I’ve read Ramit Sethi’s “I will teach you to be rich” but I probably need to re-read it or use it as a reference guide to do a bunch of stuff. I only did some of the steps in the book, like setting my credit card to automatically get paid off, but I didn’t set up auto investing or auto savings so I’m not specifically getting ahead on that stuff automatically each month.
TL;DR (Too Long;Didn’t Read): I have approx $2645 disposable income after basic living expenses and need to figure out how to spend it, split between my own investments/savings/learning and startup related savings/expenses/investments. Any tips/advice/perspective from CF readers is much appreciated. My goals are at the bottom of the post
My current monthly income and expenses + assets (All numbers in Canadian Dollars):
Net Income every 14 days: $1,717.18 (This is after taxes, union fees, and whatever goes towards the pension automatically)
Multiplied by 26 for yearly net income: $44,646.68
Divided by 30 for monthly net income: $3,720.56
Fixed Monthly Personal Expenses:
Paying for part of Mom’s living expenses: $300
Mobile Phone Bill: $56
G Suite Email: $8.74 (Have been trying to figure out how to migrate these emails and just host on something like zoho for free instead. This is for my personal blog email.)
Webdomain Registration: $2.84 (2 domains at $17 yearly)
Might add some more here to contribute more to my Dad’s living expenses.
After fixed personal expenses, that leaves $3202.98 for variable expenses
Fixed Monthly Business Expenses:
GameDiscoverCo Plus Substack Subscription: $19.32 ($15 USD - Just tried this this month, might cancel in the future but has been decent value so far for marketing stuff specific to indie games)
Domain Registration + Wix Monthly Website Hosting: $1.42 + $23.07
Annual Report Filing Fee: $3.74
After all fixed expenses, that leaves $3155.43 for variable expenses
Variable Personal Expenses/Budgets:
Groceries: $150-300 (Grocery delivery from Save On Foods, usually 1-2 times per month. I haven’t optimized this to specific lists of stuff so I probably overspend just by shopping online and adding whatever looks good. If I standardize this, I can add it to fixed expenses instead.)
Eating Out: 0-$60 (0-2 meals)
Saving: $0 (Need to increase and automate this)
Investing: $0 (Need to increase and automate this)
Philosophy Learning: $0 (Need to increase this)
Video Games: $0-150 (Varies based on some seasonal stuff and new game releases e.g. Magic Arena releases a new set every 3-4 months and I tend to preorder that for $50 USD. Maybe need to set a hard budget on this for personal discipline reasons and to force me to make more meaningful choices and not just buy every game I want and potentially having buyer’s remorse later)
After all the above 3 categories of expenses, that leaves $3005.43 to $2645.43 for variable Business expenses. I’ll go with $2645.43 for now to be a bit more conservative, especially since I have no Saving/Investing added yet.
Variable Business Expenses/Budgets:
Marketing Resources/Learning: $0 (Need to increase this)
Business Savings - for various budgets we’ll need later like hiring collaborators/freelancers, paying for PR/marketing/ads etc.: $0 (Need to increase this)
Current Assets (Personal):
Stock Investments: $11,781.56
Physical Assets: PC that cost ~$2,500 but might only sell at $1k right now, Misc. Stuff maybe worth $1,000 all together, so total $2,000 of disposable physical assets.
Current Liabilities (Personal):
I owe my mom $3k from a while ago. Can repay whenever.
Edit: No Credit Card debt (but using it to pay expenses and paying it off every month)
Applied for a personal Line of Credit but didn’t get approved. Looking for other ways to get access to more personal/business capital at better interest rates than the 22% of credit card.
Total Assets Value if Liquidated + All Debts Paid off: $10,346.98
Current Assets (Business):
Basically nothing yet.
So I need to figure out how to allocate the remaining
to maximize my goals. What are my goals/what should they be?
Current Goals that affect Financial Planning (Roughly ordered by how big I think the numbers will be):
Save towards business budget for marketing/PR/Collaborators etc. The more capital we can allocate to that, the less future income we will lose to revenue share with collaborators/loss of potential sales due to less than ideal marketing.
Save some money every month towards a personal emergency fund.
Save some money every month towards a business emergency/contingency fund.
Invest some money every month into stocks (personal).
Learn Marketing for our indie game launch around Spring 2023. Need to learn a decent amount within the next 6 months to start making our strategy and begin implementation.
Try out some new grocery foods each month from Save On Foods, probly based on Justin’s recommendations from his threads.
Buy/Play video games for fun.
Buy/Read books for fun.
Learn philosophy (secondary to learning marketing for now – No idea how much I should spend on this. Even $50/mo would feel like a lot even though it wouldn’t be relative to everything else and relative to my income. For some reason I fight really hard against most monthly expenses, even $5-10 stuff. Been feeling bad about my business email costing $8/mo for a long time now. Have to change that mindset.)
What other goals should I have? Is there anything in my budget I should reduce/cut back on for better financial health? Is it OK re: privacy to share this stuff? Are there any particular parts I should remove because they’re bad to share publicly? Also related thread: Improving Life with Money