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Author Archives: Kristina Tahnyak

Avatar photo About Kristina Tahnyak

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.

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Buying Your First Home– What to Keep in Mind

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tips on buying a home, first home purchase, buying your first home, real estate purchasing, first time home buyer

HOME

The following is a guest contribution from Martin of Studenomics, where he covers everything from saving money on a Friday night to buying your first home.

“It’s time to move out and buy a place.” I’ve had many conversations begin like this in the last few months.

Something that I’ve been covering in great detail lately in my writing is the idea of buying real estate. Many of my friends are getting married, moving out, and looking to make this huge next step.

I don’t give unsolicited advice. That’s not my style. This is why I write. I share my ideas with the world. The ideas are out there to be consumed. If you choose to read them and apply them, then thank you.

These are my tips for anyone reading this right now interested in the idea of buying a home…

Don’t spend all of your money on the down payment.

The down payment is just the beginning. The fees won’t stop at this point. This just secures the place for you. The rest of the expenses that you should expect include:

  • Moving costs. You can’t expect everyone to work for beer and food.
  • Closing fees/legal expenses. These are going to make you cry.
  • Property taxes. Not fun!
  • New furniture and increase spending. You’re going to want to decorate every single room. Then you’re going to throw parties. The expenses won’t go away.

If you want to buy a home, please save up enough money to have a nice cushion in your savings account. You’re going to be hit with expenses that you wouldn’t see coming.

Wait.

What’s the rush?

Everyone tells you to wait. You still don’t. You “fall in love” with the perfect home and need to have.

Please, just wait. Let things play out. Research the area, look into other homes, save more money, stabilize your income, and then save some more.

You shouldn’t rush this purchase. I’ll never understand why friends will wait before buying new shoes ($100) or a laptop ($1000), but they jump right into real estate. This is the most important purchase that you’re ever going to make. Treat it as such.

If anyone is rushing you, then you need to read up on why you should tell your parents to shutup. Nobody knows what’s best for your unique situation. Only you do.

“Life was always a matter of waiting for the right moment to act.” — Paulo Coelho

Don’t treat it as solely an investment.

“Real estate is the best investment. I need to buy a home.”

I’m sure you’ve heard that line at some point. I’m not even going to try to argue it or get into a debate on the merits. I just want you to remember that your primary residence won’t always be the best investment.

Your home is a place for you to live. You might want to spend the next 20 years at this home. You might want to raise a family. You might want to live in an amazing community.

Never buy a primary residence for solely the investment aspect of it. Sure, you can buy an investment property that you rent out. But your home is your main shelter. Remember that.

And finally…

Don’t trust your real estate agent.

Your real estate agent is looking to get paid. I don’t care if it’s your wife’s brother or your best friend from the gym. They want to make money. They’re in the business of making money.

I’m not saying that everyone in real estate is a charlatan. I just want you to have your eyes open and to always perform your own research. You can’t ever take everything at face value.

This is why you always need to conduct your own research and perform your due diligence. This is your money.

Those are my four tips to all of my friends that are thinking of buying their first home. Please don’t rush. Save lots of money. Keep your mind open.

What tips do you have for folks looking to buy their first home? Any mistakes that you want to share?

Photo from Flickr

Money after a divorce

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money after divorce, divorce procedure, divorcing

money after divorce

Good morning Dinks.  Today I want to talk about how our money habits have changed over the years.  People change for a variety of reasons such as adopting a new lifestyle, relocating to a new area and a milestone or life event.  When it comes to our money the same thing is true.  Sometimes our money management style changes because we grow up or experience a life changing event such as a divorce. If you are divorced or watched your parents go through a divorce have your money habits changed?

Maybe your money style is more aggressive post divorce

My parents have definitely changed how they each manage their money since the divorce.  My mother now spends less money on clothes and now she also controls the family finances, I don’t remember that growing up.  My mother keeps a tight leash on how she manages the family money with her new husband.  I am not sure if they have joint accounts, but I do know they both bank at the same financial institution.

As a child I remember my mother spending money all the time.  On clothes, shoes and toys for us.  Now that she looks back at it I’m sure she agrees that spending money on material things probably wasn’t the best idea when you have a family of four to feed.  Both my parents came from big families with no money so they were happy to spend money when they both landed well paying full time jobs and had two full time incomes.  I don’t know because my family never talks about the divorce, but I am sure my parents financial problems were a big contributing factor to their divorce.

Or maybe your money style became very passive

My dad’s money management style is completely opposite from my mother’s – surprise, surprise after all they are divorced.  He takes a more laid back approach to his finances.  I think my dad is over the days of arguing with his spouse about money so he basically lets his new wife buy whatever she wants and he writes her a check for half the amount.  My dad and his new wife don’t have a joint account, but if she wanted to I’m sure he wouldn’t object.

I don’t agree with this money management style because I think there has to be an agreement on how a couple manages their money.  My dad doesn’t own anything in his relationship yet he pays for half of everything.  Their car, apartment, home phone and house insurance are all in his new wife’s name.  He has no legal right to anything and that’s just not right, but he’s not man enough to do anything about it because he doesn’t want to fight about money.

We need to find a money balance in a couple

My couple’s money management style with my boyfriend Nick is somewhere in between my parents.  We keep our money separately but we manage it together.  I don’t tell him what to do with his money and he doesn’t tell me what to do with mine.  However we do discuss all purchases that relate to our home and all purchases that affect each other.  I would never buy something for our home without his input and expect him to pay half; I hope he would do the same.  I think that’s just disrespectful and that’s not how we run our relationship.

Photo from Flickr

What’s your couples investment style?

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couples, investment style, investment, planning about money

Investment Style

Good morning Dinks.  Let me ask you a question, do you and your spouse invest your money the same way?  There are so many ways for couples to invest together – literally and metaphorically.  As a financial planner and one half of a couple I have to say it’s a good idea to talk about your investments with your spouse.  It’s actually a good idea to be open about your general money life.  Don’t let your finances be the elephant in the room in your couple.

Couples can merge their money and invest together in the same account or they can keep their investments separate but agree on the overall couples investment strategy.  So when it comes to your investment portfolios which type of couple are you?

Two investment styles one investment strategy

Some couples keep their investments separate with their own styles and some couples combine them and invest together.  If you keep your investments separate your styles may be complementary.  If you are a conservative investor and your spouse is more of a risk-taker you can keep your individual investment styles and balance out your overall couples investment portfolio with a mix of both.  This is a great strategy if you don’t want to change your personal investment style but still want to keep an overall couples investment portfolio.

This is how Nick and I manage our money.  We keep our investments separate because we just always have.  It never occurred to us to combine our money – honestly I’m not even sure I know exactly how he invests his money.  I think he’s a little more conservative than I am.  I do know that my boyfriend takes a very passive approach to his investments.   He visits his financial advisor when she calls (yes she’s a woman just like me) and he usually takes her advice.

We don’t like to mix money into our relationship

I know some people and some couples probably disagree, but this is what works for us.  Even though I am a financial planner I don’t like to mix money into my love life or family relationships.  I don’t give my family members investment advice and I don’t meddle in my boyfriends money.  I think the feeling is mutual because Nick never asks my opinion or advice when it comes to money.  It works out quite lovely.  We both save for retirement, we both save money in non registered accounts and we both contribute equally when we need something for the apartment – we just do it individually.

Joint money in one investment portfolio

Some couples combine their money and invest together.  This is a good strategy if you start saving together.  However if you meet later on in life and are already set in your financial ways it may be an adjustment to change your personal investment style to match your spouses.

If you and your spouse want to start saving together it’s a good idea to set up automatic payments from your joint account into the investment account.  If you don’t have a joint bank account you can set up equal contributions from your individual accounts.  This way you can contribute equally and spend together.  Everyone wins.

What’s your couples investment style?

Photo from Flickr

Weekly roundup: Bankruptcy and Retirement

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Friday

Happy Friday Dinks.  I saw this photo and thought it’s the perfect way to but you in a relaxing mood to start your Friday.  It’s weekend so let’s get it started with some great posts from our personal finance friends.  Enjoy!

Man vs. Debt – You Want It. You Buy It. You Forget It.

Modest Money – Top 5 Causes Of Personal Bankruptcy

Yes, I Am Cheap – Does Money Make You Mean? Answer: Yes!

Good Financial Cents – 15 Reasons Why You Won’t Be Able to Retire Early

Money Crush – What to Do With an Inheritance

Money Crashers – 11 Best Part-Time Jobs With Health Insurance Benefits

Photo from Flickr

How much money equals happiness?

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good money, bad money, money equals happiness, the joy of money

Happiness

Good morning Dinks.  Yesterday I wanted to buy myself a new summer dress and I thought…hhhmmm better not.  I am close to already spending my personal allowance for the week and we still have two days to go. Even though I really wanted a new dress I didn’t need it.  I have several gorgeous dresses but it’s hot out and you can never have too many breezy clothes for the hot summer weather.

Is financial freedom just an emotional comfort?

I apologize to all our male Dinks readers out there but unfortunately this is an issue women have to deal with during the summer months – long hair and hot sticky clothes.  Unfortunately we can’t take our shirts off where ever we are whenever we get hot.  AAAHHH it must be nice to be a man.

As I walked away from my potential purchase I started thinking, what would people do for their personal happiness?  Or yet a better question may be, what should people do for their personal happiness?  As a financial planner I constantly find myself trying to find a balance between emotional happiness and being financially responsible.  So my question to you is, how do you do it?

Does money and happiness go hand in hand?

Would you overpay for something you want?  I pride myself on finding the best deal possible on clothes and my boyfriend Nick loves buying bargain DVDs.  However he will pay extra for something he really wants.  Enter into evidence our brand new Samsung Smart TV – total cost $2800.  I think this is a lot of money to spend on a TV, but he thinks it’s a good deal because the cost is worth the benefit of the new TV features.  I have yet to determine this is true.

Do you always save as much as you can?  I like to put as much money as I can aside.  With that being said I am not one of those people who are willing to stop living their life so I can save as much money as I can.  I love travelling and I’m not a big fan of the city where I live right now so I try to get away as often as possible.  This means that I have to spend money on travel expenses, hotel accommodations and exploring new cities.  Yes of course I would have a lot more money if I didn’t travel three to four times a year – but I don’t want to make that sacrifice.

Do you feel guilty when you spend money?  Some people can’t save.  They just spend all the money they have and wait for their next paycheck.  Add in thousands of dollars of credit card debt and I used to be one of those people, but now I am capable of saving money.  After being broke for several years I was very reluctant to spend money, any money that wasn’t necessary for daily living because I felt bad. I feared I would fall back into my old bad habits.  Now I am loosening up the money belt and every now and then I allow myself to spend money on myself guilt free.

Photo from Flickr

What’s your couple type?

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handling finances, couple finances, handling finances together, couple finances

what's your couple type

This past week I went to a barbeque at my friends house and I met three very different couples.  I don’t know why I go to backyard barbeques because I’m a vegetarian, but that’s a whole other story.  One couple was lovey-dovey, one was DIY and the other was very submissive.  Although I would never have the courage to ask, but as a financial planner I made my own conclusions, I wondered if these couples managed their money the same way they handled their relationship.

The lovey-dovey couple who does everything together.  During the three hours I spent with this couple they never left each other’s side.  I mean never.  They sat together, ate together and engaged in the exact same conversations.  Neither one of the people in this couple could live or breathe without the other and I imagined they managed their money the same way.

This is the type of couple who goes to the grocery store together, buys birthday gifts together and plans their vacations together sitting at their computer or on a three way call with the travel agent.  They probably don’t make any financial decisions without consulting the other.  I think it’s a great idea for couples to talk about their money, however I don’t agree when one half of a couple can’t make an actual decision (financial or life) without the other.  I mean where’s the independence in that?

The DIY couple who are completely independent of each other.  This couple is the exact opposite of the first couple I met.  This couple had been dating for ten years.  They met in their last year of college and have been together ever since, they married three years ago.  Both people in this couple are very independent.  They realize they are their own individual people who just happen to be in a relationship.

This couple probably keeps their money separately and splits all expenses 50/50.  I have seen this type of couple several times in my career.  They live their own lives and meet up at home in the evenings.  This type of couple usually also comes to their bank appointment separately.  I had a couple like this when I was working in a bank branch as a financial planner.  I worked at the same bank branch for three years and during that time I never met the couple together.  I only knew they were married because both their names were on their joint accounts.  Although it took me a good two months to put the pieces together.

The submissive couple where one person is clearly dominant.  This kind of couple personally drives me crazy – in life and when it comes to money.  This is the type of couple where one person is always dominate and usually controls everything from the household operations to the family finances.  I actually don’t believe in one person always compromising in a relationship – but that’s just me.

Call me crazy but I think both people in a couple should have their say then they can come to a mutual agreement.  I don’t know if I would be happy in a relationship where I didn’t have my own money and where I was always told what to do and how I could spend my money.

What’s your couple type?

Photo from Flickr

Why living in a city is a gift and a curse

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city living, advantages in the city, living in the city, gift of the city, curse of the city

living in a city

Good morning Dinks.  As you know Nick and I live downtown in a big city.  We live in a high rise apartment and we’ve always loved it…until now.  As we get older we love the convenience and safety of living in a high rise but are starting to hate the close quarters and proximity to other people.  So come this fall we are moving.

Our location will change but our lifestyle will stay the same

After several long discussions Nick and I made the decision to stay in the city. We talked about moving to the suburbs but we just aren’t ready for that type of move yet.  We are going to move to a better apartment in the city, preferably still downtown but in a different neighborhood.  I was born and raised in a small town so I know firsthand what suburban living is like.  It definitely has it’s perks but I much prefer living in a city.

We don’t want to live in a high rise building anymore, we are looking to live in a brownstone or triplex.  We are currently renting and you know I love it.  However if we can’t find all the amenities we are looking for in a rental we may have to buy our next apartment.  We want to have more space, possibly an extra room, no neighbors and our own washer and dryer.  Is that too much to ask for an apartment in the city?

This is what I love about living in a big city:

The job opportunities.  With business centers and city centers there is no shortage of tall office buildings and head offices with job opportunities in big cities.  This is not to say that suburbs and small towns don’t offer jobs, I mean everyone has to work.  It’s just that we have more opportunities living in the city.

City salaries are higher.  Yes it’s true our salaries in the city are a lot higher than those in the suburbs but the cost of living is also a lot higher.  A few years ago Nick and I were thinking of relocating to a smaller town and my employer confirmed that my salary would be adjusted accordingly.  I know that my expenses would probably be lower in a small town but the pay cut would be a hit to my ego.

It’s cheaper to travel.  Flying anywhere from a city with a hub is a lot cheaper.  It’s also a lot more convenience because big cities offer direct flights.  I love travelling so being centrally located to other major cities, country cabins and the beach is a major plus for city living.

The things I miss about living in a small town:

My feet in fresh cut grass.  I know this sounds crazy but I really miss walking around without my shoes.  Whenever I visit my parents in my hometown I rarely wear shoes, unless we are going out.  I hate wearing socks and I hate wearing shoes even more…unless they are flip flops.  It’s safe to say I will not walk around a big city without my shoes.

The absolute quiet.  Two of my biggest fears are complete silence and total darkness.  However I can definitely live without the racket from my noisy neighbor when I’m trying to sleep.

What do you prefer – big city living or small town living?

 

Photo from Flickr

Weekly roundup: July 4th, House Insurance and Self Employment

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Fireworks

Good morning Dinks and happy July 4th weekend.  I wish you all lots of fireworks, barbeques and sun over the next three days.  Enjoy!

Here are some great posts to kick off your Independence Day:

Careful Cents – How to Protect Your Business With Solid Terms and Conditions

The Me Project – Find Affordable House Insurance Rates

Wise Bread – 22 Supermarket Tricks You Haven’t Heard Yet

Retire by 40 – What is the One Thing Holding You Back?

Budget Blonde – A Day In The Life: Self Employment Version

Cents, Sense & Sensibility – Winning Purchase Offers: Buying a home in a seller’s market

Evolving Personal Finance – Why We Aren’t Contributing to Our New 401(k)

Photo from Flickr

Venus and Mars and Your Office

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women in the office, men in the office, women run the world, office complications, office politics

Office

Good morning Dinks.  You know they say “Men are from Mars and Women are from Venus”, well I haven’t read the book but as I get older I am noticing a huge gap between the sexes.  A man can be in the exact same situation as a woman and see the outcome completely different.  Why is that?

Yesterday I was talking to my co-worker about our bosses.  She works in my department but on a different team than I do so we have different reporting managers.  We were chit chatting about a recent department meeting and she said to me “I am happy that I work for a man”.   I personally couldn’t agree more.  Although I currently work for a woman and actually really like her, I would prefer to work for man.

Men make the workplace more enjoyable

I am not sure why I prefer to work for a man, but I think it has something to do with us being opposites.  Men and women seem to get along better than women and women.  Men are definitely less dramatic than women.  When a man says something he means it, there is no wondering what he really meant and we don’t have to talk about his decision for 15 minutes afterwards.  This is a quality very much appreciated in a work-related environment.  I wish the whole world could just stop talking so much and we would get a lot more work done.

Women make the office complicated

For some reason, and again I’m not sure why, but women in the workplace equals complications.  If you have ever worked in a women-filled office environment, in a woman-dominated retail sales store or just anywhere that the number of women outweigh the number of men, you know exactly what I’m talking about.  The gossip and cattiness among women can really make the work day longer than it needs to be.

Women also seem like they always have something to prove.  I once worked in a bank branch where the manager ruled by fear.  She would make employees cry almost on a daily basis.  That’s right actual grown adults crying in the bathroom at work.  She was loud and forceful and had absolutely no manners what so ever.  It was effective because the branch was number one in sales in our region, but employees were very unhappy and we had a high turnover rate.

Men are more straightforward managers

I have worked for both men and women throughout my career and I feel that men are more straightforward when it comes to office politics.  If there is a problem in the workplace or between employees men like to get it out in the open, fix it and move on.  It’s too bad I can’t say the same for women.

When women (especially women in power) have information they like to keep it to themselves and spring it on employees at the last minute, instead of having an open and honest policy.  I’m not sure why but I think it has something to do with women feeling like they are in power.  Power trips are a major problem among women in the workplace.  Photo from Flickr

Paying for credit with credit: Good idea or bad choice?

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good credit, bad credit, paying credit with credit, credit card, credit card purchases

Car

Good morning Dinks.  Remember a few weeks ago when I wrote about the crazy idea of paying for a car with a credit card?  Well we had an influx of comments with people telling us all the crazy things they bought on their credit card.

J. Money from Budgets Are Sexy actually bought his Cadillac on his credit card with a low interest check he got in the mail.  Dee from Color Me Frugal and her husband actually tried to buy a car on their credit card and the dealership wouldn’t let them because the dealership didn’t want to pay the administrative fees.  JP bought his roommates car on his credit card because the roommate wanted to pay cash and JP wanted the rewards points.  It was a win-win for both of them.  Dillon bought his motorcycle on a credit card to earn the reward miles.  He paid off the balance in full at the end of the month when he got the bill.

So here’s the question – should you make major purchases on your credit card?

Paying for a car.  I stand by my decision not to buy a car on my credit card.  I don’t want to say I would never do it because over the years I have learned never to say never.  However a credit card wouldn’t be my first choice of a payment method to buy a car.  The interest rate is probably higher than financing through the dealership.  However if you aren’t approved for financing through the dealership paying with a credit card is a good alternative.

Paying for a down payment on your home.  Yes this really happens, I’ve seen it.  Throughout my ten year banking career I have seen at least three people try to purchase their home on their credit card.  .  This is an absolute financial no-no.

There are three major problems with trying to pay for a down payment on your credit card.  First off banks don’t like it when clients try to pay for credit with credit, it shows the bank that you don’t have the ability to save.  Secondly paying for credit with credit is a red flag, it shows lack of financial responsibility.  Banks want you to have as few payments as possible when they approve you for a mortgage loan, adding on a payment to your credit card is not favourable.  The last problem with trying to pay for your mortgage with a credit card is it will be treated as a cash advance.  This means you start paying interest right away and the interest rate is high.

The benefit of making big purchases on your credit card.  Of course the major advantage of making big purchases on your credit card is earning rewards points and cash back.  If you charge $20,000 for a car on your credit card I think we can all agree that equals a lot of rewards  points.  It may even be enough to get a free trip for two.  Keep in mind that you do not earn rewards points and cash back on cash advances.  If you have the money to pay off your big purchase right after charging it onto your credit card it may be a smart financial move.

Photo by Flickr

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