To RRSP or not to RRSP… that is the question.

It is now officially less than two weeks away to the RRSP deadline for the fiscal year.  This one honestly snuck up on me, I really thought I had a little more time.  I still have almost none of the tax forms that I need to be able to file, so taxes aren’t really on my horizon yet.  I still haven’t decided whether or not to contribute for the year.

I have always contributed to my RRSP to the max (which has not been all that much) because I thought that it was the responsible thing to do.  However, a couple of years ago the accountant who files my taxes mentioned that I might be better off to hold off on contributions.  While I am in school, I will presumably not owe any taxes (although this year might/will be an exception).  My RRSP contributions therefore don’t really give me a tax advantage.  On the other hand, if I saved up my contribution room over the next few years, I could contribute to my RRSP in big lump sums the first couple of years that I am working to reduce the amount of taxes I have to pay by quite a lot.  This makes sense to me, although please chime in if you have a different opinion, because I have not 100% committed to this plan.

As I’ve written before however, I think I will probably owe taxes this year.  Last year was $500, and I’m anticipating it will be around the same this year.  At some point over reading week, I am going to fool around with some online tax programs to see how my tax return is looking with estimated numbers.  Then I will have to make a call and decide whether or not to contribute.

If I do contribute, it won’t really affect my financial goals.  I will obviously have to account for the money, as it will have to come out of my law school expenses for now, but I will probably still hold off until the fall to replace it to keep the summer for “fun saving”.

PS. I should add that I also contribute to my TFSA, but I do not count this as retirement income.  Since you can pull it all out at any time without penalty, I plan to use this money when I make a downpayment on a home.

Categories: Taxes | Tags: , | 2 Comments

Reading Week!

I am beyond thrilled to be able to write that I am on the train on my way home for reading week (or spring break as I think it is called in the US) now.  I am going to be home for ten glorious days.  I have been looking forward to this short break since the Christmas holidays ended.  After this it’s all business all of the time until exams are over.

I am happy just to be home for the week, but it’s not going to be a vacation really because I will be so busy.  I am working 9/10 days and I have a factum to write from start to finish during the time.

The part that I am actually most excited about is that I will be able to finally devote some serious time to cleaning and de-cluttering.  Even if I can only make time for 1-2 hours/day, I will still be able to get lots and lots done.  So finally, after all of your patient waiting, get ready for some after shots of my cleaning efforts in the next few days!

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February Low-Spend Challenge Update- February 14th

February Budget

Gifts- $14.81/$20.00 (Birthday for one friend DONE)

Mail- $3.00 (One card to Japan)

Entertainment- $13.00/$50.00 (Spontaneous brunch)

Toiletries- $2.50/$5.00 (Laundry twice)

Food- $50.00 (50% less than usual)

Miscellaneous- $22.00

Transportation- $30.00/$75.00 (Cabs and bus tickets)

Total=$60.30/$225.00 (Note: this works out to $7.75/day)

It doesn’t really feel like I’ve bought anything this month, but it’s amazing how quickly little things add up.  The next week I shouldn’t really be spending much, except that my transportation budget is going to be stretched to the breaking point this month!  Overall though, I’m very happy with where I’m sitting so far this month.

Thanks to Carla for putting this together and inspiring us all to keep up with out challenges!

Categories: February Low Spend and Decluttering Challenges | Tags: | 2 Comments

A Budget Win and a Budget Loss

This weekend I had one real budget success, and other budgeting choice that was not so hot (but I’m okay with).

I had a friend with a February birthday, and I also had a great idea of something to get her.  She repeatedly mentioned something that she wanted, but she felt that the price was more than she was willing to spend.  I knew that she thought it was silly to spend so much money on something frivolous, but that she really wanted it.  It was also $34.81, almost double my budget of $20.  So I asked my brother and another friend if they would each pitch $10 and we would buy it together.  They agreed, and so my price tag was reduced to $14.81, bringing me happily in under budget!

My friends actually do this quite often.  We’re all still pretty young, so our budgets aren’t huge.  It’s nicer to get a $50 gift that is something you need or want or will actually use than 5 $10 gifts that aren’t useful, just affordable.  A few of my friends got together for Christmas this year and bought me an external hard drive, for example.

Friday was a very long day for me as I was working frantically to get an assignment finished.  I was frazzled, exhausted and totally wiped out.  Just as I finished it late at time, a friend sent me a message asking me if I wanted to go for lunch on Saturday.  She asked me at just the exact moment where all the pressure went away and I was left feeling like I deserved a huge treat, so I said yes.  This was VERY out of character for me.  Eating out is definitely one of my weak spots.  My groups of friend do it a whole lot, and once I do it a little bit, I start doing it a whole lot more.  So I am always extra careful about which invitations I accept and decline.

In general, I am more likely to accept an invitation if there are more people there.  I pay the same amount of money for dinner out with one friend or twenty.  I like to kill a lot of birds with one stone, even though you don’t always get that quality time.  I also never, never, never do things last minute.  I like to make plans far ahead so that I can budget in my head and anticipate the cost.  It also takes impulse out of the equation and ensures that I am spending intentionally.

I spent $13.00 on a delicious brunch/lunch with two good friends.  I could have just gone home and eaten for free, so it was not at all a necessary purchase.  If I thought through the decision, I never would have done it, but I’m kind of glad that I did because I really needed some good conversation with friends to recharge after working so hard.

As a final note, I’m pretty sure I’m crazy for analyzing each and every time I spend money, but I swear I can’t help it!

Categories: Uncategorized | 2 Comments

Sunday Night Chitchat

I’ve never done this before… I always read this over at Carla’s blog and others, but I never feel like what I’m doing is interesting to post on the internet.  Maybe my standards are lower, or maybe I’m just taking a break on the train, but here goes nothing!

Here is another messy picture of my room.  This is my bedside table.  Even though you can’t even see the table under there.  (Let me know if the picture looks weird, I’m still trying to figure the picture thing out…)

Reading?

Some cases and commentary for my moot problem.

Watching?

Nothing at all.  One of the downsides of both school and train travel.  I will watch some TV tomorrow night because I have a very long day of school though.

Listening to?

A Dave Ramsey podcast.  One of my favourite podcasts, and one of the only things that I can have on in the background without it distracting me!

Cooking/Baking?

Usually when I’m home on the weekend I try to bake a little something to cut down on the amount of groceries I have to buy for the week.  Like, if I make muffins then that takes care of all of my breakfasts for the week.  This weekend I was especially short on time, so I whipped up some pasta at the last minute.

Happy you accomplished this week?

I’m happy that I survived and that I got my brief done!

Looking forward to next week?

This is an especially short week for me at school.  I’m looking forward to a long weekend.  I really only work on weekends, but I’m working this Friday.  I’m looking forward to seeing all of my co-workers who only work during the week again.

Thankful for today?

I am most thankful for my family today.  Even though I come home every weekend and it certainly feels routine, my parents always make an effort to spend time with me and spoil me while I’m at home.  My parents eat dinner at 7 or 8pm.  On Sundays I like to eat dinner before 5pm so that I can digest my food before I leave for the train station.  My whole family ate early at “my time” tonight.  My mom always buys me a treat for the train (that I never actually eat on the train, always save it for later in the week).  Finally, I played a few games of cribbage with my mom and brother this weekend.  It doesn’t totally numb my brain like TV does, but it gives me just the break from work that I need.  I am so blessed!

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Woah!

On Wednesday I woke up, and all of a sudden I was in law school.  Obviously I have actually been in law school since August, but Wednesday I was either in class or working in the library all day.  I left my place at 8am and got home after 10pm.  And it’s been like that ever since.  There is so much work to do, and I have no idea how I will ever get it all done.  I’m in survival mode right now, and I’m guessing that I will be until exams are over near the end of April.

But I’m hardworking and organized and I’m able to prioritize.  I think it’s going to take everything I have to just survive through April and get everything I’ve done, but I’m committing to do my best.  Clearly I’m going to have to cut things out of my life.  I’m going to try my hardest to say sayonara to things that don’t matter to me like TV and wasting time and napping.  And of course my biggest time-waster of all, mindless surfing on the internet.

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Looking Ahead…

My savings have gone well over the past couple of months, and I am going to be meeting my $10,000 goal quite soon (sometime around the end of March/beginning of April hopefully), and I need to look ahead to see what’s next.

My big goals going forward will be a hefty emergency fund and a down payment for a home.  These are big, sort of boring goals, and so I told myself that I would take a break from saving for big goals until August, and save for fun things until then.

I have a bunch of little goals to take care of.  Some are fun, some not-so-fun.  Some are very defined, and I’m not sure how much others will cost.  This list isn’t finalized, but just some of the “little things” I’m hoping to save for:

  • Taxes
  • My best friend’s wedding
  • A professional wardrobe (I start interviews in October, so this is a must!)
  • Kitchen gear  (I’ve never lived by myself in a place with a full kitchen before.  Other than a can opener and a kettle, I don’t really have anything for the kitchen (not even a spatula… or a bowl!))
  • Birthday gift (I always get myself a kind of splurgy birthday gift since my family doesn’t really celebrate birthdays… not sure what to get yet)
  • Trip to Target or Walmart
    • Something I did this year that was really smart was to pre-buy most of the toiletries (do people even use that word anymore?) I needed for the year.  From laundry detergent to toilet paper to deodorant to toothpaste, it has been wonderful not to worry about these things with the chaos of school.  I would like to expand that this year to include some shelf-stable grocery items.  This may sound boring to some people, but it is such a splurge to me because it makes my life so much easier when I don’t have to get out shopping with no car!

What would you save for if you were going to take a break from saving for big-ticket items?

Categories: goals | Tags: | 2 Comments

The Tax Man Cometh

Tax season is upon us and I for one am nervous.

I could ramble on about this forever, but I’ll try to keep it short and sweet.  I filled out my first tax forms at work when I was 16.  It was just a summer job, and I was making probably $4000 for the entire year, so I filled out my tax forms and barely anything was withheld from my paycheque.

Then I was in university, and keeping my withholding low was smart because I had tons of tuition credits, and so I never owed anything at tax time.  I graduated university well before I used up my tuition credits, so I was okay for a little bit, but last year I owed about $500.00 to the government come tax time.

I haven’t run any numbers, so I have no idea what this year will hold.  I am back in school, but I only have tuition from four months to claim, whereas I earned money for almost the entire year.  I’m expecting to owe money, but also dreading it, because I have zero room in the budget for it, so it would definitely throw my savings goals off track.

My whole family are late filers, and I haven’t gotten any of my forms from work or school or banks yet, so it will be a while before I know.

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Declutter Challenge Update

I managed to take pictures and get a bit of cleaning done this weekend, but more than anything I realized what a big project this is going to be to tackle.  Definitely something that is going to stretch out over the whole month.  On top of it all, I have a huge project due on Friday, so I’m having trouble even posting things on this blog right now.  I’m going to keep going and trying my hardest though.

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Net Worth Update

I wrote earlier about paying tuition and how difficult it was to see my net worth dropped.  Well, my net worth is back on the upswing.  I regained $4,000 of the $7,000 that I originally lost.  I hopefully will be able to gain back the full $7,000 before I have to pay tuition again in August.  I know that my current net worth is not sustainable for the duration of law school, but it’s kind of a fun game for me to keep it up as long as I can!

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