So now that I’m down to a much more reasonable workload I’ve already started feeling better about life. Yet my election lose does trigger a few changes with regards to our spending and saving habits. After all you can’t take that much income out of a budget without some kind of fallout.
The first change we made almost immediately was we told our house cleaner her services were no longer required. That luxury was really a way to deal with our time crunch with me working so much, but now that I have my time back I would rather spend the money elsewhere. So that puts $240/month back into our pockets.
The next change that I’m going to do is shift back to full time by the start of 2013, so I’ll lose 26 days off a year. Now when I say full time that sounds like I’m working a lot, but I’m still really going to have a fair bit of time off. After all my 13 earn days off every year used to almost exclusively go to take time off for school board events, so that is back in my pocket. I also get four weeks of vacation on top of that. That should bring in about an extra $450/month take home (give or take a bit – estimating taxes is always a bit tricky).
So if you then add that to my old mortgage payment, lump sum payments and pension contributions we should be able to save (then invest) about $4000 per month to my goal of early retirement. Then that will leave enough leftover cash to cover most of our wants for 2013 including my wife’s new cork floors in the kitchen and our vacation.
My initial investment plan is fairly simple, build up some cash reserves to be able to deploy to investments when I come across a good deal. Besides I’m thinking about some adjustments to my holdings like dropping our mutual funds in our RRSPs and switching to ETF in self directed accounts.
In order to start simulating how I want to structure our finances when I finally do retire early I’m going to be pulling the cash for our extras in life (the new floors and the vacation) from our business accounts. That should give us both some motivation to do some work with our business yet at the same time put us in a position if we are earning less it won’t change our day to day lifestyle.
Have you ever had a big shift or fallout happen in your life? What did you change right away and what did you wait to change?