Note to self

I submitted an insurance claim today for diabetic pump supplies not covered by the grant and my most recent massage appointment.

It's been a while

I have a lot to say. At $40, the pedicure was disappointing. The polish smeared before I left the salon, and I still have visible callouses. I'll go back to doing it myself.

I suspect there's a $600 grant cheque from the Ontario government in my purse to offset insulin pump supply costs. It's been so busy lately; I've had no time for envelope opening.

My gas consumption is increasing rapidly, as are my thoughts and desire to take the car completely off the road, and live car free.

On the brighter side, July is my $400 daycare month. My increased evening care expenses should in principle bother me slightly less.

I sold off my Bluesfest pass at a serious discount for $100 and reduced my anticipated need for evening sitter services.

Not enough time to grocery shop either. I'm buying my lunch at work, and any shopping that does get done is limited to unplanned impulse selection of prepared foods from Farm Boy which increases the average cost of a meal at home.

I finally remembered to expense the business lunch. Work insurance covered most of my dental checkup. I need to make a short list of financial decisions required before my job winds down in August. My medical benefits carry into October.

Now I need to remember to expense today's massage appointment, and the portion of the diabetic supplies not covered by the $600 cheque. Which reminds me, I've got to track down the receipt for the diabetic supplies.

The mail strike inadvertently disrupted the flow of my diabetic pump supplies when the courier got overloaded and lost the package. I consumed fewer supplies during this period.

I am a creature of habit, and I am ever so hopeful that the habits I've worked so hard in acquiring over the course of maintaining this diary will serve me well during the transition.

It is strange working out a notice period. I am grateful, yet lack focus. At the same time, between new guy and networking, my social calendar overfloweth... Nice problems to have.

New blouse, new dress, new iPhone 4, new bike helmets and life jackets for the children.

More soon. My conversational French as well as my confidence are improving.

Oops.

Visa statement day: $3,278.78.

It looks a little crazier than it actually is, containing approximately $800 worth of expenses that I can get back. Note to self: Check the exact number and start the expense claims.

Just entered it into the spreadsheet, and it didn't break it. Whew.

The power of money

The ATM dispensed two crisp $50 bills when I withdrew my petty cash on the weekend. I can't remember this ever happening before. Feels like a good omen.

Don't worry, be happy

I attended a Sun Life retirement webinar sponsored by my current employer this week. According to their retirement planner tool, I need to save up just short of $1 000 000.

This is not a problem I can solve today.

Good faith

I have stopped my RRSP payroll deductions. It could be one or two pay periods before the change will take effect. These are before tax dollars. The payroll department could not act directly on my instruction; I had to call Sun Life to sort it out.

The amount in my DPSP is $5163.25. It will not vest before I leave (not mine to keep).

The RRSP value is higher: $25538.64. I have absolutely no idea how I saved this amount, but I'll move it to the plus column. When I spoke to the Sun Life representative, she mentioned that their fees are generally lower than other plans and got me thinking about consolidating this amount with my Assante managed plan.

Uggh.

I just spent $US 33.52 per year on establishing a new web presence under my own name, rather than my existing corporate name. It looks like I need to set up budget parameters to support my job search.

Priorities

I spent $300 for 25 bottles of wine at the SAQ depot this afternoon. That's $12 per bottle. I don't want to run out for the foreseeable future (and it's a nice Friday gift for the caregiver). It's a bit of a drive, so I made it worth the trip.

On the way home, I stopped at Shoppers Drug Mart to take advantage of the $8 sale price on a L'Oreal hair colouring kit. It needs to be done in the next few weeks unless I want the grey to take over, and I'll certainly be doing it myself. Gray is gone now; hooray for me!

I paid $20 this morning to register both girls for Chinese school in September. The $150 registration fee for Girl Guides will appear on my next Visa statement. I'm thinking about adding music lessons for my youngest, but for now it's just a thought.

All iTunes and iPad apps are back on the No list. The jury's still out on sporting goods.

I decided to splurge on a $72 six-month membership to the meetup service to advertise networking events through my business. I'm on the fence about bringing the business back into the foreground, but I'd like a better idea of what the choices really are in 2011.

There is still much thinking and prioritizing to do. Je voudrais une pédicure... I should probably turn my work-related RRSP contributions off completely. The interest rate is lousy, and the employer match does not pay out until I've been on staff for two years.

Update, June 13:
I instructed payroll to turn off my RRSP contributions today.

Turn, turn, turn

On Thursday, I will learn that I am losing my job on August 19. With this news will come a package as well as eligibility to apply for employment insurance should the need arise.

With the credit line debt squared away, and the bulk of the daycare burden behind me, I am reflecting on the pros and cons of such a change. I have not shared the news with my kids.

I told them in the car on the way to Chinese school this morning. They were calm.

More weekend highlights

The good:

• A free family pass to the Ottawa international children's festival (courtesy my next-door neighbour) with the unexpected treat to an exceptional performance of With a Doll in Her Pocket by Italy's Teatro delle Briciole
• Indulging in $7 worth of ice cream at the festival
• A simple Saturday morning brunch with a friend (his turn to treat)
• Geocaching, swimming, and bike riding with my youngest (and a picnic)
• Two pop-in visits with rarely visited friends just because their Facebook feeds were interesting
• Mowing the lawn and organizing the garage
• Noticing the pharmacy provided only one vial of insulin for the price of four, and calling to correct the error

The bad:

• Caving into a whim that cost us $28 for mediocre dim sum, most unappetizing when served cold. Even the tea was undrinkable, with sediment floating in it.
• Forgetting to buy groceries

On my to-do list:

• Submitting an insurance claim for last week's massage appointment
• Switching as many of my accounts over to e-bills as possible
• Organizing receipts

Corruption and greed

On the subject of a homeland visit to the village in Anhui, China where my eldest was born, I've just decided that we won't be signing up any time soon, even though the 10-year savings bond I purchased to cover her airfare for said visit is maturing in September.

Today I learned the orphanage director personally requests a $US 1000 cash donation, and the orphanage tour now includes a personally-escorted visit to a nearby ATM machine.

So disappointed for the children, and saddened by this news.

A second opinion

On the theme of dental work, I decided to switch my youngest over from the services of the pediatric dentist to my own dentist. (I called Standard Life first to confirm she was covered for checkups at six month intervals.)

He's been my dentist for twenty years. I tried switching when I moved to Kanata nearly five years ago, but I promptly switched back. He's good, he's patient, he's kind, and he doesn't overcharge either. I was lucky to get a next day appointment for her!

On the subject of the enamel deficiency (related to early-years malnutrition), his opinion was the same as the pediatric dentist. It's surface level damage only, restricted to the baby teeth. Her adult teeth should not be affected.

On the subject of replacing the spacer (initially placed by the pediatric dentist), he thinks we might need to introduce a retainer instead, but not for a few years. It had fallen out, and his advice was to leave it for now. Several of her baby teeth were missing when she joined this family. They may have been extracted, although it's something we'll never really know. It was too soon for them to fall out on their own.

On the subject of 6-year molars, his advice is to seal them once they are completely in.

Deciding not to seal the molars of my eldest turned out to be very costly in the long run, and she had to undergo various rounds of anaesthesia and multiple fillings. I hope to avoid it this time if that's possible.

On the subject of braces, she's likely to need them. We'll revisit this later, but it's good information to have in advance and helps with longer term financial planning. Standard Life has a lifetime orthodontics limit of $1500 on my current policy. It will help a little. I'll need to factor this information into any future decision to change jobs!

He asked if the pediatric dentist had done x-rays, and if she'd seen anything. I answered that she did them, and not noted any specific areas of concern. He did not redo them.

I fall to pieces

My Ironman Triathlon watchband has been crumbling. I've had it for a while. I love its alarms and its interval timer. I recently went back to the store where I had purchased it from. They gave me two options: fix it myself (be creative) or buy a new one for $90. I thought at first that Crazy Glue might work, until I realized I don't have all of the pieces.

Today while I was picking up my race kit for tomorrow's 10K running event, I had to detour through the race expo to exit the building. It's how they set it up in case I might want or need more sporting goods. I was tempted. They have nice stuff and good promotions.

I noticed a Timex booth promoting the kind of watch that I'm wearing. I stopped to chat and learned that I can go back to the store and ask for the postage-paid envelope the vendor has provided specifically for this purpose. The problem is known to the vendor and they are willing to assess it at no charge and give me an additional point of view on my options.

Car maintenance

Today it's raining hard; I'm working from home. It's Visa statement day. I've been holding back on a few non-pressing items to do with my car to defer the expense. I don't use it much during the week now. The change of seasons put my bike firmly back on the road.

It's a good day to have my snow tires switched back to the regular set. They are all on rims, which initially cost a lot, but I get it back in economies of time and I think it reduces overall labour costs. The mechanic is my friend's uncle. That's how I found him. Well, that and an unsolicited recommendation from a former co-worker who also uses his services.

He doesn't know that I know any of his relatives. He's just really nice. He decided not charge me to switch them over this year; it usually costs around $50 which includes tire storage. He did tell me that he pulled a nail from one of the tires and repaired it for me.

He advised me to keep an eye on the tire for pressure changes. He also pointed out that I've got one season left on the summer tires. Odds are good I'll buy the next set from him!

I don't drive much at night, so it hasn't bothered me that the passenger headlight burnt out a few months back. I had it replaced at the Kia dealership this morning at a cost of $65.74 on my way home. That seems like a lot to me. On the bright side, they were quick too.

I ran my gas tank down to empty last weekend, but did not need to refuel it with bike commuting all week. I stopped on the way back from the dealership: $60.11 for that!

Live in Ontario?

Hey, me too! I still receive my utility bills by mail, and tonight I am scrutinizing the hydro bill for sport. It contains a few inserts that merit further attention.

The first one is from the Ontario government, promoting the Ontario Clean Energy Benefit and promising 10% off my electricity bill for five years. I'm immediately suspicious.

To help you with the increased costs of these essential investments, the Ontario government has taken 10% off your electricity bill - including electricity costs, regulatory charges, the debt retirement charge and taxes.

Getting notice is good, I like that. After reviewing the additional material and scanning the details of my most current bill for items like the Debt Retirement Charge, I conclude the net result: my hydro costs are increasing noticeably after five years. I can wait.

The second insert introduces time-of-use (TOU) pricing. I need a better understanding of my habits and current rates before I can figure out what's involved here. I notice that it offers a calculator to help with the math. I clicked through but lost the trail.

There's a second letter, postmarked May 24, with An Important Notice About Your Electricity Rates on the envelope. It says the TOU rates will be introduced in four months time and offers a tool for viewing and comparing my electricity consumption patterns:

Long weekend highlights

Work was kind of stressful last week with colleagues visiting from California. We were in intense meetings all week long with working dinners on Tuesday and Wednesday. We also went for a team building event before dinner on Wednesday. I had some wine at dinner.

It was good work in a sense, yet four days without any real movement makes me kind of cranky. The meeting schedule was too compressed to permit me the luxury of my bike commute, noon run or midday swim. I intentionally left my weekend very open to recover.

With Chinese school cancelled for the long weekend, I spent three days completely in the company of my youngest child. At six, she is easily entertained (unlike her older sister).

We had Saturday morning coffee in the Maplelawn Public Garden. It's been a good year for rain, and the garden is a sheer delight. The day kind of meandered into a picnic over at Rockliffe Park with some geocaching, and we were able to fit in a short swim at the Brookstreet Hotel after a late dinner. The day's events cost us coffee and gas: under $15.

On Sunday, we went car free. The rain threatened all day, but held off until we completed our day trip by bicycle (and Chariot) to the Arboretum near Dow's Lake. We had initially set out for the Ornamental Gardens but never got there. Intoxicated by trees in bloom, we hit sensory overload and turned back, at most 1 km short of the gardens. While stopped for a picnic at Hartwell's Lock (along the Rideau Canal), we found the geocache. On the way home, we paused at Brittania Beach briefly to indulge in a snack for approximately $3.

Our route from Kanata took us through Watts Creek, along the Ottawa River parkway, then Pinecrest Creek, and eventually to the Experimental Farm pathway. I considered an alternate route home, but our Chariot is too wide to cross at Hartwell without disassembly.

Today was lower key, but cost a little more. At first light, I walked (while she biked) over to the library to return an unfinished book. We indulged in a longer swim, followed by a leisurely lunch of potato pancakes and tzatziki. Our afternoon revolved around some yard work, followed by a visit to the Parkdale Market for a hanging plant and some herbs for the garden: $32. I briefly considered a restaurant meal on a patio, but plants will give back.

I'm back to work in the morning.

Clothing and shoes

Truth be told I bought myself two new blouses from Winners last weekend, and some flip flops for the family at an Old Navy sale. Credit line is zeroed. Yes, I can.

I also paid $75 to the sitter for that visit to Le Nordik Spa on Sunday. Paradis sur terre.

I held back on coffee and wine all week, to take a small bite out of evening daycare costs. (We ran out of both last weekend.) I stocked up on wine last night, and on coffee today.

Fun facts from the spreadsheet

I took a closer look at the spreadsheet data for the last twelve months:

• My requirement for petty cash averages $200 per month. I use it for evening sitters, music lessons, gum, concert tickets, and that sort of thing. Moving forward, I'll add a line item for it, to the month-ahead section of my spreadsheet.
• I spent $912 on interest alone servicing the Line of Credit. That's a lot.
• I spent $931 on hydro. That's approx $78 per month.
• Gas heat came in higher at $1262, which is more than I thought it was.
• Water came in lower at $515.
• I charged $32056 to my Aeroplan Visa gold card. That's enough points for a nice return trip somewhere, and it justifies the annual fee associated with the card.

Just did it.

Hooray for me.

I've got a feeling

May the 15th falls on a Sunday this year. I care because it means tomorrow is payday. Last month, I reached the maximum annual deductions for CPP and EI premiums. I expect tomorrow's net pay to be adjusted accordingly. I suspect the amount of adjusting to contain the $100 I need to completely clear my credit line debt. It's not the end of the blog though.

The adoption loan balance of approximately $7000 waits patiently on deck. I might:

• call the National Bank to determine the precise amount of the outstanding balance and if there is any fee associated with early paydown
• apply the proceeds from my sale of to-be-purchased ESPP shares in September
• increase the amount of my monthly payment starting October 1

What a difference a year makes

I am on track to kill this thing good and dead this Friday. Patience is key.

Another day, another chart

This one nicely explains why the daycare expense has been my go-to thing to worry about this week. It drops considerably after Labour Day when my youngest starts full day school. The chart does not include costs for occasional evening or weekend babysitting.

Daycare 2011

The book fair

The school is hosting a book fair this week. Both girls came home with $30 wish lists.

I was stunned, as I'd given them budget guidance of $10 each based on their ChoreBank balance and their Easter windfall from my parents. We live across the street from a public library and there are so many owned books in our home already they literally stick to my socks when I'm trying to navigate their collective clutter.

My eldest threw a tantrum when I explained $60 needs to be a budgeted item (and our budget priorities). I further explained how she could earn some of the money, and she sulked off to her room and closed the door. My youngest got the message right away and earned an additional $7 in an evening's worth of house chores.

The place looks great.

To infinity and beyond

Effective the pay period ending April 30, I have reached my statutory annual limits for both EI and CPP resulting in a net take-home pay gain of approximately $300 per month.

Update, May 3:
Daycare costs are higher in summer months with both girls out of school. The EI/CPP gain will offset some of these increased costs. The daycare landscape changes for the better in September when the youngest starts full-day school.

Update, May 6:
I did the math on summer daycare last night. Not pretty. I had been hatching a plan for a week away in late August. For $82.50, I've booked a camping weekend at Lac Phillippe.

Please read the letter

The question surrounding UCCB eligibility was bothering me.

I couldn't find precisely what I was looking for online (an answer to the question of month vs day vs year). For clarification, I went back to the letter my accountant had attached to my personal tax return, in which he states my entitlement to:

• an Ontario sales tax transition benefit for 2011 of $335 (expected in June 2011)
• a child tax benefit of $1532 for the period from July 2011 to June 2012. (I will need to update the spreadsheet to indicate a decrease of $25 per month.)
• the UCCB of $400 for 2011

It looks like it ends with the month she turned six (April), but not with the day (the 16th). I conclude that the last payment I received was truly the last.

Still no

I'll revisit this list once the credit line is zeroed:

• services related to hair and foot care (with permission to splurge on related products, provided they cost less than what might have been spent on services)
• out-of-town car travel will be limited to one cottage visit on the Big Rideau
• clothing and shoes
• sporting goods
• train travel
• electronics
• parking

May's budget must include an extra $200 for evening child care. (The annual $400 vacation payment to the regular daytime caregiver is due in June.) Work will be busier than usual for me. This amount will cover at least four working dinners, and a sporting event.

The car needs servicing too. It's very drivable, as is. Perhaps it can wait until June, except maybe the snow tire removal.

Guilty pleasures

This post is on the subject of nail polish pens. I think they are a relatively new product. I bought three today. I noticed them at the drug store earlier this week at the regular price of nearly $10, which seemed a little high. They were on sale for $6.74 when I went back.

We spent our afternoon doing manicures and pedicures at home. Each pedicure I do at home saves me $40. My eldest has an artistic side; both her designs and ideas are fun. She used the pens to put tulips on top of my red polished toes, little hearts on her sister's fingers, and something more geometric on herself.

And now for something completely different

We've taken up geocaching. It's a big game of outdoor hide and seek with many invisible players. I'm not sure how it works in the winter, but it's something my family can do together on foot or by bike until then. I paid $US 30 for an annual membership and $9.99 for an iPhone app. We found two caches yesterday.

The gift horse

My water bill arrived today claiming boldly that I have consumed -28 cubic metres of water in the past two months. I am curious as to how this is possible, and I will attempt to get more information. The amount due is showing as -$72.66. I wonder if they hold onto it for next time, or if they put it back into the account from which it was directly withdrawn.

I like the last line on the statement a lot: Credit Balance - Do not pay.

You will receive a bill every two months. Every effort is made to read your meter three times a year but you may not always receive three based on actual reads in a year. Bills based on estimates are calculated on previous seasonal water usage and do not take into account a change of ownership/occupancy or weather fluctuations from year to year. The City reserves the right to correct billing errors at any time.

Update, May 2:
I called and asked. They can't put it back. They will hold it against a future bill.

Statement balance

April 27: $2566.38.

In which the annual fee of $120 makes its appearance in the last hour.

On the bright side, the $100 universal child care benefit cheque arrived yesterday.

Update, May 1:
I have an open question here about eligibility for these UCCB cheques. My youngest turned six a few weeks ago, and I thought it would disqualify us.

Paying the blues

It is not yet Visa statement day, which is a bit of a shame as the balance sits relatively high at $2406 and discounted Bluesfest passes go on pre-sale at noon today. Last month's statement day was March 27. I intend to buy a single pass this year: $247.

That's an order

I logged into etrade this morning to accept my recent RSU grant. Much to my surprise, I found myself placing a same-day sell order on some vested options that have been sitting around for a little while. It won't yield a lot of money, with estimated net proceeds of $444.47. However, it will reduce debt. I am good with that.

Update, April 29:
Actual proceeds will be $US 495.88.

Update, May 6:
The cheque was issued for $455.61.

Fuel economy

In the city:

378 km
40.965 litres
$53.17

$1.298 / litre
Approximately 14 cents / km

9.227 km / litre

Approx 22 mpg

On the highway:

507 km
33.54 litres
$43.57

$1.299 / litre
Approx 9 cents / km

15.12 km / litre

Approx 36 mpg

The car is rated 22 mpg for city and 30 mpg for highway.

The home stretch

Yawn.

Some enchanted evening

Full moon. True story.

My youngest fell climbing up the stairs before dinner last night, and based on the plaintive wail, I suspected a broken bone. We went straight to the nearest clinic, but it was closed. From there we practically flew over to the nearest open clinic, where her Ontario health card was promptly refused. I was surprised to learn that it expired a few weeks ago.

There are many lingering complications related to my daughter's class of Canadian citizenship. When asked, I paid the $40 for the appointment. We spent our dinner hour in the clinic's waiting area, and that cost us our pocket change for peanut butter cups from the nearest vending machine (to bring my blood sugar levels up enough for the drive home.)

The injury turned out to be nothing more than a nasty bruise and thankfully did not require an x-ray. We were released by 6:45 pm and we stopped at Pesto's on the way home (an additional unbudgeted $25.) I treated her with a little Advil before bed. (supplies on hand)

This isn't a rant about unplanned costs or waiting times. It's a not so subtle reminder of how fortunate we are in Canada to not have to routinely budget for these items.

While Service Ontario was at a loss to explain what had happened with the health card, they were quick to resolve it this morning. I can get the cost of the appointment back.

Update, April 21:
I went back to the clinic with the new health card number to request the refund. They took the information that they needed to share with OHIP, and advised me to return to the clinic in 4 to 6 weeks (May 19 to June 2) to find out if OHIP had processed the refund. The clinic will repay me only after OHIP pays them.

A quick whine about wine

I took up the habit after reading about it in a diabetic magazine in 2008, and I believe that it can contribute to a healthy lifestyle. No doubt there is a relationship between alcohol and blood sugar. For various reasons not strictly limited to time and money (and insulin pump calibration), I recently managed to last ten consecutive days without wine.

Saturday night arrived and I decided to try a glass. (The nurse did not set out any restrictions when we discussed the possibility at my last appointment.) I purchased one bottle ($14.95) from the nearest LCBO, and had two glasses after dinner.

My blood sugar dropped outrageously low on Sunday morning into the category of severe hypoglycemia. I can function under these circumstances but just barely. I wasn't sure it was the wine at first, so I tried a bit more on Sunday night, yielding more dramatic results.

I'm not stocking up for a while.

Update, April 20:
I got advice from the diabetic nurse on how to handle this situation. She suggests that I turn the pump down by 25% (for the rest of the night) right before I go to bed.

Update, April 21:
It worked.

The birthday party

Today was our Mad Hatter Tea Party with nine well-mannered children in attendance. Much to my surprise, I kept this event under the $50 budget:

• Invitations made by hand from recycled materials: $0
• Pretzels, ice cream cones, ice cream, grapes, and two-bite cupcakes: $10
• Ziplocked garden seeds, kool-aid mix, and seaweed crackers for loot bags: $20
• Previously enjoyed Salvation Army tea cups and saucers: $15
• Clock craft from recycled materials: $0
• Borrowed costumes: $0

A good time was had by all.

I spent the $5 remainder on grocery store tulips. They are pink.

The savings account

I received a statement from ING Direct today, reminding me that I have been accumulating money in a tax-free savings account. I just called them. There is no penalty or fee associated with transferring funds from this account to my primary account at the Royal Bank. It takes one to two business days to complete the transaction. I'm moving $500.

Winning

Me vs. Credit Line:

Payday

The changes I made to my RRSP deduction took effect today. As expected, my take home pay is now higher. When I changed up the appropriate cell on my tracking spreadsheet this morning, I learned that I had freed up $250 to apply to my Line of Credit.

I have just reduced the amount owing to $1750, after reminding myself that I had intentionally reduced the RSP deduction for this purpose. I must confess that I was very strongly tempted to indulge in non-budgeted items when I saw the new amount.

Recap on my reasoning: 
The RSPs are currently earning 0% interest. Maintaining a credit line debt costs me approximately 6% in interest. I did not eliminate the RSP contribution entirely; rather, I just reduced it to the amount that my employer was prepared to match.

In reviewing my credit line statements this evening, I noticed that my credit line debt also costs me life insurance premiums. If there's no balance, then I don't pay them, but there is.

Next steps

1. Organize receipts and statements from last few weeks.
2. Submit massage receipt to work insurance for $85 refund.
3. Expense last week's farewell-to-coworker lunch for $100 refund.
4. Chase down unpaid invoice for 2 hours of consulting work, done earlier this year.
5. Remind self that the $883 spent to date on insulin pump supplies is reimbursable and will eventually be covered by work insurance and government grants.
6. Roof repair, sooner than later (some shingles are loose, but not off).
7. Car maintenance (but not yet, because I might still need the snow tires).

Update, April 17:
My neigbour dropped by this evening. Some shingles are now off.

Update, April 19:
My first $600 grant cheque has arrived! I'll be submitting the remaining $283 to my work insurance plan in the morning.

Update, April 27:
I took advice from my neighbour and bought shingles from Home Depot. The vent blew off my roof.

Update, April 29:
We had a big windstorm last night, which compounded the problem: many shingles blew off. Holding off the repair turned out to be okay. My neighbour bought more shingles last night, and we hired a roofer to do the repair. We shared the expense of the roofer across four attached shared-roof neighbours, and we all had the work done at the same time (keeping the cost down). When I bought this home in 2006, my real estate agent suggested I eventually replace/upgrade the vent. It went missing in the storm. Now is the time. $337.

Row by row

I just transferred $5000 from my chequing account to my credit line, reducing the balance currently owed to $2000. I have also updated my tracking spreadsheet.

Tax refund: $5550.

Miles and miles

In anticipation of scary Visa bill, I continue to look for other ways to cut back and reduce costs. I am consciously trying to limit my use of the car to situations where I am pressed for time or traveling with children. I've stopped idling too (which was pretty limited to waiting for kids to do up their seat belts). While it probably won't save much, it might save a little.

I've biked to and from the office twice this week and walked my daughter over to her daycare on those days. This week has been a good one for planning and combining trips. There wasn't much in my trunk, but I emptied it. It might help. I also set the Trip Meter to 0 km when I last filled my gas tank (45 L for $57), for a better understanding of fuel economy.

I carpooled with a coworker to a lunch event today and let him drive for a change. Lunch itself was kind of nice too - the friend we were meeting at Pesto's decided to treat!

Update, April 14:
I missed a turn (daydreaming) on this morning's drive in. I thought I could recover with an alternate route, but then I got lost and had to turn around. Sigh.

Back in the saddle

Yesterday was a really nice day here. I hauled the bikes and accessories out from the garage into the driveway and started the spring tune-ups myself. (Last year's outsourced tune-ups contributed to May's Visa statement spike.) I needed an Allen key set for the project ($5 at Canadian Tire). I went to the bike shop first, but they wanted $20 for it!

My five-year old is nearly six now. I have an old Trail-a-bike in the garage that I acquired for my eldest years ago, but I'm not sure we ever used it. I got it second hand. I wonder what I was thinking when I decided to move it from my old house to this one. My eldest would have been to big by then to use it. My youngest would not yet have been on my radar.

I was successful in locating all of the components of the Trail-a-bike and determining how they should fit together. I removed the fender from my older bike to free up space for it, but then I got stuck at the bolt for the seat post. While it seems I might need another tool to release it, I also think it's been bolted too tight.

The post needs to come off temporarily so that I can slide the hitch for the trailer onto it. At first I thought the hitch worked more like a clamp, but it has no give to it. I'm going to have to ask for help to remove the seat post, or pay someone at the bike shop to do it for me.

I ran out of wine on Thursday. I am going to let that slide for a few days and see what happens. The coffee supply dropped dangerously low as well, but I've restocked it. I have managed to cut my coffee consumption in half since starting this blog in November.

Asking for help always seems to come at a higher price.

Change of venue

I left the $40 NAC Gospel and Blues concert at intermission tonight, after paying $9.25 for parking. Not my scene and not my crowd. The pianist was fair enough, but the crowd was mostly comprised of the aging Baptist congregation from his church. I found it depressing.

From there, I headed over to the Raw Sugar Café (with free street parking), to check out their $10 act. I poked my head in the door, and it wasn't my scene either. It did not help that the bouncer hesitated when I asked if I could come in. I didn't. Sigh.

So I texted a male friend and availed myself of his white wine and a spot on his sofa. He's good company. No more, no less. Safe to say NAC is out of budget for a while.

I paid $30 for the sitter.

Another day, another bonus

Yesterday I received word that I will be granted an additional 450 units of restricted stock options in mid-April. At today's price, that could be a net gain of almost $5000 even after half of the gross value goes to a tax deduction (if/when I exercise and sell them).

No word yet on the vesting schedule.

Update, April 12:
The vesting schedule for this grant is 25% per year over 4 years from the date of grant.

Down with the ship

I tried to call in sick on Monday. My mind is still very active, but my body wasn't working quite right. I was due back at the hospital for an insulin pump adjustment, and I had to leave a sick child at home alone to attend it. One thing I have noticed recently is that stress and fatigue serve to sharpen my judgement, rather than cloud or obscure it.

The Blackberry kept buzzing. So I overrode my better judgement and went into the office on Tuesday, and sent the child back to school. I was on my way back home by 1 pm. I booked myself a massage appointment. Work insurance pays for it. That, and paid sick days, are just two of many compelling reasons to stay employed there.

The Blackberry had other ideas, and by 1 pm, I had the laptop back on, and I could not get to my appointment. Work is really challenging these days. While the company itself appears healthy, the work problems I am facing are hard to solve on a good day. We are understaffed, and creative solutions can only stretch my team so far, resulting in a lot of anger, disappointment, passive aggression, and blatant resentment. I am torn. It pays well.

Pattern recognition

Expenses I am incurring over the next few weeks will appear on my May 2011 Visa statement. I've just registered for the Army Run. Running alone (without the children) and registering early lowers the event cost. Fewer campground bookings will appear this year. The Bluesfest expense is coming due soon. The figure retells my 2010 Visa saga.

Breaking my own rules

I caved and booked two camping weekends at Ontario provincial parks today. I should have checked my calendar more closely first. The weekend that I booked (this morning) for Murphy's Point overlaps with Bluesfest! This happened to me last year too.

My hope in writing it down here is that I won't do the same thing again next year! The cost of cancelling the booking (this evening) was $16. It's become our annual family tradition to head up to Round Lake when school breaks in June. I kept that weekend booked.

First pass

I just received a draft of my tax return from the accountant. It suggests a refund of $5500. It seemed lower than I was expecting so I checked his math. I have just challenged him (by email) on Line 214 (child care). I've never done that before. If I'm right, it increases the amount of my refund by approximately $2000 and empowers me to clear the credit line.

Looking forward to his response... Seriously!

Update, April 3:
There's a cap based upon the ages of my chidren; it's not an error.

Update, April 4:
The length of time it takes the Canada Revenue Agency to process your income tax return and refund depends on how and when you file your return. Refunds for returns filed electronically before April 15 (as mine just was) are usually processed within two weeks.

Update, April 14:
My tax refund is sitting in my chequing account. Credit line, your days are numbered!

Change purse as metaphor

I started my new job in October 2009. My new boss sent me a change purse as a holiday gift a few months later, by overnight courier from San Francisco. I was very touched by the gesture. I kept the purse and started to use it, even though I'd not had need for one before.

From the card, which I kept:

We're so glad that you're here! I know it has been a big change, and that there's a lot of change here all the time. I thought I should send you a little something you can use to keep all that change in. :)

Today's horoscope for Leo

"You should keep your wallet where it belongs -- locked away in a safe deposit box -- at least until this current wave of weird financial energy passes; you'll see a sign."

I can't make this stuff up. There's 21 cents left in there, and that's my lucky number.

Lighter fare

It's payday, and on that note, I've placed the one remaining dollar from my change purse into the 50/50 draw. Let's just say I'm feeling lucky.

When that happens...

I broke two weeks worth of insulin pump supplies in five minutes this evening. I have run out of supply on hand, and am currently unable to reattach the medical device without assistance and additional supplies. This is not good. Its directive is to function as a pancreas would. I've switched back to injections until I can reach the nurse for advice.

Update:
Situation under control.

Update, April 1:
Well, not really...

Update, April 3:
Finally, it all seems to be working.

Update, April 4:
Went through another 4 weeks worth of supplies in 10 minutes this morning, but it's attached now. I did it myself. Patience is key.

Placed the order

819.13 for three months worth of insulin pump supplies.

Insulin not included.

Water from a stone

The skip-a-thon pledge for my youngest is due tomorrow. Her school is raising money for clean water in Africa. I'm giving just a little. These things matter. I should budget for them.

Just did it.

Today I reduced my RRSP contribution from 18% to 8%, effective April 15, without disrupting my current DPSP benefit. The maximum amount of employer matching for the DPSP is 4%. I think this will free up approximately $200 (net) per paycheque.

I paid my coworker the $20 that I owed him for an upcoming concert. He hadn't even noticed that he didn't have it yet. He will be paying for the batch of tickets tomorrow.

I booked a sitter for April 8. I'm going out again. It's a Friday, and it will cost $40.

Tastes like chicken

Any changes I make to my RRSP contribution won't take effect before mid-April.

I've transferred $500 from the Line of Credit to my chequing account. I think it will cost me less than $3 in interest charges if I pay it back within 30 days. Looking closely at numbers for April, I noticed that I'll exhaust and exceed the overdraft coverage before my mid-April paycheque if I don't transfer funds from somewhere. That could cost me more than $3.

I bought a concert ticket for April 8 at a cost of $39.50, cut my own bangs again, and have painted my toenails a crazy shade of red. It's going to be another long month.

Sketching out April

Today is Visa statement day: $1880.

My youngest turns six this month which means we have reached ineligibility for the $100 monthly universal child care benefit.

I will be hosting her birthday party on a budget, taking care to keep party costs under $50. A child's party can easily cost $500.  It will take some creativity, planning, and a theme like flowers. We can plant seeds, colour pictures of flowers, and make floral crowns from paper, and decorate cupcakes with seeds and stuff to look like flowers. She wants earrings.

New idea: Mad Hatter Tea Party. Seems only fitting. I'll dress her sister up like Alice.

There are five Fridays this month which means we have five $200 daycare cheques going through the chequing account this month.

This might be the last month with an interest payment towards the line of credit debt. That's a good thing, and coincidentally well timed with the UCCB disappearing this month.

I do not have to absorb the diabetic pump start-up costs this month either. That's deferred until the next Visa statement. Whew.

I'd like to cancel the line of credit once it's paid out. My mortgage goes up for renewal in December 2011, and I'll use it as a negotiation point for a better interest rate on a future line of credit. I'll attach it to the same bank that provides my next mortgage.

My chequing account has $500 overdraft protection. I am currently using $485 of it to close up the month of March, and I owe $20 to a coworker for next weekend's concert tickets. I'll try not to think of my six-figure salary as I return wine bottles, and scavenge through desk drawers and coat pockets to make up the difference in change.

The car is due for some maintenance this month. I've got some minor home maintenance planned: redoing the eavestrough caulking and re-attaching trim on a set of double doors.

Bike commuting conserves fuel.

We've started a container garden with seeds and soil on hand. I'm not sure it will yield much if anything, but it's an interesting hobby to share with the girls. We'll add a few more containers to the mix before March is up.

In the absence of the tax refund, something else needs to give to keep the month of April cash flow positive. I'll look at dropping my RRSP contribution to the minimum amount I need to qualify for employer matching. My current contribution sits at 18%.

Until the value of the tax refund is confirmed, the following self-imposed restrictions from January must carry over:

• electronics
• services related to hair and foot care
• sporting goods and events
• clothing and shoes 
• out-of-town travel will be limited to Easter dinner with my parents
• parking

The following expenses are coming soon (hopefully in May though, not April):

• advance bookings for camp sites (a weekend at Bonnechere in late June and a weekend at Lac Philippe in late August)
• a single Bluesfest pass which is a bargain for this family, when you consider both my kids still get in free. (The concert line-up is announced in late April.)
• the annual Spring Fever impulse drive to Montreal for lunch with the girls

It's nearly time to call the National Bank and find out if there are any penalty fees associated with reducing the amount left on the adoption loan (approximately $7000) through extra, early payments.

Clenching my teeth

While I am no accountant, I decided to try out the income tax calculator tool at TaxTips last night. I am expecting to hear the official verdict from my accountant next week.

Assuming I've entered in all the necessary information, the calculator suggests a refund owing of approximately $7000. The amount still borrowed from my line of credit is $6500.

I wondered how much the accountant will charge for his services this year?

I did not know that

Today I learned that child care costs are not claimed as a non-refundable tax credit, but as a deduction from income on line 214 of the personal tax return.

Although I have had child care expenses in past years, I have never had the proper sort of income from which to deduct them. Self-employment made me ineligible to benefit.

While I did have a little bit of proper employment income in 2009, it was so low that all income tax deducted at source was refunded by the government when I filed my return.

In 2010, a year in which I spent $10600 on child care for my youngest and $2303 for my eldest, my primary source of income has been through my role as full-time employee.

That's the biggest annual child care expense I've incurred to date, and it's probably the peak. It will drop considerably in September 2011 when my youngest starts full-day school.

I also have to compensate my ex-husband for his ineligibility for the credit, as my lower net income disqualified him from claiming it. It was factored into our financial agreement for our child, my eldest and his only. This is not new information, but I hadn't really given it much thought before now, and she's ten. It didn't seem like much, but I guess it adds up.

Race against time

The insulin pump supply company suggested I place my first $1000 supply order immediately after starting to use the pump. It meant the order should have been placed last night. The diabetic nurse did not agree when I saw her yesterday and my pump went live.

She suggested I try out some of the various supply options and wait a week before placing the order. It's good advice. Waiting a week should put the expense on next month's Visa statement, not this one. In the meantime, the accountant is busy preparing my tax return.

Fingers crossed for a refund.

Update, March 25:
She still advises I defer placing the order. I'd have drawn from the credit line if I needed it to pay off my incoming Visa bill, but by postponing this expense to the following month's Visa statement, I may not need to.

Biting the bullet

The daycare provider is away for two weeks in July. I need to have a backup plan. The first week I have one child; the second week I will have both. Week one is solved with summer swim camp for the youngest: $183. I'll get back to week two later. Camp for two adds up quickly. I will book time off work or arrange for my parents to return for an extended visit.

March madness

Today is my last day of vacation. It's been a good week. Trying to get through it without incurring additional costs has been a real challenge. I admit I indulged, just a little:

• on a really nice restaurant dinner with an old flame (we had wine with it)
• on a $22 live theatre ticket (front row of the balcony, not the orchestra)
• on several impulse trips to the grocery store without a list in hand
• on a new T-shirt (very casual, less than $20) from Winners
• on some origami paper and a pair of Hello Kitty yoga pants for my eldest

Other highlights of the week have included:

• having relatives (including both my parents my sister and my niece) visit me
• walking in the nearby woods, while the children hand-fed carrots the deer!
• baking bread with my niece and my youngest
• one-on-one time with my eldest at the bulk food store followed by a bit of shoe shopping (just looking, not buying), while my youngest stayed home to start sunflower plants (in containers) with my father
• dropping by a friend's place on a whim to play a board game on his iPad
• a three-day live test drive of the insulin pump, running saline instead of insulin
• walking around the Byward market on St. Patrick's day toute seule, when patios were open, and stationed with live musicians and people in costumes
• a semi-ritualistic sage cleansing of our home, on the occasion of last's night extreme supermoon, while the children were watching a movie on my iPad
• a trip to Starbucks with my sister, after we reorganized my storage room and she called minimalist me a hoarder (gasp!)
• receiving an unexpected delivery of roses from a male friend who wished to remain anonymous
• watching three decent films via Netflix, while the children were asleep:
  Vision, Elling, and War Dance
• itemizing tax receipts for the accountant
• running outdoors with the children
• several afternoons in the pool

$16.94

We finally have a new curtain for guest bathroom on our main level. There used to be blinds in there. I am not exactly sure what killed them; I just know they were beyond repair.

The bathroom window is the only window at the front of the house, located next to the main entrance door, with a view into the front porch and the park across the street.

I admit that I could have done this replacement project for less, but I splurged a little and got the exact look I was going for. We're not nearly as modest as our house guests seem to be, and they are due to join us for a few days over the March break.

It isn't really a curtain.... instead, it's a white gauzy scarf from Winners. I draped it over the existing curtain rod (after removing the valence), and I didn't even have to hem it. If I get tired of it as a curtain, it can go back to being a scarf. The clerk at Bouclair hustled me out of the store when I asked if they sold white gauzy bathroom curtains. (They don't.)

That's Ms. Pac-Man to you

TGIF

On my mind:

• Tax on last month's 15% ESPP stock purchase discount will be deducted from my March 15th pay cheque. I am hoping this amount falls below $200. I should be relieved it's handled this way. It will save me from worrying about it later. 
• It currently takes approximately 30 days from the point a medical claim is submitted to the point the reimbursement appears in my chequing account.
• A full week of paid vacation, which starts at close of business today.
• Rumours of yet another near-term equity grant, seriously.

Gather ye rosebuds while ye may.

Update, March 15:
Tax deducted: $354

Fear of failure

Switching over to this insulin pump carries a risk. It might not work. Odds are strongly in my favour though. It's the fundamental reason I can't switch back to self-employment and a schedule more balanced in my direction, even though I carry lightweight disability insurance through my own company at a cost of $80 per month. The stakes are high.

I've been paying this premium for nearly 10 years. It's intended for critical illness. It kicks in at about the 3-month mark, and it works on the presumption that I keep a 3-month financial buffer lying around. I used to, but I lost financial ground in 2009. I'll get it back eventually, but not in this calendar year. I did not draw from this insurance, for example, when I went offline for a coma-related incident for most of August 2007. I was not sick long enough.

If the pump fails, my currently employer has my back covered. The group disability plan is much better than the one I secured on my own. I missed this point in my initial analysis a few days ago, but I think it's the kingpin. Rational fears are the scariest kind.

I also left out life insurance from my cost-benefit analysis. I maintain two private term insurance policies at a combined cost of approximately $40 per month, but I recognize the value of the additional coverage that my current employer provides for me.

Adjusting

My first cheque from eTrade was issued in Canadian dollars. It didn't cross my mind to check the second one before I deposited it into the bank machine on the weekend. Through an unexpected PTB Adjustment debit of $341 from my chequing account this morning, I've just learned the second one was issued in American funds! I'm awake now.

In the long run

I'm in training for my next 10K event. I just ordered my SPIbelt, on the advice of the insulin pump company representative. It looks like something I will need to use, and soon!

This item qualifies for free shipping.

On the fence

I got email today from a former client, about an upcoming contract opportunity. It's a three to four day work week, and it looks like they are interested in a long-term thing. I started looking at the costs of it, wondering if it's something I can currently afford to consider.

I suspect the take-home pay itself amounts to about the same as I get now. I'd go back to dividends which are taxed differently than regular income. I'd regain self-employment status, which in itself could be a costly decision should the contract suddenly evaporate.

My unvested DPSP currently sits at $5000. I think that's before tax dollars. I should find out how and when it vests. It's not something the company offered when I first joined, and I expect the opportunity to further accrue here could disappear as quickly as it appeared.

As a full-time employee, I pay into a mandatory government employment insurance plan for which the self-employed are ineligible. It guarantees me a bit of income in case of layoff.

I'd also lose paid vacation, paid sick days, and paid statutory holidays. These alone could amount to approximately $10000 (in before-tax dollars) per year. Red herring.

A return to contract work means that I'd lose my health benefits provided by my current employer. I maintain private benefits so that's probably not such a big deal.

This year's bonus payouts were nice in their own way. As much as I enjoyed them, I can't convince myself to list them in the costs of changing things up. I'm skeptical that they will recur with any meaningful frequency.

There's unvested stock to consider as well. It's the restricted options that have potential value. The other ones are nice to have, but could be as much of a capital loss as a gain.

There's also the guaranteed 15% discount I get through the ESPP on future stock purchases through this plan. I have been making a bit of money through this option.

In a future post, I will consider the benefits. Maybe.

Update, March 9:
I wrote him back, with a very clear No Thank You. It was hard.

Resistance is futile

Insulin pump supplies are usually procured in 3-month batches. That's about $1000 more to spend this calendar month. I'll get most of it back, eventually but not immediately.

I suppose it's time to start sorting my tax receipts, although I am still waiting for a few.

Danger, danger

The weekend weather was just frightful, and I could not bring myself to make the drive to SAQ depot in Gatineau. It's Sunday night, and I'm heading into the week with one bottle of unopened white wine. I don't know why I need it, I just blindly accept that I do. Risk of budget disruption in one form or another is running high.

To get through the week without incident, I promise myself:

• to not even so much as walk into a restaurant
• to find time for a candlelit bath before bed at least twice
• not to buy wine in a restaurant or order a single glass in a bar
• not to go to bed crabby because I have not had a glass of wine
• to be extraordinarily patient with my children and my coworkers
• to return the empty bottles in the garage before the week is up
• to reward myself with a Vintage bottle from the LCBO bin ends

I'm on vacation the following week. My mother, sister and niece are coming to visit us.

Because I'm worth it!

A trip to the hair salon or spa for touch-up highlights (to camouflage grey) runs at least $150 and takes three hours. I don't see that happening before spring. I lack the time.

A L'Oreal Colour Expert kit from the Superstore set me back $11.94 + HST. For the so-called Blowout price of it, discontinued Brioche seemed close enough to my natural shade. After several reads through the instructions, I worked up the nerve to try doing it myself.

It came out a little darker than it was before, the grey is completely gone, and I love it.

Note to self: I only used half of the two-part kit.

Getting ahead of myself

I've been working from home all week, but today I came into the office. I found my February 28 pay slip waiting at my desk for me. My year-to-date RRSP contribution is $5124.94, and it will probably serve to reduce my taxable income in 2010.

I'll try to worry less about the possibility of taxes owing when I file my 2010 tax return.

Worth the money

This post is on the subject of self-care, in particular, my feet! My discount foot file wore itself out after a few weeks of daily use. The vaseline and sock trick buys some time by softening (not reducing) skin but plateaus. A pedicure is not in budget for March either.

With all of that in mind, this past weekend I caved and spent the $15 on the Ped Egg at Zellers. It's well constructed, low maintenance, and I will be able to use it again. I traded it off against the $40 cost of my next pedicure, which will need to wait until April or May.

I did not know this product had its own infomercial before writing this post. I've noticed it appearing in the foot care section at most pharmacies and department stores that I frequent, and wondered what made it so popular. I ended buying the larger Ped Egg for men. It seems they can't keep up with demand for the smaller woman's version.

It happened again...

One or more of your investments has paid a cash dividend or interest, the details are below. If you are not enrolled in the Dividend Reinvestment Program, the amount shown below has been credited to your account.

Security: INTEL CORP (INTC)
Amount: $39.32

To reinvest your dividends automatically, log on to your account and go to the Online Service Center; choose Reinvest your Dividends from the Service Your Accounts menu.

Sounds like I should probably do just that. So I try.

You do not have any eligible accounts to submit this request.

Breaking the habit

I ran out of disk space on my 16 GB iPhone.

Update, March 2:
Rumour has it that AudioGalaxy can help solve this problem. I couldn't get it to install though. Sigh. Trying again.

Something different

I made my first Skype credit purchase today for the purpose of cross-border calling.  I put $14 on the account, and I set up the Caller ID to display my cell number. I don't have home phone service any more, and I don't miss it either.

Within Canada, the unlimited Worldline long distance service is great value for the $3.95 monthly price of it, and seems to meet most of my long distance needs. I've set it up the local number as one of my cell phone Favourites so it doesn't eat minutes.

What I have been missing the occasional call to a chatty cross-border long-term friend. We have Facebook and email, but it isn't the same. The first call to her land line from my Skype account cost me 8 cents. I got voicemail. I might call more often.

Update, March 3:
I reached her, and we managed to chat for nearly an hour. It was glorious.

Worry, worry, worry

I'm switching over to an insulin pump. Trying to wrap my mind around the new set of numbers and who pays for what is mind numbing. As near as I can tell:

• diabetes is a treatable condition, and treating it buys time until there is a cure
• time (to live, to love, to learn, to laugh) is an especially nice thing to have
• the approximately $7000 bill for the pump goes directly to the government. Less than a year after I was diagnosed, the Ontario government started to fund them.
• I pay the pump company directly for pump supplies ($260 per month)
• the government reimburses me for pump supplies with a $600 cheque every 3 months, and while I do not need to send them receipts, I should save them as I can be audited for proof of purchase later.
• private insurance requires a copy of the invoice from the pump supplies to help with the difference
• there is a 6 to 12 week wait between the need for the pump supplies and the arrival of the first government cheque
• according to the pump company, private insurance may be able to help with the costs before the subsidy starts, and to trigger this help, I need a letter from the pump company which goes to the government to trigger a letter which I can send to the insurance company.
• when I spoke with the insurance company on Friday, I learned they don't get involved before the subsidy starts. I will be calling them back.
• none of this factors in the cost of the insulin or supplies for the glucometer, which presumably are still covered at 80% by my private insurance plan
• the pump itself will be attached and start infusing on March 21
• I made my first pump supply purchase on Friday

I've yet to file my personal income tax return for 2010. Fingers crossed that the correct amount of tax deductions have been taken from my source pay. I worry about it because the year that I joined the company, it was late in the year, and I had no taxable income.

2009 was a big year for personal tax credits, plus I was taking a dividend from my self-incorporated company rather than a salary. When I started the salaried position in October, I'm sure there was a new hire payroll form I filled out to indicate personal tax credits.

Breakthrough

With the statement date upon us, the balance due to Visa in March is $1,639.86.

My February restrictions worked! Well that, or the short month was just cheaper.

It's my lowest monthly Visa payment due since April 2010.

Wake up and check the calendar

I just placed another sell order. Gulp. For all of my ESPP shares.

While they may well climb in value, it's risky and the key point is that they are of value now. This isn't 1999 either. Nor should it be. These kids weren't born yet!

Estimated proceeds: $6,662.20. Some of this amount will need to be reserved for taxes.

Update, February 25:
Your sell order for 313 INTC shares has been executed and should settle on Wednesday March 2, 2011. You will receive a notification when this transaction has settled and the proceeds have been sent via express mail.

An app for that?

Inspired by a recent article on parenting apps that came to me though Twitter, I downloaded ChoreBank to my iPhone at a cost of $1.99. It's similar to a system we've been using, except our self-serve low-tech version is paper based and supported by a fridge magnet.

Every little bit helps

A client just paid me for work a subcontractor has been doing. I get a small commission. Yay. I've applied some of it ($500) to the credit line debt, and left the rest in the business account to cover upcoming monthly business insurance fees and HST owed on the delta.

Oh, that

We survived the week on a $10 grocery run, relying mostly on an overstocked pantry.

Under the provisions of your Employee Stock Purchase Plan and based on the percentage contribution you elected, 170 shares of INTC were purchased for you on February 18, 2011.

Buying time

The child is up at 6 am, but I am not. She has my iPhone. Before I can even lift my arm, she's coaxed it to read Green Eggs and Ham aloud to her. Almost immediately, it prompts her to download Five Little Monkeys. She can't read the prompts yet, so she hands it to me. I enter the password; cough up the 99 cents. And I sleep in, for five more minutes...

I love you, App Store.

Restricted

Out of curiosity more than anything else, I have just placed my first sell order with eTrade to sell my 74 remaining vested units of restricted stock.

The tax implications are not clear.

The estimated commissions are $US 19.95 and the disbursement fee is $US 20. The proceeds of the sale should arrive by Fedex in 3 to 5 business days. I looked for a direct deposit option, but could not navigate the SWIFT and Fedwire codes it asked me for.

Your sell order for 74 INTC shares has been executed and should settle on Tuesday February 22, 2011. You will receive a notification when this transaction has settled and the proceeds have been sent via express mail.

Transactions typically settle in three business days, but company stock plan transactions may require additional time.

Update, February 22:
$1,565.07 (net)

Update, February 24:
The amount on the cheque is actually $1,506.36. It's going straight to the credit line.

Music is my hot, hot sex

I stole that from a hockey card. In a moment of weakness, I spent $10 at the iTunes store yesterday. It's the kind of thing that adds up quickly if you let it. It's not a new vice either. I can remember spending the money I earned from my paper route in 1977 on disco 45s.

Ticking time bomb

Recently, I noticed that the bank separates mortgages from loans in its financial analysis of how I've been spending the money in my chequing account. I wondered why that is...

This image is a snapshot of my chequing account activity from the last 30 days.

The average disposable income per Canadian household hovers around $54 000. Disposable income is essentially after-tax income.

Update, February 15:

Out of curiosity, I calculated my disposable income. I give up 18% of my gross income at source for RRSPs, and another 5% of income at source for employee stock purchase. What's leftover seems to qualify my family unit as an average Canadian household.

The average Canadian mortgage debt currently equals the average amount of home equity: $146 000. That surprised me, in a good way.

The average Canadian household debt is approaching $100 000. This number includes mortgages and unsecured debt. Canadian debt-to-income levels are approaching $1.50 owed for every $1 of disposable income. These numbers are on the rise. That's scary.

Mortgages are secured, and considered good debt from the bank's point of view. Interest rates are lower. Check the above figure: this segment is shown in green.

Update, February 16:
Note to self. The fixed interest rates on my car loan and adoption loan are both lower than the interest rate on my mortgage. Remain calm.

Unsecured debt, such as credit card debt and lines of credit, costs us more. Twenty-five million Canadians with debt owe an average of $25 000 each, excluding mortgages.

There are some fascinating articles on the Canadian debt problem available through the Vanier Institute of the Family.

Update, February 22:
Are SPP deductions before or after payroll taxes have been deducted from my paycheck?
Your SPP contributions through payroll deductions are made after taxes are taken out.

Update: February 23:
ESPP shares are purchased at a discount. My plan offers a 15% discount on the lower price at the beginning or end of the purchase period. An ESPP allows employees to delay paying income tax on the discount until they actually sell their shares. But wait, there's more! The stock price on the day of the purchase is called the fair market value (FMV). The difference between the FMV and the selling price is treated as a capital gain or loss, and taxed accordingly.

How low can it go?

In search of the baseline number for recurring items I charge to Visa, I took a closer look at my most recent statement. I don't think I can get this set of expenses under $1000.

The main items were as follows:

• food: 493.54
• wine: 270.92 (single transaction; dated Dec. 30, 2010; inherently anomalous!)
• gas for my car: 110.34
• utility: 173.03
• gym: 107.35 
• coffee: 72.42

I also compared these actual numbers to my 2011 budgeted values for these categories:

Underestimated

The first guitar lesson happened last night. I overlooked care and feeding costs for the instrument itself. It will go off to the music shop for a tune-up before the next lesson.

Update, February 13:
It's a second-hand guitar. I picked it up stringless, from kijiji last summer. The neck is warped. Stringing it properly is a problem, but they've done the best they can with it. Eek.

Update, February 14:
One step back. It's more than just warped; it's cracked. New guitar and hard case: $475.

Call me Even Stephen

Last night's working dinner ran pretty late. My Californian colleagues were still talking when I left. I was home by 10:30. Evening sitter: $40. There's another on the books for tonight.

Update, February 10:
$45 for last night's sitter.

Recovery: Submitting an unclaimed $85 massage therapy receipt from January. On it...

Pennies from heaven

In lighter fare, I've just received an email message from my elder daughter's Girl Guide leaders. They've decided to refund the winter camp fee. The unit is able to cover the cost unassisted. That's $45 in the February plus column. We're not rushing out to re-spend it.

To her credit

I have a $30000 business line of credit (to stabilize business cash flow) that I am not using. In 2001, it was a real pain to secure it. When Adobe merged with Macromedia in 2005, I was doing business with Adobe; I maxed it out to pay my team before I paid me.

It's paid off now. I have not used it since October 2009, and last week I realized that a $10 monthly fee going through my business account was attached to the privilege of keeping it. There is also an annual fee of approximately $75 charged to review my credit history.

There's no obvious way to shut it down from online banking, although increasing it is the first "helpful tip" offered. I just called the bank to close it by phone. (I tried to shut it down last August, but at that time, they were insistent that I present myself to their downtown location on Sparks Street to sign some forms. No surprise. Their annual fee was due.)

When asked for my reason for closing it down, I told them I've stopped using it and I don't need it. I did not reference the fees at all. I was immediately offered other "lower fee" Visa products for small business, to which I could only ask why? I declined. They closed it.

Economics 101

When it looked like there might have been a bit of a buffer in the February section of my financial planning spreadsheet, I offered to take the children out for dim sum to celebrate the Chinese New Year. Later that same day, I fielded an unplanned lunch order expense for my eldest. It is usually a shared expense, but that's for another blog. It happens.

The lunch order came in around $150 (for milk, pizza, and Mazzola), unbudgeted, on January 27, with "Here's the form, Mom, it's due tomorrow." In paying it, I lost the buffer.

I am gently but firmly reminded of the difference between savings and loans. The buffer itself is a fictional concept at this point in time. The bank calls it overdraft protection.

My recovery plan was fairly simple. Food Basics now carries Chinese dumplings for approximately $2. One package makes a meal for three of us, and we had tried them once before to rave reviews by the children. They could make for a nice celebration at home, and a reasonable compromise. I bought three packages of jiaozi and froze them.

Then came the Lucky Money. Both kids received red envelopes by mail this week, from my sister and my parents. Total: $40. I told them that I'd still be happy to make them their dumplings, but they now had enough to pay for the dim sum, if they preferred that option.

The youngest handed me both of her tens immediately, and reached for her coat.

The eldest really stewed over the decision:

• "That's a LOT of money, Mom."
• "Well then I get ALL the change, Mom."
• "You need to pay for your own, Mom. This is OUR money."

So we agreed that she would get the change, and I would not pay for my own meal. She held her tens close to her chest right up until we had parked the car next to the restaurant.

The meal came in at $35.03, before tip. We paid with cash, not Visa: lesson learned.

Focus on February

Even with the second bonus from work now sitting safely in my chequing account, the Excel spreadsheet I use to plan and track expenses running through this account just gobbled it up. All of it will disappear in February, with none leftover for the line of credit.

Of this I am nearly certain, the in-house supply of wine and coffee can be rationed to last the month. I share both freely with the daycare provider. I have tamed this expense considerably since I started buying both items in larger quantities a few months ago, with fewer impulse trips to both stores and much less wine consumed when I go out.

SAQ Depot in Hull further discounts wine by 15% with every twelve bottles purchased. Bridgehead gives me a free pound of coffee based on the number of stamps I accrue on their customer loyalty card.

The following self-imposed restrictions from January must carry over:

• electronics, including anything sold through the iTunes store
• services related to hair and foot care
• sporting goods and events
• clothing and shoes
• out-of-town travel/vacation (no advance bookings for hotels or camp sites)
• parking

In the foot care camp, I've recently acquired a bottle of fairly glamourous nail polish for $2 (marked down from $12) and a foot file for $3. Paying closer attention to my feet takes time I often don't have, but I will try and find a few minutes every day. The vaseline and socks trick at night works wonders too. A proper pedicure can wait until spring, hopefully.

Cosmo magazine says that big bangs are back big. I've boldly trimmed them up again.

Keeping away from the iTunes store is harder. I might pick up a fixed-amount iTunes gift card for myself to budget and restrict my purchases that way.

Thankfully, February will be a short month. It always is.

Taming the tiger

This post is a credit card update. I pay the card off monthly, so there is never an interest payment to Visa. The amounts shown per month are the actual amounts I charged to the card per month, and do not reflect any back-debt or accrued interest due because there is none. To pay it off in full every month, I have sometimes borrowed from my line of credit.

I started this blog in November. It helps!

The amounts paid are associated with a payment date 15 days following the statement. For example, the February amount is the amount I will pay on Feb. 15 to clear the Jan. 27 statement.

Dumb and dumber

Inspired by the flurry of annual statements I'd received recently, I called FirstLine to request an annual mortgage statement. It's on its way to me now, by regular mail. The customer service agent who helped me with my request noticed that my five-year fixed-rate mortgage is up for renewal this year. She pointed out that the interest rate was a little higher than current rates, and asked if I would like to speak to someone about switching it.

In her opinion, I would certainly stand to save money. I asked about the penalty, and I mentioned that my last mortgage had a three-month interest penalty associated with such a change-up. She did not answer the question.

Instead she patched me through to someone who could answer it for me, and set things up. I spoke with him for about two minutes. When I asked him about the penalty, he paused before saying... thirty three ... thirty three ... ... eighty five. That's four months interest!

I ran the numbers on how much the interest drop might actually save me. It would lower the monthly payments by approximately $50 per month, over a new five-year term. I fail to see how increasing the debt by $3333.85 would save me any money. That's because it would not, unless something truly horrifying happens with interest rates in the next 11 months.

Approximately $50 per month X 12 months per year X 5 years = Approximately $3000.

Unless I've overlooked something, I just don't get it. There are a lot of mortgage choices out there. It seems to me that if I choose to continue doing business with FirstLine for an additional five years, there should be some sort of return consideration, like waiving the fee, not penalizing the customer. I wonder if they have a customer retention department.

One thing that strikes me as particularly weird here: they approached me about breaking our contract, not vice versa. I did not approach them. Who really stands to benefit?

Most closed fixed-rate mortgages have a prepayment penalty that is the higher of three-months interest or the interest rate differential (IRD).

December 31, 2010 closing balance: 
$160 960.17

Maturity date:
January 1, 2012

I did not see that coming

I experienced my first eTrade this morning. While I was sleeping, they sold 56 of my restricted Intel shares, leaving me with 78. When I called for an explanation, I was told that it's an automatic transaction scheduled on my behalf to cover taxes.

I was surprised to learn that they were being collected on behalf of my employer. That's not the right amount for a capital gains tax, and I don't think I've realized the capital gain yet.

Will I be taxed again when I sell them?

When I did the math on the potential capital gain for the grant, it came in around 25 shares... leaving me to wonder, how is it really taxed, and how much of this money will actually be mine to keep?

Further research reveals that it's called withholding. It's required by the Canadian Income Tax Act. The 2010 federal budget changed employer withholding requirements on stock option benefits to shift the tax collection risk to the employer, effective January 1, 2011.

Update, January 31:
"This order was initiated by your employer based on your restricted stock tax payment election. You can review your elections any time by logging into etrade.com. At the top of the page, just below the main tabs, click Plan Elections."

RRSP roundup

Just getting caught up on my mail.

The residual funds from my aforementioned dot-com glory days are managed by Assante. The new statement indicates a total portfolio value of $60 472.17 as of December 31, 2010.

There's a statement here from Sun Life Financial as well. I've been setting this money aside since my return to full-time employment in October 2009. The RRSP itself is currently valued at $17 913.41, funded by employee contributions. The unvested DPSP sits at $3 041.01, and is funded by employer contributions. The DPSP vesting date is November 17, 2011; it's not mine yet.

These are before-tax dollars.

In between sits a seven-year self-employment gap in which I made no contributions at all.

Risky business

I woke up to another surprise from eTrade this morning. In addition to the 128 shares of restricted stock options they've been teasing me with for the past few weeks, I also now have 383 shares of regular stock options vested. Both batches vested this morning.

Regular stock options are issued with a strike price. The strike price is somewhat tethered to the price the shares were trading at the day you joined the company. In my observation, they operate on the principle that your contribution to the company over time can help increase its value. Vesting schedules are laid out in a job offer to encourage retention.

Once options have vested, you can sell them at nearly any time (before you leave the company) and profit on the difference. It's taxed as a capital gain. If they do not increase in value, you simply do not exercise them and walk away from them without realizing a loss. There is also a small fee associated with exercising them.

In 1997, I was issued a significant number of regular stock options in a relatively obscure tech company. They vested three years later, nearing the height of the Nasdaq and dot-com madness. My strategy was simply this one: it's essentially free money, exercise as they vest, sell immediately. I realized a capital gain of approximately $250 000.

My former colleagues who held a similar number of options to their peak made $1 000 000. My former colleagues who held past the peak made $0. It's a best guess, gut feel, risk threshold, comfort level kind of decision you usually don't get to make twice.

This time I have vested shares in Intel, and right now they are trading pretty close to the strike price. I'll let them sit for now. I'm not ready to sell the restricted stock options either.

I looked up the strike price: $20.30

Is it just me?

I have absolutely no idea how much in total is owing on two of my main assets:
my house and my car. I've not seen a recent annual statement for the mortgage, nor am I set up to monitor its progress online. I've just confirmed the service is available.

While there is equity in this house, the amount is not clear. I paid my last house off in its entirety, over a 10-year period. That turned out to be a costly decision, and I do not aspire to do such a thing again in my lifetime. This one is financed over a 35-year period at a rate of 4.9%, and the $845 monthly payments are mostly interest-only. To date they have been lower than rental payments would be, and the house has significantly appreciated in value.

The car loan scares me a little. In addition to the outstanding loan amount of approx. $10K, I recall it was financed in a accordance with a lease-style arrangement to keep the monthly payments low with a shocking interest rate of .8% (less than 1%, really not a typo). The final monthly payment for the vehicle is followed by a lump sum; I don't how the amount is determined. Will it exceed the car's book value? It still runs well, and for that I am grateful. I've kept the mileage low, installed a trailer hitch for our bike rack, and invested in a second set of (winter) tires on rims for it. The current value is hovering close enough to $10K.

I know precisely how much is left on the adoption loan ($7250), and the rate at which I have been clearing it. National Bank sends me an annual statement. The interest rate is much lower than I thought it was, hovering variably between 3% and 3.75% in 2010.

Light bulb moment:
Realizing why the credit line torments me. Mortgage excluded, it may be my primary debt. There is something wrong with this picture. It's supposed to be for unforeseen expenses.

One trap today

Family dinner.

Today is Friday. It's the day my eldest child returns to our household after a week with her father. She splits her time between two homes. She does not like change. In her absence, my youngest child asserts the role of Only Child. It's one they both reluctantly give up.

I collect them from two different locations before Friday dinner, and more often than not, they bicker all the way home. In the evening, it can escalate to whacking, biting, and sometimes includes spitting. It's a scene playing out across town; I have no doubt.

My best strategy to pre-empt it is a sit-down family dinner. Sometimes we go out. The temptation can be very strong, but it adds up quickly. I'm planning something different tonight. Although we're generally a meatless household, I will bake another small black forest ham. It's the same kind we had for Christmas, and they know it's a treat.

I enlisted their help in the meal prep, and it worked. No whacking. No biting. No kidding.

Traps for today

Here we go:

• Buying surplus donuts for this morning's office warming social. One dozen will be enough for seven people, plus I picked up a half-price vegetable tray at Metro last night. It has not expired yet, they look fresh to me, and I saved $5.
• Hospital pay parking lot. I will choose sensible footwear to reduce temptation.
• Networking dinner, which may involve multiple courses, wine, and simple-math bill splitting. I will indulge a little, enjoy the company of my colleagues, and lead by example on pushing back the dessert menu, firmly and swiftly.
• Overpaying the babysitter, which of course I will do!

In the plus column is the stop downtown I'll likely make on the way home from dinner.

Much ado about nearly nothing

Tax Free Savings Accounts (TFSAs) appeared on the Canadian financial landscape in January 2009. There was a bit of fuss on my Facebook feed on this theme in late December 2009. The consensus was that if you did not open an account somewhere and make a first contribution in 2009, then you would lose the option of carrying forward any unused portion of the $5000 contribution limit to 2010. One year later, it still sounds like urban folklore to me but then again, it might be true.

My account is set up through ING direct, and they mail me paper statements quarterly. It pays interest at a rate of 2%. I have a small monthly amount deducted directly from my chequing account at RBC. My TFSA closing balance one year later is $322.06. I should eventually check out the facts, and I probably will. I do not yet need to know.

Interest paid this quarter? $1.03

Update, January 23:
Just opened a great letter from ING Direct in which they clearly lay out basic facts:

• Deposit up to $5000 a year and carry forward any unused portion. With TFSAs now in their third year, that's a total deposit limit of $15 000.
• You can withdraw money from the TFSA at any time without paying tax, but you must wait until the next calendar year to redeposit that amount.
• Any money you withdraw can be deposited again the following year, in addition to the annual $5000 limit.

Money for nothing (and trips for free)

In recent years I have accumulated approximately 170 000 Aeroplan miles, through a combination of adoption-related travel, work-related travel, and a Visa points program. I was completely off the points card for a few years, but when you know you have to travel, there are definite advantages (such as travel insurance) to the card. The card has an annual fee.

I routinely retreat to these points in fantasy. My current thinking is that they will get me, my kids, and my father up to the Yukon for a week in 2011. It will take some advance planning to book that trip, the kind that is not necessarily compatible with the custody arrangement for my eldest. I digress. That's not a financial problem, and has no place on this blog.

All of my grocery shopping expenses route through Visa. I am a careful shopper, and my thinking is that we might as well get points for things we need to buy.

Costco will sell me groceries, but won't take my Visa. For reasons I still don't understand, I renewed my club membership twice last year. I don't shop there any more; I don't trust their memory. I learned from my experience of a first phantom renewal to demand a receipt upon the second renewal in April. While I can use it to challenge their claim that it is again expiring, I've decided not to renew. I might if the membership had tangible benefits to me. I question how much the renewed membership actually saved me. The answer is none.

Update, January 19:
169,639 points

List of banned expenses for the rest of January

It's an experimental post. Writing it down helps. The aim is reducing my next Visa bill.

For the next two weeks, I will not spend money on any of the following goods or services:

• electronics, including anything sold through the iTunes store
• services related to hair and foot care
• sporting goods and events
• clothing and shoes
• out-of-town travel/vacation (no advance bookings for hotels or camp sites)
• parking

Seemingly random, this list is compiled from a detailed analysis of how I actually spent money in 2010. Temporary cutbacks in these specific areas can make a difference.

Update: January 18. (One day later.)
I just registered for a 10K run in May at a cost of $50. On the plus side, my new glasses were $85 cheaper than I expected them to be. I'll be good tomorrow. Maybe.

Update: January 28.
Visa statement date is today, with a balance of 2054.87 owing. This is progress.