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. Happy Friday! I hope you all had a lovely New Year. This week was back to the grind for me after a glorious 12 days off. I spent the holidays empting our last few boxes, watching Netflix and eating way too much chocolate. It was good times. Trust me on Monday morning it was hard to wake up to my alarm clock for the first time in two weeks and leave my apartment in -21 degrees Celsius which is -6 degrees Fahrenheit. Yes that’s cold!
If you had some time off during the holidays I hope you had a good first week back to work.
Enjoy these posts.
Money Talks News – 2 Services That Protect Grandma from Money Stealing Scams
The Debt Myth – How to Build a Starter Emergency Fund in 30 Days or Less
Clever Dude – Happy Return or Exchange Your Gift Season!
Enemy of Debt – Should I buy or continue to rent a house?
Yes it’s true. I just got a notice of assessment from the federal government, almost a year after I filed my 2013 taxes, and they’ve decided I owe them money. There is nothing more I hate than owing people money or people owing me money. When I go to sleep every night I like my balance sheet to be at $0 but right now it’s not – and that’s driving me crazy.
What happened
I came home from work yesterday and I had a letter from the Revenue Agency. I thought maybe it was just another statement of account, but to my surprise it was a letter stating I forgot to claim some income on my 2013 taxes and forgot to declare some of my student loan repayments; therefore I now owe them $437. WHAT!? How does $200 in forgotten freelance income and less than $80 in student loan interest equal over $400 in tax fees? I have no idea.
This isn’t the first time I’ve been audited. Back in 2011 I was audited for the previous five years and for all that time I ended up only owing the federal government $318. I wasn’t upset about that at all because I have a great accountant and in the grand scheme of things it’s a small amount of money for five years. But over $400 for one year is unacceptable in my opinion – but the government disagrees.
Where I went wrong
My current accounting system consists of an Excel spreadsheet and two envelopes full of all my receipts. I divide them into two categories: food and other business expenses. I would like to say I add up my expenses each month, staple all receipts together and mark them into my Excel spreadsheet but that wouldn’t be true – although it was my intention last January. I think it lasted about three months and when spring came around I just started shoving my receipts in the envelops.
In February I’ll spend a day or two sorting through my receipts and adding up all my income and expenses for the year so I can bring my papers to the accountant’s office in March. Not the most efficient record keeping option, I know.
I would love to double check the federal government’s records because I’m one of those people who honestly believe I’m being screwed over all the time – especially when it comes to money. I don’t trust anyone, but my accountant is probably going to charge me $200 to verify the government’s notice of assessment. I don’t want to pay that amount on top of what I supposedly owe the government.
What I’m going to do differently in 2015
This year I am going to keep better track of my income and expenses. I promise. Why? Because I have to. Spending two days collecting receipts and trying to remember everything I did over the last year is not my idea of fun. If I spent 30 minutes each month adding up all my income and expenses it would save me a lot of trouble during tax time. So that’s what I’m going to do.
You’re probably thinking, why don’t you just get a book keeping service? Because I’m not sure how they work, but I’m open to suggestions. Does a bookkeeping service keep track of my income and expenses in both Canada and the United States? Does it track payments received and sent via PayPal and my bank accounts? All suggestions are welcome.
Good morning Dinks. Do you have the holiday blues? It’s the time of the year when you realize the excitement of the holidays is over and it’s back to your normal routine. For me this kicks in every year around mid January. It’s starts to get colder outside and we start getting snow storms, all that to add on to the fact that time off from work is over, credit card bills are coming in and our normal lives once again begin.
New Year New Beginnings
There’s two ways we can look at this: a new beginning or the beginning to an end. I choose the first. A New Year means new things for me. New freelance clients, a new group fitness class schedule at my gym and new personal goals. I set some pretty aggressive savings goals for myself this year and I pray to God my freelance income sustains them throughout the year. Fingers crossed!
As you know I recently (back in November) joined a gym and despite two minor injuries I’m loving it. I originally only set one personal goal for myself this year and that was to lose 30 pounds by August 1st . However since then I’ve added in the savings goal and a business goal about mastering SEO over the next 12 months.
Does the New Year make you sad?
Some people aren’t as enthusiastic about the New Year as I am. Why? My guess is because they have really great holidays with family and friends so when that time of the year is over they get sad. I’m not close with my family, I actually didn’t even get Christmas cards from them so to me the holidays mean time off work to relax and eat lots of sweets with Nick.
My best friend absolutely dreads January because all the celebrations are over – and she loves having a good time with her family. We obviously don’t have the same home life because I look forward to the New Year and she gets depressed. I love planning my goals, my travels and seeing where the next 365 days will take me.
Did you over indulge in the holidays?
Some people don’t like the New Year because the realities of their indulgence sets in. Did you go over board during the holidays with gifts, food and travel? Basically I’m asking if your bank account went from black to red over the last few weeks?
I admit spending lots of money during the holidays is a lot of fun, embracing the holiday spirit with shopping bags, bows and stocking stuffers is exciting – but not in January when you receive your credit card bills. Financial depression is a big reason why people get the winter blues. I used to be one of them, but this year we did Christmas on $200 so all in all it wasn’t so bad.
Then there’s the food. Have you stepped on the scale yet? Lots of people indulge in sweet treats during the holidays and they don’t realize how much it cost them (in pounds) until the holidays are over and they take a break from snacking. Food is another reason why people get sad in January because now they know how hard they have to work to shed those extra holiday pounds.
Good morning Dinks. Remember back in September when I mentioned my company was sold to a competitor and the transaction should be finalized in Q1 2015? Remember how last month I told you my office is becoming a war ground with backstabbing and negative attitudes? Well the countdown clock has started and by the end of January I should know my professional fate.
With less than 30 days until our company takeover let me tell you the anticipation is killing me. On one side I’ve already waited three months so what’s 30 more days, but on the other side I just want to know what’s going to happen. I’m excited/nervous/excited/curious about the next phase in my career. I want to know what’s going to happen to my job, where I’m going to work and if I’ll be relocated. As of now no one, not even our VP, can answer those questions – but all that comes to an end very soon.
What I hope happens
I think you already know, but I’m going to say it again…I really want to work for my potential new employer. It’s a great company, they are international and hopefully there will be lots and lots of new opportunities. However I’m not naive; I know that EVERYONE in my current company won’t be moving over to our new home. It seems like almost every week I’m invited to attend a going away party for someone who decided to jump ship before they get their pink slip. A part of me says that I should too, but I really want to work for our new employer.
I’m not going to lie, it’s been really difficult to go to work every day since the news was announced in September. My tolerance for personality conflicts has dropped considerably and my efforts to “make it work” with other employees has also declined. I keep telling myself don’t let it bother you because it’s just a temporary situation – and I really hope that’s true.
What I don’t want to happen
I absolutely don’t want the new company to come in and keep everything as is. I’m looking for a fresh start in a new team with a new team leader. I currently work in social media but maybe I’ll want to explore the option of a web writing position with the new employer. Maybe I’ll work for a different division/branch of the parent company or maybe I’ll be relocated. Maybe. Maybe. Maybe. I just don’t want everything to stay the same with a new name on the building.
My Plan B
Let’s think of the worst case scenario, which isn’t really the worst case. Let’s say I do lose my job. I’ll have a very nice severance package to send me on my way, my retirement savings will free up to be used if needed and I’ll still be entitled to my year-end bonus. So yes I will be without a job, but I won’t be without money. It will hopefully give me time to find a new position, increase my savings and at the same time have a little fun.
If I do receive a severance package I am going to live out my dream of living in NYC. I’ll rent an apartment for 30 days and investigate what it takes to become an American citizen with full working privileges. Yep that’s what I’ll do. Not too shabby for a Plan B!
Good morning Dinks and Happy New Year! I hope your holidays were great and I’m wishing you a 2015 full of love, happiness, health and of course lots and lots of money.
Good morning Dinks. Well it’s official – the holidays are over. Over the next few weeks people all across the country will be getting their credit card bills and bank statements in the mail. All across the country people will be accessing the damage the holidays left on their personal finances.
Where do you do your holiday shopping?
As you may remember I’m Canadian – but I travel to the U.S. often throughout the year because U.S. cities are so gorgeous and shopping in the United States is far superior to shopping in Canada. Why? (and I think all Canadians will agree) Because there are products available in the United States that don’t cross over to Canada and the prices of goods in the U.S. are a lot cheaper than up here north of the border. It’s true and if you’ve ever met me while I’m in the U.S. you know I’m a huge fan of shopping south of the border – especially at Target and in American pharmacies.
I did a good portion of my online shopping online. Thanks to Amazon I found some unique gifts a.k.a. the Philadelphia Eagles Christmas ornament for Nick and thanks to Barnes and Noble I purchased two great books for my Dad. Thanks to the internet I had them shipped right to his door (we live in different cities). Did you know that books are released in the United States anywhere from three to twelve months before they come over to Canada? It’s true. I love seeing the look on my Dad’s face when he gets a book that’s not even out yet, as far as Canadians are concerned. Merry Christmas to him!
According to a recent study from our friends at LowestRates.ca 78% of Canadians made online purchases with their credit cards during the holidays. Does that sound like you? Our friends south of the border at Credit Karma say that over 35% of Americans ages 18 to 34 do the majority of their holiday shopping during Black Friday and Cyber Monday – you gotta love those good deals.
Is your holiday spending over the top?
So Dinks, what’s the damage? How’s your bank account starting off in the new year – in the black or in the red? Between our holiday decorations, food and gifts for Nick and my Dad I spent a total of $200 this Christmas. Neither one of us has family nearby (not that we want to visit anyways) so our travel expenses during the holidays are zero. Some people think not having a family around at Christmas is sad, but honestly it’s OK and it’s great for my bank account.
Credit Karma says that over 40% of people aged 25 and over spent over $500 on the holidays and over 45% of people aged 25 to 44 think they overspent. I wish I could have spent more on the holidays – more on gifts for Nick, but that would have been over the top and with our recent move our budget just didn’t have any room for indulgence this Christmas.
So what if you’re Canadian? Well according to our friends at LowestRates.ca Canadians spent an average of $674 on gifts during the holidays.
Ok Dinks, tally up your bills. How much did you spend on the holidays this year?
Good morning Dinks. Do you remember the first time you ever used your credit card? I don’t remember how I got my first credit card, however I think it was a student card. Although I’m only saying that based on the fact that I was 18 years old and still in high school. But as I’m writing this something in the back of my mind is saying “no it wasn’t a student credit card because I was working two jobs” – but that’s not important.
When did you first use your credit card?
I don’t remember how I got my first credit card but I do remember how old I was, what color the card was and the first thing I ever bought. I was a senior in high school, it was blue and I bought a candle holder from the home decor store where I worked.
Little fact about me: I had two jobs in high school, I worked at a lingerie store (where I stayed for over 10 years) and I also worked at a home decor store – wall art, candles, gifts and other things like that. I was still a teenager living with my parents but I had enough pretty things in my one room to fill an apartment. Yes that’s how I first used my credit card and it was just downhill from there.
How does credit make you feel?
I loved how using a credit card made me feel. Whipping it out and swiping it everywhere from the mall to restaurants made me feel like an adult. I’m not sure why – I guess I just didn’t know any better. Now I just like to swipe my card knowing that I can if I need to, but back then I just wanted to swipe it all the time. So that’s what I did. I carried that credit card in my wallet and used it whenever and where ever I could.
Using credit was addicting. I applied for more credit cards and accepted every offer that came in the mail. Thanks to my two jobs I found myself with a gold card at 20 years old. After that the offers kept on coming – and I couldn’t say no. That awful habit landed me over $50,000 in debt with three credit cards and a line of credit. Can you say bad habit?!
What does debt mean to you?
Debt. It’s different for everyone. It means different things. For me debt meant almost being bankrupt, losing my job and ruining my life. Yes that’s how bad my life got in my late twenties and it all started with that first swipe of a credit card. You can think it’s so harmless, just a tiny little action of carrying a credit card in your wallet and then before you know it BAM you’re tens of thousands dollars in debt. Welcome to my life. Credit for me was like eating Lays potato chips – you can’t eat just one!
Good morning Dinks. Let me ask you a question, did you meet me this past September at FinCon? Actually here’s a better question…do you remember me? Whenever I meet someone I always introduce myself as Kristina, or Tahnya Kristina (that’s my real name) but people know me by both depending on where they know me from. That’s always been my problem when I’m trying to meet new people because a girl with a name you don’t know is easily to forgotten.
How do you introduce yourself at conferences?
I started blogging in 2009 and over the years my business has grown to include other services such as blog management, community outreach and influencer marketing. But unless I explain that to someone they have no idea who I am or what I do. Why? Because I don’t have my own blog to showcase my work. If you went to FinCon think of everyone you met – or better yet think of how you introduced yourself. Was it “Hi I’m Carrie from Careful Cents“ or “Hi I’m J.Money from Budgets Are Sexy“ the odds are it was.
In this day and especially in the world of online businesses people always associate themselves with their blog names. Instead of saying “Hi I’m Kristina personal finance writer and certified financial planner” people say “Hi I’m Cat from Budget Blonde.” People very rarely ask for references when apply for jobs and they don’t ask for credentials because your blog is your credential. When applying for any type of online job all you need is your blog to back you up, but what if you don’t have a blog? How do you get work?
What sets you apart from everyone else?
That’s the question I’m throwing out there into cyberspace for you. I have a website that I use to showcase my work and highlight all my online glory, but unless I give someone the address there is no reason for them to go there and visit the site on a daily basis. It’s not a blog and honestly I just showcase the work I’ve done for other companies, blogs and websites. That’s my dilemma, when I meet people at conferences – a.k.a. potential employers – how do I introduce myself?
When I say “Hi I’m Tahnya Kristina” no one ever says “Oh I’ve heard of you, you’re a great writer” But if I say “Hi I’m Kristina from Dinks Finance” people usually say “Oh yes I love your work” I have to admit it’s a nice complement but if you work for more than one employer which website do you associate yourself with? That’s why it’s a lot easier to have your own blog – but who has the time?
How to make sure everyone knows, and remembers, you
Could you imagine if I walked up to someone and said “I don’t think we’ve met, I’m Kristina from Dinks Finance” and the person said “OH Kristina nice to meet you. I’m So and So from X Website, you write for us.” #awkward
Going forward I really want to solidify my name in the online world of personal finance. I want to be well know like the Jeff Rose’s of the world. Now how do I do that – without creating my own blog?
(Those lovely plants are the holiday center piece on our dining room table)
Hi Dinks and Happy Friday and Merry (belated Christmas). I hope you had a wondering day with lots of love and happiness. So what are your plans today? For those with big families you may still be making your rounds. As Nick and I don’t have any family close by we’re spending the day staying warm, watching Netflix. I may scan a few websites but I’m definitely not headed out to the malls for Boxing Day deals. Are you shopping today?
Have a great day and enjoy these posts from our friends:
Get Rich Slowly – Are you holding yourself back with these money lies?
Enemy of Debt – Bad Debt Collectors and What You Can Do About Them
Good morning Dinks. Let’s get real for a minute. I’m going to ask a question and I’d like you to answer honestly – how do you feel about your credit cards this time of the year?
Be honest.
As you know I’ve always had a love/hate relationship with credit. I love using my credit cards when I’m shopping and buying nice things, but I hate them when I get the bill at the end of the month and realize I’m in debt again.
During the holidays I absolutely hate my credit card, it’s like this thing looming over me, taunting me saying “I’m in your wallet, use me – even though you can’t afford to make the payments.” This year I kept the credit card at home and bought all my Christmas gifts with cash. Nick and my Dad are getting some great gifts, not the perfect gifts, but definitely some really things they both need and will love.
Did you use your credit cards this year?
I did part of my Christmas shopping online at Amazon and Barnes & Noble and the other part in person at a few select stores. As I walked through the shopping malls I was very tempted to whip out my credit card and buy expensive gifts for everyone on my list, but that was the old me – and the old me’s dead and gone. I’ve learned through my debt mess that the holidays don’t have to be all blinged out with several gifts under the tree and a whole lot of credit card debt to go with it. All we need is good food, a warm house, cheerful music, lots of chocolate and a debt free Christmas. Is that too much to ask?
I didn’t think so, so that’s what I did. I worked too hard to get a good credit score to ruin it and fall back into old habits of using my credit card and not paying them off. Nope, not this year!
If you’re going to swipe you might as well get rewards
I’m not a big fan of applying for a credit card just for the rewards, but I am a huge fan of getting the most out of your money. So if you’re going to use your credit card during the holidays you might as well use it wisely.
Our friends at RateSupermarket.ca say that fees and rewards are two things consumers should consider when selecting their credit card. Rewards such as cash back, travel perks, low interest rates and balance transfer options are all rewards that consumers can use to their advantage when using their credit cards during the holidays.
I like getting rewards but I hate being restricted. I don’t believe in credit card companies telling me when and how I can use rewards. I also don’t believe in paying fees for rewards – because if you’re paying an annual credit card fee to earn cash back it’s not really a reward, is it? I don’t think so!
About Kristina Tahnyak
, it’s like this thing looming over me, taunting me saying “I’m in your wallet, use me – even though you can’t afford to make the payments.” This year I kept the credit card at home and bought all my Christmas gifts with cash. Nick and my Dad are getting some great gifts, not the perfect gifts, but definitely some really things they both need and will love.