Are You Saving for Retirement?

Here in Canada, we are fortunate to have a fantastic registration program known as the RRSP, or Registered Retirement Savings Plan.

Unfortunately, lots and losta people have almost no idea what they are talking about when it comes to their retirement savings.

"Hey Eboo! I just invested in an RRSP!"

Me: "Um. No you didn't. You invested in a savings account, GIC, mutual fund, etc. and registered it."

I have understood the basics of RRSPs since I first heard about them, thanks to a swell guy named Dave F. who took the time to explain it properly to me.

When we head into that time of year when the financial institutions start flogging their RRSP products (read loans), you should have a basic understanding of how it works before you even give them the opportunity to confuse you. Because they will.

Here is a great article that my hero and financial Sham-Wow, Gail Vaz - Oxlade wrote on her blog to help explain it in the simplest of terms. Please take a minute to go read it, and tomorrow, I will post more on the RRSP and how to use it to your advantage.

We Talked Last Night

Hubby & I had a very impromptu budget meeting last night.

He brought me his Holiday booking sheet from work. If he wanted to book time off in the first three months of the year, he would have to book it now. He thought it would be a good idea to book a week off for a tropical vacation we should be taking. I reminded him that there is no way that a vacation like that is in the budget.

He's very disappointed about that. Now he knows how serious our financial situation is, once again.

The good news is we have an income still coming in, both his and mine. The bad news is that all savings we did have to keep us afloat is now gone. Again, we will be spending the winter struggling to keep up with the bills, and paying whatever we can toward the debts.

We agree that we hate feeling this way, like we're always seconds away from financial disaster. I think he's now aware that he must be much more involved in the day-to-day workings of our money. The way it is now isn't working. I always have to be the bad guy, and say no to things that I want as much as he does. (And Lord knows I have trouble saying no to spending money!)

We are still very much a work in progress. We have paid off huge amounts of debt in the last three years, and there is more waiting to get paid off. It's just different kinds of debt now. We're still living above our means, and that is something we need to work hard at changing. Together, we can do this.

Owing the Taxman

In the end of May monthly report, the amount of tax owing was $4432.11.

When I filed my taxes, I had that balance down to $2,829.52. 
I had paid down $1602.59 of it. I also finally filed my 2010 taxes the same month.
I knew there was more to pay the tax man when I filed, but now I have my Notice of Assesment in my hot little hands.

It ain't pretty.

For the record, I am paying on taxes owing for 2009, to which they've added taxes owing for 2010, and a notice that I may have to start making installer payments for the tax year of 2011. This budget monster just keeps getting bigger and bigger. :(

I remember watching Gail on an episode of Til Debt do Us Part, where someone who hadn't filed their taxes on time (or at all) and owed Revenue Canada a considerable amount of money. She explained that not only does RC charge interest on balances owing, but they will also charge late filing fees and interest will be charged on that as well. Adding that every year you are behind in filing, the interest rate and fees on balances owing will climb, from something reasonable like 2% to extrodinary like 10% or even 50%. I remember thinking, "What a dumbass!"

Now who's the dumb bunny?

$2829.52  amount left owing from 2009 Tax year
$6250.29  amount owing for 2010 Tax year
$ 500.02  late filing penalties
$ 150.15  arrears interest
--------------------------------------------------------------
$9729.98  Total Amount now owing to Revenue Canada

Now to figure out how to pay this monster off.

I Dreamt

This morning, for the first time in what seems like forever, I dreamt, and somewhat remembered what I dreamed.

Mostly it was having this intense hunger, and having food in front of me, and the something happened which made me not be able to eat. I dreamed of turkey dinner, with all the fixings. More specifically of dressing, mashed potatoes and gravy. Then it was chili dogs. I wanted cheerios when I woke up. :)

The dreams were also violent, and seemingly very real. Car accidents, fistfights, and stabbings.

But I'm glad they are over.

I wanted to go to Timmie's this morning for a coffee and muffin, but decided instead to come home and just make my own. Less spending equals happier budget. And we are on a tight one this month. Bills are piling up, and nothing coming in as of yet. Stress be my name.

Worry over tomorrow's dental appointment has me jumpy. I do not deal well with pain of any sort. I feel like a little kid, frightened of the dentist, even though he's a really nice man who has promised me lots of freezing for the procedure. I'm still scared though.

I keep reminding myself to breathe deep, and remember that this too shall pass.