Surprises can be great - surprise birthday parties, free puppies, lotto wins etc. but they can also trip you up. In budgeting I have it literally down to the dollar what I can spend each month and the rest goes to debt repayment. A slip-up in planning or a surprise (large or small) throws the plan off quite significantly.
I know that I will be getting a healthcare bill in the next couple weeks for my monthly contribution to the provincial medical plan. I've never had to pay it before because I was in school and didn't make enough money to HAVE to pay for it (I was exempt when I was po') but a downside of sending in my tax return was that now the tax man and the medical people know how much I made last year and now it's a little too much so I have to pay up for the medical services I don't really use. (knock wood)
It's retroactive to the beginning of the year so it'll be about $250. That's a big chuck of my monthly taking and pretty much what I spend on groceries, so if I had to come up with it out of the blue it would be quite a hardship, and this isn't even that much money! If that's not a reason to have savings I don't know what is! There's a distinction to me made here.
I have two savings accounts. One is for "fun" like flights and trips and one is for emergencies. A medical bill, which if I was paying attention at all when I signed up with the plan I should KNOW the bill is coming, is not an emergency. I can easily pay the medical bill with my money in savings, but it's coming out of the fun pile. Emergencies are just that, unpredicable expenses which come out the blue.
See you later $250, I'll just stay closer to home this summer :( whamp wammm - At least I get to eat next month!!
----
Did anyone sign up for some WeSeed.com stocks? Mine tanked today!
Showing posts with label emergency. Show all posts
Showing posts with label emergency. Show all posts
Monday, May 11, 2009
Tuesday, March 31, 2009
The Taxman Cometh
Well I made it to the end of March relatively well with limited overages. One thing I have to say is that when last Saturday rolled around I official began April budget-wise, and now, one weekend and 2 surprise house guests later I'm already down about $100 in borrowing from April's money. Bad Jen! Bad.
I will never, ever stay within budget if I begin the month in a handicap, so I'm using the lovely tax refund I will receive to beef up my emergency savings and a small amount of it will go to even out April's budget and perhaps buy me some badly needed work shoes, my $20 Payless flats have been rocking some massive holes for a few months now. I think it's time.
I sent my taxes in via Netfile last Friday so I should be getting my return soon. I'm getting about $2400 back this year which is awesome. I had planned to pay off most of my outstanding OSAP loan from University, but since my job future is questionable (whose isn't?), I thought that making some savings should be a priority. So I'm sending $1000 to my super serious savings account and $500 to my semi-serious account since it was recently depleted when I jumped on airfare for two upcoming trips (May and October, what can I say, I'm a planner).
The other $900 will go towards doing something I've meant to do for months. My bank account is a no fee account if I have a balance of over $1000 in my account. Because this has never been consistently the case, I also have overdraft protection. The regular account fee is about $4 and overdraft is $3. If I just keep $1000 in my account and get rid of my overdraft (having created my own cushion) I will save $7 a month or $84 a year, or $840 in 10 years. Small peanuts? I think not.
I would encourage people to see how much you can save with reading the fine print on your bank statements or your banking website. I've given up using my debit card for everyday purchases so I have the lowest cost account possible (which gives me 10 free transactions) and now it will be free. Some companies like PC Financial and different credit unions offer free accounts with no minimum. I'm in the interest of keeping a great relationship with TD Canada Trust for now since I've been there for 14 years, but look at your options.
As far as your tax return, don't delay! You pay something like a 5% penalty if you submit it after April 30st, so get on it.
I make doing my taxes a delight every year by taking extra money off each of my paycheques ($40/pp) so I don't have to pay anything at the end of the year, even if I do a bit of freelance work on the side. It guarantees that for now, while I'm mortgage and investment free, I'll get back at least $1000 a year. It's only so much higher this year because didn't work full time the whole year and I still have some school and tuition credits from last year since I was finishing up my degree. Yay money back! I'm pleased I'm spending it wisely too, it's not getting my OSAP paid off, but I sure have some good piece of mind.
I will never, ever stay within budget if I begin the month in a handicap, so I'm using the lovely tax refund I will receive to beef up my emergency savings and a small amount of it will go to even out April's budget and perhaps buy me some badly needed work shoes, my $20 Payless flats have been rocking some massive holes for a few months now. I think it's time.
I sent my taxes in via Netfile last Friday so I should be getting my return soon. I'm getting about $2400 back this year which is awesome. I had planned to pay off most of my outstanding OSAP loan from University, but since my job future is questionable (whose isn't?), I thought that making some savings should be a priority. So I'm sending $1000 to my super serious savings account and $500 to my semi-serious account since it was recently depleted when I jumped on airfare for two upcoming trips (May and October, what can I say, I'm a planner).
The other $900 will go towards doing something I've meant to do for months. My bank account is a no fee account if I have a balance of over $1000 in my account. Because this has never been consistently the case, I also have overdraft protection. The regular account fee is about $4 and overdraft is $3. If I just keep $1000 in my account and get rid of my overdraft (having created my own cushion) I will save $7 a month or $84 a year, or $840 in 10 years. Small peanuts? I think not.
I would encourage people to see how much you can save with reading the fine print on your bank statements or your banking website. I've given up using my debit card for everyday purchases so I have the lowest cost account possible (which gives me 10 free transactions) and now it will be free. Some companies like PC Financial and different credit unions offer free accounts with no minimum. I'm in the interest of keeping a great relationship with TD Canada Trust for now since I've been there for 14 years, but look at your options.
As far as your tax return, don't delay! You pay something like a 5% penalty if you submit it after April 30st, so get on it.
I make doing my taxes a delight every year by taking extra money off each of my paycheques ($40/pp) so I don't have to pay anything at the end of the year, even if I do a bit of freelance work on the side. It guarantees that for now, while I'm mortgage and investment free, I'll get back at least $1000 a year. It's only so much higher this year because didn't work full time the whole year and I still have some school and tuition credits from last year since I was finishing up my degree. Yay money back! I'm pleased I'm spending it wisely too, it's not getting my OSAP paid off, but I sure have some good piece of mind.
Subscribe to:
Posts (Atom)
Posts
