Happy Saturday, everyone!
Jay-Z is on to something there – make a point to capitalize on your downtime this weekend! (Photo Credit: tickld.com)
I hope you all had productive and fulfilling work weeks – I’m wrapping mine up with this blog post, some number crunching, and some data entry before I hit the gym with my fiancé for back and shoulder day! I had a super busy week here at the office; however, I feel pretty darn good about how much work I got done! What are your plans for the weekend? Is anyone doing anything exciting on this rainy island afternoon? Tell me all about it in the comment section below – I love to read your thoughts.
However, I digress. It’s Saturday again, which makes it the perfect time for another round of Saturday’s Saying! Today’s quote comes from an unknown source:
Photo Credit: earlymorningoats.wordpress.com
What I love the most about this quote is that it is pertinent to all areas of our lives – today, I’d like to discuss a couple of my personal favourite applications of this wise little saying in my day to day life.
1. Debt
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I’ve written pretty extensively about my own financial failures, as well as the steps I’ve been taking to correct them and the progress I’ve made since making a plan and sticking to it. Well, it’s been almost a month since I wrote about getting back in the credit game, and while it feels pretty awesome to be working on rebuilding my credit, I still have a few (rather large) bills hanging over my head to deal with before I can consider myself truly “free” financially. Those bills include paying my fiancé back for having footed the bill for my taxes (another kind reminder to not be like me, kids. It’s awfully pricey to have 4 years of back taxes filed by a tax accountant), plus I owe the CRA a small amount for the 2012 tax year that I need to pay back before they will release my refund cheques, and finally, I am anticipating another rather large bill when the remainder of my stuff from Alberta gets shipped to me in the next couple of weeks. Long story short, for the next month or two, every dollar I make has pretty much been pre-accounted for.
This is both a great relief and a great stressor – anyone who has ever gone through the process of clawing their way out of debt knows what I mean.
On the downside, I have a few more weeks left of feeling strapped. It’s not an easy thing to contend with, getting paid and seeing all (okay, that’s hyperbolic, but most is fair) of your paycheque go towards bills/debts. Trust me, I’d much rather go and buy shoes than pay the CRA back for an error an old employer made in regards to my T4; however, that wouldn’t really do me any good in the long run.
On the upside, the light at the end of the proverbial tunnel (that is, debt) grows brighter and nearer with each passing pay period that I stick to my stringent budget. In the next 2 weeks, I will have taken yet another large bite out of the debt I have owed to my fiancé, as well as having the CRA paid off in full. I’ll also be able to pay my credit card bill in full, and have a few dollars left over for my fiancé’s birthday. In another 2 weeks, I’ll have paid my fiancé back exactly half of the sum total which I owe him. By the end of April, I should have all of my debts paid off. In full. I can’t even begin to tell you all how incredible that feels.
So, my present self is working really, really hard. My present self is making sacrifices and making progress. And my future self? Soon to be very, very grateful that I took the initiative to fix the problem when I did.
2. Savings
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Savings are something I believe in – very, very strongly. Now, I’ve not been a shining example of this as of late; however, I do have a humble little savings account that I try my best to contribute to (even if it’s $10) every single payday. When I get my tax returns and when my debts are all paid, I’d like to shift a large portion of the money I had been using to repay my arrears with directly into a high interest TFSA (tax free savings account) – that is a small thing I can do now that I will undoubtedly thank myself for in the future.
There are all kinds of excellent options when it comes to ways to invest your savings in order to get the best possible return on investment (ROI in finance speak). My first suggestion (especially for those who are new to the world of investments) is to find a financial advisor and arrange a sit down with them to discuss your situation. There are also plenty of awesome resources online – I recommend giving this a read if you are considering investing your hard earned cash! I am a fan of GICs and government bonds; however, I’d like to explore the world of mutual funds and stocks when I have a little more capital invested in my nest egg fund. I also aim to have at least 3 months worth of salary saved up in an “emergency fund.” Should anything ever happen to me and I require time off of work (or alternately, my fiancé), at least there is peace of mind in knowing that we will not have to go without the basics. Granted, that isn’t the case for my savings account as of this very moment; however, it is a goal that I am aiming to fulfil by the time 2015 rolls around. Today I go without a few things I want but don’t need, so that in the future, I will be able to afford myself financial security regardless of the invariable wrenches that sometimes find their way into even the best conceived of plans.
3. Spoil Yourself (Within Your Means)
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Alright, so with all the re-paying and the saving and the day-to-day bills, it’s easy to get stressed out pretty quickly. That said, I firmly believe that amidst all the hard work (and inevitable anxiety) that goes into fixing financial messiness, it is important to find ways to spoil oneself in the interim. For me, this usually breaks down as such:
First and foremost is keeping my body as healthy as I can. Eating right and exercising are the keystones of keeping myself in a positive and productive mental state. As far as eating right on a budget goes, I have a secret to tell you: it’s so much easier than you think it is. The keys are to a) buy non perishables in bulk, b) prepare your own food (we like to make a week’s worth of breakfast and lunch to take with us to work in our household), and c) buy what is in season – prices on all sorts of food can fluctuate like crazy depending where you live (for example, tomatoes in Calgary during the dead of the winter can be as much as $1.50 per tomato; whereas frozen vegetable blends usually go on sale during that time of the year). Shop smart and reap the benefits!
With regard to preparing a week’s worth of food, it seems daunting at first; however, once you get used to it, it is hard to turn back. I usually take Mondays (my Sunday) to do my food preparation. My standby meals? Baked oatmeal or a large frittata for breakfast (both can be made in a batch large enough to serve 2 hungry adults for a work week for under $5), tuna salad, rice and beans, or hardboiled eggs and roasted vegetables for lunch. If anyone is interested in those recipes, I’d be more than happy to share (just ask me below in the comments section). There is also an unreal wealth of resources online – I recommend starting with this, and this, and this – but a quick Google search will help you find literally thousands of other ideas.
Equally important is exercise – not just for the obvious physical benefit, but for the stress relief that comes along with the endorphin rush you get after a good old sweat-fest. If you’re looking for a gym, try to find one that will suit your needs without breaking the bank. My fiancé and I have been lucky enough to find an awesome gym right across the street from the office that costs us a mere $20/month each. If there aren’t any gyms that suit your budget, I’d recommend first taking a look at municipal recreation centres and checking their prices out – their monthly passes are usually rather affordable, and the vast majority of them offer pricing flexibility for low income families/individuals/students. If all of these options are still out of your price range, go and dust off your sneakers, hit the pavement, and go for a run (if the idea of running terrifies you, check out the Couch to 5K program – I started with that a few years back, and before I knew it, ran my first 5k, then 10k, then half marathon, then full… Added bonus: there is a fantastic (free) app that you can download and take along with you to give you the run/walk cues as you go!), or take the dog for a walk, or go for a stroll with someone you love. Take your health as seriously as you take your finances!
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Secondly, take the initiative to put some money aside for a small “luxury” for you to truly enjoy – something that you want that isn’t a debt, bill or stressor! For example, I will be taking my fiancé to Vancouver in 2 weeks to celebrate his birthday. One of our favourite bands will be playing a show the weekend following his birthday, and I really wanted to make a point to go and celebrate all of the strides we have both made recently in our personal and professional lives.
So, I took a step back and I found a way to make it work. First off, I had to figure out whether or not I could afford to make it happen – and it turns out that with some creativity, I’ve actually paid it off in full already. I booked our hotel off of Hotwire.com and got a killer deal, bought our concert tickets early (and thus paid the early bird price), and since I pay my credit card bill in full every paycheque and I made these reservations close to a month ago, we can go away for the weekend knowing that our only expenses will be food and any sightseeing we choose to do – pretty awesome, you guys. Affordable, fun, and something special to commemorate another year of my love’s life!
Now, this isn’t something I can afford to do every paycheque; however, I can do things like treat myself to a new book, or a date night out with my man, or even something as simple as a good latte once (or even a couple of times, budget depending) every two weeks.
Photo Credit: karen-gallagher.com
Finally (and most importantly, in my opinion) is to keep the end goal in sight. Sure, I messed up pretty big a few years back. Naïveté and circumstance certainly don’t excuse my mistakes; however, they do explain them. If I could go back in time and keep my teenage self from putting a serious dent in my credit, I would; however, time machines do not exist – and hindsight is 20/20. So, moving forwards, all I can really do is just that – I’ve learned how important it is to create and maintain momentum in life, and I’m only really doing the wrong thing if I make the same mistakes over and over again.
My end goal is to be financially comfortable to the point where I don’t have to stress over how much is in my bank account; to have the freedom to travel and do the things I want to do without a second thought; to build a stable and secure future with the love of my life; and to be able to pay forward some of the (financial) kindness I was shown by friends and family in my times of need.
I am working my tail off to achieve the end goal – and trust me, there are more days than I’d like to admit that are spent ruing my past mistakes, feeling sorry for myself and wondering why the heck I’m doing what I’m doing. It’s hard enough admitting to your past mistakes – fixing them isn’t easy; however, it is the sole means by which you can rid yourself of that weight permanently.
The short term sacrifices are worth it in the long run – but you have to be willing to stick it out in order to reach that finish line.
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So, to cap this all off – as far removed as your fiscal matters may seem from the rest of your life in regard to your health and happiness, the truth is that money can either be a source of great comfort or vast tension. With that in mind, the power is in your hands – what are you going to do today that you will thank yourself for tomorrow?
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If you need guidance with regard to consolidating your debts, please do contact us here at the Slegg Mortgage Team – it would be our honour to help you navigate your finances and achieve your goals.
Have a fabulous weekend, everyone!
-Mel
Slegg Mortgage Press 