Wealth is a Snowball, not a Progress Bar

Everyone knows the loading bar whether it be from video games, a video buffering or a loading screen on a website. They help to manage expectations while giving a visual update for the person waiting to help with patience. Along with the progress bar there is the ETA (estimate time of arrival) or how long the expected wait is to be. Now loading bars and ETAs don't move at a constant rate and they can be quite erratic, but we each have a progress bar in our lives whether we track it or not. Our wealth.  

Are Billionaires Charitable, or Do We Just Like to Complain?

Everyone likes to be charitable from time to time, especially around Christmas, but billionaires tend to get a lot of attention and scrutiny about their donations. Is it fair? Jeff Bezos in 2019 donated 98.5 million dollars to help the homeless. His net worth as of writing this is 241.1 billion USD which equates to 0.041% (0.00041) of his net worth. For an apples to apples comparison the average Canadian's net worth is $519,700 which would be like donating $213.08 to the homeless. A bit of money but not extremely charitable at all. If you look at the picture below yes, if you compare to income of $50,000 that would equant to $20.5 (he is worth a lot more now (ratios))     

  

Would you Rather?

Starting Young

When I was in high school, my friends and I had a knack for making dumb bets. It’s probably pretty standard behavior for teenage boys, but for us, it was a mix of amusement and opportunism. We’d bet a dollar on dares like licking a railing or eating a bug. To us, it was cheap entertainment, but for the person taking the dare, it was a quick way to earn a dollar—enough to help pay for a pop or lunch.

Back then, in 2005, the minimum wage was $7.45 per hour, which breaks down to about 12.4 cents per minute. Completing one of these silly dares in seconds could earn the equivalent of eight minutes of work. If you were to scale that up, you’d be earning $60 per hour—a pretty decent rate by anyone’s standards.

This led me to think more deeply about trade-offs, which are at the heart of every decision we make, especially when it comes to money.

Cell Phone Plan Optional?

Cell phones are everywhere. You cannot find anyone over the age of 12 that doesn't have one constantly on their person day and night. Most people don't actually use their phone as a phone. Cell phones are just an overloaded computer in a nice slimmed down format. Calling a cell phone a phone is a bit of a misnomer and really diminishes the full potential of the device. Here is a small list of things they are capable of.

TFSA: Taking Control of Your Earnings

Taxation 

Everyone loves taxes, right? The system that slices away a hefty chunk of your paycheck—often around 30% or more of your hard-earned income. While taxes fund essential public services, it’s understandable to want to keep as much of your earnings as possible.

The wealthy understand this concept deeply. They don't just rely on high-paying jobs; they make their money work for them by investing wisely. Luckily, in Canada, there’s a golden opportunity for all of us to grow wealth tax-free: the Tax-Free Savings Account (TFSA).

The Religion of Personal Finance

Personal Finance as a Modern Faith

To many outside the financial world, personal finance might feel almost like a religion. With its own set of beliefs, jargon, acronyms, and even fanatical followers, personal finance has newcomers to “the fold” and those who have “strayed from the path.” Each group forms tight-knit communities, sharing insights and supporting each other in their journey. Much like those who follow religious teachings, personal finance advocates want to help others benefit from the lessons they’ve learned. But for some, this unyielding devotion can feel overwhelming, which might explain why personal finance can turn people off.

Benefits of Comparison - Net Worth

Comparison is a thief of joy. Generally comparison is looked down upon and for good reason, but a part of me wonders if there is some good that comes from comparison. Growing up going to public school there are many things to compare yourself to. Grades, looks, athleticism, height, maturity, lunches, clothes the list goes on. Now in most circumstances this can lead to anxiety, depression, self consciousness but there can be a positive side to comparison. It leads to norms and leads to social order. If you are too weird you might get made fun of which in turns makes you second guess acting out in the future. Not wanting to stand out, most teens will conform to the norms they see around them. 

Dip up, Don't Dip Down

Unexpected Expenses 

Emergencies happen. Unexpected car or house repairs, job loss, medical expenses can all lead to spending more than what you initially planned. Funerals, weddings, unexpected pregnancies. There are lots of events that can lead to needing to spend more. The question is whether you need to dip up into savings and investments or dip down into debt. If you have a budget you should be saving some amount of money whether it be in a savings account (emergency fund) or investment account. If you are living paycheck to paycheck you are going to have no choice but to dip down into debt. Throw the extra expenses on a credit card, line of credit, payday loan store or maybe even the bank of mom and dad. 

Ikea Cupboards TV Stand with Shiplap Fireplace

Sometimes you run out of projects so you put in Ikea Kitchen cabinets for the TV stand and a fireplace. Costing around $3,500, it was quite expensive but it was a lot of fun and brought me joy. The fireplace is great since the basement can be cold and a fireplace looks a lot better than a space heater. I didn't want the TV above the fireplace since the ceiling is under 8 feet tall and it would raise the TV quite a bit. I hadn't seen many entertainment walls with the 2/3, 1/3 split so I thought it looks unique.  Hopefully this will inspire someone to do their own entertainment wall. 

Baby Steps, not Giant Leaps

Budgeting and Dieting

Budgeting is similar to dieting in that many people believe they will suddenly have large amounts of motivation they've never shown before. It’s easy to think that change will happen overnight—maybe at the strike of midnight on New Year’s Eve. However, sudden, drastic changes often lead to burnout. Going from never working out to working out daily is a huge shift, requiring time you’ve already spent elsewhere. Going from eating cheeseburgers and pizza to 800 calories a day of salads is extreme and a recipe for failure. When the novelty and motivation wear off, it's easy to say, "I missed my workout today, so why bother with the rest of the week?" Similarly, you may think, "I ate fried chicken—my diet's ruined," and end up bingeing on pizza. It's the same when it comes to budgeting. If you aim too high too fast, you're setting yourself up for failure.

Built-in Garage Shelving

Garage Storage

You can never have too much storage in a house, and garages are ideal for storing extra items. However, much of the garage's square footage is occupied by vehicles, making wall space valuable. If you have a smaller garage like I do, placing storage along the walls can make it tricky to get in and out of your car. But there's one often overlooked area for storage—the ceiling.

Now I have never built shelves before but it was pretty straight forward. Just bought some 2x4s and started securing. Now you will need some basic tools and minimal supplies but this is a simple DIY. 

A Look at Wealth Inequality Through the Lens of Time

Imagine a world where money doesn't exist, and instead, time is the currency. The 2011 movie In Time gave us just that—a society where the rich live forever and the poor are literally dying as they struggle to earn more time. While our world doesn’t operate this way, there’s a striking similarity: the wealthy do seem to have more time. Not because their days are longer, but because they have more free time. And just like in In Time, the poor are constantly hustling, trading away their most valuable asset—time—for money.

Ajusto: Can Good Driving Really Save You Money?

Ajusto

Insurance is the worst and car insurance is one of those expenses that every driver has to deal with. It’s essential for protecting yourself, your vehicle, and others on the road. But with rising premiums, finding ways to save money on car insurance is a priority for many drivers especially with rising cost of living. That’s where programs like Ajusto come in—offering the potential for lower premiums based on your driving habits. Its only available under Desjardin but I was able to sign up for the program through my insurance The Personal.

The Cost of Convenience: Are You Paying More for Less?

Convenience: Are You Paying More for Less?

In today’s fast-paced world, convenience is often king. From grabbing a quick snack at the corner store to selling your car with minimal hassle, we’re willing to pay more to save time. But that convenience comes at a price—sometimes a steep one. If you take a closer look, you’ll find that the easier an option seems, the more likely you are to pay extra for the privilege. Let’s break down some examples.

Credit Scores: Not as Important as You Think

Credit Scores

It’s that number we’ve all been told to stress over like it’s the key to unlocking life’s greatest achievements. But here’s the truth: unless you’re about to finance a house, your credit score is not as important as you might think. The financial world makes a big deal out of it, but for most everyday situations, you can manage just fine without obsessing over it. You know what is way more important than your credit score, your bank account balance. Who cares what your credit score is if you are paycheck to paycheck.

The Nightmare of Car Shopping

Vehicle Purchase 

Buying a vehicle is the second largest purchase after buying a house. They are hugely expensive, taking years to pay off or save up for. Worst of all, for both house purchases and vehicles they require haggling which can cost thousands more than needed along with stress and anxiety. Overpaying for food and souvenirs on vacation is one thing but overpaying on your largest purchases can set you back years. Unlike the price of milk and gasoline it is extremely difficult to know the true market value of a home or vehicle. The stress of haggling with car sales reps or random Facebook Marketplace sellers can be maddening.

Saving Early, Avoid Student Loans

Being young there is so much potential and opportunity. Universities and colleges to pick and careers to consider. But there are also a lot of bills and expenses ahead as well. University can be $28,000. New vehicles $35,000. Down payment for an average $400,000 house is $20,000 for 5% down not to mention the other $380,000 still owed. Vacations and trips. Life is expensive, but luckily being young has the most valuable assist. Time.     

Poor Man's Butter Chicken

Poor Man's Butter Chicken ($3.75 per)

Butter Chicken doesn't have to be ordered from your local Indian restaurant and it can still taste great while barely hitting your wallet. Cooking can be overwhelming and feel not worth investing 30 minutes plus just for a meal. Try this quick, inexpensive and easy recipe that feeds 2. 

• $3.75 per serving
• 20 Minute cook time

5 Ways to Explode your Net Worth

Net Worth

Net Worth is normally associated with those over a million dollars, but it applies to everyone regardless of worth. Whether you are at $100,000 or -$100,000 it's important to know and track. It is a great indicator of financial health and works as a guide and a compass. You can have a detailed budget, but if your net worth is going down month after month clearly some numbers on your budget are not accurate. There are a few ways to explode your net worth and one of the quickest and easier ways is to simply track your net worth with a Monthly Report. 

DIY - How to Build Under Stairs Playhouse

How to Build Under Stairs Playhouse

Sometimes in life you find yourself with space that isn't very useable. Hard to get access too and need to crawl inside to get things. You could just ignore it, or you could turn it into a fancy white shiplap playhouse. You might view it as a complete waste of money especially when kids grow up, but eventually, hopefully, those kids will have kids who can enjoy it. 

DIY - Installing Built In IKEA Recessed Bookshelves

Installing Built In Recessed Bookshelves

Sometimes you find little crevices when doing home improvements. Now you could just wall this up with drywall to get a nice smooth wall, but that wouldn’t be very fun or exciting. Installing a recessed bookshelf helps to utilize space that would be otherwise wasted. Once it's finished it will leave others wondering how it fits into the wall. Here is 5 easy steps to make it happen.

Saving

 

Saving - 

Financial freedom and independence is impossible without saving. You cannot invest if you do not save and if you don't invest you will never build wealth. You also will never save without budgeting so its really all interconnected. Finding savings in your budget will help to save more. Finding better deals or spending habits will increase savings. A dollar not spent is a dollar saved and saving is all about stashing away money in our literal or figurative piggy bank. 

Debt

Debt - 

It can be hard to go anywhere but down when drowning in personal debt. Debt payments can eat up your paycheck leaving you with pennies or worse reaching for more credit to make ends meet. This can make a debt spiral especially with rising interest rates. Digging your way out of debt can feel like walking around with a ball and chain, making any financial movement slow and arduous.  

Recipes

Food Expense - 

The amount of money spent on groceries and eating out can be the third largest expense after housing and transportation at around 10 - 15%. This makes it opportune for cutting back and saving. The obvious cut is eating out which can cost 40% up to 200% more. Fast food is now over $10 a meal with sit down restaurants edging close to $30. Cooking at home per meal is around $5 per meal but they can vary to very low levels like a dollar a meal. 

Doing It Yourself

 

The Benefits of Doing It Yourself: A Budgeting and Saving Money Guide

It is easy to want to outsource home improvements and projects in the name of convenience, however with some elbow grease, tackling a job yourself can save money and teach you valuable skills. 

Coaching

Financial coaching is more than lectures on spending better. Its support when times get tough and someone to bounce ideas off without judgement. Its someone holding you accountable to make sure your goals are being met. According to ChatGPT 80% of coaching clients say that they improved in the area they were working towards. Coaching can be for a day, a week, a month or even years. It is customized to the situation. Simply looking for a budget spreadsheet to get your started, that is still a form of coaching. Whether you want a nudge or someone to hold your hand the entire time coaching can help anyone.

Budget to Wealth's 7 Baby Steps

Dave Ramsey is a big name in the personal finance world and he often preaches of The 7 Baby Steps to take control of your money. I thought I would take a shot at my own 7 Baby Steps.

A Potential Solution to the Canadian Housing Crisis

A Potential Solution to the Canadian Housing Crisis

The Canadian housing market has become increasingly more unaffordable in the last 20 years making it harder and harder for first time home buyers to break into the market. In big cities like Toronto and Vancouver, average homes have cleared a million dollars. The average monthly payment based on the assumptions of a 20% down payment, a 30-year loan term, and a 5% annual interest is over $5000 a month. Given the average wage of $80,000 that is around 80% of income just for mortgage payments alone. 

Toronto: Approximately CAD 1,174,000 Average Home - Average Wage $78,000

Vancouver: Approximately CAD 1,348,000 Average Home - Average Wage $82,000

 

 

Living in Poverty

They say money can't buy you happiness, but according to the research that is not completely true. Research indicates that money significantly impacts happiness up to a certain income level, where basic needs and security are met. This threshold varies by location but is often around $75,000. This tweet highlights the difficulties of living on the lower end of the income spectrum and how it can affect mental health. 

To Rent or to Buy

The Problem with Renting

There seems to be lots of shame with renting and I think it's valid. Rent has its place but, there are only a few reasons to rent.

1. Missing Down payment - You don’t have enough money for a down payment

2. Travel - You travel lots for work and renting is not financially reasonable

And that's it. 

Budgeting is Uncomfortable

Budgeting is like working out or dieting. It's not meant to be easy. When working out your body grows stronger with weight and resistance. Without resistance you will naturally stay at you baseline not growing stronger or fit. When dieting if you continue to eat at your baseline your weight will not alter. Change takes work. It takes effort. You cannot expect to gain muscle or lose weight without substantial shifts in your day to day life. If it was easy to gain muscle it would not be a billion industry. Constant visits to the gym or adjustment in meals. Budgeting takes similar effort. Everyone has their own baseline on budgeting with their typical spending just like they have their typical eating habits and workout routine or lack thereof. Baselines are comfortable. It is the natural state of all of us. In order to move one’s baseline, serious thought and effort is required. Step one is making a goal just like anything in life. 

Budgeting is like dieting, if you aren’t uncomfortable, you are probably doing it wrong. 

Don't Buy Stuff You Cannot Afford

SNL did a great skit 10 years ago with sage advice that still holds up extremely well. It is sort of sad that credit card debt or just consumer debt in general has gone up per person. It is never a good idea to have any credit card debt so it's fascinating that even with PSA like this SNL skit there are still individuals that don't understand the issue with over spending. Enjoy 

The Good, Bad and Ugly of Temu

Temu 

It has a bit of everything, but for insanely low prices and so many pop ups you want to puke. It resembles a slot machine with its bright lights and constantly moving tiles. It even resembles old Facebook with its farm games and constant nagging to invite your friends to the app. It has a lot to hate on, but it also gives you access to extremely affordable albeit questionable quality goods. When used correctly, Temu can be a tool in affordability to fight off rising prices, when used incorrectly it can be a vortex of consumerism.   

How Amazon Sneaks Extra Costs

How Amazon Sneaks Extra Money for You

Amazon is amazing! I am a huge fan. A few points and clicks and products will arrive at your door. The convenience is unparalleled, but Amazon is not your friend. It is a company that wants to maximize profit with a few sneaky tricks up its sleeve: 

Why Eating Out Can Be Better Than Cooking at Home

 

Eating Out vs Cooking at Home

I recently saw a post about saving money by making a sandwich vs just buying a sandwich and I think there is some truth to the post. I used to work on the road quite a bit and buying a loaf of bread, condiments, cheese, lettuce, tomato, deli meat really adds up. Now obviously if you total all the sandwiches created and if the condiments and veggies were completely utilized then it makes financial sense to make at home. But when I was traveling on the road it was difficult to store condiments and vegetables. It was nearly impossible to utilize even half of the food before I would have to throw it out or I would just lose it in a move. This is the same problem with salads have multiple dressings that never get finished. Simply buying a bag salad that is fully utilized is more cost effective. I crunched the number while on the road and just decided it was best to simply eat out at the cheapest restaurants vs buying groceries.      

Birthday Free Perks

Birthday Free Perks

I recently celebrated a birthday and took the day off work. Instead of going shopping and eating at a fancy restaurant I went around town collecting free food like Pokémon. Businesses love to help you celebrate the day of your birth with free giveaways in hope of having you grace their business on your special day. This can be a lot of free food when you actually sit down and compile a list of all the restaurants that have an offering. There are so many offers that it would take all day to actually redeem them all. 

The Financially Responsible Decision

Making financial decisions is difficult. Treat yourself or save for the future? The financially perfect decision between spending or not spending is always not spending. Zero extra spending on even a simple chocolate bar or drink to help you get through the day. No spending on extra clothes or the latest tech gadget. If it is unnecessary in the slightest the financial responsible decision is No. This sort of decision making would get you to your financial goals real fast but deprive yourself of many of life's simple joys. Never eating out, never traveling, never buying luxury items, never having any fun. The FIRE (Financial Independence Retire Early) movement is a take on this with spending drastically reduced. When should you make the financially responsible decision and when to spurge is a constant battle, but we should always seek to be as educated as possible on our financial decisions.

Why Going to the Movies is Financially Irresponsible

Why Going To The Movies is Financially Irresponsible

Movies are a fun date night, family event or escape with friends where you can get some popcorn and snacks and get lost into a world for a few hours. This experience has gotten increasingly expensive meanwhile the comparable at home experience has gotten increasingly better. Televisions and projectors are at all high time affordability and surround sound speakers are more accessible than ever with simple sound bars alone drastically improving sound quantity. Sofas are more comfortable than sticky movie seats, food can be whatever you’d like and much cheaper. The competitive advantage of the movie theater experience is shrinking. Yes theaters have improved their seats and nothing can beat their popcorn machines but nonetheless, the gap is closing. 

Cost of Simply Existing

 

Cost of Existence

Growing up when I didn’t finish all my dinner my parents would mention how there are starving children in Africa, so therefore I should finish all my food. Well they were right as according to World Bank blogs 85% of Africans live on less than $5.50 per day. That is not a lot to live on, but that is their cost of existing. In Canada we spend quite a bit more, but still how much someone spends per day can vary widely. Some live lavishly and some live only on the necessities. Even if you only spent $5 a meal, $15 a day for food you have already surpassed 85% of African expenditure, but humans need more than just food. We need shelter, water, and electricity and have other costs like internet, subscriptions, memberships, transportation and more. This all adds to our cost of existence.

The Problem with Subscriptions

Subscriptions are unlimited. They can be used 24/7 or not at all and the price is the same. Life on the other hand only has 24 hours in a day and 168 hours in a week. With sleep and work taking up most of our time we are normally left with just a few hours in the evening for our unlimited subscriptions. I personally have around 2 hours each night to pick an activity or subscription. Whether it be Netflix, Disney plus, Amazon Prime, Crave, or even work out apps Down Dog, Peloton, CENTR and Apple Fitness. You can only use 1 at a time and you only have limited time to use them. Some subscriptions can be used while doing other things like music apps (Spotify and Apple music) so there is a bit more opportunity to get your money’s worth but most are single use.

 

True Value of Money

Money is only worth what you can purchase with it. Money is worthless unless you spend it. Its value lies in what it can be exchanged for. If someone gave you a million dollars but under a condition you could never spend the money, it would be completely worthless. Maybe you could fold it into purses or clothes like they do in Venezuela, but it most likely will be of no use to you. (Consumer price inflation in Venezuela averaged 9,032.8% in the ten years to 2022 making the cash more valuable as a material then a currency)

Financial Literacy Test

I recently was watching a Vox video on YouTube and it discussed a three question quiz on Financial Literacy. https://www.youtube.com/watch?v=0uvurQcj0fs

Treat Yourself and Night Guy

 

Treat Yourself

There is a classic scene from Parks and Rec where the characters Danna and Tom once a year spend a day treating themselves. They buy clothes, fragrances, massages, mimosas and fine leather goods. It's the best day of the year for them. We all love to treat ourselves from time to time, which is actually good and healthy, but sometimes we like to treat ourselves all year long with food delivery, clothes, and expensive drinks. We want a life of luxury, all the time, which costs a lot of money. Money is to be enjoyed and we never know how much time we have, but there is a trade off each time we spurge. We could be costing ourselves more money than we realize.

Why 6% + 6% Doesn’t Equal 12%: The Truth About Compounding Interest

Interest

Ever since I was a child I have found interest to be fascinating. Gaining money passively without any work is quite the concept but calculating the value of interest can be quite confusing to many since it's not simple adding. Compounding interest makes calculating value even more difficult to deduce and measure since differences between interest rates get stretched and exaggerated over time. 

True Indication of Wealth

Stereotypical Wealth

Most would think of a large house and fancy cars. Vacations 6 times a year. Eating out at 5 star restaurants while wearing Armani and owning a yacht. Well, yes and it is definitely Wealth and a lot of it at that, but that is the top 1% and not remotely achievable to the average person. But there is another type of wealth that I would argue is even better than all the Bugatti’s in the world and achieved by the common folk.

Skipping Starbucks = Down Payment?

Skipping Starbucks

I recently saw a post about how if you skipped your Starbucks order you still wouldn’t have enough money for a downpayment so order away. I find this to be incredibly horrible advice. It's like saying, “If you cannot save for the most expensive purchase of your entire life by cutting out a single aspect of your spending, then don’t try at all”. It is so short sighted and overly simplistic. But maybe Eric Hoke is being sarcastic, who knows.     

 

Favourite Content Creator: Two Cents

 

Two Cents is a YouTube Channel that focuses on personal finance for millennials and Gen Z. It has videos on Investing Basics, Behavioral Finance, Smart Shopping, Career and Work, Retirement and Family Finance. The hosts are a married couple Philip Olson, Julia Lorenz-Olson while being directed, produced, edited, and animated by Andrew Matthews, and Katie Graham. It is family friendly with great visuals and straight to the point with videos being less than 10 minutes. I highly recommend it if you are interested in video related content that is focused on financial literacy. The hosts are down to earth and not preachy making you feel bad for your lack of knowledge. It is explain simply so even someone with very basic knowledge can follow along. Check it out 

 

If you found this helpful and would like help budgeting or investing please email me at TaylorMckeeCoaching@gmail.com

"Free Money"

"Free Money"

Nothing in life is free, but there are some things that close or at least feel free. Between getting deposits back, money equivalents, subsidized service, easy side gig, unlocking trash to cash and using coins. There are many ways to get little advantages of "Free Money" whether real, or psychological.   

Embrace Being Poor

Embrace Poverty
Now I am saying this tongue-in-cheek because the title is a bit hyperbolic but there is something to be said about embracing your financial situation. In life we like to put on a face or display that we are doing better than we are. Social media is a big culprit for this. We want a nice car, fancy phone, luxury clothes, dine at new restaurants and travel to showcase how well we are doing in life. But some of us are lying. We want elevated status when we cannot afford it. I see Tesla Model 3s in my community parked in front of a townhome. There is nothing wrong with wanting a Tesla, I would love one. But a model 3 averaging around $56,000 I am sure it is stretching the budget. Maybe that is their priority in life and that makes them happy, but I would assume it would be financially difficult.  

Investment Portfolio

Portfolio
A client of mine asked me what I would invest in, if I had $100,000 given to me. I think that is a great question, but whether the amount is $100, $1000, or $100,000 it would all be percentage based. Now I am not a professional investor and I lean quite heavily to be risk averse, so if you are more risky I recommend not following this advice, but here is how I would break it down.