Personal Finance

*OFFICIAL* Ask Me Anything About Living Paycheck to Paycheck!

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  • Sep 15th, 2010 8:35 am
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Sr. Member
Sep 28, 2008
571 posts
53 upvotes

*OFFICIAL* Ask Me Anything About Living Paycheck to Paycheck!

Hello everyone!

I noticed lot of members here have a great amount of knowledge about making proper savings plans, when to contribute to TFSA as opposed to RRSP's, etc. Although that is one train of thought on personal finance, it is by no means the only one, and I feel like I could share a lot of my knowledge on how to live paycheck to paycheck. You may not think I have the credentials to be giving people advice on how to remain financially neutral, but I would like to inform you that not only do I have over 13 years of living paycheck-to-paycheck (or P-2-P as we refer to it in the biz), I am also a 2nd generation P-2-P'er.

Common questions you might have:

- I will be making more money every year; will I still be able to live paycheck-to-paycheck? (Spoiler alert: You bet!)

-What are some common impulse purchases I can make to ensure that next month is just as difficult as the last one? (When in doubt, eat out!)

-How can I reduce my spouse's interest in our finances to the level that is needed to maintain paycheck-to-paycheck? (If you make your finances as confusing as possible by utilizing multiple accounts and transfer money constantly between them, your spouse will be just as tired of dealing with it as you are within months)

So please, feel free to ask your questions here and I will respond as best and quickly as I can. :)
34 replies
Jr. Member
Apr 1, 2010
103 posts
9 upvotes
GTA
When are you going to get off the paycheque-to-paycheque wagon and get your personal finances in order?
Sr. Member
Mar 3, 2010
588 posts
42 upvotes
Can't wait to hear more how this works so feel free to start writing about your techniques
Banned
Feb 17, 2007
3190 posts
203 upvotes
Are you proud of yourself for living p2p? or are you a shame of yourself, because you couldn't get rid of this addiction?
Banned
User avatar
Dec 10, 2008
1659 posts
54 upvotes
I think he is proud, hence the thread. I would be proud if I could live c2c (credit 2 credit card).
Sr. Member
Sep 28, 2008
571 posts
53 upvotes
mrbeachman wrote: How do you live p2p if self employed?

Excellent question MrBeachman!

Alot of people assume that it would be difficult to live P-2-P when you are self employed, and resign themselves to a life of budgeting and saving. The reality of it is that it's quite easy (perhaps even easier) as soon as you implement a little technique called Feast or Famine. This technique uses your fluctuating income to your advantage, and is really popular with the younger people as it it truly gives a instant gratification feeling (or close to it). It's simple to do to; during the months that you make a lot more money, you go out and spend this money as fast as it comes in. These are the months that you replace that old 2008 LCD in the guest bedroom with a brand new LED tv. Or how about upgrading that vehicle that only has 40k km on it? Take whatever loss of value you have in it, and simply roll it into your new payment. You should be able to increase your vehicle payment by 1.5-2X easily. It's important to remind yourself often though, "although in the past I have had slow times, this time is different and I will always make at least this amount of money so it's okay for me to spend it all now".
Sr. Member
Sep 28, 2008
571 posts
53 upvotes
Sweet Cheeks wrote: When are you going to get off the paycheque-to-paycheque wagon and get your personal finances in order?

Sweet Cheeks, thank you very much for bringing this up. As you have pointed out, it's important to have a plan to get off the P-2-P plan eventually. I probably should have mentioned this in the first post. I thank you again.

So, back to Sweet Cheeks' very important topic, which is retirement. The easiest way would be to buy lotto tickets at an early age and continue on, ensuring that these lotto tickets are your primary purchase every week. You can't win if you don't buy! Also, when the jackpot increases, you increase the amount of tickets you buy. Another option would be the casino, but this requires a fair bit more effort. The only real rule here is when you lose money, win it back. A third option available to parents is to simply wait until your kids grow up. Chances are that they will be doctors, movie stars and NHL players, so it's just a matter of waiting until they are adults.
Deal Fanatic
May 31, 2007
5018 posts
2175 upvotes
Has anyone noticed the finance forums sucks here now? What happened to the good old days, when smart people had intelligent posts and people learned something helpful? Sigh.. :(
Newbie
Aug 31, 2010
3 posts
Toronto
I make $500,000/yr as a doctor and have a stable guaranteed income for the rest of my life. My patients sometimes give me free stuff as a sign of appreciation. How can I live paycheck to paycheck?
Banned
User avatar
Dec 10, 2008
1659 posts
54 upvotes
Jungle wrote: Has anyone noticed the finance forums sucks here now? What happened to the good old days, when smart people had intelligent posts and people learned something helpful? Sigh.. :(
I am sorry, but there are only so many which credit card should I get posts that I can tolerate. The forums were boring until mr.beachman showed up and gave it a reboot. Like a Batman,

[IMG]http://www.roesgarden.com/wp-content/up ... 8/bat1.jpg[/IMG]
Deal Addict
Nov 18, 2008
3271 posts
81 upvotes
Jungle wrote: Has anyone noticed the finance forums sucks here now? What happened to the good old days, when smart people had intelligent posts and people learned something helpful? Sigh.. :(
+1

Glad I'm not the only one thinking that!
Deal Addict
Aug 17, 2008
1728 posts
1547 upvotes
bigEfromGP wrote: I have over 13 years of living paycheck-to-paycheck (or P-2-P as we refer to it in the biz), I am also a 2nd generation P-2-P'er.

So please, feel free to ask your questions here and I will respond as best and quickly as I can. :)

What do you think about Whole Life Insurance vs Term?

I have $500 to invest that I won't need for at least 2 more paychecks, what should I invest in that offers the highest return (preferably 10%+) with low risk (I don't what to have any chance of losing my investment)?
Banned
Feb 17, 2007
3190 posts
203 upvotes
multimut wrote: What do you think about Whole Life Insurance vs Term?

I have $500 to invest that I won't need for at least 2 more paychecks, what should I invest in that offers the highest return (preferably 10%+) with low risk (I don't what to have any chance of losing my investment)?

I think you can buy 2 guns with that down in the US.
Use those guns and rob a Chinese restaurant because they operate mainly on a cash basis.
They seem to have the mentality of "me no want trouble, please take money".
Happens couple of times in GTA; however, I would suggest you operate in a different region because they might have already installed security cameras lol.

Up side potential is practically 10k - 20k on 1 trip.
Down side, you lose that $500 because yours guns will be surrendered and you will end up in jail.
The odds of pulling it off is 99%*.


*The success rate is under the assumptions of the following:
1) More than 5 years of robbery experiences
2) No one in the restaurant actually have a phone
3) No cops were monitoring the area
4) No cop(s) were dinning there
5) No other gangsters present
etc...

Unfortunately, whatever the term of your insurance purchase doesn't cover the down side risks. Therefore, doesn't matter if it's term or whole.



Kids, don't try this at home. the plan was designated for professional robbers with at least 5 years of experiences in this field.
Banned
User avatar
Dec 10, 2008
1659 posts
54 upvotes
ACC-Major wrote: I think you can buy 2 guns with that down in the US.
Use those guns and rob a Chinese restaurant because they operate mainly on a cash basis.
They seem to have the mentality of "me no want trouble, please take money".
Happens couple of times in GTA; however, I would suggest you operate in a different region because they might have already installed security cameras lol.

Up side potential is practically 10k - 20k on 1 trip.
Down side, you lose that $500 because yours guns will be surrendered and you will end up in jail.
The odds of pulling it off is 99%*.


*The success rate is under the assumptions of the following:
1) More than 5 years of robbery experiences
2) No one in the restaurant actually have a phone
3) No cops were monitoring the area
4) No cop(s) were dinning there
5) No other gangsters present
etc...

Unfortunately, whatever the term of your insurance purchase doesn't cover the down side risks. Therefore, doesn't matter if it's term or whole.



Kids, don't try this at home. the plan was designated for professional robbers with at least 5 years of experiences in this field.


I just thanked you for this post.
Deal Addict
Dec 15, 2009
1352 posts
503 upvotes
Ontario
this thread is a waste of cyber-space.
Sr. Member
Sep 28, 2008
571 posts
53 upvotes
CPALD wrote: I make $500,000/yr as a doctor and have a stable guaranteed income for the rest of my life. My patients sometimes give me free stuff as a sign of appreciation. How can I live paycheck to paycheck?

Have you considered amassing large amounts of real estate in extremely inflated markets? Also something to try would be taking extravagant vacations as often as possible; if you are travelling, you aren't seeing patients, and if you aren't seeing them, then they cannot give you gifts.

I would also strongly encourage an extra-marital affair. You should use facebook to find her/him, and be rather non-chalant about keeping it a secret. This is one of the fastest ways to reduce your usable money by 50%.
Sr. Member
Sep 28, 2008
571 posts
53 upvotes
this thread is a waste of cyber-space.
Glad I'm not the only one thinking that!
Has anyone noticed the finance forums sucks here now? What happened to the good old days, when smart people had intelligent posts and people learned something helpful? Sigh..
My apologies to all 3 of you. I obviously very cunningly and craftingly tricked you into clicking on this thread. I confess, I singled you individuals out some time ago, and have since made it my goal in life to destroy yours by creating a humorous thread topic after having a rough summer financially. Muhahaha! And you played perfectly into my plans!
Sr. Member
Sep 28, 2008
571 posts
53 upvotes
Seems the Toronto Sun is also advocating this money management system:

http://www.torontosun.com/money/2010/09 ... 30896.html
The majority of Canadian workers live from paycheque to paycheque, with 59% saying they would be in financial difficulty if their wages were delayed by one week, according to a national poll released Monday.
Jr. Member
Jan 27, 2009
177 posts
4 upvotes
I had a good laugh at this post!

Thanks :)


For those that are complaining, take a chill pill and relax, stop being so uptight...

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