Bonus Time

I finally got my bonus.  Drum roll please…

$2,775. And a Louis Vuitton coin purse.

Considering that I have only been with my boss since June 22nd, I think this is pretty generous.  He offered to only pay me half and to have me work out with the bookkeeper what I should take off in taxes, but since I already owe the government money from when I worked for my Liberty Village boss, I said I’ll take the full amount.  I think I’ll also be putting $1775 directly into my RRSP.

My goal this year was to invest $2000 into my RRSP.  I am not certain if I’ll be able to meet this goal, but I may shift some of the money I set aside for taxes into my RRSP, to get a higher deduction and to hit my goal.  I’ll be receiving that money on Monday. I think I will take the remaining $1000, set aside $300 for taxes/deductions, and put the remaining $700 into my emergency fund.  This will top up my emergency fund to $1,300, or $1,450 by Jan 1st 2012, after I add in another automated payment of $150.  Merry Christmas to me, indeed!

I've never owned a designer piece in my whole life. I almost cried.

My other goals are going to change too; I originally stated that I wanted to bring in an extra $40,000 through freelancing.  Well, folks, I have something to confess.  By now, most readers know that I was a formerly licensed realtor, who gave up selling (because I hated it) to work as an assistant to a top producing realtor in the Bridle Path. I based that goal on sales that I would do on the side, which is no longer realistic. I am guessing that were I to average out the work I’ve done on the side this year, I probably brought in approximately $150-200/month. That’s a pretty decent side hustle, and I will be looking to increase my streams of income in the New Year. I’m going to look into some tutoring, since a couple of my friends use this as their source of side hustling.

I am also putting some serious thought into a career change. I’ve been working in real estate for nearly 3 years now. I thought it was going to offer me the big city glamour and lifestyle that I wanted:

This is how I pictured my life....

When in reality, the life I actually wanted looks more like this:

I Heart My Bicycle

The same paradigm shift happened with the city of Toronto.  Toronto ain’t for me. Give me space, please.

So, what is it that I’m looking to do instead?  I was looking into writing the LSATs, and maybe going into law.  After the frustration of not making enough money, I was looking into careers that would guarantee me a higher income. But that’s not where my passion lies.  The truth is, I think that my passion may lie in a field that I swore I would never go into, since I’d be the third generation in the profession. But no matter where I go, or who I talk to, people tell me unequivocally that I give off a vibe that screams of this particular field.

I am looking into teacher’s college.

It’s not the most intelligent move, especially because it is nearly impossible to get hired ANYWHERE right now. The salary is not that great, and even if I perform extraordinarily well, I’ll make as much as the teacher in the same pay bracket who barely makes an effort.

But…I love teaching.

Crap.

Time to build up capital. Even if I don’t decide to become a teacher, I will be getting out of my industry in the next 2 years, and I will be getting out of Toronto.

Operation Life Change has begun.

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December 18, 2011 | Money Rabbit | 13 Comments »

Sometimes I feel like a smarty pants

Sometimes I feel like a real smarty pants.

Mostly because I figured something out that should have been obvious to me from the get go.

Today at work, I was mulling over my first condo purchase which is imminent, hopefully by December 31st 2012 (if the world hasn’t ended by then, of course).  Ever since I made an offer on a condo, I’ve been bitten by the home owning bug.  It is so incredibly obvious to me how much sense it makes to own a property instead of renting.  If I had the capital, I should have bought that tiny little condo, because I could have moved out and kept on renting it without even sweating it.  However, I didn’t, so I should get over it and move on.

However, something nagging at me even at the time of offering on it was my gut feeling that I had already missed the boat in terms of getting real value out of the unit.  The best time to buy would have been even another three months prior.  And, as a coworker pointed out to me, the building is loaded with amenities that I may not even use, like a pool, gym, rooftop deck, etc.  The good thing about me hopefully renting it is that I would be able to test it out to see if paying the extra monthly maintenance fees were even worth it for such “luxuries.”

I feel like this guy!

There are a ton of new builds in the area, and I have my eye on a couple that still haven’t finished being built, let alone are ready for occupancy.  This is a good thing.  They also have fewer amenities, which is beneficial in the long run because it keeps maintenance fees down, which in turn allows a higher profit margin if I rent it out.  Plus the earlier I buy, the less expensive it will be.

As I mulled, I had a (not so original) but still brilliant idea for how to play it even smarter.  I think I’m going to transfer the entirety of my stocks out of my TFSA and into my RRSP.  This will allow me to get a large refund from the government, which I can then apply to the purchase of them home, using the RRSP Home Buyer’s Plan.  I was always planning on cashing out my stocks and using them towards the purchase of a home, but by getting them into my RRSP, I’ll get money back from the government, won’t have any tax deducted, and all I’ll have to do is make sure the full amount is back within 15 years.

That will give me a grand total of approximately $17,500 to put down towards a home.  Obviously I need to step it up a little in terms of getting that higher, but first things first, I want to pay off my car.  I’m also counting on the $5000 bonus that I was promised after six months of work.  I can put 60% of that towards the car, and the remaining 40% into my savings for the house.  My RRSP contribution limit this year is $7,559, so I’ll have $1000 of stocks left over, so I’ll keep adding cash to that to hopefully have approximately $25,000 for my down payment.

Does anyone else have any brilliant suggestions for how I can achieve my dream of home ownership faster?

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April 27, 2011 | Money Rabbit | 15 Comments »

New Beginnings

I read two really fantastic books this weekend, cover to cover.  The first was Gretchen Rubin’s “The Happiness Project,” which started out as a blog, and evolved into a novel.  I loved it, and think it’d be a great read for anyone who has tried to quantify what happiness means to them, and tries wacky things to make it a reality.  However, my inclination is that this book would be better suited to female readers.

The other book I read was Terry Fallis’s “The Best Laid Plans.”  I think I found it because it was featured on the Toronto Public Library’s home page as a new Canadian fiction item.  I think the reason I devoured it was because it revolves around a Canadian federal election, and gets you behind the scenes for what’s REALLY happening on Parliament Hill.  It was a great read, because even though it was “fiction,” it felt more like a thinly veiled exposé of the dark side of Canadian politics.  His language in particular is a challenge, since his prose is technically, well, perfect.

Yesterday, I had written a long non sequitur post about Easter and family and all that lovely stuff, but when I got home to Toronto this afternoon, I felt more like writing about dollars and cents.  So long story short, I had an amazing time at home with my family, who are all very proud about the National Post article.  I indulged in such basic activities as eating, sleeping, exercising, reading, and consequently I feel like a million bucks.  Not only that, but I’m ready to rumble.  I can hardly wait to sort out if I’ll be renting the condo this week so I can figure out if I’ll be decluttering like a fiend or not.  If I do get the condo, I’m going to be putting some design choices to the readers of my blog, for example, do I get a loft bed or a pull-out couch?

Moving on, my bank account right now is nicely fleshed out with my income tax return.  All together, I received close to $3800 back.  This is due to the fact that I can now write off some expenses, combined with my educational costs, my professional dues, my charitable giving, my RRSP contribution, and other deductibles like public transit passes and my rent.

Ideally, what I’d like to do with the money is apply the entirety of the amount towards my car loan and get it off of my shoulders.  Applying this amount would get it under $6000 (WOW – I’d really be able to pay it off by Christmas then).  The lovely Krystal Yee just paid off the entirety of her loan and feels great.  However, I instead added the tax return cash to my emergency fund, to help me pay my first and last month’s rent in the upcoming month, and also to assist me with any upcoming unexpected expenses.

I’m not out of the woods yet.  I’m feeling very (cautiously) optimistic about the upcoming months and my earning potential, but I also know that the unexpected can and will happen.  That’s why my reserves are so important to me right now; once I’ve achieved stability, I can start shifting things around again.

Once my car is paid off, I’d like to both save aggressively for my down payment and start investing in stocks.  I know this is a hot button issue for a lot of twenty and thirty-somethings.  Stocks are almost like this mystical presence in personal finance; elusive, tantalizing, and tricky.  To me, it seems like the Cave of Wonders, where inside lies treasure and freedom, but only a talented and educated investor can make it work, otherwise you’ll be swallowed up.  Aka, I want the CHALLENGE and RISK of trying something new with my finances.

I also need to rewrite my page I’ve entitled My Dream.  Ever since I realized that what I really want isn’t more stuff, but in fact less stuff to assist my transient lifestyle,  I’ve been feeling lighter, freer, happier, like my goals are more in line with who I am.  I don’t see myself living in a house for awhile now, since I want to maximize my time as a hip twenty-something and live in a condo in the downtown core.  I still will always love gardening, and the friendly/neighbourly feeling that living in a house provides, but I was rushing myself too quickly along the path of domesticity, and this bunny isn’t house trained yet.

I’m going to close with a photo of my family’s dog, Booker.  My mother is a teacher and a “Miss Frizzle-esque” one at that, and she designed this hat for school this past week.  This photo was accompanied by an email that read:

“Before disassembling my lovely millinery, I asked Booker to model my creation.  With some hesitation, he obliged.

If the lovely Kate Middleton, future Queen of England is interested, I will design a hat for her as well.”

Happy Easter!!!

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April 25, 2011 | Money Rabbit | 1 Comment »

I owe the Government from 2009?!

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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February 9, 2011 | Money Rabbit | 7 Comments »

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