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Thursday, July 29, 2010

Money saving tip for debt management solution: my plan to save an extra 2 588.85$ per year

I am enjoying my last couple of days left of vacation. I work online a bit, made a few pennies which was enough to make me happy, but nothing in term of real big bucks lol. However, my vacations had been relaxing. I am waiting for my vacation paycheck tonight. I am just very curious to see if I am going to actually receive it or not……lol. Anyhow, I went saw Salt yesterday with Angelina Jolie. Salt might be the best movie of Angelina Jolie so far, if not ever. Nice summer blockbuster if you like action movies! Real soon Salt will become available among the other blockbusters dvd rental. Angelina Jolie is very great in Salt. It’s Angelina Jolie at her best.

I started to use my travel rewards credit card BMO Bank of Montreal MasterCard again. This specific card is an Air Miles MasterCard and the master card credit limit is of 4 000$. For a while, I was waiting for my credit card balance transfer to be completed and I didn’t have any credit card left to use knowing that I have a balance on my cibc visa card at a low interest rate of 3.9% until September. Once I have a credit card with at a low interest rate for a credit card balance transfer, I usually stop using that card, in order to not mess up with the low interest rate and the usual interest rate, often something around 19%.

This month, my credit card balance transfer was from my rbc visa card to my td visa card. It is now completed, I am now good for another 6 months at 4.9% on a 7 950$ balance. This will drive me until January. I am very grateful to TD Canada Trust for this low interest rate. I am good for another 6 months. This will make a one year at 4.9% for my visa credit card limit of 8 000$. My credit card minimum monthly payment for the 8 000$ balance is reasonable, less than 50$ each month. So I can easily manage this payment. It always needs to be done on time, before the due date. If not, I will loose the low interest rate of 4.9%. That’s basically the major thing that needs to be respected in credit card balance transfer. Another rule would be also to not exceed the visa credit card limit. Mine is 8 000$ for that specific td visa card. I had a headache for a while because my 4.9% was about to expired somewhere in October. On my late invoice, when I saw the offer was still on I didn’t wait. I proceed with a credit card balance transfer from my td visa card to my rbc visa card and than after from rbc visa card to td visa card. And here I am, all good until January! It actually really worth it to read your visa credit card statement! I did, and I find a quick and easy online debt solution to a credit card debt problem. I want the 100 000$ for 2010 even with a 37 000$ worth of debt. With my 89 000$ value in assets and 37 000$ in debt, I am not in a huge debt problems.

While thinking about my overall financial situation, I try to find new ways to save up some money. Those won’t make that of a difference on a short basis, but they will definitely help on a long term basis.

1-Stop dying my hair
I had been dying my hair for about 5 years in a row now. I went through several colors, from blond, brown to red. I really like myself in dark red and find it was the perfect color for me. But my latest coloration didn’t stay in my hair for very long and my natural hair color started showing up. I didn’t want to dye my hair again and so I told myself: why not stop? I didn’t see my natural hair color for about 5 years now and I don’t remember what I look like with my real color. I decide to give it a try. I didn’t dye my hair for the past 2 months or something like it and I decide to stop definitively.

Monthly money saves: 14$

2-No more monthly metro pass
I didn’t purchase a monthly metro pass since May, 2010. I like the experience. It wasn’t so bad during the hot summer time. I plan to continue living without a travel card for the upcoming months. I just wonder if this will work during winter time…..

Monthly money saves: 65$

3-Stop buying new shampoo products when I have many unused
This is a habit I have. Buying bottle of shampoo after bottle of shampoo, just to try new hair products. I purchase a new bottle when the one previously is not even finish. I have a full bag of shampoo products like that… So I won’t be purchasing new shampoo products for the upcoming months.

Monthly money saves: 6$

4-Using air miles reward program to purchase Second Cup coffees
At 2.21$ for a medium coffee, my daytime treat at Second Cup is costing me a fortune on an annual basis…

Check it out:
2.21$ x 5 times a week x 49 weeks (52 weeks – 3 weeks of vacation) in a year = 541.45$

I always bring some tea bags with me at me at work, but nothing is tastier than a Second Cup coffee. And most of the time, I find myself going to the Second Cup anyway, cheating on my nonexpenses goal like crazy.

With AirMiles, a 20$ Second Cup coffee card worth 170 AirMiles.

541.45$ / 20$ = 27 coffee cards……..

27 x 170 AirMiles = 4 602 AirMiles

Can I possibly satisfy myself with Second Cup coffees for one year without spending a penny?
Currently, my airmiles mastercard of BMO Bank of Montreal give me 1 air miles reward card per trench of 20$ in spending. Let’s say I spend around 350$ per month (overall). I earn 17 AirMiles per month…… 17 AirMiles x 12 = 204 new AirMiles accumulated annualy….. On top on this we can add 30 AirMiles earn per month by using AirMiles search engine. Which bring in 360 AirMiles.

I currently own 809 AirMiles… 809 + 204 + 360 = 1 373 AirMiles / 170 =
8 Second Cup coffee cards……

The trick would be to drink a mix of coffee and tea at work……. And not spend more than the 160$ giving by the Second Cup coffees card.

Monthly Money saves: 45$

5-Bring my lunch to my weekend job
Despite my low salary, I never bring or barely ever bring a lunch at my weekend job. I usually go at that nice bakery called Les Copains d’Abord located on Rachel… That’s where I spend at least 20$ each weekend lol.

20$ x 49 weeks = 980$

Monthly Money saves: 82$

6-Waive the service banking fee by keeping the minimum required in my checking account
I do my banking with Desjardins, so I don’t have to worry about major banking fees like the ones charged by BMO Bank of Montreal. At Desjardins, I am currently paying 3.95$ per month for 12 transactions. With this package, the minimum required for service charge exemption is only of 1 500$. Maybe not now but in the future, I may keep a 1 500$ in emergency fund. This will allow me to save 47.40$ annually in banking fees.

Monthly Money saves: 3.95$ (a bit more than the cost of a medium coffee at Second Cup!)

Those are some of my tips I will try to apply in order to save a couple of hundreds of dollars per month.


canuck said...

sunny do NOT give up the second cup of coffee or the bakery, these are the good things in is way too short to do without perks...believe me.

youngandthrifty said...

These are great strategies!

You COULD always get the Income Trust of Second Cup (forgot what the ticker is) and then they will pay you for your coffee each month! lol =)

Yeah, I had a post on the "Latte Factor", how much buying a cup of coffee each day REALLY costs you.. it's astounding.

I bring my lunch every day to work and only rarely go out for coffee =)

Anonymous said...

As for banking, why not try PC Financial or Coast Captial Savings for no fee chequing account?

I use PC Financial account, of course this is all online banking/ they have ATMs at Superstore and you can withdraw money from any CIBC ATM without costs. I enjoy the free debits and cheques that I use quite often in a month. Unlimited transactions. More importantly no required minimum balance!!


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