# ...and so it begins: a 22 y.o.'s journey to financial freedom



## oob (Apr 4, 2011)

- Decided to remove personal information. Will use networthiq for tracking purposes.


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## balexis (Apr 4, 2009)

oob said:


> *Question*:
> Since I'm only going to be starting past the mid-way mark of the year and will only won't gross over 40k in 2011 (get bonus in 2012), does it make sense not to save all of my contribution room?


You mean RRSP contribution room I suppose?

You can contribute to your RRSP in 2011 up to your maximal contribution limit if you want, but make sure not to use these for a deduction in your 2011 taxes. Reporting the deductions to 2012, when you will gave a much higher income, will be the most profitable for you.

Good luck on your early career and I hope you make your plan to become financially independent at 33 come true!


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## Jon_Snow (May 20, 2009)

If I could have commanded that kind of salary at age 22, my early retirement dreams would have already been realized. Good luck...


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## oob (Apr 4, 2011)

balexis said:


> You mean RRSP contribution room I suppose?
> 
> You can contribute to your RRSP in 2011 up to your maximal contribution limit if you want, but make sure not to use these for a deduction in your 2011 taxes. Reporting the deductions to 2012, when you will gave a much higher income, will be the most profitable for you.
> 
> Good luck on your early career and I hope you make your plan to become financially independent at 33 come true!


Yeah that's what I meant. Thanks that's really helpful. I didn't realize you could do that: report the deductions in the year after your contribution.


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## Four Pillars (Apr 5, 2009)

oob said:


> Hi all,
> 
> I graduate this may with a bachelors degree. I'm going to be starting a job with 85+ hour work weeks in July. Base salary is 70-80k with another 40-60k coming in variable compensation first year.


You lost me at the first paragraph. 85 hour weeks? I hope you like the job.


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## Sampson (Apr 3, 2009)

Four Pillars said:


> You lost me at the first paragraph. 85 hour weeks? I hope you like the job.


+1. 

$140k is good, but it is only $70k/yr for normal work week hours.


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## oob (Apr 4, 2011)

Yeah I realize it's not super impressive on a per hour basis and will entail massive sacrifices in quality of life. That's why I figured i'd be disciplined with keeping track of savings so it won't be for naught.


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## HaroldCrump (Jun 10, 2009)

Couple of gotchas:

- what's the nature of the job? is it high stress? is commute involved or is it a work-from-home job?
If it is medium or high stress and/or there is extensive commute/travel involved, there is a high chance that you'll burn yourself out well before your 11 years projection.
11 years is a long time to work 85 hr. weeks.

- if you gross $140K annual starting now, you need some tax reduction strategy otherwise all levels of govt. will eat you up alive and thank your soul.
You will be in the top tax bracket across the board and your disposable income (after all personal and consumption taxes) will be half of that, at best.

- with that kind of time committment, your investing is better suited to passive, index investing rather than individual stock picking, unless you are already an accomplished investor

Finally, keep in mind that these 11 years are amongst the best years of your life.
You are young, wild and have the world at your feet.
Don't squander it away humped up in a cubicle 85 hrs. a week.

When I was 22, I decided to travel the world by working.
So I started looking for jobs abroad and goal was to spend 1 - 2 years in a country and move on.
I ended up working in 4 different countries in about 5 years.
Didn't make much money, but had a lot of fun and expanded my horizons.

Not saying what's right and what's not....we all have to do what works for us and makes us happy because in the end, that's what matters most.


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## oob (Apr 4, 2011)

Thanks Harold.

There will be virtually no travel involved. I plan on renting an apartment as near as possible to work (<15 minutes walk) with a room-mate. I also plan on splitting getting a cleaning lady to do a quick clean-up every couple of weeks. Dinners will be in the cube, so I really have little outside responsibility.

The job's a good stepping stone. I wouldn't have to maintain 85/wk for 11 years. I plan on exploring alternatives after a couple years, it's fairly common to do so in the industry. I'm should be able to find a role with similar pay but only 60 or so hours after a couple years experience. 

I hear you on the life experiences part. I definitely will feel like I missed out on something. I've done 2 backpacking trips and done an internship abroad and those were amazing. I wish I would have taken a gap year after high school. Too bad gap years later after university graduation are as socially acceptable. After all of this, I'd like to spend an entire ski season in B.C. or Colorado and a summer doing nothing but play rugby and drink at dirty pubs. So hopefully I manage to escape the rat race with some health/youth left.

*What tax minimization strategies are available to me?* I have some unclaimed tax credits for university and plan to max out RRSPs. What else would be worth considering? It's definitely a pretty raw deal.


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## I'm Howard (Oct 13, 2010)

25, oldest Son, Graduated from University, teaching English in China for one year is now thirteen years, but He is very happy.


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## crazyjackcsa (Aug 8, 2010)

I can't see it happening. It's just far too aggressive. Just back of the napkin, you need to save 85k a year and make 10% a year on it tax free to get to 1.5 million in just 11 years. Even at 140K a year, you'll be looking at bringing home about that total.


So either you need to make more money per week (maybe 112 hour weeks).
Work longer (maybe 20 years).
Make huge gains in the market (maybe 20% year over year).
Really dial back the net worth (How about an even million).
Or (this is what I would do) give your head a shake and realize every part of your plan is far beyond what anybody could really handle or expect.


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## the-royal-mail (Dec 11, 2009)

I agree with crazy. This is certainly one of the crazier plans I've seen and simply makes no sense. It might be plausible on paper, but get into the real world. Working beyond 40 hrs/week is a good way to burn yourself out in short order. Living on the cheap and walking to work? Good luck with that. If you're working downtown in major cities you'll either be living in a dump or a luxury condo. Why would anyone making your kind of coin choose to bring in a roomate? You're not a university student anymore. It's completely normal and acceptable to get your own place, work regular weeks, have a life and have a sustainable career. What you are talking about is not sustainable. Most of us need to work a lifetime to achieve the sorts of goals described above.

I dunno. I think this is way out in left field. I know I'll probably be chastised for saying "negative" things, but that's how I see things when I read this type of utopian plan. Bring on the flames; I have broad shoulders.


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## humble_pie (Jun 7, 2009)

oof oob i have no advice except to ask please keep on posting U R a riot.

what's dinner in the cube ?

don't tell me. Dried astronaut pellets del'd to yr cubby in plastic container so U can soak em in water for quick gnosh ? Lucky they doing wonderful w replacement surgery these days, U will be needing a new GI tract soon.

(signed)
crusty old-timer pie


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## marina628 (Dec 14, 2010)

I think cube is referred to his office space lol.I recommend he update the thread in 3-6 months and tell us how much he has saved.I save $6000+ a month and been lucky with my ROI the last year.Having said that it will take me 6-7 years to save 1 million.I started with $xxx,xxx when i got my million dollar goal idea too.


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## Dmoney (Apr 28, 2011)

While I think your goals are extremely challenging, if you're willing to put in the work they are definitely possible. I'm not sure what field you work in, but working in investment banking you're expected to put in 80+ hours weekly for at least your first three years, but the compensation scales up extremely quickly.

The biggest hurdle is most likely going to be what the-royal-mail alluded to, in that you're going to end up living a lifestyle that fits your pay package, as opposed to the university student lifestyle you're hoping to live right now. Making 6 figures and living with a roommate is going to be quite a challenge when all of your colleagues are living in $3000/month condos and racking up bar tabs in the hundreds every weekend.


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## steve41 (Apr 18, 2009)

OK... you all knew this was coming......

Here is a 'retiring at 33' plan:-

Oob's plan

Let me know if you want a plan with a higher rate. (it takes no time)

Steve


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## el oro (Jun 16, 2009)

I don't see how making six figures makes having a roommate challenging.


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## marina628 (Dec 14, 2010)

My Brother is 51 years old Divorced with one child who is an adult now.He has two people who live in his house with him as he didn't see point to have a 2000sq ft house all to himself.Also after a while cooking for one is boring ,he is very happy with the arrangement .


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## Echo (Apr 1, 2011)

It's a great plan until you meet a girl three months into it who doesn't share your love for eating in the cube every night.


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## marina628 (Dec 14, 2010)

Yeah that schedule will definitely cause relationship issues lol.Unless you date a girl at the office !


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## Dmoney (Apr 28, 2011)

$1600 Gold by 2011 said:


> I don't see how making six figures makes having a roommate challenging.


Having a roommate in itself may not be challenging (although it often is) but if the Keeping up with the Joneses mentality sets in then I can't see a roommate in the picture. Again, hard work and sacrifices can get you anywhere, so it's all about the level of comfort you want.



marina628 said:


> My Brother is 51 years old Divorced with one child who is an adult now.He has two people who live in his house with him as he didn't see point to have a 2000sq ft house all to himself.Also after a while cooking for one is boring ,he is very happy with the arrangement .


My brother owns a house and currently has 3 foreign exchange students and one local student living with him. They pay rent, which covers all of his living expenses, and in exchange he gets to meet some really interesting people. The arrangement seems to work out for all involved.


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## oob (Apr 4, 2011)

humble_pie said:


> oof oob i have no advice except to ask please keep on posting U R a riot.
> 
> what's dinner in the cube ?
> 
> ...


I'm fairly amused by this. With all the abbreviations and lingo that happen on forums, cube short for cubical gets you this angry? haha


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## Dmoney (Apr 28, 2011)

oob, what field and where do you work?


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## oob (Apr 4, 2011)

the-royal-mail said:


> I agree with crazy. This is certainly one of the crazier plans I've seen and simply makes no sense. It might be plausible on paper, but get into the real world. Working beyond 40 hrs/week is a good way to burn yourself out in short order. Living on the cheap and walking to work? Good luck with that. If you're working downtown in major cities you'll either be living in a dump or a luxury condo. Why would anyone making your kind of coin choose to bring in a roomate? You're not a university student anymore. It's completely normal and acceptable to get your own place, work regular weeks, have a life and have a sustainable career. What you are talking about is not sustainable. Most of us need to work a lifetime to achieve the sorts of goals described above.
> 
> I dunno. I think this is way out in left field. I know I'll probably be chastised for saying "negative" things, but that's how I see things when I read this type of utopian plan. Bring on the flames; I have broad shoulders.


It's a goal. I'm young, it's not meant to be realistic/conservative. If I fail to make it, then I can dial it back and be okay.

Why would I choose to bring in a room-mate? To be honest, I prefer having a roommate to not. I've been out of the house for the last 5 years, and have lived both with a roommate and without. I prefer the former. Also keeps rent down to about 1k/month, making my goals more realistic lol

Keeping the bar tabs will be the most challenging part. I'm pretty frugal apart from a bad habit of waking up after a night out dazed and with no money in my wallet.

I don't think keeping up with the colleges will be an issue. I went to a private high school on financial aid and commuted 1.5 hours each way while my friends were getting dropped off in Ferraris and BMWs. It did't really phase me.

Also I don't think I could just do a regular job. I don't want a normal life. I don't want to move to the suburbs and have 1.6 kids lol. I want to have financial security and the freedom see the world while I'm still young, hence the aggressive target.


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## oob (Apr 4, 2011)

steve41 said:


> OK... you all knew this was coming......
> 
> Here is a 'retiring at 33' plan:-
> 
> ...


Thanks! That's really cool.


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## the-royal-mail (Dec 11, 2009)

oob, please do not quote everything you reply to. It is not necessary and wastes space. See the thread about this in the forum feedback section.


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## loggedout (Dec 30, 2009)

[I think it makes sense to carry forward the contribution to when you are in a higher tax bracket, to maximize your tax savings.

Good luck with your other goals. I wish I was in your position when I was 22. I worked like a dog when I got out of university, but never made that much that early. That's pretty good.


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## I'm Howard (Oct 13, 2010)

oob, take an ESL course, if you are a Grad, Teach English overseas, meet with kindred spirits, great way to see the world while you are young.


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## oob (Apr 4, 2011)

*Overseas*

I'm overseas at the moment and having a blast!
I've been away since early December.


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