How Can a High-Income Couple Manage a $33k Monthly Budget?

TL;DR

A high-income couple with a monthly take-home of $33,000 wants to invest $350,000 by 2026, reduce their mortgage from $730,000 to $500,000 by 2027, and buy a second car without debt. With a budget surplus of $13,000 each month, they should focus on strategic investments, early mortgage payoff if it's their forever home, and cash flow for the upcoming car purchase.

Transcript

welcome back to another episode of millennial real life budget review today we are taking a look at a couple who lives in Toronto and they're bringing home a monthly take-home of $330,000 woo I am very excited to jump into this one so let's get started hey guys welcome back to the debt free Millennials Channel I'm your host Justine and in this chan... Read More

Key Insights

• ✋ The couple's high income provides them with opportunities to achieve their financial goals quickly.
• 👪 They should consider paying off their mortgage early if their current home is their long-term residence.
• 👣 Utilizing financial planning tools like Projection Lab can help them track their net worth and retirement projections.
• 🎴 Prioritizing cash flow for their next car purchase can ensure they are prepared when their current car dies.
• ❓ They should explore Canadian-specific investment accounts like the Registered Retirement Savings Plan and the Tax-Free Savings Account.
• ❓ A balanced approach to saving, investing, and paying down debt is essential.
• 🪐 By following their budget plan and maximizing contributions to retirement accounts, the couple can achieve a multi-million dollar net worth.

Questions & Answers

Q: How much do the couple currently have in their emergency fund?

They have $120,000 in their emergency fund.

Q: What is their mortgage interest rate?

Their mortgage interest rate is 6% with three years left on the existing term.

Q: Do they have any other debts?

Besides their mortgage, they do not have any other debts, such as credit cards, student loans, or car debt.

Q: How can they allocate their surplus income towards their goals?

They can prioritize setting aside money for a car fund, investing, and potentially making additional mortgage payments.

Summary & Key Takeaways

• The couple earns $330,000 per month, with one partner working as a real estate agent and the other as a remote payroll manager.

• Their financial goals include investing $350,000 by 2026, paying down their $730,000 mortgage to $500,000 by 2027, and purchasing a second car without debt.

• They have a budget surplus of $13,000 per month, which they can allocate towards their goals, including setting money aside for a car, investments, and additional mortgage payments.