Frugals in Canada but Spenders abroad...

[kaleb0]

My wife and I are a young, childless couple who could probably win a competition for being frugal. However, we have a very split-life when it comes to money in that while in Canada we don't spend anything, but when we travel abroad we go crazy.

I'm 25 years old, just a highschool graduate, and I work at a call center in one of Ontario's most economically-depressed cities as a 'Team Coach/Team Manager' for a measly $12.20/hour - a job that aside from the low pay, I actually enjoy thoroughly enough that I often work 50+ hour weeks when I am only required to work about 42 (overtime pays 1.5 times so it makes it worth it money-wise too).

While in Canada, we live together in a Bachelor apartment, splitting the rent of just $495/month which includes Electricity/Water/Heating, etc.

We don't have any vehicles, the building we live in is literally right next to 2 very convenient bus stops, and my company provides a transit pass to me at a just $55/month through a partnership with the local transit agency.

Suffice to say, our place is pretty small, but very clean, well furnished - new carpet, new fridge, new stove, new toilet, new bath. It looks very minimalist and uncluttered as neither of us have much desire to collect "stuff". She doesn't work full time but does some work as a freelance translator.

The flip side...

We met in Japan, where she is from, when I went there to Study Japanese abroad as a sort of youthful adventure (financed entirely by yours truly via part time-jobs in highschool might I add). This might explain why we're just fine living in such a small place. Unlike our humble life in Canada, when we travel abroad, be it back to Japan or anywhere else, we spend money without thinking and live a totally different type of lifestyle.

I do keep a large portion of my savings untouched for the long term, for example the TFSA, Brokerage account, etc. Right now my portfolio is about $40k and about $12k of that is 'disposable savings' for our next adventure.

I'm questioning the wisdom of this type of lifestyle - and I suspect many people would disagree with it, or even think we're crazy for being so incredibly frugal at home while being so incredibly spend-crazy abroad. I myself am beginning to think of the long-term more.

I thought I'd share this though, as it has been a rewarding way to live for someone who won't make more than $33k this year, and has allowed me to enjoy the best of both worlds - adventure, and financial security.

[humble_pie]

and another resourceful, talented, creative, interesting young person who's got life by the tail & who's good at managing his money lands on cmf forum !

kaleb you've managed great so far. If you yourself are already beginning to "question the wisdom" of how you've been living out your fun & salad days, then you don't need suggestions from anyone in this forum. When the time comes to make a change, you'll have already thought things out.

3 big possible expenses loom in the future. Any one of the 3 or any combination would probably muscle into your travel/adventure budget. They are, in no particular order: higher education; a child or children; and a house.

if you're a manager already at 25, clearly you're cut out for better things. A college degree would boost you along much faster than no degree. What areas interest you the most ... languages, culture, international business ?

and your wife, too, would probably enjoy taking courses. If canada is her adopted country, it's a great way to learn about the place while making new friends. And in the end, a college degree will help her to advance in her chosen profession just as much as it will help you.

[Plugging Along]

I think it's great the way you're managing. Humble was right on the money in terms of what's next in your future. If you believe that your future will hold the more expensive things (kids, house, higher education), then you will need to set aside some money for it.

However, I actually see nothing wrong with being really frugal in some areas, so you don't have to be frugal in others. To me this just shows you have a balance of your personal priorities, and understand that you can't have it all and know what you put value in.

For me, I can be extremely frugal in some areas that it seems crazy, yet will spend lavishly in others. I will do crazy things such as buy 100 lbs of chicken and butcher it and prepare it myself, to save on groceries, then I will go out (on occasion) and spend $200 on a bottle of wine. It comes down to where you see your value.

Everyone will have their own view on what is value, or what they would spend money on. I tend to look at my spending in terms of goals and what I consider responsible spending. First, I look at debt, or lack of debt. If someone has no consumer debt and will not put themselves into debt in their purchase, then it may be okay. I then look at is there money for the future in terms of emergency funds, and making sure that the important things in life are covered. For us, I need a large emergency fund, and always make sure that my kids education and my future is being considered. If I'm making these two first criteria, I don't have problems spending money. I figure I will brown bag lunches, reuse items, etc in order to splurge in other areas.

I think you have done exactly that. You seem to be balancing your love travel and nice trips with your future and the rest of your life.

I would consider seeing if there are opportunities to improve yourself in terms of earning potential, because I have found as you get older, things have get more expensive.

[Toronto.gal]

I thought I'd share this though, as it has been a rewarding way to live for someone who won't make more than $33k this year, and has allowed me to enjoy the best of both worlds - adventure, and financial security.

It was nice of you to share Kaleb0!

HP's 1st line summarized it so well, but I also wanted to say that your attitude is fantastic & that I enjoyed very much reading such a positive post; didn't find a single complaint and I found that refreshing! :)

Also, you're not 'just a high-school graduate' & though not in salary yet, you're a lot more accomplished at 25 than you're giving yourself credit for.

I hope you'll continue your education & wish you best of luck to you & wife in your future endeavors!