One Million and Beyond

2011 – The Year of Recovery

January 9th, 2011

Over the past few years I’ve started the year off with a look back at what happened in the past year and again I looked forward to what the new year held. I typically set out some goals which I have had some, but not great, success with. This year I think the format will be similar but when it comes to the goals I will separate them out and deal with them one (possibly two) at a time. I find that attempting to do too much at once just slows the process down for everything.

Another thing I’ve done in the past is given the upcoming year a theme or a title. Last year it was the Year of Less and for me this year is going to be the Year of Recovery. There are a few areas of my life that while they are not bad or broken they are also not in as good shape as I would like.So 2011 will be the year where these areas of my life recover (as much as they can).

At a high level this Year of Recovery for me will fall into a few areas that I’ll be working on and they are:

• Physical
• Mental
• Social
• Financial

Physical
This one is pretty easy – I smoke and I’m not in the best physical shape. Thankfully I’m also not completely out of shape and struggling. This is one of those areas that falls into the not horrible but not nearly as good as they could be. The really big one here will be to drop the smoking; its something I’ve been mentally gearing towards for a while now and this year will be the year this happens. From the health and wellness I’d like to get more exercise on a regular basis and eat better but quitting smoking is first and most important.

Mental
I think I need to take more time for myself and get some downtime to start with. My job is mentally challenging and I quite like that but at the same time its also very demanding so turning the work off in the evening (mentally) can be tough. I’m not exactly sure what I’ll do about this just yet but I definitely want get some recovery from the day to day in there. Now it might sound like a contradiction but I also want to stretch myself but not in any of the ways that I’m already doing. I want to learn something new. Essentially I want to bring in some of the concepts of Lifestyle Design that people like Tim Ferriss subscribe to.

Social
One of the drawbacks to working long hours and having a little one is that you very often don’t get a chance to see your friends as much as you’d like. At least this is the case of me – I have lots of friends but we’ve all become so busy that we simply don’t get to see each other. This is something that has hung heavily on my shoulders for a while because I really do enjoy seeing my friends and this year my social life will definitely undergo some recovery.

Financial
For me this is one of the more important areas of my life that needs to under go some recovery; and again it’s not an area that is hurting but it is definitely an area that could be a lot better. I write a personal finance blog so it seems a bit counter intuitive that my finances are not in perfect order – part of this is learning and understanding where the issues are and finding out what options are available (sometimes too many options becomes the problem). My wife and I are both in agreement on this one and 2011 will not be a year of wasted money on things we do not need or care about. We are already working on this and I am going to start my more specific goals with this area of my life.

I haven’t covered areas of my life that I’m happy with just ones where I’d like to focus on and improve. I definitely want this year to be a great one and I will share my successes and failures on this site, though I’ll probably focus on my financial ones (it is a Personal Finance blog after all). I wish everyone all the best in 2011!

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2010 A Year in Review

January 6th, 2011

When I started off 2010 I had a series of things I wanted to accomplish in mind unfortunately my Year of Less was not really as effective as I would have liked it to be. But that does not mean that it was a bad year nor does it mean that it was not a year of less in its own right. From the spirit of the title it really was a year of ‘less’ for me because I really adopted the mantra of less in many aspects of my life.

My Highlights for 2010

• I got a new job
• I kept my finances in order
• My family was healthy and my daughter turned 2
• I was happy

Now as with all year end reviews I have done a bit of soul searching prior to writing the post (we’ll ignore the delay due to the site compromise). The reality is that I didn’t get through most of the items on my goal list and while I could come up with any number of valid excuses they’re nothing more than excuses. The big learning for me is I can see evidence of goal setting with no real follow up is kind of pointless (I’m not sure how frequent the reviews should be but they definitely need to be more than annual).

I am still smoking and drinking but before I’m chastised for this (feel free I know these are stupid) I have definitely become much more aware of both of these and while I didn’t accomplish the goal for these I have given both a great deal of thought and I’m no longer as interested nor as active in either. I know what you’re thinking: he’s writing right after New Years when the resolutions are still holding but I think I’ve grown up a bit and I just don’t care for either as much. The smoking much more so and the frequency of this is going down on its own.

My finances are not in disorder and are in better shape than they were at the beginning of the year – not perfect but definitely not a complete failure either. I think the biggest gap here was the fact that I wasn’t as diligent about tracking and staying on top of this.

I did not find my passion but I have learned a lot about myself this year. I think finding a passion is a challenging thing and I definitely think I am closer to this goal now than I was at the beginning of the year. Again I think the biggest gap here was that this stayed in the back of my mind and I really didn’t explore as much as I could have. This is more of a lost opportunity than anything else.

Overall it was a Year of Less especially on the materialistic front, I just don’t need or want as much crap as I used to; I just see more and more of this as junk. The house has been quietly purged a few times during the year and now I try to remove at least as many items as come in. Not perfect but I am a lot happier about the place and what is in it. I am no longer attached to items simply because I own them.

As a year 2010 was a good year for me, I watched my little girl grow and start to be able to communicate with me. This is the highlight of the year for me because she has become my world and I’m happy that she’s in it. I’m healthy, I’m happy and while everything isn’t perfect it was a pretty decent year. Could I have accomplished more and taken more opportunities? Of course I could have! I am content with the choices I made this year and definitely learned a lot and see a lot of potential in the future.

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Site Compromised – An exercise in Frustration

January 4th, 2011

Normally I like to start the year off with a quick assessment of the previous year and then again with some goals for the new year. I have thought through both but when I came to my site to start entering the information it seems the site has been deemed a malware risk by Google. They pointed out a small issue on the site which I’ve fixed and it’s liked to some other sites on the same hosting company I am with.

This is very frustrating because I don’t get a chance to work on this site very often and when it is monopolized by someone spreading malware it is that much more frustrating and in some ways like a violation.

To my readers – this site does not have any malware; I’ve checked and rechecked. I am now just waiting for Google to re-review the site and hopefully remove it from their blacklists. Thank you for the patience and sorry for the inconvenience.

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The Crap in our Lives

December 7th, 2010

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Finances and your Emotions

December 6th, 2010

When you stop and think about your finances what do you feel? Do you feel dread at the impending due dates or are you excited by the fact that you’re saving for your future and how much you’ve accomplished? My guess is that you’re somewhere in between or you go between the two. Personally I am glad I am no longer frustrated by the due dates on my bills but I’m neither excited by saving for my future. I have managed to claw my way out of fear but unfortunately not to a point where I can see substantial steady progress (yet).Something I do feel is anger and frustration with myself for letting things happen the way they did. Again I’m sure that I’m not the only one in this situation. The best thing to do when you feel like this is to stop and learn from this emotion; if you’re angry and frustrated then your emotions are telling you that you should have known better. Listen and learn.

I am trying to do this but some lessons are very hard in life; especially when money and emotions are involved.

Over the years in my attempts to tackle my finances I have learnt a few things and one of the key lessons is to separate your emotions from money. Investing with your gut can be almost as bad as impulse shopping: only disaster can result. If you’re about to make a financial decision, especially a significant one and you have some reservations take a small step back and think about it maybe even sleep on it.

Never underestimate the power your emotions will have over you when it comes to money. Some people get scared when they invest and they play it too save others only think of the fun times and just dive into a new purchase not thinking about the long term effects. Stop and if you have any doubts or misgivings sleep on it.

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4 Ways to Save on Gifts this Christmas

December 5th, 2010

Christmas is the time of year when we exchange gifts with our friends and loved ones but its also the time of year that makes our wallets and bank accounts cringe at the costs. Inevitably we overspend and in the end we’ll put it on our credit cards and pay for the holidays for a years to come. A big purchase on a credit card is like a gift that keeps on giving, unfortunately it gives us stress and credit card companies record profits. So I thought I would share a short list of ways to save on Christmas gifts, this is a list that I’ve used myself in the past so I know they work;

Posted in Saving Ideas | 2 Comments

Overspending and Oblivious!

November 25th, 2010

My cashflow right now is in pretty good shape and by that I mean that I am not spending more than I am bringing in. This will fluctuate a bit from month to month depending on unplanned expenses but in general I have been able to save money over the year. So does this mean that my finances and my expenses are in check? Hell no!

In order to make sure that I’m on top of this I take a few months out of the year where I am extremely diligent about tracking my spending down to the last penny. I try to keep this going all the time but I’m not always able to keep tabs on everything so I make a particular effort a few times a year.

October was a month for tracking all of my spending and the results shocked me!

I have never hidden the fact that I am a smoker (yes I know its stupid and very bad for me) and the fact that I like my beer and wine. I don’t drink excessively but I do like to have a couple of beers after work or some wine with dinner and I just don’t think anything of it because I’m not drinking to get drunk or as an escape mechanism. I got a bit of a wake up call when reviewed my spending in October. Between the Beer and Smokes I was spending literally hundreds more than I thought per month (to keep this in context both are expensive where I live).

I am not strapped for cash and I like to enjoy my life, the experiences in life are important to me, but I am also looking to get my financial house in order so seeing these results was surprising. The net result is that at the least the beers are being cut down – unlike smoking it’s far easier to cut down without getting jittery and cranky in a pretty major way. The smoking will be tackled pretty soon.

Aside from the most obvious problems I noticed a few more when I looked at that spending. Between snacks and lunch at the office I was spending about $250 a month! The worst part about this is this is mostly for nourishment; there was no enjoyment or experience tied to it. This was pure laziness. So I’ve already started taking lunch with me on most days and the snacks have simply been cut out.

I’d like to think of myself as a pretty smart guy but when I see things like this it makes me feel really dumb for not being careful about how I spend my money. And this is exactly why I make sure to check take a look at my spending in detail every so often because it’s easy to get lazy with things.

When there are no obvious problems its easy to become oblivious to the hidden ones!

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Everyday Home Problems That Could Be Costing You Money

November 20th, 2010

Your home should be a haven, one that welcomes you with warmth and good company. But how would you feel about your home if you knew that it was also draining your bank account with every second that you are there, and even when you are not there? Unfortunately, many homeowners and apartment dwellers experience exactly that in the form of common issues that can drive up monthly water, heating, and electricity bills. However, with a few easy replacements or adjustments, you can fix the everyday home problems that could be costing you money.

One of the most common things adding onto your energy bill each month is “phantom electricity.” This peculiar term refers to the extra power that many appliances draw even when they are switched off. This means that even though you may not be using your computer or television, if it is still plugged in, it will continue to draw energy. Though each individual appliance’s phantom electricity use is small and seemingly insignificant, when you consider all of the appliances that remain plugged in even when not in use, the figures begin to add up and can actually tack on a noticeable amount to your monthly electricity bill, according to Planet Green, a website run by the Discovery Company. In fact, all of the annual energy wasted through phantom electricity could power your home for an entire month. The best way to combat phantom electricity is to either unplug electronics when they are not in use this includes kitchen appliances like toasters or to connect everything to power strips so that you can switch the strip itself to “off” when you are done in order to completely cut power to the appliances.

Something else that homeowners and apartment dwellers do not typically pay attention to is their windows. Windows are great accents for a home, but they can also be pricey money drainers. Often, windows are improperly sealed due to aging or may even be siphoning money because you never got around to buying the right window treatments for them. Your heating and cooling expenditures could literally be flying right out of your windows if you do not make some adjustments. Improperly sealed windows allow for your precious air conditioning to sneak out and for hot air to come streaming in, driving up your cooling costs. The same goes for heating, when your warm air escapes through cracks in the window’s sides and the cold air you were trying to shut out comes in instead. A good way to fix this is to either install new storm windows or to use caulk to fill in the areas where there are gaps. Drapery is important as well, as the big glass surfaces on windows are also prone to sapping energy out of your home. Use an opaque curtain made out of an adequately heavy material to keep your home cool in the summer and warm in the winter.

Finally, maintenance of electricity heavy-hitters is essential to keeping your monthly energy bills low. The two machines that consume the most energy in the average home are the air conditioner and the dryer. By simply performing some basic maintenance procedures, you can make sure that these machines are working efficiently and not just tacking more unnecessary costs onto your bills. With the air conditioner, ensure that the filter remains clean. A dirty air conditioner filter will have to work harder to cool your home because dirt blocks the air intake and some dust particles may even damage the intricate parts inside the unit. Replacing a dirty filter will lower your air conditioner’s energy consumption by up to 15%, according to the U.S. Department of Energy. Keeping your dryer’s lint trap clean follows the same principle. The lint trap can prevent the warm air inside the dryer from moving freely, thereby preventing it from working as efficiently as it could if the lint trap were unobstructed during each dry cycle. You could end up having to crank up the temperature or dry your clothes longer than usual if the lint trap is dirty. To fix this, you only need to clean out the lint trap before each dryer use. You will keep the dryer performing at maximum efficiency and also reduce the need for longer, energy-draining drying times.

Luckily, when it comes to reducing the costs of living at home, you only need to make a few adjustments. This way, you can spend your money on making your home even cozier rather than spending it on ever-increasing energy and heating bills.

By-line:

This guest post is contributed by Roger Elmore, who writes on the topics of hospitality management schools.

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Experiences are worth more than Stuff

October 18th, 2010

Whenever I meet someone who has done a lot of interesting things I am fascinated and I want to hear more about and their experiences; I admire these people. These people have stories that they can share and will always be relevant and interesting. Unfortunately the same can’t be said about all the stuff that we acquire; yes its cool but it doesn’t last very long. Right now iPads are all the rage and people I know are snapping them up and very excited about them; I’ve even heard stories about people going to the US just to buy them  (they didn’t come out in Canada at the same time as in the US). In 5 years do you think that all these people that went and got their stuff will still be using it? Do you think they’ll care that they had this short lived affaire with a toy?

Now to put this into context imagine skydiving out of a plane at 3,000 feet or learning to sail. The  emotions that come with these activities are very real and you will always remember them deeply. The scary thing is that experiences like these of these are probably about the same in cost if not less than that little gadget. Five years after doing either one of these things do you think these people will remember them? Of course they will even if these experiences were terrifying or something they didn’t enjoy. Why? Because they did something and experienced it.

When I was younger I was fascinated by stuff and I got a great deal of items and gadgets just because that’s where my whims were taking me. Unfortunately I don’t remember these very much anymore and quite frankly all the money that I spent on them is totally lost. To really illustrate this around the year 2000 I really wanted a laptop and bought one for $1,800 on a payment plan – at the same time I took a trip to the Dominican Republic with some friends and took windsurfing lessons trips. I paid for both of these with credit (I know not the best idea) but in the end while I used the laptop I don’t recall specific moments of joy or wonder as I do from that trip – the moment where I was able to pull the sail on the windsurfer up and actually start moving forward in the ocean I don’t think I will ever forget. The laptop unfortunately I will remember for a different reason (and it’s the only reason I’ll continue to remember this item); and that reason is I kept the stupid thing for almost 10 years because of how much I paid for it and the extreme difficulty I had in parting with something that was outdated and never used.

The ironic thing is the reason I will remember that laptop is because of another experience, reading Leo Barbuta’s The Power of Less The Power of Less and starting to purge unwanted and unneeded things in my life. A simple excursion or activity is more valuable to me than any gadget and the gadgets in my life now are meant to help me experience life because when my grandkids ask me about my life I want to be able to say what I did not what I owned.

Posted in Commentary | 6 Comments

Budgets are sexy!

October 11th, 2010

The idea behind a budget is incredibly sound – you plan out where your money is going and you make sure to set money aside for savings. Pretty simple right?  It gives you a clear sense of where your finances are and what you have to spend; for example if you needed to pay your water bill this month then you wouldn’t run out and buy an iPad if you didn’t have extra money. The budgeting process is pretty straightforward you match all your expenses against your incomes – in essence it really is that simple but the reality is that people are scared of the idea, they are happy to live in ignorance while spending themselves into debt. With budgeting you gain some measure of control even if you have to take best guesses when it comes to some items because they’re a bit variable (say groceries).

After a month or two you can start to see where your money is really going and how to start making positive changes in your budget and your lifestyle. Unfortunately you have to keep very close tabs on your spending to really make sure that you know where your money is going. Personally when I’m evaluating my budget or trying to get a clear understanding of where my money is going I use a budget but I match that up with a detailed accounting of all my spending and I really do mean all of it (down to the pack of gum and can of soda). After about a month or two you start to see a picture forming of where you spend your money versus where you think you spend it (your budget). You need to make sure that your actual spending isn’t causing problems in your budget. One of the biggest shocks I’ve gotten as a result of this site cam from this exercise. I found out just how much money I was spending and where my money was going and it floored me. I think a great many people would be surprised if they did this exercise.

Overall budgeting isn’t too hard but you do have to keep it up for it to be really useful. If you budget for a month or two then stop then there’s really no point to it. By having a budget and tracking where your money is going you can see the gaps and adjust either your budget or your spending.

The biggest problems I have with budgets is that the budget portion by itself is pretty straightforward, it’s the expense tracking that can be time consuming and lets be honest tedious and boring. After a month or two I tend to stop being as meticulous about my expense tracking – the good thing here is that by this point I’ll already have an understanding of where I’m really spending my money and I’ve made a few corrections. While my approach isn’t perfect a couple quick resets a year and I’m able to keep myself mostly on track. If you’re extremely meticulous and diligent in keeping this going then it can make a huge difference over a year.

Another thing I’ve started to use is Google docs for tracking my expenses – its got pretty much the same power as excel or quicken but you can access it from pretty much anywhere in the world where you’ve got an internet connection. This has made the tedious aspect of tracking my daily spending a bit easier.

If you are brutally honest with tracking your spending you’ll see that there are many holes there, even the daily cup of coffee can add up to a lot of money which you could use to pay down your debt or start a savings account. By budgeting you can start working towards your financial goals rather than simply letting the monthly bills and expenses drive your life (it can be very easy to fall into this trap)

I’ve been pretty good about tracking my budget and expenses over the past few months and I’ll share my  templates and give more details on my budgeting at the beginning of the month (I want to take another look at everything to make sure it all makes sense).

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