2017 was a mixed bag of feelings. Between the joys of travel (a post on my trip to Japan in April is coming soon…), a new job, and starting this blog in June, the year was also mixed in with some sadness. The passing of my girlfriend’s father at 65 particularly stands out as a moment that kickstarted me on starting this blog.
From a financial perspective, 2017 was a good year with some great milestones:
- Increased annual savings rate from 54.89% to 62.42%. Using Networthify’s FIRE calculator, that means I could conceivably FIRE in 8 years assuming a 5% return on my portfolio.
- Increased net worth by $41,662.67 from $104,243.13 to $145,905.80
- Increased passive income (interest and dividends) by $540.09, from $2127.21 to $2706.16
- Reduced annual spending by from $31,014.69 to $30,390.64. For as small of a decrease that is, I’m very pleased. Anytime you can decrease your spending, especially living in the increasingly expensive downtown Toronto, you’re good! What did that look like?
2017 – My Spending
| Car | $4,273.00 | Please don’t guilt me. |
| Car Insurance | $2,002.84 | |
| Car Maintenance | $536.02 | |
| Car Parking | $970.80 | |
| Gas | $763.34 | |
| Cash | $143.40 | Who uses cash? |
| Charity | $200.00 | |
| Clothing | $437.12 | This will go up in 2018. |
| Coffee | $214.72 | Switching to tea in 2018. |
| Education | $983.10 | Improv lessons |
| Entertainment | $1,739.62 | |
| Dating | $1008.77 | |
| Friends | $588.96 | |
| Professional | $236.28 | Networking lunches and the like. |
| Fitness | $729.97 | This will decrease in 2018 as I’m switching gyms |
| Food | $3,331.61 | |
| Groceries | $1,141.98 | |
| Restaurants | $2,189.63 | Ouch! Not proud of it. |
| Gifts | $1,016.46 | Nephews keep increasing these costs. |
| Grooming | $260.08 | Haircuts are expensive in Toronto. |
| Internet | $264.68 | |
| Laundry | $76.27 | |
| Medical | $15.17 | This will increase in 2018 as my benefit plan has changed. |
| Phone | $542.40 | Bare bones plan! |
| Rent | $10,251.00 | Who said living in Toronto had to be expensive? |
| Supplies | $407.05 | |
| Transit | $213.00 | Will increase in 2018 as I am now taking the train for 7 minutes to work. |
| Travel | $5,109.71 | Increased by $1000 over 2017, but worth it. |
| Japan (3 weeks) | $3,690.81 | |
| Rhode Island/ Boston/ Cape Cod | $1,418.90 | |
| Website | $47.88 | Hi! |
| TOTAL | $30,390.64 | |
| TOTAL minus “Optional” spending, such as travel, education, and charity | $24,097.83 |
The “barebones” figure of $24097.83 is even lower than I expected for living in downtown Toronto. Averaged over 12 months, that means if I really cut back I could live on $2008.15 a month. Imagine if I got rid of my car!
Living in downtown Toronto on the Cheap-ish in 2017 – How I did it.
#1: I still live with a roommate.
Sure, we have minor disagreements on cleanliness, but it’s an arrangement that’s working out well for the both of us. Plus, he pays more because he wanted the bigger room.
#2: I try and keep entertained with all the free/cheap things in the City.
Parks. Movies on discount Tuesdays. Free outdoor culture activities. Museum library passes. Toronto is full of cheap and free things with a little effort.
#3: I don’t upscale my life very much.
Despite moving into a higher income bracket, I still don’t purchase drinks when I go out to eat. I still drink mostly water at home, I walk almost everywhere, and all the furniture in my room is mostly taken off the side of curbs.
2018 is going to be much of the same. I anticipate I will probably start spending more money on clothing (overdue for some major shopping of work attire) and transit (commuting to work now), but I’m hoping I can keep next year in line with this year.
My point of pride continues to be keeping costs low while increasing my savings rate.
I hope 2017 has been kind to you and best of luck in 2018!
Great year! Well done, spectacular savings rate. Keep that up in 2018.
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Thanks for reading!
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