Away from the point

I'm going to blog twice today because I realized my past few blogs have gotten away from the real point of this whole thing - to find ways to save money and give ideas and/or fun anicdotes to anyone reading this.

So I'll focus on at least one money-saving action each day and then I'll continue to blog about my meetings with the advisor.

Today was a strange day becuase I had to work until midnight last night and then be back in for 4:00am. I certainly didn't take the time to make a lunch this morning. Instead of purchasing food at the little grill in the building or at my favourite coffee shop, I ate a free muffin in the morning and cold pizza for lunch. I'm lactose intolerant but I decided to tough it out in the name of saving money today. I figure I saved at least ten dollars today.

I also decided I can't go on eating free muffins and pizza so I am determined to make a lunch for the rest of the week. Otherwise I'll be putting away money and packing on the pounds.

There should be a column for stupidity...

Reviewing my spending over the past few months I realize I left out a column on my chart. I have groceries, clothing, entertainment, and the other usual spending categories but I need a special category: stupidity.

Here are some examples of why:

One day I left my suitcase just outside the mailbox area in my building while I went in to get the mail. My suitcase was taken and it was choc-a-bloc full of brand new items. I was visiting my boyfriends parents for the first time so I brought the best. And for one weekend I brought six different outfits. That cost me a lot of money.

Just this weekend I went home to throw a surprise party for my sister and forgot I didn't have a key to my parents home and they were away. The solution? A hotel of course, I couldn't ruin the surprise.

Plus, I'm constantly forgetting things. I leave umbrellas in various parts of the city, and one time, when I was doing an internship in Toronto for a month, I forgot to bring dress shoes so I had to go to Winners and pick something up before going into work. I ended up buying a pair of boots that didn't even really fit but they were the best I could find.

So my next goal is to stop being so absent minded. That one will be a bit more difficult than avoiding the coffee shop but I'm willing to try.

Maybe this reorganization of my finances will make me a better person overall!

I cracked...

All was going really well last week. By Wednesday I was over my caffeine headache from the lack of my specialty teas and I hadn't spent a cent on food. However, the week was long and stressful. On Thursday I cracked and bought a tea from my favourite coffee shop. Then I had to be in at 4:00am on Friday and I cracked again. Not only did I buy another tea, I also bought a salad because I was too tired to bring in my lunch. I know... my excuses are pretty sad.

But - this is a new week. I brought a toaster in to work to make better use of the free bagels that come in each morning. I also brought in lactose-free milk to make my own tea.

I'm sick this morning and I think that will actually help me in my saving endeavors. I certainly won't be craving any foods and I'll likely head to bed as early as possible each night. My goal is to spend just twenty dollars this whole week. Most of that money will go towards the two cab rides I allow myself to work on the days I have to come in for 4am. It's a bit of a scary walk on your own at that time.

I meet my financial advisor this week so I'll post my financial plan as soon as I see it!

Little by little...

I thought I would share some little savings I've discovered lately.

Over the weekend I saved at least $100 on a replacement battery for my iPod. You see, the guys at Apple told me a new battery would run me $100 plus labour plus shipping and handling. I decided it wasn't worth it and have been going without my iPod for the past few months. Then I found a battery at Future Shop on the weekend for just $40. The package suggests you have a professional install the battery but it also comes with a step-by-step video. My boyfriend did it for me (because I was having trouble opening the thing up). In just half-an-hour my iPod had new life. It was a little tricky, and I knew I was running the risk of totally ruining my iPod, but it wasn't much use without a battery. Now I don't have to consider replacing the whole iPod (which is what the guy in the store suggested!).

I also discovered my running club has two free runs a week. Anyone can join without paying the $70 I paid for the clinic. As soon as this clinic is over, I'm going the free route. To find out about clinics near you click on www.runningroom.com

One other small savings I made today: I refilled my water bottle twice instead of buying another bottle. That's at least $2.

I also made it through the day without my specialty tea fix with only a slight headache (I'm sure it is a sign of withdrawal). A coworker and I have decided to take a walk on our break to get out of the building. A walk that doesn't end at a cash register!

Goal of the week

As I chart my finances for my financial advisor, it's easy to see the things that should be cut immediately. So I decided to set a goal for myself this week. Actually, I've set two:

1 - no more trips to my favourite coffee shop on my break
2 - pack a lunch every day

I don't spend a lot of money at the coffee shop but I generally go for a tea misto each morning. It usually comes to $2.50 or $3.00 depending on which barista rings it in. But when you think of it, that works out to $15 a week, $60 a month, and $780 a year!!!!! I had to do that equation many times over because I could not believe my little $3 habit could add up to that amount! I'm not even including weekend trips to Starbucks! Wow!

I started on a good foot today. I had two coffee dates arranged with friends so I decided to invite them over instead. I did have to buy the coffee because I never brew it at home, but that was $7 and I will only use it when they come over. A trip to Starbucks on the weekend is easily $5 (especially if I get a treat) so I would have spent $10 minimum today. That's a savings of $3 and we know how much that can add up to!

My second goal is to save money by bringing my lunch, but I also want to eat healthy. Today I went to the grocery store and bought the ingredients for stew. I'm going to make it tonight and have it for lunch all week! Lunch can easily run $10 a day and the ingredients were around $30 so I will save $20 over the course of the week if I stick to my goal.

Wish me luck!

The good, the bad, and the ugly

So I decided to get professional help. I knew a financial advisor and made an appointment. I was incredibly nervous heading in there, but I got good news and bad news. We'll start with the bad since it's always nice to end on a good note.

We started by going over my goals and deciding how much money I will need to retire comfortably at a good age (it will take a lot of savings!). Then the tough part: figuring out where I spend my money.

We went over everything I spend in a month on food, entertainment, clothing, gifts etc. For gifts and clothes we looked at how much I spend in a year and divided it by twelve to get my monthly amount. We looked at travel, sports, loan repayments, everything! We tallied that up and then looked at how much I made in a month. In the end there was about $600 unaccounted for. My advisor said "you have no idea where you spend your money, do you?" You see, it's not like I'm putting anything into savings, so that's really $600 I'm spending on "miscellaneous" things.

That was the bad... and the ugly.

Now for the good news. It turns out I'm not doing everything wrong. Here are the little steps I have taken that earned some praise from the financial advisor:

1 - I switched from a big bank with high monthly fees to PC Financial. I pay absolutely nothing each month. I have unlimited transactions, cheques etc. The only time I pay a fee is when I use an ATM at a different bank. PC Financial clients can use CIBC ATMs and there's a ton of those around! I figure I'm saving at least $30 a month by making this swich because that's about the amount I was being charged by my other bank for monthly fees and interac charges.

2 - I opened a savings account with ING and set up automatic withdrawals twice a month. I'm not putting much in, but it's more savings than I ever had before. Plus, ING has no fees and very high interest rates. That's another gold star.

3 - I cancelled one of my credit cards. I had two but I decided I didn't need two so I cancelled one.

4 - I changed my other card to one that has car rental insurance coverage on it. I save $24 each day I rent a car! I dont' own my own car so that's a lot of savings in a year.

So those are some simple steps I took and I've been told they were good moves.

My assignment: to look over my monthly bank account and credit card statements and put all the charges in categories to see where I'm spending my money.

I'll send that to my advisor and next time we meet we'll come up with a financial plan! Judging by the way she looked at me when I told her how much I spend on clothing in a year... or entertainment in a month, it's going to be painful!

Gotta have the gear

I realized another problem I have. You see I really want to get into better shape. So I'm trying to get into running. Not a bad idea, but it cost $70 just to sign up for a running clinic. Basically I'm paying to run with a group. But you can't run in a group like this without proper gear so I decided I really needed a running jacket. I also decided that I didn't want to give that company any more of my hard earned cash so I went to Lulu Lemon and bought a running jacket there ($84). While I was there the girl convinced me to try on another shirt under the jacket to see how it fit. When it gets colder here I'll need to have more layers. The second shirt looked so good I almost bought it. I was able to convince myself I had spent enough for today... but I will likely fork over the extra $99 for the second shirt. Then I was also thinking I might need some warmer pants... maybe some sort of hat or scarf... socks...

I find myself in this sort of situation all the time. I already have Lulu Lemon pants from when I took up yoga in the summer (I only attended one class in the end). I also bought a yoga mat. I haven't opened it up once.

Then there was the time I decided I wanted to take up skiing.

This is serious. It's time I sought professional help. Financial advisor, here I come! Does that cost money???

Cracking under pressure

I thought peer pressure ended in the 12th grade, but I was sadly mistaken. I've jumped on the blogging bandwagon as it seems like the new way to stay in touch with everyone.

But I've decided to try to make this blog useful. I've always wanted to write a column on the challenge of saving money in the city but I was never brave enough to pitch it. So here it is. Follow me as I work hard to change my spending habits.

I currently live downtown, work downtown and do everything in between downtown.

I am out of school and trying to pay down my student debt. But that's difficult when my walk home takes me through a cute market full of interesting vendors, a good-sized shopping mall, and a busy street with cute boutiques and stores. Everywhere I look there are things calling on me to buy them. To often I cave.

For instance, today I was heading home through the mall and I wasn't feeling so well. My stomache hurt and it was cold outside and I really wasn't looking forward to the walk. Then the Body Shop came into view. There was a sale on room fragrances - 3 for $16. Nevermind the fact that nobody needs that much room fragrance for a small downtown apartment, I walked in and promptly purchased three room fragrances. And a ceramic ring to put on a lightbulb to diffuse the fragrances into my bedroom. I don't even think I like one of the scents.

I need help, and I'm going to get it. I hope you follow me along for the ride.