It’s worth keeping your money secrets, not a secret because we can all learn from each other.
You don’t have to be working at a job that pays you $100,000 a year to live a cozy retired life.
I often think about how all of our retirement savings may go to our son if we both die early.
Perhaps we are thinking too far ahead but are we really?
You can die anywhere, anytime.
My dad died when I was 17, after heart surgery, and Mrs. CBB lost her father young and is still shattered.
We’ve learned so much together about retirement and death that I’ve been writing to share with you.
Nonetheless, today I want to talk about money secrets we used to work towards retiring at 61.
Again, that’s if we make it that far, which is why we had a legal Will two weeks after her father’s death.
Then it’s your turn to tell me what your money secrets are in the comment section below.
Money Secrets Of A Defined Pension Plan Freedom 51
Two days ago, I spoke with a gentleman from our son’s school about him wanting to retire early.
When I asked him why he told me because he has been working at the same employer for 15 years.
I’m not going to lie, but he really did get into a posh job that comes with many perks.
I didn’t assume he has a defined benefit pension because I already knew he does.
A friend who works there says that you’ve won the golden ticket to retire early if you get hired.
Nosey asked him how old he was, and he said both he and his wife were 36 years old.
When I mentioned that we paid off our house, he was shocked, which leads me to believe he still has a mortgage.
Although I don’t know what the remainder of his mortgage is and whether he will have paid off when he retires early.
For employment, she works as a health care worker outside of a hospital setting but only part-time as she’s ill.
Of course, I acted shocked to get a reaction from him and boy did he perk up just thinking about retirement.
They have two school-age young children and a house that likely would sell for well over a million dollars with a small mortgage.
Money Secrets 101 – Don’t Move
Growing up in the ’70s, many of my friend’s parent’s stayed in the house they bought to save for their kids.
As soon as the mortgage is paid, they continue living a frugal life and stash money away.
When we went home in 2017, we took a trip down memory lane and visited our family home.
Although mum and dad sold it, there were lots of memories. Interestingly, was my brother-in-law told me that lots of my buddies have parents who still live in the village.
Yes, I know there is nowhere else to move except straight across the board with the real estate market in Ontario blowing up in a seller’s market.
Digging deeper into our conversation, I wanted to know if they had any money secrets to back up his early retirement.
Im my mind, I thought if he tells me it won’t be a secret for long as I’ll be sharing it.
Amazed, I felt as if I was talking about finance to myself as he taught me about his defined pension plan.
If I find someone who talks about money, retirement and budgets on their accord, fascinating.
I listen and let them talk while looking the person in the eyes, nodding my head every so often.
He’s looking for Freedom 51, and since I started later in my career, I can retire at 63 or keep working.
Money Secrets We Use To Save Money
Personally, I think there are many other money secrets behind wealth apart from the obvious.
Although not everything should be disclosed unless the person wants to share.
Personal finance is awesome to talk about, but we were raised never to mention numbers.
Two of the most important are to become debt-free before retirement, which we accomplished early.
The second is continuing to invest money in our retirement savings and our son’s non-registered account and life insurance policy.
- Work hard at what you do and save money for retirement even if you don’t have a defined pension plan. This type of plan is when the employer promises to pay you a regular income when you retire. All of the money is pooled together and invested and you have nothing more to do apart from contributing to it as will the employer. “The income you get when you retire is usually calculated based on your salary and the number of years you contributed to the plan. It’s a set amount that does not depend on how well the investments perform.” – Source
- Invest In available retirement savings, perhaps cut out the middle person and become your financial advisor. Keep in mind that you can only invest so much into an RRSP when you have certain pension plans such as a defined pension plan.
Earn Extra or Make More Money To Scrub Debt Away
- Build a second income stream that becomes passive income without cheating people out of money. (In otherwords be realistic and don’t sell crap to unsuspecting people) Do you know all of those budget printables and secrets how bloggers make millions of dollars a year. Ya, well don’t get stuck in their muddy puddle of B.S.
- Track Your Overtime Hours Or Potentially Risk Losing Money!
- Pay off consumer debt (credit cards, loans etc.)
- Start saving money from a young age. Both Mrs. CBB had jobs in grade 8 and here we are today.
- Skip buying a cottage, boat and other luxuries unless it works for your financial plan.
- Get rid of your mortgage once and for all and don’t buy a house way beyond your financial means. Make a plan and consider if one of you passes away, loses their job or a business fails where you both work. There’s lots to think about when it comes to money and why waiting until something happens is not a smart financial idea.
- Work overtime if it is offered to you. Although I didn’t have a child in the UK I didn’t miss overtime or holidays where I would make double my income sometimes triple. Missed opportunities for others lined my pocket.
- Save money by shopping the sales for clothing at the mall, Online buy and sell groups , boutique consigment shops or second-hand stores.
Don’t Leave Easy Money On The Table
- Use coupons and apps to get stuff free which we haven’t done for ages. Just this morning I had a look at the website Canadian Savings Group and I couldn’t believe that coupons are saving people money. Free stuff with coupons or reduced prices.
- Using rewards cards to earn money such as PC Optimum which is our favourite. Currently we have 6.2 million PC Points. That’s a whopping $6200 and we have spent some of it at Christmas on our son to buy him the new Xbox and some games. There are secrets to how we earn PC Optimum Points fast and we take advantage of the opportunities.
- Since Mrs. CBB stays home she finds deals for groceries and makes the meal planning for the week. We don’t spend excessive amounts on food since we don’t need to eat as much as we think we do. Most months she is fasting or extended fasting to cleanse her body and boost her immune system. She follows a keto lifestyle and I do too to an extent.
- She’s also big into online surveys such as Pinecone Research. “Pinecone Research is a trusted leader in voicing the opinions of consumers nationwide. Companies are seeking your input to develop new and improved products. By completing our online studies, your opinions will directly influence tomorrow’s products today, AND you will be rewarded!” A couple of other surveys are from Survey Junkie and Harris Poll. If you have a few minutes a day do these surveys. Making money and saving without stress is a cool way to earn. Find even more survey sites and Canadian Savings on my deals page.
Money Secrets Don’t Have To Be Huge
Honestly, our wealth secrets are pretty straightforward, although it took us a while to get the ball rolling.
Here’s the thing, friends, you have to start somewhere, and we started when I had no job in Canada.
Building an empire is different for everyone based on expectations and where they come from.
Money Secrets Add Up To Money Savings
Don’t look at your options as minimal savings because eventually, they WILL add up.
Now that we’ve shared some of our money secrets, could you tell me yours?
Oh, and the guy who wants to retire early in his 50’s, his money secrets are pretty much the same as what we do.
Let One Of Your Money Secrets Be Life Insurance
I’ve repeatedly heard that I don’t need insurance; my employer has it with the benefits.
How much? I would never rely on those types of insurance and are generally not the best.
Our new friend from above is making close to $200,000 a year with a defined pension plan, and his wife has an excellent paying job even it is part-time now because she’s ill.
It gets tricky because life insurance is important to consider before something happens.
Currently, Policy Me is has a fantastic offer for those of you with kids as their motto is Family First.
Couples save 5% off their monthly rates. Every policy includes Child Coverage at no extra cost.
It costs us around $500 a month for ten years, and our son will be covered for life.
That’s one of a few money secrets we have for him, especially if we die early or die late.
Dying early before you retire is another topic for another day but a serious talk not to forget.
If you have something to add to my upcoming post, message me, and I’ll share it anonymously.
Discussion: Leave me a comment below about your money secrets and retirement plan.
Below is our Net Worth Update For January 2022. Let’s have a look.
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Net Worth Increases And Decreases 2022
Understanding your net worth will help you determine if you are on track meeting or beating your personal financial goals.
$1,425,531.72 Net Worth January 2022
Should You Add Your Home Into Net Worth?
We bought our home for $265,000 in 2009 and have done one increase to $345,000 for our net worth.
I stopped there because I questioned whether it made sense to add it to our net worth.
Housing data, in my opinion, is irrelevant unless you are downsizing into cheaper accommodations.
Moving into an apartment, condo, or a cheaper home in a smaller city would accurately increase our net worth.
For example, our neighbour sold her home and bought a new trailer home in Grand Bend for $200,000.
Had she sold her big-city house for over one million dollars, she would have walked away with an extra $300,000–$400,000
She was a hoarder and sold the house for $700,000 where the company turned around immediately and sold it for $750k, so the house technically was never put in their name.
Very sly but smart business, I’m sure they aren’t complaining.
Often we look at the big picture and then remove the house, so we see more of an accurate number.
Eventually, one of the three of us will make money from our home either when we die, or the markets settle or move.
Determining Your Net Worth Is Easy
Do you know how to calculate your Net Worth?
Net Worth adds up your assets (what you own) and then removes your liabilities (what you owe), giving you a net worth number.
Net Worth is only an estimate, and not everyone uses the same type of figures to tally it up.
Net Worth = Assets – Liabilities
Calculate your own using our Free Money saving Tool Net worth Calculator (Canadian Budget Binder)
CBB Net Worth Losses And Gains
As it’s the beginning of the year, I decreased the truck by $3000 since it depreciates. However, based on the book price of used vehicles, my truck has gone up in price to more than what we paid for.
The markets pretty much take the brunt of the losses for January, but they are long-term aggressive and will go up, down and sometimes out the window.
Lastly, our house could sell for over one million dollars, but I’ll continue to use $345,000, which I increased a few times over the years but stopped.
We bought our house for $265,000 in 2009 and paid it off in five years, and now 2022, they are selling for over one million dollars.
Planning to sell and move is not on the charts for us as we are delighted right where we are.
Earn It, Save It, Invest It, Build It
Remember, “It’s not about how much money you make; it’s how you save it.”
People accumulate wealth because they know how to save or invest their money.
The most negligible improvements should mean significant strides in working towards your goals.
Be optimistic, and little by little with determination, you too should see financial improvements.
Canadian Budget Binder Net Worth Updates 2022
Click the links below to read our net worth updates for 2022.
This is the first net worth update for 2022, so there is nothing to read at the moment unless you want to read our net worth over the last ten years.
Thanks for reading.
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The post Money Secrets To Help You Retire Early: January 2022 Net Worth appeared first on Canadian Budget Binder.