How much money do you put aside for...

[MommaL]

I'm just wondering how much money people put aside each month for retirement savings, disability benefits, extra home insurance, CPP contributions, income tax and savings for slower months? I'm worried that after putting money aside for all of these things, I'm not going to have any leftover for my regular monthly bills and groceries. Yet, if I don't save any money or have extra insurance, I might be in financial crisis down the road. Help!

[mickyc]

I wish!! I have starting paying CRA $20 every pay towards my 2015 taxes. I have been doing it for about 4-5 pay days now. I pay it directly to CRA now so I don't spend it. Other than that no savings. I am down one kid right now so we just tighten the belt a bit and hope it doesn't last long.

[5 Little Monkeys]

It varies month to month depending on our other bills and entertainment but make sure you budget something for things like these!!! This business is inconsistent and IMO, it's silly not to have savings. Mine is sometimes lower than I'd like but there's always something there. I try to have $2000-2500 saved for tax time but last year I was able to pay no taxes, just my cpp and EI which was awesome. I pay my taxes right away so I don't pay interest....they're already getting my money, they aren't getting the interest!! Lol. Any money left in my account the night before new dc payments are due gets transferred to my savings too. I also use my savings for my holidays.

IMO, the ones that don't last long in this business are the ones who don't have a decent amount to fall back on from time to time. We never know how long a spot will be open for and if I have low savings, it stresses me out big time! We are like any other small business owner, we always have to have plan B ...and C...and so on lol.

Good luck!!

[Suzie_Homemaker]

I'm just wondering how much money people put aside each month for retirement savings, disability benefits, extra home insurance, CPP contributions, income tax and savings for slower months? I'm worried that after putting money aside for all of these things, I'm not going to have any leftover for my regular monthly bills and groceries. Yet, if I don't save any money or have extra insurance, I might be in financial crisis down the road. Help!

I not make enough money for savings, benefits or anything else you mentioning. I set aside income from one child for CPP and taxes.

As for slower months, there not enough income from this job for those either. I luckier than some. My husband semi-retired now and his income pay for our bills and our mortgage paid off long time ago. But if we had mortgage or if my daycare had pay for our day to day living, we would be in trouble in slower month.

This unpredictable income. Someone can leave with no warning. Vacancy can sit for long time. For me, I very picky about my client and often not take parent who wanting to come due to them thinking hours negotiable or being wrong personality type.

It depend on where you are and what daycare fee is but around here, fees are $35 without food and milk and so after expenses, there not spare money for saving. On average year, with just one vacancy maybe sitting for 4-6 weeks, I barely make min wage so no pension or saving from my earning.

[5 Little Monkeys]

Suzie...that's smart to aside one child's fees for tax time!

[MommaL]

Oh dear, I'm starting to worry. So no one has disability insurance or retirement savings? I'm not so much concerned about the present, but if anything ever happened to me (e.g. an illness or injury) that prevented me from working, I don't know what we would do - especially since we still have a mortgage and rely on my income as well. Plus, at some point, I would like to retire - though that's still a long time away.

[5 Little Monkeys]

I choose to pay into EI and RRSP's plus we all pay into CPP at income tax time, both the employer and employee portion

We are fortunate enough to be mortgage free but still a long ways away from retirement. Right now we are able to enjoy jobs we love because our debt is pretty non-existent and our monthly expenses are within our means. If it wasn't like this though, I honestly don't know how we'd make it...this job is one I love and hope to do forever but the long term finances of it do worry me from time to time

[mickyc]

I pay into EI as well although it wouldn't be much if I ever had to collect. We also have insurance on our mortgage so if I was off work due to illness or injury then half my mortgage payment would be covered.

Retirement.... Hmmmmm I doubt I will ever retire. We spend too much! Lol

[Crayola kiddies]

I pay into an rrsp , and 2 resps for my kids, plus i pay $150/month to rev can for my taxes so that come tax time i dont have such a huge amount owing ......i also have life ins..... and TFSA....is tough

[torontokids]

How do you set up the monthly payments to the CRA? I wanted to do this, this year but forgot to ask my accountant.

To answer OP- I have savings set aside for tax time. I basically have a separate account for my business (it is just another PC Financial free account) where all their payments and deposits go. I have a "pay day" for myself where I withdraw a set amount biweekly. The rest remains in the account for taxes and to pay my DC mastercard which is what I use for all DC expenses/groceries. I stopped RRSPs last Dec as we needed the money and I never started them up again. I'm not concerned though because this isn't my career and I will start contributing again in the spring. I have life insurance and EI.