Comments on: My Saving Strategies http://www.milliondollarjourney.com/my-saving-strategies.htm Building Wealth through Saving and Investing Sun, 12 Feb 2012 07:02:44 -0330 http://wordpress.org/?v=abc hourly 1 By: FrugalTrader http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-120113 FrugalTrader Sat, 23 Apr 2011 11:25:32 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-120113 @Y, I asked the same question a little while back! http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm @Y, I asked the same question a little while back!
http://www.milliondollarjourney.com/finding-the-balance-between-life-and-money.htm

]]> By: Y http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-120109 Y Sat, 23 Apr 2011 03:01:48 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-120109 This article reminded me of a great anecdote I've heard a long time ago. A guy at doctor's office being told that he's got a terminal disease. He asks: - Doctor, is there anything I can do to prolong my life now? - Well, you can stop drinking, smoking, having sex, meeting women and watching TV, doctor says. - Will I live much longer? - No, but the last few months you've got left will feel like eternity. Why do I bring this up? Cause articles like this remind me of all those rich old people who have been so tight all their life, that they live only to see their bank accounts grow. Forget anything that brings fun into your life, forget any enjoyment. Their purpose in life is to save money. And I think it's a mental condition. What you're advocating here for is being very uptight - do not go out, do not eat out, do not do this, do not do that. That's one hell of a boring life. Next thing you know - don't invite anyone to your place cause they can eat extra chip or cracker and it'd cost you extra 1c. Also where is the fun in making money if you cannot spend it on something that will make you feel like all that hard work you did was worth it? You always need a balance in your life, and this article clearly misses the point. Don't forget about life while preparing for something in your distant future - that future may never happen. This article reminded me of a great anecdote I’ve heard a long time ago.

A guy at doctor’s office being told that he’s got a terminal disease. He asks:
- Doctor, is there anything I can do to prolong my life now?
- Well, you can stop drinking, smoking, having sex, meeting women and watching TV, doctor says.
- Will I live much longer?
- No, but the last few months you’ve got left will feel like eternity.

Why do I bring this up? Cause articles like this remind me of all those rich old people who have been so tight all their life, that they live only to see their bank accounts grow. Forget anything that brings fun into your life, forget any enjoyment. Their purpose in life is to save money. And I think it’s a mental condition.

What you’re advocating here for is being very uptight – do not go out, do not eat out, do not do this, do not do that. That’s one hell of a boring life. Next thing you know – don’t invite anyone to your place cause they can eat extra chip or cracker and it’d cost you extra 1c.

Also where is the fun in making money if you cannot spend it on something that will make you feel like all that hard work you did was worth it? You always need a balance in your life, and this article clearly misses the point. Don’t forget about life while preparing for something in your distant future – that future may never happen.

]]> By: Tara http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-116027 Tara Thu, 21 Oct 2010 23:34:35 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-116027 For #1, Netflix definitely saves me money on that (~$10 per month for unlimited DVDs in/out and streaming). Cinema nights are almost always not worth the money. And I put my Netflix account on hold when I know I don't have the time to watch at least one movie per month. As for #8, I don't understand at all why people only go for the $50+ cable packages. Maybe it's because of the way cable companies market the packages? I pay for limited cable, which gets me all the major networks (including CBC! - I live in the US) and I only pay $12.50 per month. Well, I used to pay $12.55 and they just raised it to $14. But that's still fairly cheap. For #1, Netflix definitely saves me money on that (~$10 per month for unlimited DVDs in/out and streaming). Cinema nights are almost always not worth the money. And I put my Netflix account on hold when I know I don’t have the time to watch at least one movie per month.

As for #8, I don’t understand at all why people only go for the $50+ cable packages. Maybe it’s because of the way cable companies market the packages? I pay for limited cable, which gets me all the major networks (including CBC! – I live in the US) and I only pay $12.50 per month. Well, I used to pay $12.55 and they just raised it to $14. But that’s still fairly cheap.

]]> By: Tommy http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-113904 Tommy Wed, 30 Jun 2010 03:35:38 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-113904 I agree. Boneless, Skinless Chicken Breasts are soooo over-priced! I always get chicken breast with bone-in and skin on. The bone actually gives a lot of flavour if you slow cook the chicken. I would say a person can save probably 1.50-2 on not getting boneless and skinless. This goes the same with chicken thighs. I always get the ones with skin on. I agree. Boneless, Skinless Chicken Breasts are soooo over-priced! I always get chicken breast with bone-in and skin on. The bone actually gives a lot of flavour if you slow cook the chicken. I would say a person can save probably 1.50-2 on not getting boneless and skinless. This goes the same with chicken thighs. I always get the ones with skin on.

]]> By: Tommy http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-113903 Tommy Wed, 30 Jun 2010 03:32:35 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-113903 I NEVER pay full price when going to movies. I love FREE movies! The way I do it is redeem my Airmiles for a movie package for 2 adults. Here is the saving: 2 Movie Passes: $24-ish 2 Med Soft Drinks: $7 1 Med Pop Corn: $4 Total Cost = $35 I use 175 airmiles to redeem this package (value at $35). Other gift cards will only give you $25 at most. So the movie package is DA BEST value. I NEVER pay full price when going to movies. I love FREE movies! The way I do it is redeem my Airmiles for a movie package for 2 adults. Here is the saving:

2 Movie Passes: $24-ish
2 Med Soft Drinks: $7
1 Med Pop Corn: $4
Total Cost = $35

I use 175 airmiles to redeem this package (value at $35). Other gift cards will only give you $25 at most. So the movie package is DA BEST value.

]]> By: Toronto Bankruptcy http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-113289 Toronto Bankruptcy Sat, 22 May 2010 02:24:00 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-113289 Frugal Trader, you read my mind. The inability to distinguish between "needs" and "wants" has gotten consumers into the mess they're in with all their consumer debt. It's the "little" expenses like coffee and lunch that really impact a family's budget over the long term. They are exchanging money for convenience without thinking of the real cost of this. Frugal Trader, you read my mind. The inability to distinguish between “needs” and “wants” has gotten consumers into the mess they’re in with all their consumer debt.

It’s the “little” expenses like coffee and lunch that really impact a family’s budget over the long term. They are exchanging money for convenience without thinking of the real cost of this.

]]> By: David http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-112073 David Sat, 03 Apr 2010 01:27:46 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-112073 I have some more ideas. You don't really even need cable tv or any of that move stuff. Just download movies, music, video games from the internet. Get an unlimited internet search. If you need cable theres always the intena(sp?) approach and you can even get hd channels. Switch to a VOIP phone line for your house line(unless you need a phone line for unlimited net still good for a second phone line). Using a website like Freephoneline.ca will charge you $3.95 a month everywhere in canada or get a magic jack and its 3.95 a year. For cell phones try and get the basic package. For books goto your local libraby and borrow them or when they do have book sales they usually cost $1-$2. I don't usually try and save $ on food as I eat all non processed super healthy stuff such as chicken, fish, fruits, veggies, berries, rice, nuts. For chicken I don't like bones and skins but I buy normal chicken beasts and I have a good debone knife and just remove the skins which saves $. Also try going to a few local markets to pick up veggies, fruit and meats I friend its cheaper and fresher then supermarkets. In big cities like t.o you don't even need a car really just walk/take public transit and it will save you alot of hassle. If you have a super stable job try and find a place close to it. I live in a house thats a 5 minute walk to work and has everything else ammenity wise around it within a 10-20 minute walk around me. I have some more ideas. You don’t really even need cable tv or any of that move stuff. Just download movies, music, video games from the internet. Get an unlimited internet search. If you need cable theres always the intena(sp?) approach and you can even get hd channels.
Switch to a VOIP phone line for your house line(unless you need a phone line for unlimited net still good for a second phone line). Using a website like Freephoneline.ca will charge you $3.95 a month everywhere in canada or get a magic jack and its 3.95 a year. For cell phones try and get the basic package. For books goto your local libraby and borrow them or when they do have book sales they usually cost $1-$2.
I don’t usually try and save $ on food as I eat all non processed super healthy stuff such as chicken, fish, fruits, veggies, berries, rice, nuts. For chicken I don’t like bones and skins but I buy normal chicken beasts and I have a good debone knife and just remove the skins which saves $. Also try going to a few local markets to pick up veggies, fruit and meats I friend its cheaper and fresher then supermarkets.
In big cities like t.o you don’t even need a car really just walk/take public transit and it will save you alot of hassle.
If you have a super stable job try and find a place close to it. I live in a house thats a 5 minute walk to work and has everything else ammenity wise around it within a 10-20 minute walk around me.

]]> By: Toronto Bankruptcy Trustee http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-83500 Toronto Bankruptcy Trustee Thu, 21 May 2009 15:41:16 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-83500 I think this is a great round-up of ideas on how an average individual can cut down their unnecessary expenses and start saving. I like the personal approach taken in communicating this information. Great article! I think this is a great round-up of ideas on how an average individual can cut down their unnecessary expenses and start saving. I like the personal approach taken in communicating this information. Great article!

]]> By: GTP http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-79174 GTP Fri, 24 Apr 2009 01:30:22 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-79174 It's quite the debate going on here! I can't honestly say that I'm anywhere near as frugal as many people here - and, quite realistically, I don't ever plan on being that frugal. I budget, pay myself first (an absolute MUST), and the rest is mine to do whatever I want with. I love a nice $1.73 cup of starbucks a few times a week (coffee at work is free). Going out for dinner regularly is really losing its appeal, but if the meal is good, I'll go again. There are a lot of things I could cut out of my life but I really enjoy them and likely will continue to do so. With a good investment strategy and my current cost of living, I'll be just fine. I would rather earn more (by studying markets and learning new strategies) off of my investments to offset the fact that I enjoy some of the luxuries in life. That being said, I don't own a car, I just split my roommates insurance + gas with him to be able to drive his car on occasion. I'm sure there will be some kick back on this - thoughts anyone? It’s quite the debate going on here! I can’t honestly say that I’m anywhere near as frugal as many people here – and, quite realistically, I don’t ever plan on being that frugal. I budget, pay myself first (an absolute MUST), and the rest is mine to do whatever I want with. I love a nice $1.73 cup of starbucks a few times a week (coffee at work is free). Going out for dinner regularly is really losing its appeal, but if the meal is good, I’ll go again. There are a lot of things I could cut out of my life but I really enjoy them and likely will continue to do so. With a good investment strategy and my current cost of living, I’ll be just fine. I would rather earn more (by studying markets and learning new strategies) off of my investments to offset the fact that I enjoy some of the luxuries in life. That being said, I don’t own a car, I just split my roommates insurance + gas with him to be able to drive his car on occasion. I’m sure there will be some kick back on this – thoughts anyone?

]]> By: InvestAssetWealth http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-77510 InvestAssetWealth Mon, 13 Apr 2009 18:16:36 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-77510 Not big into movies, and the theater prices have risen exponentially in the last 15 years. No desire to attend and spend money there. Going out for dinner is one of the largest rip-offs on planet earth. More specifically is the alcohol and beverages portion - that is where restaurants have the highest profit margins. That being said, many people like to be waited upon, cooked for, and cleaned-up after; completely understandable. So although I find going out for dinner to be a waste of money, many people do not agree. I will admit, it is nice once in a while though; 4 times per year is good enough for me. I have no problem brown bagging it, did it for years. If I'm far away from home and didn't bring a lunch, I will usually grab fast food spending under $4, no beverage. I drank way too much pop growing up, and have mainly switched to water which I always have plenty of while on the road. If you keep food purchases under $4, you don't pay any PST; GST only. That can add up over the years. I'm not addicted to coffee (and it is an addiction) or cigarettes & I rarely drink booze. I drive a 15 year old pickup truck which I take care of and maintain well. I love mechanics so I take care of most the repairs myself. Labour is your major cost with any vehicle repair, aftermarket parts are relatively cheap. The true value of used vehicles depends on how hard they were driven, and how well they were maintained. New cars are a huge liability, depreciating significantly as they are driven off the lot. However, a cheap new car is not a bad play for somebody not comfortable with mechanics. Basic cable all the way, but BNN is a must! Is the game over? Did I win? :-) InvestAssetWealth Not big into movies, and the theater prices have risen exponentially in the last 15 years. No desire to attend and spend money there.

Going out for dinner is one of the largest rip-offs on planet earth. More specifically is the alcohol and beverages portion – that is where restaurants have the highest profit margins. That being said, many people like to be waited upon, cooked for, and cleaned-up after; completely understandable. So although I find going out for dinner to be a waste of money, many people do not agree. I will admit, it is nice once in a while though; 4 times per year is good enough for me.

I have no problem brown bagging it, did it for years. If I’m far away from home and didn’t bring a lunch, I will usually grab fast food spending under $4, no beverage. I drank way too much pop growing up, and have mainly switched to water which I always have plenty of while on the road. If you keep food purchases under $4, you don’t pay any PST; GST only. That can add up over the years.

I’m not addicted to coffee (and it is an addiction) or cigarettes & I rarely drink booze.

I drive a 15 year old pickup truck which I take care of and maintain well. I love mechanics so I take care of most the repairs myself. Labour is your major cost with any vehicle repair, aftermarket parts are relatively cheap. The true value of used vehicles depends on how hard they were driven, and how well they were maintained. New cars are a huge liability, depreciating significantly as they are driven off the lot. However, a cheap new car is not a bad play for somebody not comfortable with mechanics.

Basic cable all the way, but BNN is a must!

Is the game over? Did I win? :-)

InvestAssetWealth

]]> By: Horlic http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-76238 Horlic Mon, 06 Apr 2009 09:08:18 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-76238 I have one saving strategies here. Maybe for who can't control their expenses they may use the "force" strategies. 1. Auto debits your salary to saving account e.g. 20% of your salary. 2. Allocate the money for food, entertainment, groceries, investment, miscellaneous and etc. 3. Record your daily expenses, don't take more than one credit card with you when you go out and minimum $$ in your wallet (e.g 50 bucks). 4. This is most important one: Be persistent; otherwise don't waste your time. I have one saving strategies here. Maybe for who can’t control their expenses they may use the “force” strategies. 1. Auto debits your salary to saving account e.g. 20% of your salary. 2. Allocate the money for food, entertainment, groceries, investment, miscellaneous and etc. 3. Record your daily expenses, don’t take more than one credit card with you when you go out and minimum $$ in your wallet (e.g 50 bucks). 4. This is most important one: Be persistent; otherwise don’t waste your time.

]]> By: Tips on Budgeting: Make Your Budget Work For You http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-71663 Tips on Budgeting: Make Your Budget Work For You Tue, 24 Feb 2009 18:45:42 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-71663 Nice post A budget is a spending plan that includes everything you will spend money on. A good budget is a spending plan that includes everything you will spend money on and stays within your income. Budgeting tips, information, advice, and resources to help you set up a successful budget and stay motivated. Nice post
A budget is a spending plan that includes everything you will spend money on. A good budget is a spending plan that includes everything you will spend money on and stays within your income.
Budgeting tips, information, advice, and resources to help you set up a successful budget and stay motivated.

]]> By: Lily http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-68731 Lily Sun, 01 Feb 2009 01:46:06 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-68731 One of my fave ways to save money / splurge without spending money, is using my reward points to redeem for gift cards / certificates. I've given gifts this way a number of times and it's an efficient way to spend money on yourself (e.g. a $5 latte) without hurting the wallet. One of my fave ways to save money / splurge without spending money, is using my reward points to redeem for gift cards / certificates. I’ve given gifts this way a number of times and it’s an efficient way to spend money on yourself (e.g. a $5 latte) without hurting the wallet.

]]> By: Term Insurance Pro http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-62590 Term Insurance Pro Mon, 01 Dec 2008 17:31:27 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-62590 I think the food items are the most important for me. I don't spend much on coffee (don't drink it) or alcohol or cigarettes (don't use either), but I do go out to eat multiple times a day. I know it's a little overkill. But I recently bought a home and have made it my goal to start cooking a lot more at home. I know I waste a lot of money by going out to lunch and dinner so much. Plus my food would probably taste better and be more healthy if I cook it myself. I think the food items are the most important for me. I don’t spend much on coffee (don’t drink it) or alcohol or cigarettes (don’t use either), but I do go out to eat multiple times a day. I know it’s a little overkill. But I recently bought a home and have made it my goal to start cooking a lot more at home. I know I waste a lot of money by going out to lunch and dinner so much. Plus my food would probably taste better and be more healthy if I cook it myself.

]]> By: Patty http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-59633 Patty Wed, 05 Nov 2008 20:20:04 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-59633 I know this is pretty late considering when you wrote this article, but I would still like to submit my saving strategies as I think they could help some people out. Our income was drastically cut with me being on maternity leave and to survive we did everything you mentioned plus the following things... 1.) Get rid of 1 of our 2 cars and get a bus pass. - This cut our insurance, parking, gas and repairs in half and the hubby can take the bus to work which he loves cause he can have his coffee and read the paper while being driven to work. We got the most basic insurance on the remaining car and only use it for grocery shopping and doctor appts. 2.) Looking at consolidating debt into our mortgage. - Still shopping around with the help of a mortgage broker who is free. 3.) Living on cash rather than credit cards. - We got this idea from the TV show Till Debt Due Us Part. The host, Gail Vaz-Oxlade, uses cash jars to help people budget. Here is a link to these fabulous magic jars: http://www.gailvazoxlade.com/articles_f/article1-5.htm 4.) Started buying baby stuff from EBAY and Craigslist. Have to be careful as safety laws change and you don't want to buy something that may not be the safest on the market. 5.) Making our own beer and wine. We live in Vancouver, BC and there are wonderful U-Brews here, where you tell them what you want ie./honey brown lager and they make it for you. When it's ready you go down and can or bottle it. Here is our savings: 6 cases of 24 imported beers at the store = $450 plus versus $200 (if we re-use our bottles rather than canning) 6.) We have 2 extra bedrooms in our house. We use one for family or friends that come to visit and the other room (it's in the basement and quite comfortable) we have rented out in a "homestay" fashion. Our homestay is a student from Switzerland who is staying with us for the school year. She pays us for room and board and we help her learn English and give her a home environment (she has dinner with us and comes on outings with us). Thank you for your time and I love your site. I know this is pretty late considering when you wrote this article, but I would still like to submit my saving strategies as I think they could help some people out.
Our income was drastically cut with me being on maternity leave and to survive we did everything you mentioned plus the following things…
1.) Get rid of 1 of our 2 cars and get a bus pass. – This cut our insurance, parking, gas and repairs in half and the hubby can take the bus to work which he loves cause he can have his coffee and read the paper while being driven to work. We got the most basic insurance on the remaining car and only use it for grocery shopping and doctor appts.
2.) Looking at consolidating debt into our mortgage. – Still shopping around with the help of a mortgage broker who is free.
3.) Living on cash rather than credit cards. – We got this idea from the TV show Till Debt Due Us Part. The host, Gail Vaz-Oxlade, uses cash jars to help people budget. Here is a link to these fabulous magic jars: http://www.gailvazoxlade.com/articles_f/article1-5.htm
4.) Started buying baby stuff from EBAY and Craigslist. Have to be careful as safety laws change and you don’t want to buy something that may not be the safest on the market.
5.) Making our own beer and wine. We live in Vancouver, BC and there are wonderful U-Brews here, where you tell them what you want ie./honey brown lager and they make it for you. When it’s ready you go down and can or bottle it. Here is our savings: 6 cases of 24 imported beers at the store = $450 plus versus $200 (if we re-use our bottles rather than canning)
6.) We have 2 extra bedrooms in our house. We use one for family or friends that come to visit and the other room (it’s in the basement and quite comfortable) we have rented out in a “homestay” fashion. Our homestay is a student from Switzerland who is staying with us for the school year. She pays us for room and board and we help her learn English and give her a home environment (she has dinner with us and comes on outings with us).
Thank you for your time and I love your site.

]]> By: Ben http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-47249 Ben Thu, 07 Aug 2008 12:14:16 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-47249 1. A relative sometimes gets us free tickets to the theatre. Once a month we’ll get a movie at the store, but usually have a coupon for that from a cereal box or other promotion. 2. We go out to eat once every 2-3 weeks it seems. We could do less, but usually go to Swiss Chalet for the quarter chicken white (which is rising steadily in price). Brownbag the lunch for sure. 3. The vices: I can get free coffee in the morning at work, and my wife has coffees and special teas at work. Smoke not. The booze can add up, even when consumed at home. Buy the buck-a-beers, save a lot. 4. We both have small import cars that we bought new 4-7 years ago, and intend to drive into the ground. 5. We started out with full cable TV, and cut back to basic when we realized the savings. Recently, we’ve cut cable TV entirely as an incentive to get outside and enjoy the summer, but to my chagrin we seem to still get about 10 channels for free! CBC, Global, NBC, and others. We also have lite internet, $34.95/month. Phone is basic Bell line, with YAK LD @ 3.5c/min. After tax phone is about $30/month, and total communications bill is about $70. 6. My coupon queen uses frugalshopper.com for ideas on saving money, and where to get the deals. 7. My Achilles heel is the projects around the house – Home Depot loves me. But after 3 years in the house, things are quieting down thankfully. 1. A relative sometimes gets us free tickets to the theatre. Once a month we’ll get a movie at the store, but usually have a coupon for that from a cereal box or other promotion.
2. We go out to eat once every 2-3 weeks it seems. We could do less, but usually go to Swiss Chalet for the quarter chicken white (which is rising steadily in price). Brownbag the lunch for sure.
3. The vices: I can get free coffee in the morning at work, and my wife has coffees and special teas at work. Smoke not. The booze can add up, even when consumed at home. Buy the buck-a-beers, save a lot.
4. We both have small import cars that we bought new 4-7 years ago, and intend to drive into the ground.
5. We started out with full cable TV, and cut back to basic when we realized the savings. Recently, we’ve cut cable TV entirely as an incentive to get outside and enjoy the summer, but to my chagrin we seem to still get about 10 channels for free! CBC, Global, NBC, and others. We also have lite internet, $34.95/month. Phone is basic Bell line, with YAK LD @ 3.5c/min. After tax phone is about $30/month, and total communications bill is about $70.
6. My coupon queen uses frugalshopper.com for ideas on saving money, and where to get the deals.
7. My Achilles heel is the projects around the house – Home Depot loves me. But after 3 years in the house, things are quieting down thankfully.

]]> By: FrugalTrader http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-43612 FrugalTrader Sun, 13 Jul 2008 00:37:33 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-43612 canabiz, that's an interesting question. I'm not sure if owning a cottage is an investment where it's more of a luxury. If the cottage is affordable and your family would use and enjoy it, why not get one? One caveat though, cottages are fully taxable when they are sold. This applies even if the owner of the cottage were to pass away and wanted to give it to their children. To the government, the cottage would be sold upon passing and taxes would be owed providing that there is a profit. One way to get around this is to put the cottage under a "trust" structure. More on this later. canabiz, that’s an interesting question. I’m not sure if owning a cottage is an investment where it’s more of a luxury. If the cottage is affordable and your family would use and enjoy it, why not get one?

One caveat though, cottages are fully taxable when they are sold. This applies even if the owner of the cottage were to pass away and wanted to give it to their children. To the government, the cottage would be sold upon passing and taxes would be owed providing that there is a profit. One way to get around this is to put the cottage under a “trust” structure. More on this later.

]]> By: canabiz http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-43502 canabiz Sat, 12 Jul 2008 02:02:14 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-43502 FT, when you have time, can you pose a question for the readers: *Is owning a cottage a good financial decision* or something to that effect. My answer would be No but I am curious to hear others' thought on this. A lot of my co-workers own cottages and they practically head over there right after work on Friday, it's freedom for them and the kids, make no mistake about it but I am not convinced owning a cottage makes the most financial sense. If I want to go to one, I will rent and let the cottage owners worry about the the maintenance, the upkeep and the taxes. Your thoughts ? FT, when you have time, can you pose a question for the readers: *Is owning a cottage a good financial decision* or something to that effect. My answer would be No but I am curious to hear others’ thought on this. A lot of my co-workers own cottages and they practically head over there right after work on Friday, it’s freedom for them and the kids, make no mistake about it but I am not convinced owning a cottage makes the most financial sense.

If I want to go to one, I will rent and let the cottage owners worry about the the maintenance, the upkeep and the taxes.

Your thoughts ?

]]> By: Jeremy http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-33315 Jeremy Wed, 30 Apr 2008 19:02:29 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-33315 JR - how do you zero your HELOC every 12 month? How does that work? What is the principle behind that? JR – how do you zero your HELOC every 12 month? How does that work? What is the principle behind that?

]]> By: JR http://www.milliondollarjourney.com/my-saving-strategies.htm/comment-page-1#comment-30263 JR Sat, 05 Apr 2008 22:00:29 +0000 http://www.milliondollarjourney.com/my-saving-strategies.htm#comment-30263 # 27 post by moneysheep, the car thing, yes agreed and I do the same thing. We are a two vehicle family, wife has one and I have one. i purchase older cars, always on the look out for a vehicle that was driven by an older person, senior is better. 8-10 years old, low milage, good bodywork, and will not pay more than $2500. We will generally as arule keep the vehicle 5 years, spend on repairs no more than $1000 during that period on the things, then sell them at $1000. Try to keep vehicle purchase and depreciation to $500/yr. Insurance is always third party only at a cost of not more than $500 per vehicle per year On other stuff, quick explanation. We rarely eat out or have take-out. Brown bag it for lunch, and spend no more than 1% of the months net income on food & entertainment. Groceries, coupon clip, shop at three - four grocery stores, load up with specials only, this gets us a weekly grocery tab of $50 average & yes we eat all the right stuff, including meat, fish, chicken, bread and veggies. We buy zero junk food. Energy efficient lights, timers on the furnace and the communications bill (cell, internet, land-line & cable TV runs no more than $150/month. No special features on any of the phones. Monthly running costs & living expenses for a family of three, two adults and one still live at home child 22, the freeloader (a great kid) that does not contribute to any expenses: On a $2800 SQ.FT house, now fully paid for with a 75% HELOC on it that zero balance's every tweleve months Heat & Hydro $200 Property taxes $350 (thats the killer) Communications $150 Food $200 Entertainment $50 Car insurance $83 Car maintenance & service (budget) $30 Gasoline $150 (one car used for work) Clothes budget $30 (shop at the thrift store, we have a good one were we live) SUB-TOTAL: ................$1243 10% contingency ...........$125 MONTHLY EXPENSES ...........$1368 With the right investments, tax planning, HELOC we do in fact live free. # 27 post by moneysheep, the car thing, yes agreed and I do the same thing.

We are a two vehicle family, wife has one and I have one.

i purchase older cars, always on the look out for a vehicle that was driven by an older person, senior is better. 8-10 years old, low milage, good bodywork, and will not pay more than $2500. We will generally as arule keep the vehicle 5 years, spend on repairs no more than $1000 during that period on the things, then sell them at $1000. Try to keep vehicle purchase and depreciation to $500/yr. Insurance is always third party only at a cost of not more than $500 per vehicle per year

On other stuff, quick explanation.

We rarely eat out or have take-out. Brown bag it for lunch, and spend no more than 1% of the months net income on food & entertainment.

Groceries, coupon clip, shop at three – four grocery stores, load up with specials only, this gets us a weekly grocery tab of $50 average & yes we eat all the right stuff, including meat, fish, chicken, bread and veggies. We buy zero junk food.

Energy efficient lights, timers on the furnace and the communications bill (cell, internet, land-line & cable TV runs no more than $150/month. No special features on any of the phones.

Monthly running costs & living expenses for a family of three, two adults and one still live at home child 22, the freeloader (a great kid) that does not contribute to any expenses:

On a $2800 SQ.FT house, now fully paid for with a 75% HELOC on it that zero balance’s every tweleve months

Heat & Hydro $200
Property taxes $350 (thats the killer)
Communications $150
Food $200
Entertainment $50
Car insurance $83
Car maintenance & service (budget) $30
Gasoline $150 (one car used for work)
Clothes budget $30 (shop at the thrift store, we have a good one were we live)
SUB-TOTAL: …………….$1243
10% contingency ………..$125
MONTHLY EXPENSES ………..$1368

With the right investments, tax planning, HELOC we do in fact live free.

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