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Post date: Mar 1, 2017 3:36:48 PM
Wishlist part 1: Accommodations, Transportation, Leisure Items
A person's lifestyle refers to a way of living and the things in it. What a person spends their time doing, and their money on will define a person's lifestyle. Before we think about careers, it is important to think about what type of lifestyle you want to ascertain careers support certain types of lifestyles.
In short, what do you want your life to look like at age 40?
Today's goal is to do steps 1-5
Step 1: If you are doing this simulation at a single 40-year-old, continue to step 2. Otherwise, if you are married...
Choose if your spouse will work or not. The benefit to your spouse working will mean your household will have TWO incomes. I will decide how much your spouse makes, but it will be a modest amount. The benefit to having your spouse stay at home is in savings whether it is couponing, no childcare needed, or no need for a second vehicle. Choose now if your spouse will work or stay home. I will let you know what your spouse wants IE Smart Phone, Hobbies and Car. You will need to double the cost of each activity from here on out.
Step 2: Log-in to http://www.realgameonline.ca/ and click on the link that says "wish list"
Step 3: Read the definitions below and select ONE accommodation (place to live) on the wish list. Please be sure to read
Accommodations. There are 5 basic types of accommodations:
House - stand-alone building with multiple rooms and possibly multiple levels/floors. You can be in a community of neighbors, or have land without neighbors.Apartment - a living space with multiple rooms. your apartment is one unit in a building with many other units. You have many neighbors. You do not have any land, and all resources are shared which may even include laundry mats.Town-home - 2 or more houses that are built together so that they are touching. Families do not share space, but they may share a wall. Outdoor space is usually shared. Many town-homes are part of associations so things like lawn care and snow removal are done for you.Mobile Home AKA trailer. A multi-room home that is one level and on a trailer so it can be pulled by a large vehicle. Many mobile homes are stationary, but have the ability to relocate "easily". Most likely have neighbors who are also in mobile homes.
Home-share - one house with multiple families living in it sharing the space. Families can live in a co-op or the can live semi-independent lives in close proximity. (One family can live in the upper level while another family lives in the lower level). Common for a multi-generation living. (Two separate families who are related)
Rent vs. buy/mortgage
Renting means that you pay one flat fee per month to live in your chosen accommodation. Usually, you have a "lease" that says you have to live there a certain amount of time, typically a year. However, some places allow multiple year leases and rent is lower, or some have month by month leases which are typically more expensive. Renting Pros: Flat fee expense easily to budget for, no property taxes if something breaks the landlord (owner) has to fix it, easy to move if you want to. Cons: you don't own the property so if you want to paint, remodel, or drill holes in the wall to mount a TV you need the landlords' permission and if they say no, though! Also, you pay forever! As long as you agree to live there, you pay that one flat rate whether it is for 2 years or 40 years. So renting can "save" money short term, but loses money over the long term.
Buying a Home means that you pay for the house/accommodation and it is yours! Because people normally don't have such a large sum of money to buy a house outright in cash, people borrow money from a bank or lender and this is called a mortgage. The bank/lender will lend you money (if they approve you) if you promise (legally, they don't use pinky swear) to pay it back PLUS interest. Whenever you borrow money with interest you will ALWAYS be paying back more than you borrowed. It is the opposite of a sale! For example, if I borrow $100,000 from a bank I might agree to pay $536 per month for 30 years. This would total about $190,000 total over the 30 year period at an interest rate of 5% (compound interest, not simple but you don't need to know the difference). Notice you are paying quite a bit more than if you were able to pay for the house in cash! Pros: once you have paid all of your mortgages, you don't have to pay for housing anymore! paint, knock holes in the walls, renovate, it's you house you can do what you want to it. Cons: if something breaks you pay to fix it, you have to pay property tax, it can be difficult to move because you would have to sell your house first, and it is more expensive typically per month compared to renting, however that is short term.
Now that you have that crash course, select your house by pressing the "accommodations" button, read the descriptions, choose rent or buy, and then press the "add" button. Be sure to save your results by clicking the save button (looks like a down arrow)
Step 4: Transportation. This is how you get around from place to place. Read the list of transportation methods and add everything you want/need to reason. REMEMBER, if you imagine having a spouse and if he/she works also, he/she needs a way to get to work. Most likely you will need two cars, however, you could use the train or bus if the house you chose is in the city or next to a train station. You could also walk or bike if you live in the city. Also, if you have kids how many? Do you have a vehicle that will tote all those rascals around? Buying new is ALWAYS more expensive than buying used. The benefit to buying new is that you are less likely to have your auto break down but you pay MUCH more. Leasing a car is like renting a car, you don't own it, but instead, you pay a monthly fee to use the car and you never own it. After considering these things, make your selections. Click the add buttons and save your results.Step 5: Leisure Items
There are EXTRA, non-essential goods and items that you do not need to survive, make a higher standard of living. Again, at age 40, realistically, what do you see yourself owning? The items are pretty self-explanatory, select as many or as few as you see yourself owning. Just remember the more you select, the higher standard of living you are creating for yourself, which you will have to support someway.
Make sure you press the save button in the wish-list before exiting. It looks like a downward facing arrow.
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