My parents did not spend useless money. Growing up, all our electronics were different colors and our computers were 10 years old. However, my parents valued their experience and always spent money on family vacations. That was special.
In ninth grade, my history teacher saw my passion for finance and suggested I study Rich Barber by David Chilton. The purpose of this book was to save 10% of your income and spend 90%. I always did the exact opposite—I saved 90% and used 10%. I had several jobs since high school, including as a bus boy, a waitress and cleaning several parking lots, something I did for several years early mornings before school and on weekends. During every summer in high school, I worked 50-hour weeks—saving almost every penny I earned.
Should you save 10% of your salary? Is it enough?
My first investment was GIC in 2005. It paid 4.5% interest, or $30 a month. I quickly realized that if I had more money, I would earn more interest, which motivated me to work harder. Then in 2009, I was voted “most likely to become a millionaire” at my high school. I was 17 and had saved $60,000—enough to pay for four years of elementary school anywhere in Canada. But my parents had a low RESP for me so I decided to go to a local university. Staying at home allowed me to keep expenses low, continue to work four jobs and continue to save.
In 2011, I found a stock investment and started a $100,000 mock portfolio. I bought all of Warren Buffett’s stocks that traded that year and got an annual return of 23%. That encouraged me to invest my money and do more business studies. I also used my TFSA two years ago and bought $25,000 worth of stocks, mostly bank stocks. Since then I’ve added shares of Costco, Footlocker and Starbucks—investments in places I like to go. I now have 25 paying shares, and I monitor them daily. Last year I made an average profit of 15%. That is very good.
This spring, I hit $100,000 in savings and started working full time at my local bank. Were the 50-hour work weeks and delayed gratification worth it? Definitely. I always enjoyed playing soccer and spending time with friends—my two favorite things to do. I have never felt deprived.
Last month, as I was planning a trip to Mexico with friends, I looked back at a book I had written to myself years ago. My future goal was to become a millionaire by 2017. That’s ambitious, but with hard work—and my money working for me—I feel up to the challenge. Check back with me in three years to see if I was able to achieve that goal.— Acts.As told by Julie Cazzin
Tell MoneySense How did you achieve your financial goal? Email [email protected].
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