Posts tagged ‘money’

August 4, 2011

3 Bucks For Retirement

It’s one latte or 0.000005% of my retirement savings.

Today, doing some casual work I was able to earn $30 cold hard Canadian cash. I know that’s probably what you spent on lunch today but such is my life, for today, and I accept that. Yesterday I made a commitment to you all that I would begin to “pay myself first” by taking ten percent off the top off all of my earnings for savings. In my example, I used $50 with my savings being $5.  The universe decided to see how serious I was with my commitment today by starting me off with an even smaller example. Ah universe, always a card.

It’s Party Time

I am here to say that my whopping $3 has been transferred to the ashtray in my car (Do new cars even have ashtrays?) to ensure that it is not spent inadvertently. I was kind of hoping for balloons and confetti and party hats in my head when I started my savings plan, but I guess that’s always been part of the problem. I shouldn’t need a pat on the back and a great job to take care of myself like a mature adult.

So, the $3 is gone. Out of site out of mind. So as to avoid looks of confusion and perhaps endless giggling, I will wait until I have saved up at least $100 before I open some sort of savings or investment account.

One baby step, one less latte, one day at a time. I can do this.

Peace,

Leslie

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August 3, 2011

Piggy-er Bank

I recently posted about how I am going to start taking aggressive action to address financial MEbucket of my life. I thought it was important to take some immediate action, even though I am not working yet, and cash flow is virtually non-existent. There is something to be said for having the framework in place before you start and it is in this spirit that I take step one.

Many years back, likely around the time of its first printing around 1989, I read the book The Wealthy Barber and like most that read it, was immediately inspired. I connected in this book in a very real way, but like many other things in life my approach was that I would start taking the books recommended actions “tomorrow.” Well this is tomorrow.

The biggest thing that sticks out in my head from when I read David Chilton’s The Wealthy Barber is “pay yourself first.” This is something that immediately resonated with me, especially because I had seen it in action in my own life. For a time, I was paying into an RRSP that I paid to before I paid any other items; before bills, before entertainment, and before life’s other necessities. Like “Roy” says in the book, you adjust your life to this not being a part of your cash flow and for all intents and purposes it disappears. The great part of course is that it doesn’t disappear, in reality you are saving, making money off interest and growing your financial independence.

Starting today, I am paying myself first. Ten percent right off the top. This is pretty hard to do when you are taking in virtually no income, but I can do it. For now, if I make $50 bucks, $5 is going into my virtual piggy bank for now. Once it’s in my “MEbank” it’s no longer available for ongoing expenses and can only be used for my retirement. Once I have a few bucks there, I will open an RRSP and keep the savings going that way.

As a guy with black and white thinking, this is something that I would definitely struggle with in the past. What’s the point?? If I can’t save something substantial, why bother. Why not wait until my income improves? That logic has brought me where I am today and it’s time for a little more colourful thinking. For now, I will do what I can, when I can do more, I will do more.

Novel concept.

Peace,

Leslie

August 1, 2011

Show Me Your ASS(ets)

Caution, Roadwork Ahead

Lately there has been real focus on my Health bucket, with good reason. The saying “if you don’t have your health you don’t have anything” is a pretty accurate one. If I don’t have my health I am no good to anyone. For the first time in my life I feel like I am truly heading down the right path in this area, physically, mentally and spiritually. I know I have a long way to go, but I am ok with that. I am enjoying the journey.

Looking at the MEbucket’s today, there was a flashing beacon around one bucket in particular – finances.  Action in this bucket has been sparse, for good reason. It’s hard to work on finances when you don’t have any. Being off of work has produced a very black and white approach to money for the short term. Money comes in, money goes out – period. That said, I have taken some steps to shore up my foundation. My spending habits and my expectations on what I need to be able to live happily have both contributed to growth here.

Does This Foundation Make Me Look Dumb?

I will use the analogy of a house. If my life is a house, and I have been refurbishing from the inside out, my financial foundation has been decrepit for years. Initially, when I started to refurbish, cash flow was non-existent so instead of bringing in an expert to professionally repair my foundation, I just patched it up as best as I could myself.

Now is the time to bring in the experts. Like many other areas of my life, circumstance and poor execution have inhibited my success. I believe that I have a very solid understanding of how finances work and what I need to do improve my results in this bucket. I have done this with great success professionally, but not personally. Like other areas then, I need to ask for help and be willing to try new things, as well as add a level of accountability that I have not had in the past.

Here Ye Here Ye!

To that end, I am a man on a mission. I am on a mission to find new best practices and to find out what works for others.  If you know me, expect an awkward phone call when I probe into your financial practices. If you don’t know me I will be the one who stops you on the sidewalk to ask if you are ready for your retirement.

I would love you to email me your thoughts. You can also comment right here on MEfurbish. What’s your favourite book? Who is your most trusted financial adviser? What golden nugget are you willing to share? Expect to see more on this topic in the weeks ahead on MEfurbish.

Peace,

Leslie