During the last few weeks I've recently got my first idea of what an extended leave from my family feels like. I have to admit I'm not crazy about it so far.
To give you all some background I have travelled a lot with my various jobs before this, but never for this long of a period. I'm going to be just shy of three weeks when I get onto a plane later this week (by the way, this is your fair warning that Friday's post will be up very late). Being away has never bothered me that much before until this time. Why? I have to admit I think it has to do with the kid.
Before leaving my wife was difficult, but I knew she could handle it. Now she has been stuck playing single parent for the last few weeks and I feel guilty leaving her to handle all of that. Also I find after being home for a long period of time that the being away is hard for me as well. Overall it just isn't worth the lose of my personal time being away this long.
So in light of all this I've been laying some ground work with the bosses and the IT people about doing remote projects. As of right now almost everything I have done down here that needed to be done in person could have been done in a week. After that they could have saved a small fortune and shipped me home early and worked out of my Regina office. Phone calls, email, internet and scanning documents could have easily covered the rest. I guess the big issue about this is getting people used to the idea of remote working. I'll keep you all posted on how I do with getting them to accept the idea.
Showing posts with label Kids. Show all posts
Showing posts with label Kids. Show all posts
Tuesday, June 19, 2007
Wednesday, June 13, 2007
How Not to Go Broke After Having Children
Well my fellow blogger, Middle Class Millionaire recently became a parent. So I thought I would share some things I've learned about raising kids and money so far.
Kids accept anything they grow up with as normal. This is your key to raising a happy child without going broke. For example, my kid mostly wears clothes from Walmart. Why? I don't need high quality when the out grows it before wearing it out. So why spend the money, unless your wife is having a 'It is SO CUTE' moment and the item is on sale at the Please Mum store.
The fancy looking crib is really for yourself and not your kid. Otherwise you would just accept the fact it doesn't have to look good to any but you 95% of the time for only a few years. Try to find one that converts to a toddler bed so you can really get some use out of it.
A cradle is a waste of money for most people. The kid doesn't need to be in there in the first place. A few rolled up towels gives the same effect in the crib. Also the change table is a complete waste of money, because if you were really worried about their safety you would just change them on the floor on mat. You can also skip the baby tub, since a foam mat in the bottom of your regular tub works just as well for under $5.
Cloth diapers are WAY cheaper in the long run, so try to switch when you can. Bottle baby food is useful for the first try at anything, then wash the jars and get a blender and make your own.
If you want a cute custom receiving blanket, go to your fabric shop and buy 1 square meter (1 square yard) of fabric and hem the edges. My wife got a set of these from a friend and loved the extra big size.
One thing to really put some money into is a good chair in the kid’s room for the first while (if your really smart you might be able to just borrow one from elsewhere in the house). You will be in there a lot until the kid is sleeping through the night, so make sure you can get comfortable.
Other than that, buy a digital camera, as then you can take a few hundred pictures and just print what you need rather than everything.
One last thing, remember that your kid is more important than anything in the world to you, so get some life insurance for both of you and make sure you get the kid a SIN number ASAP so you can open a RESP account right away.
Kids accept anything they grow up with as normal. This is your key to raising a happy child without going broke. For example, my kid mostly wears clothes from Walmart. Why? I don't need high quality when the out grows it before wearing it out. So why spend the money, unless your wife is having a 'It is SO CUTE' moment and the item is on sale at the Please Mum store.
The fancy looking crib is really for yourself and not your kid. Otherwise you would just accept the fact it doesn't have to look good to any but you 95% of the time for only a few years. Try to find one that converts to a toddler bed so you can really get some use out of it.
A cradle is a waste of money for most people. The kid doesn't need to be in there in the first place. A few rolled up towels gives the same effect in the crib. Also the change table is a complete waste of money, because if you were really worried about their safety you would just change them on the floor on mat. You can also skip the baby tub, since a foam mat in the bottom of your regular tub works just as well for under $5.
Cloth diapers are WAY cheaper in the long run, so try to switch when you can. Bottle baby food is useful for the first try at anything, then wash the jars and get a blender and make your own.
If you want a cute custom receiving blanket, go to your fabric shop and buy 1 square meter (1 square yard) of fabric and hem the edges. My wife got a set of these from a friend and loved the extra big size.
One thing to really put some money into is a good chair in the kid’s room for the first while (if your really smart you might be able to just borrow one from elsewhere in the house). You will be in there a lot until the kid is sleeping through the night, so make sure you can get comfortable.
Other than that, buy a digital camera, as then you can take a few hundred pictures and just print what you need rather than everything.
One last thing, remember that your kid is more important than anything in the world to you, so get some life insurance for both of you and make sure you get the kid a SIN number ASAP so you can open a RESP account right away.
Tuesday, April 10, 2007
Wills
During the 100th Post Contest, Ricardm suggested a topic of wills. A will can be a tricky thing in regards to its importance shifts around on you depending on your situation. Let's review a few different situations.
Situation #1 - Single and No Kids
Here a will is not as important for a lot of people since they have no dependents, yet it still can be useful. In this case it can be used to direct your estate to someone who may need it more than your parents (whom will typically get everything if you die without a will) such as a sibling. If you have no living relatives the government will take over your estate.
Situation #2 - Married and No Kids
In this case if you die without a will the spouse will still get everything, but in the event both of you die you will have no say on where the estate goes. Instead it follows the order in which you died. For example, if you die in a car accident and then your spouse dies later at the hospital the estate would go to your spouses parents. Your parents would get nothing. So a will in this case starts to become important.
Situation #3 - Married with Kid(s)
Once you hit this stage it is VERY important to have a will. Otherwise your kids could get part of your estate even when your wife is still alive [depending on your province your wife could get as little as the first $40,000 (in AB) up to the first $200,000 (in ON) before spliting the rest with the kid(s) - see here]. Also you have to determine who will become guardians of your kid(s).
In all of the above cases if you don't have a will the government will appoint someone to divide up your estate and charge the estate for the service. So in the interest of keeping the government out of your dead pocket you will want a short will.
Depending on your province you might be able to use a holographic will to explain your wishes (see here for where this works). A holographic will is written entirely in your handwriting and with your signature and date. It works well to provide a basic will in Situations #1 and 2 above, yet when you have kids you will likely want to see a lawyer about preparing a formal will.
That is a brief overview of wills, obviously you should do your own research by your province to determine what works for you, but in any case a will is generally a good idea to speed things along once your dead and prevent the government from taking more of your money. Good old death and taxes right?
Situation #1 - Single and No Kids
Here a will is not as important for a lot of people since they have no dependents, yet it still can be useful. In this case it can be used to direct your estate to someone who may need it more than your parents (whom will typically get everything if you die without a will) such as a sibling. If you have no living relatives the government will take over your estate.
Situation #2 - Married and No Kids
In this case if you die without a will the spouse will still get everything, but in the event both of you die you will have no say on where the estate goes. Instead it follows the order in which you died. For example, if you die in a car accident and then your spouse dies later at the hospital the estate would go to your spouses parents. Your parents would get nothing. So a will in this case starts to become important.
Situation #3 - Married with Kid(s)
Once you hit this stage it is VERY important to have a will. Otherwise your kids could get part of your estate even when your wife is still alive [depending on your province your wife could get as little as the first $40,000 (in AB) up to the first $200,000 (in ON) before spliting the rest with the kid(s) - see here]. Also you have to determine who will become guardians of your kid(s).
In all of the above cases if you don't have a will the government will appoint someone to divide up your estate and charge the estate for the service. So in the interest of keeping the government out of your dead pocket you will want a short will.
Depending on your province you might be able to use a holographic will to explain your wishes (see here for where this works). A holographic will is written entirely in your handwriting and with your signature and date. It works well to provide a basic will in Situations #1 and 2 above, yet when you have kids you will likely want to see a lawyer about preparing a formal will.
That is a brief overview of wills, obviously you should do your own research by your province to determine what works for you, but in any case a will is generally a good idea to speed things along once your dead and prevent the government from taking more of your money. Good old death and taxes right?
Tuesday, March 20, 2007
Things You Didn't Know about the Canadian Fedral Budget 2007
It was a interesting day yesterday for Canada and the budget (The full document is 478 pages). I personally got a bunch of goodies which I liked, such as:
- Child Tax Credit of $2000 per kid (P.226 - Bottom)
- Increased funding the RESP matching program and raising the maximum total contributions to $50,000 (P.22- Bottom)
Seniors also did well with the previously promised pension splitting, increased age deduction (up $1000) (P.25 for both), and two extra years on the age limit to convert RRSP's (P.231). All of these measures should make retirement a lot happier for a lot a baby boomers entering their golden years soon.
Yet the three things I find the most interesting in the budget was barely mention if at all in the media. The first one I won't blame people if they forgot about it, but now that the Bloc has promised to support the budget bill the income trust lobby is now officially dead. Tucked WAY back in the end of the budget document (P.442) is the statement that the government will proceed with the previously announced 'Tax Fairness Plan" which will see income trusts taxed in four years. So for anyone with the faint hope that things would change. Sorry the free ride is over in a few years.
The second very interesting piece of news that again isn't getting a lot of media attention is the fact the government is going to form a national security commission (P.179). Basically the federal government got tired of waiting for the individual commissions to do anything and is going to force them to merge. So Canada is finally getting off of a very short list of countries that lack a national security commission, which should hopefully reduce red tape for investors who get ripped off and also provide a clearer set of national rules on investment information.
Then there is the third piece of news that I read in an obscure part of the budget document was the reduction of red tape for small business owners by up to 20%(P.183). My wife's business manages to be small enough to avoid much of the red tape, but it is nice to know that she can grow it a bit more before hitting paying tax in installments.
Despite the length of the document it's a fairly organized, so I suggest you download a copy and skim the introductions to each section where they highlight the changes. You might find some minor but useful things that will help you personally.
- Child Tax Credit of $2000 per kid (P.226 - Bottom)
- Increased funding the RESP matching program and raising the maximum total contributions to $50,000 (P.22- Bottom)
Seniors also did well with the previously promised pension splitting, increased age deduction (up $1000) (P.25 for both), and two extra years on the age limit to convert RRSP's (P.231). All of these measures should make retirement a lot happier for a lot a baby boomers entering their golden years soon.
Yet the three things I find the most interesting in the budget was barely mention if at all in the media. The first one I won't blame people if they forgot about it, but now that the Bloc has promised to support the budget bill the income trust lobby is now officially dead. Tucked WAY back in the end of the budget document (P.442) is the statement that the government will proceed with the previously announced 'Tax Fairness Plan" which will see income trusts taxed in four years. So for anyone with the faint hope that things would change. Sorry the free ride is over in a few years.
The second very interesting piece of news that again isn't getting a lot of media attention is the fact the government is going to form a national security commission (P.179). Basically the federal government got tired of waiting for the individual commissions to do anything and is going to force them to merge. So Canada is finally getting off of a very short list of countries that lack a national security commission, which should hopefully reduce red tape for investors who get ripped off and also provide a clearer set of national rules on investment information.
Then there is the third piece of news that I read in an obscure part of the budget document was the reduction of red tape for small business owners by up to 20%(P.183). My wife's business manages to be small enough to avoid much of the red tape, but it is nice to know that she can grow it a bit more before hitting paying tax in installments.
Despite the length of the document it's a fairly organized, so I suggest you download a copy and skim the introductions to each section where they highlight the changes. You might find some minor but useful things that will help you personally.
Wednesday, February 21, 2007
Parents Influence Over Their Kid's Money
Over at Get Rich Slowly, the author had an interesting post on how parents influences a child's view on money and how that carries over to their adult life. I have to admit this got me thinking a bit about my own family's views on money.
I grew up in the middle class so I never felt deprived of anything, yet at the same time I wasn't spoiled. Now as I can see my parent's over spending habits, I have to wonder why I don't overspend at all. I know that I'm their son (actually I was the only baby in the hospital, so I couldn't have even been switched at birth), but when it comes to money genetics I might as well be a different species. I always have lived below my means, saved money and avoided debt before I even knew those were good things to do.
Perhaps the two events that shaped me most weren't even noticed by my parents. The first was one day I was taken to the bank to buy some Canada Savings Bonds. Upon getting to the bank I was informed that I had enough to get a term deposit instead and get a higher interest rate. In that moment I learned something important: Having more money give you even more choices to make your money work for you. So $100 to invest is good, but $10,000 is better.
Then other thing my parents did for me that really hit home was during my second year of university they stopped paying the bills. They had decided to buy a cottage instead of funding the remainder of my education. So they co-signed some loans and I was now living off debt to pay my school. I hated it, but it taught me to pay attention to my spending. Needless to say I reduced my spending at school by 10% the next year and I started paying down the debt with every dollar I could after leaving school. So I learned, debt can be good tool, but don't depend on or think for a second it is your friend. Debt truly is a master/slave relationship, you get to pick which one you will be.
So what's your story, did you pick up terrible spending habits from your parents or did you learn to save early on? If you feel like sharing leave a comment or send me an email (candian.dream.free.at.45@gmail.com).
I grew up in the middle class so I never felt deprived of anything, yet at the same time I wasn't spoiled. Now as I can see my parent's over spending habits, I have to wonder why I don't overspend at all. I know that I'm their son (actually I was the only baby in the hospital, so I couldn't have even been switched at birth), but when it comes to money genetics I might as well be a different species. I always have lived below my means, saved money and avoided debt before I even knew those were good things to do.
Perhaps the two events that shaped me most weren't even noticed by my parents. The first was one day I was taken to the bank to buy some Canada Savings Bonds. Upon getting to the bank I was informed that I had enough to get a term deposit instead and get a higher interest rate. In that moment I learned something important: Having more money give you even more choices to make your money work for you. So $100 to invest is good, but $10,000 is better.
Then other thing my parents did for me that really hit home was during my second year of university they stopped paying the bills. They had decided to buy a cottage instead of funding the remainder of my education. So they co-signed some loans and I was now living off debt to pay my school. I hated it, but it taught me to pay attention to my spending. Needless to say I reduced my spending at school by 10% the next year and I started paying down the debt with every dollar I could after leaving school. So I learned, debt can be good tool, but don't depend on or think for a second it is your friend. Debt truly is a master/slave relationship, you get to pick which one you will be.
So what's your story, did you pick up terrible spending habits from your parents or did you learn to save early on? If you feel like sharing leave a comment or send me an email (candian.dream.free.at.45@gmail.com).
Tuesday, December 05, 2006
Paying for the Kid's Education (RESP)
As I was doing my estimates for retirement, it occurred to me that I was planning to retire exactly as my kid will be in post secondary education. So how can I do both? Simple I don't plan to pay for my kid's entire education.
It's not that I'm not going to help, but I didn't have my entire education paid for, so why would I pay for all of my kid's education? I personally found that when my parents stopped paying the bill my spending dropped by about $2000/year. It forced me to question my spending habits and really made me think "Do I really need to buy this?"
I personally found the easiest way to fund a RESP for my kid is to take the Child Tax Benefit and that $100/month from the Federal Government and pour it into a RESP to receive the Education Saving Grant . In my case, that works out to $120/month of government's money that is then topped up to $150/month. So it costs me nothing until the kid no longer qualifies for the $100/month at which point I will continue to fund that amount in every month.
As to where to put the money. I suggest you read the following from the Canadian Capitalist, which is a great post with links to many helpful resources.
It's not that I'm not going to help, but I didn't have my entire education paid for, so why would I pay for all of my kid's education? I personally found that when my parents stopped paying the bill my spending dropped by about $2000/year. It forced me to question my spending habits and really made me think "Do I really need to buy this?"
I personally found the easiest way to fund a RESP for my kid is to take the Child Tax Benefit and that $100/month from the Federal Government and pour it into a RESP to receive the Education Saving Grant . In my case, that works out to $120/month of government's money that is then topped up to $150/month. So it costs me nothing until the kid no longer qualifies for the $100/month at which point I will continue to fund that amount in every month.
As to where to put the money. I suggest you read the following from the Canadian Capitalist, which is a great post with links to many helpful resources.
Friday, December 01, 2006
Stay Home with the Kid or Work…Or Do Both?
Two years ago I became a parent about ten weeks earlier than I should have. After five air ambulance transfers, four hospitals, and two rounds of neurosurgery and sixty seven days later we got our baby home. Needless to say, my wife had a very strong desire to stay home with our baby to ensure his development was progressing normally for the next several years. I agreed, but we needed to make it work with the budget after the maturity leave money ran out.
I worked it out that we could exist on my income alone, but there would be no extras (ie: no vacation money, Boxing Day shopping, or us covering the bill at a family supper out). So I gave the wife the news and offered her a challenge. “You have to earn some kind of an income while you stay home. I don’t care how much it is, just something.”
So she went to work during her maturity leave and got a home based daycare up and running in our house. The cash flow is tiny, but when you consider the cost savings on work clothes, commuting, paying for daycare and the tax write off of a home based business it does make sense for us.
Here’s a brief example:
After tax and expenses daycare income to house $240/month
Work clothes savings $50/month
Commuting savings $57/month (bus pass)
Daycare savings $600/month (local child care rate)
Daycare portion of house bills $150/month
Total savings/income to the house $1097/month
Strangely enough that was about what she was taking home prior to going on maturity leave. So I suggest that if your one of you is earning less than $30K/year and have at least one child that you look into the idea of one of staying home with a small business. You might just find that you can have your cake and eat it too.
This post is now part of Carnival of Personal Finance #77 over at Money and Values.
I worked it out that we could exist on my income alone, but there would be no extras (ie: no vacation money, Boxing Day shopping, or us covering the bill at a family supper out). So I gave the wife the news and offered her a challenge. “You have to earn some kind of an income while you stay home. I don’t care how much it is, just something.”
So she went to work during her maturity leave and got a home based daycare up and running in our house. The cash flow is tiny, but when you consider the cost savings on work clothes, commuting, paying for daycare and the tax write off of a home based business it does make sense for us.
Here’s a brief example:
After tax and expenses daycare income to house $240/month
Work clothes savings $50/month
Commuting savings $57/month (bus pass)
Daycare savings $600/month (local child care rate)
Daycare portion of house bills $150/month
Total savings/income to the house $1097/month
Strangely enough that was about what she was taking home prior to going on maturity leave. So I suggest that if your one of you is earning less than $30K/year and have at least one child that you look into the idea of one of staying home with a small business. You might just find that you can have your cake and eat it too.
This post is now part of Carnival of Personal Finance #77 over at Money and Values.
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