Personal Finance

Our 2012 Goals: February Update

March 2, 2012

At the beginning of January, I shared our goals for 2012 and promised you all a monthly update so you could check in on the progress we are making.

Although February was not perfect, it was better than the progress we made in January. That counts, right?

Family Goals

1. Go to the cottage at least twice. This is obviously not going to happen until summer time.
2. Enroll Elliott in at least one social activity. Swimming will start in the summer and we are waiting until the end of this year to enroll him in skating.
3. Take more family photos. I took quite a few of Elliott this month, but we didn’t manager to get ANY family photos. I do have one photo of myself and my sister, though! We will have lots of family photos in March when the new baby comes!
4. Do more crafts and cooking with Elliott. Elliott has been helping a bit more in the kitchen. The more I let him help, the less of a mess he makes (imagine that!). In February he helped me bake cookies a few times and I managed to get some cute photos of that. As far as crafts go, we did a few Valentine’s Day crafts, which he really seemed to enjoy.
5. Do more active family activities. We went to the zoo! It involved lots of walking.
6. Include Buddy (our dog) in more family activities. We couldn’t bring him with us to the zoo, so unfortunately February was a fail for this goal.
7. Plan first Christmas at home. We won’t be worrying about this goal until mid-late 2012.

Marriage Goals

1. Have “date night” at least once every month. We had our February date night!
2. Go away for Valentines Day (last outing before new baby arrives). This was technically part of our February date night. We went away for the night and saw the Harlem Globetrotters, ate cupcakes from an over-priced bakery and slept in the next morning. It was awesome!
3. Schedule alone time once every month, where the other spouse takes care of cooking, cleaning, kids, etc. We did this… the majority of my free day was actually spent writing the Shoppers Optimum Guide!
4. Plan anniversary event. I don’t think that we will be worrying about this one for at least a few more months (our anniversary is late August).

Financial Goals

1. Put all extra income into house fund. We saved a good amount in February.
2. Create & stick to a budget for Valentine’s Day & anniversary celebrations. We doubled our Valentine’s Day budget.. but it was worth it.
3. Create & stick to a yearly expenses budget for 2012. So far, so good!
4. Put maximum amount allowed into both of our TFSAs (this will be part of our house fund). We haven’t done this yet.
5. Investigate and understand the Home Buyer’s Plan (HBP). I’m pretty sure we understand this now!
6. Create a will. Not done yet. We have so much other stuff we are doing to prepare for baby’s arrival in a few weeks that I really just don’t think it’s going to happen for awhile. I know it’s important… but it has to wait. I have a hand-written will that will have to do for now.
7. Set up RESP for new baby. We will do this after she is born.
8. Rebalance RESP asset allocation for Elliott. Done!
9. Allocate money to charities. Didn’t happen. No excuses.

Personal Goals

1. Drink at least 6 glasses of water every day. I’d say I’m on track with this goal.
2. Make healthy meals at least 5 days per week. I admit it – I quit. I’m not worrying about this one right now.. once the baby is born and I start to tackle losing the baby weight, I will attempt this goal again. If it counts, I have been making the choice to snack on more fruits lately, rather than my usual chocolate fix.
3. Read at least 1 book every month. I barely made it, but I did finish my February book.
4. Stay active. Ha! Active when I’m 8 months pregnant? The most activity I’m able to get these days is walking up and down the stairs. Otherwise, it feels like my body is going to snap in half. I’m leaving this one until I’m tackling the baby weight, as well.

Did you set any goals for 2012? I’d love it if you shared your progress in the comments.

11 Comments Filed Under: Personal Finance

How To Save Money On Diapers

February 27, 2012

Something that I am asked often is “how do you save money on diapers?”. Those pesky things can cost an arm and a leg sometimes.

I personally save on diapers by redeeming points from rewards programs, and then of course, stocking up when I see them on sale at the store.

My target price for diapers is $0.10 per diaper. The only way I would pay more than that is if I was also receiving reward program points and the value of those points was more than the extra money I was spending on the diapers.

Having a child in diapers is certainly not cheap, but there are ways that you can save money on this expensive necessity.

Use Cloth Diapers
Cloth diapering is something that many women swear by. I have not done it, only because I can often get disposables for free or a very good price. However, I know of a few people that have done this with their children and they told me that they saved a ton of money by getting rid of disposable diapers and replacing them with reusable ones.

The cost of a start up pack of reusable diapers (usually including 6 dozen pre-folds and 16 covers) is around $400. The average cost of disposable diapers is around $0.30 each. That’s a savings of $0.12 per diaper right there. If you plan to use the diapers for more than one child, that savings can easily double or triple!

The only negative thing I see when it comes to cloth diapering is that it is a bit more work to have to wash all of those soiled diapers. However, with savings so great, it just may be worth it.

Stack Coupons
In Canada, the only place you are able to stack manufacturer coupons is London Drugs. As long as the barcodes are different, you can use as many manufacturer coupons on one item as you want (keep in mind that London Drugs does not allow overage).

If you’re an avid coupon clipper, shopping at London Drugs would make it easy for you to stock up on diapers for free or next to nothing. Simply hold on to your coupons and watch the sale flyer. Let’s say you stumble across a 60 pack of Pampers diapers on sale for $9.99. You have the following coupons: $2.00 off any Pampers diapers, $1.50 off any Pampers Diapers, $3 off any Pampers Diapers, $2.00 off any Pampers diapers (different barcode than the first one). Use all of these coupons on one package of Pampers diapers and pay just $0.49 for 60 diapers.

Use Rewards Points
Like I mentioned earlier, the way that I usually get free or inexpensive diapers is by redeeming points from various rewards programs (usually Shoppers Drug Mart).

I am a member of various rewards programs and make a great effort to make the best use of all of them so that I can earn rewards points to use on things I hate paying for (like diapers!).

My favourite rewards program is Shoppers Optimum. I take advantage of as many of their bonus point promotions as possible and then save my points until I need to stock up on things. I almost always pick up a pack or two (sometimes more than that) of diapers any time I am redeeming my points. That way I don’t have to pay anything for them at all.

Shop The Sales
If all else fails, be sure to shop the sales. Diapers are on sale pretty much every single week, so I strongly advise against ever paying full price for them. They even sell diapers online, where you can often use coupon codes to get your total price even lower.

If you have the budget for it, stock up on diapers when you see them go on sale. If you aren’t sure how long your child will be in a certain size diaper, stock up on a few of each size. You can always exchange them at the store if you wind up with too many of a particular size.

Purchase Store Brands
Just like anything, it’s important to be open to the idea of purchasing store brand items if you want to save money. These are almost always cheaper than the name brand (especially if they are on sale and the name brand is not) and can save you serious money over the long term if you try them out and they end up working well for you.

I must admit, I have not used many store brands. This is mostly because I can almost always get name brand diapers for free when redeeming points. I have tried the Metro store brand (they were great) and the Shoppers Drug Mart store brand (they were awful) and am glad I tried them because now I know that if I am ever in need of diapers and the name brand prices are too high, I can purchase a store brand package and get by just fine.

Buy In Bulk
Considering that the average person will go through over 4,000 diapers in the first 2 years of their child’s life (assuming you change 6 diapers per day), stocking up is a smart idea.

If you use coupons and shop the sales, you can often get diapers cheaper than you would at any warehouse, such as Costco – but if you aren’t having much luck with that, it may be worth the membership fee to purchase your diapers in bulk at these stores.

I really dislike having to purchase items that I am just going to throw away, so I always have to be cautious when picking those things up from the store. Doing a combination of the tips above have helped our family tremendously when it comes to diaper costs.

The biggest thing I want to stress is to be open to trying new things. Cloth diapering may sound like too much work for you, but have you seriously weighed all of the pros and cons? It just may be something that could be very beneficial to your family. Also, remember that different children respond differently to various diaper brands. If you are stocking up for a baby that has not yet arrived, be sure to purchase multiple brands, just in case your baby has a bad reaction to one kind.

How do/did you save money on diapers? Let us know in the comments.

Gail Vaz-Oxlade’s School of Personal Finance

February 21, 2012

If you’re looking for someone that is going to be completely real with you about money – Gail Vaz-Oxlade is your gal. She is one of those people that speaks the truth, even if you don’t want to hear it – and that’s what I love about her. She doesn’t sugar-coat personal finance issues, like so many others seem to do.

Some people may find her a bit harsh, but I personally think that she’s perfect the way she is. Sometimes the truth is hard to hear, but we really do need to hear it.

Gail Vaz-Oxlade is the host of Til’ Debt Do Us Part and Princess on Slice TV, where she helps families, couples and single women get back on track with their finances. I have been a huge fan of Til’ Debt Do Us Part for years now. It’s one of the few shows that I can actually watch repeats of… I always seem to learn something new that I missed the first time.

If you’re looking for a great author of personal finance books, Gail has you covered in that department, as well. She has written over a dozen of them! Debt Free Forever is my favourite.

Gail was even kind enough to answer some of our personal finance questions last year.

Things Gail will tell you about personal finance that you probably didn’t know:

You can (and should) receive your credit report twice a year for FREE. That’s right, not a single cent.

You can (and should) negotiate annual fees, such as those on a credit card, every year.

You can change your billing dates to make bill-paying more convenient for you (ie. your bills are paid as soon as you are paid).

You can ask the government to reduce your income tax (in which case you will increase your income) each month, instead of getting a lump sum at the end of the year.

Gail Vaz-Oxlade’s top 5 personal finance tips:

1. If you’re in debt, dig yourself out. Start today.

2. Create a budget. Everyone should have one.

3. Spend less money than you bring in. It sounds simple, but many, many people don’t follow this simple rule and then wonder why they never seem to have any money left at the end of the month.

4. No matter how much money you make, you should ALWAYS be saving at least 10% of your net income.

5. Eliminate impulse purchases by shopping with a list. Groceries, clothing, gifts – make a list before you shop.

Gail Vaz-Oxlade is successful because she knows what she’s talking about when it comes to money. Her tips have helped thousands of people, not just in Canada, but around the world.

She’s one of the few people that I actually believe truly wants to help others with their finances, and not just make a quick buck. If you are desperate for financial help, I highly recommend checking out Gail’s website.

21 Comments Filed Under: Personal Finance

6 Ways to Slash Your Car Expenses

February 13, 2012

The average Canadian spends thousands of dollars on their vehicle every year (including insurance, maintenance, gasoline, etc.). Check out this Driving Costs analysis done by CAA in 2011. Are you spending as much on your vehicle as the average Canadian?

What some people don’t realize when they purchase a new vehicle is that it depreciates the minute you drive away from the dealership. A car can lose up to 20% of it’s value in the first year of ownership!

Following are 6 ways you can save on your car expenses.

Drive a reliable vehicle.

Stay away from flashy sports cars and SUVs, as those will cost you an arm and a leg to operate. Purchase a vehicle that is safe, has great fuel efficiency, and is easy to maintain.

Shop around, do your research and find the car that’s right for you.

Consider becoming a one car household.

Many families have more than one vehicle and this can cause havoc on your bank account every month. Two insurance payments, two car payments (in some instances), twice the maintenance and repairs, and of course, twice the gasoline – this could add up to a large amount of money each month. Is it really worth it?

When we decided to become a one car household over a year ago, I knew that I was going to be giving up a bit of freedom by not having a vehicle during the day. However, making that choice to get rid of one of our cars was the right move for us. We save over $2,000 every year by only having to maintain one vehicle – and you know what? Most of the time, I really don’t even miss having that 2nd vehicle.

Keep up with routine maintenance.

If you want to keep your car for as long as you possibly can, it’s important to keep it in tip-top shape. Don’t neglect getting your vehicle serviced whenever you need to. Take a look through your owner’s manual to determine when you need to change the air filter, replace transmission fluid and rotate the tires.

Download our automobile maintenance form to keep track of everything.

Get an oil change every 4 months (or 12,000 kilometres).

Despite what others may tell you, it’s not usually necessary to change your oil every 3 months (or 4,827 kilometres). The only reason you would need to do so that often would be if your vehicle gets a lot of use (for example, if you drove a taxi).

According to Perry Stern, editor at MSN Autos, the average person only needs to change the oil in their car every 12,000 kilometres (or every 4 months). This is what we have been doing for years and we’ve never had an issue with any of the vehicles we’ve owned.

Shop around for insurance.

This is something that you should try to do every year. Right before your insurance policy is about to be renewed, look around at other companies to see if you can get the same coverage for a lower price. Many times, you can! If you mention to competing companies that you are looking for a lower rate than your current insurance provider, they will usually ask how much you are currently paying and will then offer you a lower rate. This has worked for me in the past, so I encourage you to give it a try. You just never know what kind of savings you may come across!

Drive less.

Of course, one of the easiest ways to save money on your car costs is to simply drive less often. Walk to as many places as possible. Take the bus. Car-pool with friends/family.

Combine your errands so that you don’t have to go out as often, saving you time and money! You should only drive if absolutely necessary.

Though it may seem impossible to some, you can save money on car expenses. The key is to do your research, be committed and stay focused. It is possible to own a vehicle, enjoy the freedom that comes along with it, and still save a decent amount of money on the expenses you will be incurring from operating it.

Owning a vehicle can be an expensive endeavour. Employ some of these money saving tips and you will be well on your way to enjoying your vehicle for less!

What are some ways that you save money on car expenses? Share your tips in the comments!

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10 Comments Filed Under: Money Saving Ideas, Personal Finance

Is it time to break up with your cable company?

February 10, 2012

In an effort to pay off debt and/or start saving more money, many people are looking for ways to cut back on their expenses. Are you one of these people?

When my husband and I were trying to pay off our credit card debt a few years back, one of the first things that people suggested we get rid of was cable TV. The thought had never even crossed our minds because – what are we supposed to do if we can’t watch TV?!

Ahhh, how times have changed.

Breaking up with your cable company is one of the first suggestions I give to those that ask me how they slash their expenses. Cable TV such an unnecessary luxury that so many people think is a need, when it’s really just a want.

The difference between needs and wants is that one of them is crucial for survival (housing, food, clothing), while the other is not (cable TV, eating out, the latest gaming system).

Although there are many areas of your budget that you can cut back on, take a good hard look at your cable bill first. Do you REALLY need to be paying that bill every month, or can you say goodbye to cable TV?

If you’re ready to let it go, prepare yourself for a fight from your cable company. They make lots of money off of you and will not be happy to hear you say that you no longer want to give it to them. They will likely try to entice you with free gifts, lower bills (for a limited time) and things of that nature. Stand your ground and don’t let them change your mind.

I encourage you to take a look at these 10 legal alternatives to costly cable. There are so many ways for you to watch the shows you enjoy for FREE (or very little money). Don’t give your cash to the cable company, where you will be paying for a handful of shows you do like and dozens (or more!) of shows that you don’t.

Have you cut the cable TV cord? Was it worth it?

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18 Comments Filed Under: Money Saving Ideas, Personal Finance

Debt Free & Loving It: A Success Story

February 7, 2012

A reader sent in a very inspiring story that I thought some of you might like to read.

Due to a divorce at a young age, I was forced into bankruptcy.

Since I have claimed bankruptcy, I have sworn off credit all together. I pay for everything in cash. I have a savings account into which I put $100 a month and an emergency account into which I put the same. I also make all of my Christmas presents (baking and crafting). I follow a lot of your rules about spending and also follow Gail Vaz-Oxlade‘s advice to a ‘T’.

I lost my job a couple of years ago due to the company ‘going under’, but with unemployment benefits and my 6 months of income saved up, I didn’t take much of a hit. I still had about 4 months left in the account and have since built it back up. I use coupons for everything and make all my meals at home.

I have my daughter doing chores using My Job Chart, and she collects ‘points’ which translates into an allowance. She is allowed to spend half and save half (right now that is $5 a month in savings and $5 a month to spend). I have a secured Mastercard for my online purchases that has a $300 limit. Apparently these cards build your credit faster because they report your history more frequently then regular credit cards. I own my own car and rent my house. I don’t owe anyone anything and although it has taken me longer to get to where I am then a lot of my friends, I’m glad I am not worried about a mortgage, credit card payments or lines of credit.

I turning 30 next month and work part time as a bank teller and full time as a wedding photographer. The bank gets me no fee banking and health benefits. The wedding photography means that if I ever lose my job I have something to fall back on AND it means I can do something I love. It has taken a lot to get here. But I will never EVER go back to the way things were!

- Rachel

Do you have a success story you’d like to share? Submit it here.

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11 Comments Filed Under: Personal Finance

5 Easy Ways to Save Money

January 31, 2012

I recently wrote an article for Frugal Edmonton Mama, sharing 5 easy ways to save money. Here’s a short sample:

Use a change jar.
A friend of mine starts a brand new change jar at the beginning of each year, depositing change into it at the end of every day. She is not allowed to touch this money until the end of the year, and when she does, she often has a few hundred dollars that she can put into her savings account or towards something she needs to purchase (like last year when she needed a new barbecue).

Read the full article here.

8 Comments Filed Under: Money Saving Ideas, Personal Finance Tagged With: save money

6 Ways To Improve Your Finances

January 24, 2012

With new year’s resolutions/goals well underway, I thought now would be the perfect time to share a few ways to improve your finances.

Are you looking to improve your finances this year? If so, try not to be overwhelmed. I know it can seem like a daunting task to pay off debt, save for the future and constantly monitor your money, but it’s really not as bad as it sounds – you may even find it to be a fun challenge (or am I the only one that feels that way?)!

1. Create a budget.

If you’re attempting to improve your finances, the number one thing I would recommend is creating a budget. Having a budget it place is one of the most beneficial things you can do to make your money work for you, instead of against you.

When you do create a budget, make sure you are being realistic with the categories you have laid out. Do you really need to keep your gym membership? Can you get rid of or lower your cable TV expenses?

You should always be spending less than you make. Check out my friend Gail Vaz-Oxlade’s pie chart for budgeting, which shows you how much you should be spending in each main category.

Sticking with a budget may seem difficult at first, but I promise that if you keep at it, you will start to see positive results.

2. Track your spending.

In order to create a budget, you need to know where your money is currently going. Do you know how much you spend on hydro every month? What about groceries and entertainment? If not, now is the time to start tracking what you spend. This information is essential if you want to budget successfully.

You must track every single penny you spend – including your daily $2 coffee and your random $5 dollar store purchases. Everything. Keep all of your receipts and enter them into your expense tracking spreadsheet once a week (or more often if you are able). Keep a small notebook on you, for those times when a receipt is not available.

It takes a few months to get used to tracking your spending, and I must admit, in the beginning it will probably be hard and feel like such a pain – but believe me, it’s necessary and it will be worth it. After awhile, tracking your money becomes second nature.

3. Pay off debt.

Debt of any kind is detrimental to your financial health, so try your hardest to get rid of debt once and for all. This should be your number one goal. You don’t want debt looming over your head as you go about your life – it will always be a negative source of energy that will constantly wear you down.

If possible, figure out a way to pay off your debt in 3 years or less. Any longer than that and it will seem never-ending and likely leave you feeling discouraged. If this means you need to take on extra hours at work, a second job or simply scaling way back on the categories in your budget, do it. It will be worth it in the end.

Think of how much better your life would be without a mountain of debt to worry about. That extra money can go towards saving for your future and enjoying your life right now.

4. Live within your means.

No matter how much money you make, you always want to live within your means. The amount of money you spend every month should be less than what you bring home. If it’s not, you are just digging yourself further and further into a debt hole that may eventually become too big to climb out of.

If you can get a grasp on living within your means, you will be able to use your savings to pay off debt and put money aside for an emergency fund, your child’s education, a down-payment on a home – anything you want! Wouldn’t that be nice? It is possible!

My philosophy has always been “sacrifice now so you can live better later.” Do you agree?

5. Save for your future.

Saving money is extremely important, yet many people put it last on their list. I couldn’t tell you the number of times I’ve heard people say that they only save “whatever is left over after all of the other bills are paid” (which is usually nothing at all) and that is a big no-no.

You should always pay yourself first. Think of your savings as a fixed expense that you can’t get rid of and make sure that is the very first “bill” that you pay every month.

When you start to see your savings as an important “bill” to pay, saving your hard earned cash will come much more naturally to you.

6. Don’t give up.

Finally, please don’t ever stop trying to improve your finances. I want to encourage you to always be learning, but don’t try to learn too much at once. Give yourself time to learn about one thing at a time and once you are comfortable with that, move on to the next. Don’t try to learn all there is to know about savings accounts, RRSPs, debt reduction, emergency funds and education plans all in one month. Pick what is the most important to learn first and go from there.

Remember that YOU are the only person that can take control of your finances. No one else is going to do it for you, so take the time to improve your finances and you will enjoy the benefits for years to come.

Everyone can do it – it’s not hard. It just takes time, dedication and perseverance. Believe, and you will achieve!

What have you done to improve your finances lately?

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8 Comments Filed Under: Personal Finance Tagged With: save money

How To Enjoy Winter Without Spending Money

January 10, 2012

Am I the only person who likes to hibernate in the winter?

I don’t know what it is, but cold weather and I just can’t seem to get along. Well, that was until recently… last month I decided that I wanted to make some fun winter memories with Elliott and realized that part of winter is enjoying the outdoors as well – cold and all.

So, I did a bit of research to figure out the best ways to have some free outdoor fun in the winter and you know what? I’m actually really excited about it. We’ve been having a lot of fun so far.

Following is a list of ways to enjoy winter without spending money.

Tobogganing
You had to know this would be number one, right? Tobogganing is obviously one of the first things people think of when it comes to outdoor winter activities and there’s a very good reason for that – tobogganing is fun!

Find a nice big hill near your home, grab a sled and go enjoy yourself! If you can, try to take a few photos as well. They will be nice to look back on when summer is here and you are melting in the heat.

Build A Snowman
This is a fun activity for every family member – not just kids. If you have enough snow on the ground, building a snowman can be a great way to spend your time. Not only is it a fantastic way to get some exercise, but you will feel really proud of yourself when you see the whole thing come together.

Don’t forget a nice warm scarf for your snowman!

Play With The Dog/Snowball Fight
We are always looking for ways to get our dog involved in our family activities. After all, he is a very big part of our family, so he needs to be treated that way.

Most dogs love to play in the snow, so why not bring your pooch outside with you and have a great big snowball fight (with you winning, of course – unless your dog is magic and can throw snowballs!)?

Go Ice Skating
Many people enjoy going to ice skating rinks this time of year and luckily, they are available almost everywhere. You are sure to find at least one in your community (and many are free)!

There are both indoor and outdoor rinks for you to choose from, but I highly checking out an outdoor rink. There’s just something magical about ice skating outside, surrounded by sparkling white snow.

Go Skiing
Okay, so this one isn’t exactly free, but I had to include it because winter and skiing just go hand in hand. I have seen a bunch of skiing discounts online recently, so look around for those before you plan your visit to the slopes.

Enjoy all of your falls too – they will happen and are all part of the fun.

Make Snow Ice Cream
This is something that we are trying for the first time and I cannot wait (we just need more snow)!

Find a clean patch of freshly fallen snow and follow this recipe to make some homemade SNOW ice cream. What an interesting idea! This is definitely something that kids could help with as well.

Snow Painting
Fill up a few squirt bottles with water and food colouring – then, take them outside and start “drawing” on the snow.

This is another new thing that we are trying this year. I have the squirt bottles ready to go – just waiting for a good snow fall. Don’t forget to take photos of your artwork, too!

If you’re used to being a couch potato in the winter like me, I encourage you to get up and get outside this year. Enjoy the cold, enjoy the snow and enjoy everything that winter has to offer! It’s much better than hanging around the house all day, don’t you think?

Please share your tips for enjoying winter without spending money in the comments.

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