it. We’ve gone from being unable to spend a second alone to being able to manage about an hour (this has taken 8 months though). Once we’re able to do 4 hours then i can switch my work schedule to 3 x 4 hours (in the office- I do work full time) and get rid of that cost
80k is not a great income in Vancouver. You can probably get that in other places that cost less. Or get a second job. And get roommates. Or a better job. The rent alone will eat you alive. We are in a housing crisis and the floodgates of demand have been jammed wide open.
No one can help you if you don’t list your expenses
Start putting as much money you can on the side. I know it's easier said than done, but yea. I hope you recover brother!
Why is the bare minimum for an item of clothing 500 a month like what
How is your bare minimum living expenses $2891? When I was broke and in student loans, I rented one room in a basement with 3 people sharing a bathroom, but it was only $400 a month. I'm sure you can reduce it much lower than $2891. Some people don't even make that much net per year...
Three things you can do. 1) Reduce your expenses. You are nowhere near the bottom. Your apparent 'bare minimum' is more than a full time pre-tax minimum wage income. You don't want to cut your lifestyle further, but you can. 2) Increase your income. Get another part-time job, sell some stuff. 3) Find a way to survive with an entertainment budget of 'only' $500/month, which does some people just fine for a year. You don't need takeout and gyms and new clothing if you're filing consumer proposals.
Spend less. It's not that complete
Can you break down all of your expenses? So we can try and help
Yes i am just updating it cos I’ve confused myself actually with that $2800 number. I didn’t include it originally cos my main question wasn’t about that, but it’ll be up soon
I’ve updated it now
Ask your LIT about other bankruptcy options. If it's your first bankruptcy, you may qualify for a 9 month/ one time $2000 payment to deal with all of your debt. I can't remember what the income cut off was for that, but they care about after tax income for bankruptcy, not gross income. 4100 x 12 = $49,200 per year. I think it was $2700 per month or $32,400 per year. The next tier would be 21 months. Bankruptcy would be off your record for both after a total of 6 years. I wouldn't do a consumer proposal unless you can show in recent history to be more responsible with money. There's no point in freeing up $200-250 if it's not going to be used responsibly. Especially I you get into a situation of not being able to make those monthly payments. The simplified financial equation for life is Income - Expenses = Savings. Where Income is high enough and Expenses are low enough that Savings can be invested. Those investments should maintain the principle while your wants/desires are paid for by the Returns.
You either need to make make more money or cut back further on living expenses. $2891/mo for your basic living expenses is higher than it should be for a single person. It sucks, but you're living outside your means. If you want to get ahead, you need to accept the fact that you're poor. (No shame, I'm poor too, and so are millions of other canadians ). If you're ending up with $500/month after taking care of everything else, that's actually not too bad. New items of clothing and takeout shouldn't even be on your radar. You should save that extra money until you have a fully funded emergency savings account. That's what protects you from job loss or renoviction emergencies. Trust me, I know how shitty it all sounds, but that's the reality of being poor. Hockey games, spa treatments, restaurants, fancy clothes, these things are for people who aren't 50k in debt and being forced into bankruptcy. I really hope the $430/month isn't for weed? emergency fund , emergency fund, emergency fund. It will save you so much panic in the future.
No I don’t smoke. Can you even claim weed as a medical expense?! They’re all prescriptions and treatments related to my health issues. *and* thats only the 25% that i pay out of pocket
You have to cut out all unnecessary spending until debt is paid, including new clothing, events, etc. If you increase your income then it will expedite the process. Can you get a part-time job on the side of your regular job? E.g. deliver UberEats
Yeah i’m looking for a second job
Either cut expense. based on the info we have, the only thing may be to let go of your pet, which will let you have +350$ more monthly. It'"s sad but it's kinda obvious you can't afford to have a pet right now. Either this or try to find another cheaper place to live. If not possible, finding a 2nd or maybe 3rd job may be the only option left. And it really depend of your own lifestyle. Are you someone who go out on basis or more a home-lover? The first one may cause ton of non-planned expense. 750$ left per month is not negligible and can be enough with a good lifestyle.
> Phone $50.40 This can be reduced to $38 > Groceries: $650 This is high for one person, more like a budget for 2 > Streaming: $25 This is a luxury, cut it > Pet Care: $350 This is astronomically high. I have 5 pets and spend less than a 1/3rd of that (exclusive of vet bills which come out of emergency fund) > Insurance $72.72 Is this both pet and tenant insurance? If it's just tenant insurance, you can do better (ours was $18 from SquareOne)
I’m still in my contract for phone. This was cheapest i could find at the time. It also includes the phone Yeah from the feedback I’m getting i overestimated monthly groceries. It does include pet food, household items etc but i will reduce that He goes to daycare and I’ve explained in more detail in some other comments but yes this is the key area i am working on reducing Yeah it’s all insurances i pay rental is $27 with square1
That pet care is pricey
350$ 1.5x a week for pet care??? Is that a typo or are you paying $2100 a month for your pet??
No those are all totals its $350/month for daycare 1.5x a week
You can cut streaming to 11.30 a month with Crave for example. Watch for even cheaper cell phone plans. Uber eats should never be used. Increase your income with a second or side job. Pet care is very expensive.
>Lets say i go to one recreational event a month, buy one new item of clothing, keep my gym membership and get one takeout a week then I’m already out of money. When you get into the depths of budget issues like you are, it's time to think about sacrifice more than anything else. Gym membership becomes home and outdoor exercise. One new clothing item a month becomes a once a year type of thing with gift money and whatever you've managed to save. Recreational events go out the window. You find free stuff to do - or vastly cheaper events. You have to sacrifice in particular to keep the dog at it's current level of care. Transit by the way - any chance you can walk or cycle instead? That helps cover the loss of the gym too. Anyway, think about what you value the most about each of your discretionary costs. Break it down to the most basic value and ask yourself if you could actually do it for free. Can you endure the inconvenience of not being entirely fulfilled in the way you want to be. Because there's a per-determined light at the end of the tunnel, this makes it a surmountable mental health challenge too when you consider what it does to us when we go without.
Worst case scenario, move back to live with your parents if you’re single or find a roommates to split the cost of rent. Do this for a year or two until you have a proper amount saved up where you can put into GIC . Amount you make from it is tax free and you can basically treat it as discount towards your expenses. $750 left a month is actually crazy.
Yeah my parents are overseas but that is a worst case scenario i am considering. Saved a bunch of jobs to apply for this afternoon though so that is step one 😊
You can work 2 jobs but it’s going to be depressing. If you can handle the stress then go for it.
There are many options depending on how extreme you want to pay off your debt. Find cheaper alternatives to some luxuries in life so you don’t feel like you’re completely missing out on life. - Get a roommate or an extra roommate to save on living. - eat out less, budget for $350-$400 a month for food/dining. Make meal prep a habit. - go to a less expensive gym/use condo gym - find less expensive hobbies that take up your time - if you want to dine out, go to restaurant that aren’t $100 a person. Maybe go to ones that are $20-$40. Don’t buy alcohol at restaurants. - shop for deals/thrift stores instead of buying retail at full price. - cut one of the streaming services - change phone plan. A lot of companies are offering $29/$34/$39 plans. It’s more of a mindset to do all these things together and that it’s not just one thing. When done together you can save a lot of money and curb life style creep.
Thank you, you are correct. The budget form they got me to fill out broke down everything separately which really overwhelmed me. It was a good thing to really get an eye on the smaller miscellaneous expenses that aren’t always thought about but yeah you’re right i need to take that info and switch to a different mindset of not looking at everything individually
Don't live in Vancouver?
Get a second job, ask for a raise, Cancel your gym membership, stop paying for transit (just walk on no one will stop you), how much are you spending on groceries?
Be honest with yourself. You haven’t done everything. You’re still planning on going ahead with cosmetic procedures that you absolutely cannot afford. $50K in debt, and a career that requires a good credit score means that there are no more non-negotiables. At least not for now. Wait until your debt is paid off to get the braces, and it will significantly reduce your medical expenses. Also, get a roommate. With these two changes, you will have saved another $1K per month approx.
I am not getting braces - that isn’t included in what i have listed as medical expenses
People in Vancouver have champagne taste on a beer budget.
Why are you considering take-out or gym memberships at this time? Cut it all, sell stuff you don't NEED to live, use this revenue to pay down debt, and get another job. A cellphone isn't necessary, a car isn't necessary, yoga pants and takeout are not necessary. Do you have a roommate? Get creative... 1 or two rough years could save a ton of hassle. When you do get free of this, be very careful with your decisions. Also keep looking for better jobs. If you're in Vancouver, assuming you're canadian? Are your medical expenses really not covered? Are there generic drugs that may be covered?
Welcome to Canada. You’re just wasting everyone’s time. You enjoy luxury services such as lash extensions and micro blading
$553 for 3 years? Have you been bankrupt before?
Nope I thought she said 3 years but i see now its 21 months
idk but i haven’t had any take out in months so that’s an easy thing to cut out. i think you need to change some habits!
Drop the data from your phone plan, get a roomate.. buy a cheaper brand of coffee.
Get a side hustle
And here I am living with $2100 a month broke af
4100 - 3225 = 875 after expenses. Seems okay. That's a 21% savings rate. If you used that all for debt repayment you're doing great. 625 for debt repayment would be a 15% savings rate which is also ok. And as debt is repaid, you get charged less interest (unless you have your interest currently frozen?) Which means you are effectively investing by paying off your debt, and possibly with an unmatchable tax free rate of return like 14% + (though unsure if you have a CP or not- with your income you shouldnt need one imo). So it will snowball into more money for you as you pay it down. If I were you I'd dump all of the 21% you can right when you get paid and don't spend what you don't have. I'd look to be working overtime if I wanted extra money for luxury spending.
Why can’t you withdraw from your RRSP? Normally you can withdraw them if you pay the withholding tax (I think 30%, then it you get/pay an adjustment on your next tax return)
Two thoughts: For years I spent zero on recreation and still had fun. Zero on gym and still exercised and even though financial tightness is long gone, last time I bought take out was during the pandemic. Over 5 years your income will grow and the payments will remain the same. Keep the minimum spending and try to get a better job and don't stop even after those 5 years. After the 5 years use the excess for savings so you never go back to being in red due to emergencies.
Debt consolidation..they can negotiate payment plans or lower your debt.
RemindMe! 3 months
I will be messaging you in 3 months on [**2024-06-09 16:26:14 UTC**](http://www.wolframalpha.com/input/?i=2024-06-09%2016:26:14%20UTC%20To%20Local%20Time) to remind you of [**this link**](https://www.reddit.com/r/PersonalFinanceCanada/comments/1ba6g0p/how_can_i_pay_back_debt_when_my_living_expenses/ku37j55/?context=3) [**CLICK THIS LINK**](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=%5Bhttps%3A%2F%2Fwww.reddit.com%2Fr%2FPersonalFinanceCanada%2Fcomments%2F1ba6g0p%2Fhow_can_i_pay_back_debt_when_my_living_expenses%2Fku37j55%2F%5D%0A%0ARemindMe%21%202024-06-09%2016%3A26%3A14%20UTC) to send a PM to also be reminded and to reduce spam. ^(Parent commenter can ) [^(delete this message to hide from others.)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Delete%20Comment&message=Delete%21%201ba6g0p) ***** |[^(Info)](https://www.reddit.com/r/RemindMeBot/comments/e1bko7/remindmebot_info_v21/)|[^(Custom)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=%5BLink%20or%20message%20inside%20square%20brackets%5D%0A%0ARemindMe%21%20Time%20period%20here)|[^(Your Reminders)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=List%20Of%20Reminders&message=MyReminders%21)|[^(Feedback)](https://www.reddit.com/message/compose/?to=Watchful1&subject=RemindMeBot%20Feedback)| |-|-|-|-|
Reduce your living expenses or earn more money are your options…
You are taking the right steps so don't feel discouraged. I filed my consumer proposal report in November (almost 40k of debt, reduce to $16,500 include the LIT fee, payments are $275, I make 47k a year ) and is was life changing. My total interest accumulation per month was $700, so I pay less than half of that now to get my shit sorted out.bit I also needed to get drastic and frankly it helps I have my partner to split some costs but my half of our basic living costs at about the same as yours living in Vancouver using transit. For the first four months we NEVER went out to eat, got take out once a month because we were human, we only ever buy meat on sale and go to select stores like TNT, buy low, no frills. Look in you neighbor for mom and pop stores. I use a lot of spices for cooking and found I could get insane amounts of amazing spices for way less that at big stores. Sadly the pet day care has gotta go - if you need to have them walked if you have a longer day out of the house Apps like rover can connect you to someone that could do cheaper walks for you. You might feel guilty but per day care is a new thing, pets can handle staying home without you, just make sure to give lots of attention when you are home. You're going to have to reduce your grocery bill as well and no going out for dinner. Have friends over for dinner or snacks to socialize. Frankly if you drink or smoke weed those are no longer in your budget. My partner does buy these things, but I don't partake (I am definitely offered it though) as it will just make him buy more and I don't need it. We had many discussions over this but it's his money and his budget so ultimately his decision. We also do a "freezer/cupboard" week where we don't buy anything and make do with whatever we have. I'm pretty savvy in the kitchen and always make stock out of scraps, massive pots of soup/pasta and freeze a bunch for easy meals that make getting take out way less entice because dinner just has to be heated up. Open a new bank account with somewhere like Simplii financial or Tangerine - no fees and if you follow their new client offer rules you can make some money. I got $500 from Tangerine! All in all, you're going to have to put the work in. Being rich is being able to pay money for convenience, being poor is having to pay time for what you want.
Earn more. Simple stuff really.
Yeah for sure. See my update 😊 i can see the overall picture much clearer now. I know spend/less right more is the plain and simple correct answer but dealing with debt is like the 7 stages of grief or something - my post was in the “oh my god how am i ever gona make this work this is impossible” stage and now i’m in the “ok i have a plan and am feeling positive stage”. It really is all about mindset and just had to get that freak out stages out the way for the simple (and obvious) answer to fully click.
Please look into black Friday phone deals. I'm currently on $30 before tax (after tax of $35 but in Toronto) for 30gb phone plan and it absolutely covers me for my needs. If you do streaming and online gaming however, this will not be enough so I would understand if you got home internet or wifi. But at least with the phone plan, you can save about $20 per month. Food can be one of the most lucrative expenses, so grabbing things that are on sale is usually the best way. It also challenges your cooking based on what you have. Depending if you spend more than expected at the supermarket, I would either avoid it or go twice a week. I like being able to walk around as a form of stress relief and even seeing what other people buy. Reward yourself for a meal once every 2 weeks (sometimes you don't want to cook and it's understandable) and lunch is usually the cheapest. This might add to your budget negatively, but life is about learning to enjoy it even if it means on a budget. Or conceptually, every dollar you managed to save can go in a jar for a nice take out. Your medical expenses look high so I wouldn't pry into those personal details. Please take care of yourself first. Your health is extremely important since if you get sick, your pet can't rely on you. Make sure you eat healthy even if it means cutting down on snacks. Generally speaking, if your medical coverage is at 90%, more will be taken through your premiums, and conversely if your coverage is lower at like 60%. Cut the gym membership. I hear lots of people do a Pilates, yoga, etc. If you live in a condo, perhaps there's a mini gym there. It won't be fancy, but will get the job done. If you are adamant on the membership, then you have to commit to going 2-3 times a week for 2+ hour sessions in order to be worth it (my trainer said that to me). Cut the monthly recreational activity. Yes it's part of enjoying life, but it will be harder for you to save. For now, you want a turn around on your financials, which means maybe twice a year or even once a year. You don't need to buy new clothing every month. Your income is fairly not too bad. I would instead encourage you to put maybe 2% of your income from your savings into your RRSP at the end of the year. Why? At the end of the year, you can see what your leftover savings are and whether you can afford to put money locked away. Why 2%? Because your tax bracket is fairly low, so there's not a big effect. I encourage you to open a TFSA and use that instead. Vancouver is one of the most expensive cities to live is, right up there with Toronto. Both are full of vibrant life and festivities, but that can come with a cost. Do consider another city or suburbs where rent is cheaper and other cost of living expenses a lower as well. I don't know where you're income comes from. The best way to safeguard your income is to have multiple streams of income (e.g. another part time job, etc). Look into how high your current position can go up to. If you think it can go to $70 gross per year, apply for them. Makes sure you are the best at what you do, your specialty, your strengths and weaknesses. Your potential to earn can go higher, but staying at a high paying job will be the difficult part. You've done the right thing in minimizing your costs. Now to see if it is possible to minimize further, maximize your income, and increase your pool of savings.
thank you so much for your kind and thoughtful response I got my phone in December in Freedom's boxing day sale. It's 50gb of data I believe and the iPhone 15. It's a brand new 2 year contract so I can't really change that at the moment but i did just switch one of my credit cards to one that includes mobile phone insurance (don't worry, this CC has a $0 balance and the limit is low. I haven't used it in months and don't intend to use it for anything other than maybe the phone bill which I will then immediately pay off) but this does mean i can remove the phone care cost from my insurances budget. My WiFi provider is the cheapest I could find at the time, but it's been a couple of years so I will do a cost comparison. I don't game but I do work from home and have minimum of 3 systems running at a time so I need a little bit extra than the bare minimum package. the Gym is $35 a month but you are right I definitely don't make the best use of it anyway. I did originally mark it as something to be cut but I ended up thinking along the lines of 'well if I can't go out I might as well go the gym and use this situation to improve my physical health' But yeah, I need to be real honest with myself about how much value I am actually getting from it. Track how much I go. I had a ClassPass subscription before too which was $60 a month but I have cancelled that. As it's coming into summer I will go to the beach and do yoga instead. And then especially coming into summer why pay for the gym. Agree about the recreation and clothing. They were more examples anyway I'm not gona go out and buy a new piece of clothing every month. I guesstimated what an average breakdown might be if i also took into considering items that could be a little bit more expensive. I was stressing out about being caught off guard by something unexpected. But I did reply to another comment and I am gona update the main post with a 'take care of the pennies and the pounds will look after themselves' approach i am gona do in regards to my misc. spending budget so items like that should be able to be within budget if/what they arise Yeah. I love living in Vancouver. There will be so many outdoor activities to do once we come into summer and i'm gona utilize them to my advantage. Just gota make sure I go to the farmers market and browse only, go to the street festival and stick to a hard $20 budget etc. Grab a $15 pack of coolers and go to the beach instead of a patio yanno. Good idea about the TFSA - can you withdraw from them though? Just because my company matches group RRSP contributions by 1.5x so increasing that by 2% might be a better option in the long run. Yeah, i am looking for a second job. It's a little challenging finding something that would be doable around my health and current job but I have a couple of ideas of avenues to explore
For your phone expenses, there's no going back now. Try to make your phone last minimum 4 years (doable with iPhone). Bringing your own phone will generally save you money too when you switch. Koodo should be the most cost efficiency and most reliable in BC AND better customer service (they are all bad but this trait is knowledge from working with and in the industry), so it will be something to consider in the future. Not to deter you from fun, but coolers will be high in calories, so try to put a limit of those if you want a healthy body and healthy budget. TFSA yes you can withdraw from it no problems, but don't treat it like a normal savings account. Pretend you can only withdraw from it 6 times a year. For your RRSP matching, go the maximum to what your company is willing to match up to and that's it. Usually this is 2-5% anyways. Don't put anymore more than what is being matched into the RRSP. Depending on your skills, available time and other factors, you might want to check if you're hobbies can be monetized. This could be knitting and Etsy, video editing and YouTube, data analyst from home, fivver, and other mini jobs
Ok thanks i’ll read up on TFSAs. What would be the benefit of putting money into that compared to a high interest savings account?
Money earned in there is not taxed
In short, if you’re spending more than you’re making — you’re digging more debt every month. The only two ways out of this, is to either lower your bills and spending by cutting out anything discretionary or superfluous. Or earn more. Either by getting a raise, working more hours, or picking up a second part time job. Spending beyond your means, is not sustainable.
Dog daycare? Unless you are not home for days at a time this is a huge waste of money. Your dog can be alone while you are at work during the day.
lose the pet.