Counting My Pennies

It may be a little too early to be doing this since I haven't even started my job yet but I'm trying to calculate how much $$$ I'm going to be bringing in between my new job at $60k and the part-time (approx 6 hours/week) not-for-profit job.

I asked for $25/hour on the not-for-profit job but even if they come in at $20, I'd be ok with that since my original plan was to volunteer anyway. I have a meeting tomorrow to finalize that.

So, being conservative at $20/hour, I'm looking at grossing an additional $240 every two weeks. Since this is a contract position, I can write off expenses and so I don't think I'll end up paying any tax on that income.

My regular full-time job which starts Monday should see me grossing $2,500 every two weeks. Less the 3% I'm deducting for RRSP matching and less taxes, I should be netting $1,785.35.

$1,785.35 + $240 = $2025.34 every two weeks (assuming 24 pay periods)

Not too shabby!!!

On the expense side of things, my work has agreed to pay for my personal blackberry and my husband has agreed to pay the rent (for the time being) and so my only real expenses are going to be,

*Utilities

*Internet service at home

*MS society donation

*Groceries

*Bank charges

*Paying off my debts

If I'm netting $4,050.70 each month, I should be able to take some serious bites out of my debt in no time.

I said it before and I'll say it again... I can't wait to start getting paid!!!!!!!!!

A New Appreciation for EI

Whenever I'd get a regular pay cheque, a nominal amount was deducted off the top for Employment Insurance (EI). I never really thought much about it and just accepted it as part of the tax I have to pay for living in Canada. The only time it ever crossed my mind was when I maxed out my EI contribution for the year and they stopped deducting, at which point I'd think "yahoo" an extra $20 (or whatever it is) into my account instead of the governments.

As of this morning, when EI depositted $802.00 into my account, I have a whole new appreciation. It turns out that since I was "forced" to quit my job and move because my spouse had to relocate for work, I am eligible to receive EI. In Toronto, I was making $50k annually which works out to the maximum weekly benefit of $447 less $46 for income tax - $401.00 every week. They were a week behind in processing my claim so that's why I got $802.00 this morning.

I'm hoping not to be on EI for that long though. It's not that I'm adverse to using the system (I do pay into it afterall) but I'm starting to get bored! Last week I applied for four jobs and there's one in particular that I'm pretty excited about. The managing director of that position doesn't return from vacation until next Monday. So, next Monday I'm going to go in and submit a paper copy of my application along with some letters of reference.

Now that I know that I have a regular stream of income - $401 per week until I find a job - I feel comfortable getting my budget reset. S is going to pay our rent & groceries and I'll be responsible for the following monthly expenses:

*elecricity

*internet

*my mobile

*MS society donation

*paying off Visa #2

*making minimum payment on my LOC

*national student loan payment

This should give me some flexibility to pay off my Visa at a quicker pace. Today I put down $206.92 plus $150 from my line of credit bringing my balance down to $5,350.00. I can't wait to be back at $4,900.00 which is where I was before I fell off the wagon.

Current bank account balance: $889.24

Friday Financial Analysis

Prior to my frugal days, the weekend was the most dangerous time for my bank account because of my weekend spending binges. It was like the money was magnetically repelled away from my wallet. I'd go to Costco and drop $250 at the til without any prior consideration or head to the outlet stores and cherry pick some cute shoes or outfit(s) to add to my already too small closet. Pointless! Looking back, I'm not sure how I managed that but I only have to look at the remaining balance on my #2 Visa card to remember.

Original Balance: $6,150.56
Today's Balance: $5,500.00
Total repaid to date: $650.56

I actually had paid off more but added another $500 on it for a trip back to Vancouver for the May long weekend. Anyway, the $650 is not impressing me and if I want to achieve my goal of paying off Visa #2 by the end of September, I need a plan!

Voici - "le plan"
The payment schedule is pretty stiff but I think I can do it. I really need to be frugal and save though because admist all this debt repayment, I also have to pay for a few other big expenses like another trip back to Vancouver for on of my BFF's wedding. Which reminds me, I really need to work on my 2009 overview budget this weekend.

Should be a pretty low key weekend this weekend. I went MIA on my turn for house-cleaning last weekend so I need to do that, then yoga and sushi which is becoming my Sunday ritual.

Today's bank account balance: $631.56
Minimum balance: $578.19
Ahead of the game: $53.37

Top Secret Budget

Unfortunately, this pay period I can't post my official budget because it includes some dolla dolla bills for S's birthday gift. It's his birthday next week!

Any stellar gift recommendations for a male stranger in his late twenties / early thirties? I've got a few ideas but am definitely open to any strokes of genius any readers may have.

However, I will post my minimum bank balances for the period because S certainly doesn't have time to sit there trying to decipher my budget!

Overall, I'm left with about $33/day to spend on my ok to spend days. It should turn out to be a fun and doable pay period.

Also, I need to get my taxes submitted asap! I've been waiting because the National Student Loan bureau hasn't sent my receipt for my interest credit yet (despite multiple phone calls). Since the deadline is just around the corner, I don't think I have much choice. S says I can carry the credit forward to next year though - providing I EVER get the form out of them.

Fingers crossed for a nice refund.

Bi-weekly Budget

So far I'm finding it easier to budget on a paycheque to paycheque basis. Potentially I might try doing a full monthly budget in May but doing it by pay period makes me feel like I have more control. Plus, my inner geek now loves budgeting so I get to do it more often.

Tuesday, March 31st to Tuesday, April 14th

Income $2,636.31 * Incl. $1,100 from S for Rent & Util.
Groceries (100.00) *April 5th
Internet (34.84) *April 1st
LOC (210.00) *April 2nd
Rent & Utilities (1,790.00) *April 1st
Visa (53.00) *April 10th

Total $448.47

Days In Pay Period, 15
No Spend Days, (5)
Save as Much as Possible Days, 10

Max Spend per ok to spend Day, $44.85

Minimum Bank Balance Per Day

Tuesday, 31-Mar $2,636.31 *no spend
Wednesday, 1-Apr $766.62
Thursday, 2-Apr $556.62 *no spend
Friday, 3-Apr $511.78
Saturday, 4-Apr $466.93
Sunday, 5-Apr $322.08
Monday, 6-Apr $277.24
Tuesday, 7-Apr $277.24 *no spend
Wednesday, 8-Apr $232.39
Thursday, 9-Apr $232.39 *no spend
Friday, 10-Apr $134.54
Saturday, 11-Apr $89.69
Sunday, 12-Apr $44.85
Monday, 13-Apr $0.00
Tuesday, 14-Apr $0.00 *no spend
Wednesday, 15-Apr Pay Day

My mininmum bank balance takes into account my budgeted expenses, then deducts my ok to spend amount on my ok to spend days. So far I prefer the flexibility of a budget like this rather than breaking down a specific amount for clothes, entertainment, etc. As long as I keep my account above my daily minimum's, I'll reach my current goal of paying off Visa #2 by the end of September.

For my planned purchases (right now: hot yoga class card, yoga mat on sale, ski helmet) I was originally going to put all the $$$ I could on my Visa and then for planned purchases, just use my Visa. But I'm changing that plan. Now that Visa #2 balance is starting to come down, I don't think I could handle seeing it increase again - too anti-motivational. Since I need to change my financial habits anyway, I'll save up my ok to spend amounts instead for these purchases rather than resorting to plastic.

Today, my bank account balance is $2,666.31 - I'm $30 over my minimum but the $20 I budgeted for March bank fees hasn't come out yet so technically, I'm probably only about $15 over (hopefully bank fees won't be the whole $20). Have a great day everyone!

Taking Visa #2 Downtown!

Now that Visa #1 is paid and out of the way, I need to focus my attention on my next goal. No getting lazy or cocky!  Visa #2 still has a punishing amount on it - over $6,000.00 - and it needs to be paid off. I started thinking about this over the weekend... what's my plan to tackle this innocent looking-yet-interest thirsty bank account vampire?

Examining my monthly budget, it looks like I can handle putting about $800.00 directly on to the card every month. My line of credit also requires a 3% payment every month (about $210) but the majority of that goes to principal. So, since my original plan of attack included me transferring my free (lower interest) loc credit up the debt chain, once I've made that payment, I will do just that. 

Line of Credit

3% Monthly payment on $7,000  -   $210

Approx monthly interest incurred - ($50)

Left over to transfer to Visa #2  -    $160.00

So, $800.00 direct payment, plus $160.00 indirect payment = $960.00/month to Visa #2

Plus, I decided that if I don't spend any money on an "ok to spend" day (my no spend days are Tues & Thurs) then, if I want to, I can transfer the ok to spend amount for that day directly to my Visa. A typical budget allows me about $40/day so if I do this on even one day per month I should be able to put about $1,000.00 on my debt every month. My second Visa should be paid off in about 6 months.

Goal:  Pay Visa #2 in full by the end of September 2009.

Re my first Visa, I had paused on whether or not I should cancel it now that it's paid off. Apparently if you have more credit and don't use it it's better for your credit score. However, my past spending record isn't exactly stellar and obviously I only need one Visa card anyway. So, on S's smart advice, I cancelled it. 

Montreal Weekend Trip

We are heading up to Montreal this weekend! I'm so excited, I love that city. It's the St. Patrick's Day parade weekend and apparently it's an absolute blast. I don't want to set expectations too high (we all know how that usually turns out) but I'm really looking forward to it. The hotel accomodation was a Christmas gift so it should be a realively low cost weekend, I hope.

Here's my trip budget,

Current bank account bal: $392.08

Less:
Sunday Groceries: ($100.00)
Sunday minimum bank account bal: ($198.09)

Total Montreal trip spending: $93.99

It doesn't seem like that much for a weekend away but I figure it will mostly go towards food & of course, a few drinks. Weekend trips are one of S & I's most favorite things to do and I'm so happy that Winter is over (Officially over today!!!) and we'll get to do more of them.

My favorite semi-local weekend trip destination is a little town called Grand Bend which is on Lake Ontario west of Toronto. There is a beautiful national park called The Pinery, which has incredible white sandbanks that trail off into blue water. The town has one main road which goes directly down to the water and Summer weekends there are straight out of footloose. I can't wait!

Beautiful Budget

I'm going to try and do a budget for each pay period so I can track my thriftiness! After looking at my expenses for this period more carefully, I realized that I could afford the $84.85 to totally pay off my 19.5% interest Visa card so I'm going to do it.

Current Bank Account Bal: $923.65

Less:
Visa #1 ($84.85)
Telephone ($65.70)
Student Loan ($120.00)
Bank Fees ($20.00)
Groceries ($100.00)

Subtotal $533.10

There are 18 days in this pay period with 4 no spend days, so that's $38/day on days I can spend without overdrawing my account. That being said, I want to save as much money as possible so I can start shaving down Visa #2.