tag:blogger.com,1999:blog-41360324806531262162024-08-29T05:45:35.653-04:00Ryan's Money RulesI blog about our money rules. How to make it, how to grow it, and how to keep other people's mitts off of it.Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.comBlogger46125tag:blogger.com,1999:blog-4136032480653126216.post-57506454271643410732016-03-20T22:03:00.001-04:002016-03-20T22:08:29.256-04:00Rule #41 Choose Value over Price
"Price is what you pay. Value is what you get." -Warren Buffet
One thing that has been said to me a few times is: "You can afford it so why don't you buy it?"
My father asks me almost every time I see him about something-or-other he saw on TV. "I don't have cable Dad, I didn't see it." is what I usually say. Dad still doesn't quite understand how we can live without cable Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-6213402269247204282015-03-26T11:07:00.001-04:002015-03-27T08:25:53.868-04:00Lumbergh agrees! The first 40 rules.
Hey, here's the first 40 of Ryan's Money Rules.
Rule #1: The Power of Compounding - Earlier is Waaaay Better!
Rule #2: "Lotteries are taxes on the stupid"
Rule #3: Defining Assets and Liabilities
Rule #4: Never Carry a Credit Card Balance... Ever!
Rule #5: Know your Monthly Expenses!
Rule #6: Forget the Latte, Its the Car/Vacation/Renovation Factor
Rule #7: Maximize income in AFTER TAX Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-57596430886656305802015-03-25T09:29:00.001-04:002015-03-25T09:37:56.052-04:00#40 One week wait time for impulsive purchases over $100About 3 months ago, a friend of mine showed me her new juicer. I had just watched Fat, Sick and Nearly Dead a few days prior and I was feeling all jazzed about juicing and wanted to see one in action. It looked a bit like a mini rocket ship, all stainless steel and fancy-like. That night, I went home and fantasized about what a juicer would look like in our kitchen. I Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-77959801005280648642014-11-04T10:53:00.002-05:002014-11-04T11:18:37.262-05:00#39 Adopt an Entrepreneur/Investor mindsetHaving worked in the oil patch for a decade, I know quite a few wealthy people. My father asked me the other day how most of my wealthy friends made most of their money. My response was that the overwhelming majority of the wealthy people that I know, became wealthy by either starting a business or by taking a financial interest in a company by buying or owning company shares. IRyanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-42706022536828385462014-10-30T14:37:00.001-04:002014-11-01T09:59:26.923-04:00Dividend income growth... 16 months in review.If you follow any of my previous posts, you know I am a believer in dividend growth investing. We've consistently been able to achieve an increase of our portfolio's annual dividend income since we started using this strategy with the lowest annual portfolio dividend income increase of approximately 5%. We grow our dividend income through dividend reinvestment, new monies added to theRyanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-89020286965574620032014-10-28T12:39:00.001-04:002014-10-29T18:48:21.707-04:00#38 Use good debt wisely, get rid of bad debt completely.
Most people have some form of debt. Credit card debt, student debt, mortgage debt, car loan, family loans, investment loans, payday loans, rotating lines of credit, and consolidation loans are probably the most common types of debt. People typically use debt to buy something when they don't have the money for it at that given moment in time. We as a society don't often save Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-21752945288718143002014-06-17T09:59:00.002-04:002014-06-19T10:37:54.211-04:00Buy vs Rent. Why we're okay with renting today.
Conventional Wisdom: "Renting is pouring money down the drain"
We've rented a number of places, we've owned a few homes and we've speculated on a few property flips. In two weeks from now we will be back to renting a home rather than owning one. Now many people may assume that we rent because we don't have the money for the downpayment or that we can't afford the monthly Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com3tag:blogger.com,1999:blog-4136032480653126216.post-4573144765797386932014-05-27T11:50:00.002-04:002014-06-25T22:37:21.538-04:00#37 "Hedge" against price inflation by investing in staples you use.
From Investopedia: Definition of 'Hedge'
"Making an investment to reduce the risk of adverse price movements in an asset..."
People like to complain about gasoline prices. They also like to complain about bank fees. And how about cell phone fees? Yep, people keep complaining about phone fees. Energy costs such as electricity generation and delivery, natural gas costs Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-13814049763872583462014-05-26T13:03:00.005-04:002016-06-16T07:54:56.455-04:00#36 Owning a good company is better than working for one.
"Investors should be rewarded for actually owning companies and gaining returns on their investments." - Mark Cuban
My father and I were discussing wealth creation the other day and he asked whether I knew any multi-millionaires. Having studied and worked in the Oil Patch in Calgary, I've come to know personally a number of wealthy people with very high net worths, some well into the 10'sRyanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-39392823685781194162014-02-27T12:10:00.000-05:002014-02-27T14:12:36.747-05:00Rule #35 The Main Goal is Financial Independence, Not Retirement
"Let your money work for you. You don't work for money. That is exactly what Financial Freedom is..."
-Manoj Arora, From the Rat Race to Financial Freedom
My father asked me last month if I was retired for good. Recently I started using the term 'retired' when people ask me what it is that I 'do". I find it hard to answer the question to most people as I am not employed and I Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com2tag:blogger.com,1999:blog-4136032480653126216.post-74890617936697962462014-02-08T10:40:00.002-05:002014-02-08T12:32:00.759-05:00Rule #34 Find Yourself a Money Mentor.
"Try never to be the smartest person in the room.
And if you are, I suggest you invite smarter people …
or find a different room." - Michael Dell.
I never had a Money Mentor. I've had a handful of technical and career mentors throughout my working career, some of whom have given me financial advice, but I've never had a formal mentor specifically for money. By Money Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-9942498539907154862014-01-10T13:11:00.001-05:002014-01-10T14:17:42.161-05:00Rule #33 Don't spend all of that salary increaseOne thing that people entering the workforce often do is adjust their lifestyle upward to match their paycheque. They live at a level they can sustain with their income and as they receive pay raises they typically adjust their lifestyle incrementally further upward. This presents itself, often unnoticeably, in the form of bigger houses, newer/fancier cars, eating/drinking out more, Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-13815209570478005832013-12-17T13:09:00.001-05:002013-12-17T13:49:26.395-05:00Rule #32 Take Full Advantage of Employer Matches.
"Take free money." -Suze Orman
"Free is better than cheap." -me
There are two kinds of matches that Kim and I take full advantage of when available: 1. Company Share Purchase Matching and 2. Pension/RRSP Contribution Matching. They are a different from each other, but both involve your employer paying you more than you are already getting paid. Sounds like a deal, doesn't it!Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-64153532928053080862013-12-16T13:11:00.001-05:002013-12-16T13:26:23.467-05:00Rule #31 Out of Chaos comes Big Opportunities. Be Ready!
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” - Warren Buffett
Remember the Financial Crisis in 2008-9? The financial world was going in the crapper, housing values were collapsing in the US, mortgage defaults were on the rise and bond markets were shakey because of sub-prime loans bundled together and sold to investors. Lending institutions were Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-69364099717272684072013-12-03T09:14:00.001-05:002013-12-03T10:08:24.123-05:00What do I invest in?I've had a few people ask what specifically do I invest in. Here is my portfolio make up in a nutshell (you can click on the pictures to enlarge them). The pie charts are a combination of Unregistered, Registered and TFSA accounts. My US holdings are all in registered accounts to avoid the withholding tax and higher dividend taxation rates and my CDN holdings are mostly in my Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-78374261222298018712013-10-03T14:46:00.001-04:002013-10-04T14:03:56.474-04:00Let's Review... Ryan's First 30 Money Rules
"Nobody is more vested in my family's financial future than me" - me
So I've managed to get the first 30 of our money "Rules" written and posted. These rules have helped us build our wealth, eliminate bad debt and take control over our finances as we move toward financial independence. I have a bunch more that are in the chutes that I will post in good time. Until then have anotherRyanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-27314079175568885312013-10-03T14:12:00.001-04:002013-10-03T14:37:07.287-04:00Rule #30 Live where you Work, Shop and PlayThere is a conventional wisdom these days that says "Buy a house in the suburbs of a city because you get more house, sometimes more yard, and the taxes are lower. The nice neighbourhoods in the inner city tend to be more expensive and people practically live on top of each other." When it came time for us to buy a house, we only looked in the inner city with the main (but not only) Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com3tag:blogger.com,1999:blog-4136032480653126216.post-22437501968224628712013-05-30T10:13:00.004-04:002013-05-30T10:38:12.239-04:00Rule #29 Talk about money. Ask about money.
"Money, like emotions, is something you must control to keep your life on the right track."
- Natasha Munson
Its funny how people refuse to talk about money. I never really understood why money got grouped in with religion and politics as things NOT to talk about when at a dinner party. And by talking about money I don't mean comparing paycheques, bank account balances, or hourlyRyanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-70614227497490263862013-05-22T10:10:00.001-04:002014-02-27T14:25:15.434-05:00Rule #28 Pay No Bank Fees.
Nickel and Dime: verb. To drain or destroy bit by bit, especially financially
People complain about banks and their fees ad nauseam. You know what I mean.. "The greedy banks are being greedy." "I'm getting screwed by the banks in fees." Blah blah blah. But these folks do very little to change the fact that they're paying all these fees.... You know what I call these Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com2tag:blogger.com,1999:blog-4136032480653126216.post-62710159724933782462013-04-04T13:37:00.000-04:002013-04-04T13:47:05.825-04:00Rule #27 No Financial Advisor.
”Everyone has the power to follow the stock market. If you made it through fifth grade math, you can do it.” – Peter Lynch
We had a financial advisor that came highly recommended from a fairly high-net-worth friend of ours. We gave him a try for a couple years and it didn't work out. We lost significantly more money than we made, and then on top of that paid this person 1.5% of our Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-32123344195093807472013-03-05T14:43:00.002-05:002013-03-05T15:35:28.223-05:00Rule #26 Create/Develop Multiple Income Streams
"It is better to have a permanent income than to be fascinating." - Oscar Wilde.
What would you do if you lost your job? Do you have any additional monies coming in from other types of income that could help you get by until you get a new job? I used to work in the resource sector, and if you know anyone who works in that sector, you've probably heard that it goes through violent Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com1tag:blogger.com,1999:blog-4136032480653126216.post-51488982383675103122013-02-15T14:28:00.002-05:002013-02-15T14:29:42.287-05:00Rule #25 Live like a student as long as you can.
"The essentials of life are cheap. Only the luxuries are expensive." - Ron Muhlenkamp
Remember when you were a student at college or university? Remember how much fun it was and yet how broke you were? You didn't have a luxurious place to live in, or a car, and you walked to everything, or maybe skateboarded everywhere? The TV you had was the TV the previous tenants left behind because itRyanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com1tag:blogger.com,1999:blog-4136032480653126216.post-18280878648420970832013-02-14T10:43:00.002-05:002013-02-15T12:41:54.186-05:00Rule #24 Borrow money for things that appreciate, pay cash on things that depreciate.
"The price of borrowing money is interest—and worry. Keep all borrowing below the worry point and don’t borrow to buy things that depreciate; you will lose on both ends." - Ron Muhlenkamp from his Basic Maxims I Want My Kids to Know.
Cars, vacations, iphones, new bicycles, dinners out at restaurants etc... all lose their intrinsic value the second they are purchased. Yet people put Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com5tag:blogger.com,1999:blog-4136032480653126216.post-28872263955621788862012-12-05T11:49:00.002-05:002013-03-29T17:11:48.136-04:00Rule #23 Automate all Monthly PaymentsI have no idea when our bills are due. I know they are due sometime during the month, usually near the end of it, but I dont fuss with checking the exact due dates anymore. We have automated all but one of our bills. When I say automated, I mean that we have set up an automatic payment either through the company itself or through our main bank to ensure the bills are paid on Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com0tag:blogger.com,1999:blog-4136032480653126216.post-47738730811182044222012-12-04T10:59:00.001-05:002013-03-29T17:13:51.277-04:00Rule #22 Pay your bills on time.. Every Time!
Want to know how to sabotage your finances in the foreseeable future? How's about screwing up your credit rating, while at the same time building up a deadbeat image of yourself? Yeah, thats one of the worst things you can do.
It's funny how people do silly things that sabotage their financial wellbeing ... and by funny I mean strange. An example of this is voluntarily harming Ryanhttp://www.blogger.com/profile/09065200903194364390noreply@blogger.com1