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Zen Habits is a great site. It provides me good insight on how to simplify my life and remove clutter.

This is an interesting point of view of self improvement. Read for your self http://zenhabits.net/improve/

Battle 1: Our investments, or potential lack there of?

As an engaged couple, me and my fiancée, who I will refer to as Kate from here on forward, try to be as open as possible regarding our concerns

The other night, I bought up the topic of our financial future. She is well aware that I (in my mind it includes her as well) would like to retire as early as possible - ideally 40, realistically 55, and work only for pleasure, not out of necessity.

She, ideally would like to retire around the age of 55, but feels she will not be able to retire until she is closer to 65, as she will not have a large enough financial basket.

As I have taken a retirement planning course during my MBA, I have been able to start on a financial plan which covers the next 50 years of my life. Naturally my plan will have included a savings plan with my money spread over various investments vehicles, to let us be able to retire by 55.

As I question her about her investment situation, I find out that she does not have any investments, just savings! Her money is all liquid, and not in any sort of investment vehicle. She is extremely ANTI investing money. She does not trust the market. The last 4 years have gravely impacted her personally, and she does not want get back into it, EVER.

She says that I can to what I want with the savings from my portion of the income, but I can not invest her money.

I told her that if her money is not growing faster than inflation, she is loosing money and she will not get the same value for that dollar tomorrow as you are today. She counters by saying that at least she will know at all times how much money she has, and that she will not be losing it.

Her share of the savings are very important to our financial future. If we do not invest her share of the savings, she will not have to work until 65, WE will have to work forever.

Any thoughts? This is a tough one to wrap my head around. I will need to think about it over the next few days.

Short-term accommodations

As my employment is on a year term basis; my soon to be wife will be joining me half way through my term (about 6 months in), and not knowing where she will be employed, I am trying to avoid the commitment of signing a 1 year long lease.

I am looking for accommodations that can offer me a month to month until I can bring some assurance to my 1+ year future.

Now, when looking for a temporary residence, I am looking at 3 major categories - finance, convenience and risk. They are weighed at 40%, 30% and 30% respectively in terms of importance. I am not going to delve into the reasons why each category is weighed as is, but I have made a scorecard (see below), which goes into a little bit of detail.

So, after some thought I have narrowed my accommodation types to apartment- furnished or unfurnished, or a basement suite. I am the type that really values security, cleanliness (even though I hate to clean), accessibility to work, convenience and finances. I do not like to purchase and dispose of things, as I value quality and I value my time. Considering the fact once my soon to be wife moves in I would need to buy more things accordingly, I am trying avoid buying anything until the next 6 months pass.

Now, when making a decision, I of course have my best interest in mind, but I also have to consider my soon to be wife. I also place strong value on what my parents suggest (they are always looking out for my best interest, but they do not necessarily emphasize certain values the same as I do).

Finding a furnished apartment is the first thing that rang in my mind. This usually comes with the burden of expensive rent, but the convenience of month to month, move in ready and amazing proximity to my office makes it a highly attractive option.

My parents are on the horse about renting a basement or a suite in a house. This usually means relatively low rent including utilities. The downside of basement renting means usually living in the suburbs, which creates uncertainties regarding other tenants/owners, and reliance on bus and vehicle. You may or may not have to bring in your own furniture (in my case I would have to buy).

Finding a regular apartment is the easiest of all the tasks and another option my parents suggest. It comes with the burden of usually signing a 1 year lease, a path I do not wish to go down. It's cost usually falls in-between furnished and basement prices, depending on the area the apartment is located in (the safer and trendier the place the higher the cost). The downside is that I will most likely have to pay some utilities and parking. Another high cost associated with apartment dwelling is having to buy your own furniture and other apartment related things, which become your property and you must transport or throw out when you move.

The link below is a spreadsheet which compares the cost of an apartment in a nice and safe area, a furnished apartment downtown, and a suite or basement rental (on average, pending on availability). Following the spreadsheet is a balanced score card which weighs out my various criteria and scores the various options. The costs I am using are average costs in the area, but on a conservative side due to wide variations, and according to what I expect my realistic expenses will be. I have only done the analysis up until the time my soon to be wife moves in.

Here is my financial analysis and balanced score card. (click on link)

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According to my balanced scorecard, getting the furnished apartment, for me, makes the most sense over the next 5 months. It was a close call between the furnished apartment and the basement or suite. My biggest concern about the basement or suite is living in someone else's house and the lack of options of accommodations to choose from. I can easily get stuck in a suburb and have to take multiple buses to and from work and everything else. I love the idea of a furnished apartment with a close proximity to my office. I like the idea I can walk to work quickly (in a skywalk during winter), not waste my time or money commuting.

I have found a furnished place. It is a modern studio and is a little cheaper than the cost I put into my analysis. I have checked it out online and it looks perfect for what I want and need at the moment. I am going to check it out this week and see what the area is like.

Any thoughts?

New beginnings

It's been about a week since I last posted.

Lots going on. I just moved out west for a new job. It's a bitter/sweet feeling. I leave my family, fiance (temporarily) and my life for the last few years behind. In return, I come to a city I have called home for almost a decade, where I have established deep roots, and will spend the next year (at the least-barring any unexpected situations).

Tomorrow will be my first day on the job. Again, this is bitter/sweet. Unfamiliar environment, new people, a 45 min bus ride. In return, I will be working for top 3 telecom company in Canada, which is highly reputable and an economy driver where I am. I do know someone very well who will be working within my department, if not within my team. One of my best friends works a brisk 10 minutes walk away. And of course its the start of a new journey and career.

The next few weeks of adjusting will take some work. I am currently staying with some close family friends until I find a place of my own (aiming for the beginning of November).

Anyways, I think I will be making a post regarding finding temporary accommodations and comparing the value of a furnished and unfurnished unit sometime during the next few days.

It's Raining...Pennies!

Where did I get the title for my blog, some might ask?

Well, about 1 month ago, I was taking a shower. About 5 minutes into the my favorite 10 minutes of the day, a clank startled me and I slightly jumped in the shower stall. I turn around to see a penny sitting next to the drain.

Where did the penny fall from? There was nowhere in the shower from where the penny could have fallen from. I was in a stand up stall with a glass covering about 35% of the shower. Behind me was the soap dish hanging off the wall with a bar of soap sitting on it, the water faucet and lever, and the shower head. The shower head was an old one which had been out of commission for about 1 year, and had been re installed about 5 months ago. If a penny were to fall from anywhere off the shower head, it would have happend in the first few uses, not 5 months later.

The only other ledge in the stall was infront of me, and had 2 shampoo bottles, and a scrub brush sitting on it, but no pennies when I stepped in.

So, where did the penny fall from? Did it fall out of the water tap below? I highly doubt that, as all the water was being redirected to the shower head.

The mysterious penny is currently sitting on top of the head board next to my clock.

What do you make of it?

The Carnival

Well, my first post made it on the Carnival of Personal Finance!

I would like to thank Hope to Prosper for giving me the recognition and introducing me to the finance community.

Enjoy the carnival. I will have a post up tomorrow morning.

Breaking down the cost of food per person

As "I" will be soon becoming a "we", I am trying to trying estimate a reasonable financial plan for the next stages of our life. Obviously, one of the most important factors in reaching financial goals is setting and meeting a reasonable personal budget. Food is going to one of the largest monthly expenses, and can vary greatly from month to month, depending on a variety of factors.

As we plan to eat healthily- meaning organics where need be, multiple smaller meals a day, reduced red meat, well filtered water - budgeting will be crucial as a few of these choices require a larger expense than its commercial, everyday, substitute. A major reason for the practice of these choices are health concern which we are both encountering, and these practices are known to help with our concerns at hand.

I am trying to estimate a reasonable, yet not limiting grocery budget. I have seen a wide range of numbers from $250 all the way to $700 for 2 people in Canada. Of course observation of habits would be the best measure, but as we both live apart and in our respective homes with our parents and siblings, we do not have that privilege at the moment. But I am trying to prepare the best I can, with the time I have available before hand.

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I was at the grocery store today to pick up a few fruits. I was requested to bring home mango's, apples, bananas and grapes, enough to serve someone for 1 or 2 days.

I decided to look at it as 1 piece of each fruit for each day essentially. Now I am sure most of us have, at some point in our lives, have learned about the 4 different food groups and the "recommended" intake of each food group per day. In Canada here, it is "recommended" that an adult have 7-10 servings of fruits and vegetables per day, which I will use as a guideline.

My bill from Food Basics in the GTA compromised of:

2 red mango @ $.99 each - $1.98

0.440kg Premium bananas @ $1.48/kg (3 bananas) - $0.65 ($0.22 each)

0.350kg Golden Del. apples @ $2.18/kg (2 apples) - $0.76 ($0.36 each)

0.560kg Seedless green grapes @ $3.68/kg - $2.06

Tax - $0

Total - $5.45

Normally I would look for specials in the weekly flyer's before purchasing, but I was to lazy to drive around, so I went to the closest and the more reasonably priced store.

Now looking at it from the point of view from me and my soon to be wife, this is essentially 1 of each fruit, with 1 spare banana, and half of the bunch of grapes each. If I remove that spare banana the total bill would be about $5.23 for 2 people (or $2.62/person) for 1 days worth of fruit, to meet HALF the daily minimum "recommended" servings of fruit and vegetables. That is about $160/month for a regular basket of fruit.

As we plan to buy organic, it should be expected that the $160 can be anywhere from 25-50% higher or $200-240. But it can also be argued that organic food tends to be healthier as each piece has a significantly higher concentration of nutrients. So, we may need to only consume 3-7 as opposed to the 7-10, cutting the organic basket by about 50%, making it cheaper than the regular basket at a cost of $100-120/month.

Maybe vegetables are cheaper on a whole, and it might be financially better to just eat vegetables and not fruits? I don't know. Fruit is just the easiest thing to measure on a per person basis.

Thoughts, comments, concerns?