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Vancouver Off-Topic / Current EventsThe off-topic forum for Vancouver, funnies, non-auto centered discussions, WORK SAFE. While the rules are more relaxed here, there are still rules. Please refer to sticky thread in this forum.
110k seems awfully low for a lawyer. That's what lawyers working for the Attorney General or the Department of Justice get paid with a defined benefit pension and none of the pressure to bill clients. She could probably be chief counsel for some company and make more than that.
Willing to sell a family member for a few minutes on RS
Join Date: Apr 2011
Location: North vancouver
Posts: 12,549
Thanked 32,163 Times in 7,478 Posts
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I'd take whatever job the easy one is if my only living expenses were half a tank of gas, my cell phone students plan and 2 dinners out a month, regardless of the pay drop.
__________________
98 technoviolet M3/2/5
Quote:
Originally Posted by boostfever
Westopher is correct.
Quote:
Originally Posted by fsy82
seems like you got a dick up your ass well..get that checked
Quote:
Originally Posted by punkwax
Well.. I’d hate to be the first to say it, but Westopher is correct.
This one is the most depressing one I have ever read.
The girl eats out everyday but then finishes off with "I do put money in my savings account sometimes. I’m trying to one day save up enough money for a bed frame so I don’t have to sleep on a mattress on the floor.”
The decision between a fixed and variable rate is a tough one in this market - rates are so low that it's hard to imagine anywhere but up, but on the other hand, if you are just buying your place, the effects of rate on your first few year's payments is absolutely insane.
When we bought in October 2015 ($382K mortgage, 25yrs) our choice in rates for a 5 year term were: variable 2.00% or fixed 2.59%. I did this math before choosing variable:
Bunch of geeky math:
Spoiler!
Fixed Rate Option:
Monthly Payment: $1,731
Balance after 5 years of payments: $323,992
Variable Rate Option:
Monthly Payment: $1,619
Balance after 5 years of payments: $320,059
As you can see, not only are the payments lower, but those lower payments also still pay off more of the mortgage. At the end of the 5 years, I would have paid $6,717 less in monthly payments and have paid off $3,933 more of my mortgage, making me $10,650 better off overall.
However, variable is not a guarantee, so the question is how long do the rates stay at 2.00% and what happens if they don't?
From my calculations, if my rate stayed at 2.00% for the first year, then it would have to go up to 2.75% in year 2 (and stay there for the remaining years of the 5 year term) to make me indifferent to these options.
If my rate stayed at 2.00% for the first two years, it would have to go up to 3.00% in year 3 (and stay there until end of term) to be equal over the 5 years.
If I manage to get 3 years at 2.00%, then it would have to go all the way up to 3.50% in year 4 for me to be equal.
As is intuitive, the impact is much bigger earlier on. The reality is there is no likely scenario where the rate goes from 2.00% to 3.50% overnight, it's much more likely to be a gradual increase as the economy improves, however, for the sake of simple math this is the easiest way to visualize it for me.
At the end of the day, for me seeing that in my opinion, the Canadian economy will not support an increase in interest rates until at least a year after the US and knowing how sensitive the first 5 years of the mortgage are to interest rates, I chose variable and would again if I was doing it now. 5 years in, the question might be very different though.
Mark
__________________ I'm old now - boring street cars and sweet race cars.
This one is the most depressing one I have ever read.
The girl eats out everyday but then finishes off with "I do put money in my savings account sometimes. I’m trying to one day save up enough money for a bed frame so I don’t have to sleep on a mattress on the floor.”
Her April budget includes $180/month for Christmas presents... WTF.
Mark
__________________ I'm old now - boring street cars and sweet race cars.
Willing to sell a family member for a few minutes on RS
Join Date: Apr 2011
Location: North vancouver
Posts: 12,549
Thanked 32,163 Times in 7,478 Posts
Failed 211 Times in 159 Posts
Gotta get the 2k needed for christmas presents somehow.
Crazy thing here is, the girl who makes barely enough to live is saving her money to give to her friends and family, and the girl who makes more than enough to support herself is essentially taking what equates to 10x that a month from her family for living expenses.
Jesus people, find a happy medium.
__________________
98 technoviolet M3/2/5
Quote:
Originally Posted by boostfever
Westopher is correct.
Quote:
Originally Posted by fsy82
seems like you got a dick up your ass well..get that checked
Quote:
Originally Posted by punkwax
Well.. I’d hate to be the first to say it, but Westopher is correct.
These articles make me totally curious to see what everyone's budget is and how they allocate their funds - doesn't need to be exact numbers can be percentages based on income.
Might be interesting to see how similar (or different) we all are.
Willing to sell a family member for a few minutes on RS
Join Date: Apr 2011
Location: North vancouver
Posts: 12,549
Thanked 32,163 Times in 7,478 Posts
Failed 211 Times in 159 Posts
We spend SO much money on food, but it also counts as "entertainment" budget in my mind. When we really make a real dinner at home its not a cheap endeavour either.
__________________
98 technoviolet M3/2/5
Quote:
Originally Posted by boostfever
Westopher is correct.
Quote:
Originally Posted by fsy82
seems like you got a dick up your ass well..get that checked
Quote:
Originally Posted by punkwax
Well.. I’d hate to be the first to say it, but Westopher is correct.
If anyone needs a reason to kill themselves today.....read this LOL How a Vancouver lawyer spends her $110,000 income - Vancouver Magazine
Now here, is the definition of living off of your parents like a leech, as opposed to a parent helping their children. Imagine advertising that shit?!
Any true asian parent would disown their child for giving them a $200 allowance when they make $110k
As I've said before, a few different friends of mine work in weath management for the big banks and have some very big books to manage
They both say that there is a huge factor of people who make rediculous dual annual incomes who couldn't buy a 2005 Honda Civic in cash if their life depended on it.
Doctor/lawyer, doctor/dentist combos who have no savings and pay $12,000 in bills a month on mortgage, two vehicle leases, country club memberships, dinner parties, etc
These types of situations they say make up a good chunk of these high income earners, especially the ones who come to them looking for advice on asset management
__________________
Dank memes cant melt steel beams
^those professions don't really warrant it but there are plenty sales/marketing professionals who live beyond their means to impress potential/existing clients. For some, it's the cost of doing business.
Problem for many is they selfishly do it in excess and end up with nothing but memories by the time they're considering retirement.
__________________
If you drive like an asshole, you probably are one.
Quote:
Originally Posted by MG1
punkwax, I don't care what your friends say about you, you are gold!
As I've said before, a few different friends of mine work in weath management for the big banks and have some very big books to manage
They both say that there is a huge factor of people who make rediculous dual annual incomes who couldn't buy a 2005 Honda Civic in cash if their life depended on it.
Doctor/lawyer, doctor/dentist combos who have no savings and pay $12,000 in bills a month on mortgage, two vehicle leases, country club memberships, dinner parties, etc
These types of situations they say make up a good chunk of these high income earners, especially the ones who come to them looking for advice on asset management
Look at the oil patch workers who came home with nothing to show for years of six-figure incomes. It's mind-boggling how one can blow that much money on toys, vacations, and recreational drugs without putting anything aside for a contingency or investment.
Just because you can recite a few books doesn't mean your smart with life. I know a few med school grads who are farther in debt then I could ever imagine.... And not because of their tuition.
has there ever been a more uncertain time to get in?
It ain't like you might lose 20k in value, there's a real possibility you could lose 100k in the next couple years if you bought in the last year or so.
Well back when mortgages were 20%, I'd say that was a pretty rough time to buy too. But many still did, and not just 1 house, and are also realizing these gains in recent years by seeking their 2nd/3rd houses and cashing in. They put in the hard work during the rough times to make it work, took the risk at a seemingly poor time to buy, and you can call them lucky all you want that the market has risen astronomically over the past 5 years.
Quote:
Originally Posted by IGTBAR
These articles make me totally curious to see what everyone's budget is and how they allocate their funds - doesn't need to be exact numbers can be percentages based on income.
Might be interesting to see how similar (or different) we all are.
First 5 years of our marriage we budgeted $300 a month on food; groceries and eating out. We lived comfortably but not extravagantly, never had to resort to KD or instant noodle meals. We're both frugal, buy groceries based on what's on sale vs what we were craving at that moment. Usually ate out at a fancy places couple times a year for special occasions
We spend SO much money on food, but it also counts as "entertainment" budget in my mind. When we really make a real dinner at home its not a cheap endeavour either.
You can save money by cooking, but if you want to eat well at home, it can cost serious money.
We like wild salmon and when they were on sale last month, we bought over 10 to keep in our chest freezer so that we could eat one per week over the summer months. Even though they were on sale, they weren't cheap at about 12-15 bucks per fish. Well worth it the price though.
It's the same if you eat lots of red meat or a bottle of wine once or twice per week (even cheap South American wineries). Even coffee gets expensive. We don't buy a lot of coffee when we're out as we like to make it at home, but we buy good quality beans (Ethical, SaltSpring Island) and make it on the French press every morning to take to the office. Stuff adds up fast. When we decided to commit to a Costco membership, it was both a blessing and a curse.
We spend about 12% of our monthly budget on food and dining out.
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