# Am I On The Right Track?



## OutofBounds (Dec 7, 2016)

Hi folks, 

First off, sorry for being long winded here. I’m just looking for some more advice and guidance than what my current resources have been able to offer.

I’m new here and really liking the forum so far. I figure I’d post up where I’m at now and see if I’m on the right track and if you all have any advice to offer. 

Background:

I’m 27 years old. I’m a tradesman and this year I’ll gross right around $60,000 thanks to the crash in the Alberta economy. The previous good years however, allowed me to pay off all debt other than my vehicle. I’ve spent the last 1.5 - 2 years recovering from a pretty big mistake with regards to vehicles…

I traded in a great vehicle that I had bought new and owned for 2 years for a piece of junk that was 2 years new and used for no good reason, regretted it almost instantly, plus it turned out to be a lemon and I poured money into it to to pay it down and sell this summer. I can elaborate on that story if anyone cares. LOL

So now I’m trying to get my financial feet back under me with 3 main goals:;1. Rebuild the $10,000 savings I drained to get rid of my lemon vehicle (it had been my home downpayment money). 2. Build a comfortable emergency fund. 3. Develop a long term savings plan with retirement at 55 as my goal (because fishing is better than work). 

My current standing:

- Currently owe $12,300 on my vehicle. This is on an unsecured line of credit that has a limit of $20,000. It’s the only thing the LOC is being used for. 
- No debt other than the vehicle. 
- I have a Visa with a $1500 limit, that I use to pay household expenses, food, etc and is paid off every month. 
- I’m common law with my girlfriend of 3 years, and other than splitting all expenses 50/50 and a vacation fund, our accounts are all separate. 
- Credit score is in the upper 600’s. 
- I have around $30,000 contribution room in my TFSA since I opened it years ago, but didn’t start really using it until this year.

Accounts (numbers rounded for personal security reasons)

Bank 1:
Regular savings account: $650
Regular TFSA: $20
RRSP: $220 (I haven’t funded these in years…)
Chequing: $2900
Visa: -$400 (will be paid end of month)
LOC: -$12,300

Bank 2:
Chequing: $650 (this is my “fun” money)
Savings: $2000 (this is a joint vacation fund with my girlfriend)

Bank3:
Tangerine Equity Growth TFSA: $750


I’m not incredibly well versed in financial nuances so I’m learning and doing the best I can as a I go. My current budget is as such. 

My vacation pay is paid out each cheque. First thing I do is pull that off and put it into the savings account at bank 2. My girlfriend matches it with hers. We haven’t ever taken a vacation for ourselves so this is important for us to do. Heck, I haven’t had one for just myself that hasn’t been family/event obligated for about 8 years…

The remaining pay check is broken down as such, using $2000 for ease of numbers:

$2000 pay

- Deduct 10% for retirement savings put into Tangerine TFSA . When my vehicle is paid off, I want to increase this to 15%, maybe even 20% depending on circumstances at the time. ($200)

$1800 remaining

- Deduct 10% to rebuild personal savings (that $10K), put into bank 1 savings ($180)

$1620 emaining

- Deduct 10% for “fun money. Life is too short not to enjoy it a bit, put into bank 2 checking ($160)

From the $1460 remaining

- Withdraw $100 cash. $50 goes into an envelope for an emergency cash stash, $50 goes into an envelope for emergency vehicle repairs
- Pay $300 onto LOC to pay off vehicle ($600 per month, I want it paid off fast)

Everything left over stays in my chequing account for bill payments, incidentals etc. It’s also kind of my emergency fund right now, but I’m thinking of diverting funds to a specific account for that. 

My thoughts on improvement at this point:

- Move bank 1 savings to TFSA and close the savings account. 
- Open a chequing account with Tangerine and use that as my emergency fund account, diverting a percentage into there each month. 
- I’m researching investing, stocks etc. I know virtually nothing about these and don’t feel as if I have the money to get started or even risk at this point. However, I want to become better educated on these. 
- RRSP’s. I’m not sure if they’re worth it. Somehow, pushing off taxes until later just doesn’t seem prudent (I HATE procrastination) but I want to look more into them to see if they’ll be beneficial
- Tax claims/write offs. I need to see how I can reduce my tax burden. I’ve been keep receipts for training, tools etc that I can claim. I need to educate myself more on our tax system.

Things I’m not willing to change:

- I’m not selling my vehicle. Other than public transit not being an option, for what my vehicle is got a pretty good deal, its a proven reliable model and it meets all my needs. Once it’s paid off, I won’t be needing another one for a long time. It’s not the most economical as far as fuel economy, but oh well. 
- The vacation fund stays. That’s a huge morale booster, target goal, what have you for my girlfriend and I. We’re really looking forward to being able to actually spend some “us” time together on vacation. 
- The “fun” money. I have hobbies, and I’ve scaled them way back and gone as economical as possible with them. I’ve had a couple events in the last 2 years that have given me a wake up call that life is short, too short. You need to enjoy the here and now, since you never know how much longer you have. 


So what do you folks figure, am I on the right track? Any significant improvements I can make? Any suggestions?

Again, sorry for being long winded.


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## 30seconds (Jan 11, 2014)

What trade are you in? Are you in Alberta as well?

Good job on recognizing the importance of savings. To bad you lost a lot on your vehicle.. I had the same thing happen but when I was 18 and it has changed my perception of vehicles for ever. 

Your break down looks pretty good. A couple things I would recommend would stop taking cash out and putting it in envelope! Imagine if that gets stolen or there is a fire.. Create another bank account and set it up so the money is automatically removed. The book "Automatic Millionaire" talks a lot about this. Set up everything so it is automatic so you cant forget or let your emotions effect it. 

What is the interest rate on your LOC. I'd pay that off ASAP!! I am awful with keeping monthly budgets/tracking but in your situation it may be good. This way you can focus on paying that off as soon as you can. Get any excess money you have after covering your bases into that. Assuming the interest is 6-9%, to get those returns in the market can be difficult/not guaranteed. 

Look at the best chequings/savings account. DO NOT pay for any banking accounts. PC Fincial (CIBC) and Tangerine (Scotia) both offer free chequings accounts and generally have the highest interest rates for new money since there are no physical bank tellers.

Check out my post . Take out the talk of signing up for the TD Eseries and just follow the links/read the books. I found those to be most helpful when I was learning investing.

Good call on your ING fund. Easy, simple and can be set up automatic


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## OutofBounds (Dec 7, 2016)

Thanks for the tips. 

I'm a journeyman welder and I'm still in Alberta. I've been lucky in that I took a 10% pay cut and dropped to 40 hours a week, but I haven't really had any down time. The company I work for has managed to weather the storm so far. That said, I am working on building some qualifications and taking some courses so I can get out of the trade. The instability with it has proven to be something I really hate. I'm looking into a career in fire, EMS or law enforcement. 

The cash is something I've always tried to keep on hand. I don't have alot of faith in the technology, so I like having a backup. I've had it happen a few times when my cards haven't work, the powers out, cash terminals are down etc and the only way to pay for gas or food is cash. I do want to make sure I have a reserve. I may partially take your advice though and put the emergency vehicle repair money into a separate account on auto withdrawal. 

I can't remember off the top of my head the exact number, but I believe my LOC interest rate is around 6%. I'll start diverting some more surplus money at the end of the month to pay that off. I had set a 24 month goal of having it gone, but short term pain for long term gain applies here I guess so the sooner it's gone the better off I'll be. 

Good call on the chequing accounts. I'll have to see what I'm paying for them. Any advice on convincing them to waive fees? My main bank is Scotiabank the second is RBC. I haven't had a problem with either bank, so haven't had alot of reason to move. If they're not willing to waive the fees, should I simply close everything with them and move it over to Tangerine?

I'll check out your post on investing for sure. 

Thanks again.


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## mordko (Jan 23, 2016)

1. Are you renting accommodation? 
2. Like 30seconds said, depending on your loan interest, you may want to forget about savings up until you repay that in full. 
3. I like Mint.com. Really helps you to understand what to focus on in terms of cost cutting. Takes no effort either. Helps to set up and monitor targets.
4. RRSP isn't all that bad. Unless you expect your retirement income to be higher than your current income, it might be the best tool for retirement savings. It also has some tax advantages over TFSA, e.g. if you invest in American shares.
5. I would recommend reading The value of Simple. It's a short and current book for Canadians which summarizes all you need to know.


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## mordko (Jan 23, 2016)

And yes, Tangerine is a better checking account than any of the big 5 can offer, but it won't make a huge difference to your budget one way or another. Besides the vehicle, your top expenses are usually accommodation, kids and food. Accordingly, that's where the real savings can be made.


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## OutofBounds (Dec 7, 2016)

1. Yes, we currently rent and in our town we pay on the low end for what we have. As with all household bills, that's split 50:50 between myself and my girlfriend. We would like to buy within a year or two, but we need to build up our downpayment. I drained mine to pay down and sell my lemon vehicle. 

2. Loan interest is 6% plus or minus 0.05% or so. I could pay more onto it monthly (maybe even around $500 - $700 per month, for a total of $1000 per month) without sacrificing my savings. 

3. I've look at Mint, but haven't felt comfortable with having some internet program attached to my bank account. Are my fears unfounded?

4. I don't expect my retirement income to be higher at this point. I'll have to ask my dad what his pension is like, as he spent 31 years in my ideal career. I'll plan for putting money into RRSP's in the new year to gain some tax breaks. I have no idea about investing them. I don't know squat about investment. 

5. I'll check it out and give it a read. I can always use use more reading material. 


I'll add up what my total bank fees are (I honestly don't have clue, never been something I considered), but if they're not stupid I may hold off on moving everything for now but plan for it in the not too distant future.


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## mordko (Jan 23, 2016)

2. At 6% you want to prioritize loan repayment over everything else. You won't get a saving rate half as good anywhere, so consider repayments as the best saving you can get. Seriously, from the financial point of view, this should be you priority number 1. And 2. And 3. The interest isn't far off 1000/year, so once you no longer have this loan, you can save that money with no extra effort. 

3. Ok, that's a decision everyone makes for themselves. I am comfortable with Mint, but you may not be. Although... frankly, they wouldn't have much to steal off you just yet. If not Mint, consider making a budget and carefully recording everything with some other software or a spreadsheet. 

4. Do Read The Value of Simple. The book provides step by step tutorial on investment for novices, as well as some theory. You shouldn't invest until after you repayed your loan in full, so you have time. After that you will probably be saving for a downpayment on your house. Keep in mind that stock investments are not appropriate for anything short term, that is anything less than 5 years.

In general, 60k and no kids should keep you on solid financial ground, but it's like O'Henry said... If a girl earned $10 and spent 9.99, she was doing great, but god help her if she spent $10.01.


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## OutofBounds (Dec 7, 2016)

Huh, doesn't look like my last post went through. I'll try again. 


Thanks alot for the info and tips. I'll start prioritizing the loan repayment. I'll deal with the self-guilt about paying my savings back. Short term pain for long term gain idea I suppose. It really does make more sense to get that paid off and avoid the interest. Once it's gone I can seriously build up my savings. I'll look into Mint some more and their security measures. Having had personal contact with identity theft, I'm somewhat paranoid when it comes to personal security. I purchased and downloaded The Value of Simple to my ereader and will read it over the holidays. I also have a copy of Investing For Dummies, Canadian edition that I should really dig into as well. 

You're absolutely right that $60K should be plenty to live off, never mind the additional money my girlfriend brings into the home. Together we should be near $90K total. Our accounts are separate so I don't know all her details but she's also paying down her own debt. She had $5000 in credit card debt when we met. I had her set up a line of credit and move that debt there to save big time on interest. I think she's down to around $3500 owing now. 

It really hasn't felt like we were making okay money the last couple years due to throwing money into the vehicle and our poor spending habits in the past. We have put together a rough budget and it's helped me get to where I am. I've reduced my impulse toy purchases so much that even when it's something I need and I have the money in my "fun" account to pay cash, I have to wrestle with myself to make the buy. We've also reduced eating out from twice a week on average to once a paycheck. 

Thanks again for the advice. It's been a huge help. Any other tips, tricks or wisdom to share?


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## 30seconds (Jan 11, 2014)

Ill say this again but great work man! Stay focused and get that car paid off and you will feel a huge weight off your shoulders and be able to watch your savings accumulate.

With interest being 6% I personally wouldn't put money towards investments, as 6% is an overall average of what more look to save long term. So paying off that loan you are making what the market on average makes. 

While paying off your loan learn to invest so that once this is paid off you can put your investment knowledge to work. There once was a saying "knowledge is everything". Knowledge is easy to obtain now.. its putting that knowledge to work that is now important. Check out all those links in my other post and there is good information about index investing and TFSA vs RRSP that you should read. 

"I don't expect my retirement income to be higher at this point." I feel like you're limiting your self. You are 27 and in a great trade. Your "ideal career" that your father has, I guarantee you can find a way to increase your income. Have your current self make your future self the best it can be. 

Words of Wisdom: Stay on this forum and redflagdeals, read, ask, listen. Take your time and find a strategy that works for you. There are people on this forum that are 80% bonds/gic and others that are 80% equity. What works for someone doesnt mean it will work for you. Making savings automatic is the best thing for me.

I worked in Alberta for 4 years in the trades and got shipped back to ontario last year. I have made lots of mistakes but thanks to all the knowledge available I am very comfortable with my strategy now. Its not what you make.. its what you save

Cheers

Edit: Dont buy stocks recommended to you on the forum unless you fully understand how to value a company and can make your own point of view. It can lose you a lot of money starting out.. trust me


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## GreatLaker (Mar 23, 2014)

OutofBounds said:


> Any other tips, tricks or wisdom to share?


Finiki is an excellent Canadian source for financial and investing knowledge:
http://www.finiki.org/
http://www.finiki.org/wiki/Getting_started


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## Oldroe (Sep 18, 2009)

All the above is good. You are correct that life needs to be fun so have some. 

When you get to investing take a small amount of money 3k and buy a bank, etf, and something in the $10 range and then start your study. Skin in the game.


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## Eclectic12 (Oct 20, 2010)

OutofBounds said:


> ... - Move bank 1 savings to TFSA and close the savings account.


Keep in mind that like the RRSP, the TFSA is a container ... what you can do with the $$$ contributed depends on what the account allows. As long as multiple accounts don't over complicate things from your perspective, they are allowed. Keep in mind that the contribution limits are per person so two accounts means making sure the total contributions don't exceed the limit.

For instance, I know I want some cash for emergencies but want most of my TFSA money to be invested. I have a saving type TFSA and a brokerage TFSA. The savings one can only hold cash while the brokerage one can buy just about anything (i.e. stocks, bonds, ETFs, GICs, etc.).




OutofBounds said:


> ... - Open a chequing account with Tangerine and use that as my emergency fund account, diverting a percentage into there each month.


I'd recommend a chequing paired with a savings account. I can transfer from the higher paying savings (or my savings TFSA) on a next business day basis. Leaving the bulk of the emergency money in the chequing account drops the interest paid a lot. Using Tangerine, chequing is paying 0.15% while savings is paying 0.80%.




OutofBounds said:


> ... - I’m researching investing, stocks etc. I know virtually nothing about these and don’t feel as if I have the money to get started or even risk at this point. However, I want to become better educated on these.


In the Investing CMF section, there is a sticky *Eight with Weight: A Reading List for New Investors*. The library usually has a good introductory investing book(s). Don't forget to check for a section on taxes as learning what is needed then setting up a way that works for you to keep records as well as update info is far easier than scrambling after the fact.

There is also http://canadiancouchpotato.com/ which if you like the method, means less time managing what to pick.




mordko said:


> OutofBounds said:
> 
> 
> > ... - RRSP’s. I’m not sure if they’re worth it. Somehow, pushing off taxes until later just doesn’t seem prudent (I HATE procrastination) but I want to look more into them to see if they’ll be beneficial ... I'm a journeyman welder and I'm still in Alberta ... I don't expect my retirement income to be higher at this point ... I'm looking into a career in fire, EMS or law enforcement.
> ...


It sounds like you are in the second from the lowest tax level.
http://www.taxtips.ca/taxrates/ab.htm

I suspect you may be better off starting slow or skipping the RRSP for now. From what I understand, fire & law enforcement have pretty good pensions (likely EMS as well but haven't seen comments on it). Doing a bit now won't hurt but will save more RRSP contribution room for a higher salary later. It is a bit of a catch 22 as should it take a long time be accepted, there is an opportunity cost.

Then too, most comparisons I have seen for the TFSA versus the RRSP look at 100% going into one or the other. Where one is going to get a tax refund, one can contribute it to a TFSA. This shelters the refund from Canadian taxes plus reduces the $$ growing in the RRSP, potentially mitigating the future tax bill.


[/QUOTE] ... I'll plan for putting money into RRSP's in the new year to gain some tax breaks. I have no idea about investing them. I don't know squat about investment.[/QUOTE]
What does the RRSP that is open allow? 
If it is something secure (ex. savings or GIC) that won't be bad for now while you learn about investing. As I say, I'd go slow for now on the RRSP due to your low tax level so that amount being added shouldn't be a big issue down the road.




OutofBounds said:


> ... - Tax claims/write offs. I need to see how I can reduce my tax burden. I’ve been keep receipts for training, tools etc that I can claim. I need to educate myself more on our tax system.


Usually the library also has general tax books that would cover more than investing. The Taxation section here is pretty good for specific questions, though tends towards investments.
If you are comfortable with computers, many either buy or use free tax software such as http://studiotax.com/en/. Some will pay a lower fee to do their tax return online but I like to keep my data on my computer ... to each their own.


Cheers


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## OutofBounds (Dec 7, 2016)

Good stuff, thanks. I'll look more into the RRSPs. I think the one I have now is simply cash. My unused TFSA account is also cash. I'll open a chequing and savings account at Tangerine to give myself a little more organization room and for my emergency funds. The Couch Potato blog was what put me onto the Equity Growth Portfolio. It's a pretty easy way to begin my retirement savings while learning about investing. 

I'll look at the other reading material you linked to as well. Thanks again for the help, I'm soaking it up.


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## canew90 (Jul 13, 2016)

Wish I had taken Saving for the Future when I was 27. Good for you. 
Having said that you should seriously consider putting aside money each month that will be considered UNTOUCHABLE and is savings for your future. I'd suggest you start with $100 per month and add more periodically or increase the amount if your earnings increase.

Where to put the money? Some might suggest ETF's, others Mutuals (which I doubt because the fees are higher), some might even say a savings account like Tangerine and invest when the amount grows to $1,000 or more. The choice is yours and either will grow over the long term, but slowly as you are not investing large amounts.

For small amounts I always recommend DRIP's. Check out http://www.dripprimer.ca/aboutdrips for details about DRIP's. We have our 18 yr old grand daughter investing in this method and she has $100 per month coming out of her chequing account and buys about 1 1/3 shares a month of a major bank. Each quarter she receives a dividend and those funds are used to buy more shares. With DRIP's there are no fees to buy shares or reinvest and one buys fractions of shares so it compounds quicker. At some point when the number of shares or value of the DRIP grows, she'll transfer some of the shares to her TFSA account, keeping taxes down and still allowing her to invest with no fees. That's the problem with etf's, there is a fee, even if it's only a fraction of 1%, but as your portfolio grows so does the amount of the fee. Plus one owns a lot of stocks one might not want to own, just to get diversification. I'd also suggest maxing out your TFSA before using an RRSP (unless you can get your company to contribute a portion to an RRSP). 

Anyways, there's lots of info available. Take the time to read and learn then decide.


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## OutofBounds (Dec 7, 2016)

That DRIP primer site is very interesting. Yet another option for me to learn about. Thank you. 

I've been working through The Value of Simple, and it's very informative and easy to follow. I've also begun to re-do my budget to allow me to maximize my ability to pay off my vehicle. I'm going to continue to put 10% of my earnings into my Tangerine TFSA for retirement savings, since being able to walk away from a regular job at age 55 is very important to me. Otherwise, I'll be funnelling as much cash flow as possible onto the vehicle debt while increasing my knowledge of saving and investing so I can better manage my finances once I have more money available.


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## Oldroe (Sep 18, 2009)

Drips are fine. There down fall is selling them is a nightmare.

So only rock solid stuff.


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## OutofBounds (Dec 7, 2016)

Oldroe said:


> Drips are fine. There down fall is selling them is a nightmare.
> 
> So only rock solid stuff.


How is selling them a nightmare? Fees, hassle, fewer buyers?

If I went that route, I would focus on well established stable ones.


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## GreatLaker (Mar 23, 2014)

OutofBounds said:


> How is selling them a nightmare? Fees, hassle, fewer buyers?
> 
> If I went that route, I would focus on well established stable ones.


Selling dripped shares is not a problem... they are just regular shares.

The challenge is if you hold securities in a non-registered account you need to know the cost base to correctly report capital gains. And for that you need to keep track of the number of shares purchased or sold, and the price per share. So if you DRIP shares that pay a quarterly dividend in a non-registered account for 10 years you will have the original shares plus another 40 transactions to track.

Not really that hard if you have the diligence to track it properly. You can use a spreadsheet. There are several online resources to explain it.
https://en.wikipedia.org/wiki/Adjusted_cost_base
Here is CRA's page: http://www.cra-arc.gc.ca/E/pub/tg/t4037/t4037-e.html#P1185_82580
This website is also good: http://www.adjustedcostbase.ca/


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## My Own Advisor (Sep 24, 2012)

Welcome to the forum. You'll learn lots here from others.

Some comments based on yours:

1. Good for you to acknowledge your money mistakes and avoid similar ones in the future. Most don't.

2. I think the $10k savings fund is a great goal. We did the same even though it took us years to get there.
http://www.myownadvisor.ca/10000-emergency-fund/

3. Develop a long-term savings plan....good on you. Every bit helps, even $25 here and there every week.
I would advise you to making savings for investment purposes automatic as much as possible. It's a forced savings plan but that works.

Start with $25 or $50 per if you have to. You'll be surprised how as you get older, as your income increases with age and time, how that might turn into a few hundred bucks per week.

I would suggest the following resources on this page, some of them are free.
http://www.myownadvisor.ca/saving-investing-resources-newbies/

(Note: I put the Value of Simple on this page as well).

4. In terms of priorities, I think it's good to focus on these:

-Pay off all credit card debt every month
-When all high-interest debt is gone, focus on lower cost debt
-As lower cost debt is going down, build your emergency fund/savings fund ($10k or whatever works for you)
-Focus on maxing out your TFSA
-After TFSA, focus on RRSP
-If still no debt after your TFSA and RRSP are maxed out (a huge milestone for many), focus on building non-registered investments.

5. Through all the above, budget for the fun stuff in life. Life is short.

Other books I would highly recommend:
-Millionaire Teacher by A. Hallam. I just got his new updated version in the mail!
-The Investment Zoo by S. Jarislowsky.
-The Behavior Gap by C. Richards.
-Stop Over-Thinking Your Money by P. Banerjee.
-Wealthing Like Rabbits by R. Brown.

Once you read those books, or even some of them, you'll know what to do with your money, how to disaster-proof your life and more. 

Good luck and see you around the forum...


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## Lost in Space 2 (Jun 28, 2016)

Some excellent advice from Mark above!

Couple of thoughts to add to this
Fugalwoods is hosting an Uber Frugal Month for January. Some 3500 people have signed up for it including me. Info via MMM

Check out Till Debt Do you Part. Highly entertaining and Canadian to boot! Available on youtube. 

Check out Till Debt Do you Part. Highly entertaining and Canadian to boot! Available on youtube. 

A quote from Tony Robins really helped me when I was down over finances, he said “people overestimate what they can do in a year and underestimate what they can do in a decade. Very true. 

Finally don’t fall into the trap of equating Frugality with cheapness or being a skinflint. How often have we all heard someone say “I work hard so I party hard”, or “I wanna enjoy life”. But people like this get it backwards. Frugality is what allows you to have your cake and eat it too! The wife and I are leaving early tomorrow and driving to Paris. Booked New Years eve at a 4 star hotel near the Eiffel Tower. We’re also doing an exclusive lunch with a chef as one of our treats (max 4 person). But at the same time frugality says I don’t want to come home with maxed out the rest of the time it’s free walking tours and lunch back at the hotel (we’re bringing a cooler with food)!
This fall, depending on my wife’s parents health - may be home sooner, we flying back to Canada and touring through Ontario for 10 days. We come home every 2-3 years but this year I realized that if we move our dates back a bit (from August to September ) we’d save a fortune on flights and it’s off season for RV rentals. 

By being frugal and a bit careful we’ve been able to do far more travelling and staying at better hotels than if we managed our money the way the average Canadian does! Frugality rocks


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## Oldroe (Sep 18, 2009)

The absolute minimum time to sell a drip would be 1 month. If you get stuck with a dog expect to get crushed.


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## OutofBounds (Dec 7, 2016)

Thanks again to everyone who has posted. The amount of knowledge I'm soaking up is incredible. I've written a list of stuff I need to do, stuff I need to read/review, and stuff I should learn for down the road when I have a more substantial amount saved up. 

I'm glad I've been budgeting and saving what I have now, as I just got hit with $800 in repairs to my vehicle. Thankfully the bit I've been saving over the last few months takes the sting out of it. I had the mechanic go over the vehicle as well, and it look like other than tires in late spring and a timing belt towards fall, my vehicle should be good to go for awhile now. I'll just have to budget for those two upcoming maintenance items. 

I've also opened up no-fee chequing and saving accounts with Tangerine to use as my emergency savings/funds accounts. I'm thinking chequing for vehicle funds, savings for longer term emergency (think job loss etc).

I'm planning to take a very close look at my budget, income and expenses over this weekend and work out the best way to maintain 10% of income into savings and about $300 per month saving towards future vehicle repairs while hammering down the debt owed on it. If I need to cut back on some things, sell a few things etc, I'll find a way. Probably the biggest thing I've taken away from this thread is that I need that vehicle paid off to free up finances and flexibility for the future. 

Thanks again to everyone so far.


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## Eclectic12 (Oct 20, 2010)

Oldroe said:


> The absolute minimum time to sell a drip would be 1 month. If you get stuck with a dog expect to get crushed.


YMMV ... most that are company DRIPs that I have read the details for are quarterly for selling. 

Where it is a non-company DRIP then there seems to be two main flavours. A company style DRIP such as Canadian Share Owner have their own schedule. The stock itself may be quarterly but CSO may run monthly sells, while keeping the full dividend re-investment.

The other non-company DRIP is the one run by brokerages where only full shares are re-invested. Sell can happen on any trading day.


Cheers


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