Budget: May 2012

Budget for May is complete!!

Crossing my fingers that I'll be able to stay on track:

	Budgeted
Full Time Job	$2,810.24
Transfer from Planned Spending Account	$270.00
Mortgage + Taxes (3x this month)	$1285.54
Condo Fees	$75.01
Insurance (Car/House)	$97.69
Hot Water Tank Rental	$50.79
Car Maintenance/Licensing	$49.00
Extra Mortgage +Tax Payments	$65.00
Natural Gas	$95.00
Hydro	$45.00
Rogers	$140.00
Pension	$333.32
Emergency Fund	$50.00
RRSP	$100.00
Travel Fund	$200.00
Clothing	$17.00
House Stuff	$30.00
Gifts	$50.00
Food/Restaurant	$200.00
Entertainment	$40.00
Gas - Car	$140.00
Memberships	$15.00

Taxes Filed!

Within the first couple of hours of the CRA opening the Netfile process again this year I'm filed away!

For the past couple of years I've filed my taxes on my own using Turbo Tax....this year I thought that since my refund was more complex than in previous years that I'd need to use a professional, but I got along just find on my own.

I even used Turbo Tax via Great Canadian Rebates and earned myself $1.80 in the process.  Small steps!

I claimed approximately $7,000 in moving/home selling expenses since I moved 400km from Toronto to Ottawa for work, and need to carry over another $2,000 approximately to 2012, I will be getting a hefty return.

$3,583 to be exact! (My average return is about $500-600, this is a one-off because of the deductions)

So, how will I be spending this chunk of change:
Starting balance: $3,583
RRSP - Regular Contribution: $2,275
RRSP - HBP: $500
Emergency Fund: $408
Travel Fund: $400

My regular RRSP contribution slacked off between April 2011 and January 2012, so I'm throwing a good chunk in that account to start building it back up.  With this repayment into my RRSPs under the Home Buyers Plan (I withdrew about $22,000 in February 2011) I'll have repaid my 1/15th for 2012.

If you're anticipating a refund, how are you planning on spending it?

February Goals and Budget

With a new month upon us (January flew by so quickly) and the first entire month with a new budget in the condo, I thought I'd share my February budget and goals with you:

	Budgeted	Actual	Over/Under
INCOME - After Tax/CPP/EI deductions, but before RRSP/Pension contribution
Full Time Regular	$2,810.24		$2,810.24
FIXED MONTHLY EXPENSES - Under contract/obligations
Mortgage + Taxes	$857.02		$857.02
Condo Fees	$75.00		$75.00
Insurance (Car/House)	$103.97		$103.97
Hot Water Tank Rental	$50.79		$50.79
PLANNED SPENDING - Bills that get paid non-monthly/Anticipated Bills
Car Maintenance/Licensing	$40.00		$40.00
Extra Mortgage +Tax Payments	$72.00		$72.00
VARIABLE SPENDING - Bills that are variable each month
Natural Gas	$58.00		$58.00
Hydro	$50.00		$50.00
Rogers	$185.00		$185.00

SAVINGS - Long Term and Short Term
Pension	$333.32		$333.32
Emergency Fund	$75.00		$75.00
Travel Fund	$250.00		$250.00
VARIABLE SPENDING - Life
Clothing	$50.00		$50.00
Gifts	$50.00		$50.00
Food/Restaurant	$275.00		$275.00
Entertainment	$50.00		$50.00
Gas - Car	$200.00		$200.00
Memberships	$30.00		$30.00

The budget will get re-jigged into the spring when I get a better sense of what my utility bills will look like.  Until then, those are the numbers I'm working with!

This month I will pledge to:
- Go to the gym at least 2x/week
- Not spend a penny Monday - Friday
- Bring my lunch every day to work
- Plan weekly meals in advance
- Discuss with my boss vacation time over the summer
- Look into oil change/new tire for the spring
- Meet up with at least 1 old friend/acquaintance in Ottawa
- Look into volunteer opportunities

It's a good thing February is a short month!! 

Progress Update and an Unexpected Refund!

Well, four days into my No Spend Week, I'm batting 100%!  During my two day work trip my colleague who has a company credit card paid for meals, so I had no costs out of pocket.  I will be putting together a couple of Ikea pieces today and catching up on laundry, so I don't anticipate needing/being bored and wanting to go out and spend money!

Now, onto the surprise refund....my real estate lawyer let me know that the builder's lawyers had made an error in the figures I had to pay (they hadn't cashed the occupancy bank draft), and as a result I overpaid at closing by about $600.  Found money is always exciting, especially when it amounts to basically 1/2 a paycheque!

Here's my plan:
- Efund: $100
- RRSP: $100
- Travel Fund: $200
- Shoes: $75 (replacing a sensible black pair that broke)
- Car Fund: $75 (I have a replacement tire and oil change looming in the spring)
- Ottawa Fun Money : $75 (I've been itching to try snowshoeing and cross country skiing)

All in all, a good week thus far, and looking up....I have a movie date on Sunday!

Net Worth Goals

I reported yesterday that my current net worth is approximately $22,428.  Being that I'm now 28, I wondered what a "good" net worth would be by the time I'm 30.

So, I did some digging on the internet.

Based on a Survey of Financial Security undertaken in mid-2005 by Statistics Canada leading into retirement the median net worth by the age of major income recipient of the household was:
     Under 35 – $15,000
     35 to 44 – $140,000
     45 to 54 – $230,000
     55 to 64 – $407,000

Fast forward to 2009, when Money Sense looks into median net worths based on data from Stats Canada:
     Under 35 - $25,000
     35 to 44 – $145,000
     45 to 54 – $245,000
     55 to 64 – $420,000

Presently I am single with no children.  Since this may not always be the case, I've come up with a net worth goal for the next 5 years at age 30 and 33 considering the same scenario:
     Age 30 (August, 2012) - $33,000
     Age 33 (August 2015) - $55,000

I don't know if these figures are too low/too high/realistic, but writing a number down makes me accountable!

Have you set a personal net worth goal?

2011 Net Worth - January

I've decided every few months I'll do a post regarding my current net worth.

The schedule will be as follows:
Dec. 31, 2010 - $25,746
March 31, 2011 -
June 30, 2011 -
Sept. 31, 2011 -
Dec. 31, 2011 -

I wish that there were updated figures for more recent years, but I'm currently above the median net worth of the family head younger than 35 according to these Stats Canada findings:

How do you feel that your current net worth compares to where you'd like to be?

2010 Taxes

With 2010 now under our belts I've started thinking about tax time - I love filing my own taxes and researching ways of reducing said taxes.

Here's a list of my favourite websites to visit over the next couple of months in preparation for Efiling:
- Canada Revenue Agency: http://www.cra-arc.gc.ca/formspubs/t1gnrl/on-eng.html (for Ontario 2010 info isn't up yet)
- Tax Tips: http://www.taxtips.ca/filing.htm
- http://www.taxes.ca/index.php

Around this time I also start thinking about what I actually need to file my taxes.  Here's what I've come up with so far:
- Income slips - Previous job, current job, EI
- Expenses from moving from home town to Toronto - moving van, gas, meals
- TTC pass information
- RRSP contributions
- TFSA contributions
- Health Insurance Payments/Payments for services before I got health insurance
- Last year's Assessment
- Donation receipts

If I've done my calculations correctly, I think that I'll be getting a refund between $600 and $1,200 for 2010 - I need to do a bit more research around the Health Insurance claim (I paid $1,400 for yearly premiums plus $350 before I got coverage), but I'll do that closer to filing time.

2011 Goals

Now that 2010 has almost come to a close (I still can't believe it), I've gathered the scraps of paper I've been using to write down my goals for 2011 and consolidated them into one master list. 

My plan is to print and frame - from the dollar store - my goals and put them up in my closet.  This way, I'll see them every day, and that will hopefully keep me on track to accomplishing them.

FINANCIAL:

• Increase my Emergency Fund up to $5,000 - currently, it sits at $2,655.
• Increase my House Fund up to $33,000 - currently it sits at $22,027.
• Save $3,500 in my Trip Fund for Central/South America over the holidays next year - currently it sits at $531.  This savings will come entirely from work outside of my full time job. 
• Open a new ING account for Gifts - pay for all birthday, wedding, baby, Christmas gifts from this account.
• Track every penny I spend!!!

PERSONAL:

• See one or more high school friend each month - there are 8 of us who still keep in touch from high school, although most of it by email.  I'd like to see at least one of my friends per month to be able to maintain such great relationships.  Two friends are only GO Train rides away, and most others by bus, so it's not a big challenge to see them.
• Volunteer on a project - I've been in talks to sit on a Run for the Cure committee in preparation for the annual run in October in one of the GTA communities, so this one should be a guaranteed completed task. 
• Resume tutoring - I tutored all through high school and University and was able to bring in a decent amount of extra money with 2 or 3 students.  Over the break I've designed a poster to put up in town as well as on the web.
• Sign up and participate in a running class. 
• Become more healthy - for me, this means eating better and increasing my exercise frequency. It's a good thing all of those Christmas sweets are almost gone. 
• Travel - I'm aiming for the holidays next year in Central/South America - see my post about this trip.
• Join a professional association in my field.
• Blog every weekday.

I am certain that I'll add more goals once one is ticked off as completed, but I think this is a good start!

Scary Canadian Stats

According to the National Post, between 2000 and 2009 property taxes in Canada increased by 50%.

On top of that, Canadian households now have a debt-to-income ratio of 148% in the third quarter, new Statistics Canada data show.

If that wasn't enough, Canadian household debt has risen 6.7% and our disposable income has dropped 1.5% during the third quarter of this year (Globe and Mail, Dec. 14, 2010)

As a single-income household I know that in order to fall into the debt trap I need to work to avoid paying interest to my credit card, taking out a loan to pay for a vehicle, and falling behind in my long-term savings.  The burden is on me to make more money if I'd like to go on vacation. Despite complaining in the cold weather, I know that I need to contibue taking public transit to grocery shop or volunteer because my savings would take a hit if I were to purchase a car.  To stretch my weekly jar money even further I know that I need to shop at a lower priced grocery store and market in the summer to keep my food costs low.  I also know that I don't need a fancy umbrella, that my $12 one will work just fine.

What strategies do you use to avoid going into debt? 

Read more: http://www.nationalpost.com/news/canada/Analysis+Canadian+debt+rates+continue+mount/3971673/story.html#ixzz185kCY71P

December Goals

Another month, another set of goals:

• Save $1,500 (divided between RRSP, House Fund, Emergency Fund, and Trip Fund)
• Spend no more than $75 in entertainment/eating out while at home over the holidays.
• Read 1 personal finance and 1 book for fun
• Donate to food bank (in food or money)
• Exercise on 12 days
• Limit eating lunch out to 1 time per paycheque (2 pays/month)
• Attend 1 free event

I am anticipating that the exercise part will be my toughest challenge, but I didn't want to leave it out just because it might take more effort!