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Goal Financial Independance(Part 2)

Discussion in 'Money' started by Fundinn, Feb 27, 2018.

Goal: Elaborate a budget(weekly spending, funds, real estate, stock market). by March 20, 2018 (finished)

100%

Completed

Member Fundinn commits to the following actions to achieve this goal

- Schedule a meeting with my portfolio manager(he's also my financial planner).
- Build a financial snapshot of my weekly spendings/earnings(my bank has a platform for that).
- Look at properties in target neighborhood and project how much time I need to raise that cash(and how much). What I would need to do, what my situation will look like if I buy something.

  1. Fundinn

    Fundinn Active Member

    Rating points:
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    Action points:
    207
    Result points:
    304

    Goal Approval

    I'm gonna write a wall of text, I think it's going to help me clarify my next moves. Feel free to read the bold parts which are the gist of what I have been doing lately and skip the rest if you prefer.

    Background story
    Two weeks ago I got referred to a job in the health's sector. It looked promising, but they were slow on working out my application. I'm not the kind of guy that waits for stuff to happen, so I got interested in looking at the job market myself. I hadn't planned on looking at it while I worked on my own projects, but a conversation with a friend on the pro's and con's of working for someone versus myself made me rethink my position on this. I was getting more leads for contractual work, but the work differed greatly. I took some, but it was hard to make estimates when the technologies being used were obsolete or the frameworks did not match my area of expertise. I still managed to get out of my way for some of them, but I noticed that the time investment versus the payout was ordinary. I'm making between 20$ and 25$ an hour, but since some weeks were slow, that average goes down. Which is cool because I got time to work on my personal work. I did get called at random times for random reasons though.

    I know very well that if I keep at it I might be able to get a steady flow of contracts and iron-out the communication and estimation components of that kind of work, but I think that the rate at which I will get to cruising speed and getting the MVP up to speed conflicts with my desire to get out of the house and get closer to my other essential activities. It's not exactly a lifestyle that suits me right now.

    And so to get back to the job market, the time of the year is usually good for special job opportunities. There's no new graduates until May and re-location offers aren't attractive when it's -30C outside. People prefer relocating to BC for milder weather and better salaries.

    As I look at job offers one of them catches my interest. It's a company that sells hiking gear and other quality equipment that I have been a customer for a number of years. I proceed to look at the job offer and it's 100% in line with my experience. I felt like I was reading a reflexion of my resume. I figure that my enthusiasm for the companies services and my work go hand in hand so I upload my CV and forget about it.

    A couple of days later, I get called for an interview. Three interviews later, I get a job offer. Better conditions than I've ever had, +10% more income per year than the maximum I had asked for during the interview*. The company also works in an entrepreneurial matter in that it let's you take on anything in the matter you see fit. It's also having exponential growth so they told me that I would be in a good position to fill in any kind of position I would see myself in down the line. They're looking to double in size for next year. Which would mean that I would be a senior in a year once they hire the rest after me.

    In any case, it's a hiking company and I think they could sponsor me for another long-distance hike in the future and the people in the team look like fun genuine humans working normal hours.

    My mentor is a serial entrepreneur, and his opinion on the matter was simple. Yes he was successful, but he also told me he never really got a chance to hang out much with his son or his daughter. I figured I should think about my personal investment and what is my motivation to knock out a product that would allow me to work less and travel more**. He has status, of course. But he questions himself as well, if it really is that important to him.

    Then I asked my uncle who's also an entrepreneur and he said he said he would never go back to working for someone. "But" he said, "I did not go in cold turkey, I still have a side-gig that is guaranteed cash that gave me the financial support to never ask for money or live off of someone's couch for too long. I could work on my own projects for years if that's what it took knowing I wouldn't hit the bottom. It doesn't sound too bad to accept a decent position and re-situate yourself until you work on a product that grows organically and that you start connecting with other great minds."

    After getting other input, I figured that I'm okay with it and I'll accept the offer, there's something about it, everything connected: I crushed all four interviews, it's in an awesome neighborhood next to all of the hangouts and I would get to do long-distance hikes for the company in the future. It fits me very well.

    *I let them know I was not in a hurry and that I was looking elsewhere as well. I believe that it got them thinking that I'm not going to accept a low amount. Or, I under-valued myself haha.
    **I've traveled a lot stringing in multiple backpacking trips over the years and my sentiment on travel has changed over the years. I think that wherever I am these days, it's good. I like my hometown. Aside from adventure trips in remote areas, I'm not interested in hostels or visiting places as a casual tourist anymore.

    Knowing this. I want to make a budget for the coming months. Financial independence is also about diversification. I want to buy my own condo/house close to work, to minimize commuting and be closer to the boxing gym(Etc). I want to make it my base for several years. We have big music festivals in the summer that lend themselves well to AirBnb too.

    Knowing that, it's time to see what my finances would look like in the next few months. I know the goal duration is a minimum of three weeks, but I'm giving myself about 10 days to complete the actions listed. In any case, that's what I set out to do, feedback is, as always, welcome.
     
    James likes this.
  2. James

    James Host

    Always nice to have a minimal commute. I've experienced both hours of driving a day, and brief walks to work, and if I never have to get behind a wheel or on a bus again: sounds wonderful. Traffic really is a horrid thing.
     
  3. Gort

    Gort Robot

    Notification: Goal approved!

    The community voted to approve this goal as Doable and SMART.
    Now, do your best to succeed! Your next progress update will come due on Sun, 11 Mar 2018.
     
  4. Tom

    Tom Active Member

    Rating points:
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    Looking good man. I'll be setting up a similar goal after I graduate to get myself out living in some of the bigger cities of north England. I will be watchig closely.

    Off topic, but this is how I feel about travelling. Interesting to see my thoughts put so well by someone else.
     
  5. Shaney96

    Shaney96 Active Member

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    It sounds like you're aiming to:
    1. Move to working for this company, earning a decent salary doing something you enjoy.
    2. Carry on developing your MVP/other personal projects as you work.
    3. Once you gain enough passive income, fuck off and focus entirely on your own business/forms of passive income to develop these to become your sole forms of income

    Sound about right?

    It's great that you've accumulated experience travelling prior to shifting into a more '9-5' oriented job.

    Have you any future projection for where you see yourself? Is it a 'I'll take it as it comes' sort of thing, since you seem rather enthusiastic about this company and the conveniences/incentives it subsumes?
     
  6. Fundinn

    Fundinn Active Member

    Rating points:
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    Well, first lesson. Check the average income your profession garners online. Most regions/countries(example) record these numbers and make them public. It helps to know how much you should ask for(unlike me, who forgot to do it and got asked how much I expected to earn). It also gives a good argument if they follow-up with why you think you are asking for that amount.

    Flights are historically cheaper and more accessible than ever before. Going to Thailand in the 90's and doing so now, can't be compared. I listened to an interesting talk about the owner of Pok Pok, a Thai restaurant in Brooklyn and Portland. Andy Ricker, the owner says that spending three years in Thailand in the late 80's was nothing like it is today. Unless you send me to Mongolia or up north in Yukon/Alaska, I ain't going. Haha.

    It is the case. I obviously haven't started yet, but our conversations pointed to very interesting projects and a good work ethic.

    The case of the MVP I worked on in the first goal had multiple purposes. One of them, being a way to fill dead time in a productive matter while I look for better contracts or a good position(that doesn't underpay). I want the safety net of having fixed revenue. I think that I might have sold myself a bit much on the MVP as a way to motivate myself and get it done. There are two other amazing opportunities that I'm seeing right now where I have a lot of contacts that I would like to work on. I suspect they require at least four months of work though. I can't justify low income for that long. If I want it bad enough, I should put myself in a position where I can put some time in these even if I'm working(gotta be smart about it though).

    I don't think I'd ever want to completely cut myself off of a place I'd enjoy working at. I think that after some time I would like to renegotiate fewer working hours and better pay(lol). You are right on the money though. It's a question of making smart investments to make more room for other things, eventually. I think that people work too much. They don't need that spending power. I'll see as to situate myself in a way where I minimize the friction of working for someone: have zero commuting, set my accounts and my workflow to be as effective as possible, etc.

    Good question. I know what I want and it starts with stability and a house. So that's what I'm looking at right now.

    The vibe I got is akin to working for that companies who's products you've used for a decade. You know it's good shit and they do it well.

    Thanks for the feedback @Tom and @Shaney96.
     
  7. Fundinn

    Fundinn Active Member

    Rating points:
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    Don't know if the Robot was supposed to trigger an update request, but I'll do it now since I have time.

    Last week I looked at my monthly expenses. I had never taken a good hard look at what I spend my money on. I found it to be reasonable, but I am glad that now I know the numbers and that helps me better understand what it means in a year:

    - Boxing Club: 83$ / month, I will get a 6-month membership for a 10$ discount going forward.
    - Public Transport Pass: 82$ / month, expecting to stop paying in the summer and use my bicycle for an extra workout and then move to walking distance of work before winter.
    - 100$ on alcohol a month. The killer is the 9$ Pint at the bar, cause otherwise I buy in bulk. I'm OK with this though. It's not much considering I used to spend 60$ a night minimum at a venue.
    - 150$ on occasional purchases: coffee, going to the restaurant every now and then, amazon...

    It's pretty low. I used a mortgage calculator and the monthly payments + food would spike in my monthly spendings, but the goal is to put in a solid down-payment to pay as little interest to the bank. In three months of time, my current target is 75k on cash down. There's a cool thing called the <program of access to new home owners> that let's me withdraw 25k from a retirement fund and the government will double that where the other half is tax-free and interest free for 15 years. I talked to my financial planner, but with all the small changes to my portfolio I decided that I wanted to meet him physically. We've scheduled a meeting for the 20th this month.

    I also touched based with a friend of mine who is investment-savvy. I'd like his input on my situation. I used another calculator to see how much a bank would be willing to loan me to buy a property. For some reason the numbers weren't working out, so I'll need to clarify that with the planner.

    I learned about the different mortgage styles that exist in my region too. Turns out it's complicated enough that a job called a <mortgage broker> exists, to help you get the right one...Sheesh.

    Finally, I did my families taxes. I'm getting a really good return thanks to a performance bonus I earned last year working for another firm. Got that out of the way.

    Absolutely. I think our existing infrastructure was never designed to accommodate that everyone would own a car in the future. I was shocked when me and two backpackers rented a car and got stuck in a traffic jam on one of those 6-lane highways in LA.
     
    James likes this.
  8. Tom

    Tom Active Member

    Rating points:
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    Sounds solid man. 75k is got to be a decent lump sum? Sounds like your fiances are going well!
     
  9. James

    James Host

    Currently it targets the next Sunday after approval, unless it's too close, so should ask for the first update this Sunday (you can quote from this post then, or add more updates).
     
  10. Gort

    Gort Robot

    Notification: Goal update is due.

    Please submit an update on your goal progress.
     
  11. Fundinn

    Fundinn Active Member

    Rating points:
    44
    Action points:
    207
    Result points:
    304

    Goal Update

    I got to meet my finance-savvy friend on friday. Turns out I was wrong on my understanding of how I would get cash-back for purchasing my first propriety. It was a good move to ask for his input.

    Other than that, as the previous post had covered, here's the gist of it:
    • Went over my monthly spendings.
    • Educated myself on mortgages, owning a house versus an apartment studio, looked at the market prices in the area I want to buy
    • Talked to my financial planner, suggested we meet physically at his office on the 20th.
    • Used different calculators to see how much the bank would let me loan. Which raised other questions.
    • Met my friend for input.
    I'm starting the new job tomorrow, so I think that until the 20th, my main goal is to write down a list of questions so that I come prepared on the 20th. Everything else is a matter of saving money until July.

    Well, Canadian cities have had a dramatic property price increase in the past decade. Were talking about 500% increases in Vancouver, and now it's hitting Ontario with 250%. I suspect this trend will hit Montreal very soon. In a decade, prices have quadrupled. I don't see it slowing down, Montreal was the last one because it's the farthest from Asia, has the roughest winters and it's got a 50% french-speaking community.

    So to answer your question, 75k is amazing when you consider that most of the people living here are struggling to pay the interests on their CC's, but prices have gone up considerably.

    Thanks for clarifying James.
     

    Voting on this update has closed.

    Last edited: Mar 12, 2018
  12. Shaney96

    Shaney96 Active Member

    Rating points:
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    Good luck on the new job my man.
     
  13. Tom

    Tom Active Member

    Rating points:
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    Nothing more to say other than you're absolutely smashing this goal man!
     
  14. Gort

    Gort Robot

    Notification: The previous update has been rated.

    The score was: 5.00.

    No more progress updates will come due on this goal (but you can still post them).
    Your goal results will come due on Tue, 20 Mar 2018
     
  15. Gort

    Gort Robot

    Notification: Goal achievement results are due.

    Please submit a report on your achievement of this goal. The community will then rate your result. You can include any evidence that helps present your result.
     
  16. Fundinn

    Fundinn Active Member

    Rating points:
    44
    Action points:
    207
    Result points:
    304

    Result

    I met my financial planner. Everything is clear, I have a couple of tasks that came out of our reunion that I plan on getting done over the weekend. He also gave me a reference for a good mortgage broker which is good too.

    This goal wasn't exactly challenging, so I'll see to ramp it up on the next one, but it was necessary and useful to list down the various action items. In addition, I didn't procrastinate, or even think about being lazy on this topic so that's great.

    In about three months I'll be able to buy something of my own close to work; that's going to be interesting.
     
    Voting on this result has closed.
  17. Gort

    Gort Robot

    Notification: The result has been rated.

    Congratulations on following this goal to the end!

    The average goal result rating was: 4.25 (Grade: B — Achieved goal).

    Updates Report
    Total updates submitted: 1 of 2
    Average update rating: 3.00 (Medium action towards goal)


    Next Steps
    Well done for achieving the goal. But for the next one, consider a more challenging goal that needs stronger action.
     
  18. James

    James Host

    ^ Seems Gort still unreliable at counting. I'll see what's going on.
     
    Fundinn likes this.
  19. Fundinn

    Fundinn Active Member

    Rating points:
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    Action points:
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    Result points:
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    The challenge is over, but I kept on working towards a more stable situation. I am now using a budgeting tool offered by my bank to keep track of my spending:
    https://www.dropbox.com/s/lvswgpugah2jqtc/budget.png?dl=0

    I also met a mortgage broker, I have built up a document with the steps I will work on to purchase my first property. Currently waiting for my financial planner to tell me my transfers were completed so that I get the official date that I can make a withdrawal for a government insentive for first-time home buyers which is tax-deductible(the gist of it is that I will get 8k in tax return next year by using this).

    I may not be making 10k a day, but I am dept-free and on my way to having a place of my own.
    [​IMG]
     
    Tom, James and Kostadin like this.
  20. Tom

    Tom Active Member

    Rating points:
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    The shag pad is imminent ;P
     

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