Month 0 (July 2017) : 126 months left
Here is the introductory Journey to financial independence post. This will include where I am at financially, and how I hope to progress with work and spending.My goals for this journey to financial independence are outlined and broken down more in depth here, but my overall goal is to establish a passive income of $2000 by the age of 30 (I am 19 now, so I have just over 10 years, or 125 months as of next week).
As an opening disclaimer, I am Canadian, and both live in Canada and am a resident of Canada. The tools I am researching and using may not exactly apply to everyone. I will do my best to figure out U.S. equivalents if I have time, but beyond that you may have to do some of your own research on comparable tools in your country.
Now I have an earlier post Why don’t we talk about money? that is what it sounds like. It investigates the lack of conversations about finance and wages and all things money, so in these posts I will be pretty transparent with amounts I make, invest, and the returns. Hopefully, as I am a pretty average guy starting with pretty minimal money, it will be believable that these goals can be achieved.
So here are a few key points of my upcoming year financially:
Previous savings I have are a combination of several summers working, some small scholarships, and a little funding from my sport. I have been able to use this to get through my first two years of University debt free and have some to carry over to this year. I have about $1100 of leftover savings dedicated to school.
Work. I am trying to work as much as I can this summer while leaving me time for training. I hope to also get some shifts during the school year, weekends or after class, to supplement what I have earned over the summer. I was lucky in obtaining the jobs I have this summer, they work at least somewhat well with my schedule, are busy (so time passes faster, at least to me, when I am busy), and they pay well. I work a block of three days per week as a gardener, which is around $15/hr. I started there just over minimum wage and have worked my way up to better wages over a few years. I also have two positions (dietary aide/housekeeping) at an extended care facility, at which I am casual/on call. So one week I may have four days of work, some weeks I have had none. This job pays a little more since there are a few more requirements, and the place of work is undesirable (residents with many types of disease, and many in the stages of dying). I earn around $19/hr there. Overall I can earn anywhere from $250 to $600 per week over the summer. I hope to average between $50 and $100 per week over the school year. That would be one to two shifts every two weeks, and would pay for over a semester of school.
School expenses that need to be paid (half around October, Half around February) and will total between $5’000 and $8’000 depending on the number of classes I take and the required books and online materials (uhg) and that is my priority. I will be writing a blog on the importance of debt reduction at some point, because this is one of the most important financial steps one can make – and one our generation has a problem with. I would like to graduate with NO debt. To me no debt and no investments is better than some debt and some investments, but I’ll get more into that later.
Life expenses are the thing I can control the most at this point. I have done several significant things to minimize my life expenses. I live at home and I don’t own a car. This is another topic for an in depth blog post, but these two things are likely saving me near $800 per month. i will have personal expenses that I try to minimize, shop for deals, etc. like clothes, food, and dates.
This is my financial situation, and each year I want to be doing better and better. Next week I begin with my financial freedom tools and month 1 of my journey. Hope to see you then.