Over the past few months, eleven supremely talented financial bloggers (plus yours truly ) contributed bits and pieces to collaborate on a very special writing project, The A-Z of Saving Money. I had a blast with creating my two chapters, and I feel so honored to participate in this extensive project and working closely with Glen and co. Each contributor really has provided a unique perspective on crucial money-saving tips, tricks and other sundry tidbits conducive to financial independence.

After months of effort the book is finally finished, and I figured I could SQUEE a little here. Ta-da, here it is!

(As an aside quickie: I would personally like to thank Glen for spearheading our project and being the mastermind behind this whole she-bang.)

I have to tell you guys, I was floored when I had a chance to read through all of the compilations, and I believe you guys really will enjoy this one, too.

Here is a list of an exceptional group of co-authors:

1. Glen @ Monster Piggy Bank, our courageous ‘big cheese in charge’
2. Andy @ Work Save Live
3. Mr. CBB @ Canadian Budget Binder
4. John @ Frugal Rules
5. Jake @ I Heart Budgets
6. Kim @ Eyes on the Dollar
7. The Savvy Scott
8. Budget and the Beach
9. Mrs. PoP @ Planting Our Pennies
10. Catherine @ Plunged in Debt
11. Jefferson @ See Debt Run
12. and last but not least, moi.

The book itself is priced at $14.99 and offers 26 chapters for each letter of the alphabet. As Glen offers in the introduction, “the goal of this book is to give you an idea of the various aspects of day to day life that you can adjust to allow you to take control of your finances. As we take you through each letter of the alphabet, I hope that every chapter helps to guide you on your way to a better financial future.”

Furthermore, to generate positive buzz in celebration of our fabulous book release, we are giving away a pretty rad prize package to one lucky reader.

The Giveaway Prize:

• $250 in cash, and thus a special incentive to start immediately saving.
• a free copy of our book!

Hurry and enter below for your chance to win all of that dough!

a Rafflecopter giveaway

Good luck to all broke-ass participants.

You can purchase the book for $14.99 by clicking here, and if you choose to purchase your own copy, we truly appreciate all of your support.

=^..^=

M. and I both have separate checking accounts from before we met. But now that we have a family, our finances have evolved into more of a cohesive unit and last year we opened a joint savings account specifically for family expenses and emergencies.

However, since I pay all of the bills but stay at home right now while M. fetches the majority of our family bacon, we’ve decided to go ahead and open a joint checking account as one main account.

I see several advantages to this.

For one, it simplifies the household finances since we can funnel our combined income (M.’s paycheck and any side income I receive, plus any family windfalls) and expenses through that joint checking account. M. doesn’t constantly need to transfer money over to my individual account to pay my bills, and it helps us receive a clearer overall picture of where we stand with our finances.

Furthermore, we hold family meetings every week or so to discuss our investments and how to efficiently accomplish all of our objectives. Usually I take notes and we discuss baby steps and specific time frames, which helps us keep dibs on everything and boosts momentum toward all of our greater financial goals.

So we will have a combined ‘main’ checking account for all of our income, with a pre-determined percentage siphoned away to our joint savings account (long term investments) and to our savings envelope (for short term needs and wants).

We will continue to have individual credit cards and pay off all balances in full each month.

Thus the plan for the weekend is:

1) on our way to the farmer’s market in the morning, to stop by a local bank branch and open the joint checking account.

2) on Saturday evening, to celebrate my Grammy’s 82nd birthday (although she insists she is 82 going on 28!)

3) to catch up on some weekend reading: for example, I need to nip through our collaborative eBook before it hits the next progressive stage

What works for your family in handling money matters—do you and your significant other have joint or separate bank accounts? What have been the advantages and disadvantages? Any issues?

=^..^=

Hurrah!

I am still a stay-at-home mommy without a reliable income stream and it’s now been well over a full year since I’ve made the decision to walk away from my place of employment, which was not a decision taken lightly. I admit that sometimes the lack of a steady income is disconcerting and for now I’ve been squirreling away every penny imaginable. When I check the dismal balances on my accounts, I try not to break down into wee little sobs.

But in my secret heart I know I’ve made the right decision and, quite frankly, I couldn’t be happier. There simply are more important things to focus on than being a compulsive saver and having gobs of disposable cash. Financially, we are finding ways to make it work by surviving off of M.’s income, we aren’t doing terribly dreadful and thus the situation is tolerable.

So for now: them’s the breaks.

I cherish each day with my darling daughter in ways I cannot even begin to describe with words. Her tender presence really has taught me that there are far more important experiences than just accumulating a rapidly escalating net worth to fart around with on some balance sheet. That seems incredibly basic to write but this, for an anal and financially-enthusiastic oddball like myself, was an epiphany of sorts.

This last year spent with my daughter has been simply incredible; so bizarre and different and exhausting and so, so wonderful. And I don’t regret a moment of it.

But, back to my financial goals.

As a stay-at-home mommy without a reliable income stream, my financial goal is to raise $1,000, somehow.

This has worked out really well in the past so I will shoot for that same goal and will reset my sidebar status back to zero over the next few days to reflect my updated challenge. (For newer readers to Broke-Ass Mommy, here is where you may check the status of my previous financial challenge. I had a lot of fun doing it last time!)

And here is a list of other financial goals for M. and me to knuckle down on:

• Possibly to change our local bank to an interest-bearing checking account. (I do not, however, like dealing with paltry rates.)

• Continue to clear M.’s student loan debt.

• Save the bulk of M.’s recent raise at work. And if we are able to increase the savings in our family coffers by at least $6,000 this year, that would be brilliant.

• Use a teensy percentage of savings for memorable vacation moments.

• NOT TO USE CREDIT CARDS except when money is all ready parked in the bank, so that any balances swiftly will be paid in full at the end of each month. (Cha-ching. Reward points!)

• Continue to stave off impulsive shopping, unnecessary purchases and other financial boo-boo’s.

• Set aside a separate fund for car repairs and, eventually, use the fund for a ‘new’ (ie, gently used, most likely) vehicle.

• Continue to find creative ways to increase my side income as a stay-at-home mommy through various writing projects, participation in focus groups, etc. (A few months back I qualified for a focus group on lip balm and found the experience different but enjoyable, and it paid really well!)

• Accumulate more points on my American Express card, potentially to be used for mileage to visit family in Hawaii.

• Keep available credit across all of our credit cards below the 75% threshold.

• Carefully track all of our weekly spending.

So here goes the savings parade, folks, and hopefully it’s contagious. What are some of your upcoming financial or savings goals for the coming months?

In unrelated news, I am gleefully looking forward to some dessert brownies that M. brought home as a small but unexpected treat. Now excuse me while I chomp my way into a food coma.

=^..^=

Domo: Stop spending…STOP SPENDING, I SAY.

When it comes to making purchases, I analyze everything to death before I buy. Here are some simple ways that help me to stay in that savings groove.

I envision how else I could be using that money. If there is any uncertainty surrounding a purchase, I also consider how else I could be utilizing that particular amount of cash. A couple hundred dollars spent on a purse, for example, might translate into an extra month of rent, or investing in a few quality shares of a company, or participating in a relaxing mini-vacation with the family. This is an extremely useful technique to discover what it is I truly value and where I wish to funnel my hard-earned cents.  

I try to purchase appreciating investments instead of useless ‘stuff’. Buying a shitload of depreciating ‘stuff’ will only result in making you poor while simultaneously building that product company’s own coffers and riches. I consider investment alternatives which are conducive to building my own wealth and try to be mindful of where my dollars are being sucked away to. Instead of continually purchasing certain products, why not consider buying shares in that particular company’s stock and owning an actual piece of the company?

Buyer’s remorse really blows. In order to avoid repentance and being stuck in a buying situation that I later regret, typically I will wait at least a week before making any large purchases. Believe it or not, more often than not that buying obsession fizzles away…with my savings account balance still in tact.

Pay with cash if necessary. Some of my friends use this method and it really is an excellent psychological boost to curb unnecessary spending, as it is much more painful to hand over a huge wad of cash than to simply swipe the plastic!

“You cannot afford to buy cheap.” If the purchase is useful and can be justified, I always try to invest in quality. One of my favorite sayings is, “You cannot afford to buy cheap.” Buying quality items that will endure helps to save over the long-term, by not needing to continuously replace the cheaper versions. I looove slipping on my ballet flats during the warmer seasons but the soles tend to wear out fairly quickly if I buy too cheap. I would much rather suck it up and invest in a sturdy, comfortable pair of shoes that will last through more than one season. Also I get incredibly attached to the few select pieces of clothing and I absolutely hate when they fall apart! Another great example of this is nutrition—investing in quality foods now will save enormously on medical expenses down the road.

I keep a log of big ticket purchases and make a note of how often it is being used, to determine the average cost per wear. The perfect tool to appeal to the OCD weirdo in me. I try to keep a spreadsheet of all of my purchases, to consciously make note of how often items are being put to use. This way I immediately can tell at a glance what has been worth investing in and what is worth simply foregoing.

Visual cues are extremely helpful as reminders. Photographs of certain goals may help dissuade that impulsive urge to shop. Yearning for that trip to Paris? Keep a picture of a cute cafe on the Champs-Élysées on your phone and then pull it out whenever you need to resist an urge to splurge on crap you don’t necessarily need.

I only buy what I truly love. This method has saved me gobs of dough over the years. Now whenever I evaluate a potential purchase, I only buy what I absolutely fall in love with and adore. If for what ever reason it only fits in the ‘like’ category, meh. I don’t need it.

So then I just walk away!

Also it always helps to try to get a grip on the emotional root of certain spending habits.  Ask yourself, what do I believe I will achieve by purchasing this item? What is it really satisfying within myself emotionally, and is there a more productive way to reach a similar outcome? You may believe that slipping into those new kitten-heeled shoes will instantly make you feel fabulous (and it may!) but is the product truly the cause? Envision yourself being fabulous even without that item!

Do you fall prey to emotional spending or impulsive buying? How do you handle potential purchases?

=^..^=

For the past few years I have been hauling around an ultra cheap purse that quite literally is on its last threads. Little bits are starting to flake off the strap and the seams are becoming undone. The bottom is spongy and torn and getting ready to let loose. I figured it was time to buckle down and make a serious effort to do some bag hunting to find a suitable replacement.

And being that Lexi and I are grappling with nasty colds, which has made it difficult to concentrate on anything productive these last two days, I used the opportunity to fudge around online and mindlessly browse for some price options. Meanwhile I am trying not to bash my head on the keyboard. (This is the third time I’ve had to stop to blow my nose since starting this paragraph, yecch.)

I envisioned a quality mid-cost leather satchel for all of my essentials: bottled water, a  mini tablet, a journal and pen, my cell phone, a wallet or pouch for credit cards and my keys. Something cute and original. Perhaps a tad boho-esque, with a charming dash of Indiana Jones.

However I have no clue what an efficient price threshold for a quality mid-range leather bag is. $100? $300? As I am researching these things, Etsy has been an addicting solution for stumbling upon that perfectly unique handmade or vintage bag.

I despise head colds and my inability to concentrate BUT I have discovered some darling bags on Etsy during my down time.

handmade leather-canvas backpack. (Source: Etsy)

I love the generous size and the earthy tones of this unisex leather-canvas backpack. I really admire that faded beat-up look and this handmade pack looks to be of decent quality. I could definitely see this pack accompanying me on many different adventures. Original, and just too adorable! ($85.00 by SandyLeatherBag)

vintage camel leather messenger. (Source: Etsy)

The description says this vintage camel leather messenger is for men but I totally would use it! I love how durable this bag appears and depending on how easy those buckles unsnap, it might be the perfect bag for a writer. At 18″ however, this is probably a bit too bulky for my personal preference. ($89.00 by Genuine Goods)

And for the romantic at heart…

an antique leather satchel. (source: Etsy)

Seriously, how cool is this?? According to the seller, this is an antique leather satchel from the early 1900′s that once belonged to a British officer in the Royal Navy and it has spent an entire life at sea. Talk about an abundance of character in every ding. This beautiful one-of-a-kind antique satchel may require special treatment and extra TLC but it is sure to inspire the dreamer and poet in all of us. ($60.00 by Rolling Hills Vintage)

I always feel a bit reluctant to purchase a big ticket item without being able to touch or view it first. Have you used Etsy before? What is the most you would spend on a bag?

Okay, time to tend to Lexi. She is getting very restless and is a bit uncertain on how to deal with all of the mucous oozing through her system right now. The poor wee mite.

Until next time. Sniffle. Cough.

=^..^=

Some pirate booty for the family coffers. My lustrous itty-bitty 1/20 oz gold unicorn is killing it with her miniature awesome-ness.

Merry Christmas to meeeeeee!

So I’ve plumped up the family coffers with a new member to my coin collection. (Remember my recent purchase: an Isle of Man 1 oz gold Angel coin? Hey, that one was not my fault. Discover card practically twisted my arm with their cash back incentive, those cheeky muffs.)

This latest addition has been dubbed LuLu the Unicorn and she is sheer miniature awesome-ness.

My mystical unicorn coin is a teensy 1/20 ounce of gold, roughly the size of my pinky nail, and she arrived snugly sealed in the original packaging from the Mint, accompanied by a tiny scroll of authenticity scribed in Chinese. I can’t read it, of course, so maybe it’s really a treasure map to a hidden portal leading to a magical dimension, full of real dragons waiting to rend away our fleshy bits! And unicorns to slay the demons. Or maybe it’s really a tiny magic carpet for other miniature unicorns to frolic on and all cruise around racing each other. Because even though LuLu is only a bust portrait I am pretty sure she lacks wings.

Regardless.

The Chinese Mint released their mystical Unicorn coin series from 1994 until 1997, which features different depictions of Qi’lin (the Asian Unicorn) on the obverse and the Western Unicorn on the reverse. LuLu is from the 1996 breed and eventually I hope to collect more of these rare coins from this limited series. I do find the Chinese artwork and detail on these coins stunningly beautiful. Also it would be neat to gradually hoard accumulate a unicorn coin collection for Lexi. However, although LuLu herself is not a rarity, some of her more elusive coined cousins can cost upward of thousands of dollars.

So that is LuLu, the teensy gold Unicorn, and she’s now all mine. My preciousss.

Isn’t she swell?

=^..^=

Are you in danger of being wiped out?

… and quite honestly, it blows. M. took his car in for inspection and the word came back yesterday: we are facing close to $2,000 worth of car repairs.

However, I keep reminding myself that the entire purpose of an ‘emergency fund’ is to be used when needed, and not to feel discouraged. Frankly I hate spending money on anything that doesn’t appreciate in value so it is totally aggravating when a vehicle is chewing away at such a huge chunk of our family savings. Unfortunately, a car is a necessary evil for our current situation and there is just no way to maneuver around these expenses right now.

Thankfully we can pay this bill off immediately, and the plan is to plop these unexpected repairs onto my rewards credit card and pay the balance off in full, to maximize my rewards potential.

The cash is readily available—usually I will accrue a highly liquid stash in order to pounce on investment opportunities on items at local estate sales, and such.

The advantage of credit cards and being able to tap into a line of credit

Let’s say, however, I did not have access to immediate cash to pay for these car repairs, and the mechanic is demanding payment by tomorrow. Here is another huge benefit to a credit card—I could use my available line of credit through my card to float the cost of repairs until I was able to sell (liquidate) some of my investments, and then pay off the balance in full.

This is why a lot of folks eschew an ‘emergency’ savings account, as they would rather not tie up large balances in a conservative account with paltry interest rates. This type of strategy, however, requires excellent credit and discipline.

I can not reiterate enough the importance and good financial sense of accumulating savings. Little bits add up and really do matter. It can mean the difference between dodging scanty annoyances and experiencing complete financial wipe-out.

Our family savings cushioned us from what may otherwise have been a hefty and dire financial pounding; instead, this car situation is just a minor nuisance.

Time to bravely soldier on.

=^..^=

For example, during one assignment I was sent on a shopping excursion in order to scout out the lip balm section from a venue of my choice. My mission was to document (with photos) where display setups were from the front door, how aesthetically-pleasing displays were arranged, and then base conclusions on how each brand was propped up/packaged, etc. It was a bit hilarious trying to discreetly zigzag through the aisles in order to document everything on my phone. Clerks tend to look at you a bit oddly for wandering around trying to snap pictures randomly.

The best part: I generously was compensated $150 for my participation!

My first focus group, for lip balm. Also featuring my daughter’s ‘sad doggy’—she drags this damn thing everywhere. (That’s my ‘cutie poo’ tote in the background.)

Which leads us onto … “My Financial Challenge Update“.

As a stay-at-home mommy without a reliable income stream, I made a financial challenge at the start of summer to raise $1,000, somehow. This is how things currently stand:

(All income was made from writing projects, sponsors and focus group participation.)

June – $80.00
July – $57.71
August – $425.80
September – $0
October – $262.50
November – $150.00

TOTAL: $976.01

SO. CLOSE. Just a hair’s breadth away from my $1,000 milestone. Wheeee doggies!

Broke-Ass Mommy Site Stats

Subscribers –

July 3rd:
2 subscribers (Can I send you something to express my gratitude? A tater tot, perhaps?)

August 8th:
18 subscribers

September 5th:
31 subscribers

October 20th:
73 subscribers

November 9th:
185 broke-ass subscribers, as of this morning.

Alexa Rankings –

July 10th: 3,507,434
July 30th: 1,236,943
August 6th: 906,877
September 5th: 369, 754
October 12th: 261,838
(current) November 9th: 211,222

Page Rank: 2 3!! <— Check your Page Rank, folks. There was an update recently.

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In unrelated news, here are some personal finance reads featuring some of my favorite lady bloggers on the internets. They are all kinds of awesome:

Frugal Portland – My Personal Philosophy at Age 31

NZ Muse – On Unabashedly Saying ‘No’ to Booze

When Life Gives You Lemons…Add Vodka – Why A Courthouse Wedding Is Not For Me

Mo’ Money Mo’ Houses – What Do Our Spending Choices Say About Our Values?

Budgeting in the Fun Stuff – Do You Fit Fun Into Your Life?

Mochi and Macarons – What Does It Mean To Be An Adult?

Little Miss Moneybags – Little Miss Milkbags–Would You Sell Your Breastmilk?

The Dog Ate My Wallet – Growing Your Professional Network

Master the Art of Saving – No Mortgage Payments For A Year—Sign Me Up!

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Broke-Ass Mommy was featured in the following carnivals (a colossal thank-you to each of these hosts):

Finance Carn. for Young Adults at 20s Finances
Y and T’s Weekend Ramblings at Young and Thrifty
Canadian PF Happy Hour at Canadian Personal Finance
Yakezie Carnival at Parenting and Money
Carnival of MoneyPros at Finance Product Reviews
Carn. of Financial Camaraderie at My University Money
Carnival of Retirement at CashNetUSA Credit Resource

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Now, onto the weekend.

Time to get your weekend started.

Have anything you want to accomplish by the end of the weekend?

Do tell.

=^..^=

Lexi is so, so proud to clumsily sprint ahead now, and my heart does these fancy little somersaults, all twisted-like, every time she turns to peek slightly over her shoulder. To check. To know that I am close, to grasp onto.

My days are now full of her laughter and her exquisite shenanigans, and it is such a cozy place to be.

On the financial front, M. and I are discussing various goals—a conversation which was ignited by our beloved, fatally-wounded MacBook yesterday, as it decided to shit the bed on us—and we have decided to implement some type of envelope system for our savings. Just, right now our wish list is so long and varied and somehow we must begin to organize our thoughts and prioritize all of these wants, in order to focus more and make a bit of progress toward each of them.

Last night we curled up with chilly fingers and hot tea to quietly murmur over these things: what percentage for long-term savings (with the principal never to be touched—we decided on 20%), and what percentage to stash into tiny vanilla envelopes, with each of our goals scrawled across in spotty ink. It is hard to believe that at some point in the future these envelopes will all brim with crumpled tens and twenties. There are excited whispers of introducing strict “no spending days” as we eagerly anticipate contributing to each of our financial goals.

Progress is exciting. Stagnation = boo!

More soon,

me.

It is Monday. (Again.)

Some PF link crushin’ to get you through the rubbish of Monday.

Here are some personal finance reads floating around the blogosphere, for your distinct perusing pleasure:

LBee and the Money Tree – Broken Heart, Broken Wallet-Part 1.

My Money Design – My Money Design For Achieving Financial Freedom

Modest Money – What Happens to Debt When You Die?

Canadian Budget Binder – How To Have The Wedding of Your Dreams and Still Be Frugal

So Over This – My Credit Cards Are Plotting Against Me

Money Life and More – How Much A Cheap Cruise Really Costs

Club Thrifty – Top 5 Finance Apps to Keep Your Finances in Check

Simple Debt Free Finance – The Worst Things For Your Credit Score

Frugal Rules – Are Rich People Really That Different From the Rest of Us?

Reach Financial Independence – Little House in Guatemala, Week 1 (with lots of pics!)

Monster Piggy Bank – 6 Simple Money Saving Tips

Pelican on Money – The Thank-You Letter That Landed A Job

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It is also time for another Broke-Ass Monday! Enjoy some of this fun free stuff circulating around the web.

…it’s another Broke-Ass Monday!

• Broke-Ass Mommy is helping to sponsor a $100 Cash Giveaway through Paypal or Amazon gift card (winner’s choice) in our ‘the importance of emergency fund’ giveaway. Don’t miss your chance to win, you cheeky muff.
• WorkSaveLive is celebrating their one-year blogoversary by giving away an iPad Mini, $100 Amazon Gift Card, and $50 Paypal Cash to three lucky winners! Hurry over to enter.

Good luck to all participants. See you folks for the next Broke-Ass Monday!

=^..^=

Here are some ideas on how to pamper myself through the upcoming winter chill:

1. A small box of truffles, or another delicacy from a skilled chocolatier, or even a tarte framboises-pistache from the best pâtisserie in the city, perched loyally on my writing desk some frigid morning, waiting to be nibbled on and enjoyed with a frothy dark-roasted french-pressed coffee, served in a porcelain mug.

a delicate box of truffles

2. A Moleskine journal, to capture every wisp of thought, anywhere.

Source: Moleskinerie, Troy Pesola

3. A wallet made from chewy real leather. My current tattered purse was purchased at Target six years ago as a broke-ass student, and is absolutely filthy.

a definite upgrade

4. A pair of luxurious lambswool slippers to sink my chilly piggies into.

Baaaah!

5. A King-sized bed set-up. (Potential bonus points: a memory-foam mattress.) Although this one is not a small indulgence and NOT cheap, it is a hot item for M. and I, as we are fed up with hobbling about all ache-y after what should have been a restful night of sleep. (Will be writing a heck of a lot more on this later.)

snoozin’ like a Queen

Do you have any planned indulgences for yourself or a loved one to get through the nippier months? Do tell.

=^..^=

Okay. I totally get that I should not be this excited over bills—especially now that my finances are in flux—but to be honest, I was completely over the moon to pay my Discover Black card bill this month. Which is totally a refreshing change from the twisted funk that bill paying usually puts me in.

It all started a few weeks ago when a promotional offer from Discover card arrived in the mail and was stashed on the coffee table for future consideration/shredding. And then for days the offer sat, glaring menacingly at me.

How dare you neglect me, you troglodyte? it hissed. I am to be used and indulged in!

The offer from Discover was to spend $1,000 by October with my newly minted Black card and then receive $100 cash back from my purchase. So finally I spent the obligatory $1,000 $1,750 and immediately paid the bill off in full.

Today my checking account was credited $100. Oh, and THIS arrived in the mail from a private collector:

Isle of Man 1 oz. gold Angel coin. My preciousss.

• Essentially I just received $100.00 off the spot price of gold for this remarkable Isle of Man gold coin, with the total cost being $1,650.

• I am fairly confident my gold Angel will appreciate (or retain its value) over the next few years much better than having those funds sit in a savings account with paltry interest rates. Eventually this piece will be converted into more tangible financial assets (dividend-paying stocks, income property, capital toward my own business, etc.)

• And if gold plummets and the price shrivels for the next twenty years, Lexi just inherited a gorgeous gold piece to use at her discretion at some point in the future.

Well played, Discover. Well played.
(Stop sending me offers, now. Please.)

=^..^=

Related posts:

• The Importance of Saving: Don’t Hack Down Your Money Tree
• The Saving Conundrum. Are Savers Financial Losers?
• Overspending Alert – I Totally Blame the Duck!
• Boo To Those Sneaky Bank Fees

Have you ever dreamed about stealing away in the dreary weather to a destination with constant warmth and sunshine? What about lodging in a place of your very own during your family’s winter weekend ski retreats? Buying a holiday home is an alluring luxury that promises to give you the best of both worlds. But what exactly can you expect when you turn this fantasy into a reality? Read on to find out.

The Basics for Beginners

At first glance, buying a holiday home will not be all that different than buying your first home was. You’ll need to determine a realistic budget for what you can afford by weighing your monthly income and current expenses against the selling price of the house. Remember to factor in utilities and maintenance fees, and determine who will be responsible for performing upkeep on the property. Carry out a property inspection and determine whether or not additional renovations and repairs will need to be made to the house, and how much they will cost.

Finally, secure a mortgage with favourable terms and rates from mortgage brokers. If you’re only planning to own the home for a short time, a variable rate mortgage with an open term may be your best bet in the current housing climate. Conversely, now is also a good time to lock into low fixed interest rates if you’re planning to own the home long-term.

Important Considerations For Renting

Things get a little trickier if you’re planning to rent out your holiday home in the off-season. The obvious plus of renting is that you’ll get the opportunity to make some money from your investment. But before that can happen, there are several considerations you need to keep in mind.

The first—and perhaps one of the most important—is location. Do some serious research on the area and the number of tourists it receives annually. Is there a demand for new rental properties or is the local housing market flooded with properties? Consider ways that you can reach niche markets—ecotourists, golfers, foodies, couples, adventure tourists, etc.—and then consider each group’s unique needs. Remember that tourists love properties with modern facilities, good views and outside recreation areas, and easy in/out access in close proximity to local restaurants, sights, and attractions. Talk with local realtors and neighbours to determine if your property is likely to do well, and how much you can expect to charge for rent.

Another major consideration is insurance. “Named perils” policies are popular with insurance companies for holiday homes, but be warned that these may not cover the cost of water damages or vandalism. Carefully review the terms and conditions of your policy as you will be financially liable for any damages not covered by it. Once you’ve calculated all these costs, you’ll have a better idea of whether or not a holiday home is worth the investment.

Scrooge McDuck has long been my beloved financial hero and last night I gleefully watched these vintage Scrooge cartoons from 1967. Uncle Scrooge is giving his nephews Huey, Dewey and Louie a life-lesson on finance and the nature of money, after they approach him regarding advice on what to do with their hard-earned savings of $1.95.

My little butterbean enjoyed dancing to this, as I sang, “…when you plan the bu-u-dget!” Enjoy the above gems of wisdom from Scrooge-y McDuck.

=^..^=

Related posts:

• The Importance of Saving: Don’t Hack Down Your Money Tree
• Bills Make Me Peevish and Need to Go Away
• Financial Check-Up; Our Vacation at Cape Ann
• Bitcoin, the ‘Comeback Kid’

And it is quite common for my thoughts to drift to finances and, in particular, on this night, to saving.

In this turbulent economic climate of nonexistent interest rates, savers are financial losers, which is why I believe it is so important for savers to shift their surplus into tangible assets which retain value or even appreciate.

I view my financial surplus (my savings) as tiny financial seedlings that—if prudently planted and nurtured—will one day grow and transform into mighty, fruit-bearing money trees.

Right now the biggest hurdle to wealth creation is finding fertile soil and a suitable planting ground in order for those first precious seedlings of savings to thrive properly.

Surplus held in a traditional savings account is rapidly losing value due to paltry interest rates and the corrosion of purchasing power. Hard-working families not completely strapped down by bills are now faced with a further challenge: how to store financial surplus, their savings, in a manner which will retain its value.

Some solutions I ponder over; storing a percentage of savings in precious metals, numismatics, antiques, collectibles and art, one’s own business (entrepreneurship), strong stocks wielding dividends (requires heftier principles), alternative currencies.

These all have inherent risks and are niches which require research and a certain level of awareness and expertise. Nowadays folks are being shaken out of passivity and forced to be more creative and knowledgeable in order to remain ahead of the insidious inflationary beast.

It is wise to choose a few niches and then become acquainted and comfortable with them until you’re a well-informed expert. (And, fortunately, there is a plethora of knowledge available online and at the local library.)

I would love to hear your thoughts. How are you combating inflation during this prickly era of suppressed interest rates?

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It’s past midnight. The apartment is blessedly silent and I’m curled up on the couch with my tablet, pondering this thought:

I am truly amazed at how little people save.

Many of my friends subsist paycheck-to-paycheck, and they believe stashing away a few bucks here or there is not going to make a significant difference in their finances overall.

I strongly disagree.

Every great financial empire was built upon saving, or someone prudently setting aside what is left over after payments and spending—their surplus.

Surplus of money can only be created in two ways: by increasing cash flow into your personal coffers and by decreasing the cash flow out.

Each cent is an opportunity for growth; fortunes are generated through tucking away teensy amounts of money until it blossoms into a thriving honey-pot of wealth. This small stash of surplus (savings) needs to be guarded prudently—as each cent accumulates, it becomes a financial seed to prosperity.

Plant each financial seedling protectively into fertile soil through wise investments and, through careful cultivation and attention, your seeds will begin to flourish and mature into fruit-bearing trees.

This produces further seedlings—interest, dividends, or capital gains, for example—and these children of initial capital will continue to multiply into streams of income, eventually producing their own offspring, and so on. With enough dedication and perseverance and by proceeding to sow seeds wisely, your small garden of savings will evolve into a thriving orchard of ‘money trees’, each producing an abundance of fruit to sustain you through the seasons.

So, don’t hack down your money tree!

It is so typical nowadays to spend an entire paycheck, which is equivalent to devouring all the financial seeds before they have an opportunity to grow and multiply.

Continuous spending also evolves into a vicious cycle where a financial surplus is never available, and therefore an opportunity to build a solid financial foundation upon it can’t manifest. Without proper attention and care, your financial garden merely withers and dies.

There are also those who foolishly blow through their entire savings and destroy income streams (usually on stuff) and essentially chop down all their money trees, viciously desecrating the entire orchard and leaving their land barren. They then wonder, why is money not plentiful? Why am I destitute and dead-broke?

This is why I am genuinely baffled by how more people don’t recognize the impressive nature and powerful potential of saving. Here is advice I offer to my friends:

• Be mindful that borrowing money—getting into debt—is merely paying rent on someone else’s savings. Avoid this situation whenever possible.

• And most importantly, don’t overlook the importance and value of saving—it is the key to building a thriving financial empire. Each cent wisely used holds the promise of a prosperous financial future.

Small, accumulated savings matter tremendously because it is your path to wealth and opportunity. So, what will you build?

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