The Money Mustache Community
Around the Internet => Antimustachian Wall of Shame and Comedy => Topic started by: Gerard on July 03, 2012, 08:14:45 AM
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Evidence that money-stupid happens at the bottom of the pay scale, not just at the top:
http://www.boomerandecho.com/can-you-live-on-1065-a-month/
Dude spends more than he earns just on his housing, but is more concerned about how he should invest his lump sum than he is about getting those housing costs down.
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I know housing is expensive in Canada, but I don't understand why he "can't" buy a house with his $125,000. Can he move to a small town?
Also, is it possible for him to get a place with roommates?
I know this is moot as he'll never see this, but it's still frustrating to watch.
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there are very few places that he can buy a house for $125,000 and find work. That amount would buy you a small empty lot in my town and we're not huge and booming by any means. Just around the corner from me there are some new 2 bedroom townhomes for sale starting in the $250,000 range. In parts of the country if he wants to live off in the boonies 2 hour drive from the nearest gas station then he could find something but what is he going to do for income? Since the article states that he gets prescriptions and groceries delivered and has no vehicle he really can't move anywhere that things are cheap and buy. I'd guess his best bet is to move to somewhere smaller and rent a less expensive apartment. It sounds like he gets all of his income via CPP and support so that can arrive anywhere. I'd assume he can find a town and rent for cheaper then $1125 a month. I did it for half that 10 years ago in university.
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there are very few places that he can buy a house for $125,000 and find work. ... but what is he going to do for income? ... It sounds like he gets all of his income via CPP and support so that can arrive anywhere.
Seems like you answered your concerns later in your paragraph.
He doesn't work, just gets gov assistance, so he should be able to move to a cheaper COL place.
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I dunno, is this anti-Mustachian, or entirely-Mustachian?
"If Wayne stays in his current rental, he’ll need somewhere between $375 and $475 a month to top up his income and cover his monthly expenses."
$125k @ 4% SWR = $417/mo.
The common Mustachian advice is that if you have enough saved that a 4% withdrawal rate can cover your expenses, you should already be retired, and don't need any more income. Seems like his financial adviser was being quite Mustachian. What am I missing?
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I think the big thing here is someone who's getting to be quite old (30 years of marriage puts them at 48 at the youngest) and barely has enough to keep them at a minimal standard of living ie food,meds and a roof over their heads.
Yes I think we're in agreement, his best option is to rent somewhere cheaper that still has delivery of food/drugs service.
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Why is a single guy renting an entire townhouse. Don't they have 1 room studio apartments in Canada?
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Hey everyone, I saw the link coming from the forums here and thought I would check-in. Wayne is living in Toronto, which is the second highest cost of living in the country. After a few emails back and forth he understands that he'll need to move to a cheaper place and has been searching on Kijiji for listings that can still meet his needs.
Honestly, I think he was in a bit of shock after separating from his wife so he just grabbed the first available place. Now he realizes (I hope) that his rent is much too high and he'll need something a lot cheaper. Then his $125k can go a long way once it's not supplementing his monthly cost of living.
I'm new to the forums and checking things out. I love the blog and can't believe how active the forums are over here. Great stuff!
Robb Engen (I'm the Echo from Boomer & Echo)
www.boomerandecho.com (http://www.boomerandecho.com)
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After a few emails back and forth he understands that he'll need to move to a cheaper place and has been searching on Kijiji for listings that can still meet his needs.
Always nice to hear follow ups to stories like that. Thanks for sharing, and welcome!
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After a few emails back and forth he understands that he'll need to move to a cheaper place
That's reassuring to hear. To turn my snide thread title into something positive: switching the focus from investment returns to expense reduction will do Wayne so much good that he'll be a walking advertisement for MMM/ERE type principles.