Tag: money

Is FIRE even possible when inflation is so insane?

FIRE stands for Financial Independence, Retire Early. I first heard of the term several years ago and was very intrigued by it.

I started reading a bunch of finance books and also watched countless Youtube videos to see how I could implement it into my life.

After all, I don’t want to work until I am 65. I want to get to the point where working is something I choose to do, and not something I have to do.

However, with prices going up 3x in the past fifteen years in Toronto, it feels almost like an impossible dream.

The same meal that used to cost $7 now cost $16 (so around $20+ after tax and tips). But wages have not kept up at all. It is getting more and more unaffordable to eat out. Not to mention, the tipping culture here is insane (15-18% on average on top of 13% tax).

Experts suggest that you should take out 4% of your total portfolio and aim to have enough to survive for 30 years. So, if you have $1,000,000, then you would take out $40k, and basically take out money annually and gradually use it all up during your retirement.

However, that’s based on a 30-year retirement AND assuming your investment is beating the inflation. If inflation far exceeds 4%, then you’d need to take out more than 4% in order to have enough purchasing power to maintain your quality of life.

I can’t even imagine how someone would survive if they had retired in the 1970s when prices have gone up 10-15x since then (or probably more).

In all the books I’ve read, they say 1 million is a good number to aim for. But now, you can’t even buy a house for a million.

In fact, retiring with 3 million might not be enough with how things are going. Continue reading “Is FIRE even possible when inflation is so insane?”

What would it take for me to play Squid Game?

Spoilers ahead. Read at your own discretion.

I’ve been seeing memes and videos of people talking about Squid Game everywhere. When I found out it was only nine episodes, I decided to give it a try. Personally, this is not the type of show I’d watch. I’m afraid of violence, loud noises, blood, death, suicide, and basically everything remotely scary. But I was curious, and I wanted to see who would win the money in the end, and how they would ultimately become the winner.

In Squid Game, a man approaches desperate people and asks them to play a game with him. If they win, they would receive $100,000 won (the Korean currency). If they lose, they would have to pay him $100,000 won or be slapped. Those who played the game eventually won some money, and they were given a card in which they could sign up to participate if they were interested.

However, the players really had no idea what they were getting themselves into. When they entered the vehicle, they were knocked out by gas chemicals. By the time they woke up, they were dressed in a numbered outfit and had all their belongings taken away. In addition, all the people working there were dressed in these hot pink suits with either a triangle, square, or circle mask over their faces. Some of them carried guns in their hands. There was one man in a black mask that appeared to have the most power. Anyhow, it wasn’t until during the first game that the players realize that losing would mean death. They were all freaked out and were given a chance to leave if the majority voted to do so.

Despite being “freed”, most of them decided to return to continue the games when given another chance. They knew they were gambling their lives, but they still chose to do it for the prize.

I thought the series did a very good job in the episode where a few of the gangsters butted in line to get seconds, while those who lined up and followed the rules didn’t get any. It was so cruel, but it also made sense. There are limited resources. The weaker players would either die because they fail in the games, or they would be killed by the other players. The game actually encourages people to get rid of each other, since each death would result in more money to the pot.

To stay alive, the players had to stick or work together. But eventually, they also had to turn on each other. Humans are ultimately selfish. Even though the main character was a super good guy, he still took advantage of the old man’s memory when he was about to lose. He knew only one of them would live, and he would rather sacrifice his partner, regardless of their close bond. Continue reading “What would it take for me to play Squid Game?”

Nine ways to retire early and achieve financial freedom

Wouldn’t it be nice if you could quit your job and not have to worry about paying your bills?

Even if you enjoy what you do, I think it’s fair to say that having the option to quit whenever you want while maintaining the same standard of living would be awesome.

But how?

I have come up with a list of nine ways.

  1. Earn more

There are multiple ways you can earn more money. For instance:

  • Work more hours. If people usually work 40 hours a week, you could try working 60 instead. However, there are only 24 hours in a day. There will be a limit on how much you can trade your time for money.
  • Have a high income skill. To be worth more in the workforce, you need to become a person that is harder to replace. It would be in your best interest to develop skills that make you more valuable. Ex. If you’re the only person that can fix X, then you will be compensated more. But if you were selling popcorn, they can easily hire someone else to do your job. (No offense to those selling popcorn)
  • Side hustle. This could be a business, being a social media influencer, your own personal project, and etc. Basically, it’s something that earns you additional income from your current job.
  1. Lower your costs

You can lower your costs by:

  • Finding a roommate/significant other to split the cost. Having two incomes to pay for expenses make it easier.
  • Moving to somewhere cheaper. If you are able to work online, perhaps you can move to another country where the cost of living is lower and your currency is worth more.
  • Spend less. Buy fewer things, eat less, and go out less.
  1. Use patreon/onlyfans and sell your own merchandise

This is tough. There are A LOT of content creators. Even if people watch you or consume your content, it doesn’t mean they will give you money or buy your merch. In fact, based on my own personal experience, only one in a hundred would donate/give monetary support.

However, this is a very good way to scale. You’re no longer trading time for money. For example, perhaps you spend 2 hours creating content for a tier, but you can have unlimited subscribers for that tier. This means, there is no cap on how much you can earn. Regardless if 100 or 1000 people subscribe to it, you only spent 2 hours.

Note: It is EXTREMELY difficult to get loyal followers who would pay for content. There’s also no guarantee how long they will support you for. Continue reading “Nine ways to retire early and achieve financial freedom”

What is Success?

This week, I would like to talk about success. Please pause and take a moment to think about it. What does success mean to you?

In my opinion, in today’s society, we are too consumed by money. It seems like money is what we use to define someone who is “successful”. The more money you have, the more things you have, the more you are “winning” in life.

While I do believe money is important, I believe the process of attaining the money is important as well. What do I mean by that?

Well, are you satisfied with your job? What are you trading in order to get the money? Continue reading “What is Success?”

The Secret

Secret

Unless you were born into a wealthy family or you’ve won the lottery, chances are you’ll have to work to earn a living. However, as I mentioned in my previous blog post, working for others is honestly not the best way. Your company/boss decides what you are worth (hourly/salary). They will decide when you’ll get a raise. They will decide when you can go on vacation. Ultimately, they will probably end up deciding when you can purchase your first home.

So you may wonder, what else can I do? Life sucks. 😦

The answer is simple. Work for yourself.

Now, you’re probably thinking, “You got to be kidding me. You want me to start a business? Do you know how much risk that is? Do you know how much you have to invest just to start something? What am I going to sell? It doesn’t even guarantee I’ll succeed. You crazy woman. Why am I even reading your blog?”

Calm down. Keep reading.

The people you see making a lot of money without spending all their time? They have money coming in even when they are not working. That’s it. That’s the secret.

Continue reading “The Secret”