Get ready to get on FIRE

There's so many financial acronyms around you could be a Y.A.W.N or maybe a D.I.N.K. or heaven forbid a S.I.N.B.A.D (single income no boyfriend and desperate!)

F.I.R.E - Financial Independence Retire Early is one I really like.

"FIRE is having a moment, and it’s not hard to understand the appeal. Financial independence? Sounds great! Retiring Early? Sign me up! It’s a movement that’s quickly gaining momentum, too. We spoke with four FIRE enthusiasts and asked them to share what the movement is all about, and what it takes to achieve this elusive goal of Financial Independence/Retire Early." Read more

One FIRE advocates take HERE

It is very simple in theory, reduce your expenses to the point where your income covers them and you have suffienct funds left over to save. That means downsizing, no venti lattes and a lot more sacrifices. However the joy you get from lying on a beach without a worry at 45, 55 or 60 will be well worth it.

Feeling good about your money

There's always the "What do you get them for Christmas?" conundrum. Every year I notice I have to try and come up with something I want. The two best gifts I ever got?

1. a sleeping kit sent to a child

2. a goat


I've always followed the millennial's prioritizing experiences over belongings.  Wouldn't you prefer to take a trip, have a nice meal or see that show rather than further clutter your house?

Obviously we have a lot more than we need in North America and even those in Canada who are earning less can look at this article and find ways to feel better about their financial health. 

Sock it away

Time after time I see a tenant unable to pay their rent after just a few days of missing work. There is a snowball effect where they get behind in their rent and bills until the whole situation ends with them thousands in arrears. If your rent is over $1000 it's not hard to get into a lot of debt quickly.

I think it's that many don't know how to save and how to live within their means. Many times the same tenants have expensive cars and a lot of flashy stuff - think big screen TV etc. It's their right to have nice things but they also need to pay rent.

It seems things aren't getting better research shows our low interest rates are lulling Canadians into spending and not saving.

"In the 1980s, households saved up to 15 per cent of their income, but by the early 1990s this dropped below 10 per cent and finally bottomed out at 2.1 per cent in 2005. Since 2005, the savings rate has rebounded slightly - it was 4.8 per cent in 2010 - but it still appears Canadians are now spenders first and savers second." Read More Here


A good rule of thumb is to save 10% of your income every month. If you are really into trying something new save a dollar a day then increase until you can put $10 a day away. You'd be surprised at where you can cut spending to reach this goal. Take David Bach's Latte Factor test to see how much you can save everyday!

Free is bad.

I'm just cruising around the web looking for something to write about. I stumbled across this article about making University free. I'm really 50/50 on this one. Obviously everyone deserves a chance at education and leaving school burdened by debt is terrible and a hardship for certain. But if education is free where would its value lie? I'm willing to bet that a lot less people would finish or take classes seriously if they didn't feel financial pain of paying for them.

It's often true the only thing that helps people become money managers is having to deal with debt. I've become addicted to a show called Til debt do us part. It's fascinating how these couples have no concept of debt or responsible spending. By going in their homes and showing them how to live within their means Gail Vaz-Oxlade is teaching them a life lesson that will benefit them forever.

How about we have free financial planning courses in university or free budget building lessons or income expense sheet reading? Getting handouts never helps anyone. Look at our EI or Social Assistance set up. Like they say;

"Teach a man to fish...."

At least there is a toilet

See the smallest apartment in New York city. At $150,000 it still costs as much as an ok condo in Edmonton, but apparently micro studios are the way to go now. That says a lot about Manhattans affordability. However, I can definitely see the benefit of owning your home (however humble it may be) outright in 2 years.

If we all went smaller there would certainly be a lot less credit and cash flow problems.
So this couple has made a lifestyle choice that is both beneficial to the wallet and financial future.

This reminds me of the Y.A.W.N.S

When "I'm sorry" just doesn't cut it

If you're young and time is on your side losing money on investments are a set back but you know you have time to right most financial upsets. However, when the time to earn is long gone losing your savings is a big hit and you'll probably want some payback.

A group of seniors in Germany, kidnapped, held and tortured their financial adviser for losing their life savings.

"Retirees in Germany were so upset with their financial adviser that they ambushed him outside his home and beat him with their walkers, the adviser claims. Then they taped his mouth closed and hauled him into a car.

"It took them quite a while because they ran out of breath," the financial adviser, James Amburn, told the U.K.'s Daily Mail. The kidnappers ranged in age from 60 to 74."

When you're a steward of money the responsibility of managing your client's funds is not to be taken lightly. You have to be willing to take the ups and the downs.

In this case it was a few broken ribs, cigarette burns and captivity.

Read More

On The Road To Being A Y.A.W.N

*I drive a fuel efficient mini-car.
*I don't buy brand name clothing nor do I want to.
*Our monthly living expenses are ridiculously low by choice.
*All our expendable income goes into investments.
*I tithe a percent of my income to help children in Africa.

Looks like we are on the road to being Y.A.W.N.s (Young And Wealthy but Normal). Why are they called Y.A.W.N.s? Because they are boring. Un-sexy as they sound, if everyone did this debt would be erased, people would be happier and the world would be a better place - especially if we all gave more to charity.

The basics behind being a Y.A.W.N, and they are very basic, are as follows:

1. Live below your means
2. Remember that stuff does not define self-worth
3. Give back

It's not rocket science but it's hard to follow in the conspicuous consumption world we live in.

That Is Exactly The Problem

If you're poor or relatively poor, it's possible to have many of the things the middle class has," "It's just that you have to pay for them for a longer period of time." Michael Haan, a sociology professor at the University of Alberta
Focusing on needs not wants puts a lot of people into financial debt, they have to stop digging the hole.

Perhaps this is why we have Gen Xs and Ys in so much debt. When graduates start work they are looking a minimum of $20k student loans and credit card debt. Mix that in with a poor understanding of finances and you will have a generation with all the bling but none of the bang in their bank accounts. Preparing for the future financially is something that should be taught from elementary school.

Thank goodness people like Robert Kiyosaki saw the need and filled it and by helping people he became a financial fortress.

Investing when you are young and saving money to invest is so important because once the first home, child and car come you could be looking at a lifetime of debt.

Financial Athlete vs. Big Bottomed Benchwarmer

Watching Sandy tuck into that Big Mac and crispy set of fries was enough to start my stomach craving for one of those little apple pies that if you wolf down to quickly, burn the roof of your mouth.

Am I getting fat hanging out with her? According to Newsweek’s article ‘A groundbreaking new study says obesity is contagious, spreading through social networks. Friends, more than family or neighbors, are the ones propagating the epidemic.’
Well, I’m sure that there is some truth buried thick in the middle there. But, my common sense dictates that I’m less likely to be scarffing down chocolate floats with my chubby buddy if I don’t like the way he looks. I may feel encouraged to say, “let’s skip lunch and go for a brisk walk” because I care about him and his health.

I understand that obesity is a serious problem and I’m not speaking lightly about it.

My correlation is directed to attitude and learned behavior.
An old adages applies here ‘Monkey See, Monkey Do”. Christakis says, “It’s spreading through ideas about what appropriate behaviors are.” In other words, “If I see you gaining weight, and I respect you, and want to emulate you in other ways, that changes my ideas about what is an acceptable body size.”

I can attest to the power of positive influence. You’ve heard “Your Network = Your Net worth”, this is very true. Not just about money but health, life and ideas.

Sure it’s easier to commiserate the trials of life (and even a way to bond) with friends. But, real progress happens when your peers and associates keep aspiring to do better and you jointly push to reach higher goals- that’s where real, healthy growth occurs. Mastermind groups and Focus Partners enable an excellent source to support, share ideas and experiences that propel you all forward.

Imagine Trump, Kiyosaki and Tiger Woods’ inner circle of inspiration and support.

It’s essential to have a partner, group or team to pull you up the ladder be it health, wealth or spirit. That includes being accountable for your own actions.

Alberta is bursting with over $176B of economic investment make certain you have the network to support your growth and success in this outstanding market.

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