# My Journey to Financial Independence



## BeautifulAngel (Jun 30, 2017)

This is my journey to Financial Independence 

I feel like in order for me to feel financially independent I must pay off my credit card balance of: $415.27 and to have an Emergency Fund consisting of a full years worth of essential expenses. 

*First goal*
Pay off Credit Card 

Specifically I would like to pay off my credit card by August 2017.
This goal is important to me as I'd like to be debt free and work on my credit score.

*Second goal* 
Save $20,000 in my emergency fund.


Specifically I would like to have $20,000 in my emergency fund which includes; rent, food, transportation, utilities (internet, laundry, phone) and medical. 

This goal is important to me because if anything were to happen where I can't work for a period of time or my boyfriend can't work for a period of time we won't be stressed financially. 

My first goal to achieving $20,000 in my Emergency Fund is to get to $1,000 saved for my emergency fund 

My targets are: 
1. To save $200 for Emergency Fund
2. To save $400 for Emergency Fund
3. To save $600 for Emergency Fund
4. To save $800 for Emergency Fund 
5. To save $1,000 for Emergency Fund
(currently at $95)

I do have more financial goals, however these are the two I would like to start off with. 
Once I complete one of my goals above I will work towards another financial goal. 

I'm excited to continue working on my goals and I shall keep this thread and these posts updated


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## james4beach (Nov 15, 2012)

This sounds like a great plan! Please keep us updated.

I'm a moderator of the forum, and I apologize for not approving your post earlier. I did not see it before today. People who are new to the forum typically have their posts moderated for a while, and each post requires manual approval.


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## BeautifulAngel (Jun 30, 2017)

james4beach said:


> This sounds like a great plan! Please keep us updated.
> 
> I'm a moderator of the forum, and I apologize for not approving your post earlier. I did not see it before today. People who are new to the forum typically have their posts moderated for a while, and each post requires manual approval.


I will definitely keep you updated!

No need to apologize  you're doing your job!


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## BeautifulAngel (Jun 30, 2017)

Update

*First goal*
Completed! :eagerness:
Pay off Credit Card

Spcifically I would like to pay off my credit card by August 2017. Completed!! I completed this goal on July 20th 
This goal is important to me as I'd like to be debt free and work on my credit score. I'm so proud that I am now debt free! I can finally put more money towards savings

*Second goal* 
Save $20,000 in my emergency fund.


Specifically I would like to have $20,000 in my emergency fund which includes; rent, food, transportation, utilities (internet, laundry, phone) and medical. 

This goal is important to me because if anything were to happen where I can't work for a period of time or my boyfriend can't work for a period of time we won't be stressed financially. 

My first goal to achieving $20,000 in my Emergency Fund is to get to $1,000 saved for my emergency fund 

My targets are: 
1. To save $200 for Emergency Fund Currently at $92.41
2. To save $400 for Emergency Fund
3. To save $600 for Emergency Fund
4. To save $800 for Emergency Fund 
5. To save $1,000 for Emergency Fund
(currently at $95)

I do have more financial goals, however these are the two I would like to start off with. 
Once I complete one of my goals above I will work towards another financial goal. 

I'm excited to continue working on my goals and I shall keep this thread and these posts updated 

*Third Financial Goa*l
My next big goal is to save $10,000 before September next year for hairdressing school, one year of schooling and then another of volunteering.

I've decided to save this amount because though OSAP would pay for all my course I'd have to go down to working part time which means I won't be making as much and I don't want to be stressed out that I HAVE to work every evening or weekend in order to pay the bills. Also, my boyfriend will be going to University full time making him have to go down to part time hours as wel I feel like $100 is a good amount to save for going to school as I won't be stressed to take a few weekends off if there is something important that I must study for or a project due.

How much money would you save up if you were in my shoes?


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## james4beach (Nov 15, 2012)

Congrats on paying off your credit card! That's a big accomplishment


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## GreatLaker (Mar 23, 2014)

Welcome to the forum. It sounds like you are making great progress. Starting small and making regular consistent contributions to your savings and investments are real keys to financial success.

Here are two good introductory resources that I have found to be valuable:

Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School by Andrew Hallam is an inspirational book about frugal living and low cost investing. It is written by a Canadian with a global perspective. I borrowed it from the library.
https://www.amazon.ca/Millionaire-Teacher-Wealth-Should-Learned/dp/1119356296

If You Can: How Millennials Can Get Rich Slowly by William Bernstein is a great introduction to investing. It is a free e-book and the author says more in 17 pages than many say in hundreds. It is US based, but the same concepts apply in Canada if you just substitute Canadian ETFs for the ones he recommends.
https://www.etf.com/docs/IfYouCan.pdf


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## BeautifulAngel (Jun 30, 2017)

james4beach said:


> Congrats on paying off your credit card! That's a big accomplishment


Thank you! Indeed! It feels like a huge weight has been lifted and I can finally breathe. I definitely plan to stay debt free for the rest of my life.


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## BeautifulAngel (Jun 30, 2017)

*Update*

Since June I have been on Short Term Disability so unfortunately I haven't been able to work on my financial goals these past months. However, great news for my banking account!! I get to return to work next week so I'll be able to save around $300 per month for my financial goals. 

Because I was short term disability and I wasn't making enough money to pay for my medication all my savings are drained from having to pay bills and necessities. :frown: 

The bright thing about being on STD was that it really gave me the push I needed to be serious about my finances and to really save my money. Living paycheque to paycheque is definitely not for me! 

I've decided that my three new financial goals are: 

Save $7,000 for Hair Dressing school in September. 

This goal is important to me as I've been wanting to go to Hair Dressing school for 4 years now and I feel like there is no reason to keep procrastinating and wasting time. 

My action plan to accomplish this goal is to: 

-Not miss any work unless I am in the hospital or for a really good reason. 
-To get a second job (waitressing) in October so I can save all the money I make as a waitress for Hair Dressing School. 
-To create and stick to an updated budget 
-Make sure to pay my bills on time so I do not get late payment fees. 

My boyfriend will help me accomplish this goal as he is a great motivator and now that we live together I feel as though I really want to get serious with my future and my financial area in life. My friend Stacy will also help me accomplish this goal as I have worked for her in the past at a restaurant/bar and she offered to be a reference for me. 

The first steps I will take to accomplish this goal is: 

1. Go back to work (I start next Tuesday) 
2. Create a new budget 
3. Work on resume 
4. Look up restaurants I would like to work at and choose which ones I would like to apply to
5. Print my resume 
6. Apply for position at restaurants 
7. Get interview 
8. Receive a job 

I will celebrate this achievement once I have $7,000 saved for school. 

Save $2,400 for Emergency Fund 

This goal is important to me as I do not like knowing that if anything were to happen and I needed extra money, I wouldn't have it. I also want to feel some financial freedom and in order for me to feel that way I would need to have at least $2,400 in my Emergency Fund by January 2018. 

My action plan for this goal is the same as the previous goal: 

-Not miss any work unless I am in the hospital or for a really good reason. 
-To get a second job (waitressing) in October so I can save all the money I make as a waitress for Hair Dressing School. 
-To create and stick to an updated budget 
-Make sure to pay my bills on time so I do not get late payment fees. 

My boyfriend and his family will help me with this goal as they are very motivational. My boyfriend and I are also planning for the future and that helps motivate me and keep me on track with spending my money wisely. 

The first steps I will take for this goal is similar to the previous goals as well: 

1. Go back to work (I start next Tuesday) 
2. Create a new budget 
3. Work on resume 
4. Look up restaurants I would like to work at and choose which ones I would like to apply to
5. Print my resume 
6. Apply for position at restaurants 
7. Get interview 
8. Receive a job 
9. Start saving 

I will celebrate my achievements by taking my boyfriend out on a nice date. 

Save $15,000 for a car  

This goal is important to me as I would love to go visit my grandparents out of town and my friends in a different province and having a vehicle would make it more easy to get to do those sort of activities. 

My action plan is once I've saved $7,000 for school I will use the money I was putting aside for schooling and save it for a car. I also will try to get extra hours at work so I can save the money faster. 

My boyfriend will help me with this as he is also going to help pay for the vehicle. He is also going to help motivate me. 

The first steps I will take for this goal is to: 

1. Save $7,000 for school 
2. Use the money that I was using to save for school and use it for saving for a vehicle
3. Pick up extra hours as work when available 
4. Look online with my boyfriend to find a used vehicle we both like that is something we both want 
5. Save $15,000
6. Pick a car that my boyfriend and I would both be happy with, but don't rush into buying a vehicle 
7. Purchase a car! 

I will celebrate this achievement by spending a weekend with my boyfriend in Niagara Falls.

I am very excited to start working on these goals and to start saving for my future. I'm also excited to get back to work and stay busy so I don't have the urge to spend. 

I will keep you updated every 2 weeks and share how my journey is going! 

Any feedback, comments or replies are appreciated  

Ashley


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## BeautifulAngel (Jun 30, 2017)

It's been a rough few weeks, but things are definitely looking up! 

Since my last post I returned to work and within two weeks they fired me as I took short term disability and they were definitely trying to get rid of me asap. 

BUT I'm so happy they let me go. I've actually been wayyyy happier without my 8-4 job. Just not for me. Also, for a while (since I went back to work after my short term disability, I've been wanting to work at a restaurant.) 

So, now I am working at an amazing country bar and I'm loving life. I enjoy being able to move for a job rather than sit the entire day. I know other people would think I'm crazy, however, those sit down jobs just aren't for me. 

Now that you're updated on what has been happening/what's going on, let me give you an update on my financial goals as they have changed. 

*Goal #1*- To save $1,000 dollars. I picked this as a goal as I definitely want to be serious about saving for an emergency fund. My complete emergency fund amount that I would like to save is 1 years worth of financial necessities. I've set up an automatic withdrawal of $25 per pay to go towards my TFSA (emergency fund) and any extra money I come across I will also be adding it to the emergency fund. 

Once I've accumulated $1,000 for my emergency funds my goal will be

*Goal #2* To save 3 months worth of essential finances. This is very important to me as life happens and I want to feel financially safe if I cannot work or if anything were to happen.

*Goal #3* To start investing Now I have 3 months worth of essential finances saved so as I keep putting money into my emergency fund I will also start saving to invest my money in stocks. Warran Buffet said that "If you don't find a way to make money while you sleep, you will work until you die." And I would really like to invest some of my money. 

I'm hoping to pick shifts up at the restaurant to get more hours and tips. 

I can't believe that just a job change feels SOO much better and less stressful.


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## james4beach (Nov 15, 2012)

Sorry to hear about losing your job, but it's great that you found a new one that you like. It's important to find a job that works for you, and everyone has different tastes and passions.


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## BeautifulAngel (Jun 30, 2017)

james4beach said:


> Sorry to hear about losing your job, but it's great that you found a new one that you like. It's important to find a job that works for you, and everyone has different tastes and passions.


Thank you! I'm really happy I found this job as well. The 8-4 Monday-Friday don't work for me well as I am a model and actress so a lot of the times I'm out of time and unable to work on some days of the week. Being a waitress allows me to have a fluctuating schedule and it is very easy to get my shift covered if need be. 

Working my 8-4 I was never able to have someone take my shift as everyone worked on the same days, Monday to Friday. 

I agree that it is very important to find a job that works for you as you don't want to be stuck at a job you hate just because of the money or because that's what the majority of people want out of a job. 

Everyone does have different tastes and passions indeed! 


Would you personally enjoy to work a 8-4 Monday- Friday job?


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## Mechanic (Oct 29, 2013)

In answer to your last comment, yes I would work the 8-4 Mon-Fri job if it is steady work. Sometimes you just have to persevere and work a steady job to get a solid financial footing, which will then allow the freedom to do things that you are more passionate about. I would be focusing on which actually puts steady money in the bank and is work that I can rely on, whether it is modelling, acting, working at the bar or restaurant. That would be my focus and any other opportunities that come along should not keep you from that. A bird in hand.....


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## james4beach (Nov 15, 2012)

BeautifulAngel said:


> Would you personally enjoy to work a 8-4 Monday- Friday job?


This is the kind of job I work at.


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## BeautifulAngel (Jun 30, 2017)

Mechanic said:


> In answer to your last comment, yes I would work the 8-4 Mon-Fri job if it is steady work. Sometimes you just have to persevere and work a steady job to get a solid financial footing, which will then allow the freedom to do things that you are more passionate about. I would be focusing on which actually puts steady money in the bank and is work that I can rely on, whether it is modelling, acting, working at the bar or restaurant. That would be my focus and any other opportunities that come along should not keep you from that. A bird in hand.....


Steady 8-4 work is definitely something that can get you solid footing financially, however, I feel like I lose focus quickly when I feel like I'm not being challenged. 

I can understand why most people would suck it up and work there but for me I've tried for years to suck it up and work that way however, for me I like having a schedule that changes (though don't get me wrong, I also love steady hours.) 




james4beach said:


> This is the kind of job I work at.


How long have you been working for the company? 

Is this the first time you've had this kind of work?


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## BeautifulAngel (Jun 30, 2017)

*Update on my financial journey 

I currently have around $40 saved for my Emergency Fund. I am definitely working on it and now that I found a temp job for two weeks paying $18 an hour for 40 hours a week is going to definitely help me out with Emergency Fund payments. That plus my waitressing money can really help me with my Emergency Fund. I'm hoping that after the 2 weeks at the company I can get a full time job (as he did advise me during the interview, depending on the volume of work I may be able to continue working there. (I really hope I can stay at this job, I really enjoy the work that I do and the people I work with) and if not I already have another job lined up at another restaurant that will give me full time hours. 

I'm all caught up on bills, the only monthly bills I have are rent, groceries, pets, phone, bus/gas, laundry which comes up to roughly $890/month. I have all my Christmas shopping done (I like to get it done earlier in the year.. My boyfriend on the other hand... Still doesn't have a gift for his brother lol.
I'm feeling really confident with getting my savings up and continuing to save. Now that I'm out of my slump and I feel way more energized, I've been able to do a lot more during the day then I used to be able to. 

Things are definitely looking up for my financial journey  

What is your current financial goal? How close are you to obtaining your goal? 

*


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## Just a Guy (Mar 27, 2012)

Normally I don't advise strategies but, in your case I think you should try the most common advice of paying yourself first.

Take 10% of everything you earn (paycheques, tips, gifts, benefits, etc.) and put it away right as you get it. Preferably somewhere where you don't think about it as being available (unlike your emergency fund). Think of it as spent money as in you bought a coffee spent, it gone.

Most people adjust their spending to reflect their income. You'll spend up to the amount you have, if not more, so it's better to "not" have it anymore. When you get into a short term money crunch, don't think of this as an emergency fund, find another solution. This money is not to be touched. It'll take a lot of discipline to pull this off, since "emergencies" always seem to creep up. 

In the long run I think this will really work for you. Personally I don't see your current strategy working for you right now.


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## BeautifulAngel (Jun 30, 2017)

Hi Just a Guy, 

Thank you for your feedback and strategy. This makes a lot of sense cause as you said "emergencies" can creep up and I would also like to have money that is honestly saved and not touched. 

For the 10% would you recommend I open a savings account and have money automatically transferred to the account? I'm thinking of getting a new account and putting the card out of sight. 

I definitely want to work on my discipline cause in the past I have had a difficult time actually keeping saved money saved. 

Thank you very much for your wise words and your help! :encouragement:


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## Just a Guy (Mar 27, 2012)

What you do with the money depends on your comfort level. A savings account is a start, better than nothing. A high interest savings account is a better solution. You could take a bit of time and research some etfs or something like TD eseries funds (not my particular area of expertise, but there are people on this board who can give you some guidance. I know there are some no fee ways to get into these or similar products and they follow the couch potato theory, which is a good strategy for beginners. 

If the money isn't in "cash", you may find it easier not to spend (one of the reasons I like real estate, it's hard to spend the money since I'd have to sell the property). 

Automatic withdrawals are a good idea, however it doesn't teach you discipline and that is an important part of managing money. It also wouldn't include things like tips, gifts, found money, etc.

A lot of people cut corners because it's easier. Probably one of the reasons most people fail. Discipline is key.

I notice there's a discussion on eseries funds in the investing thread as we speak.

Also, this may be a good use for TFSA or RRSP account.


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## Mukhang pera (Feb 26, 2016)

BeautifulAngel said:


> Steady 8-4 work is definitely something that can get you solid footing financially, however, I feel like I lose focus quickly when I feel like I'm not being challenged.
> 
> I can understand why most people would suck it up and work there but for me I've tried for years to suck it up and work that way however, for me I like having a schedule that changes (though don't get me wrong, I also love steady hours.)


Any steady work at a fair wage will get one on a solid footing financially. In many union jobs, night and midnight shifts often get a bit higher pay - "shift differential". 

I days of yore I had a job with a rotating schedule, which I personally did not like. It was 2 weeks of days (8 a.m. to 4 p.m.), followed by 2 weeks of nights (4 p.m. to 11:30 p.m.), following by a week of graveyard shifts (11:30 p.m. to 7 a.m.). Days off also varied. Breaks were very regimented. Coffee breaks were _exactly_ 15 minutes. Often the next person could not go for coffee until you were back from your break, so you would feel like a cad for being even one minute over. I can well understand why anyone potentially facing a working lifetime of such employment starting to plan early retirement from the first day on the job.

I have also had jobs where one's hours are tracked by a punch clock. Not sure if those exist anymore. 

For an employee (not a business owner), to my mind the best jobs are those where you pretty much set your own schedule. You are a professional and treated as such. You get paid for getting the job done and not for being seen in your office from 9 to 5, for example. Jobs with a high degree of autonomy. You decide how to do the job, when to do it and you just do it without anyone watching you.


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## My Own Advisor (Sep 24, 2012)

I agree with JAG.

The best way to save money is to automate your savings - take 5% or 10% or whatever you can reasonably afford and transfer it every week if you can into your savings and/or investing account. This way, you can't spend what you don't see.


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## BeautifulAngel (Jun 30, 2017)

Just a Guy said:


> What you do with the money depends on your comfort level. A savings account is a start, better than nothing. A high interest savings account is a better solution. You could take a bit of time and research some etfs or something like TD eseries funds (not my particular area of expertise, but there are people on this board who can give you some guidance. I know there are some no fee ways to get into these or similar products and they follow the couch potato theory, which is a good strategy for beginners.
> 
> If the money isn't in "cash", you may find it easier not to spend (one of the reasons I like real estate, it's hard to spend the money since I'd have to sell the property).
> 
> ...


Very good idea! I will put exactly 10% (or higher) in one of my TFSA's and keep it there. 
I'm pretty exited that my manager at the temp job I'm doing advised me to put in a resume tomorrow so I can be a full time employee there  It'll be nice to make $18/hour at a day office job that I love and keep my restaurant job as well as I'm only getting about 3 shifts a week anyways. 

This may sound like a dumb question, but I'm very curious (and I tried to look for the answer but cannot find it.) Is there a way to set up work pay to go straight to a TFSA? I want all of my restaurant pay to go straight into my TFSA but I'm not sure if I can set that up automatically. 

Thank you very much for your help!


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## BeautifulAngel (Jun 30, 2017)

Mukhang pera said:


> Any steady work at a fair wage will get one on a solid footing financially. In many union jobs, night and midnight shifts often get a bit higher pay - "shift differential".
> 
> I days of yore I had a job with a rotating schedule, which I personally did not like. It was 2 weeks of days (8 a.m. to 4 p.m.), followed by 2 weeks of nights (4 p.m. to 11:30 p.m.), following by a week of graveyard shifts (11:30 p.m. to 7 a.m.). Days off also varied. Breaks were very regimented. Coffee breaks were _exactly_ 15 minutes. Often the next person could not go for coffee until you were back from your break, so you would feel like a cad for being even one minute over. I can well understand why anyone potentially facing a working lifetime of such employment starting to plan early retirement from the first day on the job.
> 
> ...


I agree! Being able to make your own schedule sounds sooo appealing. I just don't know what I want to do yet and what I want to really focus my time and energy on. 



My Own Advisor said:


> I agree with JAG.
> 
> The best way to save money is to automate your savings - take 5% or 10% or whatever you can reasonably afford and transfer it every week if you can into your savings and/or investing account. This way, you can't spend what you don't see.


This does sound like a very smart idea. I really appreciate all of your help and suggestions


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## Just a Guy (Mar 27, 2012)

There is a way to set up automatic transfers, I'm not certain you can do "10%" of all deposits, but you can say "take $100 each week" or whatever. 

Of course a TFSA is just like any other bank account so, when you go to deposit your $1000 paycheque, you can tell the bank to transfer $100 to the tfsa. The tfsa can be set up to automatically diversify your holdings I believe. 

Of course each bank is different, and even each person you deal with at the bank is different (some are quite clueless and will tell you something can't be done when, in fact, it can). 

Best to go in and talk to the bank, tell them what you want to do and see what solutions they can come up with. If they don't give you what you want, try a different branch and ask for an experienced investment person then ask the same questions. Who knows, they may be able to set up a 10% of all deposit transfers, a computer should be able to, just not sure their software can. 

I'm probably not the best person to ask about these kinds of specifics as this isn't my investment style or strategy (it doesn't make it bad, just not the way I decided to do things, I think it'll work well for you). I do know bankers, and the way they operate. They'll try to stuff you into a pigeon hole and don't like people who have different ideas, but stick to your guns, don't let them sell you on high fee stuff or simple contribution methods. Banks aren't there to make you money, they are there to make banks money.


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## Mechanic (Oct 29, 2013)

The problem with going to the bank and talking with the experienced investment person, is that they may get you investing in something with higher commissions for themselves


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## BeautifulAngel (Jun 30, 2017)

@ Just A Guy 

Yeah, I'm going to stick with manually putting in a percentage of my wage and tips. I've met with a financial adviser at my my bank and she was very helpful. Unfortunately, she cannot set it up to take 10% out of a pay cheque they can only do money amounts. I really enjoyed her financial advise as she wasn't trying to sell me something, she asked a lot of questions to see what I personally want out of my money or the accounts. (I feel as though if a personal adviser doesn't try to get to know YOUR needs than they cannot find a great match). 

Thank you for all of your advise and information! 

@Mechanic I actually love that about my financial adviser at the bank. She hasn't pushed me to do anything, she just gives me knowledge and explains different options for me as well as she took off the bank fees for my chequing account so I no longer have to pay monthly fees. 

I got really lucky with the financial adviser, we actually talk outside of work as well.


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## BeautifulAngel (Jun 30, 2017)




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## Just a Guy (Mar 27, 2012)

Remember there are different styles of sales techniques. There is the famous hard sell, think used car salesman. There is also the famous pressure sales, think infomercials. There are also a number of other techniques...one of which is the soft sell. You "make friends", get to know the mark, um I mean client, gain their trust, make small little suggestions that are harmless...then gently up the ante. 

I highly recommend going to the library and reading up on sales techniques. They are one of the best skills you can develop as well as the best defence against having techniques used against you. Books on frauds and scams are also quite entertaining and informative.


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## BeautifulAngel (Jun 30, 2017)

An update on my current financial situation and my next financial goals. 

It's been a while since I've updated you on my financial journey and I am excited to get you caught up on where I am financially and what I would like to work towards next. 

Since the last update: 

-I've been able to get a job at a club. Currently I only work weekends however, the owners also own a restaurant downtown that I will start working at some time next week. 
-I've been reading books on finances, saving, focusing on goals etc. 
-I've also been able to spend a lot of time really thinking of what financial freedom means to me. 

So first things first, I am currently still on OW, though I really hope by next month I won't need to be on OW anymore. I love my job at the club, it's been giving me the opportunity to get back into the work industry and I really enjoy the social aspect of it. I'm excited to start at the restaurant and I will be working my way to full time hours. (Yay!) 

I've been able to save up money in my RRSP as well as in my TFSA. I'm at a place where I am no longer stressing over unpaid bills, which I am soo thankful and happy to say. I've been able to pay all my bills on time and still have some left over. 

The next thing I'd like to work on is to save 20% of everything I make as well as to try to save the money I make from my pay cheques and put it towards my emergency fund. 

I'm excited and proud that I have been able to not only be able to go back to work but to find a job I really enjoy doing and being able to work towards my financial goals while I work. 

I shall update you again soon!


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