You say bitch on a budget like it’s a bad thing

I thought about writing this post last month, but then I decided to save its debut for the start of September. You see, it’s been over a year now that I’ve been successfully budgeting. This week last year was the end of my very first month as a girl living on a budget. Yippee!


Yep, sparkly shoes are the only red this
bitch on a budget will be wearing.
source

And a full year later, I can track every single one of my expenditures, revenue gains, and investments made in the last 52 weeks. I truly believe that the hardest part is just getting started and while the idea of “budgeting” didn’t appeal to me and sounded like too much work this time last year, I definitely needed it and now, I celebrate it!

Since I picked up my first book on personal finance (The Smart Cookies' Guide To Making More Dough: How Five Young Women Got Smart, Formed A Money Club, And Took Control Of Their Finances) planning & reviewing my personal finances has become a way of life.

In 1 year, here’s what I’ve been able to achieve:

1.      Paid off $6,000 in consumer debt in less than 6 months.

2.      Increased my investment portfolio by 149%. J

3.      Made up for 4 years of loss time by maxing out my RRSPs.

4.      Prepared my taxes on time & knew what to expect as a refund.

5.      Negotiated a pay raise.

6.      Saved up to treat myself and my sister to a fabulous vacation in Las Vegas.

7.      Started an Emergency Fund.

8.      Started a Vacation Fund.

9. Started a Down Payment Fund for my dream home.

10.  Survived last year’s holiday season (and will make it through this year’s) thanks to my Christmas Gift Fund.

11.  Negotiated my cellphone bill down from $120 to $68 a month without compromising on any much-needed features.

12.  Negotiated the terms of my first car purchase with my Eye Candy.

13.  Eliminated my monthly bank fees.

14.  Eliminated my monthly storage locker fees.

15.  Sold $400+ of unneeded merchandise in our condo via Craigslist.

16.  Started living more like a minimalist as I purged the 3 double-closets of my single-girl-days down to 1.5 and hopefully, to 1 by the end of the summer season... but all my favourite dresses will remain.

17.  Used my morning commute to work to read books filled with tips and tricks on investing and personal finance.

18.  Used wisely the option of buying in bulk to save on our weekly grocery bills by opting for a Costco membership.

19.  Started this blog as a way to stay motivated on my finances and to ensure I spent 2+ hours a week reading about money matters.

20.  Enjoyed peace of mind knowing that my money is working for me as I’ve successfully shopped less, and invested more.

For those of you who are thinking about getting started on managing your personal finances, I recommend the Smart Cookies books and of course, Bitches on a Budget by Rosalyn Hoffman. After all, red is a lovely colour for a pair of shoes… just not your bank statement. 

As I celebrate a happy-budget-birthday to me, I'm curious to know... what has been your motivation to be back in the black?

*Rosie*



With the money I'm saving, I'll need books for a beach vacation soon.

This post is dedicated to the fun & fabulous blogger Annabelle over at The Shopping Detox who is the sassiest and funniest librarian that I've ever encountered. And she's frugal too!

When was the last time you visited your local library? I’ll admit that until I started a regiment of tight budgeting last summer, I hadn’t borrowed books from the library since my days as a zealous Girl Guide researching random subjects in an effort to earn badges. Even throughout university the library was simply a quiet place (most of the time) to get my work done. For all my reading needs, the bookstore was my go-to retail destination.

I pulled up my online order history with Chapters Indigo just for fun and in 2010, I purchased $520 of books and $340 in 2009. Granted, some of those purchases were gifts (e.g. the Kobo for my Eye Candy’s birthday), but they don’t factor in my impulse in-store cash purchases so they are a still strong indicator of how many books I was buying. Yet, in an effort to shop less & save more, these book purchases have become a thing of the past. Other than my Mum’s recent birthday gift for $27, I have not made any other book purchases. In fact, Chapters Indigo must be wondering where I’ve gone! Instead the local LaSalle librarians know me by name.

About 2 months ago, the Montreal library network upgraded their online catalogue to include every book in every borough regardless of your “home” library. Assuming you already have your free library card, your first step is to visit their Nelligan catalogue at http://nelligan.ville.montreal.qc.ca/search and log-on with your username & password. (This should not be confused with visiting Hotel Nelligan which remains my favourite rooftop terrace in Montreal.)

Now it is possible to browse for your favourite titles and a reservation is just a click away.




Obviously I searched the Financially Fabulous guru herself,
Gail Vaz-Oxlade for the purpose of this demo.







Obviously I also reserved some much-needed chick lit.

A girl can't be good all the time.



The best part? You chose what local library you want your book shipped to and the librarians will call you when your book has arrived. In fact, it’s become a joke with my colleagues now as there is a high chance that when my cell phone rings during a meeting, it’s the library calling.

Today was no exception as I was thrilled to receive yet another call. I waltzed into the library after work and was handed my much-anticipated stack of reading material. The library is the ideal place to indulge my impulse shopping without paying a penny. After all, my tax dollars are hard at work here.



My "purchases" this month from my local library.


I currently have 10 books on loan –  while this may seem excessive, I do read at least a book a week so a girl needs her stockpile.  I've already half of them and I'm now writing book reviews for the upcoming viewing pleasure for my Financially Fabulous friends.

Once you’re at the library, feel free to browse some more. Why not also borrow some DVDs for rainy day viewing or CDs with songs of the world to set as background music for your next ethnic-inspired meal? Just make sure you keep track of due dates as Montreal charges $0.25 per day per book as a fine for your tardy material.

While that fine won’t break the bank, I’m more fearful of the stigma of being that girl who can’t even return her books on time. Fortunately, extending your loan is also just a click a way so be sure to bookmark the Nelligan catalogue site.



Don't forget to renew! And in the summer, Montreal
gives you 6 weeks to enjoy your book. What's there not to love?


Happy reading!

Rosie

Sticker shock

Friday night I went out my Eye Candy and friends for dinner at Le Chien Fumant – a petit bistro-resto in the plateau that has a low-key, but stylish vibe and the most delicious menu. I had only been there once before for my EC’s birthday, but he is a regular with his friends as their Moscow Mules are apparently legendary. Heading into the night, I had taken with me $75 of my Fun Money which I figured would be enough for dinner and a glass (or 2) of wine.

What I am about to describe is likely every other budget-conscious gal’s worst nightmare, but I think we all go through it as a “live & learn” kind of situation.

My good friend is a good friend of the chefs at Le Chien and he arranged for our group of 8 to enjoy a fixed-tasting menu that would be about 5 courses… but nothing too fancy. After having whispered side conversations with my Eye Candy, he told me that the dinner would now cost $100 each, but that it would be worth every penny. Given that we were sitting down for dinner and everyone was enthused to do a taster-menu, I refused to be the one who would bust-the-bistro-bubble and opt just for a meal à la carte. I had to bite the bullet and agree to split the bill.

Dinner lived up to its hype and I had a fabulous time with my friends while making new ones. But unfortunately, my evening came with a major price to pay. When the meal was all said and done, the bill came to $1,058 plus tip. Split between 8 of us, my share was $155.... YIKES! My evening out cost double what I had planned to pay.

I drove home that night (as DD, I had stuck to my 2 glass limit and drank about 6 glasses of lemon water), I could feel myself fuming. The fixed-menu may have been delectable; but spending an evening with my friends should not be a $155 expense. The worst part is that I knew I would have had just as much fun had I picked my own meal off the menu. I felt like my money had been spent for me and the social atmosphere of it all made me too uncomfortable to say anything.

While 2:30 am chats are never a good idea, I talked it over the situation at length with my Eye Candy as I’d never be able to sleep otherwise. I was mad at myself for spending my money so foolishly. In the end, I realized that there was nothing more I could have done as the eating arrangement was pretty unique to Le Chien Fumant. I had to chalk up my $155 to being a lesson learned: splitting bills with friends over dinner is never really “fair” and that’s the price to pay for their company. Also, if a restaurant is out of my budget, I need to be more confident in speaking up ahead of time that I will order my dinner.

On the flip side, I did make the most of the taster-menu at Le Chien given that I am a notoriously picky eater. Having sworn off seafood simply because I don’t like the look of it, I’m pleased to report that I tried 3 new appetizers and my sense of adventure received rounds of applauses from my friends: a lobster bisque, a mussel radish salad, and general tao fried calamari. These were dishes that I would have never ever ordered on my own for fear of wasting my money if I didn’t end up liking them. In some ways, I suppose the $155 has allowed me to expand my future menu choices… but my next dinner out will not be for a while as my Fun Money envelope is pretty thin this week.  

Are you comfortable splitting the bill with friends or do you speak-up about your budget? 

*Rosie*

Storage Wars

I'm finally storage locker free! 

You might be asking yourself 'how does a mid-20-something gal have so much stuff that she requires a 8'x8'x8'storage locker in the first place and why is this equally budget-conscious frugalista spending $143 each month for someone to store her stuff?' Well, please let me back-up and explain. 

When I made the decision 18 months ago to move in with my Eye Candy, I had been on my own in my own condo for a few years and we had the task of combining 2 adult apartments into one. I had a shabby chic collection of furniture that I had inherited from my Gramma before she moved into a retirement place; meanwhile, my Eye Candy was back in Montreal after years of living in & out of hotels for his consulting roles and was in the process of purchasing furniture & decorating his place. In most ways, his condo represented a blank canvas for us to fuse our tastes together and set-up a home for two.

In Quebec, it is quite common for couples to live common-law instead of getting married. For every 1000 adults in the province in 2010, only 2.9% are married versus the provincial rate of 8.2% in 1970 and it is well below the national average of 4.7%. With that being said, living together in Quebec is quite a significant and serious stepping stone in a relationship. I was incredibly excited to be moving in with my Eye Candy and confident in my decision. After all, I was in love. But because I was head over heels in love, I opted for a storage locker. 

Storage lockers are the modern girl's pre-nup. 

I had seen too many friends get burned by boyfriends after they moved in together and discovered that Prince Charming was far from being a knight in shining armor. In too many cases, these ladies had sold their condos and furniture to set-up their love nests, and when the relationships turned sour, they were left homeless and had to start from scratch. I opted to take on a $143 monthly expense to keep my condo tightly boxed and dismantled in a storage locker. This represented my safety nest, and in some ways, my independence. 

But with each day that passes with my Eye Candy, I continue to fall a little bit more in love and while life was good when we were dating, living together is incredible. 

I decided a few months ago that I would give myself the deadline of August 31st to clear out my storage locker. My Eye Candy and I are going to continue to live in our condo and there is no need for me to hang onto a second bedroom set, living room furniture, dining room table, desk, tv, and so-on. 

Fortunately, the timing worked out perfectly as my sister is about to take the same step in her relationship and has just finished off grad school, moved out of my parents' house, and is now setting up her first apartment with her boyfriend in northern Ontario as they both start their first jobs. 

I was more than happy to have movers come and take my locker to her. They are getting a shabby chic start to their new life together and I'm getting a $143 to move into my investment account each month. I also passed along to my sister a copy of A Good Girl's Guide to Living In Sin as a checklist of things to consider as her relationship and lifestyle moves forward and changes. 

There is a lot that I could have done with $143 each month for the last 18 months instead of storing furniture. But in the long-run, this was a small price to pay in order to feel confident in my decision to co-habitate sans mariage. After all, living with the man of your dreams should never get in the way of a girl's dreams. I stopped considering my storage locker as a safety net ages ago, and instead, it became more like a baggage weighing me down. Today, I am not only able to achieve my own financially fabulous goals, but I'm working with my Eye Candy to achieve our shared goals and this is the best security that a modern girl could ask for.

*Rosie* 

Money management tips & tricks for grads

June is the season of graduation ceremonies so this post is dedicated to all my favourite graduates who are looking lovely in royal blue gowns this week. I’d like to share some tips & tricks for managing money as you make the transition from university to the workplace and into your first home-away-from-home that is bigger than a dorm room.

Live like a student as long as possible.

This is easier said than done as the first batch of paycheques make it tempting to go out and live the highlife with frequent dinners on the town, constant take-out meals, buying a new work wardrobe, jet-setting for vacations, and ordering furniture. However, the longer that you can “live like a student” the sooner it will pay off in the long run.

This doesn’t mean surviving on Kraft dinner and staying at home reading library books, but it does mean:

o       accepting hand-me down furniture to create a shabby-chic apartment

o       making your own lunch for work daily

o       grocery shopping smartly with a list

o       frequenting Wal-Mart for your household basics

o       inviting friends over for a potluck dinner instead of hitting up the local pub

o       indulging in DIY beauty routines

While you may have champagne taste, keep yourself on a beer budget and save! 

Create & stick to a budget

I only started budgeting 11 months ago and I wish I had started the habit as soon as I started working. It gives me a sense of confidence in managing my money and I make smarter choices. I would rather see the balance in my Vacation Fund rise than spend $100 a month at Starbucks. When I started working, I lived paycheque-to-paycheque paying my bills as they came and then I’d go crazy depriving myself to put a huge amount all at once into a savings account. This is no way to control your cash and it is unnecessarily stressful.

Gail Vaz-Oxlade is the guru of money management and I strongly recommend her tools to plan where your hard-earned dollars will go. 

Pay yourself first

I hope that every graduate receives a copy of The Wealthy Barber as a graduation gift, but if you don’t, then please pick-up this must-read. Managing your money can be overwhelming and it is hard to know where to start. I’m still just figuring it out.

But one thing is for sure, the future-me is relieved to know that she’ll retire in style as I’m maxing out my Registered Retirement Savings Plan contributions monthly. The current-me doesn’t even notice as my contribution is taken directly off my gross income and thereby, minimizes my taxable income. If there is one form that you sign with your employer, it should be to sign up for an automatic deduction of 12-18% of your salary into an RRSP. Even if you don’t quite understand what that means, just do it and take some time once you’ve settled into your new life and have read The Wealthy Barber to review your RRSP plan.

Re-read your employer benefits once the ink dries

By the same token, it can feel like a world-wind tour as you sign your first contract with an employer and the 100 forms that come with it. Again, once you feel settled take time to review what you’ve signed and request changes as they make sense. For instance, I was paying $45 a month into a life insurance plan when it finally dawned on me that I have no dependents relying on my salary. The $45 is better spent investing into an RRSP and up’ing my health plan for full dental and eyewear coverage.

Be student-loan free as soon as possible

I paid for my university education with a mix of scholarship and earnings from my summer internships, so I did not have the burden of paying back loans once I graduated. If you do have loans, it should be your priority to pay them off. Based upon your budget and minimum repayment requirement, you should set-up an automatic payment. Time this with the same day as your payday so that your disposable income is reduced right away and you won’t notice a difference in your lifestyle.

Your mode of transportation should be a BMW

Fooled you! BMW stands for bus, metro, or walking. If you’re living in an urban city with ample public transportation now is definitely the time in your life to take advantage of it. As a rule, transportation costs should not exceed 15% of your monthly budget. A 0%-interest loan on a car lease for a MiniCooper may seem like a fabulous way to zip around the city, but consider the hidden costs: insurance, gas, parking fees, and maintenance. Suddenly $73 for a transit pass seems like a bargain.

Take advantage of birthdays & Christmas

Ask for gifts that you really need! Now don’t go all bridezilla as no one likes to be given a checklist to scratch off. When a special occasion approaches and you expect to be spoiled and adored, it is ok to hint for gifts that you'll use and appeciate. Times have changed and young ladies & gents are no longer leaving their parents home right after getting married with piles of wedding gifts so we have to spend our own dollars wisely to create our perfect nest. 

I recommend asking for items that you may have initially purchased on a budget, but would like to upgrade: for instance Egyptian cotton sheets, luxe bath towels, or gardening tools. Likewise, mention your favourite stores so friends & family will know where to shop or where to pick up a gift certificate. I love receiving cards for Winners, HomeSense, Lululemon, Jacob, and The Running Room as these are the stores that I know I’ll hit up at some point for wardrobe additions, condo décor, and sporty gear.

Be VISA’s worst nightmare

Pay your credit card bill every month on time and in-full. If it’s your first time having plastic to swipe and you don’t think you can show restraint, put your credit card in an icecube tray and freeze it. Only defrost it for planned purchases and then transfer a payment over right away. I use my credit card for most purchases  as I get 1% back on all purchases in December and I pay no account fees. Every 2 weeks, I log-on to my CIBC account and pay each charge on my VISA transaction by transaction. VISA must hate me for it as they earn no interest from me and end up paying me to be there customer!

Don’t cave to the pressure to keep up appearances

Chances are your social group is paying for their ballin’ lifestyle with credit and in the end, it will cost them dearly. The average Canadian consumer debt (excluding mortgages) is $26,000 and this behaviour of over-extending oneself doesn’t happen over night.

Don’t feel the need to rush out and buy a leather couch or designer suit simply because your friends are doing the same. You are not being left behind if you take the time to save up for a dream vacation of tango’ing in Argentina, building a quality designer work wardrobe piece-by-piece, or investing your cash to build a down payment. Figure out a way to get your money to work for you and if you haven’t picked it up yet, Rich Dad, Poor Dad is another great read.

I also recommend setting up an account with ING to automatically move money into a saving account with each paycheque. For your first deposit of at least $100, you’ll get $25. This is an incredible ROI! And if you use my Orange Key Number: 31643528S1 letting ING know that I recommended you, I’ll also get $25. Let’s share the wealth!  ING will also give you $100 for switching your chequing account to them and I’m in the process of doing so too.   

Final thoughts

Graduating from university and stepping out into your first job and first apartment is incredibly exciting and understandably, overwhelming. You might hit a few bumps in the money-management road, but if you resolve to learn & control you finances, you are setting out on one fabulously fun road trip.  

*Rosie* 

Cash flow conundrums

I was reviewing my upcoming 4-week budgets for the summer as I am always looking for areas to cut costs. One of the areas that I was planning on saving money was with my YMCA membership. Now that the warmer weather is upon us (sort of, Montréal has been under water non-stop for the last week) I am outside more for running, biking, and even swimming. While these sports have little equipment, I still have to pay for my Trois Vitesses club membership, registration for my half-marathons & other events, and I have opted to take a technique class or two. It didn’t make sense for me to pay for a monthly YMCA membership when I plan to be outside this summer.

My YMCA membership is $52 a month as I get a $5 subsidy from my company. I was also pleasantly surprised to see on the YMCA website the option of suspending one’s membership for a period of 3 months! See below: 

It’s reassuring to know that you can temporarily put your membership on hold or cancel it with no hassles. Whatever the reason, the Y allows you put your activities on hold for a minimum of one month and a maximum of 3 months over the course of your one-year membership. You can take advantage of this privilege twice per year. The sum of the hold periods cannot exceed 3 months.

Or at least, so I thought as there is fine-print associated with the website’s claim.

I went into the YMCA last night to suspend my membership for June-July-August. It turns out that even though I’ll suspend my membership, I’ll still pay for these months. The make-up for these suspended months is added to the end of a member’s year. I’ll pay for the membership this summer even though I’m not using the gym or attending classes, but I won’t see the impact until February-March-April when I go to renew my YMCA membership and these 3 months are just added on. (Yes, I am one of those people who joined a gym in January…but the good part is that I’ve stuck with it for the last 3 years so I’m not a total flake.)

Fortunately I’m able to suspend my membership so I am not paying for something I will never use. I am sure a lot of downtown gyms are much more expensive than the YMCA and my location has excellent modern facilities. Unfortunately, the suspension just doesn’t help out my cashflow for the summer months and being the next Sporty Spice will expensive.

Are there any other financially fabulous ideas for saving money this summer?

*Rosie*

Bedside financial reading that won't put you to sleep

I've had some private Facebook messages requesting me to share some tips & tricks on elminating debt. This means I have more readers than followers! While I started this blog because I'm looking to figure out my finances now that my debt is wiped clean, there are some must-reads that I would recommend for every girl looking to have more funds.



The Smart Cookies' Guide To Making More Dough: How Five Young Women Got Smart, Formed A Money Club, And Took Control Of Their Finances
Andrea Baxter

This came recommended by my BFF /fellow Sporty Spice. It gave me the motivation to open my Visa and take control of my finances because I finally realized that I could have any life I wanted if I took the time to manage my money and think about my long-term goals. It is written from the perspectives of 5 ladies who all have interesting careers (PR, marketing, social work) and are at different stages in their relationships (single, divorced, engaged), but were charging up their debt in an effort to maintain an appearance or handing over their financial control to the men in their lives. Who can't relate to that? By sharing their financial situations with one another, the women found motivation to pay off debt and establish money-managing plans for their goals. The book includes budgeting techniques, tips on being a smart spender, and advice on how to make more "dough".

The advice on budgeting seems strict at first as it encourages compartmentalizing all upcoming expenses and paying in cash using "money envelopes". None the less, last July I had nothing to lose so I opened up my Excel, planned my first 4-wk rolling budget and started my envelopes: e.g. household purchases ($100/month); groceries ($120/week); and fun money ($80/week). Obviously the fun money was my favourite envelope! After taking the time to budget all my upcoming expenses and debt payments, I determined that I could afford $80/week for fun. I use the cash for anything I want - coffee at work, dinner out, a botte of wine, a fun nailpolish, or a little dress from Winners. The trick to the "fun money" is to establish an amount that you can afford and not to feel guilty about spending money it. After all, you're taking the time to make sure everything else is paid off so this is a small personal indulgence that lets you feel empowered about your shopping and not feeling deprived by your budget.

The Smart Cookies Guide is relatable and is an excellent first-step to becoming financially fabulous. It is also Oprah-approved as one of her favourite things. The bonus? The women are Canadian so all the financial tools that they share are practical for us Canadian chicks! The hard-cover edition is a bargain book at Chapters right now for $6.99, so I'd classify this book as an amazing investment.



The Wealthy Barber Gold Edition
David Chilton

My Eye Candy gave me this book over two years ago, but it took some time for me to actually pick it up. After all, financial planning is not the most exciting topic, but I wish I hadn't waited so long. I think this should be mandatory reading for every student and the younger the better. It is now my favourite gradution gift for friends & family.

While it is slightly hokey-pokey at parts, David Chilton shares stories of his trip to see the Roy - the local wealthy barber who cuts your hair and if you're lucky, dispenses personal financial planning advice. The book is easy to read and the financial strategies are even easier to implement. It's common sense for financial planning and as I went through the chapters, I found myself taking action. I now take 10% off my gross income automatically off my paycheck and it directly goes into my RRSP. Since I started this 7 months ago, my RRSP value has doubled what it took me 3 years to save up! It is almost shameful to admit that! But the best part? I don't even notice the impact in my day-to-day life of putting away 10% into my RRSP, but I'm sure the fabulous 65 year old version of myself is already thanking me for maintaining her wonderful lifestyle.

Another tip that I put into action was the life-insurance. For $50 a month, I was putting away money into a huge life-insurance policy. Ummm... why? The truth is because when I started my job, I just kept signing forms and filling in options because I thought that was what every good first-time full-time worker does. But when I thought about it, at this point in my life, I don't need to spend money on life insurance. I am not married (yet... hint, hint), nor the sole bread-winner in my relationship, and I have no children. For now, I am better off taking the money and putting into another investment.

I plan to reread The Wealthy Barber in the next month as there were parts that initially went over my head about investing simply because I was so concerned about paying off my debt that the timing was not right to implement. And like Smart Cookies, this book is Canadian based. So if you've not read The Wealthy Barber yet, let me know when your birthday is coming up.



Bitches on a Budget
Rosalyn Hoffman

I ordered this book online after seeing it in-store and decided it would be a witty read. Hoffman did not disappoint! It is the chick lit of personal finance. While the Canadian economy did not have the same recession crisis as our USA neighbours, saving money is always in style. There are tips for being a smart shopper like when to splurge on the items based on the seasons and retailers to keep on your shopping circuit (sidenote: I am so excited that Target is coming to Canada soon as this seems to be the mecca of every recessionista) and I found the tips to be new and relevant... not just the same old "skip your coffee for $3 a day and you'll have a $1000 at the end of the year". (While I respect the latte-factor tip, I genuinely enjoy my $1.25 Tim Horton's tea as it's a chance to "network" with my colleagues and escape my cubicle life for at least 10 minutes a day.)

Bitches on a Budget also gives ideas on how to maintain your wonderful lifestyle no matter what your budget - how to decorate your nest, what to order when you go out for a night on the town that's healthy & thrify, how to pamper your pooch without giving her a wardrobe more impressive than your own, and encouragement to get fit while keeping your bank account in shape. All in all, it is a fun-yet-frivilous-but-financially-fabulous read. I encourage every girl to unleash her inner bitch on a budget!



I am currently reading Does This Make My Asets Look Fat? A Woman's Guide to Finding Financial Empowerment and Success by Susan Hirshman which is all about finding the right mix of investments in your portfolio. It's on my beside table right now so expect a review soon... and my adventure in buying some assets.