Posts tagged ‘perfectionism’

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

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