At 33, this nurse practitioner earning $120,000 a year wants to make a huge life change and move to Europe. But where to start?

Millennial Money is a weekly submission-based sequence that gives monetary recommendation to millennials within the GTA. Read the full series here.

After months on the entrance strains in the course of the pandemic, nurse practitioner Chloe, 33, is wanting to make a large change and move to Europe.

“My objective is to grow to be financially impartial since my objective is to reside in Europe,” Chloe says. From there, she wants to begin a enterprise and different entrepreneurial initiatives, whereas renting out a house she simply bought in Toronto.

Earning $120,000 a year, she’s assured she will be able to save up to make her goals a actuality, however the stresses of her on a regular basis job have her in search of a little assist from Millennial Money.

Despite a excessive earnings, Chloe spent most of her 20s paying off faculty debt — round $50,000 with the prolonged training to grow to be a nurse practitioner. With all of the OSAP now paid off, she’s wanting to begin saving, however has not too long ago made investments that haven’t carried out very properly.

She’s staying constructive, hoping to flip her failed funding expertise into a studying alternative. To save much more money, she’s taken on a digital job as well as to her full-time profession.

In a typical workday on the hospital, Chloe says she doesn’t normally carry lunch. “I normally attempt to eat a large breakfast earlier than going to work, and at work might snack on varied objects all through the day — chips, muffins, cookies, croissants.” After a 12-hour shift, dinner is normally takeout.

On her days off she balances work with time with mates and household. “Now that extra locations are opening up, I’m beginning to head out to extra eating places and patios throughout this time.”

With a mortgage to repay, Chloe is questioning: what’s one of the simplest ways to get her funds so as and move throughout the pond?

We requested her to monitor her each day funds to get a higher thought.

The skilled: Jason Heath, managing director at Objective Financial Partners Inc., on Chloe’s funds:

  • Based on Chloe’s wage and take-home pay, I’m guessing she is in a pension plan, like most Ontario nurse practitioners. That means she is saving for retirement with every paycheque and pension contribution. It additionally means she doubtless has little to no RRSP room as a result of pension plan members have pension changes that scale back their skill to contribute to a RRSP.
  • TFSA contributions are a good possibility for her financial savings given she might have money to fund her move to Europe and the start-up prices for a potential enterprise endeavour. However, relying on her danger tolerance and house fairness, making additional funds towards her mortgage could also be a good various. If she is a conservative investor, she might have a arduous time investing in her TFSA at greater than the 2-Three per cent she is probably going paying in mortgage curiosity. GICs and funding grade bonds are paying properly below 2 per cent, so except she goes to have a good allocation to shares and low funding charges, paying down debt could also be price contemplating together with her additional money stream. If she has a good quantity of house fairness, she might find a way to borrow in opposition to her house fairness sooner or later for her enterprise start-up prices or for her move overseas.
  • If she strikes away and rents her house, that could possibly be an possibility for her. She will nonetheless have to file Canadian tax returns for her rental earnings, however could also be thought of a non-resident and be exempt from Canadian tax on her earnings in Europe. That wouldn’t imply she’d be off the hook for paying tax on her European earnings, as she might have tax to pay in Europe. As she will get nearer to contemplating a move, she ought to take a look at the tax charges and value of residing within the nation or international locations she is contemplating, to give you a monetary recreation plan for her move.
  • I word Chloe has no automobile funds. Lease and mortgage funds can considerably restrict money stream. Buying barely used as a substitute of latest or driving a used automobile a little longer can make a larger distinction in your price range than forgoing avocados.
  • I see she has incapacity premiums deducted from her paycheque, which is nice. Canadians are sometimes uninsured or underinsured in opposition to incapacity, a danger that may devastate even probably the most fiscally accountable saver.
  • Chloe’s restaurant price range is twice that of her grocery spending, so if she is on the lookout for someplace to lower, that might be it. She admits to shopping for lunch and snacks most days at work and consuming out is a frequent a part of her weekend leisure. When you price range, you don’t have to spend as little as attainable in any respect prices. But it helps to see where you’re spending a bit additional so you recognize where you can lower in the event you wished to or had to scale back spending. Regardless, it appears like Chloe is on a good trajectory with some thrilling medium-term targets.

Results: She spent extra. Spending in Week 1: $550.82 Spending in Week 2: $620.03

How she thinks she did: “It’s actually fascinating to see that I spend a lot money on consuming out, but additionally a lot of money on grocery!” Chloe says after analyzing her two weeks. “I’m not spending all of my very own money on these items, however I do assume there’s room for enchancment,” Chloe provides. Her boyfriend moved in in the course of the pandemic and has been serving to with meals bills.



Another factor she has come to notice? It’s arduous for her to break her habits even throughout a pandemic. “My spending for the time being could also be on par with regular occasions, though extra money might have been spent on concert events, festivities and holidays if not for COVID.”

Take-aways: Before Heath’s recommendation, Chloe was actually making an attempt to slim down where she ought to put her additional money stream first. Down cost for a new enterprise enterprise/funding rental? Stocks? An emergency fund?

One factor she hadn’t thought of: “Mortgage reimbursement with the additional money stream,” she says, studying Heath’s recommendation.

Now she’s making an attempt to decide what works finest.

More philosophically, the Millennial Money problem has given her a refreshed sense of goal.

“I believe high quality of life is actually vital, and given my career, I notice how brief life could be. As a consequence, I believe folks want to take pleasure in it, and have a good stability of each saving and spending,” Chloe says.

Are you a millennial residing in Toronto or the GTA and need assistance with saving your money? Be a a part of #MillennialMoney and electronic mail [email protected]



What are some money habits you have employed not too long ago?

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