On February 13th, I received the following comment on my NetworthIQ profile, which I didn’t actually notice until now:

“Given your risk profile I would cut back on your equity exposure and settle the high interest debt. It is pretty ambitious to get an after tax rate of return of higher than 7% notwithstanding your low tax bracket and extreme market volatility of the past few years. If the shares are in a TFSA, a consistent 7% rate of return is still pretty ambitious. Even the extra contributions to the RRSP vs. debt may not be the best long-term decision given your low tax bracket, ambitions to move to a higher tax bracket, and current borrowing cost I would stop the contributions until your have paid down the debt or lowered your borrowing cost.

As an alternative, you could keep your risky equity positions and reduce your borrowing cost through a margin account using your securities as collateral, this would lower your overall borrowing cost (and risk from a lenders perspective) while allowing you to deduct the interest for tax purposes (if structured correctly).”

Well, there are a couple of points I’d like to discuss here.  First is that my riskiest equities are my stocks, which are both blue-chip high dividend paying bank stock, and are actually extremely safe as far as stock investing goes.  Unless Bank of Scotia or RBC go out of business, I’m guaranteed a lovely safe investment.  Not exactly what I’d call risky equity positions.

Second, my RRSP mutual fund has an average rate of 12% per year.  In October, my RRSP was worth under $8000.  I’ve contributed no more than $300 to it, and now it’s close to $9000.  I think that speaks for itself.

However, I’m not here to defend, merely to debunk any misconceptions.  But the comment still made me think.  What would happen if I took the $200 I’m putting aside monthly to my RRSP and to my emergency fund, and instead apply approximately $475 a month towards my car loan.  I would easily cut the term of my loan in half, and be finished in a year and a half instead of the three years that I’m currently scheduled for. Read the rest of this entry »

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I’m placing myself on a spending freeze until March 10th, the day after my G driving test, and the day that I get paid.  I’m not to buy or spend on anything but groceries or gas, or in case of an emergency.  I get paid tonight, but I need the entirety of the paycheque plus $100 additional to cover all my monthly expenses (rent, car payment, insurance, etc.) so it’s going to be another tight couple of weeks.  Things should brighten after March 10th, but I still have some other expenses that I’m expecting in March (it’s time for another haircut) but aside from that I’m hoping to not have any other expenses, so I can get my day to day chequing account much higher.

Monday February 14

$24.80 – Chocolates for Valentine’s Day

$25.39 – Gift paper and Time Magazine 100 top events in the history of mankind, as a Valentine’s gift

$43.93 – Groceries from the Big Carrot organic food store

Tuesday February 15

NO SPEND

Wednesday February 16

NO SPEND

Thursday February 17

$18.47 – Groceries and lunch at Sobeys

Friday February 18

Transferred $550 from my emergency fund to my credit card bill to pay for my unexpected board dues

$75 – G Test booking fee

Saturday February 19

$96.05 - Vibram Five Finger Shoes from Mountain Equipment Coop

$9 - Glass of wine

$10 – Groceries

$6 - Parking (which sucks, because even though I paid for parking consistently, I wound up paying a $30 ticket)

$4 - Tim Hortons Coffees for my friend and I

$20 - reimbursing my friend for dinner

Sunday February 20

NO SPEND

Total spent:  $332.64

I feel like the Vibrams were an unnecessary expense, one that I didn’t particularly need – however, I’ve been after these shoes for a really long time, and since I am running a 5km and I truly want to train my body to enjoy running, these shoes make a lot of sense.  I figure, why wait if I know I’m going to buy them?  Still, I do wish I were a bit more flush.

Saturday was a particularly bad day, but I did manage to squeeze in 3 no spend days.

Again, over half of this amount was semi-unavoidable.  The $75 fee is annoying, especially because it puts a lot of pressure on me to get my G done right the first time, BUT as soon as I have my G license my insurance rates are supposed to drop considerably, so it’ll pay itself off within the first few months.

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I would like to preface this by saying that I am not trying to sell anyone on being a vegetarian or convert any of my readers to becoming a vegan or vegetarian.  Rather, these are simply my observations on the effects of vegetarianism in my life.  One thing I’ve learned over the past few weeks is that some people are just as protective and sensitive with regards to their diets as they are with their political and spiritual beliefs.

On January 23rd 2011, I made the decision to become a vegetarian.  It was a decision I had previously batted back and forth – I have many friends who are vegan and vegetarian, I understand the environmental and health benefits, and I believe in treating animals humanely.  However, I always considered it too difficult to become vegetarian, something that I would never be able to commit to, so I never really tried.  I made a half-hearted attempt that lasted three days in high school, and I wrote an article for my now defunct personal blog this past summer about adding more vegetarian food into my life, but I never had enough conviction to make the change and remain steadfast to it.

I should also add that I love the taste of a medium rare steak, or a savoury roast beef, or baked chicken.

I’m not going to lie.  The entire reason that I decided to make the switch then and there was because at the time I was interested in a particular vegan.  I justified it by saying, “Oh, I believe in it, this is a decision for me,” but at first, it really and truly wasn’t.

The first week was a novelty.  I actually found it entertaining to say, “Sorry, I can’t, I’m a vegetarian.”  I ate falafel, salads, and … more falafel.  The change itself was so strange and sudden that I just kind of found the whole thing funny.

Um. Wow.

The second week is where it all fell to the dogs. I realized that I felt hungry, ALL THE TIME.  I wasn’t feeling full.  I had run out of meal ideas and was completely sick of falafel.  Not only that, but I was exhausted.  I felt that my brain had settled into a stupor, and my moods were all over the map.  One minute I’d be flying high and feeling great, the next I’d feel tired, depressed and anxious.  I was annoyed that when I was out with friends, my meal options felt extremely limited.  I hated tofu and didn’t want to order any meals with it, but that seemed to be the only option for vegetarians.  I wasn’t sleeping as well, and my hunger actually felt like it had manifested itself into sharp little teeth gnawing away at my stomach.

I panicked and began emailing my vegan and vegetarian friends, one of whom is studying to become a nutritionist.  She pointed out that I needed to incorporate B12 into my diet, to which I responded, “Um, what’s B12?”  Apparently it’s a crucial vitamin linked to neurological activity, just as essential to protein and iron.  I began taking a liquid iron supplement in my orange juice, and a women’s multivitamin.  I also began drinking fortified chocolate soy milk in the mornings and evenings, which is chock full of protein and B12.  I visited the Big Carrot, an (expensive) food coop that carries a wide array of imitation-meats.  Buying the supplements has been a little expensive, but giving up meat has forced me to pay attention to my nutrition, and the effect these supplements have on my body and my mood is well  worth it.

After a particularly bad day (in which I actually started crying, felt completely full of angst, and started blaming the vegan for all of this), it was like I finally broke through the surface.  I wasn’t doing it for a person, I was doing it for myself.  My body started feeling more energetic.  I didn’t feel as “heavy” anymore.  I knew that my diet was having a positive environment impact.  Suddenly, it didn’t feel like I was suffering to be a vegetarian; instead, it felt like I was pursuing happiness by making a choice every time I sat down to eat.

My waistline has begun to shrink, and my muscles have become more defined.  I’ve lost some of the “baby fat” roundness to my face.  And my grocery bills have dropped significantly.  Before, I’d pick up two or three packages of chicken and beef, typically around $20 per trip.  Although I’m buying more vegetables, I am not buying $20 worth.  Meals at restaurants are also significantly cheaper (you know the “add chicken for only $3.99″?  Yeah, I don’t really qualify for that anymore).

All in all, I feel more healthy, confident, and powerful.  I also don’t feel accountable to please a particular person … if I’m faced with no alternative but to eat meat, I’ll do it, no big deal, and I won’t feel guilty.  But on the whole, eliminating so much saturated fat and cholesterol from my diet has been liberating.  Plants can provide me with the protein, iron, and energy I need without filling my system with additional nastiness.  Plus, I have the nice sensation of knowing that nothing died to keep me alive for another day.

So even if you have no interest in becoming a vegetarian, I truly recommend a reexamination of your diet.  It’s painful and annoying, and it honestly feels at times like it’s the end of the world as you’re making the switch, but in the end, you’ll be happier and healthier, and ready to put that mind and body to work in creating a higher networth for yourself.

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Will I ever learn?  Yesterday I got another parking ticket for $30.  I had been paying for parking all day as we ran around the downtown core, $3 here, $2 there, and we had to pop into a grocery store to grab some Orange Juice.  It was on a very quiet street, so I figured it’d be fine for 10 minutes.  That 10 minutes cost me way more than the $2 it would have taken to park.  This just proves my point that the City of Toronto parking officers are ninjas. 

BUT the good news is that I bought the Vibrams Five Fingers shoes.  They are absurdly comfortable and it genuinely is the strangest sensation wearing them.  It’s pretty darn cold in Toronto right now, but come March, I’m going to be wearing them running every day.  I have never really enjoyed running, but these shoes are going to make it fun for me again, and I think I’m actually going to look forward to going out.  I want to get another pair in bright purple in the “sprint” model come the summer, because it doesn’t have the mesh on the top and feels even MORE lightweight.  I’m going to wear these out today for a walk around the block, because I’m going to have to get my body used to walking “barefoot.”  I’m so excited, I absolutely love these shoes.

I’m also working on another post right now about the effect that Vegetarianism has had on my life.  It’s a pretty special post to me, so it may take another day before I post it.

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I’m planning on doing a “real” post tonight or tomorrow, including an update on how the worry diet went/a couple of other updates.  The problem is that there’s so much going on, I may have to condense it all down into one “digest” post!  This was also the week in which it was VERY tight between paycheques, so I spent very very little.  But the Asian Pear wanted to know what my new wristlet looks like that I bought, so I have included a picture.

So here we go:

Monday February 7

NO SPEND DAY

Tuesday February 8

$6.02 - Sobeys, Lunch

$80 - reimbursed for gas for the Ottawa trip

Wednesday February 9

NO SPEND

Thursday February 10

$75 - Investment into RRSP

$25 – Emergency Fund savings

Friday February 11

$53.95 – Toshiba DVD player from Best Buy

$137.36 – Car Payment

Saturday February 12

$249.47 - Taxes owed from 2009

$50.83 – Gas

Sunday February 13

$15.32 - Gas (again) – I wanted to fill up because it was WAY cheaper near my house than in Toronto.

Total Spent$432.95 All in all, not bad, considering that over half of that is taxes that I owe the government, and another large portion is the fixed amount I have to pay for my car.

Here is also a breakdown of unexpected costs that I faced this month, which is why I’ve been stressed/my networth is going to take a hit next month:

$249.47 - 2009 Taxes for the government

$429.40 – Professional board fees

$254.25 - Upfront gym costs for joining GoodLife (won’t have to pay until March, and this will pay for 6 months of a membership)

Total Damage: $933.12

YUCK.  Nearly $1000 in unexpected costs right out of the blue.  No wonder I feel so tight month to month – mind you, I don’t have to save so aggressively either.  I could cut out my biweekly payments to my RRSP and Emergency fund and be left with a much cozier $200 a month cushion.  BUT I will be taking my G license test on March 9th, which will have a positive impact on my insurance (it’ll save me a couple hundred per year) and I am planning on selling my flute, AND I’m going to set up a mock payment for my gym membership, so I’ll pay myself back over the course of the next six months.

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This guest post is compliments of Fabulously Broke.  Fabulously Broke is a 20-something year old who is currently a full-time hotel dweller, working as a freelancer in a big city.

Since 2006, she’s been traveling on and off for the past 4 years, living out of a mix of hotels and apartments for periods of time.

In 2010 alone, she has moved 19 times in between cities.  She can be found at Fabulously Broke in the City, a lifestyle blog that has a bit of money talk, and at The Everyday Minimalist, a blog all about real-life, doable minimalist living for the modern urban dweller.

HOW I BECAME A MINIMALIST

In late 2006 I took a job that required 100% traveling. I had already put down a lease for my apartment for a whole year, and while I saw the money debited from my account each month, I wasn’t actually using the apartment for the majority of the time!

It was a real waste of my net income that could have gone towards clearing my debt, so I gave up my apartment, moved stuff into storage, sold my furniture and started living and traveling full-time.

In the time that I was traveling, I only brought one suitcase; this was not because I had the foresight and brilliance of living with less, but more that I didn’t want to carry a lot of suitcases from hotel to hotel. I hate checking in bags and I especially hate carrying them.

After a couple of months, I looked around and realized that I only needed that one suitcase. Sure, I missed my wardrobe in storage and all my clothing options, but I could technically live out of ONE suitcase forever, minus all the kitchen stuff.

That was a big revelation, and from then on, I started considering a life as a minimalist.

WHAT IS BEING A MINIMALIST FOR ME?

Getting rid of excess to live with less, but only the best. (Like how that rhymed? :) )

Minimalism for me is not about getting rid of everything and living with just a bowl and one outfit, or 100 things.

Those rules are more like benchmarks for people who want to have a concrete goal and fulfill it.

I am more laissez-faire with the word, because in my wardrobe alone, I have more than 100 things (counting everything separately), and I downsize as I see fit.

Being a minimalist is also getting rid of all those excess mental distractions and useless meetings in your life, and learning how to say “No” more often.

I am not talking about meditating, I am talking about learning how to focus on what is really important — the priorities that matter.

If you spend 80 hours a week at work but find your family life is lacking, perhaps you need to re-evaluate to either make more time in your personal life for your family, or figure out an alternative.

Lastly, it is also about organizing and being efficient. I love it when someone teaches me something new about packing or organizing, and I thrive on it!

WHAT DID YOU DO AS A MINIMALIST?

For one, I started scanning all my papers to get rid of the filing cabinet and its 60 pounds of paper, and bought my first external digital hard drive.

It was more to get organized because since I was traveling so often, I couldn’t carry all of my papers with me to each city. It is just simply easier to be able to see my documents in a digital format and print them if required.

Now, I own about 6 hard drives and 4 USB keys for various functions (including backing everything up twice), and I am never without my digital filing cabinet or any digital entertainment. Read the rest of this entry »

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I did the math, and I’m currently allocating over $475 a month towards debt repayment/asset building (biweekly payments of $137.46 to my car, $75 biweekly payments to my RRSP, and $25 biweekly payments to my emergency fund, which is going to need topping up after this month).  I’ve decided from now on, any bonuses/unexpected cash I receive will be split into 3, instead of just going towards my car – one third to my RRSP, one third to my emergency fund, and one third to my car payments.  I’m still sincerely hoping for a decent tax return this year.

Here’s my breakdown:

Monday Jan 31st

NO SPEND DAY

Tuesday Feb 1st

$20 - withdrawal from bank machine

$33.21 - Dinner out at restaurant with the Boy, reimbursed $20 from him

Wednesday Feb 2nd

$7.35 - LCBO (white wine for making pasta sauce)

$26.64 - Sobeys – ingredients for special dinner

Thursday Feb 3rd

$19.20 - small leather wristlet from Winners for going out in Ottawa Read the rest of this entry »

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I am a proud Canadian.  I love my country.  I love the culture.  I love skating, Beavertails, the free healthcare, and social programs.  I don’t like to shirk from my duties as a tax payer, since taxes are what allowed my grandfather to have free open heart surgery (twice), and is what makes my brother’s insulin for his type 1 Juvenile diabetes affordable.

But seriously, whoever does the government of Canada’s books is a very smooth operator.  I just received a notice of reassessment.  Turns out I forgot a T4 form when I was filling out my 2009 taxes last year (hey, I worked three part time jobs during my fourth year at Queen’s, there were a LOT of tax documents) and I never paid taxes on an additional $1400 that I made as a Teaching Assistant.  Whoopsies.

Now the government wants their $249.47 (they charged me approximately $9 in interest, which makes me very glad I didn’t owe them more money).  I’m going to have to call the CRA shortly, as my accountant informed me that the number has probably already increased from the time they mailed me the letter until now.

The GOOD news in all of this is that I thought I would owe taxes this year, but with my notice of reassessment, the government also reminded me that I have close to $12,000 in unclaimed tuition/education deductions left over from university, which definitely saves my butt.  I’m still anxious for tax time, but considerably less so.

This month will still be very tight for me … I have to pay off my board fees still, I have the trip to Ottawa to pay for, and now I owe the government.  However, I’m feeling much more optimistic, and I’m even hopeful that I may actually get a little bit of money back from the government this year, instead of owing them.  That, of course, will go straight to my car payments.

In other financial news, I will definitely be quitting Extreme Fitness and joining up with GoodLife, I had a great tour of their facilities today and was really impressed.  I’m excited to save that extra $343.22.  I also tried negotiating a lower interest rate on my car loan but was unsuccessful (this round), and tomorrow I’ll be calling my insurance company to see what the annual savings will be once I take my G test in March, as well as what will happen now that my car is another year older, and thus less expensive to insure.

Necessity is the mother of frugality, and my desperation this month has forced me to make some financial decisions that are actually very beneficial not just in the short term, but in the long term as well.

Has the government ever surprised you with a reassessment?  Did you owe money or did you receive an extra bonus?

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I feel pretty silly, because it has taken me so long to figure this out, but I’m switching memberships to Goodlife and it’s going to save me a couple hundred bucks.

Let me explain the silly reasons for keeping it so long.  I joined Extreme Fitness in November 2009, at a really nice club near my new workplace.  It was beautiful and airy, had a large hot yoga studio, and a great weights area.  However, in February 2010, I started my current job and I also moved.  The closest Extreme Fitness to me became a ten minute drive, in a fairly densely populated area with limited parking (for those who know Toronto, Greektown).  Still, I stayed, because I argued that “I love the hip hop class” that they offer.  However, the distance was definitely an issue, especially since I got a ticket last month from my creative parking.

The only reason that I’ve stayed with this club is that I’ve convinced myself it’s the best option.  My upstairs neighbour goes to the club so I’m convinced that I’ll work out with her (even though we’ve only gone together three times) and a lady from my office also used to like to go with me (although again, we’ve been maybe four or five times together).  I also really do love the hip hop class that this club offers, but I ran the numbers and I’ve maybe only done the class ten times total.  I would be sad to not be able to do this class on Tuesdays anymore, but really, I mostly just lift weights when I work out, I never hit any of the other classes.  Plus, the club that’s closest to me has no natural light and smells pretty nasty, it’s nothing like the pretty club at Richmond that I signed up at.

So this week I’m going to be taking tours of the two Goodlifes that are closest to me – there’s one that’s two blocks from where I work (parking won’t be an issue, plus I can run over and do a lunchtime workout) and there’s another one about five blocks from where I live (so I can bike down, although there’s a massive hill on the way back up).  If I like it, I’ll switch.

Extreme Fitness was costing me $70.96 a month, and Goodlife will cost $450+HST for the year, breaking down to $42.38 a month.  I did get three free months of promotion with Extreme, but Goodlife will be a lot cheaper.  It also runs on a corporate cycle, meaning that if I sign up now, my membership will begin in March, and my cost will be prorated for this corporate cycle which runs September to August.  I really like the idea that I don’t have to sign up for a full year, I just need to jump in on the cycle.  I also like the concept of a one-time payment, it’ll simplify my monthly budget!

$70.96 x 12 months = $851.52

$450 x HST (13%) = $508.30

TOTAL SAVINGS$343.22

So after three years, I’d save close to $1000.  A gym membership is essential to me – I need the weights and the machines that they offer.  I’m really excited that I finally am making the change, especially to have somewhere so close to where I work.  I also really like the BodyFlow and BodyCombat classes that Goodlifes offer.  When I was working out at a Goodlife in my final year of university, I was in the best shape of my life, mostly due to the classes.

I know I’ll probably get some comments warning me that gyms are evil, but I’ve been a member of Goodlife before and haven’t had any problems.  I spoke to a rep from Extreme (Daniel at the Richmond Club) and he told me that as long as I go into the club prior to February 17th, I can cancel my membership prior to the March 1st billing.  I’ll give a review of my experience dealing with the memberships department at the two clubs, and how they try to sell me.

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I’m back!  What an amazing trip to Ottawa.  After leaving the city an hour late and slamming face first into rush hour (5:30 on a Friday afternoon heading East out of the city) we arrived in Ottawa around 10:30pm and had at ‘er.  Saturday morning we woke up, got some free pancakes and wandered through the ice sculptures.  Then we pulled on the skates, and did the full 16km track around the Rideau Canal.  I personally had an epic wipeout about 0.5kms away from the end of the trail, bruising both my knees really badly in the process.

All in all the trip cost under $150.  It was $60 for the hotel, we haven’t calculated the final gas amount but I think it’ll be about $20 a person, and I spent under $50 on food.  I did keep all my receipts but I’m absolutely exhausted and won’t have a chance to go through them until tomorrow.

BUT while I was wandering through Ottawa (which is amazing, EVERYTHING is within a 15 minute walk, even the highway is like 5 minutes from the downtown core, SO unlike Toronto) I had a chance to mentally go over a couple of things that I’d like to accomplish financially.  As I strolled along the beautiful stone bridges and gazed at the gorgeous old buildings, I was starting to knot myself up into a ball again over money, specifically how I’m going to pay off my credit card bill this month, since I am essentially living off of credit right now.

A couple of ideas came to me:  a) I want to see if I can negotiate a lower interest rate on my vehicle, because 7.09% is just a killer, and b) I think I need to change gym memberships.  I’m currently a member of Extreme Fitness, which isn’t really close to either where I work or where I live.  I need to drive/bike in order to get there.  It’s also expensive (approximately $70 a month).  I do want to continue having a gym membership, and the reason that I’ve stayed with Extreme is because I love the Tuesday night hip hop class that they offer.  However, I only attended this class once in the past month, and maybe six or seven times total (things come up, or I’m too tired, etc.)  Goodlife Fitness offers a corporate discount to my office, at I believe a much better rate, and there is a Goodlife two blocks from where I work and also one that’s a 5 minute bike ride from my house.  I’m going to talk to the woman at my office who organizes the memberships and see if I can get a good deal.

I may also have to come to terms with the fact that my trip to Africa may be a bit too financially ambitious for 2012.  I am still really going to push for it, but I may have to either delay my trip for another year, or I’ll use the money to go somewhere a bit more affordable.  I am not giving up, but I have to be realistic, and at the moment I’m not saving at a fast enough rate to make it to Africa.

O Canada!

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