A Drive and A Good Talk

Every once in awhile, I have the pleasure of being able to bring Hubby with me to work. I especially love it when we have to go out of town, so I have his undivided attention for a few hours. We usually take this time to reconnect through conversation, and the other day was no different.

I was finally able to tell him my concerns about a work situation. I know that no one has any true security in their job anymore, and I am no exception. Thinking about the very real possibility of job loss, I wanted to talk about what we could and would do if one or both of us were to lose our jobs through no fault of our own.

As much as I love my Hubby, I know that he is a typically pessimistic person and that he usually brings my optimism down a notch or three. So for this conversation, I was not particularly looking forward to having it, nor was I thinking it would be a good one.

I was wrong. (And that does not happen very often.)

Hubby talked about the situations going on at his place of employment, and how it could possibly end up with him having a job loss. Please understand, that since he was 16 years old, Hubby has never been without work for more than a week, so unemployment for any length of time would be a whole different thing for him.

We talked about his options: going back to school for trade specific training, or for a whole new line of work altogether. He said he was willing to take almost any job that paid more than minimum wage, and if necessary, would take a min. wage job too.

We also talked about my options should I become unemployed. I offered a few suggestions of where I might also apply to work to stay in the same field, along with what I could do to increase business should I decide to stay self-employed. If worse came to worse, I would take whatever job I could in order to keep our family afloat.

Things that we could do financially to keep us going were a big part of the conversation. We talked about reducing cable, cellphones, and other variable expenses would be our first line of defense. Preparation was also a main point in the conversation. We agreed that we have been lax in the area of saving up enough money to see us through a rough patch, and have resolved to fix this as best as we can. So on Sunday, I sat down with the budget and financial plan and re prioritised our 2013 goals page. I will sleep better at night once we have at least $1000 each in our Emergency Fund and Emergency Essential Expenses accounts. As for the taxes owing, well, the sooner I get that paid off, the better we will be all the way around. I will be posting occasionally about how we are bumping up these funds and paying off the tax man.

We are no longer burying our heads in the sand. We're thinking like optimists but planning like pessimists.

Have you put any thought into how your family budget would survive a job loss or god forbid, a double job loss? What would you do?

A Phone Call I Don't Want to Make

As you may remember a few short weeks ago, we were able to hit a financial milestone; we became consumer debt free. With things being what they were for bringing in an income, we decided to get a loan for a new vehicle. Some would definitely say this was incurring more consumer debt, and I suppose technically it is. However, my ability to earn an income is dependant on my vehicle of choice, so the decision to do so was a no-brainer for me.

I would love to say we have no debt at all, other than the vehicle, but I would be lying. On one of the side pages, Expected Debt Payoff Dates, you will see that we still have some lingering debt, none of which is considered 'consumer debt'; at least not by us.

First and foremost is the money owing to The Tax Man. I have been having difficulty for the last three years determining how much income tax I will owe because my income fluctuates from year to year. Part of the problem in the beginning was that I never gave any thought that I would owe money, therefore I never saved any to give to the Tax Man. Gosh was that dumb!

Fast forward to yesterday. I get a nice letter in the mail from CRA saying they have tried to contact me with regard to my outstanding balance. (For the record, I haven't had any contact with them No phone calls, no voicemail, just my regular statements in the mail.) It seems that the Tax Man has just about run out of patience, and wants me to make a deal with him to get my taxes paid. Just in time to add on the 2012 taxes owing too. Woo hoo, am I excited! (If you didn't catch the sarcasm there.....)

I know that when I do call them, they will want me to commit to a repayment plan that will have all outstanding debt paid off in 12 months. Truthfully, I have absolutely no idea how I'm going to manage adding an additional $1000 per month payment to my already difficult budget. I don't know how to even incorporate an additional $500 payment to our budget. I guess its time to go back to the basics, look over the budget, and trim, trim, trim. I'll have to put every extra dollar not already earmarked for something toward this debt. The alternative is rather scary, to say the least. Do you have any idea what CRA can do to someone when the demand their money? It sure ain't pretty, I'll tell you.

I will call them and see what we can figure out. Hopefully, they will take it easy on me until I can get this mess sorted out.

December Goals Update

1. Add $279.50 to any one of my RRSP accounts. This will round up my contributions for the year to a full $1200. $195 / $279.50.
2. Add $100 to the Emergency fund. Slow and steady wins the race. Done.
3. Add $50 to the Emergency Essential Expenses Account. $5 added.
4. Set aside $400 for the new van payment.
5. Pay $200 toward Income Tax owing. $50 paid.
6. Get $1000 RSP loan from bank. Applied, I think.?
7. Open TFSA account at CIBC for accelerating van payments and adding to house down payment fund. Done.
8. Get credit report and score so that I can do yearly update. Bank is getting this for me.
9. Add DD2's account to my 'bill list' to do online transfers for her savings account. Done.
10. Pay off $79  $231.76 owing on credit card by due date, Dec. 20/12. Paid $50.

I met with my rep at the bank this week to apply for the RRSP loan. I could just make a $1000 contribution, but I want to do it as a loan for a couple of reasons; the bank has a promotion going on that if you have three of the qualifing products, you get a reduction in bank fees across all your accounts - the only one I don't have already is a mortgage or loan, so I opted for the loan. Tax reduction is self-explanatory, and saving for retirement/home down payment are bonuses. :)

I also opened a TFSA account with CIBC so that I could set money aside as a buffer for the van payments. However, using my online banking, I am not easily able to transfer money to this account, so I will have to check to see how I am able to do that.

I'm only $84.50 away from my yearly RRSP contribution goal that I set for myself so long ago. I want to hit this goal in the worst way!

I'm adding to many of our savings accounts now while I am able to. There is already $100 in the account for Christmas 2013. The emergency fund has been added to. I've put money in both of the kids bank accounts. Money is set aside for upcoming auto maintenance and licencing. Vacation account has a little something to get that one started. I've increased the monthly contribution amount for the kids RESPs.

I also paid some bills before I went shopping. Oh shopping, how I love thee. But that's a whole post for a different day.

December Mini-Goals

Here are some things I'd like to accomplish financially to round out 2012.

December Mini-Goals, 2012

1. Add $279.50 to any one of my RRSP accounts. This will round up my contributions for the year to a full $1200.
2. Add $100 to the Emergency fund. Slow and steady wins the race.
3. Add $50 to the Emergency Essential Expenses Account.
4. Set aside $400 for the new van payment.
5. Pay $200 toward Income Tax owing.
6. Get $1000 RSP loan from bank.
7. Open TFSA account at CIBC for accelerating van payments and adding to house down payment fund.
8. Get credit report and score so that I can do yearly update.
9. Add DD2's account to my 'bill list' to do online transfers for her savings account.
10. Pay off $79 owing on credit card by due date, Dec. 20/12.

Notes:

1. Must keep adding to my RRSP. I have no company pension available to me when I will be ready to retire, so I have to do this for future me.
2. I can focus on the emergency Fund now with other things off my plate now.
3. This is our 'Life Backup Plan' if Hubby or I were to lose a steady source of income. It needs to have a lot more money in it.
4. Yes, we bought a new van. It's pretty, and beautiful, and shiny and new. And expensive.  And necessary. No regrets.
5. I will get this bill down every month and pay it off. I'm aiming for 2013 year end.
6. For credit history improvement purposes. I know I can borrow this amount and pay off within a year. :)
7. Already done. :)
8. In the works.
9. Need to do this so I can transfer her monthly allowance to her own account.
10. Start the new year off without any CC debt. :)

Do you have any goals for December?

Coming Back and New Goals

I have missed the blogging community greatly. I felt like I was part of something, and then I was missing out on the friendship and sharing. But it had to be done. I had so much to say, but I was under wraps for awhile (self-imposed). I know me. I have trouble keeping my mouth shut, lol. But now, I can talk a little more freely about what has been happening.

The big news is that the company I work for has opened an office location right here in London. I'm still working part-time hours, and if all goes well, I should be out from under my probationary period in the next week or so. This will enable me to serve my client families more efficiently.

My goals for working with this company are to become a full-time employee, to gain status as a managing director, and eventually be able to 'buy-in' as silent ( Ha- who am I kidding? I'm never silent!) partner for this location.

In anticipation of major changes ahead in the next few years, I'm forging forward with personal and financial goals also.

Toward the beginning of the year, I opened yet another RRSP account at my bank. I put a small deposit in, and left it be. No further deposits to date. After thinking about it for a time, I realised that I could use this account as my 'Home Down payment Fund'. Using  the Home Buyers Plan, I can 'borrow' my own money from my RRSP, up to $25,000 toward the purchase of a home. Meanwhile, any deposits I make will count toward my RRSP contributions for that year, giving me a small break on the amount of tax I will owe.

Still with me this far? Good.

I will still have to 'pay that money back', but since it's mine, there won't be any outrageous interest fees associated with it (at least none that I am aware of). Just a repayment schedule that the government defines.

So off to the bank I went, and signed a paper to say that they could take $25 per pay out of my chequing and put into the 'House RRSP Fund'. I know it will take me a hundred years or so to save up a down payment at that rate, but it's a starting point, ya know?

Seeing as I've hit the big 4-0, I've been thinking lots and lots about where my life is headed, where I am right now, and where I want to be in the future. I want to have a home of our very own, however modest it may be. I want to have money in the bank should the day ever come that I want to semi-retire. (I'm pretty sure if I ever fully retire, it will be due to health reasons only.) I'm putting away money to help partially pay for my kids post-secondary educations. Our debt is almost gone...Can you say U-RAH to that!!!! We've finally gotten that consumer debt monster down to something manageable.

On the other side of the coin, it looks like we will be shopping for a newer vehicle this year. Well, we have been looking for awhile, and I have absolutely nothing saved up for a new van, but we will need to replace it I think. A van is vital to my employment, so hopefully we can get a good deal on a 1 or 2 year old used one. I'm hoping for a Dodge Grand Caravan with Stow-N-Go seating, but we will see. I will not be taking out another 7 year long, $28,000 car loan, that's for sure.

One of these days, I will get around to updating my reading list. I've read a ton of books over the last little while, which has certainly helped my keep my shopping habit under control. Speaking of shopping, I'm working at the couponing again to keep our grocery costs down with budget limits. I think this is the first May in the last 5 years that we have stuff in the pantry, cupboards and freezer and I don't feel like an unfit parent. I'm anticipating what we will need over a given period and stocking up (not extreme couponer style) some of the things that we regularly use when its on sale.
I'm feeling good about life these days. I hope it lasts.

What are you feeling good about today?

A Promise Kept to Myself

It wasn't all that long ago when I sat down with mounds of paperwork to do the preparation for my taxes. I had to call in some help (my sister) because the task was just too overwhelming. When it was finally all finished, I ended up filing several months past the date that they were due. My procrastination cost me hundreds of dollars in late fees to the government. I promised myself that I would not let that happen ever again.

In Canada, anyone who files a business tax return has until June 15th each year to file. I usually consider this my deadline, but this year, I'm taking a different approach. This past year, I think that my income from all sources may have surpassed Hubby's income. Some of our deductions go to the lower income earner in the household, so this year it will be more of a surprise to see if it will go to me or to Hubby.

I learned some things during last years tax difficulty. I need to keep thing separated by month and not just by category. Doing this somehow makes it easier for the tax preparer. It also makes it easier for me to compare with annual numbers from past years, and to make some budgeting predictions for the coming year.

This activity will takes a few hours each day over several days to complete. Then I go over everything one final time, just so I don't miss anything. This task usually involves a lot of swearing, coffee drinking and chocolate eating to get me through it. But this year, I have healthy snacks at the ready, and the coffee pot full.

Wish me luck! (If you don't hear from me in the next couple of days, that will be because I'm buried under a pile of paperwork.)