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.

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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!

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.

Investing With As Little As $1/Day

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Let’s do this in two minutes.

Here’s some quick math to help you with your investing goals. No bullshit, no preamble. Share this with your friends to show them how easy retirement and investing can be. At 29, I’m better prepared than some 50-year-olds I know. Here’s how.

The math here assumes you’re 30 and will invest small amounts steadily until 65. That’s 35 years of growth. I invest aggressively in index funds, and I’ve been averaging around 7% annually. Let’s see what investing tiny amounts every day can do from 30-65 at 7% growth.

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• $1/day (or $365/year) = $53,988 at 65
• $2/day (or $730/year) = $107,976 at 65
• $5/day (or $1,825/year) = $269,942 at 65
• $10/day (or $3,650/year) = $539,884 at 65
• $20/day (or $7,300/year) = $1,079,768 at 65

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That’s bonkers, right? Every $1/day you put away can add $50,000+ to your retirement account? Time to bust out the ol’ piggy bank!

As for what to invest in, I can only tell you what my money’s in: the RBC U.S. Index Fund. (I also recommend TD U.S. Index Fund – e, which offers similar results, but with a lower MER.)

Depending on your goals, you might want to invest differently, so investigate options yourself and see if you can find better. All I know is I don’t worry about retirement anymore. With ~$20,000 in that index fund already and $10/day contributions, I’m anticipating ~$740,000 at 65.

Ready to do this? Calculate your numbers here, and comment with your findings below!

Not bad for a 2-minute read, huh?

I Think It’s Time We Split Up

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My friends and I fully embraced #microtravel this weekend, and just got back from an anniversary dinner in Nanaimo, BC. I could’ve theoretically gone alone, but my need to financially optimize things brought me to two conclusions: 1) “The more the merrier”, and 2) in order to avoid paying the entire cost of my trip, it made sense to split the bill with as many people as possible. Obviously, schlepping off some of the financial burden on friends is a morally questionable position, but allow me to elaborate. For me, financial optimization isn’t just about keeping more money in my pocket. It’s also about finding a win-win situation for everyone. Here’s our story.

In order to get to Nanaimo, we had to take a ferry. Our ferry ticket there was $106.65 for my car and three people. I’d brought my roommate who happens to enjoy my Nanaimo friends’ company, and one other friend who was attending the party already, though she would’ve gone on foot. They appreciated the direct ride to Nanaimo though, so the two of them ponied up the cost of our first ticket in full. Immediate savings to me: $74.70 for me and my car. When we got there, we all had a great time at dinner, and my roommate and I stayed for two nights in a $10/night room. He didn’t need a private room of his own, so savings to him: $20. Then, because our dinner was so huge, my Nanaimo friends decided to share the wealth, and we were treated to a second dinner with all the leftovers! Two great homemade meals instead of eating out: ~$40 in savings between us. And since my roommate appreciated the impromptu vacation, he took me out for a night of beers: $20! I paid for the ferry ride back. It seemed only fair. Through our entire 3-day vacation, we all included each other as much as possible to save everyone money. Everyone felt taken care of, we all made great memories, and a trip that would’ve cost me $250 alone became half that. Friends are awesome already, but when you have a bunch of them all working towards a common goal, you can all literally profit! Here’s another example.

I had a friend paying $115/month for a 3GB phone plan. Obviously, that’s terrible, so I started asking other friends what their plans were. Answers included $70 with fewer bells and whistles, all the way up to $150! My situation was super weird because I’d complained a lot at Rogers – I’m currently sitting on a 17GB plan – so I let my family join my Share Everything plan to save them some money. Months later, there was still no way I was blowing through that much data, so I signed my friends up too. Now, I have six people on my plan and their monthly cost to cover their lines is only ~$50/person! It turns out 17GB split across six people is just about perfect. Because I had an overabundance (of data, in this case) and split it across five other people, everyone benefitted. You’ll often find splitting one big thing across multiple people is more cost-effective than everyone paying for an individual portion, so why aren’t more people doing this?!?

We already do this by taking on roommates. We already do this with group rates at events. We already do this every time we order a huge plate of nachos for the table. Why don’t we do this for everything?!?

Look for the win-win situation. Bring extra friends to split the cost of a hotel room when you’re going somewhere anyway. They might dig a spontaneous vacation. (I do this for business trips all the time.) Order the 60-piece sushi combo and get everyone to chip in. You’ll all get more variety, and everyone’s meal will be, like, $8. On a road trip, don’t be afraid to ask for gas money. We’re all in this together. I once drove five people home after a party, and they all kept trying to hand me cash because none of them had to blow $20 on a taxi. Share your WiFi with your neighbour and split the bill. Split the cost of an amazing router if you have to, but you live right next to each other. Take advantage of that! Let’s just share everything and split the cost.

If we all did this, we’d all be richer and happier. Go frugal with friends. It just might save the world.