Should You Have More Than One Income Source? : Our August 2017 Budget Update



Someone asked me the other week how I was going to adjust to having only one income source now that I’ve resigned from one of my full-time jobs.

I responded by saying that it won’t bother me one bit, at least not right away.


I can finally breathe and try to get my life back on track because I felt like I was on autopilot for all those years even though I enjoy what I do.

Thankfully we have income sources that earn us some extra income such as this blog and our retirement investments, but are they enough?

That depends on how much money we’d like to make and without much effort. Unfortunately the blog does take lots of effort so we do have plenty of room for improving our income source options.

Having more than one income source sounds draining especially when you’re already working full-time and any available overtime. Some couples only have one income source because either/or become a stay-at-home parent until their children are in school full-time. My mum did this while my father worked in the trades and ran our family business with my help of course.

Once us kids were in school my mum helped my father with the business but later retired that to buy investment properties they’d later rent out. Those properties have been mortgage free for years so they enjoy the residual income earned. The key here is that you don’t want to work two jobs BUT still have second, third, fourth or fifth income sources.

The choice is yours.

When your income sources grow you may find your financial stress levels return to a normal state. It’s true that many Canadians fret about their future but aren’t sure where to turn but rely on government pensions and possibly income earned from a house sale.


What are my options?


Should you have more than one income source and how to go about it? Answering this question can be easy or challenging based on how much money you’d like to net with a second income source. You may also not want to exert much elbow-grease and time either if you’re already stretched thin from your full-time job.

With recent interest rate hikes, housing prices trending downwards and costs of utilities and other bills rising it can be tough to live on one income source. I shared a joke once on my Facebook page about how one would feel if their financial advisor was the pizza delivery guy. You would think many people would panic about their life-savings one person stepped up and said possibly he’s doing the job for a second-income source.

Ah, smart you see because not everyone thinks like that.

If you’re new to CBB you may not know that I’ve worked 2 full-time jobs for the past 3 years just to keep my foot in the door. Everyone always says you need to find a way into your dream job and once you hook it don’t let go.

That sounds easy enough but it’s not and it’s hard for everyone who goes this route which is consider double activity-based working. Working too much can cause depression, anxiety, sleepless nights, relationship and family issues and so on. Thankfully, I only felt the pain of anxiety, sleepless nights as Mrs. CBB and I battled through the war zone.

Honestly, it wasn’t about the money, I wanted the job and thankfully my persistence and strong family support led me to attain my goals after a second run at interviews. I didn’t give up the first time I interviewed and turned down because I believed that another posting would come up, and it did. I knew that once I was able to secure this job I could focus my efforts and time to building a second and possibly third income source.

Related: I Finally Quit My Job and handed in my resignation.

The monthly budget numbers may look good on a spreadsheet and in the bank but money comes and goes. Personally I wouldn’t suggest taking on that amount of responsibility unless you have a strong network and can handle it. I know people who work around the clock to make it big and they are because the numbers prove that but are they happy? Maybe, maybe not but that’s none of my business.


Your income source options


There is a difference between having income sources that are activity based and those that are not. Ideally you’d want activity based income and other income sources that pay for themselves over and over.

Some of you may have to work 2 full-time jobs out of necessity because income from one job just isn’t cutting it. Back when Mrs. CBB was working at Tim Hortons she remembers an older lady who was single working at the grocery store full-time as well. She would toggle between jobs and get a few hours rest in between. She looked exhausted and sick of spending her life working and not enjoying it.

That is reality for many people but why do it if you don’t have to? There are ways to earn a second income by doing simple jobs like babysitting, delivering newspapers, store greeter and so on. You might even have skills that transfers into extra cash comparable to a second income such as repairing cars and trucks, window cleaning, computer technician or even accounting including income tax returns.

All the income adds but it’s important not to forget your well-being. Having a second income source is a great way to earn extra money especially if you don’t have to do much like our Canadian friend Mark at My Own Advisor. He earns a nice dividend income from his investments that he manages sitting at his computer.

Others blog their way to financial freedom by earning a blogging income many of which can be lucrative which leads the blogger to quit their full-time job to blog full-time instead. I have a few blogger friends who have done just that but it did take time.


Trading hours for dollars


A post I read recently explained how trading hours for dollars will eventually run out because there just isn’t enough to go around. This is how I’ve felt the past three years but working two jobs isn’t going to make you a millionaire it’s how you make money work for you that will earn you that notch on the net-income ladder.

Making money is great but earning money while you are sleeping, on vacation or just hanging out on the front porch having a coffee is what you really want. By this you need to have either a leveraged income or a residual income.

Leveraged Income is where you get to use the activities of others.

Residual Income is money that flows when you aren’t working, from earlier activities engaged in.

Source: Quora  Trading hours for dollars

With residual income this is the amount of money you have when all of your bills are paid at the end of the month. You may also consider getting paid after the work is completed over and over residual in nature.

Recording artists, authors and business investments such as becoming a landlord like my buddy Pauline at Reach Financial Independence. She rents out her house in Guatemala and makes a tight income source from that. You don’t have to be present to earn the money but it’s coming in month after month.

Passive income is when you create an income source that continues to earn you money while you’re sleeping like Mark does. Some may conclude that residual and passive income are in and about the same thing.

Leveraged income however includes making money from investing in ventures that include an income from combined efforts rather than just your own. You do the work once and continue to get paid for it.

So you have three sources of income;

  • Activity based or earned income (your job)
  • Residual/Passive Income (creating an income source from investments that continue to pay monthly)
  • Leveraged Income (One time work deal but you continue to get paid)

I remember years ago when we were going to purchase a Property Guys Franchise and had we went through with it there is no doubt we would have earned far more than we had imagined with their success. This type of leveraged income is not for everyone but it’s certainly an income source that is do-able.

Ideally having more than one income sources is smart if you want to work less, make more money and enjoy life to the fullest. Remember that you don’t have to physically work two jobs to see the same kind of return as you would by creating a residual or leveraged income source.

Other income sources you could consider;

  • Blogging (this does take time and in some cases years)
  • Earn money from marketing other businesses to earn extra money. Amazon is an example referring someone to a product that you have ties to with the company.
  • Buy a house or apartment building and become a landlord
  • Start investing in dividend yielding investment sources
  • Earn a side-income from part-time work (activity-based in most cases)
  • Become a rock star, actor, write a book, offer a product or online course
  • Business ventures or partnerships
  • Purchase a Franchise ex: No Frills and other franchise operations, Property Guys.


What is your financial life-line?


Now that I am down to one job I plan to focus any time I can to earn a small second income from this blog along with learning how to invest like my blogging pal Mark. I know I’ve said that for years now but there was that loss of balance between time and money that I just didn’t have.

If none of the above income source options appeal to you than certainly look at the smaller stuff such as earning money from Nielsen Home Scan Canada, Coupon apps, surveys that pay, focus groups and refer a friend incentives. Money coming in when effort is small is a great way to boost your income source.

You may be content with one income source or even two if you are a couple and both working but keep in mind if anything should happen or if you’d like to retire early it’s always nice to have cash rolling in with limited effort.

Consider your income sources as life-lines. Each time you create an income source you create another way to stay afloat financially without sinking or offering you time to fix a problem.

Discussion Question: How many income sources do you personally need?


Where our money went in August


August 2017 Month Income and Expenses

We had a busy month paying for our new truck purchase which I will talk about in our net worth update for August next week. Other than that Mrs. CBB spent some money at Shoppers Drug Mart to stock up on her beauty products but managed to pick up 20x the points. I’m certain we’ll be hitting one million points before we know it.

As the year comes to an end we have already been talking about budget changes for 2018. With my new job I’ll also be talking to our advisor about my RRSP investments as I’ve got a Defined Pension Plan now. Other than that we have sold bits and bobs around the house as we have too much stuff and we need to get renovations done.

I also spent money on vent ducts for the roof and a new vacuum hose for our central vac which was a bit disappointing since it’s not that old. No, the warranty had expired. Story of our life!

Moving forward we will see a decrease in net income as I’m no longer working two jobs. No, I do not include our Blog income in these updates as we keep it separate for business purposes.

How was your budget month?



Pick a Free budget that’s right for you


I’m currently offering 2 versions of our budget and the reason behind it is simple. Firstly, read the CBB blog disclaimer because what you do with it is your own business so if you mess it up you need to sort that out.

I have not closed off any cells so you can make all the changes you like to the budget to reflect your lifestyle which is what you asked me for in your emails. (See I do listen and read your comments and emails)

Although I would love to help every single fan with their budget I am unable to do so but I am always willing to answer any emails you send me so don’t be shy.

This was after all meant to be our personal budget and although I would love to customize it for every fan that wants to use it but, I’m afraid I cannot.

I’m not selling this budget or hope to make any money from it so enjoy this free budget and I hope that it works for you as much as it does for us.


Get Our Free Budget Spreadsheet


cbb budget screen shot compressed

You can download the free budget spreadsheets here.

  • Budget 1– You can use the pre-existing categories or you can use your own if you wish and you have the option to use projected expenses or not. Please read all notes left around the budget for tips.
  • Budget 2– Everything is pre-set so you have to use the pre-defined categories but this budget will generate year-end budget figures where the other one won’t but you must use the categories already in this budget. If you change anything you will mess up the formulas and year-end figures.
  • Please read all notes left around the budget for tips.

Test the budget for a few months and see how it goes. Trial and error, remember that.


Our family budget plan


How we budget our monthly expenses?

I often have fans ask me how to budget money on a low-income or they simply have a high debt load and want to kill it like my friend Tony who got rid of over $100,000 worth of debt by using a budget.

CBB fans want to know what we do in order to save so much money and the reply I give is simple>> It’s not about the money it’s about the process involved.

We are both money managers of our finances and with our relationship compatibility we have been able to get to where we are in 2017, debt free.

It doesn’t matter if you are using a cash only budget or you use your debit and credit cards, if your budget doesn’t balance you have budget issues you should check it pronto.

Learning how to be your own money manager is important because no one else will care about your money more than YOU!.

We don’t always save as much money as we would like every month but most importantly we are not going into debt but only because we are budgeting our money. In fact we are currently debt-free including the mortgage which means all we pay for is our monthly bills and expenses.

One of the most important things we did for our personal finances was that we never let the budget deter us from reaching our goals.

Sure we’ve had crap months but we’ve made up for it or we learned from our mistakes just like we should. Budget failure only occurs when you give up on your budget which should not happen as long as you truly want to reach your goals.

We didn’t always earn the income we do today but made do with what we were earning so we didn’t go into debt. That my friends is “living below your means”. The only science to becoming rich!

Sometimes fans email and ask me if living on a budget in Canada is any different from living and budgeting in other countries. To be honest I’m going to say, probably not.

If I still lived in the UK I could use this exact budget spreadsheet to meet all of my needs however the budget needs to be reviewed monthly.

Below are links to the budgeting series which I wrote while designing our excel budget spreadsheet which will give you an idea just how we designed our budget.

I’m not a financial planner/advisor so I can’t tell you how you should budget but I can show you how we budget. I’m just a regular guy just like everyone else; some might call me a budget or numbers nerd.


Learn how to budget with Mr.CBB


Our Simple Budgeting Series

Do you want to learn to budget like we do?

We explain everything we do and more in this mini-series below all about budgeting.

Please take the time to read through our budgeting series plus read Budgeting in the New Year. I hope the information will help stop you from making common budgeting mistakes that I hear of often and that you take something away from the information and apply it to your financial situation.

If you have any questions about what we do with our budget money tracker feel free to email me.

  1. How We Designed Our Budget Step 1 Gathering All the information
  2. How We Designed Our Budget Step 2Budget Categories
  3. How We Designed Our Budget Step 3– Tracking Receipts
  4. How We Designed Our Budget Step 4- Note-taking
  5. How We Designed Our Budget Step 5– 5S Organization
  6. How We Designed Our Budget Step 6– Who Does What and When?
  7. How We Designed Our Budget Step 7– Balancing Our Budget
  8. How We Designed Our Budget Step 8– Knowing our Coupon Savings
  9. How We Designed Our Budget Step 9– Reading Our Bills
  10. How We Designed Our Budget Step 10 Projected Expenses


Budget percentages August 2017


August 2017 Household Percentages

Our savings of 13.85% includes savings and investments and emergency savings for this month. If you include the projected expenses savings, we actually saved 35.24% of our income. The other categories were well within the defined percentage limits. Our projected expenses this month is at 21.39%.


Budget percentages month by month


August 2017 Month by Month


Breaking down expenses


This is simply a breakdown of our expenses which has helped us to understand where all of our money goes. Since May 2014 we have been mortgage free so much of our money will be directed at savings, investments and renovations.

I appreciate that you enjoy this budget update each month but I do hope you view this as an educational tool rather than comparing your own financial numbers as our situations are all unique.

Although I encourage your comments and love to hear what you have to say about our budget categories and expenses please don’t tell us to donate our money to charities because we have too much or are fortunate. We are hardly out of the clear with finances for the rest of our lives and have worked and sacrificed to get where we are. We do plan to enjoy the money we’ve saved now since we haven’t over the years with our son.

What we do with our ‘extra cash’ is our business and although we do donate to a charity we won’t be putting it on display for the world to see as it defeats the purpose in my eyes. It is part of the budget as you see it. I hope that clears that up for those of you who had concerns about our extra money.

Just 10 years ago I started working in Canada making a bit over minimum wage and have since moved up the ladder. I’m now working very hard to secure my dream job with one foot in the door. We aren’t all lucky but if you do the best you can at least you can look back and say you gave it a shot.

Sometimes we wish we had more money to budget with but understand that we only have what we earn and if we want more, we need to earn more. Spending less than we earn and budgeting our money has been the easiest way for us to pay down debt and save money.

  1. Chequing– This is the bank account where all of our debt gets paid from.
  2. Emergency Savings Account– This is a high-interest savings account.
  3. Regular Savings Account– This is a savings account that holds our projected expenses.
  4. Monthly Budgeted Total: $5187.39
  5. Monthly Net Income Total$8963.60
  6. (Check out our Ultimate Grocery Guide to see where our grocery money goes)
  7. Projected Expenses: These are expenses we know we will pay for throughout the year = $1967.68
  8. Total Expenses Actually Paid Out$4667.45
  9. Total Expenses Actually Paid Out: Calculated is $8963.60 (total net monthly income) – $1,967.68 (projected expenses) – $2328.47 (emergency savings) = $4667.45
  10. Actual Cash Savings going into Emergency Savings: Calculated is $8963.60 (total monthly net income) – $4667.45 (actual expenses paid out for the month) – $1967.68 (projected expenses) = $2328.47


How to save for future expenses


What are Projected Expenses? – We project expenses throughout the year so we have the money saved. PE= A projected expense is money automatically saved each month so it is ready when the bill comes in or when you need it as in the example below.

We review our projected expenses at the beginning of the year to set up our yearly budget and adjust as we go along if a new projected expense arises and needs to be added to the budget. Sometimes we remove a projected expense as well so it’s very important to keep an eye on your expenses.

This has happened on many occasions but it’s bound to happen as we can’t predict everything we have to pay for over the course of the year. The important part for us is that we are saving for these expenses and we no longer have to stress about taking money from our savings to pay for them. To learn more about projected expenses read Step 10 in my budgeting series.

When we spend the money in a projected expense category we move that money to our chequing account in order to pay for that incoming expense. So this means the numbers go up and down in the projected expenses account based on what we need to pay for that we saved for in the account over time.

The only thing you need to do is track your projected expenses each month manually as I can’t customize that for you in the excel budget spreadsheet as I don’t know what you will use for projected expenses.

For now we will have to manually track which means month after month we add up what we save in each projected expense category and minus what we spend so we know how much we have and what is left in each category. I have updated our personal excel budget spreadsheet for 2017.

We pay money into the projected expenses account continually throughout the year even when bills come due as its revolving so as one bill gets paid the money continues to come in from the other categories all year-long. This ensures that money is always available. It may not always be enough but having something ready is better than having nothing at all and having to use credit.

So the $1967.68 gets paid into the projected expense account every month no matter what. It seems to be easier to track our money this way but you can do what works best for you.


Example Projected Expense


If our clothing category was a projected expense we would have a budget of $50 per month for the two of us. If we spend $30 on clothes for the month that means we need to pull $30 from the projected expenses account to pay for this expense or we move only $20 to projected expenses for the month and leave the $30 in your chequing account.

It’s up to you how you do it as I mentioned above. My plan is to create a projected expenses spreadsheet to track the expenses all year-long otherwise you need to do it manually which we currently do in order to make sure we don’t overspend what we haven’t saved or will save over the course of the year.

It’s a fairly easy process essentially becoming a lifestyle change for your finances but the most important part is that the money is available and saved, which means potentially less stress.

This means we should have $600.00 per year for clothing to spend. We have to track that expense as we spend it manually but hopefully when I find some time I can incorporate that into our budget spreadsheet so it tallies the numbers up as we go along. That way we will be able to know exactly what we’ve spent as an ongoing total.


Budget Results


Time for the juicy category numbers and to see how we made out with our monthly budget. Below you will see two tables, one is our monthly budget and the other is our actual budget for the month of August 2017. This budget represents 2 adults and a toddler plus our investments.

Budget colour chart

If highlighted in blue that means it is a projected expense. You will also see our budget does not include the emergency savings as it’s factored in at the end.


Budget for August 2017


August 2017 Monthly Budgeted Amounts


Actual budget expenses for August 2017


August 2017 Actual Monthly Budget


September 2017 Goals


  • Sleep more because I’m working quite a bit to get up to speed with my new job title.
  • Spend more time with the family doing family things. We’ve signed up our son for weekly activities and soccer.
  • Start prepping the yard for winter.
  • Replace the vents on the roof which I ordered from Amazon.
  • Sell our vehicle and find a part for the other so we can sell that too.
  • Continue boxing up our son’s clothes and selling them.
  • Finish painting a lovely wood cabinet I picked up free from Kijiji

I’m keeping it simple in September and probably the rest of the year until I find my work and family life balance.


Budget updates month by month


In case you missed our budget updates and want to do a quick search I’ve compiled them all on one handy page: monthly budgets. For the 2017 Year I will also keep track of each month below and update the monthly budgets page.

That’s all for this month check back at the beginning of October 2017 to see how we made out with our September 2017 budget.

Happy Budgeting CBB’ers!

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  1. Financial Interdependencies is just 20 years away. If you keep living on $2,000 and making $2,500 however, it will take just over 27 years to reach financial independence. Still good news if you are a young professional in your mid 20s, you could retire in your early 50s.

  2. Anne Russell says:

    As a update to this, two weeks into September (2 shopping weeks) and I’ve practising some new strategies that have saved me a further $13.50 per week off my budgeted groceries.
    That doesn’t include going through my receipts and finding that my “reduced” groceries didn’t get reduced at the till. (I’m not really practised at watching the scanned prices. I come home and compare my price list and receipts.) I expect to get $8.40 back when I go to the store and complete the return.
    To date this month, instant savings account from sales for $195.38 of my grocery savings total, the savings total being $323.20. If I only shopped sales, I would have missed a whopping $127.42!!!
    Next week I’ll pocket $50 in PC Plus rewards, but my plan is to stick to my budget of $235 per week (therefore paying approx. $185.) 😉
    My goal is to put an additional $500 per month in my savings account, which is destined to replace some of the roof on the house next year.
    Another strategy I’m playing with is earning 8 cents per litre off my gas at the pump through a rewards card…gas expense is almost as high as my groceries for the month with the commute. If my estimates are correct, I should recoup approx. $50 by maintaining a certain spend on this new card. It’s accounted for $$6.51 for 2 tanks of gas, but I go through 3 a week.
    Here’s to encouraging people to pick up every penny, nickel and dime!

  3. Anne Russell says:

    Absolutely! I have, what I consider, many incomes sources…not being reliant on one or two is the key to being flexible and able to ride the financial roller coaster.

    I consider the $$ I save to be an income of sorts, non-taxable. I track my contributions through coupons, Air Miles, PC plus, Canadian Tire Money on the Card, savings through a Gas Advantage, substitutions in grocery shopping (sales), Checkout 51, Caddle, Zweet, Ebates, Flipp, reduced grocery items (18 different sources.)

    It sounds like a lot of work and to a degree it is. But as motivation, the amount I’ve saved through those little sources outlined above have been put directly against debt and allowed us to start contributing to savings and RRSP. It is my “second” job, and it pays pretty well considering I then work from home and in my spare time doing things I have to do anyway!

    • You’re right Anne to a certain degree it is work and there are plenty of people not willing to go the extra mile to do it but complain. This is where I’m leading with we all consider savings differently. One person might think that buying Instant oatmeal for $2.99 is a great deal on sale and that is the extent of their savings BUT in fact there might be a coupon available or a coupon app. You may even pair it with other offers available. The person who goes above and beyond in the savings department to learn all about it will beat the person who just shops the sales.

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