Comments on: Deep Snow and Thoughts http://blog.canadian-dream-free-at-45.com/2010/01/25/deep-snow-and-thoughts/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Canadian Dream http://blog.canadian-dream-free-at-45.com/2010/01/25/deep-snow-and-thoughts/comment-page-1/#comment-39190 Canadian Dream Tue, 26 Jan 2010 12:37:37 +0000 http://blog.canadian-dream-free-at-45.com/?p=1331#comment-39190 @jacqjolie, Thanks! You know I didn't figure we would join that club for years yet, but life is full of surprises. @deegee, Yes taxes do tend to increase as income goes up. I'll manage to shelter some with with the RRSP but that will only work for while until I'm out of contribution room. Everyone, Oh, update on snow. Snow day for the kid yesterday and today, but I did get to work in the afternoon after everyone on the street got together to help clear a path out to a main street. Tim @jacqjolie,

Thanks! You know I didn’t figure we would join that club for years yet, but life is full of surprises.

@deegee,

Yes taxes do tend to increase as income goes up. I’ll manage to shelter some with with the RRSP but that will only work for while until I’m out of contribution room.

Everyone,

Oh, update on snow. Snow day for the kid yesterday and today, but I did get to work in the afternoon after everyone on the street got together to help clear a path out to a main street.

Tim

]]> By: deegee http://blog.canadian-dream-free-at-45.com/2010/01/25/deep-snow-and-thoughts/comment-page-1/#comment-39176 deegee Tue, 26 Jan 2010 05:23:15 +0000 http://blog.canadian-dream-free-at-45.com/?p=1331#comment-39176 The only part of my budget which consistently grew as my income grew was the taxes, mainly income taxes, due to the progressive nature of the income tax relative to income. Otherwise, I did not spend more as my income grew, and it never was 6 figures (except for 2008 when I took a lump-sum payout and retired). If I exclude the years I bought a car (cash, never with a loan), my personal spending excluding taxes (income, Social Security, and property) and paying down debt rarely exceeded $20k. Meanwhile, my income was generally 2x to 3x that, sometimes a little less, sometimes a little more. All the while, if I needed to buy something such as a car, a new piece of furniture, a PC, or a big appliance, or take a plane trip out of town, I just went ahead and did it. It wasn't going to bust my budget or greatly interfere with my savings or my early retirement plan. And it didn't, as I was able to retire in 2008 at age 45. I am quite happy. The only part of my budget which consistently grew as my income grew was the taxes, mainly income taxes, due to the progressive nature of the income tax relative to income.

Otherwise, I did not spend more as my income grew, and it never was 6 figures (except for 2008 when I took a lump-sum payout and retired). If I exclude the years I bought a car (cash, never with a loan), my personal spending excluding taxes (income, Social Security, and property) and paying down debt rarely exceeded $20k. Meanwhile, my income was generally 2x to 3x that, sometimes a little less, sometimes a little more.

All the while, if I needed to buy something such as a car, a new piece of furniture, a PC, or a big appliance, or take a plane trip out of town, I just went ahead and did it. It wasn’t going to bust my budget or greatly interfere with my savings or my early retirement plan.

And it didn’t, as I was able to retire in 2008 at age 45. I am quite happy.

]]> By: Caitlin http://blog.canadian-dream-free-at-45.com/2010/01/25/deep-snow-and-thoughts/comment-page-1/#comment-39156 Caitlin Mon, 25 Jan 2010 16:32:41 +0000 http://blog.canadian-dream-free-at-45.com/?p=1331#comment-39156 This post is spot on! Knowing yourself, and how you think and feel, plays a huge roll in whether or not lifestyle inflation creeps up on your when you get a raise. Some things are worth spending money on, though these things will vary from person to person, and so will the things that are <i>not</i> worth spending money on. You don't need the same things that "everyone" else has in order to be happy if you know yourself well enough to give yourself the things you really need, a few things you really want, and avoid all the "extras". This post is spot on!
Knowing yourself, and how you think and feel, plays a huge roll in whether or not lifestyle inflation creeps up on your when you get a raise.
Some things are worth spending money on, though these things will vary from person to person, and so will the things that are not worth spending money on. You don’t need the same things that “everyone” else has in order to be happy if you know yourself well enough to give yourself the things you really need, a few things you really want, and avoid all the “extras”.

]]> By: Jon_Snow http://blog.canadian-dream-free-at-45.com/2010/01/25/deep-snow-and-thoughts/comment-page-1/#comment-39155 Jon_Snow Mon, 25 Jan 2010 16:05:04 +0000 http://blog.canadian-dream-free-at-45.com/?p=1331#comment-39155 My wife and I know we are very fortunate to have a combined household income well into the six figures. Unlike alot of couples, we don't use this as an opportunity to elevate our lifestyle - if anything, it has made us tighten our belts even more. Alot of people might view this as strange... indeed, more than a few friends and family are scratching their heads. This past summer, after our marriage, my wife and I came to the conclusion that working into our 60's was to be avoided at all costs. Further examination of our situation revealed that if we kept our year expenses to around $35000 we could probably retire sometime in our 40's. Once our mortgage is paid off in a couple of years, our yearly expenses will be less than $25000( in Vancouver no less! ). For us, watching our savings grow exponentially is far more rewarding than buying a new Lexus SUV, or moving into a 3000 sq ft. house. Sometimes, when we desire to buy material THINGS we don't need, we imagine ourselves retired at 45, sitting on the deck of our island cottage here on the west coast... it really works. :) My wife and I know we are very fortunate to have a combined household income well into the six figures. Unlike alot of couples, we don’t use this as an opportunity to elevate our lifestyle – if anything, it has made us tighten our belts even more. Alot of people might view this as strange… indeed, more than a few friends and family are scratching their heads. This past summer, after our marriage, my wife and I came to the conclusion that working into our 60′s was to be avoided at all costs. Further examination of our situation revealed that if we kept our year expenses to around $35000 we could probably retire sometime in our 40′s. Once our mortgage is paid off in a couple of years, our yearly expenses will be less than $25000( in Vancouver no less! ). For us, watching our savings grow exponentially is far more rewarding than buying a new Lexus SUV, or moving into a 3000 sq ft. house.

Sometimes, when we desire to buy material THINGS we don’t need, we imagine ourselves retired at 45, sitting on the deck of our island cottage here on the west coast… it really works. :)

]]> By: Robert http://blog.canadian-dream-free-at-45.com/2010/01/25/deep-snow-and-thoughts/comment-page-1/#comment-39154 Robert Mon, 25 Jan 2010 15:52:51 +0000 http://blog.canadian-dream-free-at-45.com/?p=1331#comment-39154 I'm impressed. You've pointed out the exact two ingredients I believe it takes to be rich: spending less than you earn and knowing how to be happy. Being rich is as much in your head as in your bank account. Although I don't earn six figures, I live on about the same as you. How can I be rich? Because I have everything I need, and still have money left over. I bet most of the executives you referred to aren't rich in that sense. I think jacqjolie has pointed out the secret to saving: as your income increases, don't change your spending habits. I'm guessing many people spend more because they think it will make them happy. If you can't be happy without money, you're unlikely to be happy with money. I’m impressed. You’ve pointed out the exact two ingredients I believe it takes to be rich: spending less than you earn and knowing how to be happy. Being rich is as much in your head as in your bank account. Although I don’t earn six figures, I live on about the same as you. How can I be rich? Because I have everything I need, and still have money left over. I bet most of the executives you referred to aren’t rich in that sense.

I think jacqjolie has pointed out the secret to saving: as your income increases, don’t change your spending habits. I’m guessing many people spend more because they think it will make them happy. If you can’t be happy without money, you’re unlikely to be happy with money.

]]> By: jacqjolie http://blog.canadian-dream-free-at-45.com/2010/01/25/deep-snow-and-thoughts/comment-page-1/#comment-39151 jacqjolie Mon, 25 Jan 2010 14:17:35 +0000 http://blog.canadian-dream-free-at-45.com/?p=1331#comment-39151 Oops - meant to say DON'T need it to make me happy! Oops – meant to say DON’T need it to make me happy!

]]> By: jacqjolie http://blog.canadian-dream-free-at-45.com/2010/01/25/deep-snow-and-thoughts/comment-page-1/#comment-39150 jacqjolie Mon, 25 Jan 2010 14:16:54 +0000 http://blog.canadian-dream-free-at-45.com/?p=1331#comment-39150 First of all - welcome to the 6 figure club! It makes saving gobs of $ much easier and if you know yourself and what makes you happy, it will mean a lifetime of not feeling deprived, or envious. Good for you for living WELL below your means! Both the living well part and the below your means. Every single person I know personally that makes over 6 figures (but me) has experienced a lifestyle inflation to go along with their increased income over the years. I think we don't give ourselves enough credit sometimes for this achievement. It's a great feeling to know - yes, I could have that - but I need it to make me happy. First of all – welcome to the 6 figure club! It makes saving gobs of $ much easier and if you know yourself and what makes you happy, it will mean a lifetime of not feeling deprived, or envious.

Good for you for living WELL below your means! Both the living well part and the below your means. Every single person I know personally that makes over 6 figures (but me) has experienced a lifestyle inflation to go along with their increased income over the years. I think we don’t give ourselves enough credit sometimes for this achievement. It’s a great feeling to know – yes, I could have that – but I need it to make me happy.

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