Can’t Handle FIRE? Try To HEAL!

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It’s 6 in the morning and I’m on a SkyTrain headed into Vancouver. From the looks of it, I’m the only one not on his way to work. The suit next to me is reading Bloomberg articles on his phone, and half the passengers are nodding off. I can’t imagine most of them want to be here. I’m listening to Taylor Swift on my iPhone and enjoying the ride because I have nowhere I need to be. My only goal for today was to write this, and I can do it from anywhere! This is the story of how I found freedom and lifelong happiness at 29. Hopefully, by the end of this post, you’ll be on your way too.

If you haven’t heard of FIRE before, it’s an acronym in personal finance writing that stands for Financially Independent, Retired Early. The Physician on FIRE guy? Not actually on fire. He’s just a family man who achieved financial independence at 39. You see “FIRE” kicked around a lot on the MMM forums too, and it’s a goal of many. It turns out most people don’t actually want to work for a living! I mean, given the choice between lounging by a pool in Guadalajara and a lifetime of office drudgery, most of us would be marching out on our bosses and guzzling Corona in no time! Well, I’m here to tell you things aren’t actually that simple. You might not actually want FIRE! To understand why, let’s take a closer look at its definition.

FIRE 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.) The reason for this is 4% interest is a generally accepted estimate of how much you can reliably make off the average portfolio. It’s somewhere between too-safe 2% GICs and somewhat-risky 7% index funds, and 4% just kinda became the default number. At any rate, I have no reason to dispute its logic. 4% certainly makes sense to people far smarter than I. However, FIRE is no longer a goal of mine. Part of the reason is the numbers are outside my grasp — I’ve done the math and I have no delusions about my ability to save — but I’ve also grown up a bit and experienced a different view of retirement. I now know what it’s like to barely work at all, and what I’ve found is it actually totally sucks! I needed to create value in the world to feel fulfilled, and sometimes, people were willing to pay me to create that value! Why wouldn’t I take the money? So what if someone might define that as “work”? Retirement sounds great on paper, but do you never want to work for anything ever again and just lie back and consume? Fuck, no!

With this in mind, I started optimizing my lifestyle. I needed freedom whenever I wanted, some work to feel useful, autonomy in my professional life, and enough money to have fun. FIRE wasn’t the solution because many FIRE followers try to frontload all their earning towards their early years working brutal hours, then they putter around not knowing what to do with themselves as soon as they retire! The Mad Fientist retired at 34, spent months travelling, then “realized it wasn’t making him happy”. Mr. Money Mustache basically went back to work doing construction and managing rental houses. If FIRE is so great, why are so many success stories plagued with ennui or employment akathisia? Well, it’s because full-on, work-hard-now-to-never-work-again FIRE is just too extreme. Fundamentally unbalanced, it takes too much effort in early life and too little effort in later life. In theory, it’s a great goal to work towards, but maybe there’s a better solution that can give you the good life now. I call it “HEAL”.

HEAL stands for Half Employed, Adjusted Living. It’s my way of describing a balanced lifestyle that involves half or less of a typical 40-hour workload, and adjusting your lifestyle to afford that freedom. You can achieve HEAL in a variety of ways, even if you’re young. For example, you can bump your income up so you only work 20 hours a week and spend the same as before, or you can go frugal so you can live off 20 hours of regular pay. For most, going frugal is easiest. Part-time work and frugality are key to HEAL. Some people even bump up their income and go frugal, and those people have it made. Though they might even achieve FIRE, they know “no work” isn’t the goal. What you want is the freedom to only work when you feel like it.

Here’s my situation: The last time I calculated my monthly spending, I arrived at $1,948.18. I’m bringing on a second roommate in a month or two, and the rent I charge him will cover my entire Bills category, eliminating at least $447.29. This puts me at just over $1,500 I’d need to cover in income. Working 20 hours a week at my low-pay liquor store job would net me about $1,100, and the remaining $400 could easily be covered by any photography booking! In fact, since I bill $400/hour to shoot weddings, even a single 8-hour booking covers me for 8 months! (The photography work is spotty, so I’m hesitant to provide monthly numbers. It fluctuates from $0 with no bookings to months like April 2016 when I somehow earned $6,353.41 without even shooting a wedding.) Naturally, any excess income from photography goes straight into paying off my debt, and once that’s taken care of, I’ll be trying to max out my TFSA! I’ve got this whole “HEAL” thing down! I’m “Half Employed” and my “Adjusted Living” made ~20 hours a week work for me!

If HEAL sounds good to you, here’s some recommended reading. First off, if you’re still unconvinced that you might actually want to work for the rest of your life, check out our previous blog post, “I Want You To Half-Retire (HR)”. Finally, consider picking up the Marcus Arce book, “HALF RETIRE – How to Escape the Rat Race Without Waiting to Win the Lottery!” At a cursory glance, the math in it checks out. I’m using strategies from it already.

By realizing I wanted HEAL and not FIRE, I’ve freed up my younger adult years to do whatever I want while working just the right amount to be even happier. Click the links in this post and all over this blog, and read them. People need work, and yes, I do intend to work even when I no longer have to! If you think of Work as a dirty word, it’s because you need a better job!

At 29, I’ve found the lifestyle I intend to have forever, and I didn’t even have to worry too much about retirement. What the heck is stopping you?

Let’s Check Back In With Our Artist Friend, or Why Inflation Sucks

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Those of you who have been following us for over a year might remember “A”, our mysterious artist friend who made only $700/month, but who also found a way to set herself up for a luxurious retirement in the future. When that article came out, some people were understandably pissed. It “isn’t applicable or attainable for everyone, and is really more based on fortune than hard work”, one reader said. Well, she’s not wrong. Living like we do isn’t attainable for anyone not willing to put in the work to optimize their lifestyle. And “hard work”? Please. Smart work is where it’s at, and being frugal is the result of a lot of that smart work.

“A” is still out there plugging away, and two things have happened since we last spoke with her: 1) She makes more now, and 2) some modest lifestyle inflation has crept in! Let’s take a look at her numbers.

A year later, her art is still her main source of income, but “A” is also knee-deep in side hustles. She now teaches art a few times a week, and professionally walks dogs on the side. Her monthly income is now $1,000. Rent is now $300, up from $200 last year. (She started making more, so felt it was only fair she contributed more to her household.) She eats well, though frugally. Her personal spending budget went up to $75 from last year’s $50. Her vacation fund is currently $100/month, and that all goes into planning future trips. As if that wasn’t enough, she also donates 10% of her income to charity – apparently, you don’t need to be a billionaire to pull a Jim Pattison – and somehow, through ALL THESE ADDED COSTS, she HASN’T tapped her $14,000 emergency fund, and she’s actually ADDED $5,000 to her savings and investments! With roughly $60,000 in the bank and her investments churning away at 7% return, she’s now on track to have $839,000+ by 65!

Now, for some people, this might all seem pretty extreme, but what if I told you a lot of math is actually working against her, and us as well? What if I told you WE SHOULD ALL BE SAVING LIKE THIS IF WE WANT TO RETIRE? Unfortunately, because inflation is a key concern for retirement, we should all be aiming for close to $1M in 30-40 years! (Here’s a post to help you with that.) Assuming an average of 2% inflation per year, “A’s” future $839,000 is worth only $387,000 of today’s buying power when she turns 65 in 2056! Because “A” is somewhat of a genius though, she’s accounted for this. Assuming even that she spends all $12,000 of her annual income to support her current lifestyle, her “$387,000” is enough for 65-year-old her to live on FOREVER as long as it’s invested in something generating just 3.1% interest, which could be a VERY real number for someone investing conservatively in old age! For “A”, the math checks out! For the rest of us, we need to save and be frugal AT LEAST as much as “A” is doing!

At 26, “A” has saved and invested enough that no further contributions are needed to support her lifestyle in old age. She could just blow all her work income until 2056, then sit back and relax. I want this for you too!

If you’re a millennial, you NEED to account for inflation in your retirement plan. Here’s a handy calculator. The reality is becoming a millionaire in our lifetimes is no longer an unattainable dream, but PRACTICALLY A REQUIREMENT to Retire For Good someday! How well prepared are you?

If you need help running your numbers, message us on our Facebook. We’re already helping followers plan for their future, and it’s a lot of fun for us! Seriously, we just want to help.

Is full-on retirement seeming unattainable now? It’s not the end of the world. In our next post, we break down MY plan for the future. I expect it to seriously annoy the naysayers.

How To Get Your Kid Set For Retirement

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I’ll just cut to the chase: When your kid is born, put $12,400 in an investment generating 7% interest, and they’ll be a millionaire by 65. I know that sounds crazy, and I’m making a LOT of assumptions, but you can find all the justifications for my logic in this post here. Again, this is presented as data ONLY. Listen up, new parents. It’s time to make your kids millionaires.

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All of these equal $1M:
0 – $12,400 x 65 years of 7% growth
1 – $13,200 x 64 years of 7% growth
2 – $14,100 x 63 years of 7% growth
3 – $15,100 x 62 years of 7% growth
4 – $16,200 x 61 years of 7% growth
5 – $17,300 x 60 years of 7% growth
6 – $18,500 x 59 years of 7% growth
7 – $19,800 x 58 years of 7% growth
8 – $21,200 x 57 years of 7% growth
9 – $22,700 x 56 years of 7% growth
10 – $24,300 x 55 years of 7% growth
11 – $25,900 x 54 years of 7% growth
12 – $27,800 x 53 years of 7% growth
13 – $29,700 x 52 years of 7% growth
14 – $31,800 x 51 years of 7% growth
15 – $34,000 x 50 years of 7% growth
16 – $36,400 x 49 years of 7% growth
17 – $38,900 x 48 years of 7% growth
18 – $41,600 x 47 years of 7% growth

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By this logic, you should actually reconsider sending your kids to university! The average four-year university undergraduate degree costs $84,000! DO YOU KNOW WHAT THAT CAN DO FOR A 23-YEAR-OLD? Invested at 7% interest – (I know some of you are still skeptical, so here’s further justification from someone far smarter than me) – THEY’D HAVE OVER $500,000 IN THE BANK BY 50. Wait 10 years more AND THEY’RE MILLIONAIRES. Here, crunch some numbers and get back to me. What’s especially wild is these are essentially set-and-forget investments: NO FURTHER CONTRIBUTIONS NEEDED! How are NO new parents doing this? It’s goddamn insane! Index funds, FTW!

If I’d known at 18 what I know now, I would’ve skipped post-secondary entirely. One of the richest and most successful people I know didn’t have any formal schooling AT ALL. Another friend is an artist and is set to retire with $800,000+. It turns out financial success isn’t all that linked to skills or intelligence at all. All you need is (a little) Money and (a lot of) Time!

If you completely ignored my post about not having kids, don’t ignore this one. Making a new millionaire from scratch costs $12,400 and your kids will be grateful forever. I don’t know about you, but that sounds like the best damn deal I’ve ever heard.

Wishing you and your kids riches,
Unconbentional

The 5 Love Languages, and How Knowing Them Can Save You Money

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This is gonna be the sappiest post I’ve ever made, so buckle up. There ain’t no brakes on the love train. I’m gonna show you how to improve your relationships AND save a boatload of money. You don’t even need to read this book! Since I’m a huge fan of book summaries, let’s see if I can knock this out in 700 words. It’s time to make YOU sexy and rich.

Listen, unbridled generosity sucks. In this article, I discouraged people from spending money on their loved ones when there are so many free ways to show you care. “Be generous with your time,” I said. Well, love is a tricky thing, and I was foolish to oversimplify. The fact is: EVERYONE EXPRESSES AND ACCEPTS LOVE IN DIFFERENT WAYS. In Chapman’s book, “The Five Love Languages”, he outlines the five main ways people show and accept love: quality time, devotion, physical touch, words of affirmation, and gift giving. Take a wild guess which one’s my least favourite.

Anyway, how I express love – in the past, gift giving – wasn’t necessarily how my friends or partners RECEIVED love. In my mind, because I’m such a cheap bastard, a gift that cost me MONEY was a big fucking deal. I once bought a $500+ smartphone for a partner, for instance. To her, my gift wasn’t valuable because that wasn’t a form of affection that spoke to her. Needless to say, that relationship ended quickly.

This doesn’t just apply to romance either. After some reflection, I realized I also don’t give a shit about gifts, and in many cases, took my family’s generosity for granted. They put me through my post-secondary, for example, and I really didn’t VALUE that at the time (though I do now). My mom also performs unexpected acts of service for me to show her devotion, but these usually end up inconveniencing me in annoying ways, like that time she decided I needed a tune-up and I was like, “Uh, where the fuck is my car?”

Whether you’re trying to save money or not, it’s important in any relationship to figure out what forms of generosity really speak to your loved ones. Expensive gifts or events are almost never the solution. One of the worst offenders to come to mind is going out for a movie together. “Hey, let’s go spend quality time together by staring at a screen and not talking for two hours! This is how people form close bonds!” Ridiculous, right? There is, however, a caveat in all this… I mean, what if your partner ACTUALLY accepts love in the form of gifts? Like, what if, in all sincerity, that’s what you have to do to keep them around?

Well, decide if that’s worth it for you. No lies, this’ll probably fuck with your FI plans, but life’s about more than money. If necessary, communicate that giving gifts isn’t how YOU show love, and hope they understand. It’s rare to find relationships where your “love languages” align, but now that you’re aware of that, you can: a) stop blindly throwing money at things and events in the hopes that someone will like you, and b) start communicating in a way that will make your relationships stronger!

Figure out your “love languages”. Learn how you each GIVE and RECEIVE affection in a way that’s meaningful. Do your best to keep money completely irrelevant. This won’t make you rich overnight, but it’ll help.

In my monthly spending breakdowns, I used to have a line item for gifts, but I don’t anymore. My relationships are better than ever. As always, keep more money in your pocket and use it on what REALLY matters. Besides, if you have to constantly buy out your loved ones, you’ve got bigger things to worry about. Here’s to a richer and happier you.

Penny-Wise, Pound-Foolish

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If you’ve been following Unconbentional for a while now, you know I love introducing minor changes to your spending so you have money to invest. I’ve talked about saving amounts as small as $2/day cycling or 26¢/coffee just so you can keep adding to your bottom line. What I haven’t told you up ‘til now is that most of this is useless if you’re still an idiot about large “one-time” expenditures. Obviously, that’s common sense for a lot of you, but maybe it’s not because if I’m reading this right, the average Canadian is still blowing $40,100 on their new vehicles! As if that wasn’t enough, the current trend is fuel-guzzling SUVs over a regular “fuel-efficient” car! Don’t even get me started on rent. Some people I currently know spend as much as $1,500/month on living expenses when a little thinking-outside-the-box could turn that into $300! Here’s some quick math, if only to make you reconsider your next major purchase. I firmly believe that ANY purchase over $100 should be: a) something that SAVES you money, b) something that EARNS you money, or c) an EXTREMELY special occasion. (“Friday night” doesn’t count.) I know you know this already, but it’s hard to argue with numbers. Here we go.

A $40,100 vehicle represents the money you’d save on gas alone from about 55 years of cycling 15 KM a day instead of driving, or 301,125 KM. The circumference of Earth at the equator is 40,030 KM, so that $40,100 SUV you just bought is equivalent to what you’d save by circumnavigating the globe 7.5 times by bike. If we’re talking about saving 26¢/coffee by buying one size down every time, we’re talking about 154,230 cups of coffee you’d need to do that with, or 422.5 years of one cup a day. By a single dumb decision – buying a new vehicle LIKE SO MANY CANADIANS ARE DOING – you’ve potentially nuked 154,230 tiny good decisions, OR just shat all over the savings from multiple lifetimes of cycling. Remember, shiny things are stupid. Beware the one-time expenditure.

This is only one example, but my point is you can’t pat yourself on the back for tiny good decisions anymore. You need to do the math on big purchases, and really think about how long it took you to get there based on your frugal decisions. The other day, I was hosting a dinner party and spent $101.46 on two lobsters. I’d have to choose a Subway 6” sandwich over a much tastier sushi lunch 20 times to make up for that, and it kinda hurt to fork over that money. Sure, I’d mentally congratulated myself every time I bought a cheap sandwich, but I destroyed the benefit of ordering 20 of those in one night! You just don’t win as long as you keep making major purchases. If you’re frugal six days out of the week and go hog wild every Friday, YOU’RE NOT ACTUALLY FRUGAL! That puts you in the same boat as everybody else!

Don’t be penny-wise, pound-foolish. Saving nickels and dimes really don’t add up to much. Don’t let one or two big-ticket items set you back years of penny pinching. If you’re not careful, it takes only a day or some asshole car salesman to ruin your financial future. Watch out.

Roommate #2.5, or Why “K” Plans to Live in His Van

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If you’re willing to look at renting from a weirder angle, you could save about $1,200/month like “K”. This is how.

FYI: This is about more than van-living. Read on.

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First, my situation: My place has housed three people before, but since we’re now back down to two, we’ve readopted a revolving door policy for friends to come and go as they please. When we do this, we generally have one- or two-month arrangements and put people up in our storage closet for about $300/month. Since our guests only sleep in there and are free to use the rest of our apartment anytime, this is actually a lot nicer than it sounds. We have multiple TVs, a fully stocked kitchen, 1.5 bathrooms, and even an office! As proof of concept, we actually have a guest with us next month – “J”. She’s looking for a more permanent space with her boyfriend, but until she finds the perfect place, she doesn’t want to sign another lease. We make a little bit of rent money, and she has the flexibility to keep looking. Everybody wins!

Our friend “K” is gonna win hard in a few months too. Unfortunately, his current situation is a real money pit. In his own words: im paying 1375 plus hydro and internet which bring it to 1500. my plan is to sell my jeep for 14000 and get a 2007 Mercedes sprinter for the same amount roughly. i figure it will cost about 1000 to convert it into a living space, since it will just be a bed, side table and closet cause i dont need to have a kitchen or toilet. [More on this in a second.] ive lived in a honda crv(which was fucking terrible) then a jeep cherokee which was a bit better. then [“R”] and i lived in a mini van that we built a bed frame in and put a double matress with curtains and a battery system to power fans and our laptops without using the vans battery. also we had a solar panel on the roof to charge the electric system”.

Yup, he’s planning on living in a van. But wait! It’s actually WAY better than it sounds! Why? HE GETS TO USE OUR PLACE AS A HOMEBASE TOO! And he’s not sleeping in our storage closet, meaning I can still have short-term guests! WTF, RIGHT?!?

I should probably back up and explain. When “K’s” lease is up at his $1,375/month apartment (that costs him $1,500 after bills), we have an arrangement set up. He will, essentially, become our Roommate #2.5. His plan involves sleeping in his van, but he’ll also be living with us, using our kitchen, bathroom, and office space during the day. He’ll be paying ~$300/month, and in return, he’ll have access to all our amenities, like Internet, running water, and an actual goddamn mailing address. He won’t have any real bills! On paper, he lives here. In reality, the van is home, and because of that, he has the flexibility to take his home wherever he might need to go, whether it’s a job site or a vacation destination! Also, THIS FREES UP ~$1,200/MONTH OF HIS MONEY! Over just one year, HE SAVES ~$14,400 AND I MAKE ~$3,600! Again, everybody wins! It’s like a sort of “friend economy”. Instead of paying strangers for their services or housing, pay FRIENDS for what THEY can provide. Money and favours keep circulating amongst the people you care about, and everyone becomes richer because of it! Friend Economy 101!

Obviously, this really only works for young, single people like “K”. You can’t raise a family in a van. It’s hard to argue with the savings for people who can make this work though! In Vancouver, where a 1-bedroom goes for $1,900, having access to an apartment’s amenities while sleeping in your own space for ~$300 is a steal! Of course, finding opportunities like this isn’t gonna be a walk in the park. This is just one isolated example of a millennial living unconventionally, and saving shitloads because of it.

When possible, use and rely on your friends. “K” found cheap housing. “J” found a temporary place to stay until she lines up the perfect home. I found extra rent money. It’s actually ridiculous things like this don’t happen more often. If we all functioned better as a real community, maybe we’d all be a few thousand richer.

That’s the kind of world I want to live in. I’d sleep in a van too if it meant being able to invest an extra $1,200/month. Would you?

If You “Can’t Adult”, Stop Spending Like One

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Way back in 2000, I had an allowance of $5/day in early high school. I was supposed to buy lunch with it, but most of the time, I’d blow it all on a cup of overpriced coffee. Still, having no real savings to speak of and having no way to go into debt, I just kind of floated along in financial limbo. I only saw as far as my next cup of coffee, and The Bank of Mom & Dad ensured that would happen. My needs were looked after, and it’s not like I needed TWO cups of coffee in a day, so everything was good. For those few sweet years in high school, I didn’t need to worry about money. And you know what? I might want to return to that system as soon as next month.

No, I’m not going back to making daily withdrawals from The Bank of Mom & Dad. That’d be crazy talk. I’m frickin’ 28. No, what I’m doing is a sort of mental budgeting. Roommate “D” hit upon the idea recently when he withdrew a stack of $20s and made sure to only use one a day. Over a month, that’s only $600. If he wanted something that was $40, he’d have to go a day without spending anything. What he didn’t use could be carried over to the next day, and so on and so on. It was kinda brilliant. Going back to that allowance system made it so he never overstretched his budget, and when he ran out of money, he’d just stop. I NEEDED TO DO THAT TOO.

Obviously, this is nothing revolutionary. I was just happy to add one more tool to the financial toolkit. “D” reckons if he sticks to his allowance for June, his expenses should only be about $1,200 total, rent and all! Since I’m still having trouble getting below $1,500, this tool might be a godsend! I’m actually kind of excited for it because this restriction will force me to find low-cost, high-fun activities for entertainment, and that’ll help me for the rest of my life!

Can’t adult? Try going back to having an allowance. I know a lot of you are financially responsible enough that you don’t need this advice, but I also know some of you needed to hear this. Start with $20s for now, one a day, or adjust to your personal situation as needed. Maybe managing your money like a kid again is what you need to become a successful adult.

So You Want to Be a Millionaire…

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No 18-year-old has $41,600, but that’s pretty much the only thing standing between a high school grad and them becoming a millionaire in their lifetime. Yep, through the magic of compound interest, that’s all it takes to get to seven digits. Here’s how much money you’ll need to become a millionaire by retirement depending on your age. This data assumes you’ll retire at 65 and have your money invested in something that generates 7% interest. (You can find my justification for that number here and here.) It also assumes that: 1) You make no further contributions toward your nest egg, and 2) you make no withdrawals until you’re 65. This is presented as data ONLY. I hope you find it as interesting as I did.

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All of these equal $1M:
18 – $41,600 x 47 years of 7% growth
19 – $44,500 x 46 years of 7% growth
20 – $47,700 x 45 years of 7% growth
21 – $51,000 x 44 years of 7% growth
22 – $54,600 x 43 years of 7% growth
23 – $58,400 x 42 years of 7% growth
24 – $62,500 x 41 years of 7% growth
25 – $66,800 x 40 years of 7% growth
26 – $71,500 x 39 years of 7% growth
27 – $76,500 x 38 years of 7% growth
28 – $81,900 x 37 years of 7% growth
29 – $87,600 x 36 years of 7% growth
30 – $93,700 x 35 years of 7% growth
31 – $100,300 x 34 years of 7% growth
32 – $107,300 x 33 years of 7% growth
33 – $114,800 x 32 years of 7% growth
34 – $122,800 x 31 years of 7% growth
35 – $131,400 x 30 years of 7% growth
36 – $140,600 x 29 years of 7% growth
37 – $150,500 x 28 years of 7% growth
38 – $161,000 x 27 years of 7% growth
39 – $172,200 x 26 years of 7% growth
40 – $184,300 x 25 years of 7% growth
41 – $197,200 x 24 years of 7% growth
42 – $211,000 x 23 years of 7% growth
43 – $225,800 x 22 years of 7% growth
44 – $241,600 x 21 years of 7% growth
45 – $258,500 x 20 years of 7% growth
46 – $276,600 x 19 years of 7% growth
47 – $295,900 x 18 years of 7% growth
48 – $316,600 x 17 years of 7% growth
49 – $338,800 x 16 years of 7% growth
50 – $362,500 x 15 years of 7% growth
51 – $387,900 x 14 years of 7% growth
52 – $415,000 x 13 years of 7% growth
53 – $444,100 x 12 years of 7% growth
54 – $475,100 x 11 years of 7% growth
55 – $508,400 x 10 years of 7% growth
56 – $544,000 x 9 years of 7% growth
57 – $582,100 x 8 years of 7% growth
58 – $622,800 x 7 years of 7% growth
59 – $666,400 x 6 years of 7% growth
60 – $713,000 x 5 years of 7% growth
61 – $762,900 x 4 years of 7% growth
62 – $816,300 x 3 years of 7% growth
63 – $873,500 x 2 years of 7% growth
64 – $934,600 x 1 year of 7% growth
65 – $1,000,000

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Well, how’d you do? Don’t worry if you fell short. Remember, THIS IS IF YOU MAKE NO FURTHER CONTRIBUTIONS. You could be 35 with only $80,000, and you’d still hit $1M if you put in $4,000 every year until you’re 65. Also, $1M IS AN ARBITRARY NUMBER. Here’s why I’ll never need a $1M net worth. For more proof that $1M is arbitrary, consider inflation. If I have $1M when I’m 65, that’s only a buying power of today’s $480,610!

Whaddaya think? Does this make you want to become a millionaire more or less? Does this seem doable now? Are you now dreaming of yachts and underwear models? Let us know.

It’s not that difficult becoming rich. That’s why rich people are everywhere!

It Was Made For You

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“The making and authorized distribution of this film supported over 15,000 jobs and involved hundreds of thousands of work hours.”

That’s the message at the end of X-Men: Apocalypse. The fact it’s anti-piracy is clear, but that’s not why I snapped to attention. What got me was I’d essentially seen this movie for free on Netflix, even though I should’ve paid hundreds more! Gimme a sec. I’ll explain.

Now, you obviously know a blockbuster movie takes millions of dollars to make. Not just that, but the combined experience of 15,000 creative men and women is nothing to shake a stick at. Many of them have been in the film industry for decades. Let’s average it out to 10 years of experience per person. (I think that’s fair because even -I- have 10 years of film experience.) Well, we’re already looking at 150,000 combined YEARS of experience to produce this movie I basically saw for free! X-Men: Apocalypse is 144 minutes long, so each minute I spent checking out the blue chick or cheering on the disabled psychic took 1,000+ YEARS OF WORK AND COMBINED LEARNING to make it as awesome as it was! It gets better. X-Men: Apocalypse had a budget of $178M USD. That’s $238,039,400 in Canadian dollars, so EVERY MINUTE of that movie cost $1,653,051! WHAT?!? Even if I’d seen it in theatres for $15, I think reaping the benefits of 150,000 years of work and $238M was a fair trade. So what if other people are watching it too? Other eyeballs on the screen don’t diminish YOUR experience with the movie. With your $15, you’re effectively hiring a stellar cast and crew, plus a production company, to personally show you people in funny suits punching each other! That’s goddamn hilarious! They did all that – FOR YOU.

Now, obviously, they didn’t do it for you exclusively. We know that. In order to appreciate life more fully though, pretend they did. Not to get into solipsist philosophy, but what difference does it make? You’re lucky enough to appreciate a $238M product for $15 in a theatre, or BASICALLY FREE at home, and it was all for your enjoyment! Now, apply this same line of thinking to every product you use. Your toothpaste took years of research. Your clothes went through a series of skilled workers. The food you eat in a month potentially came from hundreds of plants and animals. And yet, IT’S ALL AFFORDABLE ON ONE PERSON’S WAGES?!? If this doesn’t blow your mind, I can’t help you. You’re indirectly hiring thousands of people every day for only about $100. That’s bonkers.

Obviously, don’t spend more. Instead, recognize how lucky you are and SPEND EVEN LESS. If you just hired 15,000 people to tell you the story of a human magnet, you can proooooobably put the new Mass Effect game back on the shelf. While you’re at it, recognize the environmental impact you have on the world and eat one less animal maybe. You’re already hoovering up plants for pennies, and you didn’t even grow them. The iPhone you’re reading this on? 40 years of constant engineering from a staff of thousands. You don’t need to upgrade as soon as a new one comes out. You already have a personal oracle in your pocket that borders on sorcery.

Be fucking happy with what you’ve got. You’re already getting way more than you pay for. Pretend everything you use was made FOR YOU and appreciate where it all came from. Someone else may have the same product, but that doesn’t diminish your experience with what YOU own. In fact, it even adds value! This way, you get to talk about the same TV show with your friends!

From now on, look at each new purchase with this perspective. I hope it’ll give you a feeling of constant abundance. While you’re at it, maybe stop pirating movies. I used to work in film and TV too, y’know.

Career Burnout and What To Do About It (Pt. 1)

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This article took weeks to write, and is coming to you in parts. In researching for it and wading through hundreds of reader messages, I was forced to reexamine certain assumptions I’d made about career choices and burnout. I learned lots. For the sake of keeping this post concise, I’m making “burnout” a catch-all spectrum ranging from “losing passion in a job” to “being unable to do a job because of exhaustion”. In all cases though, burnout WILL most likely happen to you, so here’s how to manage it. That’s what this post is ultimately about.

I heard from a wide variety of people on burnout. Some were entrepreneurs like me, who’d found their dream job only to realize it wasn’t all sunshine and ponies. Others went down the more practical route and chose a well-paying job over their dream job, only to regret it. Others chose very lucrative day jobs that ended up taking a major toll on their health. One respondent almost died when job stress drove his blood pressure to 240/120, and stories like that were COMMON! As we go on, I’ll be peppering my insights with reader messages. Enjoy.

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“I used to be an engineer and now I’m a train driver and hate it”, “M” wrote. “it has ended up where I have to work very anti social hours which I hate. I’m at work on Friday night until 1 am Saturday morning which is my day off. Then straight back to work at 5 am Sunday. Also I have to deal with a lot of very horrible people. Just yesterday someone literally took a shit on the train. Have to deal with drunks, fighting and I’ve even had an attempted suicide. Also I find my work very boring and unrewarding.”

I asked him how much he made.

“Minimum wage for someone over 21 in this country is £7.50 per hour before tax which is 20% at the moment”, he said. “I trained for many years as an engineer. I worked for various companies where I enjoyed the work but couldn’t find somewhere that paid enough. I was earning about £20k. I now earn £34.5k”.

Ah, fuck. Another case of The Golden Handcuffs. FYI, £20,000 is $33,000 in Canadian dollars and £34,500 is $57,000. Now, you MIGHT anticipate my response being my usual condescending arrogance, but given what I’ve learned, I’m actually NOT recommending “just live frugal and go back to engineering”. Granted, $33,000 is TOTALLY LIVABLE, but here’s the catch: I’ve now heard from people who burned out at their dream jobs too. What’s stopping that from happening to “M” if he goes back to engineering, and for less pay too?

I recommend building up some “Fuck You Money” first to afford extra flexibility. “M” is burned out now and maybe other jobs to recharge are necessary, but he needs a cash cushion to fall back on. One reader wrote in, feeling as though her job cost her her personal life, and she now longs for “a simple coffee shop job”. Fuck, do that! You know how millennials are now notorious for job-hopping? IT’S BECAUSE WE(‘RE LUCKY ENOUGH TO) SEEK SELF-ACTUALIZATION AS OUR FIRST PRIORITY. I say work where you’re at while the money’s good, save all you can, and when you have enough to fuck off and change gears ENTIRELY for a few years, do it. Life wasn’t meant to be lived doing the same thing every day for 40 years. The most interesting people I know have had 5+ jobs. No matter where you work, you’ll inevitably run into some form of burnout given enough time. When you can’t take it anymore, get out and do something new. It doesn’t even have to be a total departure from your job. Maybe scale down your hours and work on that 10-to-2 on the side.

My life story has already involved MANY career changes, and I’m only 28. I burned out when I worked in the film industry, and at one point, that was my dream job! I’d wanted to work on movies since I got my first job at a video store, and there was literally a point in time when I could walk down the aisles and go, “worked on that, worked on that, worked on that”. It was pretty goddamn cool. I rose up in the ranks, from starting as an indie film PA to working on NBC’s lighting team during the 2010 Olympics. I even became an IATSE 891 permittee. And yet, the long hours made that job unsustainable. I left a job that paid $400+ a day, five days a week, in order to work less than 30 days a year as a photographer, DRASTICALLY cutting my income. Why? I had the Fuck You Money to do it. Build up your FYM. Think of it as your Freedom Fund. It’s your freedom to work wherever, for whatever, whenever!

Now, here’s the scary thing: I -know- I’m gonna burn out with photography someday. I already kinda have, since I say no all the time now. Yet, I’m not worried. One reader mentioned that burnout doesn’t have to be permanent. You can take a few years off to do something different and go back to a career, whether you love it or not. Now, that’s an important point. Our career lives now are different than career lives in the past. Millennials have so many options now, it’d be silly if we didn’t at least explore SOME of them. My point? Here’s your TLDR:

Build up Fuck You Money. Use it to explore job opportunities you think you’d enjoy. Burnout isn’t permanent, and you can jump back into an old career anytime you want. Don’t be scared of change, and beware of golden handcuffs.

In the meantime, I’m preparing for the very real possibility I may hate photography someday, even though I love, love, LOVE it now. Crafting a Plan B as we speak.

More insights coming your way in Part 2.