Another Year Another Budget

Living on pensions, as I do now means my budget is pretty much set for the year. Same amount of money in, same amount of money out. The rest goes to savings and Misc. However, a new year brings cost-of-living increases and of course the inevitable increases in monthly bills.

What goes up:

Income

• Teacher's Pension
• Canada Pension Plan
• Savings - comes out of my pensions but worth a mention. My monthly savings amount has increased due to now receiving the CPP. All of it goes into savings so what with investment interest etc I am saving roughly $1000/month. And we know what that goes to - TRAVEL (and large items like a new appliance or furniture) but mainly TRAVEL!!

What goes down:

• GST Rebate - Prior to receiving the Canada Pension Plan I was eligible for a tax rebate which was $105 every 4 months. Now that I am receiving the CPP my income is higher therefore I may no longer be eligible for the rebate. I will receive it in January and April however. As for what I'll receive based on 2016 taxes shall remain a mystery until July 1st.

Hah, short list! 

What goes up:

Monthly bills

• Property taxes - well, I'm assuming they'll go up, I've never known them to go down! But it usually takes a few months for City Council to figure out by what percentage they'll increase. I wait with bated breath! 
• Condo Fees - guaranteed to go up every January. I'm sure I received notice of how much but I don't feel like going up to my office to rummage around (my filing is a trifle behind) so we'll just have to wait and see. I budgeted $290. 
• Cell phone - will remain the same (I hope)
• Internet - will remain the same (same hope)
• Insurance - things are in flux with insurance - I think I have a credit coming to me in January (about $20) and then my regular payment beginning in February is $134/monthly. Kazi has her own policy now so I'm paying for Dougie the Dodge and condo insurance. That is up a little but not much. I had an at fault fender bender in 2014 so that will continue to affect my insurance for a couple more years. 
• Union gas (heat, hot water tank & dryer) will increase a bit due to carbon taxes. I still pay the least of anyone I know averaging $30 in the summer to $80 in the winter. Yes, Kazi is always cold; you think she'd be used to it by now :)
• London Hydro - electricity for my American friends. Continues to go up and up and up! Still reasonable though I think. I budgeted $80 as we are using an electric fire in the TV room as it is in the basement. 
• Netflix - $9.99 no change.
• Reliance - I rent my hot water heater. I remember when that was about $8 a month - now it is $35.00 and will likely increase at some point. The cost usually goes up once a year. 
• Misc - covers my allowance :) and I rejig it to reflect the amount of $$ I have left after paying the above. It's usually around $150+/week. That covers meals out, clothing, wine, wine, wine...etc. household items...wine...wine....scotch...
• Variables: gasoline & food - I have been over funding my gas budget for quite some time so have cut it back a bit ($100 monthly); food continues to be a little overfunded as well so have cut it back a trifle. ($280 monthly). Any extra left in either budget line gets carried forward to the next month.

Remains the same:

• Debt - ZERO! I continue to have no mortgage, no loan, and no credit card debt. 

So there you have it. I'm hoping that by February changing amounts will be set for the rest of the year. There is a lot of hope in my budget! All I can say for sure is money will show up in my account once a month and I'll do my best to get rid of it. 

P.S. I had money leftover at the end of December. Since I practise zero budgeting I'm wondering if I forgot someone's Christmas present? 

P.P.S. I kill myself! 

Starting at the End...

...of June, that is...

June was a month of ups and downs - the prices of everything went UP and my bank accounts went DOWN.

I received my first Canada Pension Plan payment and used most of it to pay for my new phone. Boo.

My dentist looked at my teeth for 15 seconds and for that I gave him $189.00! The good news is my hygienist said my oral hygiene is better than hers!! Do I really want her scraping and cleaning my teeth?

Today I received my first GST/HST payment of $105.00!!! That's a little bit of our own tax money given back to us from our government based on our income. I haven't received this little tidbit for years as my income was too high. Welcome to retirement! Oh, and I get that little boost 4 x a year! YAY! Though I'm wondering if I'll get it next year now that I have to add the CPP payment as income on my tax return. It's a nice monthly stipend of $558 (actually over $600 but I'm having 10% tax taken off at the source). Next year's tax return should be interesting.

Also paid CAA in June (geez, what DIDN'T I pay???) which came to $224 for Kazi and me. That's part of her birthday gift each year. Yippee! I tell ya, my daughter sometimes wishes I wasn't such a practical gift giver but I just can't help myself. With her car being a 2006 model and mine being a 2000 I think it's a necessity to have this extra coverage.

I spent more than usual on food in June - likely because cherries were $6.99/lb and strawberries $4.25 a quart. We ate a LOT of them :) Eventually they both went down in price. I shopped at Farmboy (more expensive!) several times because I love their pre-made salads and they sell the best freshly made turkey burgers in the city. On the flip side of that I haven't purchased gas for the truck since the beginning of June! So in June I took what was left of the gas budget ($100) and added it to the food budget ending up even Steven.

My savings went down by $2,000 as I paid for the rest of my trip to Ireland though I have replaced $500 of that. Annie's already got an idea for next year - Scotland and the Isle of Skye!!!!! Hopefully I won't drop any more phones in my coffee which will allow me to save $900 - $1,000 per month for upcoming trips. I might start taking 2 per year! We'll see how the saving goes.

June was my month of cycling 400km to raise money for children's cancer research. I reached 106% of my cycling goal and 110% of my money goal!! I reached my goals by June 21st which allowed me to spend time with my friend Troy to celebrate her 50th birthday over the course of 10 days!!! We went to 3 different beaches (Lake Huron and Lake Erie), went to Pt. Pelee National Park which is the southern most bit of Canada (had never been), went to the Wine Bar :) and had a day of shopping/exploring in the Sparta area south of London. Great time! I'll get some pictures posted in my next post - I think Lily is eating a bee so I better go check! Ick, it was a large fly....gross!!

Mid-Month Money

I was thinking yesterday, yes thinking, that I don't post that much about money anymore. There's only so much excitement one can wring out of an unchanging monthly pension. Before I retired, two years early, I had to meet a few goals: pay off all debt and increase savings to a level that felt comfortable. I had a Five Year plan and I worked away at it and was able to retire early, thankfully.

Now I still try to sock away some money every month into savings and most months I'm successful at doing that. My budget is very simple: take my net pension, subtract all variables and invariables (is that a word?) including savings, and the rest is my spending money. I divide the spending by 4 weeks so that every week I can put cash in my wallet. I've been following this plan since I retired in 2014 and it works for me. Occasionally I have to use long term savings for big purchases and travel but I rebuild month by month.

There IS a little bit of exciting money news though...

• I will receive a cost of living increase starting the end of January which increases my net pension by $30 a month. Not a lot but it covers increases in condo fees, insurance and increased utility bills (almost)
• I did my income tax online to see whether I would get a refund or not. I don't have any tax receipts yet but it was pretty easy to guestimate. I will receive a refund but nowhere near what I used to receive. Only about $200. But I don't have to PAY which is the important thing. I needed to know this because...
• I filled out my forms to start receiving my Canada Pension in June and they want to know how much income tax I want taken off. So I had to see what my income taxes look like before I could answer that question. Woo hoo!! Looking forward to that additional money every month and all the fun it will bring!

January's Budget - Am I on Track?

I would say that I am! My $150 weekly allowance seems to be multiplying somehow. I've paid $120 for an eye exam, $50 to charity, an extra $50 to savings, $38 to Walmart, $17 to Shoppers Drugmart, $14 for a movie and $11 at Value Village and $10 on yoga. My ticket for the Food and Wine Show ($32) will come out of next's weeks allowance. If you did the math you'd see that I've spent more than my $150(x two) weekly allowance. That is because I overestimated some of my bills. I estimated $75 for natural gas and the bill was only $47; electricity was $65 and I estimated $70 and so on. Those extra little snippets go into my misc budget which funds my allowance :) Aren't numbers fun??

I have $127/$160 in my gas budget and Dougie's tank is almost full and $158/$280 in the food budget. So far this month I've only had to put $33 in the gas tank (I see that oil dropped to below $30/barrel!!!) and have spent $122 on food. That's for two adults. I'm pretty good at stretching my food dollars - I got 3 meals out of 4 chicken breasts! And 4 meals out of 1 package of ground turkey!

So that's how it rolls for January so far...I hope I haven't jinxed myself by proclaiming that I've had a good month so far...!!

HAPPY NEW YEAR 2016!!

Hello my friends! We made it through 2015 relatively intact (the last half being MUCH better for me than the first half) - now on to 2016!! The year I turn 60!  Yippee - the Canada Pension Plan, that I've been paying into since I was a teenager, finally kicks in - should be millions of dollars coming my way - hah!!

In the really OLD photo below I'm turning 6! Two of those girls, Liane and Martha, moved away that year and broke my heart. Two of us still have contact through our "Class of '75" facebook page.

I'm looking forward to going on another trip this year - Ireland perhaps. I love the hiking format as you may have already guessed. There is just no better way of getting to see and know an area intimately. And it seems more like an adventure and while I sometimes get scared or overwhelmed there is great satisfaction in conquering my fears. More to come as the year progresses!

 Hopefully everyone enjoyed seeing in the new year. There may have been some melancholy or joy in seeing the last of 2015.  I spent New Year's Eve and day here at home with a good friend, Julie. We indulged in General Tso's chicken and sesame shrimp topped off with wine and chocolate. I rented several movies - "Rosewater", "A Walk in the Woods", and "Far from the Madding Crowd" and we managed to pause momentarily to clink our glasses at midnight in the middle of "Far from the Madding Crowd"!

The best movie by far was "A Walk in the Woods" based on a book by Bill Bryson about his adventures hiking the Appalachian Trail. This is the book I read and loudly guffawed over while Annie and I hiked Hadrian's Wall. The movie was wonderfully funny (perhaps enhanced by a few glasses of red wine?) and starred Robert Redford and Nick Nolte. They were hilarious!! I highly recommend it!

I forgot about the bottle of champagne chilling in the fridge so the next morning we had a couple of mimosas - absolutely perfect along with our breakfast sandwiches and yummy blend of fried potatoes and turkey stuffing :)

We spent the day on one of my favourite holiday pastimes - the New York Times crossword puzzle (I'm still working on it!) and noshing down on more chocolate and cashew brittle. A very relaxed day. Luna and Lily had so much fun with the empty gift bags and truly enjoyed covering Julie's black top and pants with cat hair!

I was just looking around for Luna a few minutes ago when I spotted....

....a lump on the love seat....I took a little peak....and found beautiful Luna...apparently I don't keep the house warm enough for her! Suck it up kitty! The real cold hasn't even begun yet!

So then of course I needed to get a photo of Lily to keep things fair...but Lily doesn't sit well for photos - she's always on the move - yes, the complete opposite of the lovely Luna, affectionately called the Chunky Monkey!

Lily: "I think I saw a squirrel!"

"Nope, just a leaf...Ok...take my pic..."

"WAIT...what was that noise?"...

"I just know there's a squirrel out there...somewhere..."

Sorry, have to get her when she's sleepy!

I've been spending wonderful hours in my workshop. It took me awhile to get back into the swing of things but have produced 4 soapstone sculptures over the past couple of weeks with such enjoyment and contentment that I haven't felt in quite some time. Here's a couple photos...

I have picked out my next piece so will be heading down to my workshop at some point today. In 2016 I hope to continue my artistic pursuits with more carving, more crocheting and rug hooking. I've also bought a book on watercolour painting - I'll give that a try this year too.

No resolutions except to enjoy each day as much as I can. If that means I devour a full box of peppermint patties, so be it! I'll just walk further the next day :)

Do you make New Year's resolutions?

Time to get busy!

Retirement Update

I noticed a blog post the other day (http://ndchicscents.blogspot.ca/) entitled "Retirement Update" which motivated me to provide one too.

Yup, still retired!!

When I was approaching retirement I thought I would give myself a year to figure out what I wanted to do with the rest of my life. It turns out a year wasn't long enough.  Bear in mind that a lot of life-changing events occurred over the past year and a half in addition to retirement: relationship ending, loss of future plans, 20 year old pet passed away, had to sell house in PEI, living on half the income I was used to, and a back injury.... which all contributed to low level depression and anxiety. Adjusting to retirement isn't as easy as it would seem!

So...where do things stand now?

• health: medication is helping both with both back pain and mood enabling me to get physical once again; riding my back  bike (thanks for catching that typo sis!) and going to yoga and meditation has also helped me both physically and mentally. I still see a counsellor and am on a wait list for "group therapy"
• social contact: staying in touch with people is so important but not easy for me being the introvert than I am: every day I try to connect with a few people through texting, emailing, Facebook, blog, phone calls, going to social events, getting together with family, becoming more of an activist and so on. I still have days when I'd rather not see anyone 
• reviving old hobbies: my brother said to think back to childhood when we naturally gravitated to the hobbies and activities that we loved: for me that included biking, sewing and reading as well as sports, board games and playing cards. I also loved to draw, play piano and be creative. So far I have done one sewing project with another in the works, I have purchased a book about drawing as well as an "adult colouring book". I am working (slowly) on carving a piece of soapstone and indulge my love of reading every day. As a child one of my favourite things to do was to put a book and a bagged lunch in my bike's basket and ride out into the countryside, then climbed a tree to read and eat my lunch :) These days I try to get out on my bike every day but so far haven't gone out into the countryside with a book and a lunch. I'll add that to my to do list! I go to a "sports night" once a month in addition to a monthly "games night" and last week I started going to a weekly "euchre night" which has been fun. Usually I get out to see one movie a week with a friend
• new hobbies/activities: what would I like to do that I haven't tried yet? Painting, particularly water colours, learn a new instrument or purchase a keyboard, go back to school (tuition at my alma mater is free at age 60) so I'm considering attending part-time next year - perhaps a degree in film or getting back into the visual arts
• volunteering: haven't made my mind up about that one yet - I want to volunteer but not sure about where or how often. I sort of dread being on a schedule
• part-time work: at this point in time I don't feel inclined to get a part-time job
• travel: planning a trip or two each year is fun and exciting yet expensive. Once my Canada Pension Plan kicks in next May I'll be able to travel more frequently.
• redecorating: still working away at this though things have slowed down now as the weather is too nice to be inside as much. Hopefully I'll feel more motivated in the fall...

So things are moving along. I would say the biggest barrier is lack of "motivation".  I get things done but at a much slower pace than in the past and have to push myself to move some days. I feel that I'm on the right path and need to be more patient with myself. It's been a HUGE adjustment and it's not over yet. 

I'll be OK.

Easy Come Easy Go

I used to talk/post about money quite a bit but since I've retired and living on a set amount each month there's not as much to talk about. I have a monthly budget and usually I can stick to it. I've made adjustments from time to time when utilities decrease (summer months) or the price of gas goes up etc.

But I caused myself great anxiety back in March when I purchased a trailer. Even as I completed the transaction my inner voice was telling me it wasn't the right time. I should have listened to that little voice. I started losing sleep worrying about looking after two places - the trailer and my condo - afraid of large repair bills and finding out there were more expenses related to the trailer than I had realized. Things have changed a bit since I last owned a trailer.  For example I had to fork out a large amount of money in sales tax which I didn't have to do with my first trailer. The lot fees were HUGE compared to my previous location.

So I put up with the anxiety for awhile but then woke up one morning KNOWING I needed to sell it. Just making that decision helped to put my mind at rest. Within a few weeks of listing it the trailer IS SOLD  to a very nice family who were very grateful of the clean up job I had done and of the improvements I had made. Even though it was my loss I was happy that they were happy.

I knew I would have two lean years of retirement before I start receiving my Canada Pension Plan at age 60 (next May) and I should have waited - the costs involved just felt too onerous at this point in time. Especially with taking a trip abroad last year and this. I think I'd rather use the money saved from selling the trailer towards travel rather than sitting in one place. Perhaps I will change my mind sometime in the future but for now I am no longer TRAILER TRASH!!

The Perfect Moment...

Once a week or so the perfect moment occurs....the laundry is done (but not put away yet...shhhhh...don't tell anyone), I've had my hike and fresh air, the cats are asleep, supper doesn't need to be thought about yet, the housework is as done as it's ever going to be, music is playing from my iPod in the background,  and with coffee in hand I can relax to do whatever I want...sweet!

Yes, we were walking into the past today...

this area is within city limits...and in my part of the city!...

not a lot of colour this time of year but beautiful just the same

in an austere sort of way.

So, what to do, what to do...

Well, if you're a numbers geek like I am (and I know that you are!!) then you'll search for an online RRIF calculator and figure how much you'll have to start withdrawing from your RRSPs at age 71. Yup, that's what I did too! Isn't it fun??

It's strange to realize that right now I'm living on far less than what I'll be living on when I turn 71. But let me back up a little...in a year and a half, when I turn 60, I'll start to draw on my Canada Pension Plan (CPP); then at age 65 I'll lose some (around 13% I think) of my CPP but will start getting the OAS (Old Age Supplement) and then at age 71 my RRSPs will convert to an RRIF and that will increase my yearly/monthly income. Isn't it nice to know I still have a few "raises" to look forward to!?! I just better darn well live long enough to reap the benefits of my labours or I'll be some MAD!! It would make more sense if I could access all of my money NOW and then have it gradually reduce until I'm in my 90s. Let me use it while I'm still young enough to enjoy it!! But no...as we all know the government doesn't use common sense...

For 25 years (or more) I've done everything in my power (and made a lot of sacrifices) to max out my RRSP room come tax time. I think only once I had to borrow in order to make my contribution. Eventually I got smart (and started earning enough) and made automatic monthly transfers into my RRSP finally getting ahead of the game. 

I've thought about taking money out of my RRSPs and putting what's left after the taxman takes his share into my TFSA but I read an article that said if you have a choice in paying taxes NOW or in the FUTURE then do it in the future. That makes a lot of sense to me. I'll be in a much better position to pay the taxman at age 71 than I am now. So I'll let the money sit and earn interest for another 13 years and then enjoy the bump in income when I hit 71. I have enough in my TFSA for any emergencies that might arise in the meantime and in only 1.5 years my CPP will kick in. 

If these are my lean years I can't wait until my "fat" years!! 

The End is in Sight

Hello my friends! Yes, the end is in sight, the end of June that is. June ends for me on Friday, June 29th - the end of the school year, PAYDAY and the day to pack up the car for Prince Edward Island! (I hope! There are a number of details concerning my leave from work to be attended to this week - my expectations are that they will all work themselves out and summer will proceed as usual - I am an optimist!)

I'm not sure how it happened but I still have some money left in my account. It was a somewhat spendy month what with Kazi's graduation yet I've paid for everything and still have money left over! Every time I check my account there is more money in it than I expect there to be. And whenever I check my credit card I find that everything is paid for. It's like the parable of the loaves and fishes - it seems that I just cannot get rid of my money - there's always more!  Even now there is more $$ in my account than my records show there should be...about $125 more! I keep waiting for the other shoe to drop but nothing happens. This is totally the opposite of what normally happens - I usually forget an expense or two or three and end up in the hole because of it so I'm keeping my fingers crossed that my luck has changed at least for June.

I am going by MY records and will NOT spend that $125; if it's still there by Friday then it will give me a couple of FREE tanks of gas for my long road trip!

With the advent of July I am entering my higher paid portion of the year! Woohoo!  No union dues to pay in June and July and by August all of my CPP will be paid for increasing my paycheques yet again. Happy days are here again! Which is good because summer is always more expensive - lots of $$ spent on gas, a hotel stay or two while travelling, lots of eating out and various excursions.

In June I paid off my half of our new TV - about $440.  I also paid off the new fridge and stove I purchased for our PEI home - total about $1600 and paid all outstanding charges on my credit card from our weekend mini-holiday in Niagara Falls. I must confess to an impulse purchase however, which I will pay off from my extra funds in July - I just had to purchase tickets to see Neil Young and Crazy Horse when they come to London in October - he is my musical idol and worth every penny!  I also put $1000 into my PEI Maintenance account to handle anything I need for the house over the summer. I now have about $67 to get me through to next Friday which ain't much, I know, but I don't need to buy groceries, probably just some gas for the car.

July's savings will be divided up between my Christmas/Gift fund (totally funded with $1500) and I will start paying back my TFSA ($1000 - I owe it a whopping $15,000 from paying off my EX - Line of Credit!).

I might be able to save more but will be keeping a larger balance in my chequing account over the summer to handle all of the extra expenses so that's a big MAYBE!

If it sounds like I am wrapping up June a little early - I AM!!  And that's OK! Unless he who cannot be named shows up! Noooooooooooooooooooooooo!!