FIRE Community Guest Interview #22 - Building Multiple Income Streams To Design Their Dream Lifestyle

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Here we are again with our next installment of the FIRE Community Guest Interview Series!

For anyone new here, this interview series will cover people within the FIRE community who are on their way to becoming financially independent, have already reached financial independence, or who have retired early. If you are reading this and you are financially independent, retired early, or close to reaching these major financial milestones, please reach out to the Modern Fimily! You can check out the previous FIRE Community Guest Interviews here.

Today, we have the pleasure of having fellow Canadian, Sandy Yong, join us to share here journey to FI. Sandy is a mom, fellow speaker at the recent Women Can Money Summit, recent TedX speaker, and the proud author of the book The Money Master: Inside Secrets On How To Make Your Money Grow and Stay Safe. And I’d happy to announce we have another book giveaway! Sandy has graciously provided us with 2 autographed copies of her book to give away to two lucky winners!

What I love best about Sandy’s book is that it’s packed with useful information but it’s also short and sweet. Lately I’ve been on a major book hiatus as I’m finding the 300+ page books too much to take on these days with the two kiddos wearing us down on a daily basis. Sandy’s book is just around 120 pages which I personally think is the perfect size book.

If you are interested in the book comment below letting us know along with your biggest takeaway from this interview.

I hope you appreciate these responses as much as I do and hope you can relate to these guest interviews in some sense to see that there is no cookie-cutter way to FI. If you have any follow up questions or would like to get in touch with Sandy, please see the last question of the interview to see all the ways you can contact her. And of course, please comment below as well! Without further ado, take it away Sandy!

1. Can you give us a little background of who you are, what you do, and how you became interested in personal finance? How did you discover the idea of financial independence?

I am a personal finance author, keynote speaker, stock market and real estate investor.

I became interested in personal finance when my friend introduced me to Robert Kiyosaki’s book, Read Rich Dad, Poor Dad. After reading it, it inspired me to continue reading a plethora of personal finance and investing books. In my early 20s starting my career, I wanted to invest and like most people went to one of the big banks and purchased mutual funds. It wasn’t long before I got burned by high-fee, high-risk mutual funds and lost thousands. From then on, I decided to become a self-directed investor and have been doing this for the past twelve years. In addition, my husband and I own numerous condo properties and rent them out to long-term tenants. We focus on creating multiple streams of income so that we can build our wealth and accelerate our net worth.

I discovered financial independence after attending the FINCON 2019 conference in Washington, D.C. At the conference, my husband and I watched the film, “Playing With Fire” which

followed a couple who went from living paycheck to paycheck to changing their habits and started working towards FI. It was very inspirational and it made us assess our financial situation and see if it was something that we could achieve.

2. When in your journey did you realize financial independence was actually possible? Was that the original goal at the beginning?

I came across Grant Sabatier’s book, Financial Freedom: A Proven Path To All The Money You Will Ever Need. It was a great introduction to understanding how to achieve financial independence. I used an online FI calculator to see how many years my husband and I would need to continue working in order to reach FI/RE. Although it’s not an exact science, we have a relatively accurate picture of when we believe we can become financially independent.

We also joined several FI groups on Facebook to learn more about other people’s FI/RE journey and to learn different strategies to achieve this ambitious goal. On our car rides, we enjoy listening to various podcasts interviewing people who are either on their FI/RE journey or have already achieved it.

3. To help put things into context, if you are comfortable sharing some numbers, what is your savings rate, FIRE number, net worth, salary, how many hours a week do you work, etc? How long have you been working towards financial independence and where are you today?

We currently have a combined savings rate of approximately 40%. To achieve this, we have automated our savings so that on the day we receive our paycheques into our chequing accounts, there is an automatic transfer set up to deposit money into our savings accounts.

We are very career-driven and goal-oriented people. I think that’s why we work so well together personally and professionally. We are hoping to reach our FIRE number in our 40s and ideally by the year 2027. We both have full-time jobs where we work approximately 40 hours/week. Our rental property income and stock market portfolios along with our book/speaking/brand partnerships incomes also keep us busy with part-time hours. As you can see, we are juggling many balls in the air – all the while taking care of our newborn son!

Being new parents while balancing all these priorities in our lives can be tricky sometimes. We make it work as we share responsibilities and have open communication with each other. We both have been investing in the real estate and stock market for numerous years. But when we did the math, we realized that financial independence was an achievable goal for us.

Overall, we are about 80% to reaching financial independence. We want to continue growing our multiple streams of income and ensure we have a comfortable lifestyle so that we can go on family vacations and pass on our wealth to the next generation.

4. Do you feel deprived? Do you feel like you are sacrificing and missing out on life? How would you say your mindset has shifted throughout your FI journey?

We live a frugal life but every now and then we will spend the extra money on an item if we see that it brings value to our life. We don’t necessarily like to buy the cheapest product based on the lowest price if the quality doesn’t last as long. We will do our research and comparison shop to ensure that we are getting the best bang for our buck – even if it means shelling out extra money to buy a higher quality item that will be durable.

We try our best to practice delayed gratification. We don’t feel like we are sacrificing our quality of life since we often have discussions about what we want to buy and the urgency of it. If we have maxed out our current monthly budget, then we will wait until the next month to buy the item on our wish list.

We also think about how many hours we had to work in order to buy that particular item. Then we assess if we still think it’s worth the price. If not, then we keep searching for a better deal.

Furthermore, we see it from a holistic standpoint as a “give and take” process. If we spend a lot of money on a fancy dinner one week, then the following week we will go out and have a cheap-eats meal. This way we can still find a balance with our spending habits and enjoy the things we want to do.

5. What do you spend your money on and what don’t you spend your money on? What brings you happiness and joy? How much money do these things cost?

Although I like to live frugally, I do enjoy spending money on travel and dining at restaurants. My husband and I save up for an annual vacation so that we can explore new countries and learn about different cultures. We watch travel documentaries which inspire us to do more research and add a country to our dream board. I also enjoy finding new local restaurants to try different cuisines. It’s good to support local businesses in my neighborhood and enjoy our weekly date nights outside of the house.

I don’t enjoy spending money on home repairs because they are maintenance items that don’t always enhance the appearance of the home. However, they are necessary repairs and cannot be avoided. Most recently, we had to pay for replacement parts of our HVAC units to ensure that the heating/cooling system would work properly. I also don’t enjoy paying for life insurance, but it’s a necessary evil. You pay into it hoping you don’t need it to use it. I suppose it’s good to have a peace of mind knowing that we are protecting our loved ones.

6. Do you use a budget? Do you track your expenses? Do you track your net worth? If so, how often do you update these?

My husband and I have a monthly budget and a yearly budget on an excel sheet that we update on a quarterly basis. It’s been a good way to keep track of our household finances. We both keep track of our individual and joint – income and expenses. We keep a record of it on a notepad on our cell phones. It’s convenient to do this on our cellphones because it’s easy to access, especially when we are out shopping or eating at a restaurant.

We also keep track of our net worth on a quarterly basis. It helps us to gauge whether or not we are on track of reaching financial independence. It keeps us accountable to ensure that we are saving habitually and working towards our investment goals as well.

7. What are some of the more unique/uncommon ways you’ve cut down costs?

We usually buy generic brands at the grocery store/pharmacy. Most of the time, the quality is still decent but you pay only a fraction of the cost compared to brand name products. In addition, we buy items that are reusable products instead of disposable ones. For example, we avoid using disposable paper towels and use reusable counter cloths instead. This way we save the planet and save our money.

We are also PC Insiders members and take advantage of PC Optimum points redemptions and bonus points. It’s been a great way to earn points through Shoppers Drug Mart, Loblaws, No Frills and Esso gas stations. These points help us pay for groceries and baby supplies. We use PC Express on a weekly basis to order groceries online and pick them up in store. We have the PC Optimum app and every week I check for free offers. We’ve received free food and household items which helps us reduce our grocery bill. When it comes to baby formula, we have received coupons that range from $5 to up to $15 off which has helped us save some money since it can add up quickly.

Lastly, if we are not in a rush to buy an item, we will wait until it goes on sale to buy it. Typically, canned goods or packaged items will be things that we would stock up when it’s on sale. Sometimes we will buy a large quantity of items and portion them out to put into the freezer for future use. We typically do this for meat products. It’s a good feeling knowing that we got a good deal and didn’t have to pay full retail price.

8. As a FI member living in Canada, are there any pros to living in Canada specifically that have helped you along your journey? Conversely, any cons?

As a Canadian, I’m very grateful that we have the TFSA and RRSP to help build our family’s wealth. We are also fortunate to have pensions through our employers. This gives us the added peace of mind that we will be able to live comfortably when we reach our golden years.

The downside of living in Canada is the unaffordable housing market. The prices have been soaring making it very difficult for generation Y and Z to become homeowners. Hopefully the federal government can help to alleviate the pressures of this housing crisis and make housing more affordable by building more houses across Canada. However, as a real estate investor myself, this has been beneficial for me since I’ve seen the property values increase over the years.

Currently, we are also experiencing rapid inflation of approximately 4.5% in 2021 and higher levels now in 2022 thus our dollar is not stretching as far as it used to. We’ll see in the near future the impacts on prices of gas and groceries making it challenging for families to keep up with the rising cost of living.

9. What is your investment strategy? Do you invest in index funds, dividend stocks, real estate, other businesses, etc.? Has your investment strategy changed over the years?

I invest in index funds and ETFs. They are diversified globally – Canada, USA and internationally. I keep it simple with mainly plain vanilla funds. I enjoy receiving dividends on a quarterly basis.

My husband and I are also building our real estate portfolio where we rent out our condo units to long-term tenants. We like to focus on the condo market because it’s easier to maintain and it’s been relatively more affordable than buying a house. We hope to increase our rental income over the next few decades. This will help to pay down our mortgages.

Since my husband and I are both authors and keynote speakers, we are also focusing on growing our speaking engagements, having brand partnerships, and even some freelancing writing. It’s been a great way to follow our passions and help educate our audience about health and wealth.

10. Do you take advantage of tax advantaged accounts offered to you? If so, which ones and how so? Do you have a game plan to be able to withdraw from these funds when the time comes or is the plan to live solely off passive rental income?

We max out the contributions every year for our TFSA and RRSP. We like how the TFSA allows us to grow our investments tax-free. For the RRSP, the withdrawals will be tax-deferred. We will probably have to withdraw some money from our non-registered accounts and live off the dividends we receive as well. The rental income will continue to help pay down our mortgages. We’ll also have some cash as a buffer in case the stock market crashes during the time we reach FI. That way we won’t be forced to sell our funds at a loss. We’ll also be sure to ensure our emergency savings funds are padded up nicely in case unexpected events occur.

11. Speaking of withdrawals, what is the withdrawal rate you plan to use when you withdraw from your portfolio? Are you a fan of the “4% rule” or something else? Why?

Yes, we plan to use the 4% rule to start off with and see if we need to adjust it. We might even try geoarbitrage where we will travel to some countries where the living costs are cheaper than in Canada. There are many asian countries that we would like to visit some day.

12. What are your post-FIRE thoughts/plans regarding health coverage? As a reference, what do you currently pay annually or monthly for health related costs (be it insurance, co-pays, deductibles, etc.)? What do you estimate your post-FIRE health costs to be per year?

We currently pay monthly for health/dental/life insurance through our employers. We will probably look into our university alumni group’s health insurance plan. Our health and dental costs have fluctuated the past several years. I would say it could be around several thousand per year for our family.

13. As a parent, have you found that having children has greatly delayed your timeline to reach financial independence? How much money have you spent on your child per year? What were some of the bigger costs that were worth it and what were some of the bigger costs that were not worth it? Are you planning to open up a RESP for their post-secondary education?

We budgeted on having a child in advance so that we were already saving up for childcare costs before our son was born. By saving up in advance, we have been able to transition better rather than there being a large spike in expenses.

As new parents, we are still in the first year of taking care of our first child. We have been able to save money by budgeting all the essential baby items and did comparison shopping to find the best deals. We also had friends and family help donate some items so we didn’t have to buy new items. We also used Facebook marketplace to find second-hand items so that we could get items at a discounted price. We bought a crib, play mat, bath tub, plush toy and diaper pail through Facebook marketplace. It’s been a great way to save money.

We realized that with compound interest, you would actually earn more money on your investment portfolio if you have a large upfront lump sum to go towards your child’s education. There are also some restrictions when it comes to the RESP. We have decided to continue to contribute to our existing non-registered accounts to grow our investment portfolio. Then when our child enrolls into post-secondary school, we can sell off some funds and give it to him directly.

14. Has discovering financial independence changed how you view your job and life overall?

Yes, it’s made me realize that I have many passions that extend beyond my full-time career. It’s also made me look at my spending habits and ask myself if I think they are worth it or not. It’s opened my eyes to the fact that I can still enjoy my current lifestyle while saving up for my future. My husband and I are exploring ways to increase our net worth via multiple streams of income. We hope that when we achieve financial independence, that it will give us the time to spend with our loved ones and to further pursue our passions.

15. Have you come out of the FIRE closet yet? Meaning, do your friends, family, co-workers etc. know about your financial independence goals? If so, how did you bring it up and what were their reactions? If not, why not? Why do you struggle with this conversation and why do you feel that money is such a taboo topic?

No, we haven’t really mentioned this to our friends, family or co-workers. But I’ve been featured in multiple podcasts and interviews that if they listened or read them, they would know that it’s something our family is working towards. We haven’t talked about it because not many people have asked us to be honest.

We also find that when people hear stories of young adults achieving financial independence and quitting their corporate jobs, it tends to polarize people. Either people are rooting for you or they just can’t wrap their head around it and make assumptions about how you live your life.

Because so many people live paycheck to paycheck, they think it’s something that is impossible to achieve or that you’ve had to deprive yourself of so many things in order to achieve financial independence. That’s why only a handful of people know and we openly discuss it with people who are on the same path or are more successful than us and understand why we do what we do.

16. What pieces of advice would you suggest to someone who is just starting out or someone who is working toward reaching financial independence?

Envision what your future lifestyle will look like. Think about where you want to live, if you want to start a family and travel the world. Maybe you want to go back to school or learn a new skill. How much will these things cost? When do you want to achieve them? When you have a financial plan mapped out, it will help you determine what steps you need to take to get there.

Also, determine what financial independence means to you. Some people want to have enough money to leave their full-time jobs. Some people still want to work part-time. Take the time to figure out what you want and think of the best ways that you can start your path to achieving your financial goals (whether it be investing in the stock market or in real estate etc).

17. Are there any books, blogs, or podcasts that you would recommend for our readers to check out?

I enjoyed reading the following books pertaining to reaching financial independence and creating wealth:

Choose FI: Your Blueprint to Financial Independence by Brad Barrett, Chris Mamula, and Jonathan Mendonsa
Master your mortgage for financial freedom : how to use the Smith manoeuvre in Canada to make your mortgage tax-deductible and create wealth by Robinson Smith
Quit Like a Millionaire: No Gimmicks, Luck, Or Trust Fund Required by Bryce Leung and Kristy Shen

I also have an ongoing list of excellent personal finance resources that you can check out on my website: www.sandyyong.com/resources. It includes additional book recommendations, podcasts, online financial calculators, quizzes and worksheets. I’m constantly updating the webpage to provide you with great resources that will help you learn more about personal finance.

18. How can people get in contact with you?

Please feel free to connect with me on social media:

Website: www.sandyyong.com

Instagram: www.instagram.com/themoneymasterbook

Facebook: www.facebook.com/themoneymasterbook

Twitter: www.twitter.com/MoneyMasterBook

Linkedin: https://www.linkedin.com/in/sandyyong1/

Email: sandy@themoneymasterbook.com

Great responses, Sandy! Here were my key takeaways from this interview:

Love that Sandy highlighted the automatic transfer from her chequing account to her savings account to line up with pay days. Pay your future self first and try to keep as much automated as possible! Thins line of thinking lines up nicely with Paula Pant’s Anti-Budget.
“We also think about how many hours we had to work in order to buy that particular item. Then we assess if we still think it’s worth the price. If not, then we keep searching for a better deal.” This is what Vicki Robin coined as your “life energy” and is such a powerful way to think about purchases!
Reusable counter cloths for the win! We too do the same and maybe go through 1-2 rolls of paper towel over a year.
PC Points! We too are PC points collectors but are no where near master level that some of these PC point collectors out there are at. Pro tip is to make sure you check in with the app as you also get customized offers in there. This week we were able to get butter for $2.99 and eggs for $1.99 thanks to an in-app offer.
I can’t get over all the different passive income streams Sandy and her partner are building! Investment portfolio, real estate portfolio, book royalties, and speaking arrangements! Busy bees! Plus a little guy in tow! I honestly don’t know how you do it all on top of your day jobs!
Geo-arbitrage for the win for sure. We are leaning towards travelling for 2-4 months each winter and when we play with some numbers we actually end up making money if we rent our house out while away to go explore other parts of the world.
“We also find that when people hear stories of young adults achieving financial independence and quitting their corporate jobs, it tends to polarize people. Either people are rooting for you or they just can’t wrap their head around it and make assumptions about how you live your life.” Amen!!

Thank you again Sandy for being a part of our FIRE Community Guest Interview Series, appreciate it! In our next FIRE Community interview, we’re staying in Canada with a single mom showing her journey to reach financial independence.

Did you enjoy this interview? Any thoughts or additional questions for Sandy? Please let us know in the comments below

And again, if you’d like to win a copy of Sandy’s book, let us know below along with your key takeaway from the interview. We will announce the winners when the next FIRE Community interview comes out.

Thanks for tuning in and check back next month for the next interview.

We love highlighting other members of the FI community. Please contact us if you’d like to be a part of the FIRE Community Guest Interview series and we’ll see if we’re a good fit!

And in case you wanted to read the previous interviews that make up our FIRE Community Guest Interview Series, here you go!

7 thoughts on “FIRE Community Guest Interview #22 – Building Multiple Income Streams To Design Their Dream Lifestyle”

Robert
May 19, 2022 at 9:07 am

Thanks for all the great info, Sandy, Court & Nic! Enjoyed watching you all on the WCM Summit! That’s an impressive list of side hustles and income streams, I think it’s great.

Susan
May 19, 2022 at 9:09 am

Main takeaway- delay buying an article until it is on sale/ your budget allows. I would love to win her book.

Linda
May 19, 2022 at 10:48 am

I like the advice to determine what FI means for you as it will be so different for everyone. I also like her books to read suggestions.

Alex
May 19, 2022 at 9:06 pm

Best point for me – aiming to frontload RESP contributions. We aren’t totally there yet but working on it. Would love a book!

Jen
May 20, 2022 at 3:54 pm

Would love to read Sandy’s book. I’m guilty of using many, many rolls of paper towels. This article inspires me to try the reusable counter cloths. Sometimes the little things can add up and every bit helps!

Cass
May 24, 2022 at 11:54 am

My key takeaway/inspiration from reading Sandy’s interview is her intentionality with travel. I love the idea of a dreamboard, as well as watching travel documentaries for new ideas and inspiration. I believe that you get more enjoyment out of experiences when you’ve spent time anticipating them, and I think this is a great way to do that!
I really enjoyed this interview and would love to read her book!

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