Tag: Budgeting

#MoneyMasterClass Recap–Week 15

#MoneyMasterClass Recap–Week 15

A Few Truths

Gail started the week sharing a few of her tidbits of wisdom.

 

 

HISAs and Interest Rates

Gail already had us looking for High Interest Savings Accounts (HISAs) with good interest rates and she had instructed us to move our money to get it working harder for us, but she reminded us of the importance of this again this week.

 

Participants shared some of their banks and their HISA interest rates in this tweet.

Personal Economy

The focused turned, as last week did, to the concept of our personal economy.

 

 

Gail clarified what a “strong financial foundation” meant in a tweet.

A strong financial foundations includes the following:

1. A budget that YOU KNOW balances
2. No consumer debt
3. A car loan that’s not longer than 5 yrs
4. An emergency fund — 6 months of essential expenses
5. A curveball account
6. Enough / right kind of insurance
7. An up to date Will & POA for financial/medical

 

A Couple of Reminders

 

Just for Fun

Gail shared a throwback picture in a challenge to share a photo that no one would recognize as you. To see her photo and the other retro photos that people shared, go here 🙂

 

New to the Money Master Class? There’s still time to get started!
Check out this tweet to see all of Gail’s #MoneyMasterClass tweets from the start.
Check out my weekly recaps to get caught up.
Start here with the Money Master Class Intro and Week One Recap
Missed last week? Find it here: Week Fourteen Recap

#MoneyMasterClass Recap — Week 14

#MoneyMasterClass Recap — Week 14

Wants vs. Needs

We touched on this subject earlier in the year, but it impacts our budgets so much that it bears repeating.

Needs = things we must have to keep us, body and soul, together.
Wants = things we like to have.

 

 

 

 

 

I’m definitely guilty of giving into my wants. One example is this past week where I bought the biggest possible bag of Mini Eggs to help me cope with some emotional stress. Now I could argue pretty hard over this purchase being a need, but I get that it isn’t. One way I make these emotional purchases work for me is to have a set grocery budget that I can spend any way that I want to. If I spend $15 on Mini Eggs this week, that means I’m eating some pretty basic groceries next week. That give and take is one reason I love budgets.

The Curveball Jar

Jar #1 is the “Found Money” jar (also referred to as the savings jar recently).
Jar #2 is the “Food Tax” jar.
Jar #3 is the “Curveball” jar.

 

 

Our instructions to start this Curveball jar were to take a look at our food savings money, our Found Money jar and our Food Tax jar, then move that money into the Curveball jar.

I don’t have a lot of money in my jars yet, but I’m hoping to sell some things once social distancing is no longer necessary and will try to build up the jar money then.

Curveball Account

“A curveball account is one step to strengthen your personal economy.” — Gail Vaz Oxlade

 

 

The important distinction that Gail made about the Curveball Account is that it is different than an Emergency Fund. The Curveball Account is for those small, unexpected curveballs that life likes to throw at us, where an Emergency Fund is for a larger life crisis.

 

 

ATM Fees & Your Personal Economy

I think the first thing I ever learned from Gail was that, if I’m paying bank fees, I’m an idiot. I hate giving away money when I don’t need to and that’s what bank fees feel like for me. Gail touched on this topic at the end of the week.

There were two specifics to look at and do:

  1. Take 3 months of your bank statements and add up how much you spent on bank fees and ATM fees. Divide that number by 3 for your monthly average. Decide how you feel about that number.
  2. Stop using any ATM that’s not affiliated with your bank to stop paying big fees!

Gratitude Practice

 

One of our ongoing tasks for the year is a weekly gratitude journal or practice. I’ve still not gotten into a good rhythm with this, but am grateful for Gail’s continued reminders about it.

In addition to Gail’s tips and reminders–and the Mini Eggs I bought–I’m grateful for the good books and music I’m using to pass my time.

What are you grateful for this week?

 

New to the Money Master Class? There’s still time to get started!
Check out this tweet to see all of Gail’s #MoneyMasterClass tweets from the start.
Check out my weekly recaps to get caught up.
Start here with the Money Master Class Intro and Week One Recap
Missed last week? Find it here: Week Thirteen Recap

#MoneyMasterClass Recap — Week 13

#MoneyMasterClass Recap — Week 13

“Money is an exhaustible resource.” —Gail Vaz-Oxlade

Choosing Investments

Our first task this week was to choose some investments.

 

I truly didn’t have a clue where to start doing this. I actually still don’t, so if you’ve had success with this please let me know!

Google has so far led me here: TMX Market, which seems to be a right type of place to look at stocks, but I haven’t had the brainpower to seriously investigate yet. I am going to be easing myself into this string of tasks.

Thankfully Gail is reminding us that it’s okay to make mistakes. After all, it’s only pretend money at this point!

 

 

Remember the Golden Rules

 

More Tips

Gail gave us a few more tips as we start to look at investments.

 

 

 

Taking a Gamble

Even if investing feels like a bit of a gamble, stay away from taking a gamble on your retirement. Gail does make the distinction between using funds budgeted for entertainment to buy lottery tickets and buying lottery tickets as a retirement plan. If it’s in your budget and for entertainment, that’s you’re choice.

 

 

How did you do with this week’s tasks? What did you learn from choosing investments to watch?

 

New to the Money Master Class? There’s still time to get started!
Check out this tweet to see all of Gail’s #MoneyMasterClass tweets from the start.
Check out my weekly recaps to get caught up.
Start here with the Money Master Class Intro and Week One Recap
Missed last week? Find it here: Week Twelve Recap

#MoneyMasterClass — Week 12 Recap

#MoneyMasterClass — Week 12 Recap

Fast Food Tax

We have slowly been given instructions for all of the supplies we gathered at the beginning of the year. Our first jar is our Found Money jar and now we have instructions for our second jar.

Jar #2 is our Fast Food Tax jar. Every time we go for take out food, the instructions are to place that same amount we spent on take out into the Fast Food Tax jar.

Thinking of Investing

With all of the events that are happening in the world right now, it could seem like a strange time to be focusing on investing, but is there ever a perfect time? Since I know so little on the topic, I’m looking forward to learning all that I can so I’m more prepared to make smart choices when things start getting back to normal.

 

 

 

In addition to not investing until you have your consumer debt paid off, don’t forget Gail’s golden rule for investing: if you can’t explain your investment choice to a 12 year old, then you don’t know it well enough to be investing.

Risk Assessment

Gail provided some resources in order to evaluate our risk profiles related to investing, which are hosted on https://www.moneyproblems.ca/money-master-class/

The three items to complete on the site are:
1. What’s Your Risk Profile — Test #1
2. What’s Your Risk Profile — Test #2
3. Understanding Risk

 

Investment Timeline

No two people are in the same situation. Stages of life, risk profile, amount of money to invest…there are so many factors that will be impacting a person’s investments. One thing Gail emphasized this week was the “time horizon”–or how long you are going to have your money invested.

 

 

 

 

A Few More Reminders

 

 

 

 

 

How do you feel about this focus on investing? What did you learn about yourself by taking the Risk Profile tests?

 

New to the Money Master Class? There’s still time to get started!
Check out this tweet to see all of Gail’s #MoneyMasterClass tweets from the start.
Check out my weekly recaps to get caught up.
Start here with the Money Master Class Intro and Week One Recap
Missed last week? Find it here: Week Eleven Recap

#MoneyMasterClass — Week 11 Recap

#MoneyMasterClass — Week 11 Recap

There was a lot of info shared this week, but it started with three quick notes:

  1. Stop using single use products because they are a waste of money and are bad for the environment. Reusable items are cheaper.
  2. Collect 5 things from around your house and add them to your donations box to give away.
  3. Turn your lunch hour into something productive–go for a walk, read a book, knit…just don’t go wander around a mall where it’s easy to spend money.

Discipline

“Money isn’t rocket science, it’s discipline!” —Gail

Gail pointed out this week that it’s easier to be disciplined when you have your goal front and centre. She also shared a number of tweets about discipline and its payoffs.

 

 

 

 

I’ve been able to see the payoffs of discipline in some areas, such as my spending journal. After years of writing down every purchase I make, my spending journal is second nature to me. I’m looking forward to March’s topic of investing because thinking of and planning for retirement is an area that lacks discipline for me–among many others!

Allowances for Kids

Gail focused one day this week on tips and information about giving kids allowances this.

 

 

 

 

Gail shared a 5-point summary of her book Money Smart Kids:

  1. Give your kids an allowance. Kids can’t learn about $$ if they have no $$ to work with. Money management is a concrete skill. Yes, there are some abstract concepts you’ll have to cover but it all starts with nickels, dimes, quarters, loonies and toonies.

  2. An allowance not only provides kids with the $$ they need to experiment with saving & spending, it also gives them the responsibility for keeping their money safe and using it wisely.

  3. Allowance alternative = dole system: Your kid asks for $$ & you dole it out. No limits means kids don’t learn to set priorities or make a decision on relative value. Using the dole system now? Track all $$ you hand over to your kid in a month starting now.

  4. Use each child’s age as a guide, giving $1/week for each year of age (a 7-year old gets $7/week) You’re the best judge of the amount that will be most appropriate for your child.

  5. If you tie an allowance to chores, who pays you to do your chores? And when your child no longer wants to make the bed, will you stop giving the tool she needs to learn how to manage money well?

 

There were a lot of tweets and retweets about this topic, so here is a summary of some main tweets from Gail’s profile:

  • An allowance is the money you would normally spend on your kids, but it is now put in their hands so they can learn to manage it.
  • The money is not given “just because.” It is given for kids to learn how to manage money–and it’s a vital lesson.
  • An allowance does not have to be “earned.” It is the tool given to teach money’s best use through practice. If you want to reward labour, use a chore jar with posted pay for work items.
  • It is not recommended to tie your child’s allowance to chores or school performance. The day your kid turns to you and says, “Okay Ma, I’m gonna forgo the $12 a week you give me if I skip making my bed & taking out the trash.” Now what? When you take away the allowance, how does he learn about money? They don’t, and you’re stuck with the chores.
  • With respects to separating the child’s chore money between saving, spending, etc, limit the savings to 10% and include all sources of income. Some parents try to get their kids to save half, but who saves half their paycheques?
  • With respects to an allowance being called “free money,” it is only this if you look at it as such. Another view is it’s the money kids need in order to learn how to manage it. How much do you spend on your kids in a month? An allowance lets you funnel some of that money into the kid’s hands for them to manage themselves.
  • You’ve got to do what works for your family. Starting with less money is fine. You have to work with what you can afford. Being consistent in delivery & expectation is the MOST important.

Investing

Gail let everyone know that in March we will be looking at investing. We started last week by moving money into HISAs (High Interest Savings Accounts). This week Gail brought up some notes on RRSPs, TFSAs, and savings plans with your employer.

 

 

 

 

 

RESPs

Back to kids for a moment. Gail encouraged everyone to sign up for RESPs (Registered Education Savings Plans).

 

 

One Money Master Class participant also shared that there is a program available for lower income families called the Canada Learning Bond.
See information on this program here.

Big Batch Meals

Turning to money saving tips, Gail suggested we cook up some meals to stock our freezers. It’s a great way to prepare for weeks that are too busy to cook or need to stretch your grocery budget a little further.

Don’t know what to prep and cook? These are two sites that were shared this week that have over 100 recipes for you to choose from:

Bon Appetit “97 Big-Batch Cooking Recipes”
Meal Plan Addict “10 Batch Cook and Freezer Recipes You Need”

 

A lot of info was shared this week! What was the most helpful tip for you in this season of life? What are you most looking forward to implementing?

 

New to the Money Master Class? There’s still time to get started!
Check out this tweet to see all of Gail’s #MoneyMasterClass tweets from the start.
Check out my weekly recaps to get caught up.
Start here with the Money Master Class Intro and Week One Recap
Missed last week? Find it here: Week Ten Recap

#MoneyMasterClass — Week 10 Recap

#MoneyMasterClass — Week 10 Recap

Reflection

Last weekend, Gail had us reflecting on the steps we’ve taken. First was to tally up the number of days we shopped in February and to note what we shopped for. Second was to look at our Savings Journal and to add up the amount we saved.

In February I shopped mainly for groceries and gas, but I did have a few extra purchases because it was my birthday month. In total I shopped or spent money 16 out of 29 days. It was helpful for me to see the coloured squares laid out and to visualize my shopping habits. I didn’t realize that I spent money as many days per week as I did.

For my savings journal, I have saved $196.49 in January and February. I wish this was “found money” for me, but since I use coupons as a regular habit to keep my grocery budget lower, it was just a task that I used to motivate myself to keep using coupons.

Along with the reflection, here’s a little inspiration:

Spending

The first task of this week was to track everything we spend and to mark each purchase as a want or a need.

Need a reminder of the difference between wants and needs? Here’s Gail’s tweet about it.

The second task is to choose one day of the week to be a no-spend day. My day will be Mondays because I usually have to prepare for my work week on Wednesdays.

Saving

The focus then turned to savings and the search is on for good High Interest Savings Accounts (HISAs).

A few of the banks that Money Master Class participants have been talking about are Tangerine, Simplii, and EQ bank. The current interest rates listed for these savings accounts are:
Tangerine = 1.05% (Though there are promotional rates currently for 2.65% to 2.75%)
Simplii = 1.05%
EQ Bank = 2.45%

I’m looking into some of the options others are talking about and am grateful for all of the feedback being shared!

Gail shared a few helpful tips about saving:

  1. If your savings account is making less than 1.5% interest, it is not working hard enough for you.
  2. Planned spending is money you are accumulating to spend, such as for a vacation.  Savings is money set aside for a long-term goal and another chapter of life, such as retirement or your child’s education.
  3. Investing is putting money to work, where saving is just simply accumulating money.
  4. Debt repayment and savings should both happen at the same time.
  5. You just need to start somewhere. Start small and be consistent.

And if those aren’t enough, here’s a quick 5 minute video to check out:

Perspective

For next week, Gail has already laid out a challenge for us–and it really does feel like a challenge. In theory, offering praise (silently or out loud) to every person I interact with sounds great, but the challenge comes when those people are really unpleasant to deal with.

I’m blessed to work in a social services sector where my job is to help those in need. It is a job that gives me perspective on how a person’s pain and suffering can manifest in backlash towards me. For example, if one of our clients receives bad news or experiences a tough emotional day, this can result in them insulting me or yelling at me. Because I understand the story that is happening, I can have compassion for them and not internalize their behaviour towards me.

On the other hand, this week I had one of the rudest bank tellers, who begrudgingly gave me the help I needed, and I was so offended by her lack of care towards me and my business. I kept thinking “she must be having a really bad day” as she was completing the transaction, but I had trouble getting to any point of praise towards her. I’m going to remember this as I head into next week and hope I can get to those praise-filled thoughts.

 

How are you feeling about next week’s challenge? Do you have ways that you keep your energy positive in the midst of negativity? 

 

New to the Money Master Class? There’s still time to get started!
Check out this tweet to see all of Gail’s #MoneyMasterClass tweets from the start.
Check out my weekly recaps to get caught up.
Start here with the Money Master Class Intro and Week One Recap
Missed last week? Find it here: Week Nine Recap

#MoneyMasterClass — Week 8 Recap

#MoneyMasterClass — Week 8 Recap

Some simple instructions to start the week:

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Needs vs. Wants

The first big task this week centered around our needs versus our wants. Gail tweeted the question “What do you have classified as a need that is really a want?” and received a lot of input. If you’re mulling over the question, check out other people’s feedback here.

IMG_8069IMG_8066IMG_8067This week, we were again asked to press pause on our spending. But this week was different than waiting for 24 hours before making a purchase. This week’s “moratorium” was a chance to evaluate what we actually have on hand and to use it up before spending unecessary money.

Bargain Hunting

Gail broke down the difference between finding a bargain and being a bargain junkie.

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Years ago I used to be a huge bargain junkie. I use coupons and love a good sale, so often experienced that excitement of finding a mind-blowing deal. What I came to realize after ending up with an excess of items is that a deal, no matter how good or how cheap, is still a waste of money if I don’t need it. I also came to realize that deals cycle around, so even if I miss a deal this time, there’s a really good chance I’ll see the same deal again.

“My Shopping List”

The next task was to open up our “Me and My Money” notebook and write out a list of items we need and want to buy. I like the idea of keeping this list on my phone so that I always have it on hand to check if I do come  across a bargain while shopping.

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As we look at our list and shop and cross things off, that shopping moratorium should also help us evaluate our desires about why we want to buy and our actual space to store what we buy.

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Net Worth Statement

The week ended with our continued homework of taking inventory of our stuff. (Personal confessional…I’ve stalled on this homework because after listing 200+ books I feel overwhelmed at the thought of listing everything I own.)

IMG_8080The added assignment to our inventory was to create a net worth statement. A link to resources and instructions on how to do this is here:
https://www.moneyproblems.ca/money-master-class/

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Documenting our belongings is a perfect time to reflect on what we’ve purchased, what we’ve purchased that was actually a bargain, and what we’ve purchased that was out of our budget.

Looking Outward

Gail shared a reminder at the beginning of the week about how important gratitude is. She shared a link to an article about the science of gratitude in this tweet.

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I feel that the same can be said about giving back and volunteering. There is something special about contributing to your community and to other people’s happiness and well being. Money Master Class participants shared some of the ways they give back in their comments here.

Did you find it easy to evaluate your needs and wants this week? What were your takeaways from the task?

 

New to the Money Master Class? There’s still time to get started!
Check out this tweet to see all of Gail’s #MoneyMasterClass tweets from the start.
Check out my weekly recaps to get caught up.
Start here with the Money Master Class Intro and Week One Recap
Missed last week? Find it here: Week Seven Recap

 

 

 

#MoneyMasterClass Recap — Week 7

#MoneyMasterClass Recap — Week 7

This week’s focus was on our shopping habits and our vehicle costs and both were delivered in Gail’s no nonsense way.

Our Shopping Habits and Our Stuff

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I find I overspend by overstocking my pantry. I think it stems from my worry about running out of money to buy food. This year I’ve been slowly eating down my non-perishable items and am being more conscious of my extra spending on my grocery budget.

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I decided to make a larger purchase (well, a larger purchase for me) this week and I was contemplating it when I read Gail’s tweet about postponing purchases for 24 hrs.

Here are the three things I thought about as I waited to make the purchase:
1. Is this an impulse purchase that I’m making to fill an emotional need?
2. Is this purchase filling a practical/real need?
3. Is this something I can afford with cash on hand that is in my budget?

After waiting 72 hours and assessing the answers to those questions, I went ahead with my purchase and felt confident it was the right choice.

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I mentioned in this post about decluttering that I keep two boxes set up in my room to continually add to–one for donations and one for selling. I really agree with this study Gail referenced that our cluttered space can have an impact on how we think and feel.

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The Cost of  Our Vehicle

When my last vehicle broke down, I was blessed to have parents that hunted down a fantastic deal on a used car that I was able to purchase outright. But even without a vehicle loan, when it comes vehicle costs I cringe.

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Looking at my current monthly insurance payment and my budgeted amount for gas and parking, my vehicle expenses are 20.26% of my monthly budget. This does not include a lump sum insurance down payment or vehicle maintenance costs.

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I want to look further into vehicle expenses and nail down my planned spending for them. I would continue to guesstimate these costs, but now I picture Gail yelling at me when I think of doing that.

Like Gail says in this tweet, having vehicle expenses that are over 15% of your net income is something to seriously look at. By making the choice to spend more on transportation, I am also making the choice to spend less on other areas in my budget. The one thing I will not sacrifice on, though, is savings.

Vehicle Loans

Gail got real this week about how much our vehicles cost. Here’s a short list of her tweets about vehicle loans.

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In true Gail style, she slipped in some advice that applies not just to car loans, but spending in general. One of the reasons I’m grateful that we spent time in Week 1 focusing on our core values, is that it helps to reveal those times I’m shopping without a good purpose.

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Did you have any highlights from this week? How did you find stopping for 24 hours before making a purchase?

 

New to the Money Master Class? There’s still time to get started!
Check out this tweet to see all of Gail’s #MoneyMasterClass tweets from the start.
Check out my weekly recaps to get caught up.
Start here with the Money Master Class Intro and Week One Recap
Missed last week? Find it here: Week Six Recap

#MoneyMasterClass — Week 6 Recap

#MoneyMasterClass — Week 6 Recap

This week’s tasks were to colour, take inventory, and practice gratitude.

Tracking our Spending

In addition to continuing to track food spending, Gail asked us to track our buying habits by colouring on our calendar each day we spend money shopping.

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Take Inventory

The work started getting more real with week with instructions to take inventory of our stuff.

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It was also suggested to take note of all the subscriptions we have and to cancel any that are no longer needed or wanted.

The thought of taking inventory of everything in my house is literally too overwhelming and I have a small space. I was happy that the next instruction was more attainable with focusing on 6 items.

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I’ve completed five of my six counts so far by focusing on items I know I want to downsize or have spent money that I maybe shouldn’t have.

My List:
Scissors = 18 (13 craft, 5 regular)
Books = 219
Shoes = 31
DVDs = 71 (18 box sets, 53 singles)
Blank Notebooks = 12

I have this love of journals and notebooks and have this really bad habit of buying them on sale–the Chapters discount section is my kryptonite! I wanted to inventory this area to confront myself with the reality of what I own. While doing this, I actually found a receipt for some of these unused journals. This receipt was only for $13, but that’s still $13 I didn’t need to spend two years ago–that was a good dose of reality!

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While taking inventory of my stuff, I’m also considering what I want to let go of. A few years ago, I challenged myself to get rid of 30 things in 30 days. I kept this quote in mind for some of my choices: “Have nothing in your houses that you do not know to be useful or believe to be beautiful.” – William Morris

Counting 18 pairs of scissors and 12 blank notebooks was a reminder that I’ve got a ways to go on curbing spending and having a clutter free home, but it really is okay to be a work in progress. I’ve already sold 11 of those scissors and have added that money to my “Found Money” jar.

Practicing Gratitude

We put our first jar to work, labeling it the “Found Money” jar and then we turned back to our notebooks.

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I don’t practice intentional gratitude enough. 2019 was a difficult year and one that turned my focus from the positive to the negative. It’s been refreshing these last three days to stop and choose five things I am grateful for. It’s given me the opportunity to see how much life can change for the better in a year as 2020 is a much brighter one.

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And one last reminder from Gail for the week:

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How did the taking inventory tasks go for you? In the midst of all the counting, what things were you grateful for this week? 

 

New to the Money Master Class? There’s still time to get started!
Check out this tweet to see all of Gail’s #MoneyMasterClass tweets from the start.
Check out my weekly recaps to get caught up:
Money Master Class Intro
Week One Recap
Week Two Recap
Week Three Recap
Week Four Recap
Week Five Recap

 

#MoneyMasterClass — Week 5 Recap

#MoneyMasterClass — Week 5 Recap

This week was a chance to catch up on January’s tasks and to reflect on our core values.

Gail started the week with a reminder about what to think on when setting goals.

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Next, it was a chance to review our core values. I don’t think I spend enough time focusing on things like this, so I’m grateful for these opportunities to stop and reflect. I have not yet found a place for my core values to be front and centre. I might make a list to place on my wall, but for the time being their written out in a notebook that I have nearby.

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Next task: write a list of small things that bring you great pleasure.

Gail wrote about how important it is to find ways to have fun even when you’re in debt. Debt fatigue is a real thing. If someone is spending 5+ years paying debt back and not spending any money on having a little bit of fun, burn out will likely happen. This doesn’t mean go overboard with spending, but find small things that bring joy.

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If you have the time, there are two tweets from this week that I recommend reading through the comments on. They are both incredibly uplifting and are filled with helpful thoughts and suggestions.

The first tweet is about small, budget friendly pleasures. See what other participants are doing here.

The second tweet is about “glimmers” or those things that bring joy and peace to your day. See the list of glimmers that everyone shared here.

 

Do you have anything to add to the lists? What are your budget friendly activities? What about your glimmers?

 

New to the Money Master Class? There’s still time to get started!
Check out this tweet to see all of Gail’s #MoneyMasterClass tweets from the start.
Check out my weekly recaps to get caught up:
Money Master Class Intro
Week One Recap
Week Two Recap
Week Three Recap
Week Four Recap