Mar 312011
  • Discount Brokerage = $200
Discretionary Spending:
  • Eating Out = $65
  • Others = $164
*Net Worth:
  • Assets:
  • Cash = $5,500 (Unch MoM)
  • Stocks = $44,100 (+1200 MoM)
  • Home  = $243,000 
  • Liabilities:
  • Mortgage = $211,300 (-300 MoM)
  • LOC to buy stocks last month = $0 (-$3,900)

Total Net Worth = $81,300 ( +7.26% MoM)

Received income tax return this month for last year’s income. The trick for me to get a bigger tax refund is to put more money into RRSPs, last year I contributed over $5000. It’s federal election time, I hope the party who advocates lower income tax will win. My strata fees increased by $16 per month starting this month, that’s about $200 a year more I have to pay :0( The good news is that the stock market in Canada did pretty well in March because of strong oil, and mining related commodity prices. My portfolio alone grew by more than 2%.

* Numbers are rounded to the nearest $100.

Mar 292011

Part of living a balanced life is allocating the right amount of money you make. There are 2 main categories you can put money towards, needs, and others. Our needs will vary depending on what we’re comfortable living with, what our appetite for immediate satisfaction is, our risk tolerance, and how much money we’re making. When I mention other spending I simply mean everything else the left over money goes towards.  Undoubtedly everyone’s situation will be different. Right now I’m spending about 50% of my after tax income on my version of “needs,” like mortgage, utility, insurance, and 50% on “others”, which includes eating out, movies, and savings/investments for the future. I’m pretty happy with this balance of 50/50 right now. Is this the average ratio for most people? I can’t say because everyone’s idea of needs vs others are different. Of course mine will change in the future, so it’ll be fun to track my spending and see which side I’ll end up leaning towards.

Mar 212011

Electronics Arts in Canada is looking to hire a Technical Producer.

It is a permanent, full time position, and they will pay you $130K to $160K annually. The interesting part is the barrier to entry for this job is so low compared to other professions with that kind of salary.  All you need for an education is a highschool diploma. No other credentials are required. Here are some essential skills the job posting says you should have: Reading text, Writing, Oral communication, Working with others, Problem solving, Decision making, Finding information, Computer use, Continuous learning.

That sounds like something even I can do. The job posting is on the government of Canada’s website so it’s probably legit, or maybe there’s a typo? But they typed 2 numbers. Maybe EA is just really desperate. It doesn’t look like the position has been filled yet. Hurry, anyone can still apply.

Mar 162011

Financial independence means different things to different people. To me, it can be broken down into 3 stages.

Initial Stage.
True Stage.
Perpetual Stage.

Part 3.
Perpetual Stage:
Like the True Stage, except you have extra wiggle room to deal with emergencies, inflation, lifestyle inflation, and unforeseen future expenses.

Example: A school teacher spends $30K/year. He has a $2,000,000 income fund portfolio giving him a 5% return every year. However, he will only use 2% of this income for spending, and put the remaining 3% back into his portfolio to counter the effects of price inflation and lifestyle inflation. The 2% income he can spend is $40K ($30K for his expenses plus an extra $10K for emergencies if he needs it, or it goes back into his investments if he doesn’t.) He is now truly financially independent and can ride the ups and downs of the market and theoretically should never run out of money for as long as he lives.

-assume all numbers are after tax.

Mar 082011

Financial independence means different things to different people. To me, it can be broken down into 3 stages.

Initial Stage.
True Stage.
Perpetual Stage.

Part 2.
True Stage:
You literally don’t have to do ANYTHING at all to make money and still get to enjoy your current lifestyle.

Example: A school teacher spends $30K/year. His rental income from his apartment is collected by a property management company and, after fees, is directly deposited to his bank account every month. Combine this with his investment income from a balanced portfolio of high quality funds, he gets $30K/year. He can quit his teaching job and be free of any money making responsibilities.

-assume all numbers are after tax.