Posts Tagged ‘Canadians’

PF Weekly Reading List #16- I Give Up……………

Posted: April 19, 2013 in PF Weekly Reading List
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Change Yourself I Give Up

What? I give up… it’s probably one of the hardest things I would have to decide to do or anyone for that matter. A part of us shatters when we are forced to make the decision to give something up in order to get out of a financial mess that we created or for reasons beyond our control.

When times are tough and it’s hard to make ends meet or we simply are drowning in debt we have to give something up. Sure we may NOT have to give something up and could keep juggling money from credit card to credit card or consolidating debt in order to ease the pain but is that enough? If you answered “that’s all we have left to do” the you need to find a way because you can’t live your life like that. It won’t last forever, the walls will crumble down on you eventually.

For some credit cards and consolidating debt over and over seems like the right thing to do but for others its way out in left field. For those that would do just about anything to get out of debt they would rather ‘give up’ something than to incur more debt along the way. It’s no secret that Canadians are sinking in mounds of debt we read about it all the time and for many reasons, job loss, work injury, illness, divorce the list could go on and on.

Never Give Up On Yourself

There are also many people who are in these situations that have come out on top because they didn’t give up on themselves. When I hear people say they can’t, I don’t know how, there is no way, it’s impossible. That’s giving up on you, don’t do that. We all have to grieve what life hands us if it’s not what we anticipated or dreamed of and for many it’s been a rotten life but we don’t have to continue down that path. Believe. If you have a crappy job for example make the most of it by finding ways to improve your skills to better your career with another employer. Think positive.

There comes a point though when we need to put all that behind us, move forward and figure out what we are going to do to make the money stretch or work harder for us.

I Give Up…

I was reading an article yesterday which was about asking Canadians what they would “give up” for $250 in extra savings every month. My mind drew a blank as I simply had no idea what I would give up if debt was taking over my life. A survey by ING direct provided information that many Canadians don’t think they are saving enough money each month.

I agree though that with simple planning and budgeting there is light at the end of the tunnel no matter what your income is.  If you don’t make enough to cover the bills the options may be  clear to you 1- make more money 2- give something up. If there’s nothing left to give then you may need to make extra money, some how, some way. The other options may be to move somewhere cheaper, move where the job opportunity takes you or start-up your own business and work for yourself.

Our friend Katrina did just that, a single mom with 2 kids who works full-time and needed more money, so she started her landscaping business to bring in more money. A friend of mine who is on disability has to be one of the smartest guys I know and also has a small side hustle. He can’t work so the family cuts down on all the expenses to fit the budget. It’s hard for him to watch his wife go work every day while he stays home to clean and cook. He said to me that “I have to do what I have to do for my family”.

If that means he gets clothes from a second-hand store or has to cut down on the groceries with no chips and snacks then they will do it. The kids don’t complain and know that their parents are doing what they have to so they don’t lose their house or their car gets taken away.

“We don’t want to be those people on that television show “Til Debt Do Us Part”  as a couple at their wits end. We want to fight the battle and never let it get that far”.

They doesn’t spend more than they earn and he also doesn’t complain about his disability to anyone. He makes his life work “for him” even though he says parts of his life gave up on him. He makes extra money refinishing items he finds for free and sells them to keep himself motivated and to feel like he is giving back.

He says ” the worst thing you can do is feel sorry for yourself, that doesn’t pay the bills”. He searches online for freebies and sells them for more money. He told me there is always a way to make more money if you set your mind to it. The best part is he’s always smiling.

Get Rid Of Debt

I know many of my fans who read Tony’s debt story on the blog yesterday about how he is pulling his family out of $100,000 in debt, it gave them some hope. It really made me realize that sometimes in life we have to give things up to solve a problem. I’m sure Tony would agree that he would do whatever it takes to get his family above water even giving up stuff for a short period until they are at a happy place with their finances.

It’s harsh to say sometimes but when you’ve already spent money that you don’t have you may just have to suck it up and do without until you can get out of a mess. Some Canadians say they would give up social media for $250 extra each month to put towards their debts.

With all the available credit surrounding us like a drug it’s hard to say, No I’m on a budget or no, I need to get out of debt first before we go on a trip and blow more money that we don’t have.

Is it that sense of entitlement that creeps in here for some people?

It may make us feel better to have some liquid cash set aside in emergency savings which I think we all should have so we don’t turn to more credit when in dire need but how many actually use that emergency savings for the said purpose, an emergency.

Nearly three-quarters of Canadians say they would give up social media for three months in exchange for the chance to set aside that extra money, according to a survey released this week by ING Direct.

We Give Up ..

I was thinking about this most of the day wondering if I could give up social media and the reality is , no I can’t. Well, I could but it wouldn’t be my first pick to knock off put it that way. If I had no other choice, you bet I would, there’s always the library.

Last year I gave up smoking which was likely the hardest things I’ve ever had to do. If you are addicted to smoking, drugs or alcohol you know that you don’t really give it up for the money first you give it up to live first, so that didn’t count for me.

When it came down to the nitty-gritty If we had to give up something in our budget to save extra money we’d likely give up cable. We don’t watch much television as it is and it’s costing us around $60 a month. If we were that hell-bent on watching a TV program we could likely watch it on the computer or pretty Smart TV that we own.

That wasn’t enough though and we needed to think of more things we would give up. This reminds me of the time Mrs.CBB and I sat to do our first budget and decided to make 2 budgets. One budget was for the present and the other was just in case one of us lost our job, got injured at work or something drastic happened that we would have to survive on one income. We designed the second budget with all the things we would have to give up in order to survive and not dig ourselves into debt.

On an “I” note, I would also say bye-bye to my weekly allowance which I really only use for beer and the occasional coffee when I’m out on the road and my travel mug is empty. If I had debt that I “REALLY” wanted to get rid of I’d suck it up and scrap the allowance. Other parts of our budget we would smash is the cell phone, eating out, major renovations etc.

I’m sure we could pick it apart but the main thing is we are willing to give something up in order to have a better nights sleep and money peace in our relationship.

Love and Money

Many people ask us how we can be so happy all the time and it’s because we are so in love with each other. It’s also because we chose to give up stuff along the way together while living our life the way we want to. We plan and budget our money in order to live this life of  debt freedom at a young age.  It’s been a bumpy ride with lots of falls but we got right back up again. We will continue our budgeting journey because it has worked for us and it makes us happy.

Like Tony, his family has had to give things up and make choices they may not have wanted to but they did and they too are pushing forward, not living in the past, not complaining of how life dealt them a crap deck of cards. Living a frugal life while you are financially under construction and not giving up while you give up something is a better wau to build your castle than to build nothing at all.

We all deserve happiness, but sometimes we have to create that happiness on our own by giving up something to get something.

What would you give up for extra money in your budget to pay down debt?


Personal Finance Weekly Reading List

PF WEEKLY READING LIST

Here is this weeks reading list which includes some of the best blog posts from many blogs that I interact and comment on and who also have a common interest in CBB. I hope you all enjoy this weeks round-up. There are a few more than normal that I really enjoyed so I hope you enjoy them as well! -Mr.CBB

Mr.CBB's Olive Bread

Recipes/Frugal Blog Posts of the Week

I made more Olive Bread yesterday although I made it with white flour. I honestly thought they were turning into the bread blobs as they wouldn’t stop rising. We were thinking about a plan B just in case they fell off the baking stone. I made two giant loaves of bread and they are much bigger than the photo shares with you. Just check it out above, can’t wait to get into these this weekend with our friends!

Top Recipe: Three Ingredient Banana Chocolate Chip Cookies – Coking Whims (check out how easy it is to make these cookies)

Inspirational or Funniest Post of the Week

Inspirational: Making Sense of Cents- “My Dad Was Awesome” Michelle share a short story about her dad and why he is so awesome. Truly inspirational and another reason to enjoy life to the fullest with those you love. Funniest: Budget and The Beach : Do I Need An Emergency Fund: One Cats Dilemma  Tonya shares a guest post by  her feline friend Pepe the cat. Smart, funny and just all around an important message for all pet owners to read.

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New Year’s Resolution:Canadian Debt and Tackling Personal Finances

Posted: December 28, 2012 in Finance, Our Family Budget
Tags: , , , , , , , , , ,
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Tackling Personal Finance 2013

Tackling Personal Finance 2013

This year’s New Year’s resolution: Tackle my personal finances in the face of Canadian debt. This should be what many Canadians are planning for 2013 but are they really? Just about everybody goes to the doctor or walk-in clinic if there’s something wrong with their health, and they take their car to the mechanic if it breaks down. If you ignored these problems your health would deteriorate and your vehicle wouldn’t run, so why would you ignore your personal finances?

Canadian Priorities 2013 Sun Life

Canadian Priorities 2013 Sun Life

Statistics Paint  A Picture…..

In a recent study initiated by Sun Life, 55% of  1,277 people surveyed ranging in age from 18-55+ stated they weren’t happy with their personal finances for the year 2012. Of those 1,277 people, only 30% wanted to do something about it- and yet 68% stay strangely optimistic. How can you be so optimistic for the forthcoming year and have financial woes at the same time without ignorance?

Are people in denial over the amount of their debt or the fact they have debt altogether? Statistics from various sources including top Canadian banks suggest that the average household Canadian debt is somewhere in the region of $114,000, though most of that will be mortgage. I can’t see how the current economy is to blame for debt problems of Canadian households as the debt was already present before the economy tanked way back in 2008. True, the majority of debt was accumulated from a lucrative housing market that has only recently started to slow down, but there’s also a startling amount of consumer debt.

The Answers Are In Front Of Our Eyes…..

The problem lies in the uncontrollable spending habits of Canadians and the fact they are spending other people’s money for the things they want and forgetting that sooner or later those people are going to want it back. New cars, electronics, clothes, furniture and an enormous house to put it all in all build up to a pile of debt some people are finding hard to deal with. Daily advertising for consumer goods and services and peer pressure all contribute to an ever-increasing problem. Saying you “need” the latest iPhone 5 is great if you can justify it, but I can guarantee 75% of the people who own them could live their lives with a much simpler mobile phone at a quarter of the price. We’re not like our parents or  grandparents; we don’t want to make do, we want the biggest and the best and we want it all right now.

No More Buy Now Pay Later…..

I’ve always prided myself on the fact that I’ve gotten as far as I have with hard work and determination. Sure I’ve bought things in my life that I wanted more than I needed but I had the cash to pay for them. I’m a strong believer in “don’t buy it unless you can afford it”, leaving me with no payments to make, because I didn’t buy it on credit. Maintaining what you’ve got is also a strong belief of mine. I see it everyday people throwing perfectly good stuff away when all it requires is a little love and attention. Laziness also contributes to bad finances due to the added costs of convenience, usually at premium rates.

The “Snow blower” to some people is the all-important winter item, but nothing that a shovel can’t handle. Agreed, when you get to a certain age or you’ve got health concerns, shovelling probably isn’t going to do you much good. A vast proportion of people in their 20s, 30s and 40s could manage shovelling the drive, but instead choose to spend between $600-$1600+ on a machine.

Just about every single company that sells products is going to advertise and these days consumer advertising is everywhere. It covers a multitude of products and it will probably let you know that you can’t live your life without what it’s selling. The trick is ignoring the hard sell and only buying what you need.

Optimistic or Pessimistic New Years 2013

Optimistic or Pessimistic New Years 2013

Optimistic or Pessimistic?

Through analyzing the data you can also see that there’s a generational gap. The results for the 18-34 age range suggests less than half enjoyed a good year as far as their finances went, yet 73% remain optimistic. The older generations seem a little more conservative with their opinions and probably remain a little more true to their future and how they see themselves later in life and into retirement. The older generation should also have less debt due to paid-off mortgages, cars, senior-level employment, etc.

There’s also another worrying trend associated with the sheer amount of household debt and that is retirement. If Canadians are struggling with such high debt loads, how are they going to fund their retirements? I was probably no different from a lot of people in my early 20′s; I didn’t really think about retirement although I did take advantage of my employers pension scheme. The Canadian Pension Plan  will currently pay out a maximum of $986.67 a month upon your retirement, but do you want to try and live on that? If you’re renting your home, what are you going to use to pay for bills and groceries? Old Age Security may provide additional benefits to lower-income seniors if they are eligible.

At Canadian Budget Binder my goal is to inform you that with forethought, planning, research and a bit of hard work you, too, can get your finances back in order. Budgets define boundaries for your finances within which you can make realistic decisions that affect how your life will run. It’s not rocket science, nor is it a quick fix or a get-rich-quick scheme. Budgeting is more of a lifestyle choice based on the simple premise of spending less than you make.

For more information on the Sun Life 2012-2013 survey with a detailed infographic click here.

So, try this New Year’s resolution: Put your spending on a diet and tackle your personal finances by giving them a budget workout.

It's Not About How Much Money You Make It's How You Spend It

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