Tuesday, November 8, 2011

I'm going to try Welding as a career.




I'd like to pardon the break I've been having - I've been particularly busy, and my health has begun to suffer with the colder weather.

I had mentioned previously that I am taking a part-time welding course at a local school.

Well, over the last six weeks, it has peaked my interest, and now I have signed up to take the foundation levels course, which is 7 months long, full-time.

The province of BC, where I live, has recently received a very large, $8 billion dollar contract to build non-combat support ships (boats) for the federal government's navy. This means that there will be alot of work for trades people (especially iron workers, welders, millwrights, et al).

Between getting all of my ducks in a row to apply for the university level course to learn how to be a level C welder (the most basic, and often used level of techniques), I have been incredibly stressed and anxious. My health has been slowly getting poorer due to this and the chill that recently cut through our area.

I planned on having a long-term income for my investing, such as what I have at my current workplace. But the lure of making over $25/hour, and being eligible for overtime has made me see that I could make over double what I make at my current job if I go into a trade and upgrade my education in that trade as I go along.

My current job makes $35800 a year, gross (before taxes).
A C-level welder can make $42,000 gross at $25/hour (40 hours/week, no overtime, before taxes)

My current job has told me that will provide a $5000 raise every year (based on performance, and not guaranteed).

After 1 year total experience as a C-Level welder, (7 months of school + 5 months of work), you gain a C-Level sticker in your 'trades book'. This means that you have the possibility of asking for a higher wage, as you are an 'accredited' C-Level at that point.

Then, you can take the B-Level testing, which is 5 months. After 1 year total experience as a b-Level (5 months of school and 7 months of work) you can get the accreditation as a 'B'-Level, which means, again more job eligibility. There as also more accreditation down the road that can add more to your 'trade book', and offer additional opportunities.

So basically, by going to school for 7 months, I would have to move back in with the parents, which I had hoped to avoid, as I want to allow them to have more money to save for retirement.

But, I don't see much other choice, as it would be very tough for me to somehow make enough money (be it on the markets or elsewhere) to pay for the rent for me, and my girlfriend, in our current residence.

So, I am looking for decent exit points for most of my investments, so that I have a surplus of cash available for all of the expenses that will come up when I am going to school.

I have yet to tell my work that I am leaving though. They are a small business, and frankly, I think the business owner would become very, very agitated that I am leaving (he is Italian, and very, very irritable).

I just finished the last of the tests and entry requirements for the course last week. I am pegged to go at the start of March or April 2012 at the earliest, depending on if people drop out of the March course, and let me go earlier.

The primary work for the big ship-building contract start late 2012, so if I get in early enough, I can try to apply directly for that work. Otherwise, there will be many shops and companies that lose their welders to that large contract at the docks, and I can apply for those openings as well.

I just hope to hell that this works out. Maybe there won't even be any work for me to do - Maybe this schooling will be worthless, and an entirely futile exercise.

We'll see.

Wednesday, October 19, 2011

Net Worth Update: October 15, 2011

So, this month, I did sell (*gasp*) some of my investments that had become overpriced. I then bought them back a few days later, after they dropped again, all without missing a dividend. Ha.

My goal progress increased by about .45%  (from .739% to .784% of my goal of $1,000,000 dollars net worth).


(This post summarized my current net worth in an easy to read table - It's a snapshot, so as unforeseen expenses or windfalls accrue in the month, this will become less relevant.)


Net Assets Sept-30-11 Oct-15-11 Change %
Emergency Fund
$ 1,000.00 $ 1,000.00
$ -
0.00%
Taxable Accounts
$ -
$ - $ -
0.00%
Taxable Brokerage $ - $ - $
0.00%
TFSA Brokerage (Book) $ 6872.44 $ 7277.36 $ 404.92  6%
RRSP Accounts $ 565.00
$ 565.00 $ - 0.00%
Stock Options $ - $ - $ - 0.00%
ESPP $ - $ - $ - 0.00%
House $ - $ - $ - 0.00%
Receivable (Payable) $ - $ - $ - 0.00%
Other Assets $ - $ - $ - 0.00%
Total Assets $ 8437.44 $ 8842.36 $ 404.92  5%
Liabilities











Credit Cards
$ - $ - $ - 0.00%
Mortgage $ - $ - $ - 0.00%
Tax Liabilities $ - $ - $ - 0.00%
Other Liabilities $ - $ - $ - 0.00%
Total Liabilities $ - $ - $ - 0.00%
Goal Progress ($1,000,000 CAD)
(Investments + House - Liabilities)
$ 7392.44 $ 7842.36 $ 409.92 .784% 
(Total)
Net Worth $ 8392.44 $ 8842.36 $ 409.92  5%


(This chart is a modified version of Brien's 'Net Worth' chart from www.2millionblog.com. It is used with permission.)

Friday, October 14, 2011

Giving a Friend Permission to Spend


I have a friend at work who fulfills any and all of his wants, on a whim.
Whenever he has more then a $100 in his chequeing account, he immediately liquidates it on a want.
If there isn't quite enough to cover the want, then it goes on a credit card.

This would be a decent, if future-less life strategy, if he paid off his credit card every month, and had no debt.
The problem is, he has nearly $30,000 of debt in a line of credit.

He will come to me asking for advice on his most recent want.
I tell him the same thing every time.
  1. Make an emergency fund of $1000.
  2. Set a small monthly amount (~$100) for discretionary spending.
  3. Pay off the debt with everything left over after necessities.
He does not follow this advice.
Instead, he will come back to me for more advice.
Then I realized something.


He is asking for permission to spend!


I  I think this is why we have such a strained friendship at timesonly give him permission to spend a the small discretionary budget, and. Personally, I don't feel a need to spend money all the time; I am usually happy with inexpensive or free diversions.

It has gotten to the point where I can't even bear to speak to him about money anymore.
Everytime I tell him to save money and pay off his debt, he will leave depressed.
Worse yet, he will come back to see me again with a new toy in hand, happy as a clam.

He knows that this is not a healthy pattern of behavior, but he continues never-the-less.




What can we do to help this wild spendthrift?

There isn't much we can do directly.

But, we can make our frugal lifestyle seem better and better every time we see them.

We can also show them a calendar that states exactly when you're planning to retire, and how it is many years (maybe decades!) before they even thought possible.

Then, explain that the date keeps inching earlier and earlier due to our good habits, and putting windfalls towards it.

Leading by example, we can help those without the natural willpower to save and invest.



EJ