Could I be doing more? - Page 3
Page 3 of 10 FirstFirst 12345 ... LastLast
Results 21 to 30 of 98

Thread: Could I be doing more?

  1. #21
    Super Moderator
    Join Date
    Nov 2012
    Location
    Pacific
    Posts
    8,018
    You have more than enough income to become rich. Your household income is very high.

    You must begin meticulously tracking your spending. Create a spreadsheet and create an entry for EVERY amount you spend more than $5. Put a code in the column next to it, like
    F = food
    E = entertainment
    H = housing and home related
    C = consumer goods/toys
    K = kids

    Collect this data for a few months and then analyze exactly where your take-home pay is going. As others have said before, figuring out where your money is going is a very important factor. Personally I think it's a bigger part of building wealth than investments. (The returns/gains from controlling spending will far exceed any investment gains).

    That being said, you really ought to have much more in your TFSAs. Things like your savings and stocks can go inside the TFSA. This is the best tax shelter available... generally better than an RRSP, even.


  2. #22
    Senior Member
    Join Date
    May 2010
    Posts
    1,951
    Quote Originally Posted by showmethemoney45 View Post
    The things I dream for are as follows:

    New house 2.5M (inflated cost 10 years from now)
    cabin 250k (price now)
    Condo 400k (for my parents when then get old)
    kids RESP etc 200K

    =3.35M
    You seem quite obsessed with housing, particularly for someone living in a one horse oil town who I would think is feeling quite a bit of pain right now with 2.7M (last year's value I'm sure) in property.

    I don't think pumping every cent you have into three houses is a wise financial strategy for building wealth.

    Then again, this year and next may be excellent times to buy property in Alberta if you anticipate a recovery eventually (I do).

    Then again,,, you are already massively leveraged, and I doubt the bank will be willing to give you much more. No one would recommend someone earning $30k/year to buy a $300,000 house, and it is certainly even worse for someone making $300,000 to have $3,000,000 worth of house! Worse for the bank (higher risk) and worse for the borrower (it could ruin you if things turn sour).

  3. #23
    Banned
    Join Date
    Apr 2011
    Posts
    1,939
    I read it Peter as this is her goal in 10 yrs time(those being the items that would make her feel 'rich'?i think?)
    I personally think to be successful at any thing and work towards any goal tracking is highly important and having little milestones etc
    I don't doubt you have a high income but it is a little concerning you don't have a 'handle' on your personal balance sheet
    It's nuts you can't account for roughly 8k a mth in your budget lol

    Maybe i am a different bird(doubt it,lol)but 1st things 1st get a handle on where your money is going!my 2 cents-was said up thread.

  4. Remove Advertisements
    CanadianMoneyForum.com
    Advertisements
     

  5. #24
    Senior Member My Own Advisor's Avatar
    Join Date
    Sep 2012
    Location
    Ottawa
    Posts
    4,874
    "The things I dream for are as follows:

    New house 2.5M (inflated cost 10 years from now)
    cabin 250k (price now)
    Condo 400k (for my parents when then get old)
    kids RESP etc 200K

    =3.35M
    Think this is possible in the by the time we're 45? (10 years from now)"


    These are good and ambitious goals. I wouldn't be too concerned with a "rich house", I'd be more concerned with generating long-term cash flow to do whatever you want. There is no point in being "house rich" and cash poor.

    I would focus on building assets (beyond your primary residence) that generate cash flow. Then, with that cash flow, you can do whatever you want...own and pay for expenses in a fancy home, downside the primary home and have other homes, have one home as home-base and travel the world; buy stuff - your designer jeans all the time; etc.

    Again, I would focus on building assets that generate income and use that income to fund the lifestyle of your dreams.

    Just my $0.02!
    Hidden Content - Working on a $1 million portfolio and $30k per year from it.

  6. #25
    Senior Member
    Join Date
    Aug 2013
    Posts
    1,860
    Because we could never afford one, I've always shaken my head when we drive by the multi-million dollar houses (I mean the opulent ones, not those in Vanc
    Even if I could afford one, the thought of all those ongoing, embedded costs (taxes & util, upkeep..) would keep my semi-frugal (cheap?) nature from owning one.
    The OP has some other priorities (i.e. where does the money go) before finalizing their future goals, but when that time comes I would really think about what is important, what financial independance is worth to you, and how much you want to have tied up in a roof.

  7. #26
    Senior Member tygrus's Avatar
    Join Date
    Mar 2012
    Posts
    1,147
    IMO, you have nice income, but are dangerously over levered in one asset area, real estate. Also, you are making the inaccurate assumption that housing will go up forever. I can tell that just by your 10 year inflated cost calculation. Housing is not tied to inflation, its tied to wages and interest rates.

    So those two things should tell you something right now, interest rates are as low as they are ever going to be and wages will be under severe pressure for years to come because of the oil situation. Calgary is a one trick pony. I lived and worked their for 10 years so I know. Your RE assets are likely to lower in a few years time. Shave 20% off your home and rental properties then take a look at your situation.

    And maybe just a little tip for the poster, you are pretty wide eyed about wealth and its great and all, but freedom is your biggest asset. I retired at 39 and now nobody controls my path but me. I live in a area with lots of 1 million dollar houses around me, but noticed one thing, the owners still get up and go to work at 7 am. I am making breakfast for my kids in my PJs at that time.
    Last edited by tygrus; 2015-03-06 at 10:45 AM.

  8. #27
    Senior Member
    Join Date
    Apr 2009
    Posts
    330
    hey tygrus, you're one smart fella

  9. #28
    Senior Member
    Join Date
    May 2010
    Posts
    1,951
    Quote Originally Posted by tygrus View Post
    I retired at 39 and now nobody controls my path but me. I live in a area with lots of 1 million dollar houses around me, but noticed one thing, the owners still get up and go to work at 7 am. I am making breakfast for my kids in my PJs at that time.
    tygrus - If you don't mind my asking, what age were you when you got married and had children? Did you plan to stop working so young before having kids or did your plans change after they arrived?

  10. #29
    Senior Member
    Join Date
    Feb 2015
    Posts
    148
    Quote Originally Posted by tygrus View Post
    IMO, you have nice income, but are dangerously over levered in one asset area, real estate. Also, you are making the inaccurate assumption that housing will go up forever. I can tell that just by your 10 year inflated cost calculation. Housing is not tied to inflation, its tied to wages and interest rates.

    So those two things should tell you something right now, interest rates are as low as they are ever going to be and wages will be under severe pressure for years to come because of the oil situation. Calgary is a one trick pony. I lived and worked their for 10 years so I know. Your RE assets are likely to lower in a few years time. Shave 20% off your home and rental properties then take a look at your situation.

    And maybe just a little tip for the poster, you are pretty wide eyed about wealth and its great and all, but freedom is your biggest asset. I retired at 39 and now nobody controls my path but me. I live in a area with lots of 1 million dollar houses around me, but noticed one thing, the owners still get up and go to work at 7 am. I am making breakfast for my kids in my PJs at that time.
    I agree with your housing tips. I agree that we are (or were) overlevered in real estate. If it was up to me we wouldn't have as many rentals but my husband is sometimes a day dreamer who thinks real estate is always the answer and it could never "go bad." We've made mistakes and had a few hard years with negative cash flow but now we've made it out (somewhat). You're right- I think people assume that real estate will go up forever and that thinking will get you into trouble. Also, its not the same as investing-its like another job!

    But what to do now? Whats done is done....Moving forward would you pay down the properties to increase cash flow? Or use you positive income to invest in stocks/RRSPs/DRIPS etc? Or use all your extra income to pay down your primary residence to keep your tax deductible expense the longest?

    First thing first-tracking our family spending! I've recorded our last 6 months as thats how long we've had our full incomes-attachment to follow.

    And again you are right freedom is the best asset. I have no desire to own a nice home if it means i have to eat mac and cheese and stay home all day. Also, a too big of house is too hard to keep clean!

  11. #30
    Senior Member tygrus's Avatar
    Join Date
    Mar 2012
    Posts
    1,147
    I retired, got married and had a kid all in in my 39th year. This wasn't really a plan but it worked out.

    When I was a bright eyed engineer out of university, I got a job in the patch when I was 26. The money was ok, but I HATED working for someone else. My bosses were always these suck up type A'ers who wanted to micromanage me, gave me no freedom and I had to beg for a raise each year. I tried a couple different companies but always found the same thing. In my last job I was jetting all over NA attending endless meetings and getting home friday nights at midnight all on my way to gaining 100 lbs and about 6 months of insomnia. That was enough.

    Fortunately 10 years earlier I had started to build alternative income in a business and investments and it was time to make a stake on my own. The first year or so was scary without a paycheck coming each month, but that soon subsided. Now its a beautiful thing and its income for life, even if I live to 100.


Page 3 of 10 FirstFirst 12345 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •