Posted by Canadian Dream on September 21, 2009
I have to admit I’m not feeling this recession. I’m aware that over 450,000 people lost their jobs during the last year and that lots of people are having hard times, yet I’ve personally had almost no contact with it.
I know it’s partly where I live since Saskatchewan has had the lowest unemployment numbers for the last few reporting periods. We also haven’t hit negative inflation like most of the country. Most people’s spending is actually increasing rather than decreasing. In fact the only negative thing I’ve really hear about businesses is delaying projects instead of out right canceling. So my emotional understanding of this recession has been lacking.
My closest contact to an affect of this recession was meeting a fellow that moved his family to Regina to take a job after all the work dried up in Ontario. I asked him why he moved and he simply stated “There is no work out there. I tried and there is nothing. So it’s better to move before the EI runs out.”
That I understood and felt. I was somewhat in the reverse situation when I finished university. There was no work for a new engineer in Saskatchewan at the time. I took a cooking job to pay the bills until I could find something in my field. Then like thousands of other graduates over the years I moved to Alberta to take a job. Then in the last few years the trend reversed itself. I know of a few people that called it quits in Alberta and moved back to Saskatchewan. I imagine this trend increased in the last few years.
In all cases I have to remember a phrase “Today isn’t forever.” Regardless of how good or how bad things get you always have to remember that today isn’t forever and that things will change. That’s the only firm thing about the future: change.
I’m enjoying my life right now, but I know it can all fall apart. I also know when things do fall apart it isn’t going to last forever. Things do get better as well in time. So regardless of how bad your life and finaces get remember it will change. Hang in there and enjoy the good times when they come. Sometimes they can be brief.
Posted by Canadian Dream on September 18, 2009
Well after nine years of being married I can tell you all sorts of interesting things, but today I’m going to focus on one odd one. You see way back when I got married we got a tonne of gifts, so much so that we basically replaced most of the items in our kitchen at the time. We ended up with new glasses, plates, cutting boards and all sorts of items.
Now nine years later a number of those items are wearing out, like a few small chips in the first set of plates we got or a bit of wear in the coating of the one fry pan. Some have out right busted like the coffee thermos after literally pouring thousands of cups of coffee out of it. Yet with each item we are no longer just ‘replacing it’ blindly.
Instead we have started asking a series of questions:
- Did I like this?
- What did I use it for?
- Do I already own something that can do the job?
- Do I care if something is wearing out when it still works fine (ie: a chip in a plate)?
- What did I not like about this?
- Could I get something else that will do the job better or that will last longer next time?
These questions are very useful to find out I’m not replacing some items. For example, we decided not to replace a few of our plates with chips. Why? I have small kids I don’t want them wrecking a new set and we already own a second ‘good’ set we use for company. So as long as we don’t care it’s not a problem to keep using them.
On the other hand we have changed out some things to ensure the next set last longer. For example we had a set of plastic measuring cups that were losing their markings. I replaced them with a stainless steel set which should last longer than I will and gave the old ones to the boys as a bath toy. Another example, we replaced one fry pan with a non-stick coating with stainless steel and a copper bottom. I can say I’m never going back to non-stick coatings again even if the new fry pan costs a lot more upfront. I suspect I can now use my stainless steel one into my old age.
Basically we have now become thoughtful consumers. I don’t just blindly buy another one of what ever when it wears out or breaks. I think about the item in question and yes sometimes we do replace it, other times we keep it still, other times I upgrade to avoid replacing it again in the future. A little thought can often make your life easier with less stuff and getting good quality items that will last a very long time. It might cost more in the short haul, but after the decades roll past you will likely find yourself ahead financially as well.
Posted by Canadian Dream on September 17, 2009
The most famous crossover point has to be the one discussed in the book Your Money or Your Life. It’s basically the point at which your investments are producing more cash than your spending or the month you truly become financially independent.
Unfortunately that is typically a long way off, so having some other cross over points in the mean time can help with that every problematic motivation to keep going. So what are some other possible cross over points to help you celebrate along the way? Here’s a couple that I thought of:
- Positive Net Worth – Let’s face it, if you started from a massive point of debt in your life just getting to around even between debt and assets can be a huge feeling of getting somewhere. I personally don’t recall when I hit this point because I wasn’t tracking it back then, but if you are focused on debt repayment this one can help.
- Consumer Debt Free – Paying off all other debts than your mortgage can also be a huge feeling of accomplishment. I know when I finished paying off my last student loan payment I was extremely happy. My wife had a similar feeling when we paid hers off and we became consumer debt free as a couple.
- More Investments Than Debt – I’m looking forward to having a portfolio that is bigger than my mortgage. If things go remotely according to plan I should hopefully see this other cross over in about a year from now. I’m currently about $50,000 short of this other crossover.
In reality any time a line crosses another line (or even an axis) can be another crossover point. So if you track your progress at all on a graph you can pick all sorts of other crossover points to help keep your motivation going. What other crossover points have you celebrated getting towards? Or if you have an idea for another one please share with a comment.
