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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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Dinks Choice: Pay off your mortgage or save your money?

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pay off mortgage, save money, finances

Tree houseGood morning Dinks. As a financial planner one of the most frequent questions that I am asked by clients is “Should I save for retirement or pay off my mortgage?”  The easy answer is you should do whichever options saves you more money or makes you more money. But the truth is that it is a much more complicated question than that.

Both options have their advantages and disadvantages and as with everything in financial planning there is not one answer that applies to everyone. One option can save you a lot of money on interest charges and the other option helps you save money that you can use on other goals such as going on vacation.  You answer to this always outstanding financial question depends on your personal financial situation because just like with everything in financial planning there is no one right answer for everyone.  If debt drives you crazy then maybe you should pay off your mortgage, but if have other financial goals then maybe you should save money on a regular basis.

If you and your spouse are deciding whether to pay off your mortgage or save money ask yourself these three questions:

Which option is in line with your goals?  Maybe your couple’s goal is to save money and take an exotic vacation every year.  If you don’t have enough free income to save money and make extra payments on your mortgage you will have to prioritize your goals.  I love travelling and I honestly believe that people will most likely have some type of debt throughout their life.  So I prefer to save money and go on a couple really great vacations every year and keep my debt at a low interest rate on my mortgage.  If I can keep my credit card payments to a minimum, keep my debt limited to a mortgage and travel to new places I will be a happy camper.

Which option is better for your mental health?  Some people just can’t sleep at night if they have debt; if that sounds like you then your goal is probably to pay off your mortgage as soon as possible.  I always love reading about people who increase their monthly mortgage payments, double up on payments and take advantage of the prepayment option.  I always think to myself “WOW those people are really disciplined.”  I personally don’t want to sacrifice my lifestyle just for my home but I have to admit that it would be nice to be 40 and not have to worry about making a monthly mortgage payment.

You can always do both.  With the right financial planning you can save money for other financial goals and still make payments to pay off your mortgage as quickly as possible.  Maybe you can increase your regular monthly mortgage payments to help pay off your mortgage sooner and at the same time save money for your other goals.  I am a huge believer that we can achieve multiple goals at the same time if they are realistic.  Maybe you can’t afford to pay an extra $20,000 on your mortgage every year, but that doesn’t mean you can’t afford to pay $10,000.

Do you prefer to save money or pay off your mortgage?

Photo from Pinterest

 

Weekly roundup: Bitcoin, Murphy’s Law and Travelling

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Happy Friday the 13th Dinks.  How do you feel today? When you woke up did  you have a bad feeling in  your stomach or did you wake up thinking today is going to be a good day.  Do you think Friday the 13th is good luck or bad luck? Maybe you think it’s scary and are going to spend the night watching movies and eating popcorn.  Maybe you think Friday the 13th is good luck and you are going to take a risk today because the fate of the world will turn the outcome in your favor.

I hope today brings you lots of great things today.  Enjoy these awesome posts from our friends:

Punch Debt in the Face – Answer this question…

Rockstar Finance  – Retire Even Earlier Without Earning More or Spending Less by MadFientist.com

Smart Money Chicks – How to Protect Your Money After a Break-Up

Broke Millennial – Bitcoin 101

Lisa vs. The  Loans – Murphy Gave Me a Little Scare

Broke & Chic – 3 Ways to Make Your Life Easier While Traveling

Photo by DarrenForeman

Still having money problems in your 60s?

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money problems, financial problems, senior citizen life

money problems, financial problems, senior citizen life

Good morning Dinks.  We all work so one day we can stop working and live happily ever after into retirement bliss.  But what can you do if you are mentally ready to retire, but can’t afford it financially? Well that’s the situation that one of my clients is currently facing.

My client Mrs. Zenna has been happily married to her husband for over 30 years and they planned to retire together, but the Zenna family has had anything but a blissful retirement. Mrs. Zenna has had a hard time adjusting to her new fixed, and lower, income in retirement.

As much as possible we (myself and Mr. Zenna) tried to plan for their retirement both financially and mentally, but Mrs. Zenna didn’t always take our advice.  She was used to having a certain lifestyle and she wasn’t sure what to cut out of her retirement budget, so she didn’t make any cuts in her monthly spending.  Mrs. Zenna just kept spending money the couple didn’t have and to hide her spending from her husband she spent it on her credit card.

Now two years into retirement Mr. and Mrs. Zenna found themselves $20,000 in debt and they don’t know what to do about it.  Mr. Zenna was completely shocked when his wife confessed that she was overspending and accumulating debt during retirement – mostly because they have no money to pay off the debt.  This may not have been a problem if the Zenna family didn’t live on a very strict budget, but they do.  So I sat down with Mr. and Mrs. Zenna to discuss how they can fix their finances in retirement.

3 financial planning rules for couples:

Share the financial responsibility.  One of the major problems in the Zenna financial relationship is that only Mrs. Zenna manages the accounts.  If both couples in a relationship keep an eye out on the family spending and saving then bad habits can be caught a lot sooner.

Seek professional help.  If you are in retirement and finding it very difficult to adjust to your new lifestyle with a lower income then get some advice from a professional financial advisor – that’s what they are there for.  Financial advisors can help you set a budget, find patterns in your spending and suggest places where you can make cuts as well as control your spending when it comes to debt.  If you can’t break your old financial habits, then it’s time to seek professional help.

Fixed income needs fixed expenses.  The truth is that couples in retirement should not even have credit cards because if you live on a fixed income you also have to have fixed expenses.  The Zenna family lives on a budget that includes income from their retirement accounts, they are no long saving money because they are spending it.  But if they over spend one month they don’t have the extra income to pay off debt.  So what do they do? They have to spend less the next month in order to make the debt payment, but they aren’t financially responsible enough to do so.  The money rules in retirement are kind of like the money rules when you are a teenager starting your financial life – if you don’t have it, then don’t spend it.

Photo by Leshaines123

Fight Back: Book review and giveaway

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Good morning Dinks.  Have you ever spent money and then felt totally ripped off? I know I have.  I absolutely hate wasting money from ordering a meal that doesn’t taste good to buying an outfit and seeing it go on sale a week later.

Financial author and columnist Ellen Roseman feels the same way.  I recently had the pleasure of meeting Roseman and I have to say her new book Fight Back: 81 ways to help you save money and protect yourself from corporate trickery is truly inspiring.

We can stand up for ourselves at the office, with our spouse and with our family – so why not with our money?

Roseman’s new book is on sale now at Amazon and we are giving away an autographed copy to one lucky winner.  Enter below to win, but first here’s a sneak preview…

5 ways to fight back against corporate trickery and keep your money thanks to Ellen Roseman:

1. Look beyond the big banks for higher savings rates. Negotiating with your bank and being a loyal customer will only take you so far.  Sometimes you need to take matters into your own hand and beyond your banking comfort zone to find bigger and better rates.

2. How to fight back when you miss a discount you deserve.  If you are a senior or a student you may be eligible for discounts that aren’t automatically applied.  If you think that there may be possible discounts coming your way – just ask.  The worst thing they can say is no, but you don’t know until you ask.

3. Find the best credit card if you carry a balance.  Due to the overwhelming choice of credit cards on the market sometimes we just pick the most convenient option, but it’s not always the best option.  If you carry a balance on your credit card try to find a credit card with a low interest rate or free balance transfers.  Don’t settle for just any old credit card; use the credit card selector tool on your bank’s website to help find the best credit card for you.

4. How to fight back against bad financial advice.  Every time you go to the bank you may be pressured to make an appointment with a financial advisor.  Many people are skeptical about the advice they receive because they aren’t sure if it’s a sale pitch or genuine financial planning solutions.  Don’t be nervous to ask your financial planner questions: Are you registered with a securities commission? Where did you go to school? What licenses do you hold? Ask questions to make sure you feel comfortable with the advice you are getting.

5. How to cut the cost of your home phone service.  Land lines or cell phones, which option is the cheapest? If you think you are overspending on your monthly home phone service there are ways you can save money on your bill: shopping for a deal within your budget and contact your provider to see if they can match the offer.

Now it’s time for the giveaway!

Enter below to win your own, autographed copy of Fight Back: 81 ways to help you save money and protect yourself from corporate trickery by Ellen Roseman.

It’s real easy to enter, just use the Rafflecopter link below.

The lucky winner will be announced on Boxing Day – December 26, 2013.

a Rafflecopter giveaway

Weekly roundup: Birthdays, gifts and weirdos

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Good morning Dinks and Happy Friday! Today is my boyfriend Nick’s birthday.  When I first started thinking of ideas for his birthday gift I really wasn’t sure what to get for him.  I mean after all what do you buy for your boyfriend after 14 years? But then he did something that he never actually does…he gave me a hint as to what he wants for a birthday gift?

After reading about Nick and our relationship here on Dinks Finance for almost four years can you guess what I bought him for his birthday gift this year?

Let me give you a crash course in Nick: he’s in his mid 30s, he works in computer programming, he loves sports – probably more than he loves me – and he’s over six feet tall.  OK so what do you think I got him?

Here’s a hint: It’s related to his profession, but he won’t use them at work.

Tell us on Twitter @dinks_finance or leave a comment below and tell us what you think Nick wants for his birthday.

Couple Money – How to Save $1,000 on Your Monthly Bills

I Will Teach You To Be Rich – 3 archetypes of social weirdos

Wise Bread – How Do You Save During the Holidays?

Kylie Ofiu – Budgeting on a variable income

PT Money – 40 Christmas Gift Ideas Under $25

Photo by Muffet

My Black Friday Shopping Breakdown

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Good morning Dinks. Remember last week when I said that I wouldn’t go out shopping on Black Friday? Well I was with my best friend and she really wanted to go out and find a new dress.   The thought of being in an overcrowded, hot shopping mall is comparable to scraping nails down a chalkboard, but as her best friend I felt that it was my duty to support her in this shopping endeavour.  So how did we survive Black Friday? With these three simple shopping strategies:

Avoid the crowds as much as possible

We did go out shopping on Black Friday, but we didn’t go at 2 a.m., we didn’t go at 7 a.m., we actually went to the mall at 8 p.m. It was still busy, but it was bearable.  After one and a half hours of shopping I ended up spending $64 and she ended up spending $281.

Online shopping is another way to take advantage of Black Friday, that’s what I did last year.  I purchased candles and shower gel from Bath and Body Works for three reasons: 1. They were having an awesome sale, 2. There is not a Bath and Body Works store near my house so I couldn’t go out and take advantage of the Black Friday sales and 3. I burn a lot of candles at home.  One of my main expenses when shopping online is the cost of shipping, because I live in Canada sometimes the shipping is actually more expensive than my total sale.

Get deals on items that you need to buy

I didn’t purchase any items that I normally wouldn’t buy i.e. yoga pants and undergarments from Victoria’s Secret, a candle from Bath and Body Works and a lip gloss and shower gel from Sephora.  Did I actually NEED any of these items right now? No.  But I will be using undergarments and lip gloss for the rest of life, so why not buy them when they are on sale!?!?

My friend, who is also a former spend-a-holic, bought Christmas gifts as well as some items such as warm winter clothes and perfume for herself.  Neither one of us spent money on items that we didn’t need or want just because they were on sale.

 

 

 

 

Don’t give in to the holiday marketing schemes

I am not a fan of having to spend a minimum dollar amount on my purchase before I get a deal, free gift or discount.  I think that if stores want my business they should offer a discount up front because they appreciate my business, not give me a reason to spend money that I don’t need to.

The Body Shop was offering a tote bag full of products for $25 with any $30 purchase.  Now I guess that’s OK if you already needed products and planned to spend $30 anyways, but it’s still an extra $25 that you didn’t plan on spending.  In my opinion regular products should be discounted before offering a marketing scheme as a way to get clients to spend more money on Black Friday.

What did you buy on Black Friday? Join the conversation on Facebook

Photo by Brian Scoble

DINKS Reality: What’s your investing style?

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investing style, investment, investing, stock market

Jeff Probst in Survivor And yes, the utter shame but I still find myself sucked in by this darn show every single week! And every season I swear I am done, done with this!! :)

Good morning Dinks.  Today we are going to play a little investing game to see if your TV tastes say a little something about our investing behavior.  Our friends at Credit Sesame recently asked their followers on Twitter “What’s your favourite TV show?” According to Credit Sesame we can learn a lot from the beloved characters on our favorite TV shows, and I agree.

What’s your favorite TV show? Some money lessons from popular #TV shows and what NOT to do with your money. – Credit Sesame ‏@CreditSesame

As you know I am a huge fan of Reality TV, this includes reality shows following people’s lives such as Storage Wars and The Real Housewives of Orange County, but it also includes game show-style Reality TV shows such as The Celebrity Apprentice and Survivor.

Think about the TV shows that you watch.  They are most likely a direct reflection of your personality, but are they also a directly reflection of your investor style? Let’s see.

What do your favorite Reality TV shows say about your investing habits?

The Amazing Race. If you love watching teams of two travel around the world in a race against time then maybe you also like to diversify your investment portfolio internationally.  Is this true in your case?  People who have a love for exploring new places and people around the world and have a love for adventure usually want to explore all aspects of foreign places, this includes their economy.  If you love talking adventures and travelling maybe your investment profile is full of emerging market investments and foreign equities or bonds.

The Apprentice.  Do you love watching contestants compete in business challenges for Donald Trump in The Apprentice and The Celebrity Apprentice? If so then maybe you are all about the numbers with your investment portfolio. This is definitely the approach that I take in my investment portfolio, there are absolutely no feelings involved what so ever in my investment strategy.  I am a balanced investor and I have an exact 60% equity 40% income split in my retirement savings plan. I analyze investments before I buy them and I have never bought an investment based on someone else’s tips.

Big Brother. If you love watching houseguests spend a summer relaxing by the pool in the ultra chic Big Brother house in Los Angeles then maybe you also have a laid back investor style.  Maybe you don’t like to choose your own investments; maybe you don’t like to watch the market.  Maybe your passive personality saves money because you know you should, but you don’t really make active investment decisions. If you have a passive, laid-back personality then maybe index funds and ETFs are the way to go for your investments.

Survivor.  I love watching Survivor on Wednesday nights.  It is probably the last Reality TV show that I would ever go on because it’s outdoors, its hard work and you are stranded on an island; but I love watching it nevertheless. If you are a fan of outwit, outlast, outplay then you are probably really cut throat when it comes to money.  You may always be looking for the next big breakout hit to buy their stocks and make a fortune and you probably always have to win aka make money. Am I right?

What is your favorite reality TV show?

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Are you being bullied over money?

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bullied over money, couples finances, couples

We had a falling-out, like lovers often will, and to think of how she left that night, it still brings me a chill. And though our separation, has pierced me to the heart, she still lives inside of me, we've never been apart.

“One in 10 Americans classify their spouse or live-in partner as a “financial bully.” – Credit Karma and Harris Interactive

Good morning Dinks.  If you follow me on Twitter you know that I am very anti-bullying, in all aspects of life from school yards to the work place.  Now that I am older and out of school I honestly don’t understand how teachers and parents put up with bullying from kids in school yards.  In my opinion parents are so concerned about being reprimanded for disciplining their kids so they let kids do what they want and that means picking on other kids.  It is sad that adults chose to ignore bullying because adults show better. I really don’t understand how employers let bullying go on in the workplace and I absolutely don’t believe in bullying in a relationship.

Credit Karma, a financial literacy website, partnered with Harris Interactive, a market research firm, to find out just what’s happening with couples when it comes to money.  Here’s what they found:

You don’t have to be a bully to get your point across

There may always be one spouse who is more dominant in certain aspects of the relationship; one spouse may be better at managing the finances than the other spouse, but is that a reason for bullying? Absolutely not.  There is a way for people to state their opinions and get their message across without leaving one spouse feeling defeated or inferior.

If you prefer to manage the money, set the budget and pay the bills in your relationship then just tell your spouse; don’t bully them into it.

You may not even know you are a bully

Bullying isn’t just about name calling.  If you speak less than admirably to your spouse about their financial habits, debt payments and lack of savings then you may be bullying your spouse…and not even know it.

Credit Karma asked victims about the tactics their financial bully uses to intimidate or control them:

·        Makes me feel guilty for my shopping habits: 37 percent

·        Limits my monthly spending: 34 percent

·        Makes me show receipts for all purchases: 20 percent

·        Gives me an allowance / limits my spending: 18 percent

·        Keeps me from having credit cards: 17 percent

·        Doesn’t let me go shopping by myself: 11 percent

·        Forces me to use coupons: 8 percent

 If your spouse stays with you because of the money…

Very often if one spouse is controlling the money in the relationship they are also controlling the other person in the relationship – and that is really sad.  We hear that people stay together for the sake of their kids (as a child of divorce I can tell you this is not good for the kids) but sometimes people also stay together for the money.  Credit Karma reports that 22 percent of married couples ages 18 to 34 said they would get a divorce “if money were no object.”

 What to do if you are a bully or are being bullied

To learn more about financial bullying, visit CreditKarma. Consumers can take a quiz to determine if their partner exhibits the qualities of a financial bully, and receive relationship advice and financial tips.

Photo from Pinterest

Weekly roundup: Thanksgiving and Black Friday

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Cinnamon Apple Cheesecake

Good morning Dinks and Happy Friday, or should I say Happy Black Friday.  Let’s begin by saying Happy Thanksgiving.  I am not out with all the deal-hunting shoppers today, but I am scanning the websites of all my favourite stores hoping to get some good deals on my favorite products.  I don’t actually need anything right now, but I do like to stock up for the winter.  I like to hibernate from December until April so stocking up on household necessities is a must for Nick and I.

 

 

 

 

 

Let’s take a moment to reflect on all the good things in our lives because so often we focus on the bad. This year I am thankful for: my relationship with Nick, finding a full time job in communications and of course keeping my finances in order.

What are you thankful for this year?

Enjoy these posts from our financial friends.

Budget and the Beach – Feeling the Power to Change Old Financial Ways

Go Banking Rates – What to Do if You Get a Pink Slip

Thirty Six Months – The Things They Don’t Tell You About Money

Well Heeled Blog – Give the gift of experience this Christmas

Consumerism Commentary – Money Systems That Lead to Success: Make Your Budget Fantastic

Save Up – Turning Over a New Leaf: Interview with Prairie Eco-Thrifter

Photo from Pinterest

Want to save money? Cut these 4 things from your budget right now

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save money, cutting costs, budgeting

save money, cutting costs, budgeting

Good morning Dinks. Think about your spending over the last week or so; are there things that you could have lived without?  I am sure the answer for most of us is YES.  Sometimes I spend money just because I have it, but that doesn’t necessarily mean I should be spending it.

I personally don’t want to live in a world where I save every single penny I earn and I don’t want to live in a world where I don’t spend any money on myself because in my opinion that’s not a life worth living.  I enjoy spending my money, but at the same time I save for the short term and for retirement because I don’t want to be forced to use credit in case of an emergency and I definitely want to retire some day.

What could you cut out of your weekly budget?

1. Bottled water.  I absolutely love bottled water, but my boyfriend Nick is really into saving the planet so unfortunately this was a luxury that I cut out of my weekly spending.  When cases of water go on sale we can buy 24 bottles for only $3 and since I change the water bottle twice every week a case of 24 bottles can last for 3 months.  However Nick doesn’t like buying bottled water so I bought a reusable Brita bottle.  I paid a one-time $9 cost and saved a fortune on bottled water.

2. Starbucks.  I am not a huge coffee drinker, but when the weather gets cold I love a good Pumpkin Spice Latte or Caramel Macchiato.  I limit myself to Starbucks once a week – if I feel like it.  I would love to be able to afford to drink Starbucks every single day, but I can’t so $5 once a week fits perfectly into my budget. Savouring and saving for my Starbucks visits makes me appreciate my Starbucks moments even that much more.

3. Drinks and smoking.  I don’t do either and I really hate it when people complain about not having any money then they light up a cigarette, it’s absolutely my pet peeve. If you buy one pack of cigarettes per week for $8 it adds up to over $400 a year.  If you smoke a pack of cigarettes a day it adds up to almost $3000 a year.  I am sure we can all agree this is money that can be better spent.

4. Public transportation.  I personally hate taking public transportation because people have germs and I am not a big fan of crowded spaces.  However during the cold, snowy winter months up here in the Northeast I take public transportation – I don’t like it, but it’s better than catching a cold or walking home in a snow storm.  I live approximately 30 minutes from my office so walking to and from work at minus 40 is just not an option.  Walking helps me relax after work and decompress before I get home.  It’s also a great opportunity to run some errands on my way home.

Photo by dannyman

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