Canadian Personal Finance Blog

Archive for April, 2005

Fellow bloggers, I found this HUNGER icon on my Church’s Web Site and it seems legit (please comment if you have heard otherwise), so PLEASE click on it, daily evidently we get people food doing that? Sounds like a scam to me, but if it works, I am ok with that too.

Thanks for the comments folks, this weekend is a little busy for me (coaching girls basketball can do that to you). Enjoy your weekend, and hopefully I’ll have some great new IDEAS on Monday .

c8j

I haven’t had any great revelations this week in the area of Finances (other than the fact that I need to make more money or spend less (which is a good credo)), but let’s just run down a few things I have learned.

• The cost of babies keeps going up (thanks to a failed vasectomy (no I am not going to sue anyone for this) we are blessed with a new son).
• Diapers are expensive
• Formula is expensive
• Everything you buy for a baby has to play Brahm’s lullaby (including Diapers and Formula), and if you are like the other new parents I see it has to be from Eddie Bauer! (When you are 44, you get to be a curmudgeon of a Dad).
• Cars are expensive things to run, especially when they are 11 years old (my ‘94 Accord still runs like a tank, but it is starting to “break” in places).
• Coil springs are expensive, as are tires (even “cheap” tires)
• Warranties for new cars mean you don’t have as HUGE repair bills while you are still paying off your car (yes I will have a RANT about Leasing vs. Buying some time soon).
• Blogging is a lot of fun. I have joined a few Blog reading “teams” and I have seen some very creative folks out there, so keep up the good work!
• Yahoo! Messenger’s LAUNCHcast service is great
• The Markets are not being very kind to Nortel for their
  purchase of PEC this week

It’s Pay Day, luckily, so my creditors are much happier that they get paid.

Here is a very good question that most mutual Fund Salesman Financial Planners don’t always talk about, is it better to Invest (usually means by Mutual Funds for your RRSP) or pay down my debt?

Let’s do some math (can you tell I have a math degree)? Let’s give ourselves $500.00 that we FOUND (yeh, I wish I could find $500 too). Let’s look at what happens in our scenarios.

Invest in a Good Mutual Fund

Yes, I am not going to tell you what this is (but look at the Management Charges FIRST and we’ll talk about that another time as well), assume this mythical fund can pay 7.5% annual growth year over year (again, I have no idea if such a fund exists, I am only doing this for examples sake).

After 10 years our $500.00 will be worth 500 * (1.075)^9 = $958 or so (approximately) which means you made about $458 profit, good for you!

That’s not bad, especially if you have put it in an RRSP, so you have saved tax money too.

Put money on your Credit Card

Assuming you have a nice credit card company and they are only gouging you for say 14%, given for some bizarre reason you might carry this balance for 10 years (and if you have done this, let me kick you in the butt now.

$500 off your balance would save you 500*(1.14)^9 = $1625.00 or so, which means you have saved $1125.00 ! WOW!

KARUMBA!!!! Hey, I think you should put that money on your credit card, don’t you think?

Dear Reader,

So as you can tell I am a mercenary bastard and will do most anything to make an extra buck or two (witness the ads plastered all over this BLOG if you are unsure of this), so let’s ask ourselves how we can put a few extra bucks in our pockets (and review a few of my initial rants):

1. Stop paying those ridiculously high banking charges (remember?)
2. Use some coupons when you shop (hey a couple of extra bucks is nothing to sneeze at)
3. Get a Credit Card that PAYS YOU to use it. PC Financial has a nice one (if you like shopping at Loblaws that is), and gives you cash. CIBC has one that pays cash as well. For heaven’s sake don’t PAY to get money back or points (like that CIBC Aeroplan Gold, only if you are a traveling salesman would that work).
4. Join Petropoints or whatever other “I give you points for shopping here” program you can find (as long as it is free). I also am a member of the CAA, so I get money back for buying gas at Sunoco
5. Stop buying those bloody “Lattes” will ya? What’s wrong with the free coffee at work!

OK, so that is the rant for the day, put YOUR money in YOUR pockets, I BEG YOU!

Seems I am on a bit of a “bender” when it comes to the Canadian tax system lately, but I have been paying taxes, employment insurance and Canada Pension Plan payments now for more than 20 years, and I don’t get much back from this. Now, I am not wishing to dip into the Employment Insurance payments I have made, but I would hope that when (or if) I retire there is a Canada Pension Plan. A really good book that discuss the Pension system is Free Parking (2nd Edition) by Alan Dickson, well worth having a read (because it is SO contrary to ALL of the other financial analysts out there). Even if you don’t agree with the contrary positions to your opinions, it is good to know what their argument is (and I am not sure that I disagree with Mr. Dickson, either).

Ottawa is abuzz with pre-Election fever, so remember, if you want the system to change NOW is your chance. Call your Member of Parliament, better still, call his or her opponent and put forth YOUR opinions. BE HEARD!!!

You can simply forward my blogs to them via e-mail (the little envelope icon at the bottom of each entry means you can e-mail it to someone in specific, so that COULD be your MP!). I don’t mind being quoted, if it changes the system.
If you don’t do something now, you don’t get to complain later!