I mentioned before that we have had our own share of financial privilege. This is a topic that is so deep and difficult to discuss but I’m going to talk about it some more. This community doesn’t talk about it enough but it is so vital to some of the success that people have had that it needs to be discussed. I don’t think it is ever enough to stop talking about this one.
Financial privilege is spoken of in hushed voices in the personal financial world. You see if people admit that they have it they somehow lose credibility for their voice or message. However it is important to acknowledge that you have had a leg up and it’s helped get you to where you are now. I have a huge win in terms of financial privilege and I’m still reaping the benefits from it. I dislike when others don’t admit that they have or have previously had some type of financial privilege. Financial privilege changes your life and it is something that needs to be acknowledged. It should not be brushed to the side out of lack of understanding of what you have been given.
In early May we headed to Ottawa for a weekend. The weather was horrible and the 5 hour drive from Toronto took over 7.5 hours. There were lots of times when we had wipers on full speed and then took them down to normal and then back up again. It was dark and the highway had very few lights so it made the drive a little extra stressful. Not knowing the roads didn’t help the situation either. The back and forth of the wiper speed and the intense focus of the road were critical to make sure we were able to see the environment we were driving into. This got me thinking that adjusting to your changing environment is a skill that is good in all areas of your life, personal, professional and financial.
A Look At The Proposed Increase To Minimum Wage In Ontario
One thought that is shared amongst almost all millennials is that the cost of living is increasing at a much faster rate than income. In a perfect world, there would be parity between inflation of costs and inflation of wages. This isn’t a perfect world though and these trends tend to work more on reaction rather than cooperation. After much fanfare – Ontario is on the cusp of raising the minimum wage. This is part of the Fair Workplaces, Better Jobs Act, 2017. Due to the impact on retail and food service chains, the reactions are mixed. These employers often use a large number of minimum wage (or close to) workers to operate their business. I believe this is both a good, and necessary step towards improving our economy. Only time will tell if the effect is positive or negative.
From A Non-Millionaire’s Perspective!
There are over 1 million millionaires in Canada. Cross the border to the South and that number skyrockets to around 16 million. So in a sample of approximately 357 million people – almost 5% of us are millionaires. I wrote a post not that long ago about how the value of a million dollars has shrunk considerably. I still believe being a millionaire has a certain prestige to it even in today’s world economy. So if your goal is to have the title of millionaire – what is that going to take? I’m not talking about strategy – I’m talking about what you need to actually have to be a millionaire.
A couple of months ago Des from Half-Banked had a blog post about how to spend or save your tax refund for maximum happiness. One of the points was to treat yourself; guilt-free. (Check her site out if you have not already!) Her point was if you are responsible with 90% of it you don’t have to feel guilty about spending 10% of it. It’s a great concept and it really works for people who are more likely to spend 90% and save 10%. The problem with that is that I can’t seem to put that into practice myself. So I was wondering if I should feel odd for saving/investing 100% and if I’m missing out on something.
As part of Scott’s change in jobs at the beginning of 2017 we needed to make a car purchase. Scott has had a company vehicle since 2009. A new car as well as the increase in insurance had not been part of our budget. Setting aside money every month for a replacement car for me was.
For the record I don’t buy new cars. I have a tendency to run the car until it doesn’t work anymore the math doesn’t work out for me. If I want to spend $300 a month on a car if I were to buy a new car for $35,000 I would have to drive that car for almost 10 years to make it worth my money. If I were to buy a 4-year old car for $15,000 I would only have to drive it for a little over 4 years to make it worth my money. Which is the difference between , making the car 8 years old vs 10. So much deprecation happens within the first few years of the car you can save some money buying used. I would rather someone else pay for the deprecation vs me.
Do you have a banking advisor? Have you ever been influenced to change your actions because of what they said? I have. And it sucked. This is going back a bit but to be honest this put me off of bank advisors. To this day I have a really hard time trusting anything that they say is legit. Did you know that 95% of Canadians who use bank advisors have confidence in their advisor? That is an insane high number. That’s like dictator approval rating high. Not at all saying that banking advisors are dictators however with all the frustrations that we see in the media about shady practices that number seems off to me.
Prioritize your money. To change your money habits all you have to do is understand what is urgent and important for you and then line align your actions up with that. That’s it. Often people make prioritizing out to be more difficult than it really is. Let me show you an example using my laundry situation and to explain the basics of urgent vs important.