Everything Actually Costs 10x More

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This one’s a quickie.

If you’re reading this, I’m gonna assume you’re around 30. You’re here because you care about Money and Retirement, but you’re also reading this because you haven’t figured it all out yet. You’re not a Millionaire yet. That’s okay. Neither am I… but I can help you get there more effectively. All you need to remember is the title of this post. Here’s why.

Assuming you’re 30, you’ve got 35 years left before a standard retirement age of 65. Every $1 you put into an investment now, generating 7% interest annually, will turn into – wait for it – $10.68 BY 65! Do you know what that means?!? EVERY $10,000 YOU’RE ABLE TO PUT AWAY NOW IS WORTH $106,765.81 BY RETIREMENT!

Before you all jump on me saying 7% annually is unrealistic, I’m obviously talking about index funds that sometimes go up, and sometimes go down. The idea is that 7% is the average growth over a number of years, and you’re not gonna be dumb enough to cash out your index funds entirely right after a crash like 2008. When you decide to cash out, you’ll already be swimming in hundreds of thousands, so you can wait a little bit for the market to recover. You only need to withdraw enough to live on anyway, which should only be about $100/day for maximum happiness! Even that’s kind of extravagant.

For me personally, the US index fund I invested in has gone up 8.2% in the past 10 years. My MER is oddly high (and I’m gonna look into that), but even after factoring that in, my projection for 10-year growth is still about 7%. I’m not just telling you what to do! I’m also doing it!

Just remember: Spending $1 today is costing you $10 in the future. Save it, and invest it. And if you suddenly come across a windfall of $100,000, put it aside so you can become a Millionaire through no effort at all.

$1 + Time = $10.

Simple, right? Even a millennial like you can do it.

The Super Boring Post on Normal Retirement

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Normal Retirement at 65 is basic personal finance, which is why it boggles my mind that Most People haven’t figured this shit out yet. Up until yesterday, I hadn’t figured it out either. After all, it wasn’t too long ago I said Retiring at any age wasn’t likely. The truth is I was just lazy and hadn’t run my numbers yet. I just got back from the bank, and I’m now 100% set for Normal Retirement (NR). Here’s how I did it.

I have $13,174.09 in my RRSP right now. $8,605.79 is invested in a Select Growth mutual fund and $4,568.30 is in US Index. I plan to go even more aggressive in my investment strategy and put 80% into US Index. I expect that to return 7% annually. I’m only 27, so I have 38 years of growth to look forward to before I’m an old sack of shit who won’t want to work anymore. If I do, I’ll have even more money, but let’s just pretend I’m useless at 65. Using our trusty Compound Interest Calculator, let’s see what happens if I maintain 7% growth for 38 years without further RRSP contributions: $172,307.50! Not bad, but I can’t Retire on that. What if I put in $100/month, or $1,200/year? Holy assballs, we’re looking at $393,875.85! THAT’S ONLY ADDING $100/MONTH! That’s enough to Retire on. I’ll still have my Home inflating my Net Worth to $500,000+ and I’ll most likely still be Working instead of being 100% Retired. I’ll be even richer! And all it took was $100/month. Go, me.

Are you in your 20s? Right now is the absolute most crucial time to save. Did you know investing just $15,000 from the time you’re 20-34 means more than investing $35,000 from the time you’re 30-64? WHAT THE FUCK. If, at 20, you start saving $100/month and invest it in US index funds with a 7% annual return, you’ll have $366,902.12 by 65! Are you an overachiever? $200/month gives you a whopping $733,804.23! HOW ARE YOU NOT ALREADY DOING THIS? ARE YOU NOT AWARE THAT BANKS ARE MONEY MACHINES DESIGNED TO MAKE YOU RICH?

If you’re reading this, you’re most likely a Millennial with no hope of Retiring. I’m here to tell you Retiring is possible. NR can be yours for less than $200/month. That’s approximately the cost of NOT buying a $5 latte every day. It’s also approximately the cost of NOT going to a club filled with douchebags and racking up a one-night bar tab every month.

Your Future is in your hands. What means more to you? The Retirement you never thought was possible, or the soy-mocha-frap-fuckdrink you “can’t live without”? Buy a coffeemaker. Go to shitty clubs less. Treat yourself still, but not in a way that costs money. Go for a goddamn jog. Eat well. Read a book. You’ll be Rich in no time.

If you need me, I’ll be over here mathing how to put an extra $100/month into my TFSA. Maybe I can try for EARLY Retirement. I can’t believe how simple Getting Rich is…

What I Learned by Retiring for 2 Years

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Realizing I didn’t need a day job anymore was pretty freaking cool. I figured this out in 2014.

2014 was a year of both awesomeness and shittiness. I lost my dad that year. I also inherited the money I needed to get out of my substantial debt – $25,000 at the time. Since I’m the Dumb Ben though, I wasted no time at racking up more debt. I owe $19,000 now. More on that later. I was also able to get my place sorted out. I’m now the owner of a 99-year leasehold property in Richmond, BC. For those of you unfamiliar with leaseholds, I basically own the property, just not the land underneath it. I have 72 years left before I get booted out. I’ll be homeless at 99. More on that later too.

The remaining 72 years are all paid off. It was $170,000. The strata fees and property taxes are 100% covered by the rent I charge my roommate. I’m super lucky, and as I type this, I can already hear the lynch mob forming. At 27, I don’t have rent.

That’s not to say I do nothing. I have a successful wedding photography business, and charge up to $4,400 for my packages. I hardly count it as Work though. I love every part of what I do, and outsource the stuff I don’t like, like editing. On my last $4,400 wedding, I outsourced virtually everything except the actual photography. Time investment: 1½ days. The lynch mob is banging on my door now.

So with my photo “work”, food was covered too, and then some. Now what? For me, the answer was Retire. Sure, I’m cheating a little bit, but I was “working” around 30 days a year, and was frugal enough that I could live off that. I don’t care what you say. I was fucking Retired.

No lies, it was great at first. I could get up at 4 PM, slam two beers, play Minecraft until 9, then hit the pub. I got to see my friends and family whenever I wanted. I’d go on adventures, disappearing into the US for weeks at a time. I even made it to the UK for my friend’s wedding, and made some great memories there. And then… I just sat on my ass a lot.

Like, A LOT. What I didn’t know was the first 40 hours of Minecraft are pretty fun. The next 200 hours are significantly less so. I started gaining weight. I developed a drinking problem. My mental health started to suffer. Getting together with my friends got more challenging, since they had work and families, and I just kind of had… nothing. My life, without Work, suddenly had zero Meaning. I was suddenly a depressed slob who couldn’t remember the last time he’d had a shower. Since I only ever worked at weddings, and was always too focused on taking pictures instead of interacting with people, I’d often go weeks without an actual conversation. I mean, it’s no wonder so many people die right after retiring. Read this. Without a purpose in life, even if that purpose is as silly as earning money, why go on?

I realize this sounds like the privileged whining of a 1%-er, and in many ways, you’re right. I have what a lot of people want. I thought I wanted this too. I want you to reconsider Retirement though. What would you REALLY do if money were simply not an issue? What would you do with your life if you had an extra 8 hours every day? If you’re the type of person who’s so hard-working that you can Retire early, what makes you think suddenly having NOTHING to do will make you feel good?

After two years of mild existential terror, I figured it out. Retirement wasn’t about doing nothing. It was about finding out what had Meaning to me. Meaningful employment is important, even if it doesn’t earn a bunch of money. I currently sell wine to people for $13/hour when I’m not shooting weddings. I don’t need the money, but it gets me out of the house. I don’t drink as much now. I shower more often. I have real conversations with people. I get to talk about fine beer, wine and spirits, which is a passion of mine. And to top it all off, the money I make goes into getting me out of debt, and profitable investments for the future. I had Meaning again. I was choosing to Work. Even though I’d “made it”, I needed Work to feel whole.

Rethink Retirement. You can Retire and work on something you love, and if it happens to make enough money for you to live on, guess what? You’re Retired! Get a job that doesn’t feel like Work. Get a job that gives you more Time. Get a job that has Meaning. I know it’s not as simple as all that, but make it a goal. All of this is better than the fantasy of never having to work again. Trust me, you’d probably hate it.

Oh, hey. That lynch mob is ringing the doorbell. I should probably let them in.