Another good resource is Your Money: The Missing Manual, by J.D. Roth, who runs the Get Rich Slowly blog. He has some good advice on goal-setting and realistic expectations. This is part of the Missing Manual series, published by O'Reilly, which originally focused only on computer software but has now branched out into a variety of topics. The book is written for US-based readers so some of the stuff won't apply to us in Canada, but the basic principles of money management and goal-setting are universal.
Cool! I love the idea of "missing manuals." I'm going to check that book out.
and don't forget that it is not the goal that is as important as the journey. Since I have gotten that load of malarky out, I will explain it better.
If you can retire on a million dollars and that will give you your financial freedom, then that perhaps should be your goal. But you need to understand that everytime your net worth increases, your options have improved. You see when you have absolutely nothing but a wagon load of debts and your boss comes in to your office to wreck your day (as is a very frequent event for all of the working class), you don't have many choices but to assume the bent over position and prepare to receive. Now if you have lets say, $100,000 in savings, you may still need to work, but you don't necessarily have to work this week and certainly don't have to work for a moron. You see where I am going with this.
Every dollar you accumulate or dollar of debt you reduce, between now and the time you reach your ultimate goal, still gives you more financial flexibility and freedom every day, even while you are still working towards your goals.
This feeling will feed on itself. Good luck to you.
Originally Posted by OptsyEagle
I should print and frame this.
Starting where you are... you can achieve your goal by saving about $4000 per month. That does not include any interest.
According to TD's retirement calculator you need to contribute about 2800 per month to achieve a $50,000 per year income at 5% interest.
If this is your goal this is what you have to do to make it happen.
You could also pursue other ways of making income, to increase your net worth. For instance you could save like mad and then buy a 4 plex and live in it for a while. If you buy properly you may be able to live for free and make a small cash flow from your property. In 25 years your building could be paid off and rents generated would be income for you.
It is possible and people do it, so don't listen to all these people saying it's not possible. It's not easy but it is possible.
I can say this from my own experience.... find a mate with similar goals and who has a demonstrated ability to save. Working at cross purposes makes it much more difficult.
Tough to guess if it is possible for you, as no annual income/expenses are stated.
As mentioned lots of things can happen in life that can alter your life plan. But you are forming a plan. A great first step.
Best advice I have seen on here yet came from Berubeland 'find a mate with similar goals'. Simply stated.
Stay focused on your goals, reevaluate them periodically, and it will happen. Might be 30, 35, 40....but it will happen.
Wow I has to multi-quote a lot here! Here we go.
FT I have read a lot of your blog, I know you're somewhere on the east coast and you're on a journey I would like to start! If I could do half of what you've done I'd be happy! Thanks
Originally Posted by FrugalTrader
I would love to pay off my student loans haha. Luckily I've always paid cash for cars and can fix them at home. I am looking into the TFSA and I contribute a little to RRSPs but not close to enough so this will definitly be something I will work on. I am on a good road to cut consumer debt, I've been working on it for a bit. Cutting costs on anything and everything. Retirement dates will come, I could retire with the company I'm with on a pension and hopefully whatever I do on the side will compliment it. Thanks for all the great points! Sometimes it's a lot for me to take in and I miss some things. Why can't I just marry a millionaire?
Originally Posted by the-royal-mail
I don't mean to have 1M in cash or in a bank account. I just mean in a net worth setting, so with my house/houses, camp, cars etc. Starting with the basics is definitly the best for me since all of it is new. I knew I should have taken business in University but that's another story. Thanks for the input.
Originally Posted by steve41
Thanks for the calculators and book links. How do I invest in my human capital? I'm not sure I know what you mean. I tried the calculator it says I'm already worth 1.2M haha so that makes me happy if nothing else. I am not crazy about the work I do, so getting my career straightened out is a big thing for me too. I can do what I do but I don't wake up and want to go to work. That's what I would love to find. I shouldn't complain about my job because it is great, great benefits, decent wages and pension and I'm pretty good at it! I am looking at part-time jobs to maybe see if there is other fields I would enjoy. Again, thanks for the help, looks like more books for me to read! Can't wait. I'd like to figure out how I can use all those calculators to help plan my future and see how the numbers work.
Originally Posted by MoneyGal
Thanks brad! I think that'd be a good book to start with that way I can set up a plan with goals that are not dreamy. O'Reilly..takes me back 2 years to university haha.
Originally Posted by brad
It is the journey I'm excited for, I know it's going to be a roller-coaster. I get what you mean with the 1M vs 100,000$ in savings. I would be happy being fired knowing I could take my time to find another job I like instead of feeling pressured to get something right away.
Originally Posted by OptsyEagle
Berubeland, you are very good with numbers I think, I enjoy reading your posts on the property managment side of life. I am looking at increasing my net worth by living in a triplex or 4plex currently actually. One in my town is for sale, needs some work that I could do and I'm still learning on how to crunch the numbers on it to make sure it is somewhat close to positive cash flow. Finding a 'mate' with similar goals is something I never would of thought of, I guess there will be a talk coming up. haha Thanks!
Originally Posted by Berubeland
I would like to form a pretty solid plan that I have in writing so I can see it, read it and remind myself of it daily.
Originally Posted by Cal
Right now I'm at home so my expenses are about 1100$/month. That's all my loans and credit cards, insurance, etc. I gross about 67k$/year. Thanks Cal!
I hope I didn't miss any other great posts! Thanks guys! I now have atleast a better starting point with some of these books I can read to set goals I actually can achieve.
haha that is true. I lived in Ottawa for a year working for the Federal Gov. Also a great job with great pay. Loved the people I worked with but didn't really like the work I was doing. They offered my a full-time permanent job and I turned it down...sometimes I wonder...
Originally Posted by ashby corner
My problem is I love the East Coast too much to leave, not to say I didn't have a blast in ON just not the same as here though. I still go to Ottawa twice a year just to see friends! I love that city.