As Didi says in the novel (Findependence Day), “There’s no point climbing the Tower of Wealth when you’re still mired in the basement of debt.” If you owe credit-card debt still charging an usurous 20% per annum, forget about building wealth: focus on eliminating that debt. And once done, focus on paying off your mortgage. As Theo says in the novel, “The foundation of financial independence is a paid-for house.”
The four-day Canadian Financial Summit 2020 edition kicks off at 8 pm EST (5 pm PST) tonight (Oct. 14): an all-virtual event featuring 30 personal finance speakers and financial bloggers. You can get tickets and catch up here. Tickets are free via the website.
After kicking off with a webcast tonight, the online event runs till this Saturday, October 17.
Kornel Szrejber
The summit’s host is Kornel Szrejber, who runs the finance and investing podcast The Build Wealth Canada Show. Szrejber [pictured right] says on the site that he became one of Canada’s youngest retirees at age 32 (“before I got bored and took on the Podcast and Summit as passion projects,”) following a career in the financial planning and investing industry.
The event will also feature the experiences of two others who are among Canada’s youngest retirees, Kristy Shen and Bryce Leung, who will pass on their wisdom about how they reached retirement at so tender an age.
Scheduled speakers include Rob Carrick of the Globe & Mail, former Toronto Star financial columnist and consumer advocate Ellen Roseman, and Financial Post columnist Peter Hodson.
There are also several names that should be familiar to regular Hub readers: BoomerandEcho’s Robb Engen, MyOwnAdvisor’s Mark Seed and certified financial planner Ed Rempel. (The Hub often republishes their blogs.)
You can see some of the other speakers below, including Tom Drake, Kyle Prevost and other well known bloggers and personal finance gurus.
Financial Independence is a goal that many have and encompasses a variety of different elements into its equation. Depending on the type of lifestyle you live, the type of costs and expenses you have, and the amount of income you generate, Financial Independence is something that incorporates each one in a different way.
Becoming Financially Independent is a process that takes a bit of time and learning a few important principles. Understanding what you can and cannot afford, what is essential versus non-essential, and the type of security or stability that you’re comfortable with as well, are all important when it comes to Financial Independence (aka Findependence).
Continuing to work and generate Income
Working towards Financial Independence is an ongoing battle, one that requires constant effort, continuous working, and keeping a close eye on expenses. Continuing to work is an important element to the Financial Independence equation, as it allows you to continue producing income, and keeping the flow of money coming in.
One of the aspects of life is the way it continuously moves and flows from one thing to another. Along the way, there are often costs, unexpected expenses, and bills that may arise. By continuing to work and generating income, you can not only have the ability to pay your current expenses or costs, but you can also maintain the assets or resources you’ve been able to acquire as well. If the time comes when the flow of income stops, you might look towards the assets or resources that you’ve been able to acquire or build up over time. Continuing to work and generate income is an element to the Financial Independence equation that is important to consider, and important to continue producing, in order to continue managing and keeping your expenses in check, while also protecting or preserving the assets or resources you’ve been able to acquire over time.
Managing Expenses
One of the important elements to the Financial Independence equation are the types of costs or expenses you have as well. Depending on the amount of costs or expenses you have, you can then figure out how much you need to generate or income you need to produce. Considering the amount of costs or expenses you have, gives you a framework of how much income or money you need to generate in order to continue moving forward, or to continue affording the lifestyle you’re currently living.
The expenses you have is something that is very well within your control, even though controlling them might be difficult. Whether it’s reducing the amount of money you spent on food or entertainment, or cutting down the costs of the monthly subscriptions or memberships you have, the costs or expenses that you have is something that is well within your control, and important to manage when trying to become Financially Independent (or “Findependent.”)
What you can afford versus what you can’t afford
This element is important, as it will guide you or direct you on the type of spending decisions you make, the type of purchases you decide to purchase, and the type of lifestyle you decide to live. The amount of income you have often plays an important role in what you can and what you can’t afford.
Based on the amount of income you have, you can get a sense of the type of house, apartment, or living space that you can afford. You can figure out what you may think is too much, or will be pushing the envelope too far, or what you feel comfortable with and is within your means. Part of figuring out what you can and cannot afford is also how you like to live. Whether it’s with a high level of security of comfort, or you like to push it to the limit, and try to maximize or utilize all the resources you do have. Part of it comes down to what you feel comfortable with, and what you’re ok with, because Financial Independence is something that is different for everyone, with different types of lifestyles, costs, expenses, and goals alike.
Living below your means
Part of transitioning and becoming Financially Independent for the long haul, is learning how to live below your means and what you can manage for the foreseeable future. Especially in the beginning it may be tough, as you’re accustomed to or familiar with a different type of lifestyle: one that you may not be able to afford, or able to manage, but by living below your means, you can begin your journey of Financial independence.
Living below your means means earning more than you spend, and deciding to make purchases or increases in lifestyle in a slow fashion, in a way that you can accumulate or save and prepare before taking on a larger share of expenses or costs. While it might not be what you once had, or what you envisioned, living below your means allows you to have the freedom and flexibility to navigate the other costs, expenses, or spending decisions you may want to make. Whether that’s opening a business one day, investing into assets you like, or rewarding yourself with something you desire, living below your means can be the engine to getting to where you want to go, and give you the ability to manage or navigate the different life expenses or unexpected costs that may come your way.
Saving and Preparing
Another element that can be important for your Financial Independence is saving and preparing for what may be ahead. Whether it’s a goal you have, a path you want to pursue, or something that unexpected that arises, through saving and preparing you can plan in advance, and use time to your advantage, or work your way to where you want to go, or be prepared for whatever comes your way.
It’s often very difficult to manage and navigate situations at the time they arise, without the resources you may need, or the resources you would like, which is the reason why saving and preparing can be helpful. By putting money aside or keeping a certain amount of funds or reserve on hand, you can be better prepared to manage whatever life throws at you, and to navigate any murky waters you might encounter. Continuing to put money away, whether it’s slowly, or quickly, can help you be prepared and navigate any unforeseen or unexpected life expenses that may come your way, or put you on a path to achieving or pursuing the type of lifestyle or goals you may have in mind. Continue Reading…
The BBC Storyworks site in Canada has launched a 6-part series written by me about Covid-19 and the impact on housing and the mortgage industry. The articles will appear weekly, starting this week. Later articles will look at mortgage options, the investing experience following Covid, optimum investment strategies going forward and close with retirement strategies in the age of Covid.
The first article went up on Thursday and covers how the Work-from-Home phenomenon has impacted where we all live and work. You can find the full piece by clicking on the highlighted headline here: Rethinking Home Base. The series is sponsored by TD Bank.
Working from home is now mainstream, whether temporarily for those still employed, or as a more enduring shift to home-based self-employment. Many technology companies now let employees work from home: some until 2021, some permanently.
“Covid-19 shaped the real estate market during the second quarter in every possible way,” says Phil Soper, president and CEO of Royal Lepage. Its latest housing survey showed home prices rising sharply, with supply struggling to keep up with a surge in demand: “As the reality of extended and potentially permanent work-from-home employment sunk in, people pondered both the location and size of their homes,” he said in a release on the survey, “Simply put, larger homes in smaller communities have become more fashionable.”
Many urban homeowners are selling their expensive city homes and swapping them for bigger places in the suburbs or cottage country. Not surprisingly, and as Reuters recently reported, there’s a severe glut of office space in New York City. Many REITs with heavy exposure to offices and malls have been hard hit.
Consumer spending patterns changing too
Covid has changed consumer spending patterns, with less eating out and reduced need for new clothes for the office. Meanwhile, cooped-up homeowners are landscaping back yards, and adding pools and decks. These home-based workers are upgrading computers and office equipment, upgrading smartphones, adding peripherals from Logitech or HP Inc., trekking to Home Depot to retrofit workspaces and ordering furniture online from RH or Wayfair. They stay in touch with customers through technologies like Zoom or Skype. They collaborate with remote co-workers through Slack or Microsoft Teams. They close deals with electronic signatures from firms like DocuSign, while medical professionals consult via telemedicine tools like Teladoc.
Cottage country booming
Cottage country is experiencing a massive sales boom. The story says veteran Collingwood realtor Karen Willison is swamped with business from urban refugees. Far from creating bargains, Covid has elevated home prices across the board, especially those with waterfront.
New retirees figure prominently: Pre-Covid some clients who thought they’d retire in two years are speeding up plans. We’ll look at this aspect more later in the series.
No one likes the sting of putting out money for building repairs, but if your initial investment could save you hundreds, maybe thousands of dollars, it’s well-worth the momentary pain. These same upgrades will also help you avoid costly damage that would end up making a bad situation even worse. If you’re the owner of a business or company, here are six commercial upgrades that could keep you in the green.
Get into hot water
Most people try to stay out of hot water, but the fact is that everyone needs it and it can get expensive if your heater isn’t efficient. When your hot water tank is old, rusty or leaking, don’t try to squeak by for another year. For example, if you live in California, contacting a water heater company in Granada Hills and changing out that old tank, or selecting a newer “tankless” system, will start saving you money right away. Once you’ve got a new tank in, always remember to keep the water temperature just hot enough and never on the highest setting, and you’ll see the difference in your bill.
Change out your bulbs
Changing out your company’s lighting is the easiest tip you probably never thought of. In a place of business, lights are in use all day, every day, so why not save every penny you can? Switching your regular incandescent bulbs to energy-saving LED bulbs will use 75% less energy. They also last 25 times longer than regular bulbs! In a building where the lights are on all day and possibly all night, switching to LEDs will save you significant money.
Weatherize the Building
Just like you save energy at home, you should do the same at your workplace and weatherization is just the ticket. For example, you know that drafty area everyone complains about? That’s hard-earned money going right out the window. Before you lose any more, now’s the time to seal up or replace those loose fitting windows and doors, making the building attractive as well as efficient. If your office gets extremely cold during chilly days, consider brand new insulation or adding to what you already have.
Take advantage of the Sun
More and more businesses are deciding to harness the energy of the sun to help with costs. Using solar power can greatly reduce your electric bill, but is most compatible with larger establishments that have the space to install an adequate size system. Continue Reading…
I did not want to book a ticket only to receive a voucher for a cancelled flight, so for weeks beforehand, I did my homework and had been tracking arrivals and departures from both Guadalajara, Mexico (GDL) and Phoenix Skyharbor Airport (PHX) in Arizona.
While other airlines were no longer flying this route, American Airlines had been dependable, with daily flights on time and arriving in one piece.
I made my reservations online and signed up for text alerts on my flight. The day of the departure, I had our driver take me to GDL International airport hours before departure in the event of any snafu’s. I knew things were going to be different, flying in the time of COVID, and I wasn’t sure what I would be meeting.
Arrival into bureaucracy
I registered at the desk and checked one bag. All went smoothly, until I found out I needed to fill out a “health form” before I entered the security x-ray area. No problem, just hand me one: oops, no paper form available, it’s all online. First, I must add this contact number to my WhatsApp, then fill out the form, and scan the bar code at the security entry like your boarding pass on your phone. I was good to go.
Except that my flight had no gate assigned yet, because it was delayed!
Oh no.
Glad I signed up for the alerts!
My flight continued to be delayed over the next 7 hours with my phone beeping every 20 minutes to let me know I wasn’t flying yet.
I tell myself: I just want to leave today! I don’t care if I have to snooze a few hours in PHX airport so my ride can come get me at a reasonable time the next day. I just wanna go.
Normally, my wait time in airports is filled with my catching up on emails, perhaps watching a video and then gliding onto the plane. Today, I was far too nervous to get interested in anything long term like an email … With the public announcement mentioning this flight leaving, that flight leaving, my phone beeping, my husband whatsapping me, my ride in AZ is whatsapping me, things were getting too crazy.
C’mon guys, give me some clue!
Hours into the delay, I figured I needed to speak to someone at the American Airline desk. Where the heck is THAT?!
Do you know how big airports are?
After literally walking thousands and thousands of steps (I have a step counter on my digital device) and realizing that I would have to go outside of security, then back in “somewhere”, wait in line, speak to an agent, fill out the health form again, go through security again, lose the $3 bottle of water I just purchased … I started to get frustrated.
Meanwhile, my phone continues to beep letting me know: that my flight had been delayed, yet again.
Should I reschedule myself for another flight another day? After speaking with agents at the desks by the gate where I had parked myself, they tell me “no, no, your flight is leaving today. It’s not canceled, just delayed.”
I wonder if I should just take a taxi back home and start over. I’m beginning to get a little confused as to what might be the best thing for me to do. Meanwhile I was hungry beyond nuts and raisins to tide me over.
All passengers for flight #5902, come to your gate
A young Hispanic bi-lingual girl sitting next to me also waiting for the same flight, suddenly jumps up and said “They want to talk to us.”
Digitally contacting my family in Arizona and Billy in Chapala, all of us were watching this unfolding scenario. I eventually received a meal voucher after 4 hours, which was very nice of the airline, and the right thing to do.
I use mine to get some grilled tilapia, mojo de ajo, and a mango lemonade. The dang phone keeps beeping – yeah yeah, I get it. My flight’s been delayed.
This goes on until I get my new update. My flight – isn’t cancelled – it’s delayed until tomorrow afternoon! What!?
Back to the gate desk to see what’s going on.
Sweet dreams
The man at the gate explains that my flight will leave tomorrow and for now, here’s another voucher for free transport to a hotel, prepaid night at the hotel, dinner and breakfast the next morning, then transport back to the airport.
So now I must get my checked luggage from the original check-in desk.
I’m still walking around (thousands more steps) until I can find an exit out. I speak to some young girls at a table, then a young man whom they call over who promises to help me obtain my luggage.
Getting to the American Airline counter, the guy who took me there says I don’t have to wait in line in a case such as this, just go to the front. Perfect.
Now what?
I speak to an agent who is very kind, explains to me more of what is going on (in English, thank God) and I take my luggage and myself to the shuttle meeting place. Lots of other passengers are there as well … and I wonder … where will they take me? As we crawl through Guadalajara commuter traffic, I’m curious as to if this hotel will be a cheapie? Will there be hot water? Oh gawd, I hope there aren’t cockroaches or other critters. The way this day has been going anything could happen.
I look around in the transport van, and I notice a well-dressed young family, several women with coifed hair and freshly done nails… No, they wouldn’t DARE put me up in a cheapie. These high-class women would rise up in rebellion!
You can clearly see Chapala, the Airport and the location of Fiesta Inn
Arriving at the Fiesta Hotel
Arriving at the hotel, people are friendly and with big smiles. I get signed in, get a credit-card type of entry key, sign a few forms, and the check-in clerk hands me a small box, which I’ll open when I get to my room. It’s now past 8:00 in the evening and I am ready to call it a day. I’m not slap-silly yet, but close.
Wandering around some more looking for elevators or stairs, I find myself directed to the elevator and I push floor #2. Nothing happens. I know I’m tired … so I press again, only this time, harder.
Soon the door opens and a young man and older woman enter. He scans his credit card entry key and presses floor #1. He instructs me to do the same. Oh jeeze. Country bumpkin discovered.
Cripes.
I get to my room, use the credit card entry key and now can’t seem to find the way to turn the lights on.
A completely gorgeous young woman who is a fellow passenger is outside my door and offers to help me to get anything I need. Mexicans are so well-trained by their mothers to be polite, helpful and considerate: to women and especially older women. That would be me.
I am very grateful.
My comfy hotel room
After I get inside my hotel room, I open my box. There is more hand sanitizer gel, wipes and another mask. With 9 masks on me and my own bottle of hand gel, I have gel and masks coming out the wazoo.
My room is huge, clean and has 2 queen size beds, shower amenities, a desk, and a huge digital wall TV. I fiddle with the air conditioner which is set on – 16 Celsius, roughly 61* F. It felt like you could hang meat in this room.
It takes me a few moments to realize that my digital weather station is telling me that soon, I’ll be sleeping in a freezer and I adjust it up to a comfortable 24 C.
Breakfast also came with a fruit plate, coffee and juice
Breakfast
With the voucher for another free dinner at the hotel I couldn’t fit two dinners into one evening since I just finished the one at the airport. Oink, oink.
I was so tired I couldn’t even make it down for the free glass of wine.
However, the comp’d breakfast the next morning was delicious also, with great service.
All of us passengers are shuttled back to the airport, and a big surprise awaits me.
No kidding, Billy finds me in the airport!
Billy – on his way to meet up with friends for the weekend – was flying to Puerto Vallarta, Mexico, and for curious reasons, his domestic departure gate is just one down from my international departure gate! Go figure.
So, my knight-in-shining-mask walks up to me as I’m waiting in the gate area. You can notice how happy I am to see him!
I finally did make it to PHX, albeit, a day late and a few Pesos short.
Returning to Mexico – smooth as silk
Shuttle shenanigans
Initially, back in Mexico when I was trying to make reservations for transport from the airport to my sister’s home, the local shuttle was not running. For a special driver, I would have had to pay $350USD+ for a round trip ticket, purchased in advance for the discount. This is about what I paid for my roundtrip flight, and I wasn’t keen on spending my money in this manner. Continue Reading…
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The four-day Canadian Financial Summit 2020 edition kicks off at 8 pm EST (5 pm PST) tonight (Oct. 14): an all-virtual event featuring 30 personal finance speakers and financial bloggers. You can get tickets and catch up here. Tickets are free via the website.
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