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Early Retirement Extreme Forums » ERE Journals

1. 

   pooablo
   

   Journeyman
   Joined: Aug '11
   Posts: 189

   Alright. This is reckoning time. I am posting my expenses online to keep me accountable and to make me think about my expenses more actively (versus passively when I review them in the privacy of my own home).

   September 2011

   Net Income After Tax, Insurance, and Donations: $4,416

   Health: $210
   Investing Interest Expense: $106
   Books and Music: $74
   Eating Out: $141
   Entertainment: $39
   Fitness: $455
   Gift: $26
   Groceries: $194
   Toiletries and Stationery: $10
   Transportation: $280
   Travel: $428
   Utilities: $166
   Total Expenses: $2,131

   Total Savings: $2,285
   Savings %: 51.7%

   I report my income net of taxes, insurance, and donations as I consider these unavoidable expenses.

   My fitness expense was high because I have a guilty pleasure: expensive yoga classes. I'm not too concerned about this fee as after FI, my cost will drop to $0 as I will volunteer or teach at a yoga studio for free classes.

   I went to San Francisco for the Labour Day long weekend which resulted in some travel expenses for the month. While I enjoy travelling, I do not plan on travelling much until after FI as I believe that FI is a much more important goal. Once I hit a level where I can pay for my basic needs (about $20K a year), I can always work a few odd jobs to pay for my travel expenses. However, the trip was worth it as I got to meet the founder of ERE and some other like minded people!

   My interest expense relates to a $37K loan that I have for investment purposes. This will also drop to $0 after FI.

   Transportation costs were high as I needed to rent a car for two weeks this month. That cost will drop after FI as I won't need to drive after I retire.

   My real focus should be on my eating out and grocery expenses. I remember only spending $40-$50 a week during my undergrad days on food. I definitely have some fat to trim. I have started by bringing my price book with me when I shop and I am planning to limit my Starbucks expenditures to $40 a month (another guilty pleasure). I am aiming to cut my food costs down to $300 and see if I still feel deprived at that point. The goal is to reduce expenses without feeling impoverished!

   Books and music were also unusually high as I spent about $70 converting some old VHS tapes into DVDs; definitely worth it as those tapes are scarce.

   I certainly feel like a spendthrift on this forum but wow this exercise will definitely help me to move out of my saving 40%-50% comfortable zone to the 70%-80% extreme zone.

   Question -- How do people past those wonderful graphs and charts into the post? I think that would be much easier than having to type each line item manually!

   Posted 1 year ago #
2. 

   bluepearl
   

   Journeyman
   Joined: Sep '11
   Posts: 105

   I'm curious about the health expense, is it Alberta's insurance plan or some one time expense (dental, prescription?)? I would like to be re-acquainted with Canada's health system thanks!

   I'm surprised there is no housing expense of anysort (rent, mortgage...)... Looks like you are way ahead compared to most of us...

   Posted 1 year ago #
3. 

   pooablo
   

   Journeyman
   Joined: Aug '11
   Posts: 189

   @bluepearl My health care expenses relates to health care not covered by Alberta Health Care such as massage therapy, acupuncture, and physiotherapy. My work insurance covers a large chunk of this so I am taking advantage of the health benefits while I can!

   I don't have any housing or rental expense because my father and I live together. He lets me live rent-free and I help him to look after his money. We get along fine. I'm quite lucky to have this set-up! If I had to live on my own, I could fine a room in a two-bedroom house or apartment for $400-$600 a month in my city.

   Posted 1 year ago #
4. 

   pooablo
   

   Journeyman
   Joined: Aug '11
   Posts: 189

   October 2011

   Net Income After Tax, Insurance, and Donations: $4,292

   Health: $79 (I <3 my massage therapist.)
   Investing Interest Expense: $84
   Books and Music: $12 (Library Card Renewal)
   Eating Out: $185
   Entertainment: $40
   Fitness: $0
   Gift: $35
   Groceries: $169
   Haircut: $15 (Incredible Chinatown barber!)
   Toiletries and Stationery: $40
   Transportation: $216 (Made the poor decision to take a job that requires the use of a car; though I can use one of 3 cars that father owns :P).
   Utilities: $154
   Total Expenses: $1,029

   Total Savings: $3,263
   Savings Rate: 76.0%

   What an exciting month! I tried doing some new things like volunteering for free yoga and dumpster diving. Both of these activities have significantly cut down my expenses for the month by giving me less time to spend money and allowing me to do things that I like for free (yoga and cooking).

   If I can keep my expenses down to this level, I can be free in 3.5 years. :)

   Dumpster Dive Find of the Month: 12 one-litre tetra-paks of Almond Milk (Retail Value $30).

   I also got 4 caseloads of jars and cans for preserving. I can't wait to start canning food from my dumpster diving finds!

   I also gave away my Hairspray DVD on Freecycle to pass on the good karma.

   The other thing that I did was sell down my portfolio to pay off my line of credit. I realized that I didn't enjoy the volatility that comes along with leverage. In addition, given that I save a large chunk of my money, I have no need to take additional risk in the market.

   My focus for the next month is to read up on some books on how to store food without a refridgerator including canning and preserving, dumpster diving once a week, and looking at getting a composter for my kitchen.

   http://www.naturemill.com/ I like the Nature Mill composter but it is a bit expensive at $400.

   Any thoughts?

   Posted 1 year ago #
5. 

   dotdot
   

   Novice
   Joined: Oct '11
   Posts: 15

   I've not used that type of composter...I'm more inclined to keep things outside....

   My compost is currently in a rubbermaid type bin with drainage holes drilled in the bottom (free!). I keep it outside with a heavy piece of cardboard covering it. It's mostly kitchen waste, but I add paper bags or newsprint occasionally. It has been colonized by black soldier fly larva (which are AMAZING). I haven't actually emptied the thing for months, yet the volume of scraps keeps getting reduced.

   Posted 1 year ago #
6. 

   Hoplite
   

   Master
   Joined: Dec '10
   Posts: 489

   Nice progress!
   If you enjoy the taste, pickling to preserve food without refrigeration is a nice alternative to plain canning. There is a decent site on home food preservation at http://nchfp.uga.edu/ with categories and further readings.

   Posted 1 year ago #
7. 

   pooablo
   

   Journeyman
   Joined: Aug '11
   Posts: 189

   @dotdot Does your compost bin leak at all? I live in an apartment building so I would have to put it out on the balcony.

   It's quite cold up here in Canada so I am not sure if any worms or flies would be able to survive in the compost during the winter months.

   I definitely like the rubber maid bin idea with holes in it. I have a few extra rubber maid bins at home that I can drill holes in. :)

   Posted 1 year ago #
8. 

   pooablo
   

   Journeyman
   Joined: Aug '11
   Posts: 189

   @Hoplite Thanks for the suggestion. I've been doing some reading on canning lately and it seems like a lot of work. I think the pickling and chutney methods may be more efficient.

   Posted 1 year ago #
9. 

   dotdot
   

   Novice
   Joined: Oct '11
   Posts: 15

   I have the compost bin raised slightly off the ground, so yes liquid does drain through the bottom. You could probably use two bins, one inside the other and just drain the liquid out of the bottom one from time to time.

   You might be able to get away with compost outside because it can heat up quite a bit.

   There are lots of designs for diy indoor worm bins. Those might be a better fit for your weather...

   Posted 1 year ago #
10. 

    pooablo
    

    Journeyman
    Joined: Aug '11
    Posts: 189

    November 2011

    Net Income After Tax, Insurance, and Donations: $4,476

    Health: $668 (Dealing with General Anxiety Disorder)
    Clothes: $67
    Eating Out: $168
    Electronics and Appliances: $52
    Entertainment: $23
    Gift: $68
    Groceries: $142
    Toiletries and Stationery: $10
    Transportation: $191
    Utilities: $152
    Total Expenses: $1,541

    Total Savings: $2,935

    Savings Rate: 65.6%

    I seem to be experiencing general anxiety disorder with constant heart palpitations, difficulties with sleeping, and problems with my digestion. In the past, I have been able to manage the symptoms via yoga and acupuncture.

    However, I never have been able to reset my body's "flight-or-fight" response because the energy it takes to deal with work stress prevents me from completely relaxing. Due to my perfectionist personality, trauma growing up with a (former) step-mother with borderline personality disorder, and a past boyfriend who cheated on me, my body has been conditioned to remain in a constant “yellow-alert “ state.

    Consequently, I ended up spending a lot of money trying to treat the symptoms this month via weekly acupuncture, homeopathy, and massage therapy. I am not a fan of taking anti-anxiety pills as they only mask the symptoms, do not resolve the underlying issue, and lead to a whole range of negative side effects.

    Given the amount it is costing me to get treatment, I am not sure if working at my current job is worth it anymore. Plus the cost to commute for my job is taking its toll on me from both a financial and physical perspective.

    I am in the process of applying for a leave of absence from my job and I may or may not get short-term disability. However, given that I have about 10 years of living expenses saved up, I do not need to depend on the short-term disability payments to take the leave. If I do get them, the payments will be a bonus!

    It is times like these that I am grateful for a rainy day fund.
    I am going to take a year off so that I can reset my nervous system. If it works out, I will return to work in the banking industry. If it does not work out, I will look for a lower stress job like life-guarding or teaching yoga.

    Originally, I was hoping to tough it out for another 2 years but I think the past few years of ignoring my symptoms have led me to developing the anxiety disorder. It's frustrating that this will delay my ERE target but my health is more important.

    Perhaps this will lead me to something more fulfilling.

    In any event, I will still need to stay in my role until a replacement can be found for me. This will be a good thing as I will need to stay at my position until the first week of January to get my annual bonus. I will keep you posted when I leave my job!

    Has anyone else experienced work-induced anxiety or stress disorders? Did you quit your job because of the anxiety or stress? Did your symptoms disappear after you quit your job?

    Posted 1 year ago #
11. 

    LiquidSapphire
    

    Master
    Joined: Jul '11
    Posts: 434

    Your story reminds me of my ex-husband who had some kind of anxiety disorder (undiagnosed, sort of). He popped Clonozapam like it was going out of style. No job stress, lots of job stress, relationship stress, lack of sleep, nothing, everything, there was not much rhyme or reason to some of the panic attacks, though more stress did correlate with more attacks, but he still had attacks with low stress. Same thing, heart pounding, thought he was having a heart attack, ER visits every time because THIS TIME IS DIFFERENT.

    Have you considered talk therapy such as CBT? I really think it would have helped him, might help you too, get a mental hold on the anxiety before it blows up into a full blown mess. You're right that the meds are only a short term solution. Seems like yoga/acupuncture might be also, just from your description.

    Posted 1 year ago #
12. 

    mikenotspam
    

    Apprentice
    Joined: Oct '11
    Posts: 55

    Hey Pooablo, sorry to hear ERE might be on hold, but it's good to put your wellbeing first, whatever that means for you. Let us know how it turns out, or if you reconsider for any reason. If you take a year off, you might want to Couchsurf by the Northeast US :-)

    Posted 1 year ago #
13. 

    pooablo
    

    Journeyman
    Joined: Aug '11
    Posts: 189

    Hey guys. Thanks for the support.

    @LiquidSapphire -- I am going to see a psychologist on Tuesday who has had experience helping people reset their nervous system. He is married to a former junior high school teacher of mine so we will see how that goes! I really think the anxiety is work-induced and it should go away after I go on leave. :)

    @mikenotspam -- I hope your offer to couch surf in the Northeast still stands when I go on leave! I've always wanted to check out Boston.

    Posted 1 year ago #
14. 

    bigato
    

    Master
    Joined: Mar '11
    Posts: 915

    May I hint you at something? Watch out salt consumption. Specially the hidden sodium masked with another names, like the one you find in bacon.

    Posted 1 year ago #
15. 

    ICouldBeTheWalrus
    

    Journeyman
    Joined: May '11
    Posts: 104

    As someone who lives with anxiety, I'll say this:

    I haven't (yet) sought professional help, though I may at some point in the future. All the Stoic and Buddhist ideas about how to deal with hardship and suffering are definitely applicable. Ironically, the more I have become aware of when I'm obsessing about something I'm anxious about, the more it seems like I'm frequently anxious, but in reality, I seem to have a lot less significant bouts of uncontrollable anxiety (having checked this with my wife, not entirely trusting my own perception.) There is certainly a life-long process of learning to manage anxiety constructively.

    As far as over-the-counter supplements, let me recommend l-theanine, (100 or 200 mg). It's a synthetically-produced version of one of the compounds found in tea. I find it has a noticeable, but not profound, effect and it doesn't make me drowsy or mentally foggy.

    Posted 1 year ago #
16. 

    palmera
    

    Journeyman
    Joined: Aug '11
    Posts: 270

    hey pooable, I can relate to you WRT to the anxiety and stress on the job. I saw a counselor about it, but in addition to an addictions doctor (!), cognitive behavioural therapy and meds, she recommended I uncover and deal with some past issues.

    i stopped seeing her b/c my work stopped covering it but she made me aware of my whole slew of issues.

    i've dealt with anxiety in the WORST ways possible (stories are outside the scope of ERE), but i think the root of it now is not so much my past but my overall sense of disillusionment with this life that i was sold,exacerbated by my job.

    this year i started getting weird hot flashes and yeah, heart palpitations at even the thought of work, as soon as i walked in the building.

    i think it has something to do with such utter lack of control of my life for 9+ hours of my day. it's inhumane. the only other times i've experienced anxiety like this was when i was a kid living at home, and being flat broke and homeless in europe.

    having said that, i'm very glad you're able to take your sabbatical. hopefully, you can clear your head and mind, find some peace, and be recharged for another 2-3 years of work (unless/when you find an alternate situation, since you're quite close to ERE anyway).

    good luck, keep us posted AND if you EVER need to couchsurf in Toronto, I have plenty of room, so PM me!

    Posted 1 year ago #
17. 

    pooablo
    

    Journeyman
    Joined: Aug '11
    Posts: 189

    Hey Palmera,

    Thank you for the kind words of encouragement and support. I am feeling a lot better now that I know that I am going on leave. I am planning on coming out to Toronto later this year and I think I'll be there for about 4 weeks to see my aunt and uncle and some close mines of mine. I'll let you know when I am in town. Maybe we could organize a Toronto ERE meet-up!

    Posted 1 year ago #
18. 

    pooablo
    

    Journeyman
    Joined: Aug '11
    Posts: 189

    @Bigato -- Thanks for the sodium tip. I'm actually vegan myself so I do have a relatively low sodium diet; there isn't much of that stuff in fruits and vegetables.

    @ICouldBeTheWalrus -- Thank you for the support. I just read Meditations by Marcus Aurelius and the points in that book were amazing. I had no idea Stoicism was so close to Buddhism -- I'm Buddhist myself. The anxiety does seem to come and go in cycles. I guess we just have to recognize that this emotion is "impermanent" just like everything else. As a wise man once said, "This, too, shall pass."

    Posted 1 year ago #
19. 

    Posthumane
    

    Novice
    Joined: Nov '11
    Posts: 29

    I really like the idea of reminding yourself that your emotions shall eventually pass. It's something I try to work on when I'm a bad mood (which happens too often I think), though it's not an easy thing to convince yourself of sometimes. Keep at it though, and I hope your break helps.

    Posted 1 year ago #
20. 

    pooablo
    

    Journeyman
    Joined: Aug '11
    Posts: 189

    April 2012 Update

    Well, it has been awhile since I have posted in my journal. I am embarrassed to say that my previous relationship did not work out, I fall in love a little too easy, and my expenses have been creeping up again.

    On the positive side, my income has continued to go up ($80K including bonus), I am actually generally enjoying my job, and the anxiety is no longer there. I think I just needed time to adjust to the new sales role and I have learned to ensure that I have sufficient breaks throughout the day to recharge my introvert battery. I leave the ringtone off on my phone and I schedule sufficient space around my client meetings so that I can mentally prepare myself for the next call.

    April 2012

    Net Income After Tax, Insurance, and Donations: $14,425

    Health: $37
    HELOC Interest: $24
    Books and Music: $69
    Clothes: $164
    Eating Out: $315
    Entertainment: $20
    Financial Fees: $25
    Fitness: $770
    Gift: $114
    Groceries: $240
    Health Non-Deductible: $31
    Toiletries and Stationery: $30
    Transportation: $231
    Travel: $358
    Utilities: $245
    Total Expenses: $2,672

    Total Savings: $11,604

    Savings Rate: 81.3%

    April 2012 Networth -- $171,000

    May was a fantastic month because of a large tax refund. My expenses are on the higher end but I have resigned myself to the fact that I will need to spend a little more while I work to keep my sanity. I know my expenses will drop easily between $500 to $1,000 a month as I will no longer have to drive and I will spend less money eating out and on entertainment-related items to de-stress from work. So as long as I maintain a high savings rate in the 50% to 60% range, I will be content.

    Taking my time and retiring in my mid-to-late 30s works for me. I was hoping to do it by 35 but I think that shorter deadline will be a little to extreme for me. I will focus on a more gradual savings path towards retirement.

    (Aside) -- I find it funny that I would consider retiring in my late-30s as being late. I am ever so grateful for this forum as it keeps things in perspective for me and encourages me to stay focused!

    Posted 1 year ago #
21. 

    Phayen
    

    Apprentice
    Joined: Jul '11
    Posts: 93

    I know what you mean by retiring late! I've been reading the forum for about a year now and set my goals for 18 years from now! I'll be 45 and think I should be able to make it pretty comfortably. Still later than most here though. I'm always happy to have goals to tighten up and push myself though.

    Posted 1 year ago #
22. 

    pooablo
    

    Journeyman
    Joined: Aug '11
    Posts: 189

    May 2012 Update

    Work has been going really well for me and I seem to be hitting my stride. Funny enough, I was the top salesperson in my category for my first quarter and that was when I was the most stressed out at work!

    I was actually going to take a year off from work a couple of months ago but my boss and my performance at work convinced me to stay. I am glad that I did as it helped me to realize that I can overcome my anxieties and challenges at work. The good performance has given more options too. I talked to my boss about getting a promotion and moving to Toronto within the next couple of years. He was very supportive and I hope it works out. I miss living in a bigger city!

    Suffice to say, I may as well enjoy the journey while I still have to work. In the meantime, I will continue to save diligently in the event that I ever have to take time off work or live a difficult situation. It's amazing how 10 years worth of savings in the bank can improve your bargaining situation!

    May 2012

    Net Income After Tax, Insurance, and Donations: $4,050

    Total Expenses: $2,410

    Total Savings: $1,640

    Savings Rate: 40.5%

    May 2012 Networth -- $170,000

    Despite my savings, my net worth dropped because of the market decline. Oh well, I just need to take things in stride.

    Posted 11 months ago #
23. 

    LiquidSapphire
    

    Master
    Joined: Jul '11
    Posts: 434

    Thanks for your kind words on my journal! Glad to hear all is going so well.

    Posted 11 months ago #
24. 

    pooablo
    

    Journeyman
    Joined: Aug '11
    Posts: 189

    Happy Pride Month Everyone!

    I'm waiting at Edmonton airport before heading off to Toronto for Pride for a week. I'll also be networking for future job opportunities with my company in the next two years.

    While I am in the 'rat race', I might as well be proactive and continue to look for more interesting and better-paying positions. I am lucky that I work for a dynamic company with so many different job options.

    June was a great month for me as my net worth broke the $175K mark for the first time!

    June 2012

    Net Income After Tax, Insurance, and Donations: $4,370

    Total Expenses: $1,390

    Total Savings: $2,980

    Savings Rate: 68.2%

    June 2012 Net Worth -- $176,000

    I am curious to see when I will hit the $200K mark. Seeing myself getting closer and closer to my goal is encouraging. :)

    I am glad to see that some other people on the forum have become FI or are progressing towards FI steadily.

    Posted 10 months ago #

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