Good morning! Today, I’m excited to share a guest post from The Outlier Model, where they talk about making unique financial choices. Also, you can head over to their site to check out my guest post on affordable vacations on the US West Coast.
The Outlier Model is a personal finance and lifestyle blog that emphasizes “living life a little differently.” They believe that achieving success often means doing things differently from the norm. Their posts cover topics like budgeting, life hacks, and smart shopping, using personal stories, tips, and insights to help readers take small steps towards exceeding average outcomes.
When Brian and I visit family, my mother often comments, “Now that you’re earning well, you can start saving for a house and a car.” Or Brian’s dad might say, “With a good job, you won’t need to job hunt again!” These are common sentiments. People typically grow up, secure jobs, get promoted, and make purchases with their new income. This is the usual North American life, right? No one wants to constantly change jobs, take the bus, or keep an eye on grocery sales.
But here’s the thing – Brian and I don’t want to live an average life because average leads to mediocre outcomes. And those outcomes aren’t great. According to Statistics Canada, the average Canadian retiree stops working at age 62, and that age is rising. On average, we have less than $100,000 saved by retirement. That’s assuming we’re content working over 30 years. Yikes.
So, what happens when you step outside the average? You’re either seen as mediocre or extraordinary. Often, the distinction comes down to perspective, which can be tough to navigate.
For instance, Brian and I choose not to own a car. Many see this as a sign of mediocrity – assuming we can’t afford it or are too stingy, or prefer to rely on friends for rides. For us, it’s a success – it reduces our environmental impact and saves us over $200 a month, not counting maintenance or repairs.
We also spend only $200 monthly on groceries. My family thinks we’re depriving ourselves unnecessarily – my mom worries we aren’t eating well. Colleagues question if I’m underpaid because I bring homemade food. These views suggest mediocrity, but we feel accomplished – enjoying tasty, healthy homemade meals daily and saving money.
In the end, these choices might look like sacrifices or failures to some. It’s true that car sharing isn’t as convenient as owning a car, and spending $200 on groceries means we skip luxury items like steak or lamb. However, these decisions save us a significant amount of money. We also save by living in a small condo and renting out a bigger one, and by pursuing new jobs, side gigs, and entrepreneurial opportunities. All our savings aim for one goal – financial freedom.
Remember the averages I mentioned? Working into your 60s with less than $100,000 for retirement. That’s our motivation. For us, taking public transit or being frugal with groceries is far better than running out of funds in our old age or not retiring at all. We’d rather work hard now, save through frugality, job changes, and smart real estate investments, so we can enjoy an above-average retirement.
So for now, we might seem below average in terms of convenience or material possessions. We probably won’t stay in one job for long or live in one place for years. We’ll eat a lot of rice. And that’s okay – we believe it will lead us to an extraordinary early retirement.