A few weeks earlier, I asked you what you thought I should do with the $3500 I had put into my Tax Free Trading Account with Questrade.

I was deliberating between buying some BMO bank stocks (I currently only own 45 shares) or adding more HSE Husky Energy (I recently bought 100 shares).   My TFSA portfolio included about 10% in ETFs and the rest of the portfolio was dividend producing stocks.  Needless to say, the allure of dividend investing really attracts me.

However, this quickly changed when I realized that I hadn’t balanced my ETF portfolio for the year.  When I looked at the pie chart of my portfolio, I saw that the ETFs were a teeny tiny portion of my entire portfolio.  I’m a visual person and seeing this helped me realize that I needed to incorporate more ETFs.

Also, looking back at my investing journal, I had sold an entire ETF from my lazy couch potato portfolio (it was recommended by Money Sense) which included 25% proportions in each XDV, CYH, CPD, and XTR.  When I read my investing notes, it seems like I sold XTR in 2010 to get enough capital to buy some dividend stocks.  At the time, I probably told myself that I would just buy them back… but it seems like I never did.

(more…)

Comment on this post »

On a beautiful sunny day my friends and I went out to try Jethro’s Fine Grub.  Jethro’s has been established since 2010 and it’s a hipster looking place in the heart of Dunbar (near Vancouver’s University area).  It has been featured on Diner’s Drive Ins and Dives and of course I had to check it out.

Their brunch menu is diverse with the usual eggs, bacon, and hash browns and different types of French toast.  So many decisions.  My eyes widened as I saw their servings of French Toast (and more importantly, the whipping cream on that French toast).  I estimated that even if I was hungry like a hippo, I could probably only manage to eat half of that.

Being the economically conscious brunch diner that I am, I wanted to have something that I couldn’t make at home.  I also wanted something savory because I tend to have a salty tooth rather than a sweet tooth.  I chose the wild salmon eggs benedict ($12- not super cheap but so worth it).  Their hollandaise sauce was probably one of the most creamiest hollandaise sauce I have ever tasted.  It was to die for.  The eggs were perfectly poached and the yolk was a little runny, just the way I like them.  Honestly, and I don’t say this very often about many restaurants, but each bite into the eggs benedict was like having a little piece of heaven in my mouth.

In terms of the atmosphere, I felt cool just eating there- they have a cool hipster vibe (without being too hipster, do you know what I mean?) going on there.  Simple dark wood tables and chairs, and a plain gray paint on the walls.  The environment in Jethro’s tells me that it’s cool without trying too hard.  The service was great and you could tell that the servers actually cared (it’s always nice when you get that feeling from a server, isn’t it?)

I can see why there’s an hour long wait to get into this place for breakfast and I can see why it was featured on Diner’s and Dives.  It was well worth it!  This is DEFINITELY a place you need to visit if you come to Vancouver.

Readers, do you make it a habit to have brunch at your favourite breakfast place?  Would you wait an hour in line to have brunch?

Comment on this post »

Say “HI” to Teacher Man, Y&T.ca’s staff writer!

Hello fellow personal finance readers. I go by the pen name “Teacher Man” due to the fact that I recently graduated from university and am in my second year of teaching high school. About 9 months ago my partner and I started a website called My University Money. It is aimed at helping young people (with a specific focus on post-secondary students) and just talking about financial and student lifestyle issues in general. Young & Thrifty was one of the first bloggers to really reach out to us and give us a little recognition when we were just starting off.

Is It As Simple As Degree = Money?

It used to be considered common knowledge that the way for middle class people to get ahead in life (or really any class of people for that matter) was to do well in high school, apply to a bunch of universities/colleges, and then go to the best one that you got accepted into.  The consensus was that borrowing money to get a degree from a well-respected institution of higher learning was the best investment you could make.  Universities and colleges across the land are still reading from this gospel, but it is not nearly as true as it once was.  More and more often we read stories in the newspaper of people with fine arts degrees who are $120,000 in debt and have little job prospects.  Now, there are obviously some benefits to school that can’t be measured by dollar signs, but it is worth noting that the once sacred truth that you had to attend a university or college to be successful is no longer valid at all.  Don’t take my word for it, go ahead and Google the resumes of Bill Gates, Steve Jobs, and Mark Zuckerberg.  You won’t find a university/college degree.

 

Teacher vs Labourer

We aren’t all computer geniuses who can drop out of post-secondary school and become billionaires, but here is more of a layman’s example.  When detailing potential career paths for my students I often use my career as a teacher for one part of the case study, and for a comparison I use my high school friend Chase.  Chase and I both grew up having fathers that harvested wood for a living.  While I decided on one -40 day that being a teacher was a good idea, Chase likes working with machines and was a solid operator.  After high school I went to university and Chase went to work in the oil patch out in Alberta.  I spent 5 years in school and came out debt free with a pair of degrees, due to the fact I had a great summer job.  This put me ahead of the vast majority of graduates, but let’s compare my financial situation to Chase’s:

Chase earned an average of $65,000 a year during those 5 years.  I’m not sure of his exact investment levels or returns, but let’s say he listened to his know-it-all teacher buddy and saved the cardinal rule of 10%.  Now he actually made some great investments in property so I think he did much better than the average in terms of investment returns, but let’s say for the sake of argument he received an annualized return of 8%.  After 5 years TM is leaving school with a net worth of $0 (give or take the value of an old car).  Chase has $38,132.91 in the bank.

But now it’s time for our favorite staff writer to catch up right?  I mean, it’s common knowledge that someone with two fancy degrees (ok, so my degrees aren’t that fancy) should make a lot more money than a labourer right?  WRONG.  As one of the best paid teachers in the world, I start at $50,000 a year, and max out around 80K.  I would imagine Chase’s salary will grow substantially as well, but again, let’s be conservative in order to prove my point and say he continues to make $65,000 (easily doable anywhere in Alberta and Saskatchewan right now).

If we check in on TM and Chase in another 5 years and assume that I have been saving 10%, and getting the same returns as my buddy I will have $35,199.61 in my investment account.  My hard working friend will have accumulated $94,162.66.  After twenty years from the date of our high school grad (*shiver at the thought of awkward reunion*) if we keep the same assumptions, Chase will have an investment nest egg of just under $300,000!  The teacher guy will be severely trailing his friend as he brings in $184,642.54 and this is factoring in that I should be making a little more income that my buddy is at that point.  Even assuming that I would be able to able to save a little better percentage of my money at 15%, I would still trail my friend who made the “wrong” decision out of high school.

 

I Still Like Being Me, But…

All this being said, I would not trade places with my friend for anything.  I had an unbelievable time during my post-secondary education and enjoyed experiences that I would have never got while working.  I simply want people to understand that they can choose not to believe the multi-billion dollar propaganda machine that is post-secondary education.  My buddy has great work connections at this point.  He has investment experience that I can only read about.  He has the financial backing to start his own business if he so chooses, and he is making more money than me!  These are factors that I would not take lightly, and he single-handedly proves the point that there is not one singular path to financial success.

 

Why Jam A Square Peg Into A Round Hole?

North America is in dire need of tradesman, hard workers with heavy equipment experience, and a variety of other less publicized careers.  If you like doing this work why should you try to force yourself through years of university or college?  My example above illustrates the fact that compound savings often beats increased income, and I would guess that at Chase’s real income over the next 20 years, if he were to consistently save 10% and invest in basic index funds, he would have more in the bank at retirement than many lawyers, teachers, government employees, and the majority of people with degrees.  Make your own choices when it comes to what sort of career you want to pursue, and try to ignore these “rules for success” that people put in place 40 years ago.  They are not relevant today, and can actually be harmful, especially if that is not what you want to do.

 

Comment on this post »

Why is saving money so important?  Why can’t we all just live paycheque to paycheque?

Its simple.  Because living paycheque to paycheque doesn’t give you the opportunity to dream.  When you live paycheque to paycheque you’re always worried about the future.  You worry so much about the future that you can’t think about what you want for yourself in the future.

Money doesn’t buy happiness but it does provide a way for you to fulfill your dreams, your goals, and your desires.  Cultivating your inner dreams are important because we don’t strive for achieving our goals and fulfilling our dreams, we may unintentionally go through the daily grind and wake up one day to realize we are depressed and unbalanced.  As humans we NEED to hope and dream.  Without dreams, our life may feel like it has no meaning.

I Want to Be ______ When I Grow Up

We all grew up dreaming- I dreamt I wanted to be an archaelogist to study dinosaurs and dig up fossil bones.  I also wanted to be a novelist (no, not a Harlequin romance novelist).

When we “grow up” we realize that these dreams could be achievable, but are they practical?  We lose touch of our dreams and desires.  We need to find meaning.

What gives me meaning now?  Traveling gives me meaning.  Traveling is my passion.  Experiencing new cultures, setting new goals for myself, and conquering difficult treks like the highest mountain in Africa is my passion.

Putting Savings into Action

I’m a big fan of saving a small amount of money to into a savings fund with a purpose.  These small monthly savings may seem insignificant month to month, but it adds up to fund my dream.  It gives me inspiration and hope that my dream can be achieved and it provides delayed gratification.  For example, it is my lifelong dream to climb the highest mountain in Africa and each month I set aside $100 to my Kilimanjaro fund in a high interest savings account.  The $100 has purpose and determination.  I am confident that I will enjoy this trip so much more because I have sacrificed the $100 a month (that could have been spent on material goods, lattes, or other daily indulgences) for this trip of a lifetime.

My other savings goal a few years back was to save enough for a down payment on a home.  I worked hard at it and sacrificed a lot, enough to come up with a 20% down payment (combined with my boyfriend’s down payment) on our current home.  It was a savings goal that we achieved.  Now that we’ve achieved this goal, we need to set our sight on other joint goals.

I once read in a book as a child (I think it was Obasan by Joy Kogawa but don’t quote me on that one)- that each decision in life represents a dot.  With time, these seemingly insignificant dots combine to form a picture that represents your life.  This quote often reinforces my thinking that we need to make good, conscious decisions in life or else it will pass you buy without you realizing it.  Most days I let life pass me by because I’m caught up in the daily grind of life.  Some days I let myself dream.  When I look at my savings account with money set aside for my hiking dream, I smile because I know I worked hard at making sure this dream is fully paid off before I started it.

Readers: Do you dream? What are your personal goals?  What gives you meaning?

Comment on this post »

 

Hi all!  Here’s a guest post by Zooey Huffington, an HR consultant who works with large companies to ensure their HR goals match their bottom-line requirements. She’s been working with large businesses for over six years and she wanted to share her perspective on how to improve work performance (especially for us Gen Y’rs)

For many people, a performance review can be the most stressful part of the job. Knowing whether you are effective in your job, getting along with the right people and overall valuable to your workplace can cause anxiety. However, performance reviews don’t have to cause more stress for you if you learn how to evaluate yourself ahead of time, to ensure you know what type of questions or comments might be made during your evaluation. Let’s take a look at a few simple ways you can improve yourself and your value in your workplace.

Be a Better Communicator – Ask for Feedback

Ask for feedback on your work and effectiveness in your job periodically. This means talking to your employer or superiors perhaps once a month. It is also a good idea to ask for feedback after big projects. If you know how you are doing, where your strengths and weaknesses are, you can improve where necessary.

To the Ropes – Use Simple Evaluation Tools to Get Answers

If you are uncomfortable confronting a superior face-to-face about your performance, try using some variety of questionnaires. Send it to your superior’s office mail or, in a smaller company where it is easier to meet, simply hand it to him or her and ask that it is filled in and returned to you. On the questionnaire, ask about your areas of concern and finish with a question about how you can increase your value to the company. This allows you to keep the feedback on file to be reviewed again when it’s performance review time. Always make a copy for yourself too.

(more…)

Comment on this post »