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Saturday, April 17, 2010

Money, dividend and budgeting for the month of May

The month of April is not over yet but I am already thinking my budget for May. Why? In May, I will start paying on my 10 000$ RSP loan. The monthly payment is about 107$. Also, one of my credit card balance transfer offer at 3.9% is getting to expire on May. For the first time ever, I am not quite happy with CIBC Visa because I had been told 2 different things by 2 reps… I should get organize better, but I got busy with all kind of different thing, not to forget about my laid off of BMO Bank of Montreal. Please do not forget about that one for me ok? Since I got laid off from BMO Bank of Montreal, I didn’t purchase a single piece of clothes. No new jeans, no new t-shirts, no new bra… NOTHING lol.. Not even a hair cut…. Talking about living miserably….

Financial success reside in a budget, and sometime on a really tight one

I write it on HubPages before, I am a natural saver. This allows me to manage everything without budgeting. The budget is kind of in my head and I never needed to write down expenses, etc… But my newest loan payment coming by, I needed to review my situation just to make sure everything fit at the right place, that I got laid off from BMO Bank of Montreal or not. Ok?

So what’s going to happen, several months after my laid off of BMO Bank of Montreal? Well, just the usual. Let’s check it out:

RSP credit line loan: 107$
Credit line 1: 150$
Credit line 2: 100$
Student loan: 100$
Visa 1: 150$
Visa 2: 100$
TOTAL: 707$

The minimum payment required on my debts is of 707$. To this amount we need to add my rent, 545$, and my Internet, 35$. All combine together, it will make 1 287$. To this amount, I add 400$ more groceries, coffees and everything else. It bring the total to 1 687$. Did you notice something? I remove the metro pass!

Talking about living frugally: I find an easy way to save 65$ per month

This is kind of a drastic choice for me who always enjoy traveling in the Montreal metro but as my budget is getting tighter and that I need to exercise more, anything I can do to save money and getting a bit more in shape is more than welcome. I just cannot deprive myself on coffees and other little eating out because it would just make me feel more miserable that what I am experimenting right now lol. So starting May 2010, no more metro pass! I am about 45 minutes walking distance from my day-time work. My weekend job is actually a walking distance away from my apartment. I can easily live without a metro pass. Just going to be rough for the first couple of days I guess. But it worth the try, 65$ is kind of good money. I am happy that I cross over this solution. Just for the period of May-November itself, I could save 455$.

Pembina Pipeline Income Fund (PIF.UN) dividends are in the house!

I just received 53.69$ in dividend from Pembina Pipeline Income Fund (PIF.UN). Strangely, the DRIP is on. I am earning actually 3 extra units of PIF.UN. I will have to call T D Waterhouse because last month, my PIF.UN dividend didn’t DRIP. I previously call T D Waterhouse about it, and nothing had been done. On a certain way, some brokers of T D Waterhouse are not willing do no anything for you except selling or buying stocks for you as they can earned commission. That’s how it work at T D Waterhouse. If you have T D Waterhouse as broker, check your statement very carefully because after 60 days, if there’s a mistake of what so ever, T D Waterhouse won’t do anything. They are like that. In a way, T D Waterhouse and BMO Bank of Montreal share a lot of things. Both institution kind of suck on their own little way.

Anyhow, I had been thinking, calculating…

I have actually other projects on the way!


Maximize my TFSA for 2010: Last year, I did some mistake with my TFSA. I taught withdraw made from the TFSA could be invested on the same year, but its not the case. Withdraw can be reinvested yes, but only 1 year after… I just waiting for my tax papers and I am going to look I what I did last year.. I am still confused about what I did, one year later… Isn’t a problem to be rich?

100 new stocks of Corby Distilleries Limited (CDL.A): So far, Corby Distilleries Limited (CDL.A) had brought great stability to my portfolio. I won’t be able to invest in 100 stocks of Corby Distilleries Limited (CDL.A) for next month, but it might be good for the month of June! This will allow me to benefit from the DRIP being offer so far from Corby Distilleries Limited (CDL.A). I should be able to earn at least 1 extra stock per distribution period.

Applying to a credit card increase at TD Visa: I have more than 70 000$ invested at T D Waterhouse, if it’s not even to get a 3 000$ limit increase at TD Visa… But we never know right? This is something I didn’t do yet but its something I will do online before the end of the weekend. And what if my credit line limit increase got refused? Solution: turning my current CIBC Dividend Visa card into one of CIBC credit card at an interest rate of 11%. My 3.9% interest on an amount of 2 735.78$ is ending on May. Close to 3 000$, the amount is kind of huge, but no way I am going to sell one of my investment without hitting first my first 100 000$. It’s all in the head; it’s stupid and hot at the same time. But I have a NO SELL rule…. I could ask for a credit line at RBC or something else, but I do not want to hurt my credit score too much. Not that I care that much about my credit score, but if I ma being refused a credit card limit increase, what are my change to get credit someplace else? Isn’t a difficult situation to deal with?

But we experience this when we applied for a RSP loan: I got refused at Bank of Scotia (they apparently didn’t give a damn about my 100 000$ assets project) but got approved at TD Canada Trust. This meaning that if you are getting refuse at some place, doesn’t mean you will automatically get refused at another place. My best advice: go for it and let it go! That’s the advice I am following myself.

At this point, the situation is pathetic, but I don’t want to sell, it’s my own fault. Just because of a revenge plan I have in the back of my head, spinning lol. Being rich is not as easy as it look like.

I could make a happy living on 1 000$ per month living on dividend

Living on dividend is possible. 1 000$ is not that much of money needed. Only 12 000$ in dividend earning is needed. But before getting into it, I will need to clear off all debts, have extra cash available as an emergency funds (I was thinking of 20 000$) and, of course, reach 12 000$ in annual dividend income. I won’t be able to achieve this in the upcoming year, but what about 3 or 4 years from now? It could work out, but still a lot of work ahead.

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