Why "a Million"?

December 5, 2008

Why do I set my goal at one million? Because I’m expected to live over 100.

If I’m lucky, I could earn about 8% on my investments. One million dollars yields $80,000 annual income. Take away $20,000 or so in tax, leaving me with $60,000.

$60,000 annual income offers a comfortable life for frugal people. But one must factor in inflation and economic uncertainty. What if there are more recessions? If I’m lucky not to lose most of it, I could get 2.5% earning from interest – which gives me about $20,000 a year after tax. What if I get really sick? What about children?

One million is really not a greedy goal. It was actually something I heard on a business program. It is a general rule of thumb that most people would need one million to retire.

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Who? What? Why?

December 4, 2008

Hello! I’m Citizen A! I’m a single woman in her early 30s living in the Greater Toronto Area.

Money has never been a problem to me. I don’t have debt, don’t have children or sick parents to care for. I never have to work too hard in my life. I’m the “rabbit” in the story, if you will.

As you all remember, the turtle won the race. Lately, my friends are all moving on to their next stage in life – getting married, have children, going to grad school, buying their first homes… Oh no! I felt asleep! I have stayed at the same place for the past 10 years!

I better start now. I am going to stop procrastinating and start making money, start saving! Blogging would probably help me overcome my procrastination. I will be using this site to anonymously blog about how much money I have, what I spend on, my penny pitching and most importantly, about happiness-money balance.

I’m interested in what other people do with their money. Please do email me, or comment on my posts. Do correct me when I make a mistake, even if it is just typo. 😉

*note: take my advice at your own risk, as I have no background in finance.