I am a 29-year old Asian immigrant. My family and I moved to Canada in late 2008. Even though we've been here for almost a decade, I consider myself still fairly new since I have been out of the country for 4-5 years. I didn't have a good employment history because I usually worked for 3-6 months to save up and then went back to my country of origin and spent all of my savings in about a year. I'd then come back to Canada and repeat the cycle.
3 years ago I decided to better myself. I found a permanent job and I have been working for the same company since then. I currently earn $61k per year with a net pay of ~$1500 bi-weekly and I currently have $28k in my savings account. I also have some accounts receivable from my brother who borrowed $20k from me in 2017 to do some renovations. They are payable in 2 years so he's halfway through the repayment.
In some Asian cultures, it's common for children to live with their parents until they get married or move out on their own. I'm still living with my parents (though technically my parents and I live with my brother since he owns the house and is paying the mortgage). This is what we do to pool resources and save money.
I don't pay rent but I contribute via payment of utilities and groceries. I pay about $180/month for cable and Internet and $200-$300 for water (quarterly). Grocery costs are around $400-$500 but this cost rotates between me and my parents. Those are my typical expenses except for rare family vacations. Since I don't pay rent, I tend to foot the hotel bill or the restaurant bill if we eat out (as a treat since it's still less than what I'd be paying for if I paid rent).
My primary goal for saving was to move out and buy my own house but lately I've been wanting to get my own car because sometimes I want to take a vacation by myself and explore Canada. Currently, I ask my brother to go with me because he's the only one in my family who drives. Sometimes he can't because of his schedule, sometimes it's about money. I want to be able to avoid having to constantly ask him to drive me when I want to take a vacation.
Initially my eyes were set on a 2018 Hyundai Santa Fe Sport but when I looked at the Audi Q5 I just fell in love with the interior (not so much on the exterior).
Prices are as follows:
Hyundai Santa Fe Sport - $43k Audi Q5 - $58k
My apologies for the extremely long details. Is it feasible for me to go for the Q5 or should I stick to the Santa Fe Sport and just live within my means?
Unlike the first question I linked to, I am in no rush. I could wait and save up some more. I'm just about to get my learner's permit and I have to stay on it for 9 months before I become fully licensed. My brother told me to only buy a vehicle once I've finished that 9 months of learning.
Additional question: Am I saving up in a fairly okay rate/pace or am I burning my savings way too fast?
I do have a good credit score. Last time I checked (~2 years ago) it was above 700.
If you need more info, feel free to ask and I'll add them in.
Update No. 1 (Purpose)
It seems like I forgot to mention that I'm looking to get a car not only for vacation purposes, I currently take public transportation to and from work. It typically takes me 1 hour and 40 minutes each way (3 hours and 20 minutes total) on a good day. If I drive it will only take me 30-40 minutes of driving each way. This will be where the car is going to be used for 90% of the time. Like I said, vacations are a bit rare for me at the moment but that might change when I have my own vehicle.
Update No. 2 (Saving Habits)
It was pointed out earlier that my current rate for saving up is around $777/month which seemed kind of odd to me (but perfectly understandable from the figures I provided) because whenever I get my bi-weekly paychecks I do an automatic $400 transfer to my TFSA so that's a guaranteed $800 per month (guaranteed $1200 on months where I get 3 paychecks). On top of those guaranteed transfers, anything left after all of my expenses gets transferred as well so I was expecting my rate to be at least $1500/month.
98% of the time I don't touch this account, I only put money into it and rarely take money out. The only time I do is when I make some big purchases that are more than what's left of my paycheck after the automatic $400 TFSA contribution. I'll explain this in the next update.
Update No. 3 (Spending Habits)
I'll have to admit I do have some vices that incur additional expenses (typically large amounts). I play a lot of video games and also play music.
Bass - $2200 Sax - $3000 Online Lessons - $160/year
Well this one's very difficult to estimate. I'll just provide what Steam told me the total amount I've put into my account.
Yep - I was shocked too. I believe this goes all the way from when I created an account with them back in 2011 so that puts it around $1500/year. And this is just Steam. I have a PS4, and a Nintendo Switch where I also buy video games as well, so I'd say around $2000+/year in total?
The reason I wanted to point this out is because I was thinking when I purchase a vehicle I'll just stop buying stuff for music and video games. I know I can stop my expenses for music but I may not be able to for video games. I'll try to reduce it to like $500/year though which looks possible to me.
This way I'll just use the savings to pay off the insurance and then help with the maintenance costs.