# Financial Plan completed - now relearning how to spend



## none (Jan 15, 2013)

I see a lot of posts on this board about people commenting about how they can't discuss financial things with friends. Well I have that problem too and b/c I'm a single Dad I don't have a spouse to talk about it either.

Anyway, last night I finished what I called my 2-years of austerity financial plan. Basically, it was saving 50%+ of my income with the goal of trying to financially recover from my recent divorce. A 50% savings rate on a BC Prov. government salary while living in Victoria and being a parent hasn't been that easy (but not THAT hard either). I still plan on saving my maximum TFSA contribution each year until I retire. Anyway, feels good to have accomplished that.

Now I need to relearn how to spend. Anyone else struggle with this?. 

Seems like a trivial problem but re-learning how to spend can actually be a bit difficult for people.


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## 319905 (Mar 7, 2016)

^ If a person has philosophies, codes of conduct, ... things like that in place then such problems don't come up ... is my philosophy. For example, I have a philosophy of frugality which I loosely define as getting/spending what's appropriate ... e.g., my 10 year old jeep suits me perfectly. Learning to spend? What the heck kind of goal/philosophy is that? I know what you mean though ... I live well beneath my means which completely baffles one of my buddies.


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## none (Jan 15, 2013)

Sure but 'what's appropriate' is dependant on what your goals are. Not that my goals have changed (I don't need to save so much) I need to modify my 'code of conduct' so that I can spend more and not feel guilty about it. I've heard many stories of retirees who have scrimped and saved throughout their lives so that they may have a comfortable retirement who are unable to change this behaviour and continue to live like a pauper in retirement despite them having more than enough money in the bank.

Behaviours and habits can be a bit difficult to change. I was to live the dream of the last cheque I write bouncing.


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## Eclectic12 (Oct 20, 2010)

none said:


> ... Now I need to relearn how to spend. Anyone else struggle with this?.
> Seems like a trivial problem but re-learning how to spend can actually be a bit difficult for people.


I have intentionally made sure to always spend a bit on myself or friends.

My dad used to comment on how his mom had spent so many years sacrificing to help the kids that when the kids all had good paying jobs and wanted to spoil her a bit ... she had lost the ability to enjoy what had been given.


Cheers


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## 319905 (Mar 7, 2016)

Just Googled "learning how to spend money" ... http://www.moneysense.ca/spend/shopping/how-to-spend-money/ ... enjoy the day :encouragement:


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## My Own Advisor (Sep 24, 2012)

"Now I need to relearn how to spend. Anyone else struggle with this?."

Yes and no. I struggle with finding a balance, some weeks I'm cheap - others - I don't care as much.

You have a good job and you're doing very well it seems - single parenthood cannot be easy emotionally or financially.

Saving 50%+ of your income is impressive.....well done.


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## none (Jan 15, 2013)

Thanks Mark - having a ton of tax credits and deductions from too much schooling admittedly helped a lot.

Plus I recently got a temporary promotion at work which gave a bit of a pay bump. I'm looking forward to my demotion in a few months though. Management sucks. Put me back in the trenches please!


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## cashinstinct (Apr 4, 2009)

Fill up your TFSA, RRSP and your children's RESP (annual amount for maximum grant).

How much income % savings does that require? 

When you are done with TFSA, RRSP and RESP, no guilt to spend the rest.

You can end up having non-reg investments if you don't find anything worthwhile spending on or if you want early retirement.

___

With a 2 year old child, a house that needed many repairs, a car that was wrecked in a accident, I did not struggle finding things to spend on this year !!!

Since my RRSP, TFSA and child's RESP are under control, it's OK. I say to myself it's normal to spend money, as long there is money to invest too.


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## none (Jan 15, 2013)

That's a bit simplistic. My RRSP & TFSA (as is the RESP) but I needed a decent amount of non-registered investment to meet my financial goals projections. Now, however, that's my plan, simply max out my TFSA, RRSP & RESP from now on and I'm good. Doing that will really only require $200 or so a paycheck. Not a big deal at all. Easy peasy.


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## cashinstinct (Apr 4, 2009)

none said:


> That's a bit simplistic. My RRSP & TFSA (as is the RESP) but I needed a decent amount of non-registered investment to meet my financial goals projections. Now, however, that's my plan, simply max out my TFSA, RRSP & RESP from now on and I'm good. Doing that will really only require $200 or so a paycheck. Not a big deal at all. Easy peasy.


For sure it's simplistic, not a financial planner doing a full plan 

Congrats on 50% saving rate.

I assume you are paid weekly to require $200 per paycheck? ($200 X 52 = $10,400 so $5,500 for TFSA, $2,500 for RESP assuming 1 child and the rest is RRSP what you have after DB pension plan?).

You are now "free" to spend what is left.


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## none (Jan 15, 2013)

No I get paid bi-weekly. 26 * 200 = $5200 a year.

RESP if covered by kid tax credit and I have a DB pension so I can only really put in about an additional $2K per year into my RRSP which is covered by other random tax refunds having to do with child care, union dues etc.


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