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.

Frugal Vacation Living in Montreal: special even tonight at Lafontaine Park

It’s a rendez-vous tonight at 9pm at Lafontaine Park in Montreal! Never notice the theatre of Lafontaine Park? I did several times, but it’s seemed to be always close. But tonight, the theatre, which name Théâtre de Verdure, will be open this evening for the projection of Xavier Dolan movie J’ai tué ma mère. It’s being show during Gay Festival Divers/Cité starting this week.

My Stop Working Strategy: what my investment life could be like for the upcoming years

I wake up early for once (9:45AM)…. Beautiful sunshine today in Montreal. I am waiting for my Swarovski jewelries delivery. I guess it should be for today so I am staying home and I personally do not mind at all but I may escape later on today. I have all that laundry to do still waiting for me. I have a few Web projects I want to work on it. So I guess this is the best time! Especially I am very close to my payout in one of my online earning program. While working yesterday, I work on my budget and I came alone with those:

If things remain the same, my yearly income, before taxes, will be of around 35 000$. Not much, but if I exceed this amount, it will be very bad for my taxes, especially knowing that for this year, I can only contribute to max around 7 000$ to my RRSP.

35 000$ - 7 000$ = 28 000$

At 28 000$, I won’t have to pay too much in taxes, it should be just like for this year. And I may earn less than 35 000$ actually, this in just a big average including my 2 jobs and my dividend earnings. As salary, I earn around 31 000$ after taxes. Not much either, but check it out…

Roughly, let’s say that my monthly expenses are at 1 200$ per month.
For 12 months: 14 400$

31 000$ - 14 400$ = 16 600$

This is leaving me a nice 16 600$ to invest. My latest investment in Corby Distilleries (CDL.A) really did the job, in the sense that it calms my appetite for trading for a little while. With this one, my portfolio is feeling kind of complete. But what’s not complete is my dividend income. So I guess I don’t have other choices than to continue right?

Here are some ideas I came with to where to invest in order to increase a bit my dividend income, but also to increase my portfolio value:

200 units of ENF.UN
Investment value: around 3 000$
New dividend earned: 230.40$

200 units of PGF.UN
Investment value: around 2 100$
New dividend earned: 168$

100 stocks of ECA
Investment value: around 3 400$
New dividend earned: 100$

100 units of JE.UN
Investment value: around 1 400$
New dividend earned: 144$

300 units of DHF.UN
Investment value: around 6 000$
New dividend earned: 552$

New dividend + current dividend (excluding the ones earned inside RSP)
1 194.40$ + 4 229.47$
= 5 423.87$

By the end of 2011, I hope to have an increase of close to 1 000$ in dividend income. But if I do so, this mean I won’t pay anything extra on my debt, because all extra money earn will go for my investment. So what’s the plan for 2011? Paying debt or dividend investment? It will all depend of the feeling I will have at that time. But I always consider paying debt as being extremely boring and I may just continue my investment journey.

Think about it:

100 000$ assets (it should be reach by the end of 2010) + 16 600$ (new investment money for 2011) + 1 000$ (new dividend money) + 4 229.47$ (current dividend money outside RSP) + 100$ (let’s say, an extra earn from the DRIP) + 324.22$ (current dividend money inside RSP):
122 253.69$

And 2010 is not even over yet! For August-December 2010 period, I guess I will have a 5 000$ available for investment. Those new investment will bring more dividend in. Maybe 200$ or 300$?

So let’s add a 300$ to the 122 253.69$
= 122 553.69$

That’s nice, but we are not done yet! Why? Well, because of the increase of the value! Here, I will add a reasonable 6%: 7 353.2214$

122 553.69$ + 7 353.2214$ =
129 906.91$

This is just an overall scheme for what could happen for 2011, I may not invest at all in those companies. But it’s nice to get a big picture idea, just to see where dividend investment can bring me at. It doesn’t take that much money to make great investment. In my current condition, I can support my living and my investment project. Dividend investment is affordable to any kind of investor, even while living under 40k per year.

This is kind of a funny game actually. Ok, we saw it for 2011. Let’s repeat the same exercise until 2015 if you don’t mind. Let’s add 16 600$ in new investment money and let’s add a 1 000$ new dividend income per year, until 2015.

For 2012:
129 906.91$ assets + 16 600$ (new investment money for 2012) + 5 329.47$ (dividend money outside RSP) + 324.22$ (current dividend money inside RSP):
152 160.60$

6% increase value = 9 129.64$

152 160.60$ + 9129.64$ =
161 290.24$

For 2013:
161 290.24$ assets + 16 600$ (new investment money for 2013) + 6 329.47$ (dividend money outside RSP) + 324.22$ (current dividend money inside RSP):
184 543.93$

6% increase value = 11 072.64$

184 543.93$ + 11 072.64$ =
195 616.56$

For 2014
195 616.56$ in assets + 16 600$ (new investment money for 2014) + 7 329.47$ (dividend money outside RSP) + 324.22$ (current dividend money inside RSP):
219 870.25$

6% increase value = 13 192.22$

219 870.25 + 13 192.22$ =
233 062.47$

For 2015
233 062.47$ in assets + 16 600$ (new investment money for 2015) + 8 329.47$ (dividend money outside RSP) + 324.22$ (current dividend money inside RSP):
258 316.16$

6% increase value = 15 498.97$

258 316.16$ + 15 498.97$ =
273 815.13$

So this drives us to 2015, with a total of 273 815.13$ in assets and 8 329.47$ in dividend earned… Those calculations do not consider dividend payers increase. Dividend payments increase over time, so I probably be at more than 8 329.47$ in dividend income in 2015. Also, the current scheme does not include any debt payment, as you may have notice… So will I be free by 35? Not if my income do not increase. If my situation remains the same, I could be free by 40. But not 35. Anyhow, this was pretty fun! The earlier you start the investment game, the better it is!

I am now at 89 982.09$

This is just soooooo hilariouslyyyy funnyyyyy. I am just not even at 20$ away from my first 90 000$. To my savings of July 22, I add my latest paycheck which was of exactly 174.79$. Nice increase overall. Just my savings won’t be at the same amount at the end of the month because of payments that I need to make. So I really wanted to update my portfolio tonight because I taught I was there, at 90 000$. But life is funny in a way…… I am not there yet! lol…

For now, I am at 89 981.09$... I never did it, but I should include that 1$ I have deposit a while ago in my RBC banking account (just to keep the account open)…

So this make in real 89 982.09$... lol. I am now just missing 17.91$! I might have that money here at home because I have a lot of pennies here at home that I place in little plastic bags. But it’s not tonight that I am going to count all of my 1 cent, 5 cents etc… But I am pretty sure I might have at least 17.91$ in pennies. I just cannot say for sure. Anyhow, that was short!

I am now at a fantastic 89 982.09$ and I am a bit tired now, so good night.

My stock investment portfolio in date of July 25, 2010

Savings:
958.89$

Non registered Investments:
Stocks and Units investment portfolio
Sprott Inc. (SII): 1 745.85$
Timminco (TIM): 106$
Blue Note Mining (BNT): 38$
Bank of Nova Scotia (BNS): 5 312.72$
Hanwei Energy Services (HE): 105$
Methanex Corporation (MX): 2 461.70$
Fortis (FTS): 3 052.80$
Pembina Pipeline Income Fund (PIF.UN):
7 977.95$
Just Energy Income Fund (JE.UN): 9 644.14$
Yellow Pages Income Fund (YLO.UN):
2 655$
Bell Aliant Regional Communications Income Fund
(BA.UN): 2 603$
Pengrowth Energy Trust (PGF.UN): 2 111.20$
Enbridge Income Fund (ENF.UN): 4 553$
Corby Distilleries Limited (CDL.A): 3 064$
Davis + Henderson Income Fund (DHF.UN):
1 769$
Premium Brands Holdings Corporation (PBH):
2 558$
Cash: 25.48$

TOTAL: 49 782.84$

Tax-free savings account (TFSA):
RBC O’Shaughnessy Canadian Equity Fund:
2 669.70$
The Consumers’ Waterheater Income Fund
(CWI.UN): 1 886.68$
Sprott Canadian Equity Fund:
4 966.69$
Dumont Nickel Inc. (DNI): 359.38$
Cash: 57.33$

TOTAL: 9 939.78$

RSP investment portfolio:
Claymore Gold Bullion ETF (CGL): 3 619.98$
EnCana Corporation (ECA): 3 222$
Emera Incorporated (EMA): 5 320.68$
Cash: 30.26$

CIBC Dividend Growth Fund: 497.79$
CIBC Emerging Markets Index Fund: 415.42$
CIBC Monthly Income Fund: 994.19$

Energy and Base Metals Term Savings (Indexed term savings):
503.46$
Natural Resources Term Savings (Indexed term savings):
502.06$

GIC National Bank: 1 192.64$
GIC Plus: 500$

TD Canadian Bond: 114.82$
TD Monthly Income: 104.78$
TD Emerging Markets: 81.54$
TD Energy: 80.94$
TD Precious Metals: 106.44$
TD Latin American Growth: 94.46$
TD Entertainment and Communications: 106.56$
TD Dividend Growth: 195.41$
TD U.S. Mid-Cap Growth: 99.79$

Maritime Life International Equity Fund
(Templeton): 612.37$
Manulife Simplicity Growth Portfolio: 840.34$
Maritime Life CI Harbour Seg Fund: 979$
Maritime Life Fidelity True North Seg Fund: 942.52$
Maritime Life Trimark Europlus Seg Fund: 588.78$

Great-West – various: 1 753.62$

RBC Canadian Dividend Fund: 503.79$
RBC U.S. Mid-Cap Equity Fund C$: 1 743.19$
RBC Global Resources Fund: 822.13$
RBC O’Shaughnessy International Equity Fund:
578.73$
RBC O’Shaughnessy All-Canadian Equity
Fund: 1 029$

GIC Canadian Market: 1 000$

TOTAL: 29 176.69$

Social Capital at Desjardins Membership share
for 3 accounts: 40$

Savings + Stocks, units, mutual funds + Tax-
free Savings account + RRSP + Online Income
(82.89$):
89 981.09$

Would it be a hello 90 000$ anytime soon?

My vacations are really great. I had enjoyed my free time. I didn’t do that much, if not blogging a bit and writing a blog about Youn Sun Nah. Her birthday is on August 28. Mine is at a very close date, but it’s basically all we have in common lol :) Youn Sun Nah is a Korean jazz singer who performed at the International Jazz Festival of Montreal. Those pictures were taken after her performance. I try to load those 2 pictures on my HubPages article but the loading was terribly slow. So instead, I am publishing the pictures here so I can publish them on my HubPages through the Web. Isn’t she so nice, taking a pose for me? I think Youn Sun Nah is very gently actually. And her voice is terrific, amazing, grandiose. She knows Korean, French, English and Potuguese. Listen to Youn Sun Nah right here.

The wheater today in Montreal was quite grey as I finish my Saturday shift at my weekend job. I just don’t know if I should stay in blogging and doing whatever or go outside, walk and stuff. I am working also tomorrow but that’s all right, I really need the money, especially now. I had to pay over 500$ on my credit card by the end of July in order to avoid the interest rate. Currently, I am able to do the payment as I will take money from my credit line to pay over the credit card. But also, surprise, the lovely Quebec governement send me my driver renewal form… A nice 86$ that had to go, just right before my birthday… Right on time! Thank you thank you thank you Quebec lol……. Just that kind of thing that just ahhhhhh yehhhhhhhhh (!!!).

After my credit card and my driver renewal payment, I will have just a few dollars left so I really need my vacation paycheck if not I will have to borrow on my credit card to pay my rent. Lately, I had received the following dividend: 14.49$ from Pengrowth Energy Trust (PGF.UN); 29.95$ from Enbridge Income Fund (ENF.UN) and 24.17$ from Bell Aliant Regional Communications Income Fund (BA.UN). I had now exceed the 2 000$ in dividend arning for 2010! I am now at a great 2 006.44$ in dividend income that I earned so far for 2010. So the little sums of money keep adding up!

I update my investment portfolio just a couple of days ago. At a point, I taught I was going to hit the 90 000$ and I was getting all excited! I miss the 90 000$ from only a couple of hundreds of dollars. My latest investment in Corby Distilleries really worth it! Everything is just going very fine right now. My non registered stocks and units portfolio close latest Friday session at 49 643.27$! This mean that I may be at 90 000$ at this time, knowing the good result of Friday for the TSX. But to really know if I am 90 000$, I will need to update my portfolio. Once again! I have also tomorrow to update it. I am not too thrill about doing a portfolio update just now even if it’s to know if I am at 90 000$ or not. It’s just too much work and calculation for me at this time. I do the whole thing manually, it’s part of my calculation hobby. But at a point, I am getting enough of portfolio update. I just cannot imagine what it’s going to be like when I will be at more than 100 000$. Because of course, one day, I will be at 100 000$! But it will require even more time to update my portfolio… Sometime, I feel like I am managing a mini-hedge fund. I am king of getting good at it, don’t you think so? lol… Got to take a laugh sometime, it would be so easy to give up and so easy to stop saving money... It could be so easy to just cash in the dividend.. :)