Family

You Have To Say No To Your Kids Sometimes

Although I am not yet a parent, I have played a role in teaching my friend’s child that he can’t have everything he wants.  Although parents want to give good things to their children, there are times when they have to say no.   It is not only beneficial in terms of staying within a budget, but it is also healthy for children to learn that they are not entitled to everything that they want.  After all, the world does not revolve around them.

Several years ago my friend and I went shopping at Safeway and she brought her then 2 year old son.   To my surprise, as we went to the check out to pay for our purchases, her little son began screaming at the top of his lungs “my doo doo, my doo doo!”  I had no idea what he wanted at first, but my friend soon filled me in.  Apparently every time she went shopping at Safeway, her son demanded her to buy him a small toy car that was visible from the check out counter and she gave in every time in order to avoid a tantrum.

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September 8, 2010
General

When Should You Stop Fixing Your Old Beater Car?

It is hard to know when to stop putting money into repairing an old beater car.  Beaters can seem like bottomless pits, always draining your cash flow as year after year another component of the car gets worn out.  There comes a time when it is best to just stop putting more money into it, but just when exactly is that?

The answer really depends on your goals for the present and the future.   My husband and I recently faced just such a dilemma.  Here’s our situation: We have a newer car that we rely on for our road trips as well as to commute to work, go camping, etc.  We also have a much older and less reliable car that we use to get from point A to point B, which from now on will be referred to as our beater car.  Since we both work at different locations, we each require our own car.

Unfortunately our beater car recently had some major issues that required us to cough up just under $1000 for repairs.  At first we thought we wouldn’t bother doing the repairs and we would just donate it to a local mission organization to sell for parts.  However, we ended up changing our minds and fixing it after all because for us, the alternative would be to simply buy yet another beater car.

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September 6, 2010
Gifts

Tips For Making Donations

We all want to help those in need.   With the tragic news of the massive flooding in Pakistan, it is only natural for people to want to pitch in and help out.  Just make sure to follow these basic tips before making a donation.

Make sure that the organization you donate to is a legitimate one.  It is safer to select an organization that you have heard of and you know is reputable such as the United Way, UNICEF, World Vision, etc.  These established organizations have the experience in providing cost effective aid.  As well, you will feel safe in knowing that their websites are secure should you choose to donate online.

Avoid donating to smaller organizations, especially if you have never heard of them. Unfortunately there have been cases of criminals pretending to be collecting money to provide aid and it turns out they are only concerned with lining their own pockets.

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September 4, 2010
Money Saving Tips

Your RRSP Is Not Your Emergency Fund

As I have written before, it is important for all of us to have some funds set aside in case of emergency.  If your vehicle breaks down or you find yourself out of work for a while, you do not want to have to use your retirement savings.  There are key reasons why you should not even consider your RRSP as your emergency funds.

First, you get penalized for withdrawing.  You pay withholding tax to the government when you first make your withdrawal.

Second, you have to pay more tax at the end of the year on the amount you withdraw, depending upon your income tax bracket.

Third, there are other negative impacts as well, including the fact that you lose that RRSP contribution room permanently.  So as you can see withdrawing from your RRSP is expensive.

To prevent ever having to make an RRSP withdrawal before retirement, consider putting some money aside every payday and using either a Tax Free Savings Account or even just a regular savings account that still pays you some interest.  This way you have the flexibility to make RRSP contributions with excess savings before the deadline without putting you in the position of touching your RRSP prematurely.  (Build your emergency funds until you have three to six months of living expenses and then any money above that can be used for your RRSP in the event that nothing comes up throughout the year.)

Before putting money into your RRSP, make a mental note that this money no longer exists to you until you retire.  It is not back up savings.  Don’t even include your RRSP balance when you calculate how much money you have.  It’s best if you forget about it, because there is no point in contributing to your RRSP if you intend to use it as emergency funds.  It just doesn’t make financial sense.

September 2, 2010
General

Could You Live Without Money?

Do you ever get tired of worrying about money and wish that you could just live without it?  Well, a man by the name of Mark Boyle has done just that.  Since 2008 he has managed to live what he calls a moneyless lifestyle.  He grows his own food, lives in a small trailer, and bathes in a nearby stream.  He claims he has never been happier and more content in his life.  He also says he is much healthier and more fit now.

Wow!  Who would have thought that anyone could survive these days without even attempting to earn money?  Although Mark’s lifestyle is definitely not for everyone, I can definitely see the appeal of living like him, at least for a short period of time.  But for many people this lifestyle is not feasible due to their existing responsibilities and ambitions.  That being said, it doesn’t mean we can’t still be carefree to a certain extent.

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August 31, 2010