Keep Busy, Have Fun

I've always been a busy person. My parents can well attest to the fact that as a child I was always launching into great big fun projects (from my perspective) that were guaranteed to eat up all and any free time for the foreseeable future (from my parent's perspective). As a kid I competed in sports every season of the year; went to schools (of course) and spent more time on homework then any other kid in my class; acted in plays; entered math competitions and science fairs; volunteered for different charities over the years; learned to sew, cross stitch and crochet; concocted hair brained schemes with my siblings (house wide elections, our own science museum, etc.); and devoured book by the ton. This turmoil of activity has taught me two things.

The first is to manage things wisely. As a kid my mom was the one who threw on the brakes when she figured I was going to take on too much for me to handle. As an adult I think I've learned to manage my own time fairly well. None of what you're doing is fun when you're to tiered to enjoy it. But I've also learned to prioritize. There does need to be time for the fun stuff that you do just for the heck of it along with all the purposeful activity that comes with being an adult.

The second is that anyone who is bored isn't looking hard enough. That also goes for anyone who has to spend gobs of money trying to entertain themselves. There is so much out there that no one should be sitting idle. Learn something! With the internet you can get info on pretty much any subject for free. Make something! The next time you need something make it yourself. So what if you've never baked your own bread or built a table? There was a time when you had never tied your own shoes, you've managed that eventually. Go outside and look at stuff. There is an amazing, beautiful, absolutely insane world out there.

Sure when you get busy and start doing stuff besides watching TV there are people who will tell you that it's a bad idea. Just tell them Elizabeth said it was ok and refer them here.

Thanksgiving

Yes, I realize it's actually the day after thanks giving but yesterday comprised of a leisurely brunch and some rather laid back house work accompanied by some of my favourite shows. So I sat back and enjoyed myself.

I did, however, do some reflecting on the things that I am thankful for. (The list is in no particular order.)

1. My family. I truly have the most amazing and supportive family any one could hope for. That includes my extended family. When ever we get together there's lots of reminiscing and creating of new good times. Any time somebody needs something the rest of the family pulls together to help them out. Sure, we're not perfect. But that would be a tad boring.

2. My health. While I do have a busted knee I'm a lot better off then a lot of the people in the world. I can still move about easily and take care of my self. My health is not gradually deteriorating. I have all of my sense and my mind is more or less together. (With a 95% confidence interval depending on how close to stats class I am.)

3. The chance to push my horizons. I'm working at a job that pushes me intellectually and I'm working on a Masters that will allow me to enter into the field of independent research. (And make really cool discoveries that will change the world!)

4. My job and financial savvy. I was lucky enough to be introduced to the world of personal finance as a teenager.  Add that to the fact that I was surrounded by people willing to point me in the right direction and you have the makings of a true personal finance nerd. :) I also managed to find a good job that pays well, is extremely flexible, and has introduced me to the field of research.

5. My Dreams. I'm so very glad that I'm a dreamer. It gives my life direction and passion. I'm not sure I'll ever understand how some one can exist without a dream that puts fire in their eyes.

So . . . That's what I'm thankful for. I hope that you have just as much to be glad about.

Over Budgeting Food

Those of you who follow me regularly will notice that I always budget $160 for food each month. What you probably don't know is that I only spend around $120 each month. That would be why I started out September with $285.11 in my food section. Why do I do such a strange thing, putting more in than I know I'll spend?

It's a luxury, which I can afford and enjoy having. When I was transitioning between jobs and had just bought a house money was a tad tight. As such I really did have to tighten down on my food budget and pay attention to what I bought. I would have two sections on my grocery list, the need to buys in order to feed myself for the next week, and the nice to haves which was treats, stocking up on food for later and so on. I kept a running tally in my head of what was in my cart and when necessary but things back or didn't pick them up to begin with.

Now I make my list, pick everything up and check out with out paying all that much attention to the cost. I still spend on average $120 a month on my food, but unlike previous months there is no pressure or worry when I shop. It's a small luxury, but it's one that I enjoy and can afford.

Obviously I will not accumulate extra food money indefinitely. One of these days (probably after Christmas) I'll cut back on my food budget and use up some of the extra in that section. But for now I enjoy the privilege of eating what I want without thought of cost.

Black Sheep (and oh so chique)

I'm a bit of a black sheep in my family, and as a result get a fair few sighs and rolling eyes when ever one particular subject comes up - clothes. Every one, including my older brother, puts a lot more thought into what they wear than I do. If you were to ask my family they would probably tell you that I have no sense of style. If you asked me, well I'd tell you I have studiously avoided developing a sense of style. Allow me to expand.

In a recent discussion with my cousins (10 and 12, both girls) they were both shocked and some what horrified to learn the following:

• I don't own short-shorts. 
• I don't own and Abercrombie and Fitch or any other name brands. 
• I've never worn a two piece bathing suit. 
• Most of my clothes comes from the boys/mens section of the clothing store. 
• I am still wearing some of my brother's hand me downs. 
• I haven't bought any new clothes in almost 4 years (and the last thing I bought was my platoon t-shirt which we designed ourselves while doing our basic training.) 
• I own one skirt and one dress (dress is for winter, skirt is for summer.)
• I never wear make-up and wear jewellery only a couple of times a year. 

I was also informed by my younger cousin that there was simply nothing that can be done stylish with short hair. (She was trying to think of a way for me to wear my hair other than down or in a half pony-tail.) 

Why am I so laisser faire? Why do I not dress with the latest trends? Why boy's clothes?

• My happiness is not directly tied to what name is printed on my shirt's tag. 
• I don't particularly want to display my body to the world, it's mine not something to be gawked at.
• I don't need to worry about ruining what I have on when I'm cooking, painting, cleaning, running around, or just enjoying myself. It just goes in the wash (yeah rarely do I own anything that needs the delicate cycle) and if it's still all messed up it becomes painting gear. 
• Men's clothes actually have POKETS! You know those useful things you can put your wallet in. (Are you shocked that I don't own a purse?) 
• I am not upset/ashamed/embarrassed/sad or all those other uncomfortable feelings when I'm not dressed to the nines. 
• I can maintain my wardrobe with very little cash which leaves that finite resource available for stuff like retirement, charity, paying off my mortgage. 
• I don't have to spend a lot of time taking care of my appearance. Instead I can spend that time reading, cooking, sewing, outside, studying, keeping up with house hold tasks, you know, stuff that's important to me. 
• It allows me to walk in the opposite direction that everybody else is headed. Style is in because the masses have followed whoever decided that something was the "cool" thing to do. When I was a kid lots of people tried to make me be just like them and then mocked me when I refused. You'll find that the more you try and tell me what to do the more stubbornly I'll head in the opposite direction. I don't like being told what I should do or who I should be.
• Finally I am comfortable in my brother's hand me down kaki shorts and platoon t-shirt. Not just physically but psychologically. That's who I am and I like who I am. 

So where does that leave me? Kind of in the same spot where I started. My family will sigh and try and talk me into something "better." People who are new to my life will sit and stare at me when I say certain things about my wardrobe; and me? I'll just keep be-bopping through life continuing to refuse to be anything other than just plain old me. 

Best Vacation EVER

I apologies for my prolonged absence. I have been on vacation over the last week, my first one in a year. Let me just reiterate it was AWESOME! I spent it at my grand parent's cottage. There at the same time as me were my young cousins. I came away with three big realizations.

1 - This type of vacation is sooo much better than the sunny south or Europe. I get to spend time with my family, I got to be useful, and I enjoyed scrumptious food and breath taking scenery. Because I spent it with family (and my grandmother wouldn't ever considering taking any more then a small gift to say thank you for the visit) so I didn't spend a penny on my vacation.

2 - I've found my weakness. The cottage that I've been visiting since I was a child is my version of paradise. I was in the water every day, feed chipmunks from my hand, and was a stone's throw from a pair of loons. Any one who's looked at my monthly budget would say that I never give into temptation. The truth is I am rarely tempted, I don't want new clothes or a fancy coffee. But at the moment I so much want to own my own little peace of paradise. I don't even need a cottage for the moment. I would be happy to just have a little piece of land upon which to stake a tent every other weekend. I could afford it too, it would just mean putting aside some other goals. I am currently battling with the desire to put just a couple hundred dollars a month aside so that I can have my paradise, I let you know if my rational mind losses the battle with my heart.

3 - I am very much ready to be a foster parent. I took the roll of both friend and authority figure with both my cousins (10 and 12) over the last week and I loved it. Sure nagging a kid to go put away the dishes isn't my preferred past time but I don't dislike it. Though many times I had to be the adult and spend more time supervising the activity than taking part I enjoyed being able to facilitate their fun. I must have treaded water for over an hour (in the middle of a very deep lake) while teaching one of my cousins to water ski; and I'd do it all over again in a heart beat. I have neither the means nor the time to take a child full time at the moment, however I am very much meant to be involved in kids lives and hope to start as a foster parent soon.

To round it all up I'm hoping to do the exact same thing again next year.

The Penny vs. The Pound

There have been two old sayings I've been mussing over for the past couple of weeks:

"Penny wise, pound foolish."

"Take care of the pennies and the dollars take care of themselves."

One is about looking after the big costs in your life such as your mortgage, car payments or the purchase of large items.  The other is about watching those little drips and drabs of money that just seem to disappear.  Funny thing is that they are both right, it all depends on the problem that you're facing.

When you're budget is way out of wack, you need to come up with money for debt repayment, or you you need to boost your savings you may be "Penny wise, pound foolish."  It's for those who buy large expensive items when already in debt.  For those who's housing or transportation budget eats up more than 35 and 15% of their budget respectively.  Taking steps to get their big expenses back in line might be what they need to get back on track.  Downsizing houses to reduce costs, selling a car to come up with debt repayment money, or not buying that big ticket item in the first place may help solve their problems.

When you're fixed expenses look reasonable but for some reason you run out of money before the end of the month or that credit card balance keeps creeping upwards means that you might need to "take care of your pennies so that they'll take care of the dollars."  A couple dollars a day for coffee or not bothering to shop around for your groceries can slowly add up to an appreciable amount.  The problem is that with out meticulous record keeping (read: recording everything) you'll have no idea where it all went.  If your large expenses seem reasonable and you have no idea where the money's going you may be having trouble with your pennies.

Of course you could also have a combination of the two, which means that you really need to do something, and quick!

Just Blow Up Your Brain

I have spent the last week in a valiant effort trying to blow up my brain, seriously.  Here's how you go about doing it.  Chose a venue full of people who are generally older, more knowledgeable and more experienced than you.  Go ahead and plunk yourself (along with them) in the middle of a course which is geared towards people with twice your credentials and for which you have no preparation except perhaps a course or two . . . four years ago.  Then stay there, for one whole week.  In other words attend a conference similar to the one I was at this week (though you do have my blessing to attend one that is relevant to your occupation.)

Stretching your brain such as I described above has positive numerous effects.  Though to be entirely honest you probably won't appreciate them until you're done.

• It will show you just how much you don't know and point out where you need to focus your learning.  You'll find out first hand where you need to concentrate your efforts, be that improving a single skill or taking time to get an over view of a certain subject.  
• You'll meet a lot of smart people.  As a result of my course I am on a first name basis with two of the professors who will be teaching me during my masters (which starts in September.)  Both of them have expressed that they look forward to seeing me in their classes.  
• You'll meet people further along you're career path.  Chances are they'll also be like the second year masters students that I got to know and they will be more than happy to give you lots of advice that they wish they had known in your shoes.  
• You'll sharpen your thinking.  Usually when they start giving you complex theories it's not about the memorization, it's about making connections and analyzing what you have in front of you.  This subsequently bleeds into other areas of your life.  
• You'll be ahead of the ball.  While all of your peers are learning the basics you're moving onto more complicated materials and making connections with what you're presented.  
• You'll learn some new stuff.  I put this last because it is also the least important.  Sure you're going to walk away with some new knowledge in your brain but that is of minimal importance compared to what is listed above.  

Whether it be for school, work, or personal growth I recommend you skip ahead and take the next level of what ever interests you.  Occasionally trying to blow up your brain is good for you and life's too short to be spent taking baby steps the entire way.  

Making Bread - A Lesson in Patience

I didn't have the self control to wait until I had taken a
picture before having a slice.  Hence the loaf in the
back right corner.  

Ever since my university years I've been experimenting with making my own bread.  I've done sour dough, white sandwich bread, and my current favourite whole wheat sandwich bread.  In fact this weekend I took the opportunity and ended up baking 6 loaves of bread.  (5 of which promptly got stuck in the freezer.)  During my baking spree I came to the following conclusion.  Everybody on the planet should make bread from scratch (with out a bread maker) at least once in their lives.

Why?

First off it will give you an appreciation for the dying art and an understanding of where your bread comes from.  The same way that cooking from scratch and growing your own vegetables are beneficial making your own bread brings you back into touch with that you are putting in your mouth.

Secondly, the taste of fresh home made bread is heavenly.  If you make it and taste it just once you may never want to go back to the store bought loaves that don't go mouldy.  (Seriously, are you going to trust something that doesn't rot?)

Finally, and most importantly, making bread is a lesson in patience.  If you hurry through a step your bread may not rise and you'll end up with a brick instead of bread.  If your concentration is elsewhere you could very well end up killing your yeast and wrecking the dough.  I am not the most patient person on the planet, truth be told I hate waiting for things to happen.  I'm going to assume that a fair portion of the planet is with me on this as the human race continues to come up with more and more sophisticated ways to make our world go faster.  When it comes to bread though, you simply have to accept that it will rise when it rises.  It will not follow your schedule and if you try and change it's schedule you'll end up with a mess.

Like so many things on the planet there are no short cuts, just the prudent use of time spent waiting.

Bad Scenario Game

I like to play something that I call the bad scenario game.  The idea is to imagine a scenario that you could plausibly find yourself in that would cause you some level of hardship and create a theoretical plan for how to deal with it.  For example:

Say tomorrow I lost my job.  What would I do in the short term (next couple of days), medium term (months) and long term.

Short Term
- Immediately go to the bank and return my monthly mortgage payment to it's normal amount (I currently pay and extra 10% each month to pay it off faster)
- Take stock of everything I have laying around in various savings accounts
- Collect my last pay check and make sure that it will cover two months worth of expenses (which is pretty easy when you live of 50% of your income)
- Contact my disability insurance company and let them know that I lost my job (which means in two months time I would be able to start collecting disability benefits to the tune of $3,535.50 a month gross)
- Update resume

Medium Term
- Begin Master's program as planned
- Use disability payments to save the amount that would be required to support me between the end of November 2014 (when my disability payments run out) and April 2015 (when I would be finished my Master's degree
- Look for work as a Teachers Assistant and/or Research Assistant with my University
- Depending on my success for finding a TA/RA role, scope out possible RN jobs in the community that I would be physically able to handle
- Build portfolio of skills that would increase employability, which would likely include becoming involved in a number of different research and teaching areas

Long Term
-Use Veteran's Affairs assistance and my priority hiring status to find a stable long term (physically undemanding) job
- Job search would likely extend beyond provincial borders, so I would prepare to transfer my qualifications from my current college to another one

The short and long of it is that there are a lot of things that I could do in the short and long term to recover from the crises.  Some of these steps I have taken in the past when facing job lose some are unique to my current situation.

The point of the Bad Scenario Game is not to freak you out at all the things that could possibly go wrong in your life time.  The point of the game is to prove to yourself that even when the worst happens (yes, bad things are going to happen in all of our lives) you have the capability of getting through it and being happy during the process.

It's not about the elastic

Meet my current hair elastic.  I say current because I tend to only have one on the go at a time.  I put it on in the morning, it keeps my hair out of my face all day, and then it sits on my bedside table while I sleep until it is time to wear it again.  As you may have noticed it looks a tad ragged.  About 2 months ago it popped while I was putting it in my hair, the elastic had snapped.  Not having a spare on me at the time I made do with it until I realized that I wasn't making do, it was working as well as it ever had. Two months later and the elastic has broken in 7 different spots.  Believe it or not, it still works.  But, as the title says, this post isn't about the elastic.

This post is about the attitude.  I'm not going to calculate the savings that result from using a worn out elastic.  Quite frankly I don't care.  What I care about is the impact of it, or lack there of.  Imagine for a moment that you lived on an island.  For every new thing that you created a square inch of the island would become desert, and forever unusable.  Every time you abandoned an item, be it from boredom or  breakage, it would perpetually take up one square inch of the island.  And since this thought experiment is my own little game, the garbage isn't sitting in your otherwise useless desert area, it's in your backyard.

If this though experiment were true how quickly would you throw things away?  How quick would you be to buy or make new things?  Could you avoid running out of space?  The reality is that we are on an island.  An island in the middle of space, with no where else to go.  The exchange isn't one for one, when it comes to the making of new things or the disposal of old.  There is, however, and exchange.

This post isn't about elastics or hairpins.  It's not about toasters or chairs or supersonic jets.  It's about the utilization of resources, and the disposal of things no longer wanted.  This is about our island, and keeping it a place where we all want to live.

What % of your money should be spent on clothes?

I recently read an article on GMBMFB and subsequently the original article on Money After Graduation.  Both of them are about how much you should spend on clothes.  They used the rule of thumb that 5% of your income, or less, should go towards clothing.  I, of course, had the sudden urge to calculate two things.  First, how much I spend on clothes a month and how much 5% of my net income is.  The answers are 0.28% and $179.50 respectively.  Wow.  Apparently I am once again an outlier.  I'd say that was strange, but, well, it's not really that surprising.

I took a bit of time to think about the numbers.  Is 0.28% good enough to keep me appropriately dressed?  I have to say that, for the moment it is.  Most of the clothes that I own (probably around two thirds) never gets worn, not because I don't like them, simply because I only wear one outfit a day and wash my clothes every week, so the clothes on the top of the pile are always the same.  I own two very fancy sets of clothes, one for summer and one for winter.  (Though they only get worn every 4 years or so.)  I have a solid set of runners that will hopefully last another couple years, as well as two replacement sets (left over from my cross-country days where I could wear out one per season.)  And while yes, most of my socks do have holes that is personal preference.  If I kept replacing the ones with holes I would have to try and avoid putting holes in them.  Which would mean no more skipping and sliding around on my wood floors.  I'd prefer to slip and slide.  As for the $179.50 per month, I would honestly be really hard pressed to try and spend that much money on clothes every month.  Truly, there is nothing that I want out there.  I don't want to get rid of the stuff that I already have or need to store even more clothes.

The interesting thing that I noticed in both articles was the fact that "clothes expenditures should be 5% of your overall spending" and "clothes expenditures should be 5% of your overall income" were used interchangeably.  This infers, of course, that you spend everything that you earn.  I would hope that this is not the case.  I have always lived on roughly half of my income, even when earning a pittance as a student.  Thus my spending has always been 50% of my income, meaning that 5% of my overall spending and 5% of my overall income are very different.  I hope that they are very different for you as well.

So we come back to the question; what percentage of your money should be spent on clothes?  My answer is, what ever percentage you need to spend.  If your house just burnt down obviously you're going to go out and buy a whole new wardrobe (especially if you work at a job that has a certain dress code.)  On the other hand if you have a perfectly serviceable wardrobe at your disposal you have no need to add to it.

At the end of the day you can do one of two things with your money.  Spend it (occasionally required and may admittedly be a source of some pleasure) or save it.  Savings give you two things, options and freedom.  Options could be as simple as being able to go see family on a whim or as complicated as giving you the time you need to go back to school after a job loss.  Every dollar you have in the bank gives you the option to chose what direction you're going to head, especially when life throws you a curve ball.  Freedom is what happens when you have enough in the bank to allow you not to worry where the next dollar is coming from, you already know.  True you may choose to keep working, but you are free to do it by your own rules, not somebody else's.

Some argue that the purchase of something, or the wearing of certain luxurious clothes bring them happiness.  I would argue back that the happiness that they feel in such instances pales beside the happiness one feels with experiences such as spending time with loved ones, marvelling at what natures has to offer, overcoming personal challenges, and giving back to the world more than you take.  As such I honestly wonder why someone would chose to spend dollars of the fleeting happiness of a purchase when they could save those dollars thus giving them the freedom to search out and enjoy the happiness that comes with experiences that are, more often than not, free.

Clothesline Sentiment

One of the primary complaints that I've heard against clotheslines is that they take time.  It takes time to  drag the wet clothes outside, and then hang them up.  It takes time while you wait for them to dry and then it takes time to take them down again.  I'll admit that this was one of my primary concerns when I decided to build my line was that it would take up too much of my time to use it.  I can happily say though that my clothes line doesn't take time, in fact it gives me time.

It gives me time to be outside.  Time to enjoy the summer breeze and the sun.  I'll stand barefoot on my warm patio as I put up my clothes and listen to the sounds of the birds and to the other humans that live around me.  I have the time to admire my garden, despite the fact that there a couple a weeds amid my lettuce and squash.  I can be proud of the fact that I built the clothesline with my own hands and that it actually works.  It gives me time to slow down and enjoy the world that I'm living in.  To be thankful for what I have, a strong body, a passionate mind and an unconquerable soul.  It give me time to think of what ever I want to because there is nothing else that I need to think about.  It gives me time to simply be.

Simple.  All the poetics that I could think about now, sitting in my backyard with my garden, my clothesline and my too long grass have nothing on that simple world.  Simple.  All the apps and the gadgets in the world can't give a person the sense of peace they can find when they go for a simpler life, a slower life.  Don't get me wrong, I work with technology for a living and I think it's great.  But nothing beats slowing down, and taking it all in.

I must keep searching for this simple life, it seems to have all I need.  I hope you find it too.

The Third Option

I love being a nurse, but of course with any profession there are the parts of it that are unpleasant.  I'm not even talking about the blood, gore and other bodily fluids, those don't bother me in the least.  (Actually I'm right up there with most nurses in that I can talk excitedly with other nurses, over lunch, on subjects that make most non-nurses retch.)  What I hate about being a nurse is having to chose between two equally bad options with out having a third option.  The proverbial rock and hard place scenario.

Do we not treat the patient or give them a medication that might do as much harm as good?  How do we respect a patients autonomy and watch them die from a treatable disease?  There is no easy answer. I know that all nurses have faced this type of scenario, as have many other professions who work with the sick and the vulnerable.  I'm sure that all of us have at one time or another wished that we could change the rules of the game, slipped in an ace, or conjured a third option from thin air.

I've started my PRIDE training in order to become a foster parent and have spent some time thinking about the similar situations that Children's aid social workers are faced with.  Should they split up a sibling group or try and keep them together even though that might mean losing a foster family who can't take the demands and leave?  Do you leave a child in a neglectful situation or do you bring them into care knowing that they will end up being baby sat in a motel room for weeks because there is no one who will take them?

Sitting in class listening to a similarly hard scenario that had recently occurred, and then in the days after all I could think of was "there should have been a third option."  There should have been a third option because we live in a country with abundant wealth.  There should have been a third option because I believe that I live in a country full of warm and caring people.  When it comes to kids who need protection there should always be a third option.

So I am becoming the third option.  I can't be the third option all of the time, or even most of the time.  But, by becoming a foster parent I will be the third option some of the time.  Mahatma Gandhi once said "You must be the change that you wish to see in the world."  Maybe, just maybe in being the third option myself I will help to create more third options.

Building It Yourself

After becoming a home owner I have become very interested in fixing, and building things myself.  Despite my strong academic background I have always been fond of making things with my hands.  That is one of the reasons that I went into nursing.  The requirement to master tactile skills and put them to use on a daily basis (above and beyond typing of course.)

There are a lot of good reasons to learn to build things yourself.

- It tends to be cheaper to buy the components and assemble it yourself as oppose to buying the product already made.  This keeps the cash in your pocket instead of thoughtfully sending it to somebody else.

-It's good entertainment.  Any project when approached with the right attitude can be a lot of fun.  You learn and toy around with the project as you go making the process an entertaining pursuit.

-It leaves a sense of pride with you.  Not just immediately after you build the object but every time that you use it you can feel a sense of pride at what you've created; and humans were meant to create.

-If you made it you can fix it.  If you made an object you are familiar with all its components and how they are assembled.  This means that when the thing breaks instead of running to a professional to repair it or chucking the whole thing and buying a new one you can fix it yourself.

-It is incredibly empowering.  We live in an age where we depend on specialists to do things for us.  What we tend to forget is that they are humans just like us.  Now I'm not recommending that you try and take out your own appendix or anything so drastic.  I do recommend that you challenge the idea that you are not capable of what another human is capable off.  No man is an island and empowering yourself does not mean that you can't depend on others from time to time.  What is does mean is that you should be able to depend on yourself.

So go build something, learn a new skill, and enjoy what you've accomplished.

Have a question?  I'd love to hear it!

Retirement - The non-money side

One of the things I love about blogging is getting reader feedback.  It gives me something to think about . . . which is one of the reasons I blog in the first place.  Which is why I really enjoyed getting the following comment.  

"Keep in mind that the earlier you retire the more you have to save because you'll have a larger number of retired years to budget for. There's always the option of semi-retirement - getting a low stress part-time job where you get out of the house, have that social time and financial reward but leave behind the stress of a full-time career. Just something to think on.. "

I've been thinking about the above reader comment which was posted on Early Retirement article.  The comment has two aspects, the numbers side which I'll get to at a later date and the question of what I would do when retired.  It is true that a low stress part-time job (like being a kayak instructor or a camp councillor) gives you both meaning, social interaction, and a sense of purpose and for a lot of people is a great idea.  Personally I'm planning on taking on a high stress full-time job that costs me money instead of making it.  

In other words I want to be a parent.  Specifically I would like to be an adoptive parent.  Financially I would like to reach a point that for my retirement the number of children that I raise is limited by my energy and time not by finances.  I believe that this would give me an amazing challenge and a deep sense of fulfilment.  I am not deluded into thinking that it will be easy or that it will be all happy days, both the things in this world worth doing are seldom easy.  

Have a question?  I'd love to hear it!

Raise a Little Hell of Your Own

It probably doesn't come as a shock that I am a big fan of Gail Vaz-Oxlade and subsequently have been watching her new show Money Moron.  Just as good as her other shows ('Til Debt do us Part and Princess) Money Moron illuminates the mistakes that so many in our society make on a daily basis.

One of the aspects that really struck me was how hard the people in the show looked for some place to put the blame, they certainly didn't want the blame to fall on their shoulders.  Sometimes it was their partner's fault for not being strict enough, or the world's fault for judging them too harshly, or the government whose tax laws were simply unreasonable.

It got me thinking of a recent blog post that I had read that encouraged finding a theme song for your finances.  And no, "Money, Money" by ABBA is not what they were thinking about.  Like most people I had never really thought about finding a theme song for my money but I was intrigued by the idea.  After all what could be a better way to motivate yourself when tempted by the latest gadget or when you feel like just spending a bit of your savings.  My new money theme song is "Raise a Little Hell"  by Trooper, and the couples on Money Morons could probably use the advice in the song as well.

“In the end it comes down to your thinking

And there’s really nobody to blame

When it feels like your ship is sinking

And you’re too tired to play the game

Nobody’s going to help you

You’ve just got to stand up alone

And dig in your heels

And see how it feels

To raise a little Hell of your own”

I find the idea of no one coming to help me liberating as opposed to frightening.  I have no one to blame for my failures except for myself and no one else can take credit for my success but myself.  It means I can stop waiting for everything to magically sort itself out and work on setting things straight myself.  This attitude is probably the most beneficial attitude with which to face your finances, absolute accountability and infinite will power.

Financially Self Sustaining

True to my post yesterday I have been trying to broaden my horizons by reading areas of personal finance which I had not give much thought to before.  One of the concepts which peaked my interest was that of Early Retirement Extreme.  For those not familiar with the concept it is the idea that by reducing unnecessary expenditures you can save (and invest) the lion's share of your earnings and thus retire in 3-8 years.

Naturally I spent the next two days running numbers and seeing how this system would work for me.  I came to the following two conclusions:

If I downsized my house I could in all likelihood live comfortably on $7,000-$9,000 a year.

Early Retirement Extreme is not for me.

Why not?  The simple fact of the matter is that living on such a budget would not allow for me to foster and adopt kids, which for me is huge.  The idea of spending a large portion of my life in relative solitude holds no appeal to me.  I would rather work longer and have a house full of children.  There is also the fact that the more that you fly in the face of social convention the less likely you are to be approved as a foster/adoptive parent.  I understand where this comes from so, for the moment, a tiny house is out of the question.

So instead of shooting for Early Retirement Extreme I will be aiming for what I have chosen to call Financial Self Sustainability.  The idea behind FSS is that losing my income would not affect my ability to support myself.  I would be able to keep a roof over my head and food in my stomach by living off my investments.  It would mean downsizing to a smaller house (and using the equity in my current house) and it would mean no kids.  But I could survive.

How much would I need to be FSS?  It breaks down like this:

Housing
One time costs - Land: $20,000-$30,000 in my local area
                        - Tiny house $25,000 based on the Tumble Weed Tiny home that I like, though I could potentially go lower.

Monthly costs - Utilities, taxes, and maintenance: $300

Transportation
Monthly costs - $150

Life
Monthly Costs:
Food - $100
Cell - $30
Internet - $50
Health Insurance - $23.52
Clothes - $10
Misc - $10
Yearly expenses (like fees to maintain my RN's status) - $50

Total one time costs - $55,000
Monthly costs - $723.52 = $8,682.24

Since I would not want to withdraw more than 4% of my portfolio per year I would need to have investments equaling $104,400 to generate an income of $8,700 per year.  Add to that a one time costs of $55,000 and once I have hit a net worth of $159,400 I will be FSS.

My current net worth is $134,800.06.  Which is a shortfall of only $24,599.94.  In other words I am 84.6% of the way there.

Until I started writing this article I didn't know that I was that close.  Needless to say I am pleasantly surprised.  Of course unless I am awarded a scholarship, approximately $20,000 of my net worth will be magically (via a lot of hard work) transformed into a Master's Degree over the next 2 years.  So at my current rate of savings ($1,660 per month) I should reach FSS in 27 months.  Which I will naturally track with one of my nifty sidebars.

Have a question?  I'd love to hear it!

Paying Taxes

            Before I was born people paid taxes.  As a result, when I was born the doctors didn’t care about the state of my mother's finances.  They only worried about keeping us alive.  As I grew up I attended school.  Learning math, science, art and two languages cost my parents no more than their property taxes and some minor school supplies.  When I joined the military I began paying taxes myself, yet the money I paid taxes on first came from the other taxpayers in my country.  Now I research human movement with the tax dollars that come from all over my country (and some from other countries too.)  

            Because of taxes I never needed to worry about my health, there are hospitals and their staff to care for me.  I never had to worry about my safety because the police, prison officers, and military are paid with our taxes.  I’ve always had the choice to vote because my tax dollars fund a democratic society. 

            Yes my government sometimes does stupid things with the money I give them.  I make a fuss from time to time about how we are paying way too much for projects or politicians; and yes, I do take advantage of all the tax savings and rebates I can.  At the end of the day though, I’ll pay my taxes with a smile because I know that I have benefited far more from the taxes of others then I will ever pay in my lifetime. 

            Even if I do end up paying more in taxes then I use (I suppose that’s possible) then nothing could express my sentiment better than the answer of a Canadian when asked by an American interviewer.  “Why should someone else have to pay for your surgery?”  The answer being “Because I would help pay for his if the situation were reversed.  That's just how we do it here.”  Paying my taxes is not a chore, it is a  civic duty, and so is keeping an eye on the people who spend it.  

PS. The government just returned the $415.32 that I over paid in taxes.  Can you say shopping spree?  (Ok, you got me.  It's going against the mortgage.)  

Other ways to give back

Giving back was always a part of my finances as a kid.  The rule was 10% of everything that we earned went to charity.  You could save it up as long as you wanted and could give it to any cause you wanted.  But the reality was that that 10% didn’t belong to you.  It belonged to the rest of the world; you were just managing it. 

            I carried this habit over when I started working full time for the military.  As soon as my pay hit my account 10% was put aside.  Which is why when I was faced with losing my job one of the things that I struggled with most was giving up my charity money.  I knew that I had one maybe two years left with the military and then I would be on my own with dismal job prospects.  I might even need to pay for another degree.  My head told me that it made sense to hoard as much money I could put aside to help me weather the oncoming storm. 

            At the same time my heart told me that however bad my financial prospects might get I am much better off than most of the people on this planet.  That in cutting off my giving I was shirking in my duty to the rest of the world. 

            Eventually my head won out and I discontinued my charitable giving.  I felt awful and started looking for a way to continue making a difference.  I had no money to give so I started giving away my time.  I volunteered for a local community house and tutoring a couple girls in foster care.  It was one of the best things I have ever done.  Though the impact that my actions may have made were more localized they were no less important.  I didn’t know until about six months later, but my bi-weekly visits to tutor one of my students was a turning point not only in her academics but for her socially as well. 

            Showing up regularly and taking an interest in her life made a difference that could not be made with money.  It showed her that someone cared and that someone was willing to be there even on the tough days.  Though it may sound like I worked this miraculous change on the girl I tutored, the reality is she also changed me. 

            She is one of the strongest people whom I have ever met.  She taught me a lot about endurance and humor.  Watching her persevere in the hard times made it easier to face my own.  Nothing has given me greater joy then to watch her catch on to a topic that had been eluding her, or get caught up after years of not going to school regularly.  Working with her gave me so much more than mailing a check to a charity half way around the world. 

The Second Sober Though

            During the process of buying my first home, and first car, I became a big fan of what I like to call “the second sober thought.”  Big purchases tend to involve a fair bit of emotion in the process, especially if it’s a house you’re going to be living and raising a family in.  I like to think of myself as a fairly rational and logical person especially when it comes to my money.  Turns out I was getting a little bit overconfident. 

            During my house inspection (the second one on the house I eventually bought) I brought along my parents.  As we worked through the various structures of the house we ended the inspection upstairs, where almost all the floors are finished with parquet flooring.  The floors in my house are a bit beat up, in some places they’ve lost their gloss and in other places there are gouges in the floor.  Off handed I commented that the floors up stairs would have to be replaced.  My father became the second sober thought.  Why would you need to replace it?  He asked.  Though my floor is somewhat worn it is still in one piece and as long as I don’t pour water on the places that have lost their varnish (which I should be able to avoid) they should last a long while yet.   Turns out the only reason I wanted new floor is that parquet is kind of old school, and after four months in the house I don’t even notice the type of floor I have.  My money is better of spent elsewhere. 

            A couple of months later I lost the use of the car I was borrowing and was considering buying myself.  I was back and forth on the issue, while I really didn’t want to go carless (how would I get around?) I wasn’t sure how to make it fit into my budget.  Fortunately the first car I enquired about fell through and I was back at the drawing board.  At this point my father mentioned that most people in our society don’t truly need a car.  It is simply something that is socially acceptable to do.  I wasn’t sure if I could get everywhere I wanted to go without a car but decided to try it and see what happened.  It’s been two months and I love being carless.  No payments, insurance, maintenance or gas and I don’t have to shovel my drive way. 

            So where do you go for a sober second thought?  Try to find someone who you trust who has no stake in the purchase.  Hopefully they will have a good bit of common sense and financial know how.  For me it’s often my father.  Who do you go to for a sober second thought?