Personal Budget Help

I have run a few of different businesses in the past, all while working from home, and currently run a couple part-time ones at home. I find it interesting that there are now so many schemes on the Internet about people working from home. Things like,  “Be part of one of America’s Fastest Growing Industries! Earn thousand of dollars a month – from your home – Processing Medical Billing Claims.”Then there are those that advertise for Internet marketing businesses claiming that you can work 2 to 4 hours a day while making $5000, $10,000, or more per month. If it seems to good to be true, it is! Read more »

Okay, I took a couple of days off from posting for the Canada Day holiday. It was a lot of fun! The kids loved it, and there were tonnes of things that we did – all cost free! (Not including the gas to get there.) What we did:

• Went to the neighbourhood celebration in the park – there was face-painting (the kids didn’t like that), crafts (they loved that), air-filled jumping tents (they couldn’t get enough), and a petting zoo. There was also concerts performed by several different bands. All cost us nothing!
• Bought some ice cream – okay that wasn’t free, but it was nice.
• Played in the local water park. The kids got wet and had fun there!
• Went to the fireworks display, which the kids loved! We’ll see if I can keep them awake again for next year’s display. My son was fascinated with these, although he was afraid the fire would come down to where we were.

Next year I think I’ll get an earlier start and maybe we’ll enjoy more stuff at another location, too. The provincial legislature grounds had a big celebration as well that might be a lot of fun. I just worry that that was a little more oriented towards older kids. We’ll see what next year has to offer!

The Country’s birthday is coming – Enjoy it, without much expense.

Parades are only one way to enjoy the upcoming celebrations. A lot of people also enjoy fireworks. These displays are usually put on cost free by the city and are a great way to enjoy the holiday for all people. There are other events usually put on by the city, even community leagues. Look at your local community newsletter for events; your city newsletter will also like list events.

Family events are very big during the daytime hours, and kids love these! Last year I took my kids to city hall and there were several things, including a petting zoo, face painting, and some free performances (a clown, a magician, and music). The kids had a great time, and they even went wading in the big fountain in front of City Hall. There are several events going on in our city and I may choose something different this. In fact, I probably will. but I have a big list to choose from!

Look around and see what your city or town offers! Don’t forget about the neighbourhoods. And don’t forget about simply enjoying the time with those close to you. If you aren’t into family events, then use the time in another fun way, go on a picnic, take a stroll, ride a bike, go for a swim. And enjoy the fireworks in the evening!

Things to Try Before Filing for Bankruptcy

It’s best to avoid bankruptcy if at all possible. The ramifications of such a filing on your credit report is a killer. And it stays with you for at least seven years. This makes it hard to get credit of any kind (mortgages, credit cards, car loans,etc.). It can also make it hard to start a business. And in Canada you cannot be the director of any corporation if in the state of bankruptcy. These are just a few reasons NOT to declare bankruptcy. So what do you do when you are in trouble?

Consolidation Loan

This is where your bank gives you a loan to pay off all (or a portion) of your high interest credit cards and similar debt. It’s an unsecured loan and usually has certain requirements tied to it, such as getting rid of some of the cards. Of course you can re-apply for cards and dig yourself another hole, but that wouldn’t be wise. This loan usually lowers your monthly payments and has no early payment penalties. This is often the first thing you should try!

Orderly Payment of Debts

This isn’t available everywhere, but where it is available, it sure helps. This is a legal agreement between you and your creditors where your interest rates are lowered, also lowering payments, protection from legal action, and where you must attend some kind of credit counselling services in order to better learn to manage your finances. It’s available in Alberta, Saskatchewan, PEI, and Nova Scotia, and may be available in some States.

A Consumer Proposal

This is one step above Orderly Payment of Debts and just below bankruptcy on the least desirable list. A consumer proposal affects your credit rating as it is administered by a trustee, and it will show on your credit report for at least three years. In most proposals you end up paying no further interest on your debts, and you pay less than the full amount owing, because your creditors would rather accept a deal where they get something, than have you file for personal bankruptcy where they will get less.

As with any problems with debt, it is obvious that a budget was not followed! The more serious of these require credit counselling and you will have to make a budget. If you are not yet at that point, have a look at my budget spreadsheet (which you can download here), and that will give you a start.

I’m also starting a basic budgeting course for anyone interesting. Enrollment will start on June 28, 2009. So look for that post! It’ll be cheap (like $25) and will include my advanced budget spreadsheet to anyone who enrolls.

Some “budget tips” are such that they may not really save money.

Saving money is more than just buying the item that has a lower sticker price. There are other costs involved that people don’t always examine.  How much does it cost to go to a certain store, versus going to the one closer? What about your time – what’s that worth? These things, and more, need to be taken into account when you’re comparing items. Here are a few examples… Read more »

Renting out a Spare Room for Extra Income

Some houses that people buy have more space than they really need. Use this space to make money and decrease your cash worries.

Ever thought about turning that den into a spare bedroom? Is there already a bedroom that’s unused? This could be a great opportunity to bring in a little spare cash into the household. Renting a room out doesn’t have to be a chore, and with a few precautions getting a roommate (roomer) that doesn’t interfere with your lifestyle and is responsible is quite possible.

Upfront Preparation for Renting Out a Room

Look at your local legislation! Each state/province has different legislation in their landlord & tenant acts. These are important to know what your rights and responsibilities are. If you are unable to provide what is necessary, then don’t do it. Usually the most difficult thing is simply getting a lock for the room. There are several rental agreements available online, such as this one for Alberta. Read these carefully! While they meet the requirements of the law, it is always possible to alter them and add provisions that are legal as long as they are initialled by both parties (such as, “No smoking; smoking on premises subject to 24 hours eviction and loss of damage deposit.”). Read more »

Save Money by Getting Rid of What You Don’t Need

Most people store things they don’t use all the time in their basements or garages. And they don’t realise how much this is really costing them.

Clutter. It sounds ominous, like something that we find annoying, but not really bad. A huge nuisance that we don’t want to deal with. Surely, it can’t be detrimental, other than its annoyance factor. But there are real costs to it that most people don’t realise.

Storage Costs for Clutter

How much stuff does the typical household store in the basement or garage? Of course there is the Christmas tree that isn’t really used except for a couple of weeks of the year and the decorations that go with that. But what else is being stored? If one were to look into the basements of many homes, it isn’t all that uncommon to find that half of the basement (or garage) is simply crowded with stuff. And many people hardly know what is there. It could be memorablilia, sports equipment that is hardly used, old clothes, and a myriad of other things. Read more »

I’ve been doing a lot of reading lately on the costs of pets. And I am astounded by it! I suppose I should have realised it, as I have also been a pet owner. I got rid of my dog because I didn’t like her personality and was worried when my son was born that she would turn on him. Kids first, pet much later… Well, I looked at an SPCA site that shows the costs. Here’s a summary:

• To keep a medium sized, mixed breed, spayed female dog the yearly cost will be approximately $1,196.00 per year (this does does not include emergency medical care, initial vaccinations, obedience classes, the cost of fencing, or bed).
• To keep a spayed female, domestic long haired cat, the yearly costs will be approximately $899.00 (This does not include emergency medical care, initial vaccinations, the cost of an outdoor cat run or bed).
• To keep a domestic rabbit the yearly cost will be approximately $449.00 per year
• To keep a domestic guinea pig the yearly cost will be approximately $420.00
• To keep a domestic hamster/rat/gerbil the yearly cost will be approximately $225.00

None of these include one time costs for things such as vaccinations, collars, cages, feeding bowls, care products (brushes, clippers, etc). And of course any medical costs are not included, as they vary depending on the health of the animal.

A lot of people do not really think about the ongoing costs of a pet. And if you have a pet that does such things as destroy your property by chewing or messing in the house, then these costs only escalate. Also consider the impact that a pet will have on your lifestyle. Pets take care. They do require a lot of time and energy, and while that might be very worth it to some people, not everyone realises the true commitment it takes in terms of personal time and effort.

If you decide to have a pet, also consider the long term health care costs. If your pet is a larger animal, such as a dog or cat, then the veterinary bills as the animal gets older can be considerable. Put this into your budget! There is pet health insurance available, which in many cases is a good idea (I used to have it for my dog). You could also self insure through a savings plan, such as putting $25 or $50 a month aside into your savings account and have it allocated to pet costs for the future vet bills.

Alwasy plan your budget thoroughly, and remember each cost that you have!

I’ve recently been trying to think of things to do that are fun and free. The kids are my big motivator for this, so I brainstormed, and here is a list that I came up with.

1. Colour. Get out the paper and crayons and try to come up with some creative things. We recently traced all of our hands and made pictures form those. I kept one that has all of our hands traced on one sheet and dated it. The picture is a real keeper, as it shows the kids’ hand sizes right along with mine.
2. Go to the Library. There are often activities for kids at the library, especially on Saturday or Sunday mornings (at least in my city). Check it out! And the kids loved picking out books for me to read to them.
3. Play Board Games. Even with my kids, who are really young (2 and 4) this is a blast! We play snakes and ladders as well as some other kids games that were given to us that the kids enjoy, and I have fun with them.
4. Bake. We bake something at least every other week. I bake all my own bread at home, so this is a big money saver! The cost of a loaf of bread, baked at home, is about 25 cents for the ingredients. And it costs me about $3 for the same loaf of bread in the store. And the kids love mixing the dough and pouring the ingredients. And when it’s warm out of the oven, then we all get a slice smothered in margarine. Mmmmm! We also bake banana bread, cake, and sometimes cookies.
5. Take some digital pictures. Even my kids get a turn with the camera! They love it and we get to look at the pictures on the computer afterwards and laugh, especially at the ones my son takes of his face really close up!
6. Go to the playground. I know it may sound basic and silly, but it really is a lot of fun! I play “catch me” with the kids, where they get to run around and I have to pretend to try and catch them. We sometimes get other kids in the playground who want to play, too. And I find I’m the only adult in the playground (most times) who is actually playing with his kids. It also gives me a great workout! you’d be surprised at how much energy it takes to keep up to a four year old kid. Go down the slide, swing on the swings, help your kids to climb, even play in the sand. It’s great for your spirit, too! Read more »

Whenever we look at our budgets and ways to cut back, we try to think of what the most flexible part is. Most people think this is the entertainment budget. And sometimes they are right. Others might think that the most flexible budget category is groceries… food!

So how much should we realistically be spending on food? Well, there is not set amount per person. How can there be? Our diets are so varied that one cannto say what is reasonable. But there are certain strategies that everybody can use to keep the bills low:

• But frozen instead of fresh meat. Frozen meats are less expensive, even for the same cuts of meat. This doesn’t mean to buy the fancy breaded and/or stuffed portions. Just buy the meat alone. This can save as much as 50% (sometimes) more on the price of your meats. This includes red meat (beef, pork, lamb) as well as poultry and fish.
• Buy frozen vegetables in larger packages. Yes, it’s cheaper to buy forzen peas than fresh or canned. And the frozen ones are better for you than the canned ones. And bigger bags are cheaper by weight. All vegetables work this way; peas were just an example.
• Don’t buy the sugary, colourful cereals. Buy bulk cereal or oatmeal (not instant oatmeal). These cereals cost less and tend to be healthier, too. Not only will you end up saving money by purchasing a less costly product, you may end up slimming down a bit and feeling better for it. There’s a lucky break!
• Don’t eat out! Really! Eating out is very expensive. You can eat the same food at home for at least half off, if not more. I’ve seen meals in a restaurant cost as much as ten times what it costs to make the same thing at home. And the home cooked one is often less fattening and tastes better.
• Don’t buy for convenience. This goes for all of your foods! It’s much less expensive to buy a bag of potatoes and cut tehm up for French fries than it is to buy a bag of frozen, pre-cut fries. And you’ll still have a lot of potatoes left over. This rule holds for most convenience foods and meals. Instead of buying frozen dinners, make a few up a week ahead and freeze them. Then you’ll have ready made meals, already in a package (the dollar stores sell freezable, re-usable containers super cheap – you’ll save lots, even accounting for buying a week’s worth of these containers).

As always, track everything! Not tracking things is a mistake that is so common to make and tends to mess people up all the time! You’ll be amazed at how changing the style and habits of your grocery shopping can chop a lot of dollars off your food budget.