My Five Streams of Income

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According to this, “65% of self-made millionaires had three streams of income” and “29% of self-made millionaires had five or more”. Meanwhile, this article starts breaking down “7 different income streams”, but some of their recommendations are things most of us should be doing anyway, like investing. Other ones are downright odd. Do you consider your spouse’s salary as a stream of your income? I don’t. I don’t think you should either.

For this article, I’m laying out the five streams of income I actually count. If you count my index funds or the fact I’m technically a SOCAN-recognized composer who’s only earned pennies in royalties, I have more. I’m mainly counting my side hustles that actually put money in the bank though. This is how I make my money.

My main gig is I’m a wedding photographer. My smallest package is $990 (two hours) and my largest package is $4,995 (twelve hours). My secondary gig is as a liquor store clerk, making a paltry $13.50/hour. I could choose a more lucrative job, but this is pure fun for me. I could spend all day talking about wine, and I’d actually be less happy making $20/hour doing something I didn’t care about. My third gig is as a landlord. In March, I’ll be looking after two renters/roommates, and you should know this is actually more work than I thought. For now, any rent money I make is going back into renovating the property. Both bathrooms need to be redone, but this is an investment for the future. A beautiful bathroom will enable me to charge more for rent once my friends move on. My fourth gig is I write for pay now, and make $0.15/word on assignments. This is currently super fun for me! I can do this anywhere I want, and if I had an idle gig where I’m just needed as a warm body — think security guard or exam invigilator — I could be earning twice the pay for the same hours! In just one week of November, I was able to bill a startup $225 for three short blog posts. I’m looking at developing this as one of my main sources of income in the next few months. My last gig is a questionable one, but it technically counts as investing. This one deserves its own paragraph.

Early in November, I started dabbling with cryptocurrency. I now own small slices of Bitcoin, Ethereum, Litecoin, and IOTA. In just six weeks of casual trading, I’ve put in $800 and I’m somehow $500 ahead. Before you drop everything and throw your life savings into Bitcoin though, you need to understand the technology and the risks. This is why I consider my cryptocurrency investing a “gig”. I read this and this in the past month, and I stay up-to-date on trends. It’s a job. I don’t advise you getting into cryptocurrency blindly. Everyone thinks they can time the market, and people have lost their life savings believing that. I’m fully aware I could lose my entire investment at any time. If you try this, proceed with extreme caution. I know friends of friends who have lost $10,000. Know the risks. This, as a hobby, is my fifth and final gig.

You’ve heard of “fuck you money” (FU$), but I love the idea of my multiple “fuck you jobs”. Liquor store lays me off? That’s fine. I can replace a whole month of clerk income with a single wedding shoot. Roommates moving out? A little extra writing, and I’ll still make my strata payments on time. When new roommates move in, rent will actually go up because of the shiny bathrooms! If I lose my entire crypto investment? My index funds are still making profit, and I’m sure I can come up with something to make up the loss, like renting out my camera gear. I truly believe YOU CAN ALWAYS MAKE A BUCK. With full-time employment becoming less and less stable, diversifying your streams of income is just as important as diversifying your investments. It’s just the smart thing to do!

Remember: “65% of self-made millionaires had three streams of income”.

How’d you like to be part of that statistic?

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Losing Weight Is Saving Me Money

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A year ago, I went toe-to-toe with our artist friend “A” on food spending. I did not do well. Where I spent “$1,340.83 [in] November on comestibles – $902.33 on food, $438.50 on alcohol”, “A” spent “only $360/month”. I’m still not nearly as badass as her. I’m still not vegan, and I still spend most of my money on what I eat and drink. Here’s a quick breakdown of October 2017.

I ate out a stupid amount. After wrapping up my cooking-at-home experiment, I thought I should treat myself. Obviously, this was a bad move. I even paid for some friends’ meals, and ended up with a food total of $760.17. I was fucking stupid. It wasn’t even luxury food! I toned down on booze though — thanks to this, this, and this — and ended up with an alcohol total of only $311.90. (To see how far I’ve come, check out January 2016’s total of “$1,120.27”!) Total food and drink cost for October 2017? $1,072.07. This, I consider my most recent baseline. I was eating and drinking as much as I wanted, and no diet or even a modicum of restraint was applied here.

In November, I knew I wanted to make a change. I wanted to be the best 30-year-old I could be, and that meant getting down to 163 pounds. Intermittent fasting and other dietary measures made a reappearance, so my sushi lunches and Subway sandwiches got swapped out for frozen chicken, conveniently-packaged-yet-still-affordable spinach and kale, and boatloads of beans. Alcohol crept up (and so did the discovery of an amazingly expensive izakaya) but I managed to only blow $531.84 on food, or $17.73/day. Alcohol came in at $401.50, or $13.38/day. Total for both: $933.34.

These numbers weren’t the extreme improvement I was expecting, but saving $138.73/month with better health is still a victory! I successfully hit my weight goal, and virtually every meal I eat now involves half a plate of greens. Also, we’re currently 11 days into December, and I’m watching my food expenses like a hawk. Though I expect our Christmas dinner to break the bank, I’m only at $85.78, or $7.79/day for food. That’s the way it should be. Only improvements from here on out!

As a final note, I realized beef was killing my budget. A particularly ambitious brisket set me back $50.06 at one point, and though it was good for multiple meals, it’s hard to justify when 3kg of frozen chicken also good for multiple meals was only $10. Also weird: I don’t miss beef! Maybe I’m doing it wrong, but a steak hasn’t wowed me in years. Smoked beef ribs will always hold a special place in my heart, but I don’t intend to buy a $3,999 smoker ever. It’s also worth noting “beef requires 28 times more land, six times more fertilizer and 11 times more water” than pork, chicken, dairy or eggs, and that drain on resources is reflected in the price. Even if environmental reasons don’t convince you, the price should. 1kg of prime rib is $30.66. 1kg of chicken is $7.41.

In short, being mindful about what I eat actually saves me money! My health, the environment, and my wallet all benefit. At this point, it’s only logical to eat less, eat more greens, eat less beef, and bank the savings. My $138.73/month in savings is $1,664.76/year. If I keep this up until I’m 65, that’s almost $60,000! An extra sixty-grand to live longer and make the world a better place? That’s a sacrifice I’m willing to make.

Got beef? Let’s take it to Facebook.

I’ve Fallen In Love With Work Again

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Well, it’s winter. I’m almost done my wedding photography obligations, and as usual, there are no bookings in December. From here on in, I can just coast into 2018 with entire weeks off if I wanted. It’d be my reward for a job well done after an entire summer spent scrambling for more clients, new marketing materials, and the perfect shot. Yep, it’s time to lay low, and do nothing…

The only problem is I can’t sit still.

In fact, I’ve never been more motivated to ride this wave of productivity straight to the bank. Here’s what I’ve got going on.

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I’m almost 30, and reading Debts To Riches last month inspired me to crush my debt and increase my net worth in a huge way. In November, I took on extra shifts at my side job, knowing that every $1 I invested would eventually be 10x more. I cranked out three 500-word articles for a startup in my spare time, and made a quick $225. I sold off old hard drives that were gathering dust, and made a few hundred there too! My tiny RSP then ballooned to a solid $20,000+, and I’ve also set the stage for future productivity! I’m finally redoing my photography website, and it should be live by the start of 2018! It’s been go-go-go!

Though I could relax with some cheap entertainment after all this, I found that riding my wave of motivation was actually more fun. With 30 just around the corner, I wanted to start off as the best 30-year-old I could be. I even reexamined my fitness goals, and did a replay of January. Through healthier eating, intermittent fasting, increased exercise, and temperature manipulation, I finally brought myself to a healthy BMI for 5’ 8”: 162 pounds! It’s not just money-making work I’m doing; I’m also putting a lot of work into myself.

For me, this never would’ve happened if I didn’t surround myself with people and messages that encourage self-improvement. I spend more time with personal finance nerds now, and less time with people who naysay or joke about being shitty. This was perhaps the best decision of my adult life. I don’t say this lightly, but being a literal millionaire is within reach now! (On our Facebook, I’ll happily show you the math.) All it took was being around people willing to become the best versions of themselves they could be.

If you make self-improvement a hobby, you’ll be fucking unstoppable. You can always make a buck. You can always burn a calorie. You can always learn a new skill.

What do you want: more screen time, or a better you?

See you at the top!

It’s All About The Benjamins

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As this blog has grown in readership, our identities are out there more than ever before. People close to us know all about our “Rich Ben, Poor Ben” dynamic, and Unconbentional has popped up in our real lives in some seriously surprising ways. My roommate’s mom in Kamloops had a friend send her one of our articles. I started reading another personal finance blog, and found a link back to us. Our strong opinions on personal finance have both won and lost us friends. Whether we like it or not, Unconbentional is a part of our lives now. Well, it’s been a long time since we’ve done a “Rich Ben” update, so I shot Ben a line in NYC. He’s not as used to the infamy of running a blog like I am, so I can’t report hard numbers. In any case, I asked him what I could tell our readers.

Ben is “still aiming for [FI by] 33, still making ‘$100k+’.” He’s living bigger than the old Ben I knew, but at his salary, he can afford to. I asked him what he’s been up to.

In the 1.5 years since I moved here, my net worth has doubled.

“This year I traveled to Mexico, Vancouver, Poland, and England (and I plan to do a similar amount of travel next year, not sure where yet).

[…] As you would expect from the doubling, about half my net worth is CAD, and half USD at this point.”

FYI, the “$100k+” he’s making is in USD. Even if he’s only making $100,000 even, that’s currently $127,700 CAD. Holy crap. (In my early years freelancing, I’ve been below a tenth of that before. Ben’s killin’ it.)

“I did my best to calculate my savings rate, and it’s actually a lot better than I expected, unless I’m missing something: 63% for the past year (Nov ’16 through Oct ’17). And that’s excluding the money I got back from my taxes, because that’s probably just for this year.

[…] In fact, let me revise further to about 56%. I’ve only done some very rough math”.

As you know, savings rate is arguably the most important indicator for early retirement. I’m happy to report my savings rate for November is on track, and I’m at 30%.

Rich Ben will be FI in four years, and Poor Ben – me – is planning on working forever (for reasons like this and this). I’m still paying down debt, but my savings should get a massive boost in March 2018 as I take on another renter. I expect to save a minimum of $300/month (or $10/day) from now on.

Knowing that every $1 I’m able to invest now will mean $10 by 65, I’m doubling down on work as well. For this reason, I’m scaling Unconbentional down to 2 posts a month for 2018. (It used to be four.)

This is also due to the fact I’m a paid copywriter now! A startup recently hired me to write on topics like real estate and credit, and I’m receiving $0.15/word! I’m disappointed to scale back on Unconbentional, but I’m confident this will bring up the overall quality of our posts instead of rehashing the same old crap. In a way, I’m still writing four posts a month. It’s just that two of them are for that startup now, and I’m pretty stoked to finally get paid for my time.

Anyway, that’s us! What are your goals for 2018?

Featured Blog: Debts To Riches

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A few months ago, I decided to connect with my local mustachian community in Vancouver, BC. The plan was simple and appropriately frugal: Get to a nearby lake, hike, and meet personal finance nerds. That was it. No fancy drinks at a bar, and no unnecessary spending. Since I certainly don’t save >50% of my income like these guys, I was out of my depth. They all brought food from home. I had bottled water. Some of them were already retired. I never intend to retire. Some were almost millionaires. I still have debt! It was quite the shakeup. And yet, I knew I needed to meet them to reorganize my life. Though I’ve been writing about personal finance for two years now, I’m actually quite lazy and complacent, and I often have trouble following my own advice. Then, on this trip, I met Veronika.

Her story scared the crap out of me at the time. Her tuition and past living expenses resulted in a rewarding job, but she graduated in May 2015 with a staggering $130,455 in debt. Remember how $22,535 in debt led me to make a bunch of bullshit justifications about it? This news damn near killed me! And yet, Veronika didn’t seem too bothered. Quietly confident, she seemed as calm and relaxed as our retired new friends. HOW?!?

Well, I just blazed through her entire blog Debts To Riches, and I’ve gotta hand it to her. She’s executing her debt repayment plan with such laserlike efficiency, her debt-free and financial independence targets are boldly laid out in her intro: “DF: 2019 | FI: 2031”. If this doesn’t seem possible to you, I think it’s time you read her blog! It’s more than possible. She’s doing it.

Debts To Riches is peppered with money insights I haven’t seen anywhere else. She believes that “psychology > math” when it comes to saving, and this led her to write the most actionable personal finance articles I’ve read. Math is great, but what about maintaining motivation? If that doesn’t interest you, the numbers should. She started with $130,455 in debt just two years ago! As I write this now in November 2017, she’s crushed that down to $93,400 – a $37,000+ difference! Debt-free by 2019? Financial independence by 2031? I believe it. If you want insightful, eloquently written personal finance advice for real humans and not savings robots, look no further. Stop reading this.

Read Debts To Riches now.

Let’s Start a HouseFIRE!

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You already know about FIRE (Financial Independence, Retiring Early). Heck, you might even know about LeanFIRE and FatFIRE — retiring with the expectation of spending <$40,000/year or >$100,000/year, respectively. You probably even know about CoastFIRE! Well, allow me to add more fuel to the FIRE! This post is all about “HouseFIRE”, and why you should care.

So what is HouseFIRE? Simply defined, it’s the stage you reach when you can retire from work just by utilizing your available real estate for money. That link has loads of tips, but if you’re a Vancouverite, you might have to get more extreme. Since I wrote this post, Vancouver’s average rent for a 2-bedroom unit has ballooned to $3,130, and landing even 1,000 square feet for that is near impossible! If you want to attempt HouseFIRE, you’ll need actual space. For that to happen, high-cost-of-living areas won’t work great, but nearby neighbourhoods might. You may find yourself with lots of space for the same housing cost just one town over! Here’s how I do it.

My $170,000 99-year leasehold is paid off, and it’s mere minutes from Vancouver. I have it until 2087, and the total from strata fees and property taxes amounts to $650/month (which I know is high). It’s a 3-bedroom condo, but one bedroom is currently an office for my photography business. I have the master bedroom, and a roommate lives in the remaining room. His rent covers the $650 I mentioned. My plan now is to relocate my office to our underutilized living room, and I’m turning the old office back into a bedroom I can rent out. When that’s finalized in March, I’ll be collecting $600/month on both rooms for $1,200 total. My strata obligations will most likely be near $700 by then, but I’m still looking at $500+ in profit! If I could live like “A” did, I’d be HouseFIREd! (“A” was living on $700/month, and paying $200 for rent. $500 for her other expenses covered it all!)

There are even people in my family who could be HouseFIREd. Mom, for instance, lives alone in a 4-bedroom townhome. If she took the master room for herself and rented the other three rooms to students, that could mean $1,800/month! If they chip in for utilities, that reduces her expenses even more! I think $1,800/month is perfect to live on. That’s about in line with what I spend now!

This is a great strategy for empty nesters. Instead of downsizing, they can maintain the value in their appreciating property, and have a source of extra income. Instead of thinking about retirement in just dollars, consider HouseFIRE! Can you retire on square footage alone? I bet some of you already can. Do it.

Working Forever Might Not Be So Bad

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Taken from a previous post:

FIRE [Financially Independent, Retired Early] is generally defined as the stage a person reaches when the return on their investments is enough to cover their living expenses. A quick bit of math you can do to figure out your FIRE number is to take your annual expenses and multiply by 25. (If you spend $25,000/year for example, your FIRE number is $625,000. Start saving.)”

You can read the rest of that post here, though my description of FIRE isn’t as accurate as it could’ve been. For one, since this is such a huge topic, I didn’t exactly account for inflation. The truth is if you’re 30 now, you want to aim for $1M by 65 if you want to Retire For Good (RFG). This is because $1M in 35 years only amounts to $500,000 of today’s spending power, or $20,000/year in returns based on the 4% rule. This also assumes you can live off $20,000/year. Some people can’t. From this point forward, please note I’ll be using a tilde (~) to denote future value, and no tilde to denote today’s value. Here’s a post to help you math out your saving goals now, based on ~$1M/$500K/$20K. Read those links, and the math should all make sense.

In any case, I now advocate working in some capacity forever. Here’s some of the reasoning as to why, but this little bit of math should convince you that working forever might just be the way to go. (Trust me, it’s not as bad as it sounds.)

If $20,000/year is the goal, it’s very possible that someone at 65 could make that without too much effort at all. Remember, that’s only $1,667/month. In Canada now, what you can receive from Old Age Security ranges from $526-$874. Let’s aim for the low figure of $526, and subtract that from $1,667. (OAS is considered taxable income, so keep that in mind. Also, not everyone qualifies, so read this.) You’re now left with $1,141. Let’s also assume you have some savings. Let’s say you missed ~$1M by a wide margin and only landed at ~$400,000, or $200,000 of today’s value. Going by the 4% rule which spits out $667/month, that takes you down to $474. Now, I don’t know about you, but making $474/month, even in old age, seems entirely manageable to me. When retirees somehow watch 6.2 hours of TV a day now, making $474 per month working is a better use of time and will help you retain your health. This would only mean 31.6 hours per month at $15/hour. If that sounds bleak, it shouldn’t. At $20/hour, that number’s 23.7, or only 3% of your month! That’s only if you’ve completely messed up your retirement savings! If you’ve saved ~$1M, you’re done! You can coast! But if you’re like the rest of us and see yourself only reaching ~$400,000, you should understand you can work after 65 in a way that will actually be flexible, easy, and good for you, and you’ll still be perfectly fine!

Obviously, planning for old age can be kinda scary. There’s always the possibility poor health makes it impossible for you to work. This is why you should aim for ~$1M.

Society teaches us retirement is black-and-white. It’s not. Loads of retirees continue working to supplement their income. If you save properly now, you won’t have to work at 65, but you’ll probably want to anyway. I know I will. And even if you fuck up and don’t save ~$1M in this lifetime, a little bit of work after 65 can go a long way.

6.2 hours of TV time a day is 186 hours per month. Can you use <24 hours to plan yourself a more secure retirement, or are we crazy?

Let us know on Facebook. We’ll put any feedback in a future article.