May 302016

Always have a Plan B, because you never know when the condom might break. Of course having a backup plan for one’s career or business is also a good idea. I recently read an article by James Altucher on the importance of having a plan B. There’s nothing wrong with having a single job or a main goal to focus on. But most people these days will not be working for the same company for 40 years and then retire into a comfortable pension program. So what we need to do is to figure out a plan B, just in case our initial career choice doesn’t work out the way we want it to.

Maybe we think our job is secure because the boss likes us. 🙂 But maybe he only likes us as long as we’re providing him with a great value or service. But if our work performance suffers in the future due to some unforeseen reason then we could be in trouble. The company needs to have a plan B in case we decide to quit or retire early. 🙂 That’s why we need to have a plan B as well, in case they no longer require our services. Just last week it was reported that Foxconn, the manufacturer of the iPhone has replaced 60,000 of its workers with robots. As technology becomes faster and smarter, more companies will look into automating their services. A former executive from McDonald’s mentioned “it’s cheaper to buy a $35,000 robotic arm than it is to hire an employee who is inefficient, making $15/hr bagging French fries.”


If the fate of our plan A lies in the hands of just one company’s decision then it is only a matter of time before our plan fails. This is because companies have to change and improve in order to stay competitive and profitable, and some of those changes are not up to us. So if we have a plan B, at least we can have something else to fall back on in case our career doesn’t work out.

Resorting to plan B doesn’t mean we have failed. On the contrary, having multiple plans will only make us stronger, more experienced, and better prepared to deal with changing life circumstances. But we don’t have to stop at just plan B. We can make a plan C, D, E, and so on. If our plan A doesn’t work, at least we have 25 other letters of the alphabet to work with. 😀 In fact, financially savvy individuals have put in place multiple plans all running at the same time.

“The average multi-millionaire has at least 7 different sources of income. You can’t have 7 full time jobs. A “source of income” takes up much less time than a boss paying you to sit in a chair. So, do the opposite of focus. Try to help people in many different ways. Then many different types of payment will come your way.” ~ James A.

I think that’s true. One way to create a backup plan is to discover ways you can help someone else. If you are able to provide even $1 worth of value to others, and offer that to a million people, then you will make 1 million dollars! 😀 I only have 5 income sources right now so if I lose my 9 to 5 job I can at least rely on 4 other means of income to sustain my lifestyle. One day I will build up my income streams so that I will have 7 different sources of income, just like the average multi-millionaire. 🙂

Random Useless Fact:



Dec 292013

Back in 2010 when I started this blog I set out a goal to reach financial freedom by the year I turn 35 years old 😉 I didn’t know exactly how I was going to do it but I knew I had 12 years to figure it out. Fast forward to today and I’m 26 years old with only 9 more years to reach financial independence 🙂 According to my latest net worth statement from last month, here is a simplified look at my current balance sheet.

Home = $252K
Farms = $325K
Stocks (Inc Retirement Funds) = $161K

Total debts = $535K

So how do I plan to reach financial freedom by 2022? It’s simple. Invest $5,000 a year into my stock portfolio for the next 9 years. In 2022 sell my farms and use that money to pay off all my outstanding debts. Live off dividend income forever 😀

Pretty straight forward eh 🙂 If Canadian farmland appreciates by 4% a year for the next 9 years, then my farms should be worth about $463K by the year 2022. After commission and capital gains tax I can expect to keep about $420K for myself.

Right now in 2013 I have about $535K of total debt. Next year I expect to pay down $10K of it simply by making the minimum payments on my mortgage, farm loans, etc. And the year after that my debt should be down another $11K as more of my payments will go towards the principle. I’m sure you’re all familiar with a loan repayment curve 🙂


After the entire 9 years I should only have roughly $420K of debt left without having to make any additional lump sum or accelerated mortgage repayments. I will use the proceeds from selling my farms ($420K) to completely pay off this remaining debt. Hey that worked out pretty well! This also answers the question people often ask me, “Liquid, how do you plan to pay off all your debt?

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Apr 022012

I’ve noticed that many other financial bloggers like to challenge themselves to limit their number of days they spend money, for example, they may try to go for 5 no-spend days for a week to see if they can restrain their spending to only 2 days. Up until now, I have only planned for, and kept track of how much I spend, but never how often or how many days I spend, which I’m now quite curious about (゜゜)~ I don’t think no-spend days are super useful from an accounting perspective because if I don’t buy milk today I can always buy it tomorrow, along with anything else I might need for the week. But I think it teaches us to plan our spending more efficiently, like maybe grouping errands together to save time or gasoline. Lots of other bloggers say no spend days are very beneficial for their financial lives, so I’m going to give this thing a try too and see how it goes (゜o゜)

For the Month of April I challenge myself to 25 no-spend days.

I think the effectiveness of no-spend days depends on one’s discretionary expenses. If I don’t spend too much on toys, fast foods, and luxuries then most of my expenses are probably basic needs which I can’t do anything about and have to pay sooner or later anyway, like hydro (electricity) or groceries.  April has 30 days, so with 25 days of no spending, I still have 5 days remaining when I CAN spend money. This will be an interesting experience for me because I have never done this before. I’ve created a new table on the right side of this blog which I’ll try to update everyday (April’s 25 No Spend Days Challenge) 

Unfortunately today is only the 2nd day of the month and I have already used up 1 of my 5 days of spending. My mortgage and strata fees (HOA) are always due at the beginning of the month and since yesterday was a weekend, the mortgage and strata payments were automatically debited from my bank account today. This means I have 4 more days in April to spend in order to be successful with my challenge. I will need to plan my spending carefully so that I can combine multiple expenses on the same day, like groceries and loan repayments for example. Ok, I’ll give an update later this month (=^_^=)

Here is the mid month update
and here is the end of month conclusion

Random Useless Fact: For every $100 spent at a locally-owned business, $68 stays in the local economy compared to only $43 if spent at a national chain.