No post today (or tomorrow but I have one ready for Saturday)... Just wanted to throw a link up here about a very interesting dating service that Budgets are $exy shared. I love the idea.. I'd totally do it :D haha
A Date with the IRS
Jenny~Z
Thursday, June 30, 2011
Monday, June 27, 2011
Week Off..
¡Hey y'all!
So I'll be gone until Saturday :( I'm headed canoeing/camping for a couple days then will be spending Canada Day (my favorite holiday of the year) on Rideau Street in our capital city OTTAWA!!!!!!! I'm more than excited to see the sea of red and white!
So I'll be gone until Saturday :( I'm headed canoeing/camping for a couple days then will be spending Canada Day (my favorite holiday of the year) on Rideau Street in our capital city OTTAWA!!!!!!! I'm more than excited to see the sea of red and white!
Bank Loan vs. Government Funding
There's a few borrowing options available to Canadian students. I'm going to pro/con two of the options from my point of view (these are solely my opinions).
In my first two years of university, my grandfather co-signed for a student line of credit of $20,000 (10k/year). I was able to put myself through third year without borrowing any additional money. My fourth year, I was "given" $13,000 from government funding. I have been "given" another $12,000 for teacher's college. So I have a total of $45,000** in student debt experience to draw from.
Bank Student Line of Credit
Pro
Provincial/Federal Integrate Loan (OSAP)
Pro
Overall, both have their positives and negatives but I would recommend that EVERYONE should apply for their government funding first and subsidize with bank loans if necessary. The benefits of no interest, no payments and the grants makes the extremely complicated application and collection processes worth it (at least from my experience)!!
Please share your student loan stories.. Are your experiences similar?
Jenny~Z
In my first two years of university, my grandfather co-signed for a student line of credit of $20,000 (10k/year). I was able to put myself through third year without borrowing any additional money. My fourth year, I was "given" $13,000 from government funding. I have been "given" another $12,000 for teacher's college. So I have a total of $45,000** in student debt experience to draw from.
Bank Student Line of Credit
Pro
- Full access to the entire amount instantly (I applied in July '07 and had access to the money the same month)
- Revolving credit: any amount I pay off I have access to again.
- Low low interest rates (mine is prime+1%)
- Monthly interest only payments. (Interest only is great but its still a payment)
- Interest accrues
- Co-signer required (for most people)
- Possibility to mismanage money as its all available immediately (think 3 months beer fund... no tuition payment made)
Provincial/Federal Integrate Loan (OSAP)
Pro
- (In Ontario) No matter how much is loaned the government caps your debt at $7,300/year. ** So my actual student debt is only $30,000. I also received some low-income family grants.
- No payments to worry about until after graduation, but I have an account number I could pay if I wanted.
- No co-signer (for the first 4 years following highschool graduation parental income information is used to determine need but they are not responsible for the loan)
- Interest doesn't accrue until after graduation.
- I have no idea what my interest rate is. While I've found some sources that say is low (prime+ 1-2%), I've also seen some sources that show it being much higher (17.9% or more)
- Extremely lengthy process at the beginning of the semester to get your funds. Including a trip to 2 different rooms on campus and the post office in some cases.
- Application is due in June and funds aren't available until the beginning of the semester. And it takes about a week (or more) following the procedure in the previous point for the funds to find their way to your account.
- 60% of the funds are deposited in September and remain 40% are deposit in January.
- Lump sum payment not revolving credit
Overall, both have their positives and negatives but I would recommend that EVERYONE should apply for their government funding first and subsidize with bank loans if necessary. The benefits of no interest, no payments and the grants makes the extremely complicated application and collection processes worth it (at least from my experience)!!
Please share your student loan stories.. Are your experiences similar?
Jenny~Z
Sunday, June 26, 2011
Challenge #2: Results
For the original post see here!
How success full was I??
1. Saved 20% off internet bill for the next year. Total savings = $12/mth
2. I already have the lowest interest rate available with my bank.
3. I think I have found an apartment for the fall for $650/mth including utilities. Total saving = $150/mth (fingers crossed I actually get it!)
4. I honestly didn't even try this one
5. I was able to get a quote for $1100/year which will save me $1500/year!
6. I cancelled my Netflix, Goodlife and Big Fish Games memberships. Combined savings = $75/mth
My total yearly savings will be about $4300. WOWZERS!! I can't believe this was possible! And all I did was make a few phone calls :D So happy!!
Jenny~Z
How success full was I??
1. Saved 20% off internet bill for the next year. Total savings = $12/mth
2. I already have the lowest interest rate available with my bank.
3. I think I have found an apartment for the fall for $650/mth including utilities. Total saving = $150/mth (fingers crossed I actually get it!)
4. I honestly didn't even try this one
5. I was able to get a quote for $1100/year which will save me $1500/year!
6. I cancelled my Netflix, Goodlife and Big Fish Games memberships. Combined savings = $75/mth
My total yearly savings will be about $4300. WOWZERS!! I can't believe this was possible! And all I did was make a few phone calls :D So happy!!
Jenny~Z
Bank Fees
Just a quickie today! If you are still a student make sure you head into your local branch with proof of enrollment. Most banks have deals for students that eliminates the monthly fees and waives transactions costs!
I have bank accounts at 3 different banks and my total monthly costs (assuming I don't use my overdraft) are $0.. YES THAT'S ZERO DOLLARS!
So if you aren't already taking advantage of free student banking I question: WHY NOT?
There are also great options such as ING Direct and PC Financial which don't have monthly fees!!!
AWESOME!
I have bank accounts at 3 different banks and my total monthly costs (assuming I don't use my overdraft) are $0.. YES THAT'S ZERO DOLLARS!
So if you aren't already taking advantage of free student banking I question: WHY NOT?
There are also great options such as ING Direct and PC Financial which don't have monthly fees!!!
AWESOME!
Saturday, June 25, 2011
Taking a gap year..
The best decision I ever made was (sorta) forced upon me. Up until fall of grade 11 I had high, high hopes of going to university and becoming a pediatric oncologist (kids cancer doctor). Then my life changed (as life does) and after a rough grade 11 and an even worse grade 12, I was left feeling hopeless in the summer of '06. I had graduated highschool with lower that my potential grades and hadn't applied to university. I had even started looking at community colleges (don't get me wrong community colleges are great... but after wanting to go to med school, it just didn't feel like the right fit for me.)
ENTER GAP YEAR!!!
For those of you who don't know a gap year is the year that some students take between highschool and post-secondary education. Some work for the year, some travel Europe, others take a 5th year of highschool. I decided on option 3 (but I was also working full time!)
I had fortunately gotten my life turned around by then and was, finally, headed back on the right track. Because I had already graduated and didn't really need to be at school (plus I had special sign out privileges) My attendance in my 5th year wasn't too stellar. However, I was able to pull my marks up enough to graduate with honours!!! But that's not the important part of the story...
I grew up a lot that year. I had to really manage my time between full time work and full time school. Plus I volunteered in the peer tutoring network and in a grade 2/3 classroom. And I spent a lot of time with friends. Plus I was dealing with all the baggage I was carrying around from the previous two years. You know what else happened in that time?
~ I turned 19: legally old enough to sign myself out of school, to drink, to vote. I became AN ADULT.
~ I realized I wanted to be a teacher and that I loved psychology
~ I made some solid friendships that helped me through the bad days and showed me not everyone wants to hurt you.
~ I was accepted to U of O
~ I learned a lot about who I was and where I wanted to go.
~ I saved money for university and got valuable work experience.
Cons:
~ Abandoned by peers your age. Not very many choose a 5th year of highschool but I promise you'll make new friends. Europe and working will allow you to meet new people too.
~ Feel like you're being left behind... You kind of are BUT when you reach post-secondary there is a huge, huge age range and you'll fit right in.
~ Failure to meet the expectations of friends and (even worse) family. Who cares what they think is "right". Only you can decide for yourself.
The GAP YEAR did a lot for me. But mostly just gave me time to mature. Whether or not you've had a rough time in highschool taking this year to grow and mature is worth your while. I seriously don't think there's a down side to taking your time after highschool to figure out who you are and what you want!!! Knowing that is such a great feeling!
Jenny~Z
ENTER GAP YEAR!!!
For those of you who don't know a gap year is the year that some students take between highschool and post-secondary education. Some work for the year, some travel Europe, others take a 5th year of highschool. I decided on option 3 (but I was also working full time!)
I had fortunately gotten my life turned around by then and was, finally, headed back on the right track. Because I had already graduated and didn't really need to be at school (plus I had special sign out privileges) My attendance in my 5th year wasn't too stellar. However, I was able to pull my marks up enough to graduate with honours!!! But that's not the important part of the story...
I grew up a lot that year. I had to really manage my time between full time work and full time school. Plus I volunteered in the peer tutoring network and in a grade 2/3 classroom. And I spent a lot of time with friends. Plus I was dealing with all the baggage I was carrying around from the previous two years. You know what else happened in that time?
~ I turned 19: legally old enough to sign myself out of school, to drink, to vote. I became AN ADULT.
~ I realized I wanted to be a teacher and that I loved psychology
~ I made some solid friendships that helped me through the bad days and showed me not everyone wants to hurt you.
~ I was accepted to U of O
~ I learned a lot about who I was and where I wanted to go.
~ I saved money for university and got valuable work experience.
Cons:
~ Abandoned by peers your age. Not very many choose a 5th year of highschool but I promise you'll make new friends. Europe and working will allow you to meet new people too.
~ Feel like you're being left behind... You kind of are BUT when you reach post-secondary there is a huge, huge age range and you'll fit right in.
~ Failure to meet the expectations of friends and (even worse) family. Who cares what they think is "right". Only you can decide for yourself.
The GAP YEAR did a lot for me. But mostly just gave me time to mature. Whether or not you've had a rough time in highschool taking this year to grow and mature is worth your while. I seriously don't think there's a down side to taking your time after highschool to figure out who you are and what you want!!! Knowing that is such a great feeling!
Jenny~Z
Friday, June 24, 2011
Groupon may just be the devil!
I love deals! I love sales! I love saving money! But Groupon, Dealfind and all other websites that email/iPhone notify me every day with the newest deal are the devil.
A massage 51% off? YES PLEASE!
$35 for $70 worth of food at ___fill in the blank___ (AMAZING) restaurant? YES PLEASE!!
Hot yoga classes for $56 (regular $103)?? YES PLEASE!!!
New designer shirt for 37% off? YES PLEASE!!!!
Do I need any of these things no? Will I cave in and go for any of these deals? Well, too late already did! But I'm frustrated by the fact that every day I'm bombarded with a bunch of deals I REALLY, REALLY, REALLY..did I mention REALLY want to take advantage but know I shouldn't. And to make matters worse, if it weren't for these sites I'd have no idea the deals existed and there'd be no temptation. I think that alone is enough for me to unsubscribe! Sorry Groupon, you were good to me and I can't wait to eat at the AMAZING restaurant. But that will be my last Groupon.
Jenny~Z
A massage 51% off? YES PLEASE!
$35 for $70 worth of food at ___fill in the blank___ (AMAZING) restaurant? YES PLEASE!!
Hot yoga classes for $56 (regular $103)?? YES PLEASE!!!
New designer shirt for 37% off? YES PLEASE!!!!
Do I need any of these things no? Will I cave in and go for any of these deals? Well, too late already did! But I'm frustrated by the fact that every day I'm bombarded with a bunch of deals I REALLY, REALLY, REALLY..did I mention REALLY want to take advantage but know I shouldn't. And to make matters worse, if it weren't for these sites I'd have no idea the deals existed and there'd be no temptation. I think that alone is enough for me to unsubscribe! Sorry Groupon, you were good to me and I can't wait to eat at the AMAZING restaurant. But that will be my last Groupon.
Jenny~Z
Thursday, June 23, 2011
I hate this decision..
But it's for the best...I will be reducing my monthly debt repayments to the minimum + 10% until I've graduated teacher's college. I'm also reducing my retirement savings to $0. It hurts to say this but its necessary. Otherwise, I won't be able to continue to pay my daily living expenses next year without spiraling down into the debt dungeon. I will continue to make $25 contributions to a non-retirement savings fund (currently my MacBook fund). And I will be cutting other costs.. which brings me to this week's challenge.
I haven't tried to lower my expenses in a while... actually I never have intentionally, except once I got my interest rate lowered to 14.9% and then again to 11.9% So, this week I will be attempting to lower my expenses:
1. internet bill (currently $60 because my promotion that I didn't know was a promotion ended)
2. credit interest rates (I carry a 6K balance @ 11.9%. I doubt I'll be able to lower my student debt as it's already prime+1% but I could try..)
3. rent for next year (currently I have a decent sized 1bdrm for $745 plus utilities.)
4. cell phone ($75/mth, I'm only 2 months into the contract so this may be difficult)
5.car and renter's insurance (combined $250/mth)
Wish me luck,
Jenny~Z
Note: I didn't really explain myself well. I, most likely, will NOT be able to work next year. Teacher's college is a very demanding program and my practicum is 3 hours away from the university so for 1/3 of the year I'll be gone. I will definitely be looking into part time employment for the 2/3 of the year I'm not at my practicum but I'll be taking quite a large income hit (which is really bad when I don't break 20K as it is). So for now, this is the best decision I can make to avoid maxing my credit cards out again!
I haven't tried to lower my expenses in a while... actually I never have intentionally, except once I got my interest rate lowered to 14.9% and then again to 11.9% So, this week I will be attempting to lower my expenses:
1. internet bill (currently $60 because my promotion that I didn't know was a promotion ended)
2. credit interest rates (I carry a 6K balance @ 11.9%. I doubt I'll be able to lower my student debt as it's already prime+1% but I could try..)
3. rent for next year (currently I have a decent sized 1bdrm for $745 plus utilities.)
4. cell phone ($75/mth, I'm only 2 months into the contract so this may be difficult)
5.car and renter's insurance (combined $250/mth)
Wish me luck,
Jenny~Z
Note: I didn't really explain myself well. I, most likely, will NOT be able to work next year. Teacher's college is a very demanding program and my practicum is 3 hours away from the university so for 1/3 of the year I'll be gone. I will definitely be looking into part time employment for the 2/3 of the year I'm not at my practicum but I'll be taking quite a large income hit (which is really bad when I don't break 20K as it is). So for now, this is the best decision I can make to avoid maxing my credit cards out again!
Wednesday, June 22, 2011
Credit Cards
As I've read in many blogs there are two different types of credit card users... okay three actually...
1) Use it, use it, use it... make minimum payments (maybe?) and continue spending
2) Use it, use it, use it.. *f* I'm in over my head... CUT IT UP.. pay it off!
3) Use it, use it, use it.. receive statement... pay it off.
I have had 6 credit cards in my short creditable life... 2 Visas, 2 Mastercards and 2 store cards. I carry a balance on one Visa and am currently throwing all the money I can afford to at it. I use my MC for most expenses and pay my it off every month. (the other 4 are either closed or inactive) Hopefully soon, I'll subscribe solely to method 3 - use it and pay it all off every month.
Why do I like that method? Because I have an inexplicable desire to spend any money in my chequing account but think twice about putting something on credit. I think this comes from being in debt since my 18th birthday (yup, I went out and got in debt the FIRST moment I could). So the only purchases I make with my MC now are the ones I know I have the money for in my bills account (eg. groceries, etc).
There are two added bonuses to this method: a detailed report of where my money has been spent and I collect Air Miles!!
My MC also has a RIDICULOUS interest rate of 19.99% This rate terrifies me, so even when I've gone a little (or a lot) crazy at an Urban Outfitter's sale or eating out 13 times in one week. I ALWAYS.. and I mean ALWAYS pay it off in full.
The important lesson I've learned is to always live within my means. So, if I do actually ever eat out 13 times in one week or overspend at a sale then I need to cut back somewhere else so that I'm able to pay it off.
After finishing this post I decided to catch myself up on what my fave blogs were posting and come to find Budgets are $exy also posted an article today about responsible credit use... Check it out..
1) Use it, use it, use it... make minimum payments (maybe?) and continue spending
2) Use it, use it, use it.. *f* I'm in over my head... CUT IT UP.. pay it off!
3) Use it, use it, use it.. receive statement... pay it off.
I have had 6 credit cards in my short creditable life... 2 Visas, 2 Mastercards and 2 store cards. I carry a balance on one Visa and am currently throwing all the money I can afford to at it. I use my MC for most expenses and pay my it off every month. (the other 4 are either closed or inactive) Hopefully soon, I'll subscribe solely to method 3 - use it and pay it all off every month.
Why do I like that method? Because I have an inexplicable desire to spend any money in my chequing account but think twice about putting something on credit. I think this comes from being in debt since my 18th birthday (yup, I went out and got in debt the FIRST moment I could). So the only purchases I make with my MC now are the ones I know I have the money for in my bills account (eg. groceries, etc).
There are two added bonuses to this method: a detailed report of where my money has been spent and I collect Air Miles!!
My MC also has a RIDICULOUS interest rate of 19.99% This rate terrifies me, so even when I've gone a little (or a lot) crazy at an Urban Outfitter's sale or eating out 13 times in one week. I ALWAYS.. and I mean ALWAYS pay it off in full.
The important lesson I've learned is to always live within my means. So, if I do actually ever eat out 13 times in one week or overspend at a sale then I need to cut back somewhere else so that I'm able to pay it off.
After finishing this post I decided to catch myself up on what my fave blogs were posting and come to find Budgets are $exy also posted an article today about responsible credit use... Check it out..
Tuesday, June 21, 2011
Tax Free Savings Accounts
Okay so this post goes out to all my friends who asked me what the *f* a TFSA is and how it works. Unfortunately, only one of my friends (to my knowledge) knows that I have this blog but who knows maybe other people out there wanna know about TFSAs too...
Now before I get going on the low down I'd like to mention I live in CANADA... the Great White North... so our savings accounts/retirement funds/tax incentives all have different names than in the USA. But the point is the same... stick money in them, leave it there, watch it grow, become RICH!!!! I'd also like to point out that I am NOT in any way trained or really qualified to give expert financial advice. I love Google and reading.. I'm just trying to make sense of all the info that's out there....
So on to the good stuff... Tax Free Savings Accounts are kind of self-explanatory: a savings account that is tax free. Any interest gained in investments is usually taxed, BUT the TFSA allows for us beautiful Canadians to grow our money TAX FREE!!!
There are a few conditions..
1) maximum contribution of $5000/year and don't go over or you pay a hefty "over-contribution tax" (that's my name for it.. dunno what the gov't calls it). More on this in a minute...
2) the contributions are NOT tax-deductible unlike RRSPs *tear*
There are some pretty awesome things about them too..
1) Any unused contribution room is rolled over to the following year
2) Withdrawals are NOT taxed or penalized and the amount can be recontributed in future years! More on this in a minute as well...
3) You choose which investment vessel you'd like to use (eg. savings account, mutual fund, bonds, etc.) and can have mulitple. (but the $5000 max is per person NOT per account)
4) Interest earned is TAX FREE!!! YaY!
So, back to condition number one: (Here's a little story.. a simplified version of what happened to me)
January 1st, 2010: you receive a $5000 bonus from work (or the bank of Grandma and Grandpa) and decide to put it all in your TFSA as a kind of emergency fund
April 1st, 2010: your significant other calls and claims some crazy, ridiculous situation that requires $1000 immediately so you dig into your emergency fund and pull the $1000 for him. (TFSA balance: $4000 [plus interest but that's irrelevant to my story]) But APRIL FOOLS no real situation exists so you go to put that $1000 back in the TFSA and no one stops you (TFSA balance $5000 + interest).
March 23, 2011: filed your taxes WHAT'S UP FREE MONEY?! And your TFSA info is reviewed.
April 14, 2011: letter from taxman saying you OVER CONTRIBUTED to your TFSA last year and you owe like $200, WTF? (okay, I only owed $29 because I was only over by $200 for 2 months... but I hate taxes lol)
The way the over-contribution taxes works is they total what you put in for the year but don't factor in any withdrawals. So in this little situation, according to the taxman, I deposited $6000 and am being taxed on the additional $1000 contribution for the remainder of the year, even though my total balance never exceeded $5000 [+ interest].
BUT, if I had withdrawn the $1000 and actually needed it and NOT recontributed that year, then in January 2011 my contribution limit would be $5000 (for 2011) PLUS the $1000 I had withdrawn. Moral of the story... don't exceed the $5000 max, if you need to withdrawn then do so but don't replenish your TFSA until the next year.
Hope that helps!
Jenny~Z
Now before I get going on the low down I'd like to mention I live in CANADA... the Great White North... so our savings accounts/retirement funds/tax incentives all have different names than in the USA. But the point is the same... stick money in them, leave it there, watch it grow, become RICH!!!! I'd also like to point out that I am NOT in any way trained or really qualified to give expert financial advice. I love Google and reading.. I'm just trying to make sense of all the info that's out there....
So on to the good stuff... Tax Free Savings Accounts are kind of self-explanatory: a savings account that is tax free. Any interest gained in investments is usually taxed, BUT the TFSA allows for us beautiful Canadians to grow our money TAX FREE!!!
There are a few conditions..
1) maximum contribution of $5000/year and don't go over or you pay a hefty "over-contribution tax" (that's my name for it.. dunno what the gov't calls it). More on this in a minute...
2) the contributions are NOT tax-deductible unlike RRSPs *tear*
There are some pretty awesome things about them too..
1) Any unused contribution room is rolled over to the following year
2) Withdrawals are NOT taxed or penalized and the amount can be recontributed in future years! More on this in a minute as well...
3) You choose which investment vessel you'd like to use (eg. savings account, mutual fund, bonds, etc.) and can have mulitple. (but the $5000 max is per person NOT per account)
4) Interest earned is TAX FREE!!! YaY!
So, back to condition number one: (Here's a little story.. a simplified version of what happened to me)
January 1st, 2010: you receive a $5000 bonus from work (or the bank of Grandma and Grandpa) and decide to put it all in your TFSA as a kind of emergency fund
April 1st, 2010: your significant other calls and claims some crazy, ridiculous situation that requires $1000 immediately so you dig into your emergency fund and pull the $1000 for him. (TFSA balance: $4000 [plus interest but that's irrelevant to my story]) But APRIL FOOLS no real situation exists so you go to put that $1000 back in the TFSA and no one stops you (TFSA balance $5000 + interest).
March 23, 2011: filed your taxes WHAT'S UP FREE MONEY?! And your TFSA info is reviewed.
April 14, 2011: letter from taxman saying you OVER CONTRIBUTED to your TFSA last year and you owe like $200, WTF? (okay, I only owed $29 because I was only over by $200 for 2 months... but I hate taxes lol)
The way the over-contribution taxes works is they total what you put in for the year but don't factor in any withdrawals. So in this little situation, according to the taxman, I deposited $6000 and am being taxed on the additional $1000 contribution for the remainder of the year, even though my total balance never exceeded $5000 [+ interest].
BUT, if I had withdrawn the $1000 and actually needed it and NOT recontributed that year, then in January 2011 my contribution limit would be $5000 (for 2011) PLUS the $1000 I had withdrawn. Moral of the story... don't exceed the $5000 max, if you need to withdrawn then do so but don't replenish your TFSA until the next year.
Hope that helps!
Jenny~Z
Monday, June 20, 2011
Two small problems...
These are completely unrelated to finances or being a student really...
1) My extreme distaste for mornings. If I plan on being a teacher I will have to be at school by 8am everyday... at this point in my life that would be impossible... hopefully I will grow into it some time in the next year :S
2) My bladder is the size of a pea (haha no pun intended...ok maybe a little). I literally have to pee every 30 mins. Completely impossible with thirty 5 year old munchkins running around the classroom! lol
Oh boy!
Jenny~Z
ps. I'll keep updating my Week 1 Challenge and return to something finance related tomorrow!
1) My extreme distaste for mornings. If I plan on being a teacher I will have to be at school by 8am everyday... at this point in my life that would be impossible... hopefully I will grow into it some time in the next year :S
2) My bladder is the size of a pea (haha no pun intended...ok maybe a little). I literally have to pee every 30 mins. Completely impossible with thirty 5 year old munchkins running around the classroom! lol
Oh boy!
Jenny~Z
ps. I'll keep updating my Week 1 Challenge and return to something finance related tomorrow!
Sunday, June 19, 2011
Happy birthday little one!
It's one of my bestie's birthday today and I'm pretty stoked cuz we're grabbing breakfast at a family owned diner right by campus. This is my first FNS experience since I graduated. But FNS was good to me during my undergrad with cheap drinks on Sundays and 3.99$ breakfast all week. Should be a good morning cuz it's both specials combined! Haha too bad it's too early to drink!
Also, happy father's day Pops!
Also, happy father's day Pops!
Saturday, June 18, 2011
Giving back...
I've been thinking about giving back a lot recently. Since Christmas I've donate 10% of my tips to a charity, mostly cancer related ones because that's very close to me and my family. But today I've been thinking a lot about food banks.
I went to Europe for 3 months and returned to Canada in November 2009. I had enough money saved to pay my tuition for the winter semester, first and last month's rent and about $500 cash for everything else. Unfortunately, due partially to laziness and partially to living in Tinytown for two months I didn't find a job back in Bigcity until the end of February 2010. By then my $500 was LONG gone and my poor credit cards were suffering. Actually, they were maxed out and I was hungry. I finally caved one day, swallowed my pride and went to my school's food bank. It took three tries for me to walk down the stairs, around the corner and into the office. But finally I did it and was hit by a wave of relief. And I had food in my fridge for the week. I was fortunate enough that I started working shortly after and was able to at least partially feed myself from then on. That was a really hard time in my life. My mother is not a big part of my life and my father isn't in a position he can help me financially... though I know if I had said something he would have sent me money. So I didn't say anything, to anyone.
For the next 6 months I made sure to get something to drop off at the food bank every time I went grocery shopping and when my sorority helped unpack the shipment they received I was there with bells on.
I really wish I hadn't felt ashamed to get help when I really needed it but I'm very very thankful I was able to give back. I think I'm going to start getting something extra for them when I'm grocery shopping! And I truly believe everyone should consider ways to give back to their community... Its just such a great feeling!
Jenny~Z
I went to Europe for 3 months and returned to Canada in November 2009. I had enough money saved to pay my tuition for the winter semester, first and last month's rent and about $500 cash for everything else. Unfortunately, due partially to laziness and partially to living in Tinytown for two months I didn't find a job back in Bigcity until the end of February 2010. By then my $500 was LONG gone and my poor credit cards were suffering. Actually, they were maxed out and I was hungry. I finally caved one day, swallowed my pride and went to my school's food bank. It took three tries for me to walk down the stairs, around the corner and into the office. But finally I did it and was hit by a wave of relief. And I had food in my fridge for the week. I was fortunate enough that I started working shortly after and was able to at least partially feed myself from then on. That was a really hard time in my life. My mother is not a big part of my life and my father isn't in a position he can help me financially... though I know if I had said something he would have sent me money. So I didn't say anything, to anyone.
For the next 6 months I made sure to get something to drop off at the food bank every time I went grocery shopping and when my sorority helped unpack the shipment they received I was there with bells on.
I really wish I hadn't felt ashamed to get help when I really needed it but I'm very very thankful I was able to give back. I think I'm going to start getting something extra for them when I'm grocery shopping! And I truly believe everyone should consider ways to give back to their community... Its just such a great feeling!
Jenny~Z
Budgeting
I'm not one to budget every single penny. I've never recorded every purchase I made for 3 days. And I never would because I don't want to feel guilty about purchases I make with any discretion money. That's what it's for... wasting. But I do see the importance of budgeting. For one it lets you see where your money is going and if you are living within your means.
My budget is an outline of my income and expenses. I like to track my averages over a 4 month period so that I can adjust my numbers as needed.
Income: any incoming money (paychecks, tips, gifts, scholarships, etc.)
Summer: ~ $1000/month
Winter: ~$4000/month
Expenses: Outgoing money
Fixed (amount is the same every month)
Rent: $745.00
Internet: $49.15
Debt Repayment: $300.00
Savings: $100.00
Renter's Insurance: $17.28
Car insurance: $250 (see previous post Car insurance to understand why its so much)
Variable (these amounts change every month)
Cell Phone: $75.00 (4 month average: $195.00 but that includes the cost of my new iPhone 4)
Hydro: $25.00 (4 month average: $21.13)
Groceries: $150 (4 month average: $131.25)
Gas: $50 (car too new for an average, will be increasing to $150 in September boo..)
Other Categories (either not budgeted for or very irregular expenses)
NU (school): Used to track deposits, tuition, books, school supplies, etc.
Dining out: Not budgeted for, no monthly average yet as it's a new category
Clothing: Not budgeted for, 6 month average: $67.40
Personal: Not budgeted for, used to track personal items (eg. shampoo, soap, haircuts, etc.) 6 month average: $116.25
Home: Not budgeted for, used to track purchases for the house (eg. cleaning products, decorations, organizing supplies, etc.) 6 month average: $70.98
Totals
Fixed Expenses: $1461.43
Variable Expenses: $300
Other: $254.63
May Income: $1400
Total Expenses: $2016.06
Monthly Cash Flow: ($616.06)
I know... BAD NEW BEARS. I'm WAY over spending. But May is part of my summer income when the restaurant slooooowed right down. Which is why it's important to know that during the Winter months when my income was double I stashed all excess money away in preparation for this! I was able to save $5000 in my bills account.
My monthly income for the past 8 months (since I started tracking it) is $2572.89 which means my stockpiling of money during the good times should get me through the rough summer months. But to be safe, I've picked up a second job and will be giving myself weekly challenges to help improve my spending/saving habits!
Last important point, the reason I don't budget for dining out, clothing, home and personal is so that I don't feel entitled to these purchases. By not giving myself a budget for these expenses I am more likely to question spending the money because it is in EXCESS of my budget. This method is not for everyone but it works for me. For these kinds of purchases its important to always ask: "DO I REALLY...REALLY NEED THIS?" If you aren't sure then sit on the purchase for a couple days. If you do really need it you will still need it in a couple days!
Happy Budgeting,
Jenny~Z
My budget is an outline of my income and expenses. I like to track my averages over a 4 month period so that I can adjust my numbers as needed.
Income: any incoming money (paychecks, tips, gifts, scholarships, etc.)
Summer: ~ $1000/month
Winter: ~$4000/month
Expenses: Outgoing money
Fixed (amount is the same every month)
Rent: $745.00
Internet: $49.15
Debt Repayment: $300.00
Savings: $100.00
Renter's Insurance: $17.28
Car insurance: $250 (see previous post Car insurance to understand why its so much)
Variable (these amounts change every month)
Cell Phone: $75.00 (4 month average: $195.00 but that includes the cost of my new iPhone 4)
Hydro: $25.00 (4 month average: $21.13)
Groceries: $150 (4 month average: $131.25)
Gas: $50 (car too new for an average, will be increasing to $150 in September boo..)
Other Categories (either not budgeted for or very irregular expenses)
NU (school): Used to track deposits, tuition, books, school supplies, etc.
Dining out: Not budgeted for, no monthly average yet as it's a new category
Clothing: Not budgeted for, 6 month average: $67.40
Personal: Not budgeted for, used to track personal items (eg. shampoo, soap, haircuts, etc.) 6 month average: $116.25
Home: Not budgeted for, used to track purchases for the house (eg. cleaning products, decorations, organizing supplies, etc.) 6 month average: $70.98
Totals
Fixed Expenses: $1461.43
Variable Expenses: $300
Other: $254.63
May Income: $1400
Total Expenses: $2016.06
Monthly Cash Flow: ($616.06)
I know... BAD NEW BEARS. I'm WAY over spending. But May is part of my summer income when the restaurant slooooowed right down. Which is why it's important to know that during the Winter months when my income was double I stashed all excess money away in preparation for this! I was able to save $5000 in my bills account.
My monthly income for the past 8 months (since I started tracking it) is $2572.89 which means my stockpiling of money during the good times should get me through the rough summer months. But to be safe, I've picked up a second job and will be giving myself weekly challenges to help improve my spending/saving habits!
Last important point, the reason I don't budget for dining out, clothing, home and personal is so that I don't feel entitled to these purchases. By not giving myself a budget for these expenses I am more likely to question spending the money because it is in EXCESS of my budget. This method is not for everyone but it works for me. For these kinds of purchases its important to always ask: "DO I REALLY...REALLY NEED THIS?" If you aren't sure then sit on the purchase for a couple days. If you do really need it you will still need it in a couple days!
Happy Budgeting,
Jenny~Z
Friday, June 17, 2011
Car Insurance
I'm a pretty good driver. At least I'd like to think I am... But today I got an email from my insurance company telling me that my insurance is DOUBLING from $1400/year to $2700/year because of a speeding ticket I got in 2009. The ticket was for 110km in a 100km zone. It was a $40 ticket and NO demerit points. So I'm confused... it wasn't bad enough to hurt my driving record but its bad enough to DOUBLE my insurance. I'm kind of upset... kind of very upset. Though, at the same time I don't feel like I necessarily have the right to be mad. I mean I was speeding. This sucks. I'm gonna give them a call tomorrow and see if I can get more information and possibly lower my quote at least a little bit.
Fingers crossed...
Back to struggling,
Jenny~Z
Update: Yes its only been 5 minutes but I pulled out the speeding ticket to confirm that I was remembering correctly and found that the date the insurance company has stated in their email isn't even the same month as the ticket I received. I wonder if this is just a clerical thing (when the ticket was entered in the system) or just completely incorrect information. I'm now very excited about my phone call tomorrow!!
Update: An hour later...Following the increase in my insurance I was FURIOUS! Mostly because I didn't know where I'd get the money to cover the increase from... So, I pulled up my excel budget and to my surprise I had already budgeted $400 for monthly car expenses. This is good news (my previous actual monthly costs were closer to $250-300). This frustrating moment has practically been nullified by my intense need to over estimate costs. If I cannot get the premium lowered I'll still probably juggle my budget around (to increase my bugeted car expenses to $500 if possible), at least its not quite as devastating as I originally thought. I'll just have to be more careful with fuel costs and trim down my extra spending a bit more but I should survive!!!
Fingers crossed...
Back to struggling,
Jenny~Z
Update: Yes its only been 5 minutes but I pulled out the speeding ticket to confirm that I was remembering correctly and found that the date the insurance company has stated in their email isn't even the same month as the ticket I received. I wonder if this is just a clerical thing (when the ticket was entered in the system) or just completely incorrect information. I'm now very excited about my phone call tomorrow!!
Update: An hour later...Following the increase in my insurance I was FURIOUS! Mostly because I didn't know where I'd get the money to cover the increase from... So, I pulled up my excel budget and to my surprise I had already budgeted $400 for monthly car expenses. This is good news (my previous actual monthly costs were closer to $250-300). This frustrating moment has practically been nullified by my intense need to over estimate costs. If I cannot get the premium lowered I'll still probably juggle my budget around (to increase my bugeted car expenses to $500 if possible), at least its not quite as devastating as I originally thought. I'll just have to be more careful with fuel costs and trim down my extra spending a bit more but I should survive!!!
Thursday, June 16, 2011
Challenging myself... Week 1
Hii All,
So my work week is usually Thursday-Monday. Restaurants aren't very busy Monday/Tuesday/Wednesday so its the perfect time for me to relax and run errands!! Over my "weekend" I reviewed my finances to see where I could improve...
One of my greatest downfalls is eating at my restaurant. I get 50% off my meal but my fridge is usually full of food and I'm not a horrible cook. So eating at my restaurant means spending money when I don't have to. The one good thing is that the money comes directly from my tips and just kinda disappears. But in the back of my head I still know I've spent it!
So this week I'm challenging myself to spend less than 10% of my tip money on food after my shift. For example if I make $100 then I can spend $10 on my meal. If I make $15 then I can spend $1.50 eating... Yesterday I made $70 but had a doctors appointment and had to leave without eating so I pocketed the $7!!!
I'm excited to see the results of this challenge!!
Friday Update: [The Ex] Made $30 and spent $4.00 on a small pasta special. A little over but since I was wayyy under yesterday I don't feel guilty! (Week sum: $4)
[O] Made ZERO and spent ZERO... Perfect! (Brand new restaurant that's lacking advertising :O )
Saturday Update: [The Ex] Made $70 and spent $5 on a salad! (Week sum: $9)
Sunday Update: [The Ex] Made $90 and spent $0 (Week sum: $9 of a possible $26!!)
Monday Update: [The Ex] Made $3 and spent $0 ... [O] Made $0, spent $0 (Week sum: $9 of a possible $26.30)
I think this was a success... I now have a 3 day weekend! Enjoy your Tues/Wed/Thurs.. for me it Friday Friday... na na na na Friday (think Rebecca Black)
Jenny~Z
So my work week is usually Thursday-Monday. Restaurants aren't very busy Monday/Tuesday/Wednesday so its the perfect time for me to relax and run errands!! Over my "weekend" I reviewed my finances to see where I could improve...
One of my greatest downfalls is eating at my restaurant. I get 50% off my meal but my fridge is usually full of food and I'm not a horrible cook. So eating at my restaurant means spending money when I don't have to. The one good thing is that the money comes directly from my tips and just kinda disappears. But in the back of my head I still know I've spent it!
So this week I'm challenging myself to spend less than 10% of my tip money on food after my shift. For example if I make $100 then I can spend $10 on my meal. If I make $15 then I can spend $1.50 eating... Yesterday I made $70 but had a doctors appointment and had to leave without eating so I pocketed the $7!!!
I'm excited to see the results of this challenge!!
Friday Update: [The Ex] Made $30 and spent $4.00 on a small pasta special. A little over but since I was wayyy under yesterday I don't feel guilty! (Week sum: $4)
[O] Made ZERO and spent ZERO... Perfect! (Brand new restaurant that's lacking advertising :O )
Saturday Update: [The Ex] Made $70 and spent $5 on a salad! (Week sum: $9)
Sunday Update: [The Ex] Made $90 and spent $0 (Week sum: $9 of a possible $26!!)
Monday Update: [The Ex] Made $3 and spent $0 ... [O] Made $0, spent $0 (Week sum: $9 of a possible $26.30)
I think this was a success... I now have a 3 day weekend! Enjoy your Tues/Wed/Thurs.. for me it Friday Friday... na na na na Friday (think Rebecca Black)
Jenny~Z
10 money mistakes I made during my undergrad
1. Paying cash for the bus. Bigcity has bus tickets and bus passes that save MEGA bucks over paying cash. I wish I had gone the extra block to buy bus tickets!
2. Buying brand new textbooks. I barely opened a lot of my textbooks especially the general knowledge ones from first year. Used would have been a much better buy...
3. Also, not selling my textbooks back when I had the chance. Now I'm stuck with a bunch of books I didn't read when I HAD to.. why would I read them now by CHOICE??
4. Cash advance my line of credit to pay my line of credit payment! I'm lucky that I didn't get hit with cash advance fees but still not a good idea because I wasn't helping my overall debt situation. The bank never told me to stop but if you are paying the card off this way you aren't really paying anything off.
5. Cash advancing my VISA. Not only did I have to pay cash advance fees on this card but I also was hit with interest from day 1. No grace period :(
6. Eating out.. EVERY SINGLE DAY. Yes, I had a meal plan that was tax exempt but I still ate at restaurants not covered by my meal plan very, very frequently.
7. Intoxication. Don't get me wrong, getting way too drunk, way too often is DEFINITELY a part of first (and second) year (okay maybe third year too). But you have to do it the right way. Go to the liquor store, buy the biggest bottle you can and make it last as long as you can. DO NOT go out to bars sober. It's way, way too expensive. Unless you're a pretty girl.... but that's another story ;)
8. Not calling to see if I could lower my interest rates on my credit cards. The minute I did that I noticed a HUGE difference in my monthly charges.
9. Cable, internet and a landline in second year. I got the WHOLE kitten caboodle. The fancy channels, the faster speed and caller ID. Like I need to screen my calls. Waste of money!!
10. Laundry.. okay I'm lying but you all know how much I hate laundry. I moved to 2 different apartments where I had to pay for laundry (including my current one)... but the rent is/was cheaper...so its a cost I guess I've accepted!
Hopefully this list will help you struggle a bit less through your undergrad. Always try to live within your means. Even if its next to impossible during school!
Jenny~Z!
2. Buying brand new textbooks. I barely opened a lot of my textbooks especially the general knowledge ones from first year. Used would have been a much better buy...
3. Also, not selling my textbooks back when I had the chance. Now I'm stuck with a bunch of books I didn't read when I HAD to.. why would I read them now by CHOICE??
4. Cash advance my line of credit to pay my line of credit payment! I'm lucky that I didn't get hit with cash advance fees but still not a good idea because I wasn't helping my overall debt situation. The bank never told me to stop but if you are paying the card off this way you aren't really paying anything off.
5. Cash advancing my VISA. Not only did I have to pay cash advance fees on this card but I also was hit with interest from day 1. No grace period :(
6. Eating out.. EVERY SINGLE DAY. Yes, I had a meal plan that was tax exempt but I still ate at restaurants not covered by my meal plan very, very frequently.
7. Intoxication. Don't get me wrong, getting way too drunk, way too often is DEFINITELY a part of first (and second) year (okay maybe third year too). But you have to do it the right way. Go to the liquor store, buy the biggest bottle you can and make it last as long as you can. DO NOT go out to bars sober. It's way, way too expensive. Unless you're a pretty girl.... but that's another story ;)
8. Not calling to see if I could lower my interest rates on my credit cards. The minute I did that I noticed a HUGE difference in my monthly charges.
9. Cable, internet and a landline in second year. I got the WHOLE kitten caboodle. The fancy channels, the faster speed and caller ID. Like I need to screen my calls. Waste of money!!
10. Laundry.. okay I'm lying but you all know how much I hate laundry. I moved to 2 different apartments where I had to pay for laundry (including my current one)... but the rent is/was cheaper...so its a cost I guess I've accepted!
Hopefully this list will help you struggle a bit less through your undergrad. Always try to live within your means. Even if its next to impossible during school!
Jenny~Z!
Wednesday, June 15, 2011
Update
Just an update about some prior posts...
I posted before about my new job at O, the possibly sketchy restaurant beside a strip club. Well I got a call on Monday asking me to come in Tuesday for my first shift. I worked yesterday and this place is as far from sketchy as you can get! The place wasn't full but it's CLASSY! I'm very excited to work there!!
I also mentioned that I'm waiting for some insurance claims. Its a lot of money (close to $1000) that I shelled out for medications, dental work and eye appointments over the past month so I've been anxiously checking my account and the insurer's website daily (ok multiple times daily lol). Finally they have all appeared on the website. They are labelled in process so hopefully by the end of the week I will have the money deposited into my account!!!
Update: Its Friday morning and the money is in my account! SWEET!
YaY!!!
Jenny~Z
I posted before about my new job at O, the possibly sketchy restaurant beside a strip club. Well I got a call on Monday asking me to come in Tuesday for my first shift. I worked yesterday and this place is as far from sketchy as you can get! The place wasn't full but it's CLASSY! I'm very excited to work there!!
I also mentioned that I'm waiting for some insurance claims. Its a lot of money (close to $1000) that I shelled out for medications, dental work and eye appointments over the past month so I've been anxiously checking my account and the insurer's website daily (ok multiple times daily lol). Finally they have all appeared on the website. They are labelled in process so hopefully by the end of the week I will have the money deposited into my account!!!
Update: Its Friday morning and the money is in my account! SWEET!
YaY!!!
Jenny~Z
What I'm NOT saving for..
I've stolen this idea from Budgets Are $exy. I think its a wonderful idea so here's my list...
1. A house. Despite the fact I absolutely HATE renting and paying another person's mortgage I realize at the is point in my life I don't have the cash flow to set aside enough money for a down payment. Also I will be moving across the province for teacher's college and have no idea where I'll go from there.
2. A new car. I just bought a 2001 Mazda Protege with less than 90k on it. This car should last me at least 2-3 years because its in such good condition.
3. My trip to Saskatchewan in August. Okay this is probably REALLY bad. Because I'm going, I've already made my mind up. And I have no money for it. But I just started a new job so I will be saving for it soon.
4. Stuff. I'm not looking to buy more things to clutter up my tiny apartment. Eg. decorations, pictures, books, cds, movies.
5. Expensive clothing. I am saving for a wardrobe overhaul, however I plan to do it at thrift stores, friend's closets and sales merchandise NOT name brand, expensive clothing.
6. My Wedding. So because 4 & 5 are relatively similar, I've added this one. I have been (as many young girls) dreaming of my wedding forEVER, however, I have yet to find Mr. Right and so saving for this costly endeavor is not in the cards right now!
~~~
So what am I saving for?
1. A new Macbook Pro. My current computer is 4 years old and still works pretty good, though it overheats at least once every couple days. Because it will be an integral part of my course work next year I would like to replace it prior to September. I have about $1,000 saved already so with educational discounts I should be able to buy it mid-August!
2. Teacher's College. As I've posted before, my tuition is $8,000 plus all the costs of living. I'm lucky enough to have a provincial/federal student loan but it won't cover everything. So I'm working to increase my general savings so that I won't have to dig out my credit card.
3. A new bed. I currently sleep on a futon. Its SUPER comfortable but it means I'm in my living room because it doubles as my couch. I would really like to move into the bedroom.
4. Retirement. I was extremely fortunate to be given $500 in mutual funds for grade 8 graduation from my dad. The mutual fund remained in trust until I turned 18 at which point my dad and I figured out what to do with the $3000 it had become (GREAT GROWTH Eh?). I decided to split the $3000 into a retirement fund and a non-registered fund. I now have almost $6,000 saved for retirement!!! Yay, monthly contributions and TIME! I'm really looking forward to hitting the $7,500 and the $10,000 marks! Hopefully within the next few years!
5. Car repairs. My car is in really good shape but it is 10 years old. I am saving for regular maintenance costs as well as those wonderful surprise repairs I will face!
So there you have it, 5 things I'm NOT saving for and 5 things I AM! It definitely puts things in perspective to write this list!
Jenny~Z
1. A house. Despite the fact I absolutely HATE renting and paying another person's mortgage I realize at the is point in my life I don't have the cash flow to set aside enough money for a down payment. Also I will be moving across the province for teacher's college and have no idea where I'll go from there.
2. A new car. I just bought a 2001 Mazda Protege with less than 90k on it. This car should last me at least 2-3 years because its in such good condition.
3. My trip to Saskatchewan in August. Okay this is probably REALLY bad. Because I'm going, I've already made my mind up. And I have no money for it. But I just started a new job so I will be saving for it soon.
4. Stuff. I'm not looking to buy more things to clutter up my tiny apartment. Eg. decorations, pictures, books, cds, movies.
5. Expensive clothing. I am saving for a wardrobe overhaul, however I plan to do it at thrift stores, friend's closets and sales merchandise NOT name brand, expensive clothing.
6. My Wedding. So because 4 & 5 are relatively similar, I've added this one. I have been (as many young girls) dreaming of my wedding forEVER, however, I have yet to find Mr. Right and so saving for this costly endeavor is not in the cards right now!
~~~
So what am I saving for?
1. A new Macbook Pro. My current computer is 4 years old and still works pretty good, though it overheats at least once every couple days. Because it will be an integral part of my course work next year I would like to replace it prior to September. I have about $1,000 saved already so with educational discounts I should be able to buy it mid-August!
2. Teacher's College. As I've posted before, my tuition is $8,000 plus all the costs of living. I'm lucky enough to have a provincial/federal student loan but it won't cover everything. So I'm working to increase my general savings so that I won't have to dig out my credit card.
3. A new bed. I currently sleep on a futon. Its SUPER comfortable but it means I'm in my living room because it doubles as my couch. I would really like to move into the bedroom.
4. Retirement. I was extremely fortunate to be given $500 in mutual funds for grade 8 graduation from my dad. The mutual fund remained in trust until I turned 18 at which point my dad and I figured out what to do with the $3000 it had become (GREAT GROWTH Eh?). I decided to split the $3000 into a retirement fund and a non-registered fund. I now have almost $6,000 saved for retirement!!! Yay, monthly contributions and TIME! I'm really looking forward to hitting the $7,500 and the $10,000 marks! Hopefully within the next few years!
5. Car repairs. My car is in really good shape but it is 10 years old. I am saving for regular maintenance costs as well as those wonderful surprise repairs I will face!
So there you have it, 5 things I'm NOT saving for and 5 things I AM! It definitely puts things in perspective to write this list!
Jenny~Z
Tuesday, June 14, 2011
Paying off debt
Here's a few tips on paying off debt... Usually called the "Snowball Method"
1. Create a list of all your debts (Credit cards, loans, mortgages, student debt, lines of credit, etc). Include the amount and interest rate.
My debts are:
-credit card #1: $6,865.39 (11.9%)
-student loans: $27,268.94 (4.00%)
2. Figure out how much you can afford each month. I personally put $300 towards debt each month. No matter how much you feel you can afford be sure to pay AT LEAST the minimum towards each debt EVERY single month. This prevents your interest rate from increasing and protects your credit rating.
3. Order your debts from highest to lowest interest rate (as I did above)
4. Make the minimum payments to ALL debt except the one at the top of your list. Then pay the remainder to this top debt.
Because I'm still in school I only pay $75 towards my student loan every month (interest only payments) and the remaining $225 goes towards my credit card.
**I do have a second credit card that I use on a regular basis for things like groceries and person items. I haven't included it in my list because I pay it off in full every month.
**Additionally, I choose to pay an extra 10% towards my student loan outside of this $300. Its only about $10 depending on the month and it makes me feel like I'm making a bit extra progress each month for very little!
Once you've paid off the top debt move on to the second one then the third then the fourth... Sooner than you realize you'll be debt free!!!!
Struggling (as always),
Jenny~Z
1. Create a list of all your debts (Credit cards, loans, mortgages, student debt, lines of credit, etc). Include the amount and interest rate.
My debts are:
-credit card #1: $6,865.39 (11.9%)
-student loans: $27,268.94 (4.00%)
2. Figure out how much you can afford each month. I personally put $300 towards debt each month. No matter how much you feel you can afford be sure to pay AT LEAST the minimum towards each debt EVERY single month. This prevents your interest rate from increasing and protects your credit rating.
3. Order your debts from highest to lowest interest rate (as I did above)
4. Make the minimum payments to ALL debt except the one at the top of your list. Then pay the remainder to this top debt.
Because I'm still in school I only pay $75 towards my student loan every month (interest only payments) and the remaining $225 goes towards my credit card.
**I do have a second credit card that I use on a regular basis for things like groceries and person items. I haven't included it in my list because I pay it off in full every month.
**Additionally, I choose to pay an extra 10% towards my student loan outside of this $300. Its only about $10 depending on the month and it makes me feel like I'm making a bit extra progress each month for very little!
Once you've paid off the top debt move on to the second one then the third then the fourth... Sooner than you realize you'll be debt free!!!!
Struggling (as always),
Jenny~Z
Sunday, June 12, 2011
The famous emergency fund
As a recent graduate (its been about 6 hours since I walked across the stage) I'm swimming in debt. And it sucks, plain and simple. And every single personal finance book I pick up rambles on and on about emergency funds. I know what you're thinking... "Where the *f* do you think I'm going to find $5000 to just sit in an account so that *if* I lose my job at *insert crappy part-time student job you hate anyways here* I'll be able to survive for 3 months??"
Well as you can see from my previous post, I do indeed have an emergency fund now. Its currently about $2600 which would last me about 2 months if I really tried hard to make it last. Saving this emergency fund has been extremely difficult but there's a good reason I do it. I have very little extra money each month so when, (NOT if) WHEN something happens... like $240 for an unexpected eye exam or $400 for two new tires (that I popped) on my friends car or $50 for a new screen window the creepy burglar man broke trying to break in, the emergency fund ensures I have the money to cover the cost without depleting my spending money or stopping me from paying my bills on time or from pulling a credit card out.
It took a couple of "oh no" moments for me to realize I needed some money there for these times because my poor credit card just kept getting hit... HARD. So how did I do it??
1. I came up with some longish term goals including an amount. I feel like having these goals gives me something to strive towards.
--- new furniture ($2000)
--- a new camera ($2000)
--- a car ($10,000)
--- emergencies ($500)
2. I began putting $10 towards each goal into a Tax-Free Savings Account each month.
3. I assessed my financial situation to figure out how much money I need tucked away to feel comfortable and decided about $3000 would be good for me at this point.
4. If I successfully tuck away enough to buy that camera or new bed then by all means I will buy it! And begin the process of rebuilding my emergency fund!
I will be re-assessing this plan in August because goals and needs change but for now I stick to my plan (even though I already bought a car)!! And I really think that everyone should have a plan to help guide you where you're going, even if you deviate (frequently) :D
After thought: While $3000 is my goal that doesn't mean it fits your needs or financial situation. Start a Baby Emergency Fund by saving a smaller amount first like $500. Then build it to $1000 and then $2000. Just put a little bit aside so that you feel comfortable and you won't have to pull out your credit cards in a time of "OH NOOOOO"
Yours in the struggles of student life,
Jenny~Z
ps. Having just graduate I very very much feel like the debt I've accumulated over the past 4 years has been more than worth while. Education... no wait KNOWLEDGE is priceless, because no one can ever take it from you!
Well as you can see from my previous post, I do indeed have an emergency fund now. Its currently about $2600 which would last me about 2 months if I really tried hard to make it last. Saving this emergency fund has been extremely difficult but there's a good reason I do it. I have very little extra money each month so when, (NOT if) WHEN something happens... like $240 for an unexpected eye exam or $400 for two new tires (that I popped) on my friends car or $50 for a new screen window the creepy burglar man broke trying to break in, the emergency fund ensures I have the money to cover the cost without depleting my spending money or stopping me from paying my bills on time or from pulling a credit card out.
It took a couple of "oh no" moments for me to realize I needed some money there for these times because my poor credit card just kept getting hit... HARD. So how did I do it??
1. I came up with some longish term goals including an amount. I feel like having these goals gives me something to strive towards.
--- new furniture ($2000)
--- a new camera ($2000)
--- a car ($10,000)
--- emergencies ($500)
2. I began putting $10 towards each goal into a Tax-Free Savings Account each month.
3. I assessed my financial situation to figure out how much money I need tucked away to feel comfortable and decided about $3000 would be good for me at this point.
4. If I successfully tuck away enough to buy that camera or new bed then by all means I will buy it! And begin the process of rebuilding my emergency fund!
I will be re-assessing this plan in August because goals and needs change but for now I stick to my plan (even though I already bought a car)!! And I really think that everyone should have a plan to help guide you where you're going, even if you deviate (frequently) :D
After thought: While $3000 is my goal that doesn't mean it fits your needs or financial situation. Start a Baby Emergency Fund by saving a smaller amount first like $500. Then build it to $1000 and then $2000. Just put a little bit aside so that you feel comfortable and you won't have to pull out your credit cards in a time of "OH NOOOOO"
Yours in the struggles of student life,
Jenny~Z
ps. Having just graduate I very very much feel like the debt I've accumulated over the past 4 years has been more than worth while. Education... no wait KNOWLEDGE is priceless, because no one can ever take it from you!
Friday, June 10, 2011
The low down on my personal finances
So I figure its about time I write down my current financial situation. Putting things in black and white (and red) for the world to see makes it that much more real.
Assets
Checking Account: $ 3.63
Savings Account #1: $ 1,373.88 ..... (Bills)
Savings Account #2: $ 2,662.41 ..... (Emergency/Short Term Savings)
Savings Account #3: $ 1,077.56 ..... (Savings for my required new MacBook)
Other Cash: $ 181.98
Registered Accounts: $ 5,447.55
Total Assets: $10,747.01
Liabilities
Credit Card #1: $ 6,865.39 ..... (Balance is carried)
Credit Card #2: $ 657.93 ..... (Balance paid in full every month)
Student Loans: $27,268.94
Total Liabilities: $34,792.26
Networth: ($21,545.25) ..... (Brackets denote negative amount)
Over the remainder of the summer my bills account should remain fairly stable, the emergency account will (hopefully) grow to $3000, my registered accounts will grow by $200 due to $100/month automatic savings and my credit card #1 will be (hopefully) reduced to $6300.
Unfortunately, tuition for my next year of school is almost $8,000 and I will be moving in mid-August across the province which will be expensive but with the help of my parents we should be able to rent a U-Haul and do the work ourselves. I also plan on taking a trip to Saskatchewan to visit some friends, the drive will take about 3 days each way and I'm very excited for the getaway but not really financially prepared yet. But I have a plan.. *I think*
For anyone who is curious, networth is calculated by subtracting any liabilities (credit card debt, loans, mortgages, etc.) from any assets (retirement funds, savings, cash, cars, home equity etc). I own a car worth about $2500 however, have decided to leave that out of my networth due to the rapid depreciation of cars. Most of my assets are in very simple savings accounts for the time being.
If your networth is positive then you have more assets than liabilities and your over financial health is probably good. If your networth is negative then you have more liabilities than assets and you should investigate your situation closely to figure out why. Also, try to develop a strategy to get on the right track. Personally, my networth is in the negative primarily due to my student loans. I have a long term plan for paying off my debt which I will outline in a later post!
Enjoy the weekend :) I graduate on Sunday so I know I will!!
Struggling though enjoying life,
Jenny~Z
Assets
Checking Account: $ 3.63
Savings Account #1: $ 1,373.88 ..... (Bills)
Savings Account #2: $ 2,662.41 ..... (Emergency/Short Term Savings)
Savings Account #3: $ 1,077.56 ..... (Savings for my required new MacBook)
Other Cash: $ 181.98
Registered Accounts: $ 5,447.55
Total Assets: $10,747.01
Liabilities
Credit Card #1: $ 6,865.39 ..... (Balance is carried)
Credit Card #2: $ 657.93 ..... (Balance paid in full every month)
Student Loans: $27,268.94
Total Liabilities: $34,792.26
Networth: ($21,545.25) ..... (Brackets denote negative amount)
Over the remainder of the summer my bills account should remain fairly stable, the emergency account will (hopefully) grow to $3000, my registered accounts will grow by $200 due to $100/month automatic savings and my credit card #1 will be (hopefully) reduced to $6300.
Unfortunately, tuition for my next year of school is almost $8,000 and I will be moving in mid-August across the province which will be expensive but with the help of my parents we should be able to rent a U-Haul and do the work ourselves. I also plan on taking a trip to Saskatchewan to visit some friends, the drive will take about 3 days each way and I'm very excited for the getaway but not really financially prepared yet. But I have a plan.. *I think*
For anyone who is curious, networth is calculated by subtracting any liabilities (credit card debt, loans, mortgages, etc.) from any assets (retirement funds, savings, cash, cars, home equity etc). I own a car worth about $2500 however, have decided to leave that out of my networth due to the rapid depreciation of cars. Most of my assets are in very simple savings accounts for the time being.
If your networth is positive then you have more assets than liabilities and your over financial health is probably good. If your networth is negative then you have more liabilities than assets and you should investigate your situation closely to figure out why. Also, try to develop a strategy to get on the right track. Personally, my networth is in the negative primarily due to my student loans. I have a long term plan for paying off my debt which I will outline in a later post!
Enjoy the weekend :) I graduate on Sunday so I know I will!!
Struggling though enjoying life,
Jenny~Z
Exciting Morning
I received an email today in regards to my federal/provincial student loans for next year! I have been approved for $12,600 which will help immensely paying for next year. It will also add a hefty sum to my student debt but I can live with that.
Later today.. the break down of my current financial situation.. scary to put it all in black and white!
Struggling a little less today,
Jenny~Z
:D
Later today.. the break down of my current financial situation.. scary to put it all in black and white!
Struggling a little less today,
Jenny~Z
:D
Thursday, June 9, 2011
Sustainability
Today after work I had just under 2 hours to kill before my chiro appointment so I went across the street to Chapters and picked up a great book called "The New Frugality" by Chris Farrell. I was only able to get through a couple chapters before my back started hurting from sitting on the floor but it really got my attention. The book focuses on spending well not being cheap and how consumers are shifting from extreme consumerism to a more frugal & green mind frame.
I really liked the focus on living what Farrell calls the good life.
1. Making sure to spend money on the important things: health, education and family NOT on things.
2.Anything we purchase should be sustainable. For example, spending $2000 on a bike and getting rid of our car is frugal and green! The switch to biking is good for the environment, health and finances!
3. Additionally, making quality purchases that will last instead of cheap ones is also part of the NEW frugality.
I'm very excited to continue reading this book as these are concepts I wholeheartedly believe in and cannot wait to incorporate more of these principles into my daily life!
Still struggling, but feeling good,
Jenny~Z
I really liked the focus on living what Farrell calls the good life.
1. Making sure to spend money on the important things: health, education and family NOT on things.
2.Anything we purchase should be sustainable. For example, spending $2000 on a bike and getting rid of our car is frugal and green! The switch to biking is good for the environment, health and finances!
3. Additionally, making quality purchases that will last instead of cheap ones is also part of the NEW frugality.
I'm very excited to continue reading this book as these are concepts I wholeheartedly believe in and cannot wait to incorporate more of these principles into my daily life!
Still struggling, but feeling good,
Jenny~Z
Wednesday, June 8, 2011
So who am I?
I probably should have introduced myself in my first post but better late than never...
I'm a 23 year old girl.. with a super complicated name that most people just shorten to some form of Jen... whatever works :D
I just graduated with a specialized B.A. in psychology and a minor in French.
I am single and lovin' it. Though a boyfriend would be nice..
I love traveling.. a caught the bug in 2009 when I backpacked through Europe for 3 months
My favorite show ever ever is Criminal Minds
Lion King and Little Mermaid are childhood favorites.
Inception, Hangover and Pretty Woman are my favorite movies. Oh and Titanic too!
I started this blog to (hopefully) help keep me on track financially. There isn't a lot of information out there from a student point of view and how to make it through university without resorting to ramen noodles and canned soup everyday... So come along on this journey as I talk about student debt, credit cards, saving and part time job disasters. And some side notes of course!!
I'm a 23 year old girl.. with a super complicated name that most people just shorten to some form of Jen... whatever works :D
I just graduated with a specialized B.A. in psychology and a minor in French.
I am single and lovin' it. Though a boyfriend would be nice..
I love traveling.. a caught the bug in 2009 when I backpacked through Europe for 3 months
My favorite show ever ever is Criminal Minds
Lion King and Little Mermaid are childhood favorites.
Inception, Hangover and Pretty Woman are my favorite movies. Oh and Titanic too!
I started this blog to (hopefully) help keep me on track financially. There isn't a lot of information out there from a student point of view and how to make it through university without resorting to ramen noodles and canned soup everyday... So come along on this journey as I talk about student debt, credit cards, saving and part time job disasters. And some side notes of course!!
Haircut, doctors, dentist, blah
One of my best friends and I were at the movies last night and I asked to steal some freezies.. yes I'm that cheap I'd rather steal from a friend than buy something for .99 cents so as we were arranging a time for me to come get them it became apparent that I have recently had 400 appointments which let me tell you is EXPENSIVE. Today, hair, yesterday chiropractor, last week eye doctor (and GP but that was free), the week before dentist for the 3rd time in 2 weeks...... Next time I've gotta plan it out a bit better so that I'm not out about 600$ waiting for insurance claims to go through.
Also, yesterday, I spent a great long time reading a blog which has inspired me. I just saw the time and realize I'm gonna be late for my appointment but keep reading for three things... who I am (I never really introduced myself), my approximate networth and my 21 days saving spree!
Still struggling,
Jenny~Z
Also, yesterday, I spent a great long time reading a blog which has inspired me. I just saw the time and realize I'm gonna be late for my appointment but keep reading for three things... who I am (I never really introduced myself), my approximate networth and my 21 days saving spree!
Still struggling,
Jenny~Z
Tuesday, June 7, 2011
The end of it all...
Okay, I'm being over dramatic, very over dramatic. But graduation is 5 days away and its the end of my undergrad. I still remember months before moving here to Bigtown from Tinyville conversing with my long time best friend about how the next thing we'd know is that our last high school summer would be over and university life would have begun... seems like yesterday. Though my student life at U of O is done, I'm sentenced to spending the rest of my life in school. Next is teacher's college at NU then who knows but I can be pretty confident it will be in a school somewhere!!
Teacher's college is very expensive, tuition, a mandatory brand new MacBook, placements, books, and the list goes on. I worked out my budget and OH BOY does it look like bad news. Plus my closet could use an overhaul big time!
So like many struggling students this summer I'm working at a restaurant. I've worked there for a year and a half now and absolutely love it. However, I'm making no money :( The feel of the market at this time of year is patio patio patio, something The E just doesn't have. So my already desperate financial situation is becoming even more strained. Which is why I've found myself a second job near my house!!! Its a new restaurant owned by a neighbouring strip club. Which could be exciting or very very sketchy. Only time will tell. For now, I await O's Grand Opening and cross my fingers for big money!!
Still struggling,
Jenny~Z
Teacher's college is very expensive, tuition, a mandatory brand new MacBook, placements, books, and the list goes on. I worked out my budget and OH BOY does it look like bad news. Plus my closet could use an overhaul big time!
So like many struggling students this summer I'm working at a restaurant. I've worked there for a year and a half now and absolutely love it. However, I'm making no money :( The feel of the market at this time of year is patio patio patio, something The E just doesn't have. So my already desperate financial situation is becoming even more strained. Which is why I've found myself a second job near my house!!! Its a new restaurant owned by a neighbouring strip club. Which could be exciting or very very sketchy. Only time will tell. For now, I await O's Grand Opening and cross my fingers for big money!!
Still struggling,
Jenny~Z
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