Topic: The money thread

[Northernridge]

There are lots of interesting posts about stock markets, tax planning, investments, mortgages, credit cards, real estate, income, banking, saving, spending, estate planning, etc. on autos.ca.
Here's the home for non-automotive financial related questions, comments, advice, discussion and derision. It had to happen.

For the 1 percenter in all of us.

[Snowman]

 

[wing]

I have zero money, it's all inside race car

[johngenx]

I used to have money.  I spent the money from the sale of my business on health care for my mother and gave away a big chunk to friends in need.

But, if you can't use it for things like that, then what good is it?

[Northernridge]

I have zero money, it's all inside race car

I know where you have 10 grand lying around.

[Solstice2006]

So I am a little confused.  What is this thread about?  You guys going to help me pay back my line of credit?  Could probably reduce the time to pay it back in half if my wife changed her job to Hamilton/Oakville, instead of commuting to Toronto.  And buy a house in a more affordable neighbourhood, can't help it though ( I am not moving to Hamilton and that's final), love my neighbourhood, and neighbours...

[Northernridge]

I used to have money.  I spent the money from the sale of my business on health care for my mother and gave away a big chunk to friends in need.

But, if you can't use it for things like that, then what good is it?

Charitable giving and supporting others are excellent topics for money...as is making lifestyle choices where income may decline but quality of life improves. I think a few members have made comments along these lines.

I didn't intend for this to be the wealth thread (but whatever), there are lots of perspectives on money.

[Snowman]

For most of my life I had very little money as I was paying off loans to fund my toys. It was a trap. 20 years ago I met my wife and she convinced me to follow a budget she established and get out from under the mountain of debt. It took 8 years to get our heads above water and 5 more to be in a position where we enjoyed flexibility.

We preach this to my daughter and our son constantly and we are starting to see the results as my daughter will graduate university with about $15k in the bank and has started a RRSP. It is very easy to blow money and live for the moment and I would be in a much better position now if I caught on to following a budget in my youth.

Discipline is important and ensuring that you pay yourself first and have plenty of hay in the barn so when it comes time to have some fun...you can!

[rrocket]

Not sure if I mentioned this before...

IQ and I decided to "semi-retire" about 2 years ago.  I was about 40, she was 35.  She's a nurse, I'm an engineer.  We both only work 4 days a week (Mon-Thurs).  Her ~32 hours, me less than 40...though if the community needs her, she'll do some nursing a couple times a month on Fridays.  We talked about it and knew we'd be leavings TONS of money on the table if we did this.  We're in prime earning years and in our trades you makes TONS of money when you work overtime.  But we just didn't want to do it anymore, nor do we care about the money.  I finally understand that "money isn't everything".  Better late than never I suppose.  And we couldn't be happier.  Yea, we need to be a bit more conscious of our budget now (never needed to before) and we will make sacrifices about buying certain luxury items.  These are not things that we NEED, so it's no biggie.  We've had to change a few things in our lifestyle...but really not too many.  We're fortunate out jobs pay well for the hours we work and that we live in an area where housing is ridiculously cheap.  Many here would throw up if you knew how little our house cost just steps from Lake Erie..with a boat launch and a beach.  Our groceries are extremely cheap (fresh fruit/veggies stands abound here just steps from our house) and we now shop in the USA for our dry goods.  I saved $82 in coupons our last shopping outing!   Overall, we're very fortunate.  I feel lucky.  If something happens and we need to ramp up hours again, we can do so.  Such is the luxury of our trades.

Overall, I love not worrying about money, the hours and just focusing on living and loving life.  We both feel fortunate and don't regret making this decision.

[KD]

For most of my life I had very little money as I was paying off loans to fund my toys. It was a trap. 20 years ago I met my wife and she convinced me to follow a budget she established and get out from under the mountain of debt. It took 8 years to get our heads above water and 5 more to be in a position where we enjoyed flexibility.

We preach this to my daughter and our son constantly and we are starting to see the results as my daughter will graduate university with about $15k in the bank and has started a RRSP. It is very easy to blow money and live for the moment and I would be in a much better position now if I caught on to following a budget in my youth.

Discipline is important and ensuring that you pay yourself first and have plenty of hay in the barn so when it comes time to have some fun...you can!

Holy smokes!  You should try and clone that girl!  I thought i did well to graduate university with only $800 in debt!   

[rrocket]

For most of my life I had very little money as I was paying off loans to fund my toys. It was a trap. 20 years ago I met my wife and she convinced me to follow a budget she established and get out from under the mountain of debt. It took 8 years to get our heads above water and 5 more to be in a position where we enjoyed flexibility.

We preach this to my daughter and our son constantly and we are starting to see the results as my daughter will graduate university with about $15k in the bank and has started a RRSP. It is very easy to blow money and live for the moment and I would be in a much better position now if I caught on to following a budget in my youth.

Discipline is important and ensuring that you pay yourself first and have plenty of hay in the barn so when it comes time to have some fun...you can!

Holy smokes!  You should try and clone that girl!  I thought i did well to graduate university with only $800 in debt!

Did daughter pay for university though?  Or did Snowy?

[Snowman]

For most of my life I had very little money as I was paying off loans to fund my toys. It was a trap. 20 years ago I met my wife and she convinced me to follow a budget she established and get out from under the mountain of debt. It took 8 years to get our heads above water and 5 more to be in a position where we enjoyed flexibility.

We preach this to my daughter and our son constantly and we are starting to see the results as my daughter will graduate university with about $15k in the bank and has started a RRSP. It is very easy to blow money and live for the moment and I would be in a much better position now if I caught on to following a budget in my youth.

Discipline is important and ensuring that you pay yourself first and have plenty of hay in the barn so when it comes time to have some fun...you can!

Holy smokes!  You should try and clone that girl!  I thought i did well to graduate university with only $800 in debt!

Did daughter pay for university though?  Or did Snowy?

I paid about 35% of the cost and she worked in fly in fly out mining camps in the summers and paid the rest. She switched majors after 2 years so she will be in university a total of 6 years....cha-ching. I estimate it will be a total of $125k

[blur911]

Not sure if I mentioned this before...

IQ and I decided to "semi-retire" about 2 years ago.  I was about 40, she was 35.  She's a nurse, I'm an engineer.  We both only work 4 days a week (Mon-Thurs).  Her ~32 hours, me less than 40...though if the community needs her, she'll do some nursing a couple times a month on Fridays.  We talked about it and knew we'd be leavings TONS of money on the table if we did this.  We're in prime earning years and in our trades you makes TONS of money when you work overtime.  But we just didn't want to do it anymore, nor do we care about the money.  I finally understand that "money isn't everything".  Better late than never I suppose.  And we couldn't be happier.  Yea, we need to be a bit more conscious of our budget now (never needed to before) and we will make sacrifices about buying certain luxury items.  These are not things that we NEED, so it's no biggie.  We've had to change a few things in our lifestyle...but really not too many.  We're fortunate out jobs pay well for the hours we work and that we live in an area where housing is ridiculously cheap.  Many here would throw up if you knew how little our house cost just steps from Lake Erie..with a boat launch and a beach.  Our groceries are extremely cheap (fresh fruit/veggies stands abound here just steps from our house) and we now shop in the USA for our dry goods.  I saved $82 in coupons our last shopping outing!   Overall, we're very fortunate.  I feel lucky.  If something happens and we need to ramp up hours again, we can do so.  Such is the luxury of our trades.

Overall, I love not worrying about money, the hours and just focusing on living and loving life.  We both feel fortunate and don't regret making this decision.

Apart from a few details, we are in a very similar situation and outlook.

[rrocket]

For most of my life I had very little money as I was paying off loans to fund my toys. It was a trap. 20 years ago I met my wife and she convinced me to follow a budget she established and get out from under the mountain of debt. It took 8 years to get our heads above water and 5 more to be in a position where we enjoyed flexibility.

We preach this to my daughter and our son constantly and we are starting to see the results as my daughter will graduate university with about $15k in the bank and has started a RRSP. It is very easy to blow money and live for the moment and I would be in a much better position now if I caught on to following a budget in my youth.

Discipline is important and ensuring that you pay yourself first and have plenty of hay in the barn so when it comes time to have some fun...you can!

Holy smokes!  You should try and clone that girl!  I thought i did well to graduate university with only $800 in debt!

Did daughter pay for university though?  Or did Snowy?

I paid about 35% of the cost and she worked in fly in fly out mining camps in the summers and paid the rest. She switched majors after 2 years so she will be in university a total of 6 years....cha-ching. I estimate it will be a total of $125k

Yea, that's the big difference there.  If she had to foot the cost herself, it would be impossible for her to save almost $15K and not be in debt.

Snowman to the rescue!!

[Snowman]

For most of my life I had very little money as I was paying off loans to fund my toys. It was a trap. 20 years ago I met my wife and she convinced me to follow a budget she established and get out from under the mountain of debt. It took 8 years to get our heads above water and 5 more to be in a position where we enjoyed flexibility.

We preach this to my daughter and our son constantly and we are starting to see the results as my daughter will graduate university with about $15k in the bank and has started a RRSP. It is very easy to blow money and live for the moment and I would be in a much better position now if I caught on to following a budget in my youth.

Discipline is important and ensuring that you pay yourself first and have plenty of hay in the barn so when it comes time to have some fun...you can!

Holy smokes!  You should try and clone that girl!  I thought i did well to graduate university with only $800 in debt!

Did daughter pay for university though?  Or did Snowy?

I paid about 35% of the cost and she worked in fly in fly out mining camps in the summers and paid the rest. She switched majors after 2 years so she will be in university a total of 6 years....cha-ching. I estimate it will be a total of $125k

Yea, that's the big difference there.  If she had to foot the cost herself, it would be impossible for her to save almost $15K and not be in debt.

Snowman to the rescue!!

I started an RESP late but once I figured out she was not going to be dumb like the X, I figured I better put some money away 

[KD]

Not sure if I mentioned this before...

IQ and I decided to "semi-retire" about 2 years ago.  I was about 40, she was 35.  She's a nurse, I'm an engineer.  We both only work 4 days a week (Mon-Thurs).  Her ~32 hours, me less than 40...though if the community needs her, she'll do some nursing a couple times a month on Fridays.  We talked about it and knew we'd be leavings TONS of money on the table if we did this.  We're in prime earning years and in our trades you makes TONS of money when you work overtime.  But we just didn't want to do it anymore, nor do we care about the money.  I finally understand that "money isn't everything".  Better late than never I suppose.  And we couldn't be happier.  Yea, we need to be a bit more conscious of our budget now (never needed to before) and we will make sacrifices about buying certain luxury items.  These are not things that we NEED, so it's no biggie.  We've had to change a few things in our lifestyle...but really not too many.  We're fortunate out jobs pay well for the hours we work and that we live in an area where housing is ridiculously cheap.  Many here would throw up if you knew how little our house cost just steps from Lake Erie..with a boat launch and a beach.  Our groceries are extremely cheap (fresh fruit/veggies stands abound here just steps from our house) and we now shop in the USA for our dry goods.  I saved $82 in coupons our last shopping outing!   Overall, we're very fortunate.  I feel lucky.  If something happens and we need to ramp up hours again, we can do so.  Such is the luxury of our trades.

Overall, I love not worrying about money, the hours and just focusing on living and loving life.  We both feel fortunate and don't regret making this decision.

Apart from a few details, we are in a very similar situation and outlook.

Good on you both!! My wife and I are in a similar situation, but not by choice.  My wife lost her job of 22 years last year due to downsizing.  As you can imagine she was quite upset and we were a little worried at first, but without a mortgage and a relatively small line of credit, we soon realized that it wont be that bad at all.  Like you we made the obvious adjustments to our lifestyle and realized a lot of our "gratuitous" spending was due stress issues of a working couple.  Too busy to make supper, "well lets go out", and "how bout spending next weekend at that B&B on the coast" and that type of thing!  Cut out that stuff alone and we saved a pile! Also, why do we need that commuter car anymore?  Sold!  Also, we are somewhat lucky that my job is such that i can basically work as much OT as i want and as I love my job, i work a lot more without getting stressed out about it.  My wife makes me a nice lunch everyday and bfast every morning and supper when i get home to a clean stress free house!  I can essentially make my own hours, have a corporate vehicle that i take home everyday, so never have to pay for commuting and i can bring my wife along when i go somewhere interesting. 

I have many friends that are so mired in debt with their 6000 sq ft houses and all the other shaz they think they need, but have a hard time sleeping at night worrying about money issues.  It's been a year now since my wife has not worked and we have never been happier!

[rrocket]

^^Congrats!  It sure is a nice feeling......

[wing]

It's all about not falling into the consumerism trap.

I don't buy many "things"  Yes I spend a lot of money on my hobby but that's about it. 

[KD]

Not sure if I mentioned this before...

IQ and I decided to "semi-retire" about 2 years ago.  I was about 40, she was 35.  She's a nurse, I'm an engineer.  We both only work 4 days a week (Mon-Thurs).  Her ~32 hours, me less than 40...though if the community needs her, she'll do some nursing a couple times a month on Fridays.  We talked about it and knew we'd be leavings TONS of money on the table if we did this.  We're in prime earning years and in our trades you makes TONS of money when you work overtime.  But we just didn't want to do it anymore, nor do we care about the money.  I finally understand that "money isn't everything".  Better late than never I suppose.  And we couldn't be happier.  Yea, we need to be a bit more conscious of our budget now (never needed to before) and we will make sacrifices about buying certain luxury items.  These are not things that we NEED, so it's no biggie.  We've had to change a few things in our lifestyle...but really not too many.  We're fortunate out jobs pay well for the hours we work and that we live in an area where housing is ridiculously cheap.  Many here would throw up if you knew how little our house cost just steps from Lake Erie..with a boat launch and a beach.  Our groceries are extremely cheap (fresh fruit/veggies stands abound here just steps from our house) and we now shop in the USA for our dry goods.  I saved $82 in coupons our last shopping outing!   Overall, we're very fortunate.  I feel lucky.  If something happens and we need to ramp up hours again, we can do so.  Such is the luxury of our trades.

Overall, I love not worrying about money, the hours and just focusing on living and loving life.  We both feel fortunate and don't regret making this decision.

Apart from a few details, we are in a very similar situation and outlook.

Good on you both!! My wife and I are in a similar situation, but not by choice.  My wife lost her job of 22 years last year due to downsizing.  As you can imagine she was quite upset and we were a little worried at first, but without a mortgage and a relatively small line of credit, we soon realized that it wont be that bad at all.  Like you we made the obvious adjustments to our lifestyle and realized a lot of our "gratuitous" spending was due stress issues of a working couple.  Too busy to make supper, "well lets go out", and "how bout spending next weekend at that B&B on the coast" and that type of thing!  Cut out that stuff alone and we saved a pile! Also, why do we need that commuter car anymore?  Sold!  Also, we are somewhat lucky that my job is such that i can basically work as much OT as i want and as I love my job, i work a lot more without getting stressed out about it.  My wife makes me a nice lunch everyday and bfast every morning and supper when i get home to a clean stress free house!  I can essentially make my own hours, have a corporate vehicle that i take home everyday, so never have to pay for commuting and i can bring my wife along when i go somewhere interesting. 

I have many friends that are so mired in debt with their 6000 sq ft houses and all the other shaz they think they need, but have a hard time sleeping at night worrying about money issues.  It's been a year now since my wife has not worked and we have never been happier!

So Northernridge, based on the above, where should i put my 10k that i always try to invest every year over and above my company defined contribution pension?  I ususally spilt it between rrsp and tfsa.  I am a little leary of the investment strategy of my rrsp guy as he seems to want to open a new account rather than contributing to an existing one.  I have also bought some stock over the years, but not the brightest on that account.  I have about $40k on a line of credit mostly due to rennovations over the last few years, but no other debt.

[Northernridge]

Good stories. Mine is that I was kicked out of my house a month after I turned 18 after a...legal entanglement. I left with literally nothing but the clothes I was wearing. I got a union job unloading railway cars and working with a bunch of criminal resentful Teamsters inspired me to go to university. There I took a fancy to marketing, communications, graphic design and became fascinated about the idea of compelling masses of people that I didn't know and would never meet. Turns out I was good at it and started my own crappy business as soon as I left school.  I met a couple guys, started a real ad agency, grew it sold it and then started two more. I think I've learned a lot about the ins and outs of getting/having/blowing money but even more about self-reliance. These days I experiment constantly...with my time, investments, business, staffing, etc. I get to do my own thing so I like work a lot...I have no retirement plans so I have no 'go-date' to save for...so I sort of experiment with money too.