Friday, 11 April 2008

Shop From Home for Food

I have found a site called Homeshop that allows you to have goods from Safeway delivered to your door. You have to pay extra for the delivery, but it may be worth it. When I retire I plan to spend most of my time indoors watching movies or reading books. I have a large list of movies and books that I would like to read in my life but because I have to work and study while I'm young I don't get an opportunity to watch these movies or read these books. So I postpone it to my retirement. One of the things I budgeted for during retirement was a car because I need to go to the shops to buy food, which I need if I don't want to starve to death. However, with Homeshop I will be able to sell my car, thereby saving me registration costs, insurance costs, and car depreciation costs. The total cost of the car I suspect will be much more than the Homeshop delivery costs. The exercise will be very cost-efficient if I order plenty of goods at once. I don't know whether Safeway will allow me to order tonnes of food at once. Obviously stockpiling on foods that quickly perish like most milk will be a bad idea. I will then have to bias my food towards long-lasting food such as tinned food. I will also have to balance the price of the food with how healthy it will be because health is important. Because I don't plan on having an extravagant retirement, there really is no need for me to save much. I suspect $100,000 to $200,000 will be enough to fund this retirement. Costs can change because of price inflation, so I'll keep an eye on that.

Ever since I've started measuring it, my net worth has been steadily increasing. I work part-time at the moment, so I don't earn much. Since this year is my last year of university I am looking for a full-time job. If I get this full-time job my savings rate should be much higher, which means my net worth will skyrocket. The difficult question is when I should retire. How much money is enough to retire? Some people suggest I should stop at $1,000,000, which would give me a very comfortable and luxurious lifestyle. However, $300,000 will give me a modest comfortable lifestyle, and I will be able to retire much earlier. I haven't made up my mind about when I should retire. The most important factor that will determine the time when I retire will be how much I enjoy working. Right now I don't mind doing my part-time job. It's not too stressful, and the people at my work are very kind, so working there is almost like hanging out with close friends. However, some professions are rumored to be highly stressful, such as investment banking. Once I have enough to retire, instead of retiring what I could do instead is simply change jobs and move into a job I might enjoy very much (perhaps teaching). When I was young, teachers tell me to do what I love, but that is not helpful because what I love to do is read. Unless I am a book reviewer, chances are I won't be able to produce an income from what I love so that I can feed myself. Other hobbies are even less profitable. If a teacher tells a student to do what he loves and if the student loves to do nothing (e.g. sleep all day and watch TV), then would the teacher still stick with the do-what-you-love recommendation? I believe it is important for an individual to do something highly profitable that is not too difficult or stressful and once his net worth is high enough to sustain a comfortable life he should then start doing what he loves.

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