Spend some time with your partner going over what you have spent in the past month. Look at bank statements, credit cards, bills, etc. and add up the total amount of money you have spent and look at where you have spent it.
One step would be to look more closely at your monthly bills. Is there a way that you can cut back on monthly bill expenses? Look at your phone and cable bill, can you cut out channels that you're not watching, can you cancel a feature on your phone that you don't really care too much about, like call display? How much money would that add up to per month in savings? This could easily add up to $15 in savings per month.
If you and your partner both have cell phones, do you really need two? Is there a way that you could share a cell phone? Depending on the plan that you have, you could easily save $50 to $60 per month if you decided to cancel a cell phone. Or if you both have cell phones, do you really need a home land line? Technology is great, however it has greatly increased our monthly expenses.
After looking at what you've spent in the month, how much are you spending on "stuff"? Do you have a "spending allowance" per week or biweekly in your budget? Try to look at the overall amount of cash spent, and purchases on "stuff" (i.e. entertainment, clothes, coffee, DVD's, etc.). Figure out how much money you can actually use for "spending" and put this in your monthly budget. Divide that amount into either biweekly or a weekly sum and use that as your allowance. This way you know every week or every two weeks how much money you have to blow on anything you want. Once your allowance is gone, it's gone. It's a hard thing to do at first and takes planning but atleast it can help prevent monthly overspending.
How else could you cut back on monthly expenses? Try to figure out ways you could cut back on expenses in your home.
Thursday, April 16, 2009
Wednesday, April 15, 2009
Working While on Maternity Leave - Trying to Boost Your Income
The Government of Canada states that maternity benefits are paid to the birth mother for the first 15 weeks, then parental benefits are paid for the remaining 35 weeks for a total of 50 weeks maximum (www.servicecanada.gc.ca).
If you were to work while on maternity leave then your earnings will be deducted dollar for dollar. If you decided to work while receiving the parental leave, you can earn $50 per week or 25% of your weekly benefits, whatever ends up being higher (www.servicecanada.gc.ca). Money earned above that would be deducted dollar for dollar.
However, there is a pilot project in place from December 7, 2008 to December 4, 2010, that has been extended to all regions, allowing you to earn the greater of $75 or 40% of weekly benefits. Please check the Government website for updated details.
If you were to work while on maternity leave then your earnings will be deducted dollar for dollar. If you decided to work while receiving the parental leave, you can earn $50 per week or 25% of your weekly benefits, whatever ends up being higher (www.servicecanada.gc.ca). Money earned above that would be deducted dollar for dollar.
However, there is a pilot project in place from December 7, 2008 to December 4, 2010, that has been extended to all regions, allowing you to earn the greater of $75 or 40% of weekly benefits. Please check the Government website for updated details.
Grocery Shopping - Little Things Add Up
First thing is first, pay attention to the grocery store that you are going to. There is definately a difference in price depending on the grocery store that you go to. If you live in a small town, like I do, where there is only one grocery store, chances are the prices will be higher since there is no competition. Figure out if it is worth it to drive the 10 minutes or so to the next town/city to save the extra money on groceries.
Second, have a plan of what you're going to buy. Write out what you plan on eating for meals for the entire week. This will eliminate extra trips to the grocery store and also cut back on wasted food. Another tip to try is making two or three meals out of similar ingredients. This way you can buy the bigger bulk item at a cheaper price and make more out of it.
When you're shopping, compare name brands with 'no name' brand items. Are there items on your list where you can get away with buying the 'no name' brand or another less popular brand at a cheaper price? What products can you get away with buying as 'no name'? This would be a good discussion to hear from others what they've found to be just as good.
Try to remember to bring any coupons with you to the store. I can't remember the last time that I bought diapers at full price. I always have a $2 off coupon with me and always look for sales on diapers even if I don't need them at the time.
Pay attention to the 'size' of the product and if it's worth it to buy the bigger size at a cheaper price. If you look closely at the price, underneath it it tells you the actual cost per unit (eg. $0.78/litre v.s. $0.34/litre, obviously then one selling for $0.34 is the better deal). Compare to the bigger product and even the 'sale' product to figure out which brand is best to go with it. It doesn't take that much extra time at all. Just a quick glance and you can figure out what the cheaper way to go is.
Keep track of your monthly grocery bill and try to set a monthly budget for yourself. This way you can try to strive for that goal and help to avoid overspending. Try to figure out if you're going to include fastfood outings in that budget as well. Look at what you've spent on groceries for a month and try to find ways to cut back and save.
Second, have a plan of what you're going to buy. Write out what you plan on eating for meals for the entire week. This will eliminate extra trips to the grocery store and also cut back on wasted food. Another tip to try is making two or three meals out of similar ingredients. This way you can buy the bigger bulk item at a cheaper price and make more out of it.
When you're shopping, compare name brands with 'no name' brand items. Are there items on your list where you can get away with buying the 'no name' brand or another less popular brand at a cheaper price? What products can you get away with buying as 'no name'? This would be a good discussion to hear from others what they've found to be just as good.
Try to remember to bring any coupons with you to the store. I can't remember the last time that I bought diapers at full price. I always have a $2 off coupon with me and always look for sales on diapers even if I don't need them at the time.
Pay attention to the 'size' of the product and if it's worth it to buy the bigger size at a cheaper price. If you look closely at the price, underneath it it tells you the actual cost per unit (eg. $0.78/litre v.s. $0.34/litre, obviously then one selling for $0.34 is the better deal). Compare to the bigger product and even the 'sale' product to figure out which brand is best to go with it. It doesn't take that much extra time at all. Just a quick glance and you can figure out what the cheaper way to go is.
Keep track of your monthly grocery bill and try to set a monthly budget for yourself. This way you can try to strive for that goal and help to avoid overspending. Try to figure out if you're going to include fastfood outings in that budget as well. Look at what you've spent on groceries for a month and try to find ways to cut back and save.
Tuesday, April 14, 2009
Universal Child Care Benefit
I'm finding the whole Child Tax Benefit thing to be a bit confusing and no one really tells you what to do. I thought I had applied for the Child Tax Benefit back in October 2008. I called today because I had not heard anything back from them (I know that's a really long gap in between, but I forgot about it!). The Canada Revenue Agency (www.cra.gc.ca), where you go to to apply, told me that they didn't even receive an application from me. The person that I spoke to on the phone said that I needed to reapply either online or by mail. She explained more of the process to me.
She said that we would be eligible for the 'Universal Child Care Benefit.' I believe this is for all families regardless of income, each family receives $100 per month per child under the age of six (www.cra.gc.ca). The Universal Child Care Benefit is different from the Canada Child Tax Benefit. The Canada Child Tax Benefit is a "tax-free monthly payment made to eligible families" under the age of 18 (www.cra.gc.ca). So i'm applying for the 'Universal Child Care Benefit' and not the 'Canada Child Tax Benefit.' Some families may be eligible for both.
She had mentioned that I needed to make sure that I applied before my daughter is 11 months old. As soon as 11 months has passed I guess the process gets even more complicated and more paperwork is required. Even if you do end up applying late you are still entitled to the full amount, they just add the previous months together. Needless to say I made sure that I reapplied today.
She said that we would be eligible for the 'Universal Child Care Benefit.' I believe this is for all families regardless of income, each family receives $100 per month per child under the age of six (www.cra.gc.ca). The Universal Child Care Benefit is different from the Canada Child Tax Benefit. The Canada Child Tax Benefit is a "tax-free monthly payment made to eligible families" under the age of 18 (www.cra.gc.ca). So i'm applying for the 'Universal Child Care Benefit' and not the 'Canada Child Tax Benefit.' Some families may be eligible for both.
She had mentioned that I needed to make sure that I applied before my daughter is 11 months old. As soon as 11 months has passed I guess the process gets even more complicated and more paperwork is required. Even if you do end up applying late you are still entitled to the full amount, they just add the previous months together. Needless to say I made sure that I reapplied today.
Tips to Help Financially Survive Maternity Leave
For many, going on maternity leave means a decrease in total monthly household income. This can cause stress within the home during a time when additional worries are not needed. The Government of Canada offers the basic benefit rate of 55% your average earnings up to a yearly maximum amount of $42,300. Meaning a maximum payment of $447 per week (February 8, 2009; www.servicecanada.gc.ca. Please review this website for further updated information. To be eligible for the Maternity Benefits from the Government of Canada, 600 hours of work are required.)
Depending on the company that you work for and your current contract, this will determine if you will receive additional top-up pay. For example some companies top their employee on Maternity Leave up to 75% for the year while another company may offer 85% for only 15 weeks. Check with your employer to find out what you’re entitled too. It’s very handy to review the Government of Canada website ahead of time to know what information is needed when you’re going to apply.
Once you’ve estimated what % of pay you’ll be receiving during your maternity leave and how long your maternity leave will be, you’ll be able to set-up your maternity leave budget. Become the Financial CEO of your own home. Get your partner involved and make financial decisions together. The first couple of months after your baby is born can be very tiring. Try to set up your financial plan during pregnancy if possible.
Set up a time for a weekly appointment with your partner in your home to go over your finances. Keep track of what you’ve spent from the past week, discuss bills and upcoming expenses. Discuss if there might be any additional surprise expenses and how you will go about paying them. Write everything down in your budget to keep track. Make sure you have a good filing system at home to file away your bills, statements, receipts, etc. Try to figure out ways to cut back on expenses.
During Pregnancy – Maternity Clothes
With each trimester of pregnancy, this may mean a new size in clothes depending on how fast your body changes and how much weight you gain during pregnancy. The healthy recommended weight gain during pregnancy is 25 to 35lbs, if you are a healthy weight when you get pregnant (www.eatrightontario.ca). How much weight you actually gain depends on your original weight and other health factors. Maternity clothes can be very expensive.
Here are some suggestions to help save money:
Borrow clothes from friends – pregnancy has different stages and different sizes; each stage of pregnancy may mean a new size in clothes; it’s not worth it to spend a lot of money on maternity clothes when you’ll only be using them for such a short time; trade with friends, especially shirts and blouses; if you’re spending money on maternity clothes invest money in a couple of pairs of pants (possibly that you can wear both to work and casually out with friends) then just switch the shirts around to create a new outfit.
Look for coupons and sales at maternity stores – attend the local prenatal health fair where there might be maternity stores offering coupons for clothing at a percentage off or money off when so much is purchased, every little bit adds up and can help even if it’s only 10% off or a $20 coupon.
Shop at a regular discount store – check out your favorite store that has bargains and you might be able to get away with buying regular clothes but just in a larger size, that way you’re not paying the price of maternity clothes and the clothes look just as great and
might even be more your style.
Breastfeeding
Breastfeeding is best for baby. There are many health benefits with breastfeeding for mother and baby. Health Canada recommends exclusive breastfeeding for the first six months for healthy term infants (www.hc-sc.gc.ca). Health Canada recommends at six months infants should have solid foods introduced to their diet, with continued breastfeeding for up to two years and beyond (www.hc-sc.gc.ca).
Besides being the best choice for baby, it’s also free! You’d be surprised at how much money a family can save by breastfeeding. The longer you decide to breastfeed the more money you will save. Formula would cost approximately $100 per month. Depending on the Brand of formula and the store from which it was bought. Breastfeeding would save at least $1200 per year. Not to mention the cost of bottles.
Diapers
Cloth Diapers vs. Disposable Diapers:
Disposable diapers can be very expensive; there is a big difference in price when comparing brands. Ways to save money when buying disposable diapers is try to find the brand that works best for you and your baby and then watch in stores when this brand goes on sale. Ask family and friends to keep their eyes open for you and let you know when a store has diapers on sale.
These sales can quickly add up and end up saving you a lot of money. Also keep a close eye on the price of baby wipes. Baby wipes are a product that you can get away with using a No Name Brand, or buy in bulk as the larger package will save money in time. Look for coupons when it comes to buying disposable diapers. Remember to check online to see if you can find any coupons there.
Compare the price of disposable to cloth diapers. The cost will depend on if you use a diaper service or if you buy your own cloth diapers and then do the laundry at home. One example of reusable diapers is the Kushies brand that is available in a 5 pack. The cost is approximately $69.00 (for weight of 10 to22 lbs). If you can get away with using these diapers for one year and bought two packages, the total cost for the year would be approximately $138 plus tax. Compare this to the price of Disposable diapers, example $39.97 for 176 diapers, based on six changes per day = approximately 29 days. So that box would last approximately one month in length. Cost of Disposable diapers would be $497.64. That’s an approximate savings of $369.54 per year!! Not to mention helping to save the environment.
If you decide to use a diaper service, shop around to try to find the best price. The price of each diaper service will vary. Read up on the diaper services in your area and compare to the cost of purchasing your own cloth diapers.
Childcare
If you have family that lives close by why not ask them to babysit for you. This can save a lot of money over time and gives them quality time to spend with your little one, building up their relationship. If you don’t have any family that lives close, why not ask a friend that you feel comfortable with to watch your child. If they have children of their own you can exchange babysitting hours so that neither of you have to pay.
Baby Equipment
Ask around to family and friends that have older children. They might have baby equipment and/or toys stored in their basement just collecting dust. Ask around and see what you can find for free that’s second-hand. Of course you need to make sure the product is still in good working order and is safe. So many items, infants only use for a short amount of time. Examples are a baby play gym, which can sell at $50. A baby bassinette can sell for $150. Both items are only used for the first three months. That would be a $200 savings if you borrowed both.
Infant Clothing
Infant clothing is definitely an item that isn’t used for long. Babies grow at a very fast rate. Infants usually triple their birth weight by one year of age (Canadian Pediatric Society, www.cps.ca). Clothing can be expensive, especially in Name Brand Department stores. Ask around to family and friends for ‘hand-me down’ clothing. Shop around at second-hand stores or garage sales. You’d be surprised to find how many of these clothes remain in great condition.
Introducing Solid Food into Diet
Best Start: Ontario’s Maternal Newborn and Early Child Development Resource Centre recommends waiting until six months of age before introducing solid foods (www.beststart.org). Deciding to make your own baby food can end up saving a lot of money. Compare the cost of making your own baby food to buying jarred food. One example is using sweet potatoes. Buying two sweet potatoes at the grocery store can cost $1.40. These potatoes can yields up to two full ice cube trays, 24 cubes in total. Buying a jar of sweet potatoes can cost up to $0.79, which would fill up only fill 4 cubes in an ice cube tray. If you were to use 2 cubes per meal, the jarred baby food would make only 2 meals, costing $0.40 per meal. Making your own, you would have 12 meals and it would cost $0.12 per meal. That’s a savings of $0.28 per meal!
Another example is bananas. Buying banana’s at $1.74/kg. With five bananas the total cost was $1.43. Each banana can yield two servings, so that would be ten servings total for the cost of $1.43. Buying a jar of bananas can cost up to $0.79. This would yield two servings. Compare the cost: $0.40 for each serving of jarred bananas; $0.14 for each serving of mashed up bananas. That’s less than half the price!Deciding to make you own baby food is also a healthier choice for your baby.
Activities with Baby
There are many activities and many things to do with your little one during the summer and winter months that are free! Call your local Ontario Early Years Centre and find out what activities they have running. Also check with your local library and find out if they have baby activities available. If you have friends on maternity leave, organize play dates with them at each other’s homes rather than going to a play space that costs money.
Going on maternity leave can end up being a financial stressor for many families. Before going out and splurging on baby items decide what you actually need. Remember to cut out the little things! These add up! A popular example is deciding to cut out that daily cup of coffee at your favorite coffee shop. Make coffee at home instead, this can add up over time. Making smart financial choices everyday will help to decrease your total monthly expenses, helping to alleviate financial stress.
Depending on the company that you work for and your current contract, this will determine if you will receive additional top-up pay. For example some companies top their employee on Maternity Leave up to 75% for the year while another company may offer 85% for only 15 weeks. Check with your employer to find out what you’re entitled too. It’s very handy to review the Government of Canada website ahead of time to know what information is needed when you’re going to apply.
Once you’ve estimated what % of pay you’ll be receiving during your maternity leave and how long your maternity leave will be, you’ll be able to set-up your maternity leave budget. Become the Financial CEO of your own home. Get your partner involved and make financial decisions together. The first couple of months after your baby is born can be very tiring. Try to set up your financial plan during pregnancy if possible.
Set up a time for a weekly appointment with your partner in your home to go over your finances. Keep track of what you’ve spent from the past week, discuss bills and upcoming expenses. Discuss if there might be any additional surprise expenses and how you will go about paying them. Write everything down in your budget to keep track. Make sure you have a good filing system at home to file away your bills, statements, receipts, etc. Try to figure out ways to cut back on expenses.
During Pregnancy – Maternity Clothes
With each trimester of pregnancy, this may mean a new size in clothes depending on how fast your body changes and how much weight you gain during pregnancy. The healthy recommended weight gain during pregnancy is 25 to 35lbs, if you are a healthy weight when you get pregnant (www.eatrightontario.ca). How much weight you actually gain depends on your original weight and other health factors. Maternity clothes can be very expensive.
Here are some suggestions to help save money:
Borrow clothes from friends – pregnancy has different stages and different sizes; each stage of pregnancy may mean a new size in clothes; it’s not worth it to spend a lot of money on maternity clothes when you’ll only be using them for such a short time; trade with friends, especially shirts and blouses; if you’re spending money on maternity clothes invest money in a couple of pairs of pants (possibly that you can wear both to work and casually out with friends) then just switch the shirts around to create a new outfit.
Look for coupons and sales at maternity stores – attend the local prenatal health fair where there might be maternity stores offering coupons for clothing at a percentage off or money off when so much is purchased, every little bit adds up and can help even if it’s only 10% off or a $20 coupon.
Shop at a regular discount store – check out your favorite store that has bargains and you might be able to get away with buying regular clothes but just in a larger size, that way you’re not paying the price of maternity clothes and the clothes look just as great and
might even be more your style.
Breastfeeding
Breastfeeding is best for baby. There are many health benefits with breastfeeding for mother and baby. Health Canada recommends exclusive breastfeeding for the first six months for healthy term infants (www.hc-sc.gc.ca). Health Canada recommends at six months infants should have solid foods introduced to their diet, with continued breastfeeding for up to two years and beyond (www.hc-sc.gc.ca).
Besides being the best choice for baby, it’s also free! You’d be surprised at how much money a family can save by breastfeeding. The longer you decide to breastfeed the more money you will save. Formula would cost approximately $100 per month. Depending on the Brand of formula and the store from which it was bought. Breastfeeding would save at least $1200 per year. Not to mention the cost of bottles.
Diapers
Cloth Diapers vs. Disposable Diapers:
Disposable diapers can be very expensive; there is a big difference in price when comparing brands. Ways to save money when buying disposable diapers is try to find the brand that works best for you and your baby and then watch in stores when this brand goes on sale. Ask family and friends to keep their eyes open for you and let you know when a store has diapers on sale.
These sales can quickly add up and end up saving you a lot of money. Also keep a close eye on the price of baby wipes. Baby wipes are a product that you can get away with using a No Name Brand, or buy in bulk as the larger package will save money in time. Look for coupons when it comes to buying disposable diapers. Remember to check online to see if you can find any coupons there.
Compare the price of disposable to cloth diapers. The cost will depend on if you use a diaper service or if you buy your own cloth diapers and then do the laundry at home. One example of reusable diapers is the Kushies brand that is available in a 5 pack. The cost is approximately $69.00 (for weight of 10 to22 lbs). If you can get away with using these diapers for one year and bought two packages, the total cost for the year would be approximately $138 plus tax. Compare this to the price of Disposable diapers, example $39.97 for 176 diapers, based on six changes per day = approximately 29 days. So that box would last approximately one month in length. Cost of Disposable diapers would be $497.64. That’s an approximate savings of $369.54 per year!! Not to mention helping to save the environment.
If you decide to use a diaper service, shop around to try to find the best price. The price of each diaper service will vary. Read up on the diaper services in your area and compare to the cost of purchasing your own cloth diapers.
Childcare
If you have family that lives close by why not ask them to babysit for you. This can save a lot of money over time and gives them quality time to spend with your little one, building up their relationship. If you don’t have any family that lives close, why not ask a friend that you feel comfortable with to watch your child. If they have children of their own you can exchange babysitting hours so that neither of you have to pay.
Baby Equipment
Ask around to family and friends that have older children. They might have baby equipment and/or toys stored in their basement just collecting dust. Ask around and see what you can find for free that’s second-hand. Of course you need to make sure the product is still in good working order and is safe. So many items, infants only use for a short amount of time. Examples are a baby play gym, which can sell at $50. A baby bassinette can sell for $150. Both items are only used for the first three months. That would be a $200 savings if you borrowed both.
Infant Clothing
Infant clothing is definitely an item that isn’t used for long. Babies grow at a very fast rate. Infants usually triple their birth weight by one year of age (Canadian Pediatric Society, www.cps.ca). Clothing can be expensive, especially in Name Brand Department stores. Ask around to family and friends for ‘hand-me down’ clothing. Shop around at second-hand stores or garage sales. You’d be surprised to find how many of these clothes remain in great condition.
Introducing Solid Food into Diet
Best Start: Ontario’s Maternal Newborn and Early Child Development Resource Centre recommends waiting until six months of age before introducing solid foods (www.beststart.org). Deciding to make your own baby food can end up saving a lot of money. Compare the cost of making your own baby food to buying jarred food. One example is using sweet potatoes. Buying two sweet potatoes at the grocery store can cost $1.40. These potatoes can yields up to two full ice cube trays, 24 cubes in total. Buying a jar of sweet potatoes can cost up to $0.79, which would fill up only fill 4 cubes in an ice cube tray. If you were to use 2 cubes per meal, the jarred baby food would make only 2 meals, costing $0.40 per meal. Making your own, you would have 12 meals and it would cost $0.12 per meal. That’s a savings of $0.28 per meal!
Another example is bananas. Buying banana’s at $1.74/kg. With five bananas the total cost was $1.43. Each banana can yield two servings, so that would be ten servings total for the cost of $1.43. Buying a jar of bananas can cost up to $0.79. This would yield two servings. Compare the cost: $0.40 for each serving of jarred bananas; $0.14 for each serving of mashed up bananas. That’s less than half the price!Deciding to make you own baby food is also a healthier choice for your baby.
Activities with Baby
There are many activities and many things to do with your little one during the summer and winter months that are free! Call your local Ontario Early Years Centre and find out what activities they have running. Also check with your local library and find out if they have baby activities available. If you have friends on maternity leave, organize play dates with them at each other’s homes rather than going to a play space that costs money.
Going on maternity leave can end up being a financial stressor for many families. Before going out and splurging on baby items decide what you actually need. Remember to cut out the little things! These add up! A popular example is deciding to cut out that daily cup of coffee at your favorite coffee shop. Make coffee at home instead, this can add up over time. Making smart financial choices everyday will help to decrease your total monthly expenses, helping to alleviate financial stress.
Financial Goal for April
One way to try to keep focused financially is to set a financial goal for the month. My goal for this month is to boycott buying my daily coffee at Tim Hortons. I don't always buy a daily coffee, but I almost do. It's pretty sad to think of the money that I was spending almost every day on a coffee. A medium costs $1.28. Add that up over one month's time and that's $38.40 (based on thirty days). I could definately be using that money somewhere else in my budget. A box of diapers, money towards my daughter's RESP or even putting that towards debt. I'm beginning to realize that every dollar and every cent counts when your on a maternity leave budget.
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