I'm living on a fixed disability income, with little hope of ever being able to work again. I cannot receive any income of any kind while on disability (or I have to pay it back anyway, and risk losing my benefit altogether).
- House: $80k mortgage on a $200k+ home, payments are about $500/month.
- Retirement savings (RRSP): $15k, with no additional payments going into it.
- Cash: About $12k in the bank right now
Liabilities: None, besides the mortgage.
As for reasonably-priced lending, I have a $40k line of credit (with a $0 balance) at 5% that I could use if need be. My credit is good.
My expenses + mortgage come up to about $2750/month, and my post-tax income is about $3250. I'm annoyingly aware that reducing expenses only gets you so far, assuming one lives reasonably and within their means already. Increasing income is where the bigger progress happens, and that's exactly what I cannot do.
So, with that $500 monthly surplus and $12k in the bank, what are my options? Here are a few of my own thoughts on that (think of these as more "desires" than constraints, though):
- I'd like to move into a nicer home (still in my "starter" home I bought 10 years ago). To do this, I would need to put down perhaps another $40k to have an affordable payment.
- I need to get some retirement savings contributions going again. (Based on my calculations, if I put away $550/month starting now, I'll be able to retire reasonably. But, wouldn't you know it, that's a little more than my entire monthly surplus!)
- Disability cuts me off once in a while, just for kicks, it seems. The appeals have been successful (and I get the back pay), but I might need to float 3-6 months with no income, so I'll need some relatively liquid reserves (or use my line of credit if that fails).
Hopefully this isn't too much information to digest. (You should've seen my first draft!)
What are my options to maximize the above desires? I'm in Canada.