A trip to the bank

I was online reading over my LOC statement since I had gotten it. I haven't had a line of credit before so the process is new to me. I have had consolidated loans and a vehicle loan and was used to how the interest/principal worked on those.

The statement was BAFFLING. The interest being charged monthly came out of the chequing account it was tied to. Sometimes when I made a payment it said 'regular payment' and there was the interest/principal proportion of money distribution. Sometimes when I made a payment it said 'principal receipt'. One of the most recent payments was for $100. It showed up as 4 different transactions on the statement. Payment in, interest off, some to the principal then the payment went off and then in again. etc etc.


I tried to backtrack to see if everything balanced and the convoluted statement made me so confused I felt like an idiot.

I stopped by the bank today and was able to speak with a representative. She saw me without an appointment and together we dissected everything together. She was confused as well and made a couple internal calls to the higher ups.

So we learned that my loan  is an interest only loan. There is no set payment that is applied/comes out each month. There is monthly interest that comes out of the tied chequing account based on the balance. I can go in as often as I like and make whatever payment I like. I am to use the words "I would like to make a payment on the principal of my LOC'. This gives me a pure payment and no interest comes off. Otherwise the teller will think it is a regular payment, enter it as such and the 'interest/principal' portion goes into effect.

I did know this with my vehicle loan but for some reason never thought to ask if I needed to say this with the LOC too. I need to make sure the teller does it correctly. Not all of them understand the difference. I know with my vehicle loan I had to educate the tellers as well.

I was refunded the interest that was 'accidentally' taken off through teller error. The balance owing is all balanced now.

I also learned that when I try to pay online, the computer doesn't have an option for 'principal payment' and it thinks it is a regular payment, and thus interest comes off.

I really appreciated how well the lady was able to explain it to me. I was worried that I would either a) feel stupid for not knowing things or b) have her explain them and I STILL didn't understand it and I would feel stupider.

I am glad I ventured into my online statement. While I had a head whirling afternoon and a sleepless night trying to figure it out, I got the answers to my questions.

So many of these things, LOC, loans, CC's etc are all so much a part of our lives and there are infinite details that have to be figured out and learned by those of us who are not naturally familiar with banking, interest borrowing.

Little bits add up

Ok I do something weird with my phone, cell and satellite bills. I round up when I pay. I have a set budget for them. Nice even round numbers. My phone/internet budget is $85. This covers basic phone with call display and my internet. I leave a little wiggle room on that bill on the off chance I have made a long distance call. That rarely happens. As such, when I pay the $85 each month, the amount owing the next month goes a bit less and a bit less. About twice a year, the difference between my $85 and the actual amount is significant enough I can roll a snowflake out of it.

My end December phone bill showed a $30 difference. I pay $85 and owed $55. It was time to roll a snowflake out of it.  This time I paid the $55 and withdrew the balance, from my chequing account and immediately took the snowflaked $30 and put it in my high interest account towards a savings goal. 

weird? yes, probably, but a wee thing that amuses me and makes bills a little more psychologically fun.  I am close to meeting athe first of many savings (planned spending) goals for the year.

siphoning from the jars

Something good comes from being sick during the whole Christmas break - I had a whole week of No Spend. Never happened before and undoubtedly will never happen again.

My tank was full and I drove nowhere, so full it stayed. We ate several times at mom and dad's and ate out of the freezer and pantry. No money spent for food. Jars just sat there, untouched. I went yesterday and took out week 2's money and debated.....and debated....and slept on it, and debated again.

I decided to take some out of the jars to create snowflakes. Week 2's money was not touched and went straight into their jars.

I did not spend my $20 allowance (didn't go anywhere - didn't need any make up or girlie stuff) so I took that $20.

I had $50 in my gas jar so I left $30 in there and took $20 of that. Longer drives will come up and that gives me a bit of spare money.

I had $40 in my entertainment jar, but did not touch any of it. Entertainments don't happen often and I'd like it to build.

I had $170 in my grocery jar. I left $70 in there so I can have a bit extra to stock up for back to school and lunches, and took $100 of it.

That gives me $140 of repurposed (found) money. I took it to the bank and put it in my High Savings account to put towards one of my Savings goals.

I know a week like this probably won't come around again so I will celebrate it and hope it inspires me to wiser spending and savings for 2012.

Goals for 2012

I am hoping 2012 is a year of focus and determination for me. I am aching for good health. I desperately want to use my time to it's most efficient level. I want to be out more and move more. I want to be more active about living in 2012, rather than passive.

Most of my goals are financial. It's where I have had the most success and control. (most of the time)

Goal 1 - Pay off Line of Credit - $3800
I know, I know, you're thinking 'line of credit?? since when do you have that debt?'  sadly this was added in mid December of this year. The rest of DS's Europe trip was due earlier than I thought. I confess I did a rotten job of saving for it. I just didn't pull things together. I put it on my til now untouched line of credit. This WILL be paid off before the end of 2012 with as little interest as possible, I hope.

Goal 2 - Pay off my Vehicle Loan  - Just over $7000 remaining.
As it stands, if I pay the loan payment each month, I will be done in December of 2012. Anything extra I put down will get that paid off earlier in the year. June would be lovely but that would require a full extra payment each month from now til June. It will be interesting to see how this one works out.

Goal 3 - Save for DS's vehicle plates. $800 for me, $400 for him but more from him if he works more. Target date - Mid July when renewal is due.

Goal 4 - Save $1200 for DS's trip.
The EF program suggests $100 per day of travel for spending money. There will be some meals he must pay for on his own. There will be some local tours that will not be included in the overall fee. This money I have to convert to Euros and set up an account where he can use a debit card from Italy as suggested by the teacher supervising. DS and I have been saving together for this and we're close to meeting this goal. Target date, end of February, so there is time to set up the account and order the money.

Goal 5 - Save $1000 for Summer 2012
It was really nice to once again have that money for impromptu summer activities and not have to worry 'can I afford this?'  It's preplanned entertainment money. Target date - June 2012.

Goal 6 - Save $1500 for Back to School
School fees and sports fees and band fees, school supplies and a few new clothes. It all adds up as every parent knows. Having this in place will not make me tense up and dread the start of school.

Goal 7 - Save $1400 for Christmas
This one is necessary if I do not tackle Wish 2 below.

Goal 8 - Save $1000 for TFSA - EF
I didn't put anything towards this at all last year and I am stuck at $2000. I need to reactive this drive again.

Goal 9 - Save $1500 for RRSP
I'd like to do more but given what I have listed above, I know that it is unlikely. I will be more than happy if I 'merely' acheive the goal.

Goal 10 - Lose 20 lbs.
It is do able, if I just make it a priority and DO it.

Goal 11 - Read 25 books this year.
Reading makes me happy. I like happy.

Goal 12- Do a better job of keeping up with my boys' expenses journal.
I started this in April of last year and kept track of how much I am spending on them in a given month. Part of this honestly was so that when DH did another of his 'you don't pay that much for them' meltdowns, I could show him. The other was to keep for the boys and myself so we would understand better where the money is going.

Wish 1 - Take DS2 on a wee trip while DS1 is gone to Italy over Easter.
I just want to spend some bonding time with him. I'd like to do Toronto and take him to the ROM. New York would be awesome but I would be scared to death to go on my own. He's really bummed that he didnt' get to go to Wicked with me. It's playing in Colorado over the Easter break. Could I swing a quick trip down there and give him one heck of a Birthday? Money needed - unknown.

Wish 2 - Take the boys on a family tropical holiday for Christmas in 2012.
I thought a lot about this while I was on the couch sick over Christmas. DS1 will be graduating in a year and this would be our first/last/only chance at a family holiday before he leaves me. While I am not a fan of hot or sand or, god forbid, bathing suits, I think they would enjoy Mexico and it's probably the cheapest destination option. It would be a surprise for them. I have no clue how much this would cost. I'd have to ask some folk at work who have done this.


I know this is a big list. A costly list. I don't know how much is achievable. I do know, however, that little bits sure do add up. Snowflakes are a good start and I do have to start somewhere.

Happy New Year!

I hope you all made it safely through New Year's Eve, celebrating in your own special ways.  I love reading different blogs and seeing all the unique ways this has happened for my blogging friends.

DH spent New Year's Eve day out ice fishing with his sister and brother in law. He loves it, but the appeal of sitting in a little shack on the ice for hours and hours doesn't register for me. lol Different strokes for different folks.

DS1 had hockey practice with the junior A team then went off to work at the restaurant for the night. To quote him "this suck, having to work the last new year's eve EVER'. Always eloquent, his mother replied with 'WTF??' Apparently he subscribes to the 'world is ending in 2012' theory. lol

DS2 and I went over to my parents' house for Chinese Food, for supper. We came home and I watched the Canada/US Jr hockey game.

DS2 had a friend over and they watched a good part of the first season of LOST, which he got for Christmas.

Today is my last leisure/rest and hope I get better day. I am hoping I will be well enough to work starting Wed. If not, I am going to have to take a leave for a month or so while I get my strength back. We will meet some of my family over at mom and dad's for a prime rib supper. DS1 has hockey practice and will join us for supper. DS2 has been hankering to play Monopoly with my sister 'his whole life' apparently. I don't know why. When we were little and played she always won and I always cried :-) With the philosophical elegance of a parent, I told DS2 if he wanted to start 2012 crying then have at it LOL.

I am hoping to get some tidying done today and some laundry. I life feeling semi organized before school starts up again.

Hope your day is fantastic!