The car maintenance look a little bit high for me, but perhaps you have new car.

But our housing costs (mortgage, taxes, insurance only) are more than your entire annual expenses. Which is about 30% of our total income.

Sorry, not inflating the numbers. I am in Stittsville. The west end is flooded with dual income, young families. There are lots of home daycares, some good, I am sure, but the waiting lists for “institutional” daycares is very long and the high demand is setting the prices. I would say we are in the top quartile of costs as our daycare is a “low ratio” daycare with services above and beyond those I’d expect from the “budget” centers (… like weekly field trips to the library, park days, and organized concerts, etc).

We interviewed 8 home daycares with openings for a 12 month old and rates were $32 – $40 / day, but I found many of them lacking the types of tools needed to give my daughter the experience I was looking for. To top that off, I was unimpressed with the 2-3 wks paid vacation (not a problem with $, more that they would be dictating when my vacation would be) and the ever looming threat of an 8am cancellation due to illness.

Unfortunately with #2 on the way, I see some belt tightening occuring for the next couple of years.

Our 3 biggest expenses by far are the mortgage (aggressively paying that down), RRSP/RESP contributions and child support payments. In after tax terms, they total about $65k. Hopefully we’ll be able to find some money to take full advantage of the TFSA program.

Next year we might have to replace one vehicle – we’ve enjoyed over 6 years without car payments. That will be an unwelcome change – the car payments that is, not the newer car!

It was 2 years ago when we finally purchased the last bit of furniture for our house so we don’t expect any major household purchases for a long time.

I use Vbuzzer for a ‘landline’ phone. It is a VOIP service that gives me a 416 area code number to be able to dial and receive calls (our cell phone numbers changed too often and this makes it easier to have a constant number). It costs just over $5 per month and the quality is excellent (I did get a hardware device to help with the quality – it cost me $10.)

Since we go on vacation each year, that to us is also a recurring expense. I’d say that it runs anywhere from $2,500 to $6,000 per year.

Our gifts expenses are significantly higher. Two teenagers and parents that live far away (thus causing us to buy them airline tickets so they will come and visit us) probably mean we are closer to $3,000 per year.

Other than that we are pretty much in line with what you have.

In my case, its not. We rent a big house here in the Philippines (as we don’t expect to live here for life) and so its not a huge expense for us. We probably spend more money on grocery (foods) and 2nd only the monthly rent payment. However, I do expect too that our expense might also be biggest on mortgage once we start living on our own.

I’m not suggesting keeping a tight budget record, as it takes a lot of time, just that there are a LOT of expenses we have which we do not record, and then forget about.

The real test is income – savings = expenses!

DAvid

One cheaper alternative to daycare is if Ft’s parents are retired and decide to keep their legacy by taking care of the granddaughter/son. That’s what my parent’s did to me and I turned out ok..I think..

Car insurance seems really good for two people…..

Great blog post…very interesting…

Ugh, childcare is expensive! Anyone read the recent articles about google’s changes to their on-site childcare provisions in CA? We have an acquaintance out there going nuts over it, although he can afford it.

As Chuck figured out I was going with a balance sheet/ income statement approach with suggesting only counting interest for the mortgage. If you’re doing a cash flow statement, then including the full mortgage payment makes sense, but then you should also include other debt payments (commercial mortgage, HELOC, etc) and money spent on investments, both registered and non-registered.

James,

I’m in Ottawa as well with two young children. Pleeease tell me you’re inflating those numbers.

At home care ranges from $ 32- $ 40 per day pretty much regardless of age, but there are very few that take 12 – 18 month olds as there are strict provinical limits on the number of children under care.

Institutional daycares vary as well, but are more expensive. Our daycare is at the higher end

12 – 18 Months = $57 / day
18 – 30 Months = $49 / day
30 Months + = $40 / day

You pay 5 days a week, 52 wks per year (you pay for holidays, sick days, etc).

As for child expenses, I found that consumables (diapers, vitamins, formula – not breastfeeding) worked out to be about $14 / day for the first year. Dropping off quickly after that. By 2, each kid is only about a 20% adder to the avg adult costs.

Where are your non-perishable consumables recorded, in groceries? (i.e. paper products, cleaning supplies, personal care products, etc). If they are in groceries, I am surprised that $500 / month covers it, even for 2 people. We have a 3 year old, eat a well balanced diet, and spend $1300 / month on those items, food, and eating out.

Also with kids, clothing expenses are high, even if you get lots of donated/discounted items. RESPs are after tax, so I consider them expenses. Then there are endless classes and groups to join. It isn’t cheap. If you get away with $200 / month on top of the $14 / day, you are doing VERY well.

FP, great point about the landline and emergencies. I never thought of that.

Mike

Our 6 year old was $195/wk in a daycare near her school, which includes transport to/from school. Since she’s now full days its dropped to $95/wk.

We have friends in Toronto paying over $300/week.

As to the question about considering only mortgae interest as an expense. Would you consider this statement as cash flow, or profit and loss. It looks more like cash flow to me. Though we’re splitting hairs here.