{"id":7490,"date":"2013-03-06T13:00:48","date_gmt":"2013-03-06T18:00:48","guid":{"rendered":"http:\/\/canadianbudgetbinder.com\/?p=7490"},"modified":"2025-02-20T11:58:03","modified_gmt":"2025-02-20T11:58:03","slug":"february-2013-canadian-budget-binder-budget-update-2-big-ticket-expenses-hurt","status":"publish","type":"post","link":"https:\/\/digitalskyweb.co\/canadianbudgetbinder.com\/2013\/03\/06\/february-2013-canadian-budget-binder-budget-update-2-big-ticket-expenses-hurt\/","title":{"rendered":"Big Ticket House Expenses Hurt Our February 2013 Budget Update"},"content":{"rendered":"\n

February 2013 is a month we hope to forget but also learn from as our budget took a right hit, coming out into the negative. <\/p>\n\n\n\n

When Stuff Breaks Around The House <\/h2>\n\n\n\n

As you already know, we had our water softener go belly up, and I had to replace that to the tune of over $1100. <\/p>\n\n\n\n

The good thing is I received Sears points and Canadian Tire MasterCard rewards points, as well as having 90 days to hope the unit goes on sale for less than $899.99. <\/p>\n\n\n\n

That way, I can go to Sears and adjust the product price<\/strong><\/a><\/span>. <\/strong><\/p>\n\n\n\n

We also had Union Gas around to change our old meter to a new, updated meter, so I’m guessing we can expect higher bills from now on. <\/p>\n\n\n\n

Over time, the older meters don’t read correctly; hence, Union Gas wants to change them. It was good while it lasted.<\/p>\n\n\n\n

We also increased our telecommunications bill, which I will touch on later in the blog post. <\/p>\n\n\n\n

‘Let’s see, we had to pay city taxes, our electricity and water bill every 2 months. <\/p>\n\n\n\n

I noticed a spike in our water bill, and once I get the next bill, I should be able to pinpoint why, and I’ll blog about it. <\/p>\n\n\n\n

The water bill was higher than in August 2012 when we were out watering the garden almost every day, more so when the water barrel was empty.<\/p>\n\n\n\n

Our Reliance bill<\/strong> increased slightly every 3 months, which they informed us about in December. <\/span><\/p>\n\n\n\n

Although most of these expenses came from projected expense accounts, we still have to set aside our $1282.90 for projected expenses for 12 months of the year. <\/span><\/p>\n\n\n\n

The water softener was counted under home maintenance, a projected expense (thank goodness). <\/span><\/p>\n\n\n\n

Using Our Line Of Credit <\/h2>\n\n\n\n

Just having this happen in one month was eye-opening, as the water softener is the third major expense since we bought our home. <\/p>\n\n\n\n

If we didn’t have the money set aside, guess where we would have to get the money from: the line of credit.<\/p>\n\n\n\n

The line of credit is something we have and vow never to use unless everything goes well. How can I say this nicely, up Caca Creek without a paddle? <\/p>\n\n\n\n

This is why we started saving projected expenses in the first place. <\/p>\n\n\n\n

Besides that, we used up our stockpile budget this month and came under in grocery and petrol (gas) for the vehicle.<\/p>\n\n\n\n

How We Budget Our Monthly Expenses<\/h2>\n\n\n\n

Below are links to the budgeting series<\/strong> I wrote while designing our spreadsheet. <\/p>\n\n\n\n

Per my disclaimer<\/a><\/strong>, I’m not a financial planner\/advisor, so I can\u2019t tell you how, but I can show you what we did for us. <\/p>\n\n\n\n

Like everyone else, I’m just a regular guy; some might call me a budget nerd.<\/p>\n\n\n\n

I love seeing money grow and where it has gone. <\/p>\n\n\n\n

Please take the time to read through the budgeting series. I hope you take something away from the information.<\/p>\n\n\n\n

    \n
  1. How We Designed Our Budget Step 1<\/a>– Gathering All the information<\/strong><\/li>\n\n\n\n
  2. How We Designed Our Budget Step 2<\/a>– Categories<\/strong><\/li>\n\n\n\n
  3. How We Designed Our Budget Step 3<\/a>– Tracking Reciepts<\/strong><\/li>\n\n\n\n
  4. How We Designed Our Budget Step 4-<\/a> Note-taking<\/strong><\/li>\n\n\n\n
  5. How We Designed Our Budget Step 5<\/a>– 5S Organization<\/strong><\/li>\n\n\n\n
  6. How We Designed Our Budget Step 6<\/a>– Who Does What and When?<\/strong><\/li>\n\n\n\n
  7. How We Designed Our Budget Step 7<\/a>– Balancing Our Budget<\/strong><\/li>\n\n\n\n
  8. How We Designed Our Budget Step 8<\/a>– Knowing our Coupon Savings<\/strong><\/li>\n\n\n\n
  9. How We Designed Our Budget Step 9<\/a>– Reading Our Bills<\/strong><\/li>\n\n\n\n
  10. How We Designed Our Budget Step 10<\/a>– Projected Expenses<\/strong><\/li>\n<\/ol>\n\n\n\n

    Click this link if you want to see a sample of a budget sheet>>> Finances+Budget= Success Formula<\/strong><\/a><\/p>\n\n\n\n

    Changes To Our February 2013 Budget<\/h2>\n\n\n\n

    The only monetary change to the budget this month was to Rogers, who, like usual, increased their prices, shocked. <\/p>\n\n\n\n

    I’m not complaining as I do like to watch the television, but sometimes what you believe is a contract price isn’t a contract price. <\/p>\n\n\n\n

    Read the fine print and always adjust your budget accordingly. <\/p>\n\n\n\n

    Don’t get me started on how we are getting cained (that’s the polite way of saying it) on cell phones in Canada. <\/p>\n\n\n\n

    It’s likely a good reason I don’t own one, but there is not much I can say for the wife. <\/p>\n\n\n\n

    There was also a slight change in the price of our water tank from Reliance. All the categories are up to date.<\/p>\n\n\n\n

    February 2013 Monthly Overview<\/strong><\/span><\/h2>\n\n\n\n

    This adds up to 87.46% as it does not include our projected expenses because it\u2019s not savings, and it hasn’t been spent yet. <\/p>\n\n\n\n

    We aim to save at least 50% of our net monthly income and live from one income. <\/p>\n\n\n\n

    This is just an artificially high month as everything came out at once in housing, which was saved in projected expenses. <\/p>\n\n\n\n

    Our savings of 12.54% include savings and investments.<\/p>\n\n\n

    \n
    \"Feb<\/figure>\n<\/div>\n\n\n

    CBB February 2013 Budget Breakdown<\/strong><\/span><\/h2>\n\n\n\n

    We have 3 Canadian bank accounts, and our chequing account is with President\u2019s Choice Financial. <\/p>\n\n\n\n

      \n
    1. Chequing<\/strong>– This is where all the bills get paid from.<\/li>\n\n\n\n
    2. Emergency Savings<\/strong>– This is where our Emergency money sits.<\/li>\n\n\n\n
    3. Savings<\/strong>– This account holds money for projected expenses.<\/li>\n\n\n\n
    4. Monthly Budget Total<\/strong>: NEW $4679.79 OLD (JAN)-$4675.94 $3.85 difference<\/strong><\/li>\n\n\n\n
    5. Monthly Net Income Total<\/strong>: $6447.45<\/strong><\/li>\n\n\n\n
    6. Total Coupons<\/strong> Used<\/strong> (includes points redeemed, big box store coupons, not just grocery coupons:=$85.63
      <\/strong>Projected Expenses: These are expenses we know we will pay for throughout the year and save monthly for = $1282.90<\/strong><\/li>\n\n\n\n
    7. Total Expenses Paid Out<\/strong> Calculated is $6447.45 <\/strong>(total monthly income) \u2013$0 (<\/strong>total monthly savings)\u2013Projected expenses $1282.90<\/strong> = –$474.74<\/strong><\/span><\/li>\n\n\n\n
    8. Actual Cash Savings Going Into Emergency Savings Funds<\/strong>: $0<\/strong><\/li>\n\n\n\n
    9. Calculated is $6447.45 <\/strong>(total monthly net income) \u2013 $5639.29 <\/strong>(actual expenses paid out for the month)\u2013$1282.90 <\/strong>(projected expenses) = –<\/span><\/strong>$474.74<\/strong><\/span><\/li>\n<\/ol>\n\n\n\n

      Net Income, Savings and Expenses<\/h2>\n\n\n
      \n
      \"Feb<\/figure>\n<\/div>\n\n\n

      PE<\/strong> = Projected<\/a><\/strong><\/span> Expense is money automatically saved each month, ready for when the bill comes in, or you need it, as in the example below.<\/span> <\/p>\n\n\n\n

      We review our projected expenses at the beginning of the year to set up our yearly budget.<\/p>\n\n\n\n

      As we go along, we adjust the numbers if a new projected expense arises and needs to be added to the budget. <\/p>\n\n\n\n

      This has happened many times, but it\u2019s bound to happen as we can\u2019t predict everything we must pay for the year. <\/p>\n\n\n\n

      The important part for us is that we are saving for the expenses and no longer have to stress about taking money from our savings to pay for them.<\/p>\n\n\n\n

      For example<\/strong>,<\/strong> for clothing<\/span><\/span>, we budget $50 per month. If we don\u2019t spend it, we move it to the projected expenses account. <\/p>\n\n\n\n

      This means we should have $600.00 per year to spend on clothing. We have to track that expense as we spend it.<\/p>\n\n\n\n

      Budget Breakdown February 2013 <\/h2>\n\n\n
      \n
      \"Big-Ticket-House-Expenses-Hurt-Our-February-2013-Budget-Update\"<\/figure>\n<\/div>\n\n\n