Recession Lessons From Gen Y

I am excited to write this post. You see, you always read articles about self indulgent  Gen Y’s (20 year olds) in fact Gail has a whole show about it called Princess though in the show’s defense they are not discriminating on age. Any ways I have felt for a while that I can’t be the only 20-something person in North America who is taking their money seriously.  I know that the people in the PF world that are my age are of course. But we can’t be the only ones. And it seams that my assumptions were right!  An article that came out in U.S. News & World Report showed that “A new survey from TD Ameritrade found that one in four 20-somethings funnel money into not one, but two different types of retirement accounts, a 401(k) or 403(b) as well as an IRA.” I know your saying but that’s American how does it apply to Canada? Well the truthfully it doesn’t but it’s an indication that all the nay sayers about the Gen Y’s money management skills haven’t got all the facts.

 The article goes on to talk about the importance the recession has had on my generation. I believe that history recycles itself in 3-4 generations. Let me explain Generation 1) suffered though WWI then the Great Depression and again WWII. Realising the importance of safety nets and saving, when the time changed this generation put in to the place the largest safety nets creating our cradle to grave society.  Generation 2) benefited from both good jobs, social safety nets and the experiences of their parents. Generation 3) has not so good/stable jobs but safely nets that are becoming excessively costly and cumbersome to the society. As this point generation 3 is to far away from ‘remembering’ or ‘hearing stories’ about how difficult it once was and start to question the reason for all the expressive programs. By the time that Generation 4 comes around things are tight again. And watching money is no longer an option but a reality.

I think my Generation has seen the deteriorating of social and ‘the norm’ and are pessimistic about whether any kind of social service or program will be around when they hit old age. I know I am. Also the fact that nothing truly guarantied anymore means that we have to take matters into out own hands.  “Gen Y has accepted the reality of the past few years, and rather than being discouraged, they’ve changed their behaviours and are using what they’ve witness to their advantage,” says Nicole Sherrod, managing director at TD Ameritrade. “This is something that older generations could benefit from,” she adds.

The recession has been a great eye opener to many of my generation and the stats are more reflecting this “One in three respondents told Scottrade that they've learned more about how the economy works because of the recession and a similar percentage said they've become more familiar with their own personal finance situation. Those are higher percentages than any other generation.”

There are the links to the articles that I quoted. I strongly encourage you to read them they are very interesting!!

http://money.usnews.com/money/blogs/alpha-consumer/2011/01/20/recession-lessons-from-gen-y
http://ca.finance.yahoo.com/news/gen-y-saving-more-retirement-213303344.html

Bi-Weekly Spending Recap December 26- January 8

December 26
NO SPEND DAY
December 27
NO SPEND DAY
December 28
$17.21~ photo's at Wal-mart
December 29
NO SPEND DAY
December 30
$25.48~ Gas
$48.20~ Gas
December 31
$11.30~ Sister's gift for brother
$11.25~ my gift to brother
$7.33~ Sushi
$16.95~ stitches
$13.61~ gift for mom's bday
$675.00~ Accounting course* on visa
$3.97~ Macdonld's (Last visit until maybe 2013)
$11.95~ bank fee
January 1
NO SPEND DAY
January 2
NO SPEND DAY
January 3
$3.00 ~bank fee
$20.00~ from ATM
January 4
$161.00~ text books for course *on visa
January 5
$6.75~ wal-mart tire pressure
$13.55 calendar club
January 6
NO SPEND DAY
January 7
NO SPEND DAY
January 8
$24.00~ food at IKEA *on visa


As of my last spending update I had 197 No spend days with this last update I ended the year with 200 No spend days. Now for 2012 I have 4 No spend days.

I also wanted to let you know that things might get a bit slow around here, my aunt was admitted to hospital and its not looking so good. My mom has good to see her and she will keep me in the loop.


On a side note my BF has decided to join my blog. I did mention to him that you had asked that he guest post. That ball has been left in his court but as it stands he's made no commitment. 

Why no contract?

 I have been asked why a 'no contract phone'? There are 100 reasons why I refuse to ever be tired to a contract but what it comes down to is I don't like the way phone reps treat people with contracts. Let me tell you the service I have had since my contract expired has improved 100% to when I was on a contract. It's because they know that they have you by the jugular. Every simple thing is like pulling teeth. I am just not interested in it any more. As for why a cell phone? It’s my only oral contact with my BF. Everyone in my family has a cell phone and we have talked about canceling our house phone because no one picks it up or calls us on it except tel-marketers. However it's on contract as well and to get out of the contract is 400$. Everyone has my cell number including work, it's the only contact number work has to get a hold of me. I am just not willing to cut myself off from things and that's why I have a cell phone. As for the prepay option the rates aren't worth it. My BF and I spend on average 500min a month not including text talking to each other and the plan that I have and will always have allows for unlimited talk Canada wide to my fav 10ppl which he is one of them. It's a great plan, it was WONDERFUL! when I was in Vancouver and had school problems to sort out, my Uni was on my 10 list. I hate the constant rule changes that goes on when you call in because you were told one thing but it turns out they have changed the rules and you can't do that with 'your plan.' I hate the fact that when you sign up for a contract your credit score takes a hit, and I really can't afford that hit at this point in time. 

There are lots more reason's but I want to leave you with this last one. Read the article that was in the Toronto Star this morning about how unhelpful being in a contract can be:

"This week, he called the Bell World store where he bought the $200 phone with a three-year rate plan on Dec. 19.
His saleslady agreed to change the number while he waited. She suggested asking Bell Mobility to waive the usual $20 fee.
Bell refused to waive the fee. A supervisor ended the call in under a minute, saying there was no point in talking.
“The supervisor denied any culpability for assigning the contact number for a prostitute to an 11-year-old,” says Luke.
“Anyone could have texted her number with words or images — and she would be charged for the incoming calls.
“I am angry with Bell, not for doing something wrong but for failing to make it right. What is this teaching a little girl when a big corporation looks at her as though she didn’t exist? How can they spout policy to a child?”

To large cooperate companies no one truly exists your just a number on a 3 year contract. I refuse to be subjected to that again.

As Andrea would say "I am just so over phone contracts!"

Feel free to disagree with me, phones are one of those things that everyone has a differnt pinion on basied on their experiences.

Are you still on contract? Will you sign another contract once your's is up? Or did you switch to pre-pay, why?

Cars and Money and other Money issues

Way back in September of last year when I decided to take Little Lamb's advise to only focus on my Car Fund instead of splitting money up between the Car and the Cat fund, I set my goal at $1,500-2,000 before switching to my Cat fund. Had I not had my accident in November I would have met that goal. At the time that I set it I had January as my date for flipping form Car to Cat. Over the past week I have been crunching numbers on my January budget. And I have decided to reduce the amount of money going into my Cat fund and increase the amount going into OSAP. However Yesterday my engine light came on in my car so I took it to the mechanic to see what it was. He cleared the issue because he didn't think it was bad but advised me to keep an eye on it just incase. As him and I got talking he mentioned that the spark plugs normally go on Waves every 40,000 km. I am 1500 km away form the spark plugs going on my car. So hears the dilemma. Instead of putting this month's money in to the Cat fund should I delay that until after February and put the money into my car fund to off set the cost of the spark plug repair that is just around the corner? WHAT DO YOU THINK??

Another thing that I have been pondering about is my cell phone bill. My phone is now off of contract however it's old to transfer from another provider. Talk about bad luck! I am still about 450$ away from having the full amount to buy the phone out right. As it stands I spend 100$ a month for my phone. Its an old plan over 3 years old and the only way that my current provider will let me reduce the cost is to sign another 3 year contract. NO THANK YOU! So I have been thinking that it would make sense to take what ever extra money I make and put it into my cell phone fund to speed up the process of reducing my cell phone bill. When I switch providers my cell phone bill will drop at least 25$ a month. I can then take that money and switch it into another saving fund. WHAT DO YOU THINK?

Please let me know what you think to both ideas?

Final Evaluation on 2011 Goals

    2011 Goals/ New Years Resolutions    
                   
                                          Financial 

1) Pay off $15,000 of Student debt (not including minimum payments). I set this goal with no real plan in mind on how I was going to get it accomplished. I just set it and thought I’ll make it happen. In total I paid off $12,665.74 and bought a car and than paid $1300 to fix the car, so I am happy with my progress given the fact I had no real plan at the beginning of the year. ACOMPLISHED

2) Get a second job (preferably by March) [second job started in June ended in August]  Since June I have had 3 jobs (Stats Can, Elections Canada and now I am refereeing. So I would say this goal was ACCOMPLISHED. 

3) Invest 6% of my income into company stock (6%= $2,142 roughly) I have contributed since Feb. $1,890.29 and my Company has contributed $919.66. In total I have $2,809.95 invested in Company stock.  ACCOMPLISHED

4) Create and fund Christmas fund 2011 to the amount of $800 (Done sept.8th) ACCOMPLISHED

5) Cut cell phone bill in half (preferably by the end of January.) This goal has been on hold until I buy a new phone outright. I won't sign a three year contract just to cut down the cost of my bill.  ON HOLD

6) Order my credit score ACCOMPLISHED IN JULY 

                                            Personal

1) Read 50 books I already own. The reason for this goal was to stop my book buying and increase my book reading. While at Uni. I had a heard time reading for pleasure but my book buying never slowed down and I realized I owned more books I hadn’t read then I had read. In total I read 42 books last year of one form or another. Some weren’t mine but they were books that I didn’t buy.  Since I bought so few books last year and read way more I think this goal was ACCOMPLISHED

2) Get my Gold Duke of Ed Award ACCOMPLISHED IN DECEMBER 

3) Catalogue and count books June 9th, 976 books (few on loan might still need to be added to count). This goal I thought was completed but than I found 5 boxes of books in the garage that I had forgotten about. Some of those books I donated and others I kept. Of the ones I have kept I still have 3 book shelves that have not been cataloged, because I have been lazy. IN PROGRESS

4) Finish/ start Europe/UK scrap book I started the scrapbook but have not finished it. I do it at work at my desk while doing my 2-12am shifts. I have done all of Scotland and currently I am working on England.  IN PROGRESS 

5) Find a way to put $100 into Shirli's visa card.   I wasn’t able to put the money directly into her visa card because of privacy. So I settled on having a draft written up in her name. The draft has been made the letter written and dropped in the mail.  ACCOMPLISHED

6) Get my knee sorted out FAIL, BIG TIME FAIL!

7) Reduce ownership of Crap by 50% AND try to remove one full row of shelving in room, to reduce space for more stuff. I have gone though a lot of stuff (china dolls, books, cloths ect.) and donated most of it.  But more can always be done.  IN PROGRESS

 Total: 13

Accomplished: 8

In Progress: 3

On Hold: 1

Fail: 1

Over all I am happy with the success. Now that its 2012 time to update the goals page and get busy on my new goals.

What do you think??

December OSAP and LoC Update

Since December has come and gone it's time to update my progress on my OSAP. And because its the end of the year Its a good time to check on my LoC progress. The last payment made to my OSAP (Dec 30) will not shoe up on the OSAP system until early January however I am going to add it to this month since that's when I made the payment.  

November OSAP balance: $6,921.75 

December 5~ $165.59

December 9~ $28

December 16~ $550

December 22~$56

December 30~$495

Amount paid after interested added: $ 1294.59 -27.28= $1,267.31
Daily interest for the month of October: $0.88
Total  monthly interest: $ 27.28
% interest is calculated at: 5.5%


New OSAP balance: $5,654.44

Regular payment to LoC $250

Monthly Interest: $92.10

Interest rate:4.5%

Amount after interest taken off: 250-92.10= $157.90

New balance of LoC as of December 31: 24,037.30

Current $15,000 extra fund stands at: $11,240.53+1267.31+157.90= $12,665.74

24 in 2012, a Year's worth of Goals

I have decided that since I don't have all my numbers yet to go over my 2011 Goals I would just post my 2012 goals. When I was doing my 2011 goals I remember thinking that maybe 13 goals was to many. But in stead of stream lining it I assigned myself 24. Travel is a new subsection for me. I would like now that I have a car to start doing small weekend or day trips. Also it's the bicentennial anniversary of the War of 1812 between Canada and the USA. So I want to go see lots of re-enactment's.


Financial
1) Pay back money owed to Retirement fund $353.58
2) Pay off ALL OSAP by May 2012
3) Get cat fund up to $1,500 and keep it there for as long as possible
4) Save $700 in Christmas fund
5) Pay off $15,000 of Student debt (not including minimum payments)
6) Sort out cell phone
-buy cell phone out right
-change cell providers
-get cheeper plan
7) Start stock portfolio

Personal
8) Get braces in January and pay for them in full in cash
9) Reduce ownership of Crap by 50%
10) Write will and living will
11) Sort out American citizenship before April 2012
12) Read 12 books from Canada or Ontario History section of my Library
13) Decide if Accounting is for me
14) Change jobs for better pay within Company
15) Expand and dedicate more time to blog
- Finish blog converstion and change sites (No later then August)
-Network more with other bloggers (friends)
-Attend Canadian Personal Fiance Conferance 2012
16) No Macdonald's Fast food for 2012 (drinks excluded) [This is a joint venture with my BF]
17) Finish 2007 trip scrapbook
18) Renew sponsorship

Travel
19) Go to Salem Massachusetts with sister
20) Go to Fort York with BF
21) Go to Fort Erie with BF
22) Go to Niagara with BF
23) Go to Denver for Financial Blogging Conv. (I think)
24) Take an unplanned trip