Posted by Canadian Dream on December 15, 2011
I have often discussed the concept of retirement planning on this blog, so you actually have an idea of what you are going to do with your time once you retire. Yet the fact is that same planning process can be used right now to start change in your life.
In both cases, the fundamental problem is that of choice. You can literally have anything you want in life if you plan for it. It might end up costing you some of your other dreams or ambitions to do it, but in the end just about anything is possible.
I’m facing that exact problem right now. What do I want to do next year? Should I quit my work at the school board at the end of my term and write a novel instead? Or do I try for a second term to finish some projects I’ve started at the board and accept less time for writing for the next four years? In either case, there really isn’t a right answer, but rather which option do I want to do more.
In either case I need to establish some sub-goals to help support the major ones and then setup some timelines on actually getting the job done. In the novel example, I have to decide approximate length, plot, charters and do research. Then the actual writing and editing of the book and then shopping it around to a publisher. All of this takes time and I have found without a firm plan my general deadlines can slip by months fairly easily.
Thus to support that goal I would set a prep time for the initial stages and then a set word count to complete each day during the writing period. Otherwise, a goal without a plan is really just a dream. Dreams are good, but often don’t see the light of reality because we don’t take the time to plan for them.
This can apply to anything: if you want a new job in a different field, you might need some addition education. Or if you want to move to a different country, you need to do some research on the requirements to either own property or work there. Yes, it does take time and effort, but in the end you have to decide how badly you want something and then go for it.
What do you want most in life right now? More time to do what you love now, or perhaps get to early retirement sooner instead?
Posted by Canadian Dream on December 14, 2011
Well it’s been a good year so far and now that I’m on vacation I’m actually starting to get caught up on my backlog of things to do around the blog. One of those items was a final report on my 2011 goals.
For your memory the goals were fairly damn straightforward:
Goal #2 was the publish my book, Free at 45. This was completed back in March of this year. Sales were relatively modest, but I didn’t go broke doing it, which was the main idea.
Goal #1 was to pay off $39,000 of my mortgage. While it isn’t the official year end yet, I can project that the final mortgage balance will be about $43,000. That means I would have paid off $40,500 over the year. Yep, I exceeded my goal by $1500!
This now sets me up nicely to go after my 2012 goal of paying off the mortgage completely. So that will be a bit of stretch for us given what we paid off in 2011, but as the balance keeps dropping so does the interest portion of our payments which should assist us in bridging that gap.
So how have you done on your goals for 2011? Pass, fail, or did you have to switch them along the way?
Posted by Dave on December 13, 2011
This is a guest post by Dave, who is also looking to retire no later than 45, but unlike Tim has no kids and doesn’t want any. Dave is from Ontario and is working towards his CGA certification.
One thing that has saved me a lot of money over the past few years is slowing down my addiction on the newest “thing”. I haven’t stopped wanting the new iPhone 4s, or an iPad (or a myriad of other exciting new toys) I have just stopped buying as many. My television is a 75 pound monstrosity that I bought about 8 years ago. There are significantly nicer (and better) televisions out there, but mine works fine and I don’t really watch it enough to warrant the purchase of a new one. The same thing goes for my cell phone – I would really like a new iPhone, but for what I use my cell phone for – texting, checking Facebook, Twitter, and e-mail at work, my 2-year old Palm Pre works fine.
The problem when you start buying new gadgets is when do you stop? Do you (for example) upgrade your cell phone every 6 months to a year when a newer or better model comes out? Do you continuously upgrade your computer in order to keep up with the best graphics out there to play games?
Sometimes, I’ll give in and upgrade some of my “toys” I sold my ipod touch (second generation) and bought a used 4th generation ipod from kijiji, the difference being around $100. I tend to “allow” myself to upgrade if I will get enough use from the new gadget. I listen to my iPod anywhere between 8 and 12 hours a day, so the $100 seemed to make sense at the time. Most times though, I seem to want the newest toy just to have it and will not get enough use out of it to make the cost worthwhile.
I think the bottom line for me is to be satisfied with what I have – I make sure that when I make a purchase, or in the case of a cell phone sign a contract I acknowledge at the time that this purchase is for the long-term and I need to be able to use the item for a set period of time. Where I (and most people) get in trouble is when you look at your toy and look at someone else’s and you go back to your 7-year old jealous self who wants the newest stuff. The problem with being an adult is that you can usually afford the newest toy, or sign a 3-year contract costing you a measly $55 + tax for 3 years (over $2,000 for a term) and you can have that toy.
What’s your policy for buying new toys for yourself? Do you just not buy them, or how do you fit them into your budget? Admittedly, this whole conversation is completely a “first world problem” – I’m sure there are many people in the world and North America that don’t even think about cell phones, tablets and other things that really have no use other than entertainment. These toys and the decision whether or not to buy them is a constant battle as it is an addiction to shiny gadgets, which I think I share with most people.
