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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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Friday Round Up: A Savings Psycho & The New Chrysler

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Happy Friday DINKS! I hope that you all had a nice week, and now it’s time to get ready for our weekends.  This post is about saving for our goals and saving for no reason at all.  I have previously mentioned that I don’t believe in saving for no reason; however my actions seem to speak louder than my words. 

I guess we are always indirectly saving for something, since many of us will use our savings when we go on vacation or buy new furniture.  I always saved for a specific goal.  I always saved 10% of my savings into my Rainy Day Savings Account until I reached the equivalent of 3 months gross income and then I stopped saving.

My income recently increased significantly from my previous year’s income and I have been depositing the difference into a high interest savings account.  The account has no fees as long as I do all of my transactions online.  I didn’t want to spend my extra income because my previous income was enough to live on with my monthly budget.  So, for the last few months I have been saving the difference in my new increased income while continuing to live on my old budget.

Now I need a new television and I can’t bring myself to dip into my savings.  It’s totally weird because it is extra money that I have saved with no intended purpose.  However, now that it is saved I can’t bring myself to spend it.  I guess you can say that I have become a savings psycho.

Some people’s savings goal may be to buy a new car.  When I purchased my Honda Civic in 2007 I based my impulsive decision on the recommendations of family and friends.  If I were to buy a car today it would definitely consider buying the new Chrysler.  This decision is purely based on the current marketing campaign. 

I think that it is worth mentioning that the new Chrysler commercials are excellent, they focus on the elegance of the Chrysler cars as well as their design and the fact that they are Proud to be American.  The commercials feature the Detroit born rapper Eminem along with his hit song from the movie 8 Mile.  The commercials really focus on the fact that Chrysler is an American company and the cars are Made in America.

Here are some posts from around the web that discuss the savings strategies and goals of our financial friends:

  • Blonde & Balanced is saving for her wedding and the purchase of her first home.  While she is still 2 months away from the wedding and 8 months from starting to shop for her first home, she is currently on budget.
  • Clever Dude discusses the various ways to save money in his post Saving Money versus Avoiding Spending.   Just because we don’t spend doesn’t mean that we are saving!
  • Financial Samurai talks about his younger days of expensive nights out on the town.  Now he tells us how to have a good time on a budget in his post The Clubber’s Guide To Saving Money and Having a Good Time.

What to Watch for in the Market

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stock market, stock market tips, investment tips

As of April 1, 2011 I have happy to say that my small retirement savings account continues to grow. I am a balanced investor which means that I don’t like to take too much risk, but I also want my money to grow over the long term.  I am currently 30 years old, and I have at least another 25 years until I retire.  Therefore, I am not too worried about short term fluctuations in the value of my retirement savings accounts.

I started to invest in this particular retirement savings account in July 2009, and I am happy to report that my retirement savings account has been steadily growing over the last year and a half. However, I have a feeling that this is about to change.

In this retirement savings account I invest only in Mutual Funds.  I do hold some individual stocks in Disney and other large corporations in another account, but in this account I hold only Mutual Funds. The original book value of my retirement savings account was $13,560.09.  The book value is the total value originally invested, as well as any reinvested distributions. I have made some changes to my Mutual Funds to include a more aggressive asset allocation.

Here is the current Breakdown of my Retirement Savings Account:

Fund Name                                         Average Unit Cost                  Current Unit Price

Canadian Index Fund                         $24.90                                     $26.32

Canadian Bond Index Fund                $11.51                                     $11.39

Emerging Markets Bond Fund           $9.34                                       $8.31

Canadian Equity Income Fund           $22.58                                     $23.57

The total current market value is $15,393.30.  This is an increase of $1833.21 or 13.52%.  A normal balanced investor or mutual fund should earn an annual rate of return of 6-8%.  What does this mean? It means that my overall retirement savings account performance is average and right on target.

What to Watch for in the Market Over the Next Few Months

As the market slowly recovers over the next few months until the end of the year we should see interest rates start to rise.  This means that the value of fixed income instruments such as bonds will decline.  The current value of my Canadian Bond Index Fund is less than I paid for it; therefore I will not sell it.

I am prepared for it to drop in value over the course of the year.  The good thing about investing bonds indirectly via a Mutual Fund as opposed to buying a bond directly on the market is that the Mutual Fund Manager buys several different bonds with different maturity dates and interest rates.  I am not locked into only one fixed bond.

With the current crises around the world in Haiti, Chile, Northern Africa, the Middle East, and Japan it is no surprise that the Emerging Markets Bond Fund is currently also trading at a loss.  However, it is predicted that Emerging Markets will really start to emerge in the world economy throughout 2011.  This is for reasons such as exporting of untapped resources, as well as manufacturing and production companies moving to countries where labour is cheaper to cut costs.

India is an emerging country to watch because of all the customer service business they are attracting from North American companies.  India has the largest English speaking workforce outside of North America.  Over the next few years Brazil will host both the Olympics and the World Cup of Soccer.  This is guaranteed to help Brazil’s economy emerge.

Photo by Light Speed

Are We Being Watched by Our Bank?

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bank advice, financial transactions, financial institution

There are several different types of transactions that are considered to be high risk by most Financial Institutions.  These transactions include regular day to day transactions that many of us may perform several times throughout the year.  Although our transactions may be approved, we have to always wonder what is going on behind the scenes and who is really watching our bank accounts.

Deposit Transactions over $10,000 are reported to the Federal Government.  This is a requirement by law, and it is non negotiable.  Since this is public information, most criminals keep their deposits under $10,000, if they are smart.  Therefore, most large deposit transactions are legit. As clients we may be required to sign an affidavit stating where the money came from and how we got it.  This removes our Financial Institution from any liability in case the money was obtained from illegal sources.

I had a client who declared he was an “immigration officer” each time he made a large deposit.  He signed an affidavit that the money was from his legal costs for helping people immigrate to the country.  However, he was known throughout the neighbourhood as the go to guy who could help people enter the country illegally with forged immigration papers…but that’s just a rumour.

Wire Transfers to Overseas Destinations.  All wire transfers are monitored by our financial institutions as well as other financial agencies.  It is very rare that our local Financial Institution can send money directly to a bank branch overseas.  Most wire transfers are sent via a regulatory bank in New York or Switzerland.

When we send money to our families or friends overseas, we can rest assure that our money is being watched by our bank.  If our wire transfer is over $10,000 we will have to explain the source of the money, not the financial institution where it is coming from because they have that information, but how we obtained the money for the wire transfer.

People don’t like it when bank employees ask too many questions about the destination of their money.  Whether the money is legally earned or illegally obtained customers don’t like the bank to know their business.  People often feel that they shouldn’t have to explain where their money came from because the bank should be happy to have their business.

Cash Advances on our Credit Cards.  Next time you go to the ATM to take a cash advance from your credit card, think about who is watching your transaction; and I am not referring to the security camera at the ATM.  Cash Advances are monitored in several different ways by our Financial Institution.  The way that we use our credit card is kept on file by our financial institution, as well as reported to the credit bureau.  If we often use our credit card for cash advances instead of retail purchases, it can work against us the next time we apply for credit.

Our Mortgage Down Payment.  For those of us who have bought a house, did the mortgage representative ask you the source of funds for your mortgage payment?  The mortgage representative has to declare the source of your mortgage down payment to the credit center.  Whether we saved our down payment or it was gifted to us, is taken into consideration when the bank chooses whether or not to approve our mortgage.

Who will be watching your next financial transaction?

Photo by Mike Kline

Who Should Pay The Bill?

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paying the bill, date night tips, date night advice

All DINKS have two things in common, we all earn an income and we are all in a relationship.  What we don’t all share is how we spend our earned income.  Should our boyfriend or husband pay for the bill just because he is the man in the relationship?  If the practice of splitting the bill and going Dutch is old school, and chivalry is dead, who should pay the bill?

I have a friend who has never paid for anything in her relationship, not even coffee. She feels that as the female in the relationship she doesn’t have to pay for anything. After 3 years, her boyfriend recently sat her down and told her that he wasn’t an unlimited ATM.  She would have to start paying for things if she wanted to continue being his girlfriend. She has recently started paying for their dates, but only the cheap ones.

She claims to have expensive taste, but only when it is someone else’s money that is paying the bill.  She has never really learned the value of a dollar because she has always been taken care of.  She currently lives in a condo that is paid for by her parents.  Although she does work, she would never spend her own money on the finer things in life.  “That’s why I have a boyfriend” She says.  This is a prime example of how installing good money values in our children is so important; because a spoiled child grows up to be a high maintenance gold digger.

I have a male co-worker who feels that he should pay for everything in his new (1 year) relationship because he is the man.  He definitely doesn’t want to pay for everything such as weekly groceries, nightly couples outings, and their vacations.  They split their monthly rent and they split their monthly bills, but all other expenses are at his cost…because he is the man.  My co-worker feels that his new girlfriend will break up with him if he doesn’t pay for their extra couples expenses.  My co-worker doesn’t shower his girlfriend with gifts the same way that my friend demands them from her boyfriend, but he does always offer to pay the bill.

I told my co-worker that the first few dates set the standard for the rest of the relationship. If you spoil your girlfriend on the first few dates, she will always expect to have everything handed to her when she becomes your wife.  My friend told me that she would never go on a second date with a guy who made her pay the bill on the first date.  I am not saying that we, as women, should pay for the first date; I am simply saying that we shouldn’t expect to be showered with expensive gifts.

I explained to both my friend and my co-worker that my boyfriend Nick and I have a different financial mentality. Since we have been together a long time and according to Nick chivalry is dead, we split our monthly expenses right down the middle.  However, our extra spending and personal entertainment is split differently.  If we go out for dinner for my friend’s birthday then I will pay the bill for Nick and I to eat.  If we are going out to see a movie that he wants to see (such as the upcoming Captain America, Green Lantern, or Thor) he will buy my movie ticket.

(Photo by David Thibault)

People With Kids Are Broke!?!

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people with kids, broke, parents

baby bagThis past week my boss told me that he is about to have another child.  After this child is born he will have 3 children, all under the age of 6.

I couldn’t help but think that his life is my biggest nightmare. I am only 2 years younger than him and I can’t imagine having to feed, clothe, take care of and provide shelter for 3 other people.  Maybe I am selfish, maybe I am a coward, or maybe I just don’t want to have children because of the financial cost.

I went on a coffee break with another woman in my office who is also my age; she has a 3 year old daughter named Mandy.  I offered to pay for her coffee, which I feel was a nice gesture on my part. However, my reasoning was less than polite. While offering to pay for my co-workers coffee I said “I can pay for your coffee because I don’t have a mortgage on a house in the suburbs and a child to feed.” I definitely did not mean to offend her, and I don’t think that I did.  But for some reason, I can’t stop thinking about my comment and her reaction.  She replied “Just because I have a kid doesn’t mean that I am poor.”

I started thinking about her reply and why I always assume that people with kids are broke.  I guess it is because people who have children have all kinds of additional expenses that we as DINKS do not have.  DINKS don’t pay for ballet classes, we don’t have to buy sports equipment, and we don’t have to save for college tuition.

When I reflect on my childhood I still don’t quite understand how my parents could afford to have two young children when they were still so young themselves.  My sister Tara Marie and I were not deprived children by any means.  I grew up in a 4 bedroom 2 bathroom house with a pool and a big back yard. We had 2 cars, 2 kids, and a dog named Sasha.  Tara Marie and I are both University educated.

Every year we took at least one family vacation, and we always had every new toy on the market.  We actually had a toy room that was full of Easy Bake Ovens, Books, Play-Dough, and a Barbie Dream House.  Both Tara Marie and I were in Girl Guides, and every year we went to Summer Camp.  Both of my parents worked, but I can’t imagine how they could afford all of that while each of them was earning $40,000 to $50,000 per year.

DINKS don’t have kids, and we aren’t budgeting for, or planning to have children.  As a DINK I budget to spend some of my money on myself, and I plan to save the rest.  I don’t even want to think about the cost of having and raising a child.  If you got pregnant, and were expecting an unplanned child what would you do?

Since I turned 30 last October, I have been thinking about having a child.  As mentioned several times before, I don’t see myself as a mother but I don’t want to regret not having a child later in life.  If by some miracle I did get pregnant I am not sure what I would do.  On one hand, I would have to think that a force stronger than Nick and I wanted us to have a child.  But on the other hand, I wouldn’t want to raise an unwanted child.

(Photo by Snaptotes)

The Finances of Facebook

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facebook, finances of facebook, facebook beginnings

It is said that Mark Zuckerberg stole the idea for Facebook from some other college kids.  The exact same thing was said about Bill Gates.  It is rumoured that Bill Gates stole the idea for Windows from his roommate in college.

I am not sure what the big deal is if someone develops an already existing idea. Besides, there is no patent, trademark, or copyright; at that point it’s only an idea.  When we are starting a new business it is said that we shouldn’t try to reinvent the wheel.  We should develop a smart and simple idea that can supply the need to an existing demand.

Various Facebooks already existed for several universities and colleges throughout the US. It was a very popular method of communication that students used to keep their friends up to date on their daily activities.  Mark Zuckerberg took that existing idea and developed it into a universal Facebook that is not limited to only college students at one educational institution.

The success of Facebook is not a secret, it’s actually very simple. We made Facebook a success, us, the users.  When we think about what made Facebook so successful all we have to do is ask ourselves… Why do I love Facebook?

Who do I communicate with on Facebook? Some users reconnect old friends and some people use Facebook to stay connected with their current friends. Other people use Facebook purely for business reasons.  They find supplementary businesses to complement their service.

What do I post on Facebook? Think about your last status update, the last link you posted, and the last picture you uploaded…was is personal or related to business? Keep in mind that employers may no longer check references, but they will search for potential employees on Facebook.  People have also been known to get fired over information that they posted on Facebook.

When do I use Facebook? Texting and calling friends is becoming a communication method of the past.  Now people “Facebook” their friends to keep in touch, ask questions, and make plans. Facebook and Facebooking is now a common verb in our everyday language.

Where do you connect to Facebook? You may check it in the morning before work, you may log in during the evening after dinner, or you may be connected to it all day via your smart phone.

Why do I Love Facebook? Do you love Facebook because you can keep in touch with friends, because you can use it as a means to network your business skills, or just because everyone else is using it?

How many times a day do you log into Facebook? Do you log into Facebook once a day to get updates, or are you addicted to it and log in every single chance you get throughout the day?

Here is a breakdown of the Finances of Facebook:

  • Facebook is currently worth approximately $50 billion dollars.  This is more than Yahoo! and eBay.
  • The founder of Facebook, Mark Zuckerberg, is currently worth over $4 billion.
  • The movie The Social Network is based on the story of Facebook.  It earned over $45 million at the box office.
  • Facebook is a privately traded company; therefore we cannot buy stock on the open market.  Shares of Facebook are currently only offered to employees

Would you buy stock in Facebook if it became a publicly traded company?

Do you share everything in your relationship?

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relationship tips, couples advice, couples tips


“Sure, you’re sharing a life, but that doesn’t mean you need to share everything.”

As DINKS we have merged our own lives with our spouse’s lives.  This includes personal belongings, individual views, and families.  When we are in a couple my time becomes our time, and my ideas become our reality; does that mean that my money has to become our money?

I have to be honest that I don’t always share all of my own personal money with my boyfriend Nick. Sometimes I eat out and I don’t offer to bring him any food, sometimes I go out with my friends and he says home, and sometimes I really feel guilty about it.  But then the financial planner inside of me kicks in, and I think to myself “Hey, it’s my money, we aren’t married, and we don’t have to share everything.”

The perfect DINKS equation is Relationship + Money – Kids = DINKS.  In our perfect relationships where do total honesty and open communication fit into that perfect DINKS equation?

According to MSN when we merge ourselves into a marriage, we don’t necessarily have to merge every other aspect of our lives.  There are some aspects of our (individual) personal lives that should be kept out of our (joint) relationships.

Here are some things that we should keep apart so that we can keep our relationship together:

Holidays. With broken families and merging families, the holidays can be very complicated times.  Sometimes it is just easier to go our separate ways during the holidays to avoid potential complications in our relationships.  This is definitely a rule in my relationship, I travel home to my family during the holidays and my boyfriend Nick stays alone at our home.  I can’t say that I blame him because my family can definitely be a handful.  With my Step Mothers recent unpleasantness and violent behaviour I am happy to say that I no longer have to deal with my family during the holidays. Since October I have spent the holidays at home with Nick.

Money. We should share expenses but keep our credit cards and bank accounts separate.  We can share the costs of living without merging our money.  Each person in the relationship pays their share of the monthly bills, and all other money matters are better left unmerged.

Vacations. We may be the perfect couple, but this doesn’t mean that we share the same idea about the perfect vacation.  It is ok to travel separately and still be in a happy couple.

Sleeping Arrangements. My boyfriend Nick and I do not share the same comforter on our bed.  We have tried several times over the last 10 years to sleep under the same comforter, but it just never works out.  We have decided to go our separate ways with our individual comforters so that we can still sleep in the same bed.  I have a friend who lives with her boyfriend and she sleeps in a completely separate bedroom because their schedules are total opposite.

Your Dream Job. MSN says that if we are in a serious relationship we should take our dream job in another city or state, and our relationship will survive the long distance.  I have to say that I don’t agree with this point.  If my boyfriend was offered a job in another city or state I would either make the choice to relocate with him, or end the relationship.  Long distance is not my idea of a relationship…unless it’s temporary and he is eventually coming back.

Photo by Craig Bern

Have you ever had a Good Idea and a Dream?

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good idea, good dream , achieving your dream

 

These mega entrepreneurs started their dreams with a small idea.  Every day we hustle to try and find a way to make more money and improve our lives.  “It’s the American Dream” to make millions of dollars from pocket change.

Some people say that hard work is the key to building a business.  Some people say that having the financial means is the foundation of growing a good idea into a successful business.  Some other people say that personal connections and knowing the right people is the key to achieving success in business.

As a former student of economics I believe that supplying a service that is in demand will lead directly to success. However, along the golden path to success we need marketing, advertising, and definitely a lot of networking to publicize our small idea into a big business.

MSN Money recently released an article titled “The humble beginnings of CEO big shots”, the small business roots of today’s top businesspeople. Here are the stories of millionaires who build their small good idea into a massive empire:

Jimmy Wales is the co-founder of Wikipedia.  They say that the 3rd time is a charm, Jimmy launched (and closed) another website before he founded Nupedia which became Wikipedia in 2001.  Wikipedia now has over 350 million readers and is offered in almost 280 languages.

Sean Parker co-founded the music download site Napster at the age of 19. He was also a key player in the creation and operation of Face Book.  Sean knows better than anyone how quickly our small ideas can grow into big adventures, and how quickly our dreams can become a nightmare.  At 31 Sean parker now works for a West Coast venture capital firm.

Michael Bloomberg is best known as the mayor of New York City. What some people don’t know is that Bloomberg was a brilliant business man before he was mayor of NYC.  Michael Bloomberg has been an entrepreneur for over 30 years, he created a data service company for investment firms and his client list includes Merrill Lynch.  Bloomberg LP is currently one of the largest financial data firms in the world.

Michael Dell.  Need I say more? It is important to note that Michael Dell was a pre medical student who starting repairing computers out of his university dorm room.  Dell later started manufacturing computers instead of just repairing them.  Michael Dell is now worth over $14 billion dollars.

Robert Herjavec was a poor Croatian born boy who grew up to become a major IT tycoon. Herjavec is the founder of BRAK systems, a security software program which was sold to AT&T for $100 million.  He also built up Ramp Networks and sold it to Nokia for $225 million.  A good business sense can go a long way.  All we need is a dream and motivation.

Paul Haggis is a young Canadian man who followed his dreams to Los Angeles. He left his life in construction behind for the glitz and glamour of screenwriting in Hollywood.  Paul Haggis wrote the screenplays for the movies Million Dollar Baby and Crash.

Kevin Plan is the Founder and CEO of Under Armour.  Do you want to know how he received the money to start the sportswear company? He created a business in college in which he delivered flowers and cards to lovebirds on Valentine’s Day.

Photo By JeffK

Friday Roundup: Food, Recipes & Being Frugal.

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Happy Friday DINKS. It’s Friday and time to make plans for the weekend.  How will you spend your Saturday and Sunday? Or, should I ask how will you spend your money this Saturday and Sunday?  I love to spend my money on takeout food and eating out in restaurants.  While sticking with my new budget, I will try and spend a lot less money on eating out.  Last year I spent an excessive amount of money on eating out, actually, I spent $4668 on food to be exact.

I have recently been researching ways that other personal finance bloggers are saving money on the cost of food. It seems that the major expense that people cut out when creating a new budget is the expense of eating out, ordering in, and expensive dining.

This year I gave up eating donuts for lent.  For our non Catholic friends, lent is the 40 day period leading up to Easter when we have to give up something or make a sacrifice.  My lack of donuts has saved me $3 a day at least 3 times a week.  I developed a crazy addiction to munchkins, the little donut balls.  Over the next 40 days I will save at least $120.  Hopefully in 40 days I will no longer crave donuts.  This will save me over $468 per year.

Here are some posts from around the web about the relation between personal finance and healthy eating, as well as cutting back on the costs of food in our budget.

  • Amber from Blonde and Balanced discusses how she cut out caffeine in her post Living Without Caffeine. If we spend $5 on Starbucks every work day that adds up to $25 a week, and $1300 per year.
  • Green Panda Tree House discusses ways to be healthy both physically and financially in their post Tips to Becoming Financially Healthy.
  • Brooklyn Bitches on a Budget gives us 10 different recipes to recycle and reuse our left over rice in their post Gourmet Edition: Leftover Rice. I recommend you check it out. Their delicious recipes include Easy rice balls, Chicken Soup with Rice, Rice pudding, and Risotto cakes.

Photo by Make Less Noise

Fixed Income Investments for Low Risk Investors

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investment options, stock market tips, investment options


A great alternative to traditional low risk fixed income investments such as Treasury Bills, Bankers Acceptances, Bonds, and Term Deposits are Mortgage Backed Securities and Real Estate Income Trusts.  They offer a greater potential rate of return while taking only a little bit more risk.

What is a Mortgage Backed Security?

Mortgage Backed Securities (MBS) are a type of fixed income investment that are secured (or backed) by one specific mortgage such as a large commercial property mortgage, or a group of residential mortgages offered by the same financial institution.  The bigger the mortgage and the higher the interest rate on that mortgage, the higher potential payout from the Mortgage Backed Security.

Mortgage Backed Securities are similar to bonds because they can pay out regular payments, usually on a quarterly basis. Investopedia describes Investors of Mortgage Backed Securities as the person who is “lending money to a home buyer or business.”  As investors we give our money to the bank and in exchange, the bank gives us an interest rate of return.   The bank then lends out our investment money in the form of a mortgage, where they collect an interest rate from the mortgage borrower.

Mortgage Backed Securities eliminate the need for the bank to have capital because the bank is not lending out their own money.  They lend out borrowed money from investors.  Mortgage Backed Securities can be purchased directly on the market or indirectly through a Mutual Fund.

What is a Real Estate Investment Trust?

Real Estate Investment Trusts (REITs) differ from Mortgage Backed Securities because they invest both in Mortgages as well as directly in a Property.  There are three types of Real Estate Investment Trusts. Equity REITs invest directly in properties, Mortgage REITs invest only in mortgages, and Hybrid REITs invest in both properties as well as mortgages. An example of the type of property that a Real Estate Investment Trust would invest in is a shopping mall or a luxury apartment building.  The revenue paid out to investors comes from the rent that tenants pay.

Similar to Mortgage Backed Securities Real Estate Investment Trusts can be purchased directly on the market or through a Mutual Fund.

When choosing the type of Mortgage Backed Security or Real Estate Investment Trust it is important to know the duration of the investments, as well as the interest rate, and issuing company.  If we are planning to hold the Mutual Fund over the long term we may look for a REIT or MBS that invests in 30 year mortgages.  However, the interest rate is a crucial factor in our rate of return. We don’t want to have a long term mortgage that is locked into a low interest rate.

Most major Mutual Fund companies such as Fidelity and Franklin Templeton offer Real Estate and Mortgage Mutual Funds.

(Photo By ExMagician)

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