Millennial Revolution

As someone who grew up being taught under no circumstances should I ever consider getting a certificate in the trades (apparently, I might as well be a prostitute) or blue-collar work (given that my Dad once worked in a factory, I find that a tad hypocritical, but you don’t question a man who’s survived a famine and 10 years in a labour camp), this reader’s story blew my mind: If BCF maxes out their RRSPs (our American readers, that’s the Canadian 401K), when I plug their numbers into the tax calculator, they’ve got an individual net income of $172,488, which is more than our highest earning year COMBINED! With a savings rate of ($172,488-$31,200)/ $172,488 = 81% (holy shit!), investible net worth of $104,000, and $11,000 in student debt, BCF will be FI in: Since BCF is only 27 years old, BCF can choose to retire at the ripe young age of just 31. Given that BCF’s goal is to have $1 Million in net worth, let’s see how long it’ll take to get to this milestone: Less than 6 years!

Here in Toronto, condo prices have historically been made artificially expensive by real estate speculator/investors who would snap up dozens of units at a time and then turn them into short term rentals. Their entire business model of snarfing up condo units and AirBnb-ing them out doesn’t work anymore. If the price between CONDO and a semi-detached is not that different, who would buy a CONDO? By applying rule of 150, we’d be looking at a monthly mortgage payment of $1133, so that means a condo would need to be priced $330k or below to interest us.

Following my last post on negotiating rent on a new place, here’s how you negotiate rent on your existing place: Do you pay rent on time? That’s why you’re more likely to get a discount from your existing landlord, who knows and trusts you, because they don’t want to take on the risk of a new tenant who might destroy their property or stiff them on rent. getting the best rent for this type of unit in the whole building Also, you can see how much a place like this sells for (so you can calculate the cap rate and thank your landlord for subsidizing your rent): Here’s the script we used to negotiate $1700/month rent (utilities, wifi, and parking included) for a place that normally rents for $2000+/month:

(I have to keep at least 20% in this account to ensure that I hold on to my 3.1% interest rate for my student loan, although that was prior to COVID, and the bank says they’ll So our reader here is a dentist who earns a pretty decent salary in the public sector (which is odd right off the bat), has a pretty sizeable student loan balance, and would “like to think she’s not super effed. Dentist-In-Debt’s car loan will be gone after one year, and her student loan will eventually be paid off in 13 years, so we don’t have to include loan payments in her post-FI spending of $38,832. So based off this analysis, her debt gets paid off in 13 years, and then she hits FIRE just 1 year later at year 14!