Let Other People Pay For Your Stuff!

You might be asking, why would someone else pay for your stuff? Well, the more common term would be ‘buying things used’. When you buy an item used, another person has put up the money for the immediate drop in value. Even selling an item new and in the package, you won’t get retail price for it. Some things you don’t always buy used, but things like clothing, dishes, cookware are easy to visually inspect.

If you’re moving out for the first time, you’re going to save a TONNE of money buying used. If you’re a single person, you can probably get by with 1-4 dining sets. Don’t bother with a 16 person plate set unless you host people frequently. Otherwise you’ll find yourself using the same plate over and over again; never making it to the bottom of your pile of plates. That, my friends, is what we call a waste of money.

You stand to save a lot of money on clothing as well. Typically, items you find used at thrift shops are in great shape, sometimes never worn, and they’re higher quality products. An H&M t-shirt never lasts long enough to make it to the thrift store racks. I’ve managed to buy brand new, white, Fruit of the Loom t-shirts that are MADE IN CANADA for $3-5. Where can you buy clothing made in Canada for that price?

Electronics can be hit or miss. Do your due diligence though and you can score a great deal. I recently sold my television because I’m moving. Someone got an amazing panel with little use for $150 less than retail. I got a really good deal on it during boxing, and definitely got my my money’s worth, but they got a steal as far as I’m concerned.

Before you buy anything, ask yourself, can I buy it used?

-Mike

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Ask Your Coworkers How Much They Make!

This is always a touchy subject for people. For some reason, we have been convinced to not talk about our salary. Whoever made this the norm, is a genius social manipulator. What do you have to lose by asking? Nothing. Sure, it might be embarrassing to find out other people make more than you..but it should light a fire under you to change that!

It is equally as important to keep an eye on what the going rate for your skill set is.

  • What is the highest amount people are getting paid?
  • What is the lowest amount people are getting paid?
  • Where are you on this spectrum?
  • Which companies/industries pay the most?

Make a determination to see if a few words with your boss might get you a sweet increase. I’m a saver, but all the saving in the world could be in vain if you’re getting under paid. What is your time worth? What is your pride worth?

Get out there and ask! If you’re low, make a plan to get even or better. Find your worth and get it.

-Mike

Canadian Pension Plan

I recently stumbled upon this excellent tool from the Canadian government that you can use to determine your retirement income. A lot of the data you’ll need may require some digging to find but it should give you a pretty clear picture of what your current situation and future situation will look like.

I came upon this will trying to figure out how much CPP I will receive in early retirement and it’s entirely dependent on how many years you have been earning and how much you earned each year. I can’t recall what I was earning before starting my career, so I can only assume I’ve been hitting the top target for 4 years. That means I’ll need to work another 16 years in order to receive 50% of the maximum monthly payment. It’s not a lot, but every dollar counts.

How do Canada’s social programs factor into your retirement?

The Economy of You

An economy is essentially a byproduct of monetary transactions. Money comes in, money is spent on services. Money is lent, money is spent, money is paid back with interest. These are the fundamental parts of the system.

Investing relies on the economy and we hope the economy grows in a healthy way. However, every investor should be prepared to weather a storm. Unfortunately, due to extreme amounts of lending and not paying back these loans in the western world, things are getting pretty scary out there. Is a crash imminent? I can’t say. What I can tell you is, by keeping your personal economy strong you can be prepared for this.

Lately, I’ve cut spending on items that don’t produce value. I’m spending more on investments, saving more liquid cash, and seeking novel ways to grow my money. If everyone were to do this, the economy would slow. The few FIRE minded people out there can benefit if they jump on this opportunity while the economy is strong; your money will go further when it’s not.

It may sound like I’m not enjoying the fruits of my labour, but I am:

  • Getting more enjoyment out of the things that I have
  • Finding joy and new experiences in starting businesses
  • Focusing on internal growth. (Go to your local library and get a book. Do it now!)

I really enjoy seeing my net worth increase and learning, so this is easy work for me. If it’s not your cup of tea, I hope you can see the light at the end of the tunnel and can grow your own way.

Look at your personal economy and see how you can make it stronger, more robust, and be prepared to weather any storm. When the downpour starts, you’ll be happy knowing you came prepared and can hit it full on.

-Mike

 

FIRE: Where is the excitement?!

Okay, so I’m going to humble myself really quick. I don’t know shit about Financial Independence/Early Retirement. I’m new to the idea, and I haven’t even gotten close yet. There is so much passion coming from the people involved in this idea, they study every aspect of how to make the dream the reality. These people are the sensei to my samurai; seriously. These people love the journey and the result.

However, maybe I just don’t see the raw excitement coming from some when they reach financial independence. I guess it’s sort of like winning a race; you’ve reach the end, you feel good but you’re gearing up for the next one. I really hope when I reach FI that I can showcase my passions and really share the experience with anyone who will listen. FI is when you earn true freedom and you really get to own every minute of your life. Yell about it! Tell everyone! Say everything!

I know a lot of the publications I read are tailored to their viewer, but I’d love to hear about how amazing the end result is! Listen to a podcast that makes me want to pickup my keyboard, throw it across the room and go buy motorbike and drive across south america. Maybe finance isn’t emotionally exciting, but it could be, you know?

Maybe I’m just being a dick and ranting. Maybe I’m showing my thrill seeking behaviour. Whatever. Hopefully I can bring some fire to FIRE.

Stay tuned for more heat.

-Mike

Useful Subreddits

I’ve been reading http://www.reddit.com for a long time. Typically I’d waste time reading useless junk. I mean I still do, but I used to, too. All jokes aside, there is a tonne of great resources on Reddit and tonnes of talented people. Find me at /u/torontosurvivalguide

Below are some subreddits that contain a treasure trove of useful information to help make you more self-sufficient:

Business

DIY

Finance

Food

Lifestyle

Philosophy 

Self Sufficiency

Shopping

Travel

I hope you find something you like!

-Mike