My Canuck Buck

4 cheap but great tools to help with spring cleaning

02. May 2013 · 2 comments · Categories: Home

It’s that time of year again – spring! Finally. The only thing that keeps us long suffering Canucks sane through the winter is the thought of spring. Children celebrate by going outside to play, my cat celebrates by shedding everywhere, and adults – well, we get to do spring cleaning. It’s not exactly celebrating – but it’s generally a necessary evil. Here are some great tools you can use to help you with your spring cleaning.

1. Microfibre cloths. These picks up dust and wipe away built up dirt and grease. I buy mine at the dollar store and they work really well. I use them to wipe down baseboards, clean walls, doors, etc.

2. Used or cheap toothbrushes. Don’t throw away your old manual toothbrush. If you don’t ever use one, but some cheap ones (I bought a 4 pack for 2.50). Toothbrushes are great for anywhere with caked on dirt or grime, or that are just too awkward to reach with fingers or frankly just need a good scrub! I opened our windows and was amazed how much dirt builds up in the tracks they run along.

3. Baking soda and vinegar. Combined with dish detergent or laundry soap, and warm water, these are great for getting just about anything clean. Using these plus a toothbrush I finally managed to clean up our laundry tub that looked like someone had just poured paint into it!

Have you started spring cleaning? What’s your favourite/most effective tool to use?

Spending 1.75 a day on food and drink – could you do it?

29. April 2013 · 9 comments · Categories: Food

I was reading the free paper on Friday when I read about this challenge called “Live Below the Line”. Here are the basic rules:

- From April 29th until May 3rd, you can spend no more than 1.75 a day on food and drink. This means you have only a total of 8.75 with which to buy everything you’d need for the week!
- The *full* cost of the items you consume must be included in your budget.
- You can share the cost of ingredients amongst a team – as long as no one spends more than their 8.75 budget
- You can’t use food you have on hand – unless you account for it in your budget
- You can’t accept donated food or freebies!
- You can drink tap water

I started thinking about whether I could do this – and I freely admit I’d find it pretty darned hard! I spent more than 8.75 on snacks on the way home from work on Friday! I’ve committed to lunch and dinner out tomorrow as well, so that takes me out of the running.

I know I could do instant oatmeal for the week – if I did it 2 times a day, that’d be 2.50 out of my budget. And then maybe bread and peanut butter? But unless I can find peanut butter on sale, or just get a small quantity of it, I’d go over budget! And there’d be no veggies, fruit, chocolate ,etc.!

What’s the point of it? Well, here’s a summary from their Web site:

To give a glimpse into the lives of 1.4 billion people who have no choice but to live below the line every day – and who have to make $1.75 cover a lot more than food

My free paper has indicated they will have some recipes devoted to fitting within this budget on Monday so I plan to check them out!

Do you think you could manage this? What would you eat?

Is the envelope method a bad idea?

26. April 2013 · 10 comments · Categories: Budgeting

Fans of Gail Vaz-Oxlade should be familiar with the envelope (or jar) approach. Basically, you figure out how much money you have for the week or month, and then allot it to categories such as gas, groceries, etc and put the right amount of cash into each envelope (or jar). I recently read an interesting article on Slate arguing that this was a bad idea.

The article raised some interesting points I’ll admit I hadn’t thought of:

The system isn’t flexible – if anything ever changes (for example, the price of gas), then your gas envelope may not be able to cover your costs. You can switch grades, but eventually that may not work either.
Another flexibility issue – grocery costs have gone up. Where do you cut back? If you’d rather cut back in another category (say, eating out) in order to cover your higher than expected grocery costs, can you do that?
What about if you overspend at Christmas, and you don’t have enough in your “gift/holiday” envelope to cover things? Do you then carry around credit card debt?

I think this issue here isn’t so much the envelope system itself – it’s only if you stick to it so furiously that you are actually costing yourself money or using it less wisely than you should. I think most folks would have enough sense to spend what they truly needed to, and then rejiggle their budget as necessary. It may even be that the envelope/jar system isn’t a great option in the long run – but I certainly think it’s very helpful for folks who are clueless in their spending, if Til Debt Do Us Part is any evidence!

Have you ever used the envelope system? How did it go?

A couple of nasty financial surprises this week

24. April 2013 · 6 comments · Categories: Extra costs

I got 2 nasty financial surprises this week:

1. A $25.00 over limit feeon my “low limit” Visa

2. A call from the place I bought my car from saying they’d forgotten to charge me HST!

I have a Visa I’ve had since university with a limit of 500.00 on it. I mostly use it for online things – shopping, ordering in food, making donations, etc. And in the entire time I’ve had it, I’ve never gone over the limit before now. I used a Wagjag and paid the difference with Paypal, and that put me over. Sigh. I’d always just assumed the card would be declined if I was over the limit. So – I will be calling Visa to see about getting that fee waived. And keeping a better eye on my spending!

The other surprise was much nastier – I came home to a message saying they’d forgotten to charge me HST on the used car we bought. It’s on the bill – but just not included in the total. I did read the bill and checked all the numbers on there seemed on okay when we paid for it – but I didn’t actually double-check they added up correctly (I know, I know – what kind of PF blogger am I?!). So I ran through it again and they’re right – they put down the HST, but didn’t actually charge me for it. We have a cushion, so we’re okay – but again, if I’d been paying closer attention, this wouldn’t have happened! They were very apologetic, and apparently this is the first time it’s happened in 5 years. So I’ll go over later this week to pay up – but on the up side, I can put this on my credit card, so I do get some points for it!

What’s the nastiest financial surprise you’ve ever had?

Getting the right tool for the job

23. April 2013 · 2 comments · Categories: Home, Musings, Uncategorized

The following is a guest post.

The intelligent use of tools is what distinguishes us from animals. We became self-aware and capable humans when we learned how to do things with other things - that is how to achieve something using tools. This, if anything, was the sign of human’s advanced brain power.

In 1960 Dr Jane Goodall observe two chimpanzees pick up twigs, strip them of leaves, and use them as tools to search for termites in the ground, which they then ate. It was the first time a creature other than a human had been observed using something like a tool to get something done, and was a sure sign of creative and intelligent life.

Using a tool is instinctive, natural and satisfying. Neither you nor that chimp would attempt to use a tool for something other than what it was designed for. (Cat’s note – I’m pretty sure I’ve used tools for things other than what they were designed for ) The importance of using the correct tools can’t be underestimated. It has a great impact on the quality and efficiency of your work. Quality and efficiency are, after all, the reasons that we use tools in the first place.

If you are embarking on a home renovation, make sure you go to a specialized hardware store like Sunlite Mitre 10 and find the very specific tools you need for whatever renovation task you are doing. You can’t achieve precision and exactitude without the correct tools. Imagine trying to drive a nail in with a spirit level. Unimaginable right? You need a hammer, and one with the correct weight. Don’t be a monkey, use the right tools!

Have you ever tried doing home repair or renovation without the right tools? How did it go?

Top 5 reasons budgets can fail

17. April 2013 · 5 comments · Categories: Budgeting

Are you a budget person? I’ll have to fess up that I’m not. Don’t worry – I don’t carry a balance, rack up my line of credit, or do anything like that – I just don’t budget! I gave my husband a budget for how much he can spend on CDs a month (and it’s very generous!) and he promptly ignored it. Guess we’re just not a budgeting family. . If you are a budget person, or want to be, here are some reasons to keep in mind that a budget may fail:

You’re not accurately putting down how much money you make. You have to take into account what you get paid, when you get paid it, and how much of your income is actually coming in (after CPP, EI, etc!).
Not enough details. If you really want to be sure you’re keeping on track, you’ve got to have as many categories as possible. Sure, you could do one for utilities, but it’d be better to break them out into separate categories.
Expenses not accounted for. It’s hard to account for non-regular expenses, such as property bills and insurance. You can’t use the same budget for each month because of these kinds of expenses. As well, some things will be more at certain times of year (your gift section at Christmas) and some less (less heating and cooling costs in Spring and Fall).
Cash. Unless you track everything in a book, or get and keep a receipt for everything, cash can just fly out of your hands! I know there are weeks where I go through money and I’m darned if I can tell you what I spent it on!
No plan to save. If saving is your last priority, it may never happen. I’m not saying you should put saving ahead of paying down high interest debt, but if you can set up auto-deductions for saving each month, it’s a great place to start!

Do you use a budget? If so, how well do you stick to it?

One way to stick to your finanical goals – tell everyone about them!

16. April 2013 · 5 comments · Categories: Lifestyle

Having trouble sticking to your financial goals? It can be hard to stay on track when temptation is everywhere. One way to make sure you stay on track is make yourself accountable and let people know about them.

My husband and I went on a gluten and dairy free diet for 3 months. I lost 7 pounds and he lost 20 (I know, I know, it’s not fair!). We had to tell everyone we were doing this because we constantly had to say no to things that were offered to us! It was awkward at first, but once folks got used to the idea (and heard about our weight loss progress), they were supportive and didn’t pressure us to eat things we couldn’t.

Hopefully the same thing will happen if you share your financial goals with folks. It can be very awkward to talk about money – whether you’re struggling or in pretty good shape. And you don’t have to come off as preachy or judgmental that others want to spend – you just need to explain that this is what is right for you right now!

I think the biggest thing to have on hand is an explanation. Not just “sorry, can’t go out to lunch today”, but “Actually, I’m really trying to pay off X or save up for X” so I’m going to cut out eating out for the next few months (or weeks..or years!).” This will also help you stick to your ideals!

If you have a financial goal, do you share it with others? How do you respond if someone shares theirs with you?

Eight ways to trim your tax bill

04. April 2013 · Write a comment · Categories: Taxes

It’s Canadian’s least favourite season – tax season! Yes, winter is ending, but with it comes the good and the bad – warmer days and filing your taxes. While a lot of folks end up with a refund, I don’t think there’s many out there who truly enjoy doing their taxes. Here are someideas to help you trim your tax bill. If you’ve already submitted your taxes, keep these in mind for next year!

Balance your investment income. If something is going to be highly taxed, it’s best to hold it in your RRSP (or TFSA!)
Ontario and B.C now offer credits to taxpayers who are 65 are older and make renovations to make their homes more mobile. The credit may also be claimed by qualifying relatives of any age who live with a senior.
Transfer dividend income to the lower earning spouse
Claim the family caregiver amount – you can claim this if you’re a caregiver of a dependant with a mental or physical infirmity
Carry forward student tax credits or transfer them to a spouse or parent
Disability tax credit – this has recently been expanded, and some/all of the following may be recognized: ADD, ADHD, autism, Asperger’s Syndrome, bipolar disorder, manic depression, anxiety disorders, irritable bowel syndrome, Type 1/2 diabetes, epilepsy and learning disabilities.
Splitting your pension
Deducting kid’s costs – anything from daycare to camp to music lessons!

What’s your favourite deduction? I can get money back for unreimbursed medical expenses and for my public transit use.

Advantages of starting your business right now

02. April 2013 · 4 comments · Categories: Business

The following is a guest post.

The middle of a recession might not sound like the ideal time to start a business. Economic uncertainly has never really motivated entrepreneurs to risk their money. However, perhaps somewhat surprisingly, there are many excellent reasons why starting a business in 2013 could be a great decision.

The very fact that many companies are cutting staff creates numerous opportunities for the savvy entrepreneur. This is because, at the very same time, they are also often hiring part-time contractors to replace full-time employees. This is particularly true in the fields of marketing, accounting and information technology. Providing outsourced accounting services to a struggling company, for example, could benefit both parties; the company saves on payroll expenses and the contractor gains a new client.

Another reason to start a business during a recession is that though competition is fierce during adverse economic times the number of potential competitors is reduced and it is the companies providing the best products and services that invariably survive.

Certain types of businesses are tailor-made for bad economic times. A good example being those involved in the cash loan sector. When consumers struggle they often end up requiring short term loans and the market for this type of business therefore expands rapidly. Pawn-brokers and used furniture shops are other examples of companies that usually fare well in an economic recession.

Another reason why starting a business during a recession could be a great idea is the fact that there is normally an abundant supply of employees who are realistic in their salary expectations. In many respects it becomes an employers’ market.

During challenging economic times the price of products and services are also usually more stable than during a boom period. This makes planning for the new business easier, because the cost of inputs is stable and predictable.

Before starting a business, however, the would-be business owner first has to do some homework. The first step is a detailed feasibility study; is there really a strong demand for the product or service being offered? Who are the major competitors? How much capital would be needed? How much cash would the business require during the first 6-12 months of trading?

For certain types of products it is easy to carry out basic market research. A test-marketing exercise to determine whether there is a demand for grandma’s secret-recipe cookies, for example, could go a long way to determine whether this would be a viable business opportunity.

To start a new business costs money. Entrepreneurs should use all the resources at their disposal to acquire the necessary capital at the lowest possible cost. Savings are a great source of capital, but if this is not sufficient another possibility is invoice factoring. Often, there are also government grants for business start-ups in particular industry sectors.

Once the business is up and running it is essential to try and minimise expenditure as far as possible. Some banks, for example, offer new companies free banking for the first two years.

Any budding entrepreneur should also, from the outset, keep immaculate accounting records. To become the subject of a tax investigation during the first year of operation is a nerve-wrecking experience that no new business needs to go through.

Cat’s thoughts: This is a great post – some excellent ideas in favour of starting your own business and some great ideas to keep in mind. Have you ever considered starting your own business?

Living on $100 a week

01. April 2013 · 6 comments · Categories: Lifestyle

The following is a guest post.

According to a recent Gallup poll, Americans spend $151 per week on food alone on average. As a result, trying to live on $100 per week can certainly be a challenge, but it can be accomplished. What are some steps that people can take when they want to accomplish this noble financial goal?

Walk as Much as Possible

Gas prices are still pretty high in many parts of the country, and individuals could easily spend $50-$60 per week on gas or even more. Therefore, when individuals want to save money, it is smart to walk as much as possible. Walking to mass on Sunday or walking the kids to school absolutely saves on the gas needed for these tasks. When people live close to their jobs, it is smart to walk there. Even carpooling with co-workers is a way to at least cut that gas bill in half.

Eat at Home

Simply thinking about how much it costs to eat out is a major indicator as to why budget-savvy folks should start eating at home much more. Making a cup of coffee at home costs pennies, but going out to buy a fancy cup can easily cost $2-$3. When the weekly budget is $100 and people are buying one cup of coffee every day, nearly 20 percent of the weekly budget is being taken up by this habit. In general, foods are going to cost more out than when the person makes the decision to eat at home.

Live with Parents

Living on $100 per week is almost impossible for a person who is renting or who owns a home. Therefore, when individuals are looking to save money, living with their parents or other relatives is a wise idea as long as the relatives are agreeable to the situation. In some areas of the country rent for a small apartment could be $1,000 or more. This amount is particularly true in big cities. That breaks down to $250 per week or so, which is a figure much larger than $100 per week.

Avoid Extreme Entertainment Budgets

You could certainly find individuals out there who spend hundreds and hundreds of dollars per week on going out to bars, heading to the movies, taking lavish weekend trips and other expenditures. These activities are simply not going to fit into the lifestyle of a person who is trying to spend $100 per week. How can such a person still have fun? Well, one of the ways is to save $5 each week to go to the movies and get large popcorn at the end of the month. Not only does this help individuals to save money, but it also gives them something to which to look forward.

Have Backup Funds

One of the reasons why people have so much trouble living on $100 per week is because they are afraid of what will happen if they go over that amount of money. It can certainly be jarring to not know if bills are going to get paid in the event that the limit is exceeded. Therefore, having some backup funds can help to resolve the issue. As a result, if a situation does arise where the $100 is all spent, other money will be available to cover the expenses.

Cutting Down on Bills

In order to live on only $100 per week, some of the monthly bills are going to have to be reduced. Simple changes can make a huge impact on those bills and by turning off the water when people are brushing their teeth and turning off the lights when leaving the house are two methods that can help to cut down on both water and electrical bills. Shopping the sales at the supermarket and being sure to hold on to any coupons that are found are two other methods that are really able to help with this strict budget.

Living on a tight budget is difficult for many people; however, some simply have to do this to get by and to keep on functioning in society. Even individuals who have some extra money might want to challenge themselves from time to time to see if they can live on $100 per week.

Cat’s thoughts: I don’t think I could live on 100 dollars a week! I’m trying to think back to my student days – if I just considered rent and food, I might have been able to live that cheaply – but I’m sure I didn’t!

Daniel is a journalist for the U.K based lender Payday Angels – he regularly writes about other companies; check out his Payday Express Review and other posts on our website.