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Venn Diagrams For Borrowers

They say a picture is worth a thousand words, so this week I have written up a storm, however, this one has been hanging around in my archives for a while, waiting to come out and state the obvious. I borrowed the idea from a similar diagram comparing a cat and a homeless person.

Pay Day Loans
Similarities Pay Day Loans and Loan Sharks

Anyone care to disagree with this diagram, or did I miss other services made available from both businesses.

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Simple Tip to Grow Your Wealth

Yes here is one of the best tips I can give you on the best way to Grow your Wealth.

Here are some of my favorite tips on how to grow your wealth:

Simple Message Isn't it?
Simple Message Isn’t it?

Simple isn’t it?

If you have debt you do not have wealth (financially speaking).

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Fun with Numbers Redux

A long while ago I wrote Monday Fun with Numbers, where I can now reveal that the friend who is “Mr. Arithmetic” or “Mr. Rules” was in fact Michael James.

In this ancient tome, I wrote about if someone tells you, “I just stopped paying my CPP and EI premiums” you can from that infer how much they make yearly.

My That Does Look Big
My That Does Look Big

Let’s revisit that interesting bit of Arithmetic:

  • In 2013 the CPP rate is 9.9% (note that in my original post it was only 4.6%, wow, that’s a jump) with a maximum pay out of $2,356.20 . (this is for folks that are not self-employed)
  • The Employment Insurance is deducted at 1.88% with a maximum pay out of $891.12
  • Assuming someone is paid biweekly (but you can do this for other payment methods too).

You are going to estimate a yearly income of  $X , and since this is June, let’s say your friend says, “Yes, I hit my max this week (and this week is June 16th, or the 25th week of 2013), so this is their 12th pay cheque

(( X / 25.5 ) * 4.5% ) * 12 = 2356.20

Dividing X by 25.5 is about the bi-weekly income numbers. From this equation you can do a little fun equation manipulation to get:

X = ( (2356.20/12) * 25.5) /0.045

X = $ 111,265 per annum

What if it was next pay where they maxed out

X = ( (2356.20/13) * 25.5 ) / 0.0.45

X = $ 102,706 per annum

These are rough estimates, and your mileage may vary, but still fun.

Past CPP & EI

Yes, it is a topic I write about, as it is important to me. Here are a few from the past years, to compare and contrast (hint see how much CPP has gone up).

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White ATM Machines Same as Pay Day Loans

If you are going to pay $1.50 (or more) for the privilege of using a “White” ATM, you are actually paying worse rates than you would at a Pay Day Loan place.

Don’t believe me? So if I borrow $100 from a Pay Day Loan shop, the fee for this joyful thing is about $21 that has to be paid in 14 days (elapsed not business days). Just typing that makes my stomach turn, but I did actually look it up on one of the handy on-line pay-day loan sites (yes, that is sarcasm).

ATM Machine

White ATM Machine
Image courtesy of cooldesign, at FreeDigitalPhotos.net

If over the month  you take $100 out $20 at a time from these White Shylocks (I use that term as a derogatory term for a money-lender and not in any other way), you’d pay $7.50 in fees (oh and your bank might nail you for more fees), so that actually looks much less than the $21 the Money Vampires want to charge you, however, indulge me on this.

  • In strict mathematical terms, given the $1.50 service fee is applied the second you get it, your interest rate is really effectively infinite (if the Time elapsed is Zero, math goes berserk).
  • Let’s assume you are paying $1.50 because you are too lazy to find an actual bank (your bank), and there was most likely a bank within 1 hour of you, so you are paying effectively $1.50 for an hour (or 7.5% interest for an hour). That translates to about  657 times your $20 withdrawal or 65700% ?

What is This?

Yes, this is more fun with numbers, but think about it, next time you use a White ATM machine.

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My Father’s World

I was very lucky to have a Father, and a very hard-working one, so when I sing this hymn at Church:


This is my Father’s world,
I rest me in the thought
Of rocks and trees, of skies and seas—
His hand the wonders wrought. —Babcock

I smile to myself thinking that while yes the Hymn speaks of God, I truly do live in my own Father’s world. If it weren’t for my Father’s examples of how to live and his hard work (yes and my Mother’s as well, don’t want to get any hate mail on that) I would not have the relatively easy life that I live.

Many of my friends have fractured relationships with their Fathers for many reasons, but it is on Father’s Day that I am thankful for my Father and that I had a good relationship with him. Was my Dad perfect? Far from it (in fact if he were alive, he would agree), but most Fathers do the best they can, and that is all we can ask from them.

Happy Father’s Day

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