It is coming up to two years since I posted on my blog. So much has happened.
– My husband and I started a plumbing business – I took an RBQ certification course here in Québec – I got my apprentice plumbing cards – A pandemic occurred – I paid off the rest of my mortgage using my inheritance and savings – We now have 6 kids – My autistic son started a new therapy in 2021 to deal with the psychological consequences of the pandemic – I found out I have executive dysfunction, which explains my amazing ability to start projects but not complete them and the subconscious negative, self-limiting mindset it can foster (thanks brain!) – And a lot of household items are now in need of being replaced; cars, fence, floor, plastering, wall paint, furniture… the list goes on (can you say ka’ching! $$$$)
Although the newest baby is still young, I’ve been itching to start earning money again. I have quite a few savings goals that I want to achieve before I’m geriatric. However, jumping back on the tools at the moment is not an option. The baby is still breastfeeding, I’ve got 2 other little ones at home and it’s the start of summer vacation. Which means 6 kids home for the summer.
On the flip side, this blog is up for renewal in mid-August, and I need to decide what to do with it. Should I revive this dead blog? Should I give my blog a new direction? I don’t want to give up, and I want to squash my executive dysfunction by giving this blog another go. To revive it, I might add a type of vision board, some measurable goals to which readers can follow along, and maybe a ‘stats’ page with my latest personal finance statistics. Also, I might connect my website to my youtube channel. I have goals for my youtube channel as well but I have yet to share that here.
All in all, I would really love to have a space to share my goals and reminding myself that I can execute some of them successfully. And allowing this blog to remain online is one of those goals.
I am sick today. My husband was kind enough to take all the children out of the house to visit some family while I recover. We had a glorious summer in our new rental. I did absolutely no investing over the summer. I checked my accounts only a handful of times. Although I did not check often, the dividends continued to pile up. Almost $600 in cash in my TFSA and $50 in my RRSP. The good news is, a portion of my inheritance came in. I felt it necessary not to decide what to do with it immediately but to wait. I eventually decided to pay 15% to my mortgage, and then wait with the remainder. I am glad I waited. It was very difficult and emotional, more so than I anticipated. The bank kept calling, asking what I planned to do with the money. They had plans for the money. I told them I had my own plans and I wasn’t interested. They called back. I told them I didn’t live near a branch and going to see them was an inconvenience. It’s true. The big banks don’t service rural Canadians but they sure want our money.
Spending wise, in the end I went a head and made one large purchase this summer. Three violins, all for my children who have started music lessons. A great investment in my eyes. (I am biased, I play the violin). My father loved classical music (specifically the UK’s Classic FM) and the Opera Lyra, and my mother was a cantor at church. A lovely purchase in their honour. I have yet to buy a piano, however I am looking for one on Kijiji. Maybe for Christmas.
Although I didn’t purchase any stocks, I made a very important investment. I invested in my husband. I used some of my savings and some of my inheritance to help him start a plumbing company. Setting up costs like corporation fees, accounting fees, a used van, decals, business cards, mechanical repairs, different types of insurance, tools, material, small advertising and many types of government licenses. Some say buying a house is the largest purchase one will ever make. But investing in your own family business must be one of the largest investments one can ever make.
To think that many of the companies we invest in were started by someone, a family, or a small group of individuals. They grew, maintained profits and continue to exist many decades later. That’s an amazing feat. They even share their profits through dividends. I am not sure I would be as generous – ha! These companies, although many started by men, must have had great wives behind them.
Farewell for now. I will be back with my newest purchases soon. I won’t make you wait as long.
December 31st… It’s my eldest daughter’s birthday. She wants everyone to know it’s her birthday, and she’s turning six. She also learned how to earn money this year, and why it’s important – So she can buy food. Long story short, she went to school one morning after refusing to eat any food I would offer her, knowing full well the school was serving breakfast, albeit for $1. My daughter happily ate some plain toast (yes, plain toast for $1! don’t get me started) and when she arrived home, mom saw the $1 receipt in her lunch box instructing me to pay up. Now, I don’t judge how French Quebeckers raise their kids but this mom is not ‘un guichet automatique’ aka GAB or ATM as it is known in the rest of the world. I gently explained to my daughter that things cost money and that I wasn’t going to pay for this bill because I had already spent all my money at Costco 😉 (technically true, I buy a lot of food). I told her that in order to pay for it, she would have to earn $1 through work. When dad got home, she did a handful of kid sized chores for 25¢ each and brought the money back to school the next day. The following week I asked if she had any money left in her purse and she said no… she bought more $1 toast at school. So, moral of the story is… I taught my kid how to earn money but not how to spend it wisely. That will be my task for next year.
In other news…
I made one last purchase this year. On December 5th I purchased $1140.88 minus $5.31 in fees of Transalta Renewables (RNW), 102 shares for $11.19 each. We all know what happened several days later in the Canadian and American markets. However, I am still pleased with the dividends this company pays. This purchase should add $7.98 per month in dividend income for a total monthly dividend of $14.65 (Whoot! Whoot!). It is also crazy to think that the extra $140.88 was from dividends sitting in my cash account!
So, how did I fair this year? Drum roll please!!…..
Well, I hit my annual dividend goal of $750! As of December 31st, this stay-at-home mom brought in $1008.69 in dividends. I surpassed $1000! The good news is I kept my fees below 2%, and yet I missed making 2 purchases. One in October and another in November. However, I’m not disappointed about missing these purchases since prices have come down since then increasing my purchasing power momentarily.
A few months ago on a fellow dividend blogger’s site (I can’t remember the name! If you know the name comment below so I can credit them), he broke down his dividends into an hourly wage. I thought this was ingenious. Although I don’t receive an hourly wage (solely the Canadian and Quebec Child Benefit – which fluctuates with each tax season), I still work pretty darn hard. So, if I worked 40 hours a week for 48 weeks of the year (2 weeks off in summer and 2 weeks off at Christmas), I would be working 1920 hours per year. So, $1008.69 dividend by 1920 hours = 0.52¢ per hour (roughly). Almost the equivalent to the American minimum wage of the 1940s. Hopefully, next year I can give myself another hourly pay increase that will propel me into the 1960s!
Here is something else you might find interesting…
My 7 year old made $105.52 in annual dividends. My 5 year old made $48.69 in annual dividends. My 3 year old made $18.83 in annual dividends. My 1 year old made $12.15 in annual dividends.
My newest baby is 2 weeks old as of today! I should be starting his first DRIP in the coming months, it will most likely be a share of BMO like his siblings.
Also, I only contributed $50 in optional cash purchases to each of their accounts this year. However, pretty much since my oldest got his first share as a newborn he has had fairly consistent annual dividend increases.
So, that’s it for this year. I still need to think about 2019. There are a lot of details to go over in terms of how much I should contribute and competing priorities. As of January 1st my husband is officially incorporated as a “Société” and has started his paternity leave, we are looking at putting our eldest back into some much needed therapy and my parents estate will be officially complete sometime this coming year.
Holy smokes! Did I go crazy this month? I had money for June, July and August just sitting there waiting to buy stocks. And boy, did I spend it.
I made 4 purchases in my TFSA. Three of which I am happy with and one I am not 100% sure about in terms of dividends and growth.
So, this August I bought…
10 BCE (top up)
10 Laurentian Bank (top up)
43 Riocan REIT
31 Canadian Utilities
Canadian Utilities is by far my best purchase. It has a good track record of dividend increases and the share price growth is nice and steady.
The one purchase I think I could have done a bit more research on, is Riocan. After looking through it’s dividend history and growth, I think I could have made a better choice. The last dividend increase was in 2013. I only realized later it is not even a Canadian dividend aristocrat. Oops.
Do any of you own Riocan REIT? Am I doomed in terms of growth?
Break open the champagne! Time to celebrate back-to-school with a long blog post! 🙂
I’m sure you’re all wondering, how in the world I put X amount of dollars in investments each month with 4 kids and one more on the way? Everywhere you go, they tell you kids are expensive. However, saving with kids is not rocket science, it’s just different.
Here’s how I approach it (from a Canadian perspective… sorry fellow American readers!)
Try to keep in mind, as anyone who has balanced a budget before, we all know income must equal expenses. Budgets don’t balance themselves. So, we can approach saving with kids from an offensive (earn more) or defensive (spend less) strategy.
I’ve done my best to summarize my approach in 5 points. I don’t do each one perfectly, nor do I have the expectation that others do things this way either.
Yes. I said it. Move.
Don’t hate me.
If you choose to live and work in the urban area, you will have to accept that there is a price to be paid.
Let’s face it. Canadian cities are expensive. I love them. They’re hip, cool and exciting. Many shops are open 24 hrs (I used to do my grocery shopping at 4 o’clock in the morning when I had 3 kids). But after we had our third, we realized Canadian cities are not as kid friendly as we’d like to believe. My tandem stroller won’t fit into my favourite shops and it’s unrealistic to expect my kids to, uh… not be kids.
I had to accept Canadian cities are for single people, or couples without kids. And if you have kids in the city, you’re going to have to pay extra, a lot extra and deal with a higher proportion of people who think children are the devil’s spawn (they are free to hold these opinions!). But that’s life…
So we moved. We moved back to my husband’s hometown. We paid $80k for a tiny fixer-upper on 23,000 square feet of land, in a village with only a dépanneur (corner store), friperie (second hand store) and an ATM machine. No gas station or grocery store. If you do drive the 15 to 20 km to the nearest grocery store, it closes at 10 p.m. on weekdays and 6 p.m. on weekends. Oh, in our town there is no Tim Hortons either.
Granted, we pay more for my husband to commute to the nearest suburb but its not as much as the housing we paid in the city, and we pay cheaper gas prices too.
Side note – Cities are normally built with a dense urban centre and rural rings around it. Suburbs are the first ring. The towns of 3000 – 8000 inhabitants are in the second ring (30 – 60 minute drive to the city) . And the third and fourth rings are the towns of 0 – 1000 inhabitants, i.e. very very far from the urban centre. That’s where we live.
Also, town living was a huge adjustment for me the city girl. I can’t haphazardly offend people (ex. honk my car horn at drivers who don’t stop at stop signs), thinking to myself “Who cares! I’ll never see them again.” I will see them again, they live in my town. Can you tell? I have a strong character. However, in all honesty, it took me a good 2 and 1/2 years to adjust.
But, you know what’s great? Most people who live in the country are simple people. So, you don’t have to impress or compete with them. Just thought I’d throw that out there.
As well, small towns in Canada want families. Almost 50% of my town’s population is kids. Some will even pay your first year of property tax (like some towns in the Beauce region), subsidize your child’s sports activities and provide low cost or even free summer camp. Our town gives us $50 or $100 (I can’t remember) per kid for sports activities, and we only paid $140 per week of summer camp for 2 kids including before and after care! Woot woot! A nice little luxury for this mom.
2 Emergency Account
It’s gonna’ rain. When? I don’t know. But it’s gonna’ rain.
Each pay, we put 10% into a savings account. It’s usually over $1k, but it’s enough to cover any surprises.
However, and there is a BIG however, not everything is an emergency . Christmas? Christmas is not a surprise. It comes every year on the same day. Birthdays are not a surprise either. Nor is ‘back-to-school’ time. It’s coming, at the same time every year. It just takes a little forethought and practice.
Oh, and babies? They normally take 9 months to incubate. So, in our case it doesn’t fit into the emergency category unless there are major unforeseen complications.
3 Keep Monthly Costs Low
Besides our low mortgage payment, we do our best not to carry monthly costs like car payments or those buy-now-pay-later schemes for furniture or appliances. We can’t make our budget work if we are carrying around multiple fixed costs of $300+ a month.
Some things we buy used and other things we buy new. Washer and dryer? Used. Cars? Used. Shoes? New. Mattresses? New. Clothes? A mix, some hand-me-downs, some used and a new outfit for school and at Christmas.
We have internet, but no cable tv. We watch YouTube and use Chromecast. My kids… play outside. I am allowed to hang my washing outside, unlike some city neighbourhoods I’ve lived in where it was ‘interdit’. But, I don’t hang my laundry. I’m lazy. And think dryers are a great invention! Our house is heated with wood. (You should see me going to get wood in 4ft of snow, and super pregnant. It’s kinda’ funny.)
Oh yes, food prices in Canada and the ubiquitous winter inflation. The price of some food items, aka fruit and vegetables go up each winter (remember $10 cauliflower?). Food is the largest section of our budget. More than our mortgage. And well, my first tip would be don’t buy food at the dépanneur.
Other then that, keep it simple.
I feed a hungry man. When he does hard labour he can easily consume over 4000+ calories in a day. So, simple for us means meat. Yep, we eat meat. (Sorry vegans!) If we want to save, we cut back in the treat area or make it at home. And soon, it will be cheaper for our family to buy a whole cow, pig or lamb rather than buy it at the nearest suburban Costco.
Dinner? Roast chicken and baby potatoes and sliced cucumbers. Sausages, sliced peppers and some kind of carb.
Breakfast? Steak, eggs or oatmeal. Sometimes we make crepes on Saturday for the kids. If we buy cereal, we can easily go through 3 bags of milk in a day and a half! Burning a whole in our wallet. Our cereal habit is slowly changing.
You get the idea. Don’t over complicate your life. Eat like your grandma.
Sometimes we get free fruit and vegetables from our neighbours who have impressive gardens and cannot consume everything they grow. Once, a family friend of my husband asked us to stop by their farm and pick up several boxes of fancy-schmancy lettuce, part of an order cancelled by a big grocery buyer in the city. Don’t mind ugly carrots? You can get them by the truck load during harvest time. Same with bags of onions. Last year, I didn’t know what to do with all those free onions I got.
I’m sure we could save more money by having an extensive vegetable garden, bees or chickens on our property. We have the space for it, but not right now.
4 Enjoy the Little Luxuries
My husband and I enjoy little luxuries that we once had to give up when we were paying for our son’s medical expenses.
Like grabbing a coffee from Tim Hortons, hiring a babysitter. Which is way easier to do in the countryside. I have a larger pool of mature teenagers to choose from. Or, subscribing to a newspaper and reading it beside the wood-burning stove without interruption (not really, this is a dream. I wish it was without interruption).
Sometimes it’s healthy to deny yourself the little things so you can appreciate them more when you do indulge.
5 Live on One Income
This is honestly the hardest suggestion. Pretend like the second income doesn’t exist and save it. This can only be done if you make sacrifices in other areas. If you can’t live on one income, try to live on one and a half or one and three quarters, and save the other portion.
Since I live in Canada, we receive the Canada child benefit and Quebec child benefit. However, we do not consider either of these to be 100% disposable income to be included in our budget. We learned this the hard way. With each changing government, income changes, and aging children – the amount goes up and down like a roller coaster. (And god forbid you don’t get your taxes in on time, you won’t see that money until Christmas – if your lucky!)
Do what works for you. We do a mix, where some of the money I receive is saved and some goes for the kids.
Anyways, this money is deposited in a separate account and not in our regular chequing account.
If I can’t see it… I can’t spend it.
As a side note, I will always remember this commentary from Elizabeth Warren about the two income trap. You can see a clip about it here.
Basically, if my husband gets injured or loses his job, I can go back to work. And rather than us having to cut our budget in half, my new salary could replace most of his income almost dollar for dollar. We wouldn’t feel the pain too badly.
So that’s it.
The only way the above suggestions work, is if you are willing to be flexible and make changes. My dad’s motto was “max-flex,” or maximum flexibility.
That’s all the advice I have.
I am truly of the belief that kids are not an impediment to living a good life. They add too it! 🙂
I am finally passing the $400 mark towards my goal of $750 in annual dividends and I feel as though I am in the home stretch.
Here is my takeaway for not making June and July purchases.
It’s okay. The world will not end, and I still get paid. My account still grows even if I am unable to add new money. I still get pay raises (as my dad would say), even though I do not technically work outside the home for a salary. And lastly, I got a bigger pay raise this month than my husband, hahaha. Thank you RBC! (I hold RBC in another account which I will post on later in September)
I made this video in memory of my father. He started investing young but didn’t focus on dividend reinvestment until later in his life. He retired at 51 when I was just 12 years old.
I count myself lucky to have been able to come home from school and have a parent there to greet me. It kept me out of trouble!
My dad was a Scottish Quebecer and enjoyed the fact that descendants of Scottish ancestry are 3 times more likely to be millionaires.
From a young age he taught me the basics of saving and investing. To live within one’s means and not spend more than you make. He loved compounding interest and wanted all of his kids to start investing young. (Money burned a hole in my pocket for quite a while…) Lastly, he knew the benefits of dollar cost averaging, buying more when prices were low and less when prices were high.
He was a great guy and taught me and my siblings a great deal. He would have been tickled pink to hear about Royal Bank’s 4% dividend increase today.
May ended with my 2018 dividend goal at $234.77. However, my June dividends brought me a huge boost! My Enbridge DRIP brought in $135.93 which was then reinvested, purchasing 3.45 shares at $39.37. Bringing my total holdings to 204.041 (Love that third decimal point!)
My TFSA had three dividend payers – Fortis, Inter Pipeline and TransAlta Renewables, which paid as follows:
Anything special needs related, especially the high cost of therapy hits home. Back when our oldest was 3 until the age of 5 1/2 he was in ABA or Applied Behavioural Analysis, one of the therapies mentioned in the Globe and Mail article. And yes, it did cost $5000 per month for only 4 1/2 days a week of therapy. In fact, the price has increased since then due to the minimum wage hike in Ontario forcing the per hour cost of junior therapists to go up to $15/hour. (If you were wondering if the therapy works. Yes, emphatically yes, the therapy did help our son tremendously as you can see here in this video).
In total, for 14 months of ABA therapy we dished out roughly $75,000 CAD. No small change when you are in your twenties and not established in a career. We stopped only because we ran out of money and decided to move so our son could attend a public school with ample support instead of spending more on private education. You gotta’ do what you gotta’ do.
However, I would say this experience is one of my huge motivators for saving. The possible future costs associated with our son’s condition are unknown but not unplanned for.
Sometimes life happens and sadly, I did not make any purchases for June or July. June was a busy month with spring colds, school IEP meetings and the inevitable end of school year madness. July was the start of summer camp and I took a nice trip to the UK and Germany to visit friends and family. However, now that we are in August I am looking at doubling up my purchases this month to make up for missing June and July. I am currently researching which companies to buy and maybe top up a few I already hold, so stay tuned I should have it posted in the next week!