Fear of Running Out

It's been said that the Fear of Running Out (FORO) is a universal phenomenon. You can see it when people make large purchases before a storm, a pandemic, or buy the same item multiple times for fear of one breaking.

We do this because we associate these things with our survival and having more of it means that we can survive for longer.

While I'm guilty of this too, I do find it irrational when thinking about it. I mean, the most wanted item during the Pandemic, was toilet paper. The biggest fear my mother had was missing out on toilet paper even though she already had a year worth of it in storage (she buys in bulk when it's on special). In this case, it make sense for people to stock on food as we all fear that Covid can have a negative impact on the food supply but why in the world is toilet paper an issue? I mean, worse come to worse, everyone could just get a bidet (which we should all have to save water really).

For me, this fear of running out is mixed with an addiction. When it comes to video games, my addiction, I'm always afraid that I'm going to run out. I have a stack of video games that I haven't even opened yet just because I'll get to it when I'm done the current ones I'm playing (I also like to collect them). I buy 2 controllers in case one goes out and I also have 2 versions of a console (ex: PS4/PS4 Pro) for the same reason.

It's important to understand what the fear is and, in my case, the addiction as that's the first step in fixing things.

Do you have a fear of running out? If so, what is it about?

I'm Not A Good Leader

When I first started my career, at around the age of 20, I believed I could lead the company I worked for within 2-3 weeks. That was fifteen years ago and now that I am in a leadership role I feel like I'm not doing a good job at it... where did all of that youthful optimism go?

Delegating the tasks is one of my biggest problem as I strongly believe that nobody else can do things better than I can. The problem is amplified when the task is given to someone else and he tells me that he doesn't know how to do it; of course he doesn't because I've been doing it all this time not letting him learn from it. 
I'm at the point now where it's no longer possible to do everything and I have to train other people to do some of what I do. What is sometime odd to me is that I get a feeling of frustration when they don't "get it" as I, somehow, believe that they should of picked up a few things over their time spent on the project.

As crazy as it may sound, there's a feeling of accomplishment I get from completing all of these tasks and knowing that I'm better at them than most - this is the core of the issue. To be an effective leader, you need to be good at delegating the less important things so that your focus is on the important things. Perhaps the best thing about this new position is that I get the opportunity to try/fail and, most importantly, understand the things I've been reading in all those leadership books.

Do You Even RRSP?

Another year, another tax season with an opportunity to earn from tax breaks. If you are looking to save up for your retirement then you really should consider investing in RRSP as the tax breaks benefits can help you in your saving.

What are tax breaks from RRSP?

If you earned 50, 000 in the year and invested 20,000 in your RRSP then, as far as the government is concerned, you only made 30, 000 in the year (50,000 - 20,000) and that's the amount you'll be taxed on instead of the full 50,000.

Where's the catch?

The catch is that you have to pay taxes once you start taking your RRSP as it is considered a source of income but logically the taxes you pay on it will be lower since your earnings, once you retired, will not be as high as when you were working.

What are good RRSP strategies?

• Start early.
• Only invest money you can afford to loose.
• Participate in your employer's RRSP plan as they often offer 2-4% match (free money).
• Re-invest your tax return in your RRSP (instead of spending it).
• If possible, maximize RRSP investments every year.
• Don't take out your RRSP until you retire otherwise you'll need to pay taxes on it.

What are TFSA?

Have you maxed out your RRSP? A Tax Free Saving Account (TFSA) is another good way to save your money. As the name implies, the account is "Tax Free". While there are no tax return benefits to this account, you are also not require to pay taxes on the money you make (up to a point) - which makes it an ideal investment account.

Some prefer a TSFA over RRSP as they get to put/take money away without any tax implications (up to a point). A TSFA is better for short term savings while RRSP is better for longer term/retirement savings.

Start saving now!