Tag Archives: Mr. Money Moustache

Sept 26: Best from the blogosphere

By Sheryl Smolkin

You are back to work after your summer holiday. You have used up all your vacation days for the year. It’s dark outside when you have to get up for work. You’d like to retire early, but life is expensive and forever is a long time.

What are you willing to give up both now and later to achieve your goal? Do you have what it takes to live very frugally? Here are some blogs and blog posts that may give you some ideas if packing it in really early is at the top of your bucket list.

Engineer Tim Stobbs who lives in Regina, Saskatchewan is the author of Canadian Dream: Free at 45. While his objective initially was to retire at age 45, he’s pushed that date back to age 40. His ultimate goal between investments and home equity is a net worth of around $1 million. With a net worth in August 2016 of $883,000, he is getting close to meeting his target. He has some Dark Fears but has come to realize it is impossible to cover off every possible contingency in advance.

Freedom 35 is written by two married engineers in their early 30s living in sunny California to document their journey to financial independence and early retirement. Their Progress to Freedom 35: 2016 Q1 Update reveals that depending on the following projected withdrawal rates, they are less than three years away from bidding adieu to their employers:

Projected retirement date at 3% withdrawal: May 2022
Projected retirement date at 4% withdrawal: Sep. 2019
Projected retirement date at 5% withdrawal: Jan. 2018

Mr. Money Moustache was a thirty-something retiree when he started his blog. He and his wife retired from real work back in 2005 to start a family. “This was achieved not through luck or amazing skill, but simply by living a lifestyle about 50% less expensive than most of our peers and investing the surplus in very boring conservative Vanguard index funds and a rental house or two,” he writes. “Yet the whole country seems to be living ridiculously expensive lifestyles while thinking they are completely normal, and then being baffled when they have no money left over to buy their own freedom.”

getalifetree

Living a FI describes himself as a 38-year old happily retired dude (formerly a software engineer) living in Boston. He says that if you are close to the end of your early retirement journey, what you need to do is Build a Vision of Life Without Work. His favourite approach to managing the transition between work and retirement was created by Ernie Zelinski, author of several early-retirement lifestyle books.  He named the technique the “Get-A-Life-Tree.” (see above). “If you follow this method, you’ll easily wind up with tons of stuff to do, scattered over a few pages,” he explains.

And finally, ThinkSaveRetire is Steve’s blog about financial independence and taking control of his life. He figures that if he is still working at age 43 he has done something wrong. Here are several of his “must reads” if you want to get the most out of his journey.


Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Aug 31: Best from the blogosphere

By Sheryl Smolkin

Tomorrow will be September and that means it won’t be long before you are thrown back into the maelstrom of activity that signifies the beginning of the business and academic year. So this week we continue with our back to basics theme, and bring you excerpts from some of our favourite personal finance writers and bloggers.

I really like The Sabbatical as a Dress Rehearsal for Retirement on the Financial Independence Hub by Adrian Mastracci. My husband retired when a four month sabbatical was refused but fully intends to seek contract work again in the fall.

I’m Not an Entitled Millennial Because I Can’t Afford to Buy a House in the City I Live In by Jessica Moorehous on Mo’ Money Mo’ houses explains why she and her husband decided to rent indefinitely when they couldn’t buy even a small home in Toronto for $500,000 with 20% down.

Mr. Money Moustache asks What if Everyone Became Frugal?. He concludes that it is savers and investors and not consumers that are the engine of economic growth. Only by sacrificing current consumption, can people put money into banks or share offerings, which end up in the hands of new and existing businesses allowing them to increase their productivity. Capital creates productivity, and productivity is the driver of our standard of living.

With Prime Minister Stephen Harper’s pre-election announcement that if elected he will raise the tax-free amount you can withdraw from your registered retirement savings plan to buy a first home to $35,000, Rob Carrick’s column Don’t buy a house at the expense of your RRSP is very timely.

And finally, To owe or not to owe, not such a simple question says Adam Mayers in the Toronto Star. Conventional wisdom has it that you shouldn’t owe anybody anything when you retire because your ability to pay it off is diminished. But as with most things to do with personal finance, he says one size doesn’t fit all. In some cases, it could make sense to pay the debt off slowly.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Apr 13: Best from the blogosphere

By Sheryl Smolkin

There were several interesting provincial budgets this week with provisions impacting the cost of health care for seniors.

The Saskatchewan budget removed 6,000 seniors from the province’s drug plan. Previously the threshold of $80,255 was the cutoff for the drug plan. Anyone with a taxable income in excess of that amount was not eligible for the program. Now, the threshold will be lowered to $65,515.

The Alberta budget added a new Health Care Contribution Levy payable through the income tax system that will cost each Albertan up to $1,000 per year. Coverage and eligibility for provincial public health care programs remain unchanged. Unlike the previous Alberta Health Care Insurance Plan premium eliminated after 2008 that was a flat fee for individuals, the Levy has a progressive structure (See Table at p.87). Each member of a family filing an income tax return who has income over $50,000 will be subject to the levy and seniors are not exempt.

On another note, Mr. Money Moustache, a Canadian blogger living in the U.S. was recently profiled in the Globe & Mail. He and his wife retired at age 30. He says A Lifetime of Riches is As Simple As a Few Habits. This means doing less pointless driving around in your car and making fewer visits to restaurants, bars, and coffee shops. He also says alcohol, drugs, cigarettes, TV watching, video game playing, procrastination, unhealthy eating, sedentary living, and unnecessary shopping are other habits that stand between the average person and a truly wealthy life.

On Brighter Life, Sun Life VP Kevin Press presents blogs that will refresh your understanding of employee pension plans and employee benefit plans. He notes that Canadians who do not enjoy employer-sponsored benefit plan membership are at a significant disadvantage because provincial plans provide limited levels of coverage. What’s more, your reimbursements for health and dental claims are not taxable. So you’re almost always better off if your employer sponsors a plan versus paying you a higher salary.

And finally, an interesting post on Our Big Fat Wallet about getting compensated for a flight delay. Dan booked his ticket with Travelocity and he was not notified when the return flight was cancelled. Fortunately, the airline re-booked him several hours later and he received a $100 rebate from Travelocity and $75 from his Scotiabank Momentum Visa Infinite card that provides coverage of up to $500 per trip for trip delays of four hours or more.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

 

Feb 16: Best from the blogosphere

By Sheryl Smolkin

The days are getting a little longer, Valentine’s Day was this past Saturday and in Alberta, Ontario and Saskatchewan it’s a long weekend. So there is lots to be happy about in spite of the never-ending winter.

But politicians who commit serious crimes won’t be happy because the Bill to revoke politicians’ pensions passed in the House of Commons would apply to future occasions when an MP or senator is convicted of crimes such as bribery or fraud. But politicians convicted of murder or distributing child pornography would not be affected. What am I missing here?

J. Money from Budgets are Sexy lists some of the guilty pleasures that he spends money on and those he items he rarely wastes money on like vending machine snacks, Uni-Ball EYE Rollerball Pens and yard sale splurges. A “no-spend month” and having kids helped him realize what’s really important in life.

Mr. Frugal Toque on Mortgage Freedom is a guest blog on Mr. Money Moustache. A year after the author paid off his mortgage he is happy he has stuck to his plan.  RRSPs topped up. Check. TFSAs maxed out. Check. And the family’s overall consumer spending has not increased.

On Personal Dividends, Miranda Marquit asks the age-old question Can Money Buy Happiness? She acknowledges y that you don’t need to live an extravagant lifestyle to be happy. However, she says that doesn’t mean that money has nothing to do with happiness. Financial security can have a lot to do with how great you feel.

And finally, if you are apprehensive about retirement or you had to take early retirement sooner than you expected, a year from now you may be happier than you could ever imagine. Why? Retirement could be your gateway to a new job says Susan Yellin on Brighter Life.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.