Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.
Good morning Dinks and Happy May 1st. April showers bring May flowers, or at least that’s what they say. I absolutely love May because it’s a sign of sunnier, brighter, warmer days to come. Oh and then there’s Cinco de Mayo – and you know me, I never need an excuse to eat Mexican food.
Enjoy these good reads from around the web and enjoy the first weekend in May.
Clever Dude – How to Stop Energy Costs from Spiraling Out of the Window
CESI – 9 Dumb Ways to Spend Your Tax Refund – And 1 Smart One
Good morning Dinks. I just got back from another business trip and as always I met some interesting people along the way. I’m not sure what it is about me – maybe it’s because I’m chatty – but I always meet unique people with a one of a kind story when I travel.
One time I was sitting in front of a man and a young girl who didn’t know each other. During the four hour trip he bought her two drinks and asked for her number – just like that out in the open where everyone could hear. By the end of the trip she was sitting alone and he was in another seat at the back of the train. No joke.
I always meet interesting people, including these two men
During this trip I was seated across the aisle from what I assumed was a father and son, or maybe it was two business partners. They were travelling from Montreal to Toronto for the day for some type of important client meeting. Along the way they used words like infrastructure, business plan, corporate strategy and profit margins, so they were partners in some type of start-up business.
About an hour into the ride the older gentleman realized he lost his wallet. He searched the train frantically and asked the stewardess (is that what they’re called on a train?) to call the train station to see if he left it at the departure gate. When she came back and told him the wallet had not been found he went into complete panic mode. His colleague/son tried to reassure him that he must have left it in the car back home, but the older man wanted to hear nothing of it. All he wanted to do was find his wallet.
But then they accused me of theft
As a financial planner I felt obligated to shed some light on the subject. I politely interrupted their conversation and advised him to contact his bank as a starting point. Not only did they not appreciate my act of kindness they actually accused me of stealing the wallet. ME!
As the older man rambled on about the blank check he had in his wallet as well as the credit cards and cash, the son said “The best defense is a good offense. You took the wallet.” Are these two guys serious?! Trust me this really happened, I couldn’t make it up if I wanted to.
So I decided not to help them
I lose things all the time and I would have been happy to help these two distraught gentlemen search for the wallet, but not after being accused of stealing it. If they would have asked for my help I would have told them losing your wallet is a complete nightmare, but it’s not the end of the world.
The first thing to do is stay calm. When your mind is in a frenzy you can’t focus, let alone think straight to retrace your steps. The second thing is to contact everyone you were with that day or places you visited to see if someone found the wallet. If it’s still missing you have to contact your banks and credit card companies to check transactions, cancel the cards and order new ones.
Yes that’s what I would have told them if I wanted to help out.
Good morning Dinks. Have you ever had an expense that ended up costing a lot more than just the price on the ticket? Pun intended. Well I have and although I just spent over $300 for a speeding ticket that should have only cost $140 I am not that mad about it.
Of course I was not happy to see $308 leave my bank account, but at the same time I was relieved to have the situation over and done with, is that crazy?
Here’s what happened:
Last July my friends and I took a road trip to New York City. Half way there we were stopped by a State Trooper because we were speeding. When he asked me if I knew why he pulled me over I said no. He told me I was doing 80 mph in a 60 zone. Being Canadian I honestly thought the speed limit was 80 mph. He told me to slow down, gave me a paper and sent us on our way.
I say he gave me a paper because there was no information on it and no dollar amount. In Canada when you get a ticket the infraction description as well as the amount of the fine are on the ticket. Is that not the case in the U.S.? The only information on the ticket was the option to plead guilty or not guilty, a space (a very small space) to write my explanation and the address where I should mail it.
Since I was on my way to the U.S. and I wanted to get this taken care of ASAP I filled out the form as soon as we arrived at the hotel and then went to the Post Office to send it via registered mail. That was last July. All summer my friends kept asking me if I heard anything from New York State and the answer was always no. Then we moved in October, then Christmas came and then the New Year and I still had no information. I went with the old saying that no news is good news so I thought this was all water under the bridge.
Then January 12th rolls around and I get a letter from my local DMV advising that my license has been suspended in the State of New York and if I cross the border in a vehicle I take the risk of being thrown in jail. WHAT?!
I called the local court house, which took me a day to find online and is only open on Tuesday nights from 6 to 8 pm, and the clerk told me that the total fine is now $308. The original fine was only $140 but with interest over the last seven months and a $70 suspension fee the total cost of the speeding ticket was now $308.
I explained to the clerk that I never received any notice and therefore didn’t have a chance to pay the original fine so I shouldn’t be obligated to pay additional interest charges and a suspension fee. The clerk was extremely impatient and explained I only had two options: 1. pay the fine in full by certified check or 2. come to the courthouse to talk to a DA and plead guilty to a lesser charge.
By this time I was so upset that I replied in a less than friendly manner “Well since I live in Canada and you suspended my license in New York I don’t see how I’d get there.” He hung up on me.
And here we are. On my recent trip to NYC I spent 15 minutes at the bank getting a certified check and 30 minutes waiting in line at the post office but now I’m officially allowed to drive in the State of New York again. So you see $308 is a lot of money to spend at once, especially on an unlawful speeding ticket, but at least this is all now behind me.
Happy Friday Dinks. Do you have big plans for the weekend? Last weekend I took two three hour naps so this weekend I’m hoping to have a little more awake time. I didn’t think I had a stressful week and I didn’t think I was tired, but come Saturday AND Sunday around 4 pm my body had enough. I slept from 4 pm to 7 pm each day. I guess the body wants what the body wants. Hopefully I’ll be a little more productive this weekend.
Enjoy these good reads from around the web. Have a great weekend.
Good morning Dinks. Let me ask you a question, is money ruining your marriage? Or yet here’s a better question, does money make your marriage stronger? I think it could go either way. I keep hearing that most marriages end because of money conflict and I absolutely understand that. Nick and I used to argue about money all the time when we first started dating, but that’s because we had no money and we were only teenagers.
It’s completely normal to have different views on money
That’s the thing about being broke, it’s already stressful and the thought of one wrong move completely wiping you out adds on a whole other level of stress that no one can understand unless you’ve been there.
Today we are starting a series about financial advice tips for a happy marriage. If you have a money tip for couples, a conflict in your relationship that you’d like some help with or a money recommendation for newlyweds send me a message on Twitter because I’d love to hear it.
I could talk about money in my relationship for hundreds of thousands of words, but that would be a book. Instead I’ve decided to work through the issues here on Dinks Finance in a series of posts about how couples can find happy ground when it comes to money and their relationship.
The key is to work through conflicts effectively
When Nick and I don’t see eye to eye on something related to money we talk it out. The absolute worst thing you can do is just say O.K., keep quiet and harbor resentment. This is what I used to do because I didn’t want to be a nagging girlfriend. However I’ve learned to express my concern in a constructive way without yelling or saying things I know I’ll regret later.
That being said when Nick wants to spend money on his own personal items such as a $70 Mercedes Benz baseball cap imported from Germany or yet another pair of wireless speakers I keep my mouth shut. Of course I think the purchases are ridiculous and a complete waste of money, but I never tell him that.
And that right there my friends is how to find money happiness in a marriage. You can talk about spending when it comes to joint expenses and household costs, but when it comes to individual purchases each person has the right to spend their money however they want to.
Managing money is a learning experience
I used to think merging finances meant we each gave our own input on every penny spent, but that’s just not true. It’s very common in relationships that one person will be a spender and the other will be a saver; although it may seem frustrating it can actually be a good balance.
The saver can manage the household finances to make sure expenses and monthly bills are paid on time. The spender can give a little nudge every now and then to ensure the couple is enjoying their money – and their time – together. It’s a perfect match.
Or at least close to it. I keep reading about personal finance bloggers and small business owners who get to travel all the time and I think “Wow they must be making a lot of money”. As you know I love travelling and try to do it as often as my bank account lets me, but some of my colleagues have figured out the secret to travelling on the extreme cheap.
I keep seeing my friends on Facebook jet setting off to really cool places like Las Vegas and Hawaii. I can’t help but wonder “How can they afford it?” Well I think I’ve figured out their secret – they’re travel hackers! It’s kind of brilliant really. My friends search the web to find the lowest deals, apply for credit cards with travel perks and maximize their rewards programs whenever possible. I’m jealous, but I’m also learning.
Search online for deals and name your own price
This is my own personal travel secret. I am a huge fan of Priceline.com. Actually that’s an understatement, I don’t think I’ve booked a trip in the last four years without it.
I pride myself on paying only $87 a night for a four star hotel in NYC. I think that’s a great deal. I mostly take advantage of the Express Deals on Priceline but if you’re not finding what you want you can also Name Your Own Price for hotel rooms and flights.
Apply for multiple credit cards
While in New Orleans for FinCon last year I had lunch with a bunch of really cool people. We spent the day at a swamp tour and then hit up the French Quarter for an authentic cajun meal. While we were waiting for our food to come out we started chatting about how much it cost everyone to get to New Orleans and surprisingly several people travelled to The Big Easy for very little money.
At the end of the meal almost everyone at the table pulled out some form of American Express credit card. Apparently their reward programs are amazing for travellers and some also offer cash back. One friend said he applied for the card specifically to get the 20,000 introductory points offer which covered his round trip flight and most of his hotel room stay for the week. Score!
Maximize your rewards programs
I am not a huge fan of applying for credit cards just to do it, but that’s because I have had issues with debt in the past. I’m O.K. having one every day credit card and one Amex for travel purposes, but that’s it. With that being said, both of my credit cards are attached to rewards programs.
One thing I didn’t know is that rewards programs are interchangeable. If your credit card offers cash back you don’t necessarily have to take a statement credit; you can call your credit card provider to see if you can get cash back on a travel booking.
Another great travel hack is to combine your rewards programs. Airlines usually allow this because so many different airlines are alliance partners. If you’re just shy of rewards with one airline check out who their partners are and combine your rewards to get a free flight. Even if you’re not sure, it never hurts to ask!
Good morning Dinks. If you’ve worked your entire life and are now ready to enjoy the fruits of your labor let me ask you something, are you ready? Sometimes couples like to do everything together from planning their vacations to driving to work and doing their weekly errands, does this include retirement?
The answer depends on a variety of factors such as your age, the amount of your retirement savings, what your plans are for retirement and how well you’ve planned for retirement. If you’re creeping up on the golden age of retirement here are some question to ask yourself – and your spouse – to determine when and how you’re going to be able to retire. So how can you get on the right track?
Help from a professional is on the way
Later this month and in May, 9-Time New York Times Bestselling Author and Vice Chairman of Edelman Financial Services David Bach will be visiting LA, Chicago, Detroit and Boston. He will be giving a a class called Smart Couples Finish Rich: The Retirement Seminar. It’s just $15 per person or $25 per couple but if you use this special promo code: DINKSBlog you and your partner can attend for free!
Bach will help couples plan for a happy and secure retirement. He’ll share the lessons and secrets of happy couples who’ve successfully planned their retirements together.
Topics include:
How to plan for retirement together to avoid running out of money
The 5 key financial decisions every couple needs to make
The new retirement strategies for asset allocation and IRA withdrawals
What to do with old retirement accounts at previous employers
How you can both maximize your Social Security benefits
And much more…If you want to get helpful information about how to start planning a happy retirement register here. So what are the three questions you and your partner should be able to answer about your retirement dreams?
What are you going to do in retirement?
This is the ultimate question because the answer will determine how much money you’ll need in retirement and therefore when you’ll be able to retire. If you want to sell your home you can use the profits to fund your retirement or to buy a smaller property if you want to downsize. If you plan to relocate to warmer climates the cost of living in a new city also has to be taken into consideration.
Before you can plan when you’re going to retire ask yourself what you want to do in retirement and everything else can fall into place from there.
Are you planning to retire at the same time as your spouse?
My Dad lives with an older woman and she retired three years before him. I think this made may Dad’s last working years very hard. Not necessarily because he wanted to retire and be with her all the time, but because he saw that she was living carefree and he wanted to do it too. My Dad retired in 2009 and never looked back.
My mother on the other hand had a short stint with retirement. She lasted two months and then went back to work. Maybe she wasn’t ready to leave the working world or maybe she was bored at home alone as her spouse was still working full time. These are all things to consider if you plan to retire at a different time than your spouse.
How will you take your retirement income?
When you’re in a couple both incomes have to be taken into consideration when you’re planning to retire. Maybe your spouse has more savings than you do, but maybe they aren’t ready to retire. If your personal savings will be your only income source during retirement ask yourself, will it be enough?
Of course there is social security income but will it be enough to sustain the lifestyle you want to have during retirement? Before putting in your notice at work your income sources are definitely something you need to think about.
Answering these 3 questions can be difficult, but with a little help from David Bach and some financial planning, you and your partner will have a road map towards achieving your retirement dreams.
David Bach is Vice Chairman of Edelman Financial Services LLC, a Registered Investment Advisor. He is an Investment Advisor Representative who offers advisory services through EFS and a Registered Representative of (and offers securities through) Sanders Morris Harris Inc., an affiliated broker/dealer, member FINRA/SIPC.
Advisory Services offered through Edelman Financial Services LLC. Securities offered through Sanders Morris Harris Inc., an affiliated broker/dealer, member FINRA/SIPC.
Good morning Dinks. Let me ask you a question, do you buy name brands? I know a lot of people will say one of the easiest ways to save money at the grocery store is to buy the store or no name brand, but I’ve come to learn that’s not always the best option.
Sometimes buying a no name brand can actually end up costing more. Even though the price per unit of a no name product may be cheaper it doesn’t always hold up to the same quality standards, actually most of the time it doesn’t. Then it ends up costing more in the long run because we have to go back and buy the name brand; which basically means we just wasted the entire price of the no name product.
Name brands are household staples for a reason, they’ve been tried, tested and true for many years. If you shop at places like Wal-Mart or Target name brands can end up being pretty economical. During our years of financial difficulty we lived on store brands and let me tell you the quality is just not comparable.
Kleenex
I love Kleenex tissues. I get sick quite a few times during the year and I have allergies so tissues are my best friend. I definitely notice a difference in the quality, durability and softness of Kleenex versus other brands and therefore I’m willing to pay a bit more.
Mind you I don’t get in to the fancy seasonal boxes because that is definitely a waste of money, but when Kleenex is on sale I absolutely stock up. Kleenex also makes tissues with features like aloe vera and lotion, which makes a big different to my nose when I’m sick.
Diet Coke
Yes one could say I shouldn’t be drinking soda anyways but let me tell you there’s nothing better on a hot day than an ice-cold Diet Coke. I am one of those crazy people who can tell the difference between Coke and Pepsi and as a long time Diet Coke drinker I can say there is no substitute.
Q-Tips
This is absolutely the one item I never substitute. I think Q-Tips are expensive and I’ve tried other cotton swabs in the past but they just don’t do the trick. I’m not sure if Q-Tip has a patent on their stick but no name brands just seem to be flimsy and not as well made.
Marriott Hotels
I love Marriott brand hotels. Whenever possible I will stay in any variation of the Marriott chain from Courtyard to Double Tree, not only because I collect frequent traveller points but because I just love the Marriott experience. The staff are always helpful, the rooms are always spectacular and who doesn’t love a hot chocolate chip cookie when you check in?!
Kellogg’s
I am a cereal girl and I always have been. It’s great for breakfast, it’s a filling snack and it’s a quick dinner if you don’t feel like cooking. I very rarely buy any other name brand other than Kellogg’s. I may be biased because my Dad worked there and I grew up on eating Kellogg’s products, but even now as an adult you can catch me with a box of Frosted Flakes, Raisin Bran or Mini Wheats.
Ziploc
OK I know this is going to sound crazy, but Ziploc sandwich bags are the best. We have them in a variety of sizes and with different features such as the zipper lock and the double lock. Last time we bought the Glad version of a plastic sandwich bag and it’s just not the same. Sorry Glad but we’re just going to stick with you for garbage bags.
Happy Friday Dinks. Today is especially happy for me because today is bonus day. Yes at my job (well now old job) we don’t get our yearly performance bonuses in December, we get them mid April. So here we are. I won’t see any of the money because I elected to transfer the entire amount to my retirement account because I will be dammed if I pay 52% tax on money I worked for all year long. But nevertheless it will be nice to see my net worth get a boost.
Have a great weekend and enjoy these good reads from around the web.
Good morning Dinks. As you know I’ve had my share of financial troubles in the past. I have been dirt broke and over $50k in debt. Now I’m happy to say that for the first time in my life (in my 30s) I have a positive net worth.
I know this isn’t really a big accomplishment because I should have had it a long time ago, but I am very proud of it because having a positive net worth means I’ve finally arrived – financially. I keep seeing financial bloggers write about their million dollars of assets and millionaire net worth’s ad I’ve just never had that. But now I do and this is how I did it.
Pay Off Debt
Your net worth is the total value of your assets minus your debts. You can grow your net worth in two ways, by paying off your debts or growing your savings. If you have $15k in savings but $20k in debt you actually have a negative net worth – I lived in this zone for many years. If you have no debt and no savings then you don’t have a net worth at all – that’s where I was.
Now I’ve taken the necessary steps to pay off my debt and in turn my net worth has grown by $30,000 within one year. How amazing is that?!
Invest For The Long Term
I know $30k may seem like a lot to some and it may seem like peanuts for others, but it’s a big accomplishment for a girl who has lived most of her adult life in the red. Investing for the long term is one of the best ways to help grow your net worth. Of course it isn’t enough on its own, but it can help grow your money a lot quicker than holding it in cash.
I put both my annual performance bonus as well as my tax refund into my retirement account and now I can just sit back and watch it grow.
Save Money. Really Save It.
Not spending money isn’t the same as saving money. Saving money means you don’t spend it and keep it forever and ever. So often people think saving money is just not spending money on one thing and then end up spending it on something else. But that doesn’t help grow your net worth. As long as your accounts stay in a positive balance that exceeds your total debts you will always have a positive net worth.
Diversify Your Assets
Saving your own money will help grow your net worth but taking advantage of other plans like employer benefits and government programs will also help your savings grow. Diversifying your money to make sure you don’t put all your eggs in one basket is another effective way to watch your bottom line increase.
Buying mutual funds and ETFs across different sectors such as fixed income, equities, domestic as well as foreign investments ensures you have a little bit of everything. The same can be said for real estate. I have clients who choose to diversify their real estate holdings between residential and commercial, but also geographically.
What’s the best way to increase your net worth?
More personal finance articles from Dinks Finance:
About Kristina Tahnyak
