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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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Why I Can’t Live Without My Emergency Savings Fund

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emergency savings fund, money tips, money advice

As I learned to become financially responsible, I decided that I had to change the way that I managed my money. We can’t expect things to stay the same and expect different results. When I was younger I used to live pay check to pay check, I was not saving money in an emergency fund, and I was definitely not saving for retirement.  I used to shop a lot and I would usually charge my purchases on to my credit cards; then I would spend my entire pay check making only the minimum monthly payments on all of my credit cards.

I was spending my hard earned money on making only the minimum monthly payments and it was not cost efficient.  I decided to make some financial changes in my life; one of them included supplementing my income with a second job so that I could finally start paying off my credit card balances, and the other one included starting to save in an emergency savings fund and saving for retirement.

I never saved money in an emergency savings fund because I thought that my credit cards were my emergency savings fund. Whenever I wanted something and I didn’t have the money to pay for it, I would just charge the purchases on my credit cards.  I would also use my credit cards for basic living needs such as paying for groceries and rent; and then I would use my pay check to make the minimum monthly payments.

I finally decided that my minimum monthly payments could be better spent.  I used my secondary income to start paying off my credit card balances with fixed regular payments that were above the required minimum monthly payments. I made a personal budget that ensures all of my bills are paid on time each month.  To say that my personal spending was cut down would be a major understatement, with my new budget my income is fixed and therefore so are my expenses.

I reallocated the amount of money that I was paying towards my credit cards into an emergency savings fund.  Now I enjoy watching my savings grow.  I’ve learned about different ways to invest my money rather than spending my full paycheck. It is comforting to know that I will not be accumulating debt if ever I have another personal financial emergency.  It is also important to note that my personal definition of a financial emergency has changed. Like many people who have struggled with debt in the past I am deathly afraid of falling into my old bad habits and once again accumulating debt.

I have a short term emergency savings fund as well as a medium term emergency savings fund.  I save some of my money saved in a high interest savings account so that I have access to cash at anytime.  I save the rest of my money in a bond mutual fund for longer term or larger emergencies; it acts as a backup emergency savings fund.  This way I have the flexibility of having cash on hand at all times as well as earning a higher rate of return on money that is in my emergency savings fund but that I am not using.

Photo by davidberkowitz

Would You Quit Your Job Without Any Prospects?

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quitting your job, career advice, career tips

quitting your job, career advice, career tips

Good Morning DINKS.  Let me ask you a question, do you like your job? I was recently talking with one of my co-workers who told me that her husband is currently out of work.  Almost instantly I offered my condolences for him being laid off. She quickly told me that he was not laid off, but actually quit his job and he has been actively looking for a new job over the past three months.

During this same week my co-worker from another bank branch actually got fired. He was unhappy at our bank, but he still came to work every single day because he and his wife are expecting their first baby in November.  I guess that his lack of commitment and possible negative attitude started to affect his work and he was let go without any notice.

Being out of a job is definitely a scary place to be.  The current job market (especially in finance) is scarce and the competition for available positions is fierce.  I personally don’t know anyone who absolutely loves their job, but we still all wake up every morning and we go to work every day because we all have financial responsibilities and personal obligations. I am not sure that I would quit my job without any prospects if I had a spouse and a family who were relying on me.

As financial professionals we advise clients to have at least 3 months of expenses in our emergency savings fund, but what can we do if our job loss lasts longer than our emergency savings fund?

It is definitely not a good feeling to be out of work because the uncertainty of our future income can be very stressful.  However at the same time we don’t want to feel undervalued in a job that does not maximize our expertise and experience.  If you were searching for a job would you take a position that you considered to be below your level of expertise because after all, some income is better than no income at all.

MSN recently published a list of people where were fired without notice but became rich and famous by doing something else.

Who do you think is on the list?

– Walt Disney was fired from a local newspaper in Kansas before he created a cartoon empire.

– JK Rowling was fired as a secretary for daydreaming about writing a book called Harry Potter.

– Michael Bloomberg was fired from an investment banking firm before he became mayor of New York City.

– Anna Wintour is the notorious editor in chief of Vogue Magazine. She was fired from the magazine Harper’s Bazaar after only nine months of working as a junior fashion editor.

– Madonna was fired from Dunkin’ Donuts in Times Square for squirting jelly donut filling all over a client.

– Oprah Winfrey was fired as a reporter at a local news station in Baltimore before she became the Queen of daytime TV.

– Jerry Seinfeld was fired from his minor supporting role on a sitcom before he was cast as the leading role in his own sitcom.

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Friday Roundup: Cars, Retirement, and Tenants

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race carGood Morning DINKS and Happy Friday.

It’s the beginning of May and hopefully the warm weather is not far behind. We have found some really great posts around the web this week and we are delighted to share them with you so enjoy.  Have a great weekend everyone.

– Redeeming Riches helps us plan for retirement in the post “401k Rollover to IRA: Options to Consider”

– Budgets Are Sexy asks a question that may be on every mans mind “Cash or Credit for Engagement Ring?”

– Clever Dude helps us save money on our car in the post “Financial Failures and Money Saving Auto Repairs Not to Do Yourself”

– Passive Income Now advised us how to keep our income flowing in the post “What Do You Do When Your Tenant Wants to Leave?”

– Modest Money makes sure that we always leave a good impression in the post “Avoid Burning Your Bridges”

Photo by Borman818

This Year’s Most Cost Efficient Cars

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cost efficient cars, save money on cars, car purchasing

Transportation costs can be a huge expense. A few years ago I purchased a brand new Honda Civic and three years later I sold it.  I absolutely loved my car, but the monthly expense was definitely not worth the convenience. My boyfriend Nick and I live downtown in a high rise building, and therefore having a car was more of a luxury rather than a necessity. We don’t need a car for our everyday living, but it was definitely nice to have whenever we needed it to take a weekend vacation or visit our friends in the suburbs.

The cost of our car payments was a major expense, but what really adds up are all of the other monthly expenses that come with owning a car.  Gas, parking, car insurance payments, and car washes can all add up to a lot of money each month.

Many people choose not to have a car or they choose to lease a car instead of buying a new vehicle because automobiles are a depreciating asset.  If we finance our car loan very often we may find our self with negative car equity.  This means that the current value of our car is worth less than the amount of money that we owe on our remaining loan.  The real value of a car comes into play with the durability and longevity of our car.  The longer our car lasts, the more money we are getting for the price that we paid.

According to MSN here are some cars that maintain their value over the long term:

1. The Honda Fit. It is small compact car that is relatively new but is quickly earning a reputation for being sustainable and reliable.

2. The Volkswagen Golf.  This is also a smaller car which people can have for many years. The original cost may be higher than other compact cars but the higher purchase price is worth the durability into the future.

3. The Subaru Outback.  This s crossover car that is not a full size sedan, but not quite an SUV. Subaru vehicles are known for their safety and durability during unfavourable weather conditions.

4. The Honda Accord.  This is a midsize car that people may have for many years. I actually test drove the Honda Accord because it came with luxury options that the Honda Civic did not.  However, it was way too big for my needs (and driving abilities).

5. The BMW 1 Series. The problem with buying luxury automobiles is that the cost can be way more expensive than most people can afford.  Many people don’t see the value in buying a luxury car because the upfront cost is so high.  However consumers have to consider the long term benefits when shopping for a new car.

6. The Lexus GS.  Lexus is a company that is known for the comfort of their cars. The choice to buy a luxury car is definitely for preference rather than functionality.  However if you can afford the price of a Lexus, the Lexus GS can definitely be a good long term investment.

How long have you had your car?

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The Best Credit Cards with Cash Back Rewards

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best credit cards, cash back rewards, rewards programs

Good Morning DINKS. We have discussed many times on this Dinks Finance why we love to use our credit cards.  We have also discussed when and why we choose to swipe our credit card including the added benefits, the extended warranties, and the convenience of using our credit cards.

There is usually a consensus among readers that we always like to use our credit card because we all like to reap the cash back rewards.  Today we are reviewing some of the best credit cards with the best cash back rewards.

Cash Back Credit Card Rewards

– TD Bank offers 5% cash bank on their TD Cash Rewards VISA Card.  Clients can earn 5% cash back on all eligible purchases during the first six months.  After that clients can earn 1% cash back for every $1 spent on all for their purchases with their TD Cash Rewards VISA card.  The interest rate on the TD Cash Rewards VISA card varies between 9.24% and 23.24%. However clients do receive 0% on all balance transfer for the first 12 months.

– Citi  Bank offers $200 cash bank on their Citi Dividend Platinum Select VISA Card. If clients spend $1000 within the first 3 months then Citi Bank will reward them with $200 cash back. Clients earn 1% cash back on all purchases and 5% unlimited cash back when they shop at select retailers. The added bonus with this credit card is that clients earn $5 cash back on all individual balance transfers of $1500 and greater.  There is no annual fee for the Citi Dividend Platinum Select VISA Card and the interest rate ranges from 15.99% to 22.99%.

– Bank of America is currently offering a $50 cash back bonus on the BankAmericard Cash Rewards credit card. When clients spend $100 on their BankAmericard Cash Rewards card in the first 60 days they will receive a $50 cash back reward bonus.  In addition clients receive 3% cash back rewards on all gas purchases, 2% cash back rewards on all grocery purchases, and 1% cash back rewards on all other purchases.  There is  no annual fee for the Bank of America BankAmericard Cash Rewards card and clients receive an extra 10% in cash back rewards when they redeem their cash back rewards directly into their Bank of America checking or savings account.

– Chase Bank offers various cash back rewards on their Chase Freedom Credit Card.  Clients get $100 cash back when they spend $500 within the first 3 months. Clients earn 5% cash back rewards in bonus categories, unlimited 1% cash back on all other purchases, and up to 10% cash back when they shop through Chase online.  There is no annual fee for the Chase Freedom Credit Card and the annual interest rate varies between 11.99% and 22.99%.  Clients can also make balance transfers at 0% interest rate and pay 0% interest on all purchases in the first 6 months.  However, there is a balance transfer fee applied to all balance transfers onto the Chase Freedom Credit Card.

Which credit card do you use for cash back rewards?

Photo by MoneyBlogNewz

You Shouldn’t Overpay For These Items… But You Probably Will

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overpriced items, money matters, financial advice

Good Morning DINKS.  Today we are discussing our tendency (if any) to overpay for items that we need, items that we want, and items that we love. Think about your last purchase…did you get a good deal for the item or did you totally overpay for it?

More often than not we all like to find a great deal, but unfortunately sometimes we end up overpaying for our items. Sometimes we overpay for our items out of convenience and sometimes we overpay for our items just because we really want them.  Overpaying for items is never cost efficient, but sometimes it happens.

According to MSN Money here are some items that are always overpriced:

1. Food and Snacks at the Movies.  A couple’s date night at the movies may end up costing over $50 when you add in the price of movie tickets, popcorn, candy, and drinks.  If you and your sweetie are going out to the movies for a date night try and eat at home beforehand…it can save you a bundle of money.

2. Parking Meters and Tickets.  I am personally guilty of this.  I absolutely hate paying money at the parking meters, but it is definitely a lot cheaper than paying for a parking ticket.

3. Computer Printer Ink Cartridges. We can buy a new printer and three months down the road we can find out that it costs half of the original price of the printer to replace the ink cartridges.  Sometimes stores like Wal-Mart will sell both the colour ink cartridge along with the black ink cartridge in a duo package deal, but even that can be expensive.

4. Bottled Water.  I am also guilty of this, I usually try to buy a case of bottled water because it is definitely cost efficient when we purchase 24 bottles of water for only $2.99, but unfortunately sometimes I end up buying an individual bottle of water for $1.00.

5. Specialty Coffees and Lattes.  A cup of coffee, a cappuccino, a latte, or a hot chocolate at Starbucks can cost up to $5 (or more) depending on the size of our cup.  If we drink 2-3 cups of coffee per day our daily coffee costs can definitely add up.

6. Oil Changes and Car Washes. The DIY craze is taking over the world by storm.  People are doing home renovations and redecorations all by themselves, so why can’t we do our car maintenance by ourselves? We can save a lot of money if we change our oil and wash our car on our own instead of visiting the dealership or garage.

7. Eating Out and Ordering In.  Takeout food and restaurant food is definitely over priced because we are paying for convenience.  It’s a lot easier to order something and have it delivered than it is to cook and clean dishes.

8. ATM Fees and Bank Fees. As a bank employee I always tell clients to try and avoid paying monthly bank fees or ATM fees because they are totally overpriced. I hate withdrawing money from another bank’s ATM because it can cost us $3 when we withdraw $20. If our checking or savings account requires that we maintain a minimum monthly balance in order to avoid a monthly service fee, then we should definitely try to maintain the minimum monthly balance.

Photo by Parker Michael Knight

Are You Dependent on Money?

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money advice, financial tips, financial advice

whoopie piesGood Morning DINKS.  As a dual income couples we all earn money. We may use our money to pay our monthly expenses in order to live our lives, we may save our money for our future goals, or we may spend our money in order to enjoy our lives in the moment.  Money may pay for our lifestyle and it may help us achieve our personal dreams; so if money controls our lifestyle does it mean that we are dependent on money for our personal happiness?

Think about the last time that you were upset because you were having a bad day, how did you make yourself happy again? Maybe you went out shopping and bought something nice to make yourself feel better, maybe you ate your favourite comfort food in order to boost your good mood, maybe you took a hot shower or a long relaxing bubble bath, or maybe you just took a little nap to make yourself feel better in hopes of waking up refreshed.  When you want to make your bad day better does your personal therapy session involve money?

Being dependent on money is just like being dependent on anything else in life; it can be our go to saviour that helps us gets through the tough times in life and makes us feel better when we are having a bad day.  However dependency (on anything) can be a gift or a curse.  It can definitely help us feel better, but the happiness may only be temporary.  Some people eat Oreo cookies to make themselves feel better after a bad day and some people choose to spend money on some retail therapy. However after the bag of cookies is gone or the money is spent we may find ourselves once again unhappy.

I used to spend money carelessly when I wanted to celebrate the good times in my life, and also when I was sad and trying to make myself feel better. I no longer have the habit of spending money carelessly whenever my mood changes because I learned that money does not control my happiness or my sadness.  When I tried to make myself feel happy by spending money I lived to learn that I just ended up feeling worse when I got my monthly credit card bill.  At the end of the day after the money is spent the problems that made me sad or unhappy were still there. Money doesn’t buy happiness and food only provides temporary comfort for our personal problems.

I am not sure if it is healthier to drown my sorrows by shopping or by eating comfort food, but I think that both options can lead to personal destruction if we become dependent on either of them.  If we depend on something such as food or money to make us happy our dependence can become very destructive if we don’t ever actually ever get to the root of the problem and try to correct the aspects of our lives that are causing us stress or making us unhappy.

Would you consider your personal happiness to be dependent on money?

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Friday Roundup: Cooking, Investing & Real Estate

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dollar billsHappy Friday DINKS.  I hope that you all had a nice week, I am at home as I recover from my eye surgery and I am definitely enjoying my time off work.

Don’t get me wrong I do like my job, but sometimes it’s just nice to get out of a routine.  I am definitely not looking forward to waking up at 7 am every morning when I have to go back to work, actually I totally hate the sound of my alarm clock and I wish that I could start my day with another sound.

We found some interesting posts around the web this week and we are sharing with you for your reading pleasure.

Enjoy and have a great weekend.

– Adaptu helps couples work it out in the post “Financial Struggles in a Relationship – Part 1: Income Inequality”

– Careful Cents shares some business smarts in the post “6 Business Lessons to Learn from Facebook’s Instagram Deal”

– The Simple Dollar discusses personal struggles and changes in the post “Dependency”

– So Over Debt shares her hatred for culinary art (with me) in the post “I Suck at Cooking”

– Passive Income Now helps us increase our assets in the post “One Important Rule For Getting into Real Estate”

And for our Canadian Friends….

– Bankrate helps us choose the best investment option in the post “RRSP vs. TFSA”

Photo by Molly

Saving Money on Home Renovations

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home renovation tips, saving money on renovations, frugal home renovation

It’s Springtime DINKS and that means very soon many of us will become overwhelmed with the need to buy a new home, upgrade our current home, or redecorate a room in our home.  Spring Fever is starting and it’s time for new beginnings.

Today’s post is inspired by many hours of watching the TV show Flip This House on A&E TV as well as recent post that I found on TD Bank about how to save money on our home renovations.

If you are selling your house:

A finished basement adds value.  Very often a basement may be unused space or space that we only use as storage, but we should definitely consider finishing our basement (at least to a bare minimum) if we are going to sell our home. A finished basement can add anywhere from $10,000 to $20,000 of value to our home.

The kitchen is the main selling point.  People love a nice kitchen. When selling a home it’s important to make sure that the kitchen makes a good first impression. Get your appliances inspected and fixed by a local expert like anaheim appliance repair service to be sure. Nice cabinets, durable countertops, and eco friendly appliances are all great kitchen additions and upgrades. The master bedroom is also a main selling point for buyers; the master bedroom should be clean and well kept. We also have to think about curb appeal when selling our home.  If your house looks great from the street then potential buyers will want to come in, take a closer look, and hopefully make an offer to purchase.

Walk through with clients. This allows us to point out the strong aspects of the home and tell potential buyers about upgrades or renovations that have been done.  If potential buyers walk through our home alone they may not always see the added value in our home.

If you are renovating your home:

Try to prepare as much as you can yourself.  Cleaning and clearing out spaces our self before the construction crew comes in can save us a lot of money. We can also try doing some minor demolition ourselves to save money.  If we decide to hire a contractor instead of completing the renovations our self we can get the project started and add the finishing touches (such as paint) ourselves.

Choose your colours before the work starts. Having all of our paint colours, furnishing colours and wood colours ready to go can save us a lot of time.  We want to shop around to find the perfect match, but if we wait until the last minute our options may be limited. We can research ideas from home magazines and furnishing catalogues, we don’t necessarily need to hire a decorator.

Buy the materials yourself. Contractors can increase the prices for materials as well as the cost to transport the materials. We can save a lot of money if we consult with our contractor but buy the materials our selves.

If you are hiring a contractor:

Get 3 Quotes. Shopping around for a contractor can save us a lot of time and it also ensures that we are getting a good deal for the quality of work. If we are willing to get 3 different quotes for car insurance then we should also be willing to do so for our home renovations.

Interview and Ask For References. Technically hiring a contractor is a job interview, so treat it like one. Ask the contractor to come to your home have a look around and then provide a quote for the work to be done. You can ask them for previous employer and job site references.

Start Early. Last minute prices can be inflated and there is no need for that. Contractors name their own price for the required work and if they know that clients are in a time crunch they may be inclined to increase their prices.

Photo by USACE

Breaking Up Without Getting a Divorce

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breaking up, relationship advice, relationship tips

I recently heard through the office gossip grapevine that my Branch Manager is getting divorced.  Yesterday in the lunch room she confirmed that the rumors are true.  My Branch Manager didn’t make a big announcement; she was just casually mentioning that she has some extra work on her plate right now because in addition to her duties as our Bank Branch Manager she is also dealing with her divorce.

There are a couple of things that bothered me about the fact that my Branch Manager is giving her employees the details about her divorce.  First, it’s really no one’s business what happens in her personal life, and second she said that he was “dealing” with her divorce.  It made her divorce sound like it was just another business deal that she was trying to close as quickly as possible.  I don’t want to say that my branch manager is a cold hearted tin (wo) man with no heart, but a divorce or a relationship break up of any kind is an emotional disconnection, it’s not a business deal. Divorce is not only a financial breakup ; it’s also a life change.

My Branch Manager is also a Financial Planner, and therefore she is looking at her divorce as a financial burden rather than as a breakdown in her relationship.  She is getting all of her account statements in order so that she can go into her divorce negotiations will all of the necessary information because she wants her divorce to be finalized as quickly as possible.  My Branch Manager has said several times that she doesn’t really have time to be dealing with her divorce because she already has a full plate of responsibility with her workload.  I couldn’t help but think that maybe if she spent more quality time on her marriage instead of always being at the office she might not currently be getting divorced.

When couples go through a divorce they usually have to separate their personal assets from their joint assets.  Joint Assets are usually considered to be any assets that were attained or accumulated during the relationship. We are required to provide all of our asset statements before we got married as well as our statements that show the current value of our assets.  If one spouse has attained or accumulated more assets than the other spouse we will be required to make a payment to our spouse.  I honestly think that this is the real reason why my Branch Manger is upset about getting divorced; she doesn’t want to have to pay support to her soon to be ex husband.

As you may remember I am not married to my boyfriend Nick.  I always tell myself that I would like to have the option of getting married someday; however after hearing my Branch Manager talk about the end of her marriage as a business deal I beginning to think that I made the right decision to remain unmarried.

If ever the relationship with my boyfriend Nick comes to an end our breakup will be as simple as one of us packing our bags and moving out.  All of the financial ties will be broken as soon as one of us returns the house key and walks out the door for the last time.

The emotional scars that remain after a breakup of a marriage or a relationship will be present for a long time after the last words are said. Eventually we will move on and hopefully we will be able to find love again. But the emotional and financial scars of a previous breakup may never fully go away.  After we have survived a breakup it may be hard to trust someone again with both our money and our heart.

If you are remarried do you manage your money differently in your second marriage?

Photo by Keoni

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