Not that anybody's asking, but I want to share some observations that I have made after basically 3 years of making my financial future my primary concern. In these 3 years (give or take), EVERY choice I have made has included a major consideration of the financial impacts.
First, the good: I am totally debt-free and have been so for at least 18 months. I have accrued almost no interest charges over this time. Occasionally, my bank will charge me a fee for a withdrawal or an extra transaction per month - when this happens, I call them and they invariably reverse the charges. SO I have paid virtually nothing to either of my banks for the past 2 years.
In addition, I have credit in the form of unsecured LOC's with both of my banks with credit available to me in a total amount of nearly 50% of my yearly GROSS income. Of course, they are both sitting at $0.
I have been able to invest more than 55% of my NET income for the past 6 months - in the year before that, it was always between 30% - 40% of NET income. My net worth (not counting pension) is around 1-years GROSS salary. I need this to be higher before i'll even consider changing my lifestyle.
Sounds good, right? But at what cost?
Well, my lifestyle had to take a dramatic hit. My housing costs are low for my city, but I live alone in a crappy basement apartment. I have never had anyone (other than my teen daughter) over. I never plan to have anyone over. No pets. Not even a real kitchen but I prepare food there every day.
I only use my car for work and for visits with my daughter. I avearge under $100/mnth for gas.
As for food, I carefully plan grocery trips and only buy items that are on promotion (PC Optimum points - Canada). My average spending on 'eating out' has been about $115/mnth. That's including coffee shops (which I used to love but have really reduced) and fast food/restaurants.
No new clothes in 3 years. I cut my own hair. I was using my local food bank until my most recent pay increase. I don't really see friends anymore and if I do I won't 'go out' - maybe visit at their place. Obv. no dating or any other 'romantic/sexual' entaglements.
The thing is, I'm used to it now and know i'll never be able to go back to not caring or at least not having an awareness of where I am financially.
We live in a society that tells us to live for the moment, to 'buy' happiness, to 'buy' friends, to 'buy' experiences. It's tempting and addictive.
In fact, the only way I finally made progress was to shut it all down entirely. Now, I don't look at 'doing without' as a sacrifice. I look at it as a badge of honor.
Good luck out there, people. I'm sure there is a more moderate path but it never worked for me.
February 06, 2021 at 07:03PM
