Home & Garden August 21, 2016

Summer’s almost over? Start planning the next one!

With summer coming to an end, you may feel the need to put on some sad background music and imagine yourself walking down the street shivering in the coming winter. But before you do — stop! It isn’t necessary to succumb to the winter blues quite yet. Sure, you may have missed your chance at going south and drinking pina coladas, but there is no need to mope. Instead, begin planning for the vacation of your dreams, to come NEXT summer!

Budgeting for a summer vacation involves planning and consistency. The sooner you begin, the better! Think of what your dream vacation will look like next summer, and start that planning. To help, here are some tips:

Begin a vacation savings account

A vacation savings account is a great way to begin storing extra cash away immediately. If you set up automatic monthly payments, then money will add up in the account in no time. By keeping a separate account for your dream vacation next summer, it keeps you from spending it now. Remember not to dip into it, not even in times of emergencies! If you receive any extra cash at any point in the year (promotion, tips, bonus), it can also go into the vacation savings account. When you eventually embark on your journey, the money is also in one place so you don’t overspend. Worried about extra fees? Another option is to load all of the vacation savings onto a prepaid debit card before you embark on your journey. That way, you don’t have to deal with those pesky (and sometimes expensive) banking fees.

Look for good deals

Looking ahead for great deals can help save on costs for the vacation. By researching on Groupon and other discount savings websites, you may be surprised at the great deals you can find for your dream summer destination. This is useful for accommodation costs or events that can be otherwise pricey. If you are going with a group of friends, groupons also help everyone save money.

Buy tickets ahead of time

If your vacation is overseas, buying plane tickets ahead of time is essential to cutting costs. By watching the cost of plane tickets and looking for deals, it allows you to catch the best price in plenty of time before your vacation. There are websites that supply the cost of several airlines in one consolidated spot, which makes the search for the best price much easier.

Cut back on draining expenses

A part of budgeting is finding out which costs are wasteful and draining to your bank account. Cutting back on expendable purchases can help make your vacation more affordable. By printing out your bank statement and highlighting every non-essential purchase, you can see which of your expenses are wasting a lot of money and can be cut out. By monitoring these draining expenses, it helps to save money and budget for more important expenses like beautiful vacations. Another way to monitor expenses is to download a an app that allows you to see what you are spending your money on and how it contributes to your overall budget.

Research cheap local favourites at your destination

Since you are planning way ahead of time, there is time to plan and research fun activities and restaurants at your destination. Explore local blogs of affordable restaurants instead of eating at expensive tourist destinations. This is a good way to cut costs when you are on the vacation. By finding free or cheap activities that are commonly done in your destination, it will help to save money. It is also a more authentic way to enjoy a place rather than by taking part in the the touristy, and often very pricey, outings.

Budgeting far ahead of your vacation is the best way to ensure you can afford it. The more time you have to save, the better off you will be. Keep these tips in mind, and don’t forgot the most important thing; have fun!

Living February 24, 2016

What is cap and trade?

Climate change is on everybody’s mind. The Ontario government has been slowly releasing a stream of green initiative announcements about green cars and environmentally sustainable housing retrofits, but one of the most important initiatives is still to come. Investing in a cap and trade program is one of the best options for the province, with the potential of making a vast impact on the amount of carbon Ontario produces.

Cap and trade agreements place limits on the amount of carbon companies can produce without being financially penalized for it. The “cap” puts a limit on the specific amount of emissions that can be produced annually. In Quebec and California, which currently have active cap and trade programs, the cap declines annually by three to four per cent to allow companies to slowly adjust to increasing carbon reduction targets.

The “trade” allows companies to participate in a market where companies can buy or sell carbon credits. The carbon credits are linked to every tonne of greenhouse gas that is emitted. The “trade” portion of the incentive creates an opportunity for companies make financial gains through the use of environmentally sustainable initiatives — if a company lessens their rate of emissions, they can sell their unused carbon credits to other companies.

The cap and trade program simultaneously rewards companies that have lowered emissions, while penalizing companies that use high levels of greenhouse gases. The incentive also pushes companies to invest in green technologies.
When the cap and trade programs were put in place in Quebec and California, free permits were accessible initially to companies that were particularly vulnerable to the cap and trade program, and Ontario is due to follow suit. Companies that are emissions intensive and trade exposed (EITE) will receive free permits until they can gradually meet targets and reduce greenhouse gases.

Ontario’s cap and trade program will partner with the existing system in Quebec and California. The partnership will allow access to a bigger pool of low-cost emission reductions, a larger market for trade, and help to set a common price for carbon across several jurisdictions.

It is expected that the cap and trade program will make $1.4 billion for the Ontario government annually through penalties, permits, and the auctioning off of carbon credits. Ontario has promised this profit will be invested back into environmental initiatives. “The proceeds generated through cap and trade in Ontario will be reinvested in a transparent way. They will be used for initiatives that further reduce greenhouse gas pollution, support innovation and help households and businesses reduce fuel needs,” said the Cap and Trade Program Design Options report, released by the Ontario government.

Cap and trade essentially holds high carbon-emitting companies accountable and allows environmental sustainable companies the opportunity to make financial gains while supporting the green energy industry and boosting government dollars. More importantly though, it makes strides towards a world where human beings co-exist with the planet rather than continue to destroy it— that is, as long as the government doesn’t auction off too many credits, allowing emission-intensive companies to continue producing greenhouse gasses by simply paying for it.

The Ontario Premier, Kathleen Wynne, is positive that this new cap and trade program will make a substantial difference in the province’s emission levels.

“To fight climate change — one of the greatest challenges mankind has faced — Ontario is putting a limit on the main sources of greenhouse gas pollution through a cap and trade system to protect the air we breathe, the water we drink and the health of our children and grandchildren,” she said in a statement back in April.

The Ontario government will be revisiting the cap and trade program in Thursday’s budget meeting, in preparation for its estimated launch in January 2017.

#TOpoli February 18, 2016

Toronto city council approves 2016 budget

Toronto’s city council approved the 2016 budget Wednesday with little debate or discussion.

The 2016 operating budget of $10.1 billion and the $21 billion 10-year capital budget includes a number of plans for transit, alleviation of traffic congestion, public safety, poverty reduction, and child care subsidies, among other things.

It is rare that council only takes one day to discuss and debate a budget in session — two days were scheduled for this item, with a possibility of a third.

Council addressed the issue of property and residential taxes before approving the budget itself, two items that are usually adopted together as a package. Deputy city manager, Giuliana Carbone, said the 2016 budget was a challenge. City staff had to balance instruction about keeping spending low while committing to a number of long-term capital projects.

“Those are not compatible,” he said.

Taxes are always a controversial topic — certain city councillors felt like the suggested overall tax increase of 0.88 per cent was too low, while others recommended the city not increase taxes at all. Instead, they suggested, the city should consider other forms of revenue.

Council eventually adopted the original recommendation, which included the following:

Property tax increase: 1.3 per cent
Non-residential tax increase: o.43 per cent
Overall tax increase: o.88 per cent

An additional 0.6 per cent was also added on for the development of the Scarborough subway and 0.78 per cent for residential properties, bringing the total tax increase to 2.69 per cent. The tax increase is well below the rate of inflation, and remains the lowest residential property taxes in the GTHA.

The budget greatly depends on municipal land transfer taxes. The city is making an assumption that the tax will not be reduced or softened — essentially that it will hold constant. If the municipal land transfer tax wavers, Toronto could be left with a large hole in the budget going forward.

“At this point, we are able to expand the service level in 2016. Going forward, unless we have an increase in land transfer tax, that clearly becomes unsustainable” said Peter Wallace, city manager for Toronto, to council Wednesday afternoon.

The budget itself includes $8 million geared towards poverty reduction, $5.5 million to support the Mayor’s Task Force on Community Housing, and funds to help with improved streetcar reliability, Sunday morning subway service, and the hiring of additional seasonal inspectors of municipal construction to alleviate traffic disruption. It also includes $1.25 million for child-care subsidies, which was not in the original recommendations.

Screenshot 2016-02-18 14.19.44 — Toronto city budget presentation

At the end of the day, council didn’t really consider changing or altering the budget, which is why it only took a day to pass. Important projects like the Yonge Relief Line, SmartTrack, and the revitalization of Toronto Community Housing are not being funded this year, despite the city’s insistence of their priority status. The budget is a very political process, and the mayor couldn’t be seen supporting a tax increase that was higher then inflation, despite the blatantly obvious positive effects it would have, because a) the status of the City’s labour negotiations and b) it’s not popular for re-election.

Council’s decision to not match tax increases to inflation will, ultimately, come back to haunt them. If taxes don’t match up to the rate of inflation, there will always be debt. In fact, the gap will continue to grow. So, Toronto needs to make a decision. It won’t be long until the budget planning process happens all over again. Let’s not make the same mistake next year — as the city manager said, Toronto just can’t afford to.

Living March 3, 2014

Little expenses can make a big dent in your finances

I just spent $2,000 on car repairs. I know it’s not a lot in the grand scheme of things, and to be fair, my car does treat me quite well considering my complete and utter lack of care for it, but no matter how much money I make, I will always resent the unforeseen high dollar expenses that seem to pop up when you least expect it.

I tried to explain this to my sister, and she laughed at me! Her response? “You spend more than that per year on sushi.” This got me to thinking; I have mini heart attacks about something like an expensive car repair, but I don’t think twice about the unnecessary smaller amounts that I spend every day. When you stop and add them up, those little expenses can add up in a big way. So, I decided to make myself a list of the daily little expenses I indulge in and calculate what kind of a dent they actually make in my finances.

First on the list? My daily vanilla cappuccino. At $3 a day about five days a week, that sets me back almost $750 a year, taking into account vacation weeks or miscellaneous missed days.

Then of course are my lunches on the go, and with my tendency to avoid the fast food joints, this easily runs me about $10 a day. That’s $50 a week and $2500 a year. Yikes!

I’m also a convenience junkie, and that reflects most prominently in my monthly bank fees. I can seldom be bothered to find my bank’s ATMs when I need cash, and depending on the machine, the fees can range anywhere from $1.50 to $3.00 per transaction. A few of these per month and I’m probably spending an extra $200 a year.

I’m sure there are more incidences that have become so habitual I can’t even think of them off hand, but I’m sure there are solutions to these unnecessary expenses that would work for my bank account and my lifestyle.

I could invest in one of those fancy schmancy premium coffee makers and have my daily vanilla cappuccinos at home. Making my lunch at home might be a little more time-consuming, but I would certainly reap the benefits of a lower price point and even healthier (and probably tastier!) lunches. As for the bank fees – I guess I’ll just have to suck it up and spend the extra five minutes to actually find my bank’s ATMs. I have a smartphone – I’m sure there’s an app for that.

I certainly don’t think I should have to forego all of life’s little pleasures in favour of a strict and unyielding need to save, but maybe there’s a way to enjoy all of my little luxuries in a more cost effective manner.

Living February 13, 2014

Personal finances: Is your budget right for you?

Corporate budgeting in itself is a complex but widely understood concept. The goal is clear and usually easily defined, if not easily achieved: make more money. For me, the practice of sitting down and working out a corporate budget is standard and non-negotiable. This is business, and in business you sit down and draft a plan. Review your fixed costs, control the variable expenses, mitigate the risks, align the budget with the corporate strategy, and maximize profit. It’s been an interesting shift for me to apply this same formality with the way I budget in my personal life, but a shift that has definitely paid off in helping me to have a better grasp of my personal finances and a more accurate view of how and when I’ll achieve my personal goals.

Fixed costs

My fixed costs are often beyond my control: mortgage, home insurance, auto insurance, life insurance, travel costs, etc. They are usually the biggest part of my budget and usually the most necessary and uncompromising.

Variable expenses

My variable expenses I have more control over. Things like my Internet and phone expenses provide opportunities to review current plans and research new offers from competing companies. I make it a habit to review this annually (or in some cases, as contracts come to the end of their term) to see where I can get the most for my dollar. I’ve found on occasion that it’s even works out in my interest to cancel a contract and pay the penalty fee in favour of a greater discounted rate from another source. Take a real look at the numbers and see how they balance out.

Highly variable expenses

Highly variable costs of course vary for me by the season, but are often where I slip up in practicing effective management. Movies, concerts, eating out and ordering in can all add up. Wedding gifts were my vice this past summer and Christmas gifts will probably be my vice in the coming winter. And of course, anyone who knows me knows my weakness for online shopping, handbags and shoes. Personal care is also a very important part of my routine, and even though it’s among the first things that women will cut out in the event of a budget crisis, I’d say it’s necessary in presenting yourself and representing your business. Proper grooming is essential and personal image does count.

Mitigating risks

Mitigating risks has also been an interesting concept to apply to my personal life. My sister and I often joke that in this context, it probably has more to do with people than with market shifts and potential competitors. Bottom line is that every risk should have a contingency plan, no matter how unlikely the risk appears. Do you have a sibling, parent, close friend or family member who is likely to default on their rent payment and ask you for a bail out? Decide whether this is critical personnel that should be subtracted or whether you should establish a contingency fund to cover unexpected expenses. Are you sensing another impending breakup between your best friend and her significant other for the fourth time this month? Build extra time into your schedule for the “you don’t need him anyway” late-night movie marathon and the subsequent “I’m so glad you guys are back together” brunch.

Lifestyle alignment

Above all, I make sure that my personal budget aligns with my lifestyle. My budget is realistic for me, and what makes sense for me or for you might not make sense for others. I budget for my yoga classes because that is an essential part of my life. I make sure my budget and my life are tied together by goals that are important to me, whether it’s dealing with acquisitions, personal health, or just enjoying where I am in life. All in all, it’s become my personal strategy for defining where I am and deciding where I’m going.

Politics November 8, 2013

Rob Ford’s billion dollar lie

Budget numbers:

City of Toronto budget summary 2009.

City of Toronto budget summary 2010.

City of Toronto budget summary 2011.

City of Toronto budget summary 2012.

City of Toronto budget summary 2013.

The #BillionDollarLie

At this point we all know that Rob Ford lied about smoking crack, but what about the bigger lie that he has been perpetuating for the better part of the summer?

The facts are in plain numbers within the City of Toronto’s budget summaries – not only did Rob Ford have a 1.548 billion dollar spending increase since he became mayor, the city budget ballooned 1.458 billion dollars this year alone. How did Ford manage to save a billion while spending went up a billion and a half?

Rob Ford was elected on his mandate of saving taxpayers money. We can see that his personal life has greatly overtaken his work at City Hall, and his lying doesn’t seem to be stuck to his personal life. Steadfast Ford supporters be warned: the one thing you thought you could count on him to do, he can’t.

Check out the numbers from the City’s budget summaries above and share out the #BillionDollarLie infographic.

budget