Apr 192015

If money didn’t exist, we’d all be rich. However the reality is that society needs a simple and effective medium of exchange so the economy can run efficiently. Since money is so ubiquitous, yet also finite, we should try to maximize its utility by controlling and spreading our spending over time. Sometimes this means delaying a purchase until a future date or just not buy it altogether.

Chronic shoppers often have to overcome a sense of deprivation when they pass up an opportunity to spend. But changing the way we think about delayed gratification can help. :) Instead of dwelling on what we will potentially miss out on we can think in terms of what we will gain instead. 😉

Next time we decide to not buy something, we can tell ourselves that since we’re not spending $X on that, we can add this $X to our emergency fund, or build up a larger down payment for a future home to raise a family in. Or we can use this $X to pay down our debts. Once our debts are completely gone we can work less, travel more, and take up new hobbies like pottery making. 😀


Everyone’s reasons will be different. But the basic idea is use our goals, aspirations, and dreams to convince our brains to not feel deprived because of our decision, by replacing the temptation for an immediate reward with a larger, or more enduring reward. Rather than wallow in self pity we should feel proud and anticipative of a better life tomorrow.

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Mar 132015

Sometimes knowing what NOT to do is just as important as deciding what to do. Staying away from drugs and excess alcohol consumption are common examples. But what about the more subtle habits that we should avoid, especially if we want to retire early? I recently read this article which discusses what financially successful people are known to avoid. I’ll summarize the important parts in 5 points below.

5 things successful people do not do.

1. Let others limit their joy.

Don’t rely on other people for personal satisfaction. People might be critical of our success but we have to take their criticism with a grain of salt because they could simply be jealous of our accomplishments. Our success shouldn’t depend on other people’s failures. If we feel good about something we’ve done, we shouldn’t let anyone else’s opinions or accomplishments take that way from us.

2. Hold a grudge.

We should be quick to forgive, but not to forget. Forgiveness requires letting go of what’s happened so we can move on with our lives, but we must also be assertive in protecting ourselves from similar harm in the future. Holding a grudge also induces stress which contributes to high blood pressure and heart disease. 😐

3. Prioritize perfection.

Don’t be a perfectionist. Human beings are fallible by nature. When we make perfection our goal we’re inevitably going to be disappointed with our results sooner or later. We should try to spend our time enjoying what we’ve achieved :) rather than lament how imperfect we are. Trying to be perfect is just too much pressure.

4. Dwell on the past.

Anything worth achieving will require some effort and risk. We can’t allow our failures from the past to stop us from believing in our abilities to succeed in the future. Our emotional state depends on what our minds are focused on. If we fixate on problems and mistakes, we create negative emotions and unnecessary stress which thwarts our creativity and potential. But if we prioritize on actions and solutions to improve our circumstances then we can produce positive emotions, and an improved outlook. Instead of dwelling on problems we can become more effective when we focus on solutions.

 5. Say yes all the time.

Don’t be a “yes” person or a people pleaser. Learn to wield the power of the word “no.” Saying no can be a challenge for some people, but learning to do so can honour our existing commitments and give us the opportunity to successfully fulfill them.

Avoid these 5 practices and we can all become rich some day. :)

Random Useless Fact

The Dalai Lama is fascinated by science and technology. He has claimed that if he had not become a monk, he would have become an engineer.


Mar 102015

Some say the real test of success is whether or not a man can earn more money than his sister-in-law’s husband, LOL. 😀 It’s funny because there’s some truth to that statement. It’s human nature to be jealous of others.


But at the end of the day envy has no upside. Being resentful of someone else is a waste of time. If we can learn to curb our jealousy then our lives will become so much better. :) We will become more happy, less stressed out, and can make better decisions. Famous investor Warren Buffett once said, “As an investor, you get something out of all the deadly sins—except for envy. Being envious of someone else is pretty stupid. Wishing them badly…- All it does is ruin your day. Doesn’t hurt them at all, and there’s zero upside to it. If you’re going to pick a sin, go with something like lust or gluttony. That way at least you’ll have something to remember the weekend for.

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Feb 032015

Nobody likes to pay banking fees. But most monthly service charges can be waived if we sign up for additional accounts/services, or keep the minimum monthly balance in the account. (eg: maintain at least $1,500 in a Bank of Montreal chequing account to waive the $4 fee.)


My personal account is with TD Canada Trust, which charges $3.95/month unless a minimum balance of $1,500 is held in the account at all times. But sitting on unused money can be a waste of capital. 😕 So 3 years ago I introduced an alternative solution to deal with those pesky bank fees. Rather than pay the bank to hold my money, I made the bank pay me instead! 😉

Hedge Bank Fees with Bank Stocks

Here’s what I did in a nutshell.

  1. Transfer the $1,500 from my chequing acct to my brokerage acct and use it all to buy TD shares (38 in today’s shares)
  2. Receive dividend payments every quarter as a TD Bank shareholder
  3. Use said dividends to pay for the $3.95 monthly service fee associated with my chequing account

(see my original post from February 2012 for more details.)

Since it’s been a few years I thought I’d post an update to show how my strategy has turned out so far.

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Jan 202015

The Struggle

We can’t get the numbers to work and would appreciate some help,” pleads Eric, a 41 year old physician who lives in Vancouver, B.C. and makes $300,000 a year. His wife is a dentist and together they typically earn a combined household income of $450,000. 😯 Eric regrets “not having bought a house years ago.” He further admits that he has “no pension whatsover.” It’s clear that the couple in this Globe & Mail article has trouble making ends meet.


Furthermore, Eric and his wife do not have life nor disability insurance, which is a dangerous and unnecessary risk, especially when they have five children. With annual expenses totaling $300,000 a year, this desultory family is basically living paycheque to paycheque. So far they’ve put their lifestyles ahead of their financial matters and now, like a crab in financial difficulty, they are starting to feel the pinch. 😀 Oh woe is them. :roll:

Financial Literacy

Vancouver may not be the cheapest city to raise a family in, but no amount of money can fix the problem of living carelessly beyond one’s means. Money can buy a lot of things, but ironically it cannot buy financial freedom, which is where financial literacy comes in. Having money alone is not enough to be complacent. Financial literacy is also paramount to our financial security, and helps us discover what money truly represents. Because what does $1,000,000 in the bank actually mean if we don’t even understand the value of money. 😐

We can also learn to spend with value in mind, prioritizing what’s important to us over the non-essential expenses. We can use these strategies to experience satisfaction and the raptures of life without spending an arm and a leg. Unfortunately no one ever told Eric and his wife about this because they spend $24,000 a year on family vacations, and send their kids to private schools, yet they can barely afford to keep their heads above water, let alone save for their own retirements.

Many celebrities, professional athletes, and lottery winners who were once wealthy are now facing financial difficulties. All those people, just like Eric, have one thing in common; they lack basic financial management skills like budgeting, investing, and financial planning.

Medical professionals are some of the hardest working, and smartest people I know. And they deserve every dollar they make. But having money alone clearly isn’t enough. We must also be financially literate to survive in today’s economy. Intelligence and talent will only affect our abilities to earn a living, but they DO NOT determine our aptitude to keep any of it. 😕 Hard work leads to money, but financial literacy shows us what to do with the money once we get it. 😉

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