Friday, October 21, 2022

"Part-timers need to think more like an entrepreneur"/ "Get a handle on your net worth"

Nov. 12, 2016 "Part-timers need to think more like an entrepreneur": Today I found this article by Garry Marr in the Edmonton Journal:


Here’s the secret to getting benefits in a world of part-time and contract employment: Buy your own plan. 

You’re going to need it. Nobody wants to hear that when they’re struggling to find a job or unsure where that next contract will come from, but it’s a reality in today’s economy.

Maybe it’s nothing new to millions of Canadians struggling under that type of employment situation, but it takes on an appearance of permanence when the federal finance minister tells you the situation won’t get any better.

In a speech in Niagara Falls, Ont., last weekend, Bill Morneau said Canadians need to be ready for “job churn” as the economy changes.

“We also need to think about, ‘How do we train and retrain people as they move from job to job to job?’ Because it’s going to happen. We have to accept that,” Morneau said.

The problem is few Canadians seem to be planning for that new economy, either by saving for gaps in pay or dealing with a major shortfall in medical and disability coverage that results from not having full-time employment and the corresponding benefits package.

“The days of having one pension plan or one benefit plan (for life) are long over,” said Clay Gillespie, a Vancouver-based financial adviser and managing director of Rogers Financial.

“If you’re contracting, you need to get your disability, your own life insurance, your own health insurance. You need to know whether to (insure) yourself (by buildings a savings fund) or go into a private plan.”

The self-employed have long dealt with these issues, but now they’re poised to go mainstream.

“You’re essentially running your own business, which means you need to take care of your benefits,” Gillespie said, adding that might even mean paying your own income taxes instead of getting them deducted at source. “It’s pretty important to know you have money at the end of the day to pay the government.”

Benefit packages are not an easy sell for Gillespie, who advises on them and does get a commission. 

A 40-year-old male seeking a 10-year term-life insurance policy for $150,000 would have to start paying $15.21 a month for coverage; to guarantee 50 per cent of a $75,000-a-year salary in the event of disability, payments would cost $141.16 a month.

A 40-year-old female making $75,000 per year would pay $12.39 for that life insurance and $201.88 for the disability package. Those figures are all based on a white-collar job with a 90-day waiting period before a claim can be made.

A medical plan, even the most basic one — covering just you for up to $5,000 of drugs annually with a 30-per-cent copayment on the first $750 and a dental plan with $750 maximum and copayments — would cost $65.70 per month. That plan would come with other benefits such as emergency travel.

“Listen, it’s more expensive than buying a benefit package (at a fulltime job),” Gillespie said, adding that the major advantage of a personal plan is it follows you from job to job because you control it. 

A disadvantage is your private health plan may have a maximum on drugs and the potential of some costly medical treatment means you need a different way to fund that, such as a critical care policy that pays a lump sum if you are diagnosed with a specific illness.

Benefits can easily be worth 10 per cent of your pay, more in the public sector, said Paul Sywuly, vice-president of innovation at Morneau Shepell, the company started by the finance minister’s father, which operates in the benefits and pension industry.

“There is definitely a trend to risk and responsibility transfer,” said Sywuly, whose company has started selling a benefits product for retirement to fill a void created by companies exiting that coverage.

Sywuly said he doubts many contract employees are buying their own benefits. He didn’t have numbers, but said it wouldn’t surprise him if less than five per cent had independent benefits. Few people seem to be saving or thinking about saving for a rainy day.

Consider the fact the Canadian Payroll Association (CPA) found 48 per cent of Canadians are living paycheque-to-paycheque — and that figure is made up of mostly full-time employees.

“This number is probably lower than it was in the general marketplace,” said Patrick Culhane, president of the CPA, adding that contract employment is on the rise.

His company sent out its survey to 5,600 people this year and found 87 per cent who took part were full-time workers, seven per cent part-time, three per cent contract, two per cent were students and one per cent unemployed. 

Seven years ago, 92 per cent of respondents were full-time, five per cent were part-time and two per cent were on contract.

Jeff Schwartz, executive director of Consolidated Credit Counselling, said the reality is most of this discussion is aimed at younger people and they need to start preparing.

“We want them to say early on in their career, ‘Hey this is one position, how am I going to prepare myself for the next position,’ ” he said. “You have to start saving and living within your means. Celebrate the fact you’re in the working world, but it’s not like you won the lottery.”

How do you prepare for this new world reality? Schwartz said it can take a long time to build up a nest egg based on what you’re earning and paying for benefits will only slow you down. 

“It means living more frugally, when you have to,” he said.




Jun. 5, 2017 "Get a handle on your net worth": Today I found this article by Gail Vaz-Oxlade in the Metro on Jan. 5, 2015:

Last year came and went faster than Usain Bolt. Whew! While a lot of people wrote and tweeted me to say they’re finally taking control of their money, I also expect some lived like there would be no tomorrow and are now looking at a hot, stinky pile of, um, mess that they now have to clean up.

If you just couldn’t figure out how to make your money work in 2014, consider this your opportunity for a new start. It’s time to take another kick at the can.

I’m a great one for making mistakes. I used to think I had to be perfect. Then I had kids and realized I’d never be perfect again, so I decided I’d better get used to just being pretty great.
I’m not afraid of making mistakes — or getting caught — anymore. Now I just say, “I’m sorry,” and move on to the next step, having learned from my mistakes.

Of course, learning from mistakes means first acknowledging what a big screw-up you’ve been. 

Have you found yourself running out of money between pays? 

Wondering why the debt just will not go away no matter how hard you try? 

Always seem to be in overdraft? 

Want things to be different this year?

Take a snapshot of where you are right now so you have a benchmark for measuring how you’re doing throughout the year. 

Say hello to your net worth, which is a look at what you own minus what you owe to see how much you realio, trulio, have got.

Fanatics do a net worth statement as often as every month. But you should have a life, so doing a net worth update every six months or so should suffice.

There are several net worth calculators on the web. If you want to use the one at gailvazoxlade.com, look under Resources for the Net Worth Statement.

Don’t try to skew the results in your favour. The point of the net worth statement is to give you a realistic picture of where you are now so you can measure your progress.

People routinely include their personal effects as an asset. Don’t. These aren’t very saleable and you’re just deluding yourself if you assign your things more value than you could ever realize from selling them. 

Ditto for collectibles unless you’re in the biz. If you do believe you have something of value, have it appraised. Don’t just guess.

One asset we like to push up the value on is our home. The house two blocks over just sold for $1.7 million? Jeez, that puts you in a pretty good place.

But just remember, Ms. Happy-I-Own, unless you’re planning to sell that home and move somewhere cheaper, those assets are going to be tied up for a long time. Don’t get over-enthusiastic about real estate values, particularly in an up market. Feeling smug to the point of not building other assets, say for retirement, isn’t the point of the net worth statement.

While the current value of your pension plan is an asset, it can be challenging putting a present-day value on that future income. So for your net worth statement, include the amount you could withdraw if you changed jobs.

On the liabilities side of the equation, don’t forget to include your

 overdraft (if you’re in it), 

buy-now-pay-later purchases on which you still owe money (even if it isn’t due yet), 

back taxes, 

money you’ve taken from your RRSP to buy a home or go to school, 

and (heaven forbid) pay-advance loans.

Having taken this snapshot, you’re going to use it as your guide for moving forward. 

As long as you’re paying down your debt and adding to your savings, your net worth will keep going in the right direction. 

Tracking your net worth will also help you see how you’re progressing toward your goals.

Trying to build up a down payment for a home? Want to take full advantage of the Canada Education Savings Grants for your kids? 

Setting a goal for what you want to accomplish will make it much more likely to happen. 

Using your net worth statement to track your progress keeps the goal front and centre in your decision making.

Owe more than you own? Don’t become disheartened. 

The point is to make a plan for changing what you’re doing so your next net worth update shows progress. 

Do nothing different and you can expect to be no further ahead the next time the calendar clicks over.




This week's theme is about saving money:


"'Here's how this woman saves $1K a month or more on groceries"/ "6 strategies to save on your next grocery bill"

Tracy's blog: "'Here's how this woman saves $1K a month or more on groceries"/ "6 strategies to save on your next grocery bill" (badcb.blogspot.com)


"We asked personal finance experts how to find 'hidden money' ASAP"/ "Smart financial goals to set while you're still young"

Tracy's blog: "We asked personal finance experts how to find 'hidden money' ASAP"/ "Smart financial goals to set while you're still young" (badcb.blogspot.com)



My week:


Oct. 14, 2022 CX building: I was sick the week before.  I didn't go to Samuel's joint birthday party with his friend.  I then feel good and I went to the party today.  There were 9 of us.  I was there from 6-10pm.

Sepp's Pizza: D and his little sister V bought pizza.  I ate a vegetarian and vegan pizza with red and orange spicy peppers and spinach.  It was a thin crust.  Average.



Quelf board game: I thought this was an average board game.  I didn't really like it:

"Quelf is the unpredictable party game that gives Random a new name!

Whether you're answering hilarious trivia, performing ridiculous stunts, or obeying silly rules, Quelf will inspire you to use your creativity, wit and sense of humor in ways you've never imagined.

As you move around the game board, as one of eight quirky characters, crazy things start to happen. Your friends start talking strangely. Your mom's face is wrapped in toilet paper. Your dad is acting like Dracula. And you are reciting a poem about your armpits.

Cards:
Stuntz - balancing acts, costume creations, daredevil moves, weird contraptions
Showbiz - mime, sing, tapdance, draw, do impressions, write poetry
Quizzle - mind-twisting trivia, nutty riddles, brain teasers
Rulez - rules you must follow: snort like a pig when you laugh, say everything twice, roll the dice with your elbows
Scatterbrainz - choose one of two topics and everyone gives answers until no one can think of a valid one ("Ways to get your leg out of a spring-loaded, steel bear trap" or "Brands of Lipstick")

Characters:
The Platypus
Mr. Lugnut
Super Ninja Monkey
The Dude
The Biscuit Farmer
Queen Spatula
Batbileg Chinzorig
Mrs. Pickle Feather"



Hamsterolle: I didn't play this, but I saw others play it.  This was average.

"Imagine a hamster's exercise wheel, divided into numerous segments and separated by low fences (built obviously for a National Hunt racing hamster).

In Hamsterrolle, the players each receive seven wooden pieces, which they aim to place (one per person per turn) within the wheel without any pieces falling out. Any pieces dislodged are taken back as a penalty, and the first to get rid of her pieces wins."


Oct. 15, 2022 M's house party: There were 5 of us.  M, A, D, and his sister V and me.  I was there from 6pm- 12am.

Facebook: I used M's computer so I can upload 119 photos from my digital camera to Facebook.  

The Man from Toronto: They picked this movie.  I have never heard of it and I wouldn't have picked this for myself.  

"The world's deadliest assassin and New York's biggest screw-up are mistaken for each other at an Airbnb rental."


My opinion: I wasn't paying attention to the movie much in the first half because I was on the computer posting pictures.  When the action came on, I watched the last half of it.

I would say this movie was average and solid.  6 out of 10.  I will write more about this in another post.

Tarot and oracle cards: M then read our future and life.  She has 12 decks.  She read the meaning of the cards in the book and added her explanation.


Oct. 18, 2022 Band candy: Around 7 pm, the doorbell rang.  I thought: "I hope they're selling candy."  It was an East Indian boy wearing glasses and a hoodie selling chocolate almond candy.  It was $3 for a box.

Tracy: Is this for school?
Boy: Yeah, it was for my Ottewell band camp trip.
Tracy: I went to that jr. high school.  What instrument do you play?
Boy: Clarient.  You?
Tracy: I don't play an instrument, I just went to the school.
I bought a box.


"Taxi scammers are conning Torontonians again. This woman wants you to know the warning signs": Today I found this article by Vanessa Balintec on CBC: 

Saja Kilani didn't think twice when she was stopped on the street Sunday by a young boy asking for help paying his cab fare.

She says he told her the driver only took card payments, but he only had cash. If she paid the driver, the boy told her, he would pay her back.

"My first thought is... if someone is in a desperate situation, I would want someone to help me in that situation," said Kilani, who's from Toronto.

Despite her willingness to help, red flags kept popping up. 

First, the driver asked for her card, and when she handed it over, the boy tried to get her attention by bombarding her with questions. 

And when she put in her PIN and reached to take her card back, the driver snatched the machine away and returned a card that didn't have her name. 

That's when she realized what happened, got her actual card back, and cancelled it soon after. But not everyone is so lucky.

"I know it's hard to admit that I've fallen for a scam, but I'd rather admit that and have people not go through it," said Kilani.

"If I had seen this online before… I would have avoided it."

That's what led Kilani to post her experience on TikTok. In just one day, she got more than 800,000 views, 75,000 likes and over 2,000 comments on her post, which includes part of her encounter with the alleged scammer.

It even caught the attention of Meaghan Onorato, who put up a similar post that went viral in May on the same platform after getting scammed in a similar way. In her case, she lost $1,400 before her bank refunded it.

"I'm not surprised, but it's really saddening, I think, to hear that it's still happening to people," said Onorato.

Kilani and Onorato fell victim to a textbook taxi cab scam — when drivers, often with an accomplices, steal customers' card information by distracting them then swapping it with a different card. While this type of scam isn't new, Toronto police Const. Marco Ricciardi says the service has seen a "pretty significant" increase, and anyone could be a victim.

"You have to be aware that if someone is saying that their taxi cab is not accepting cash, that's the first flag," said Ricciardi.

Ricciardi says people should keep an eye out for cabbies who say they don't take cash, since all licensed taxi companies take cash as payment. And if you fall victim to this scam, make sure to report it to your bank and the police, he says.

But if you find yourself questioning if a cab is legit?

"Just walk away, because it's going to save you a lot of heartache and a lot of money," said Ricciardi. 

Taxi scammers are conning Torontonians again. This woman wants you to know the warning signs | CBC News


Oct. 19, 2022 "Nanny Claims She Was Fired After Catching The Dad Cheating On Wife With His Sister": Today I found this article by Megan Quinn.  Jules Green tells the mother on the phone:

Upon delivering the news to the mother, Green claims she was silent until she asked why Green was in the laundry room since she didn’t remember giving the nanny “clearance” to go there.

After Green explained that she placed the dirty laundry downstairs to keep the baby from getting into it and to help the housekeeper, the mother told her she was fired since she “clearly can’t follow rules.”

When Green left her key with the house manager, she advised her that there were “weird” activities going on within the family.

The housekeeper kept a straight face while reminding Green of her NDA.


“Mega-rich people are so bizarre,” one user wrote.

“Dirty laundry, the humor of it, even the baby knows,” another user pointed out. 

Others believed that the mother already knew of her husband’s actions judging by her response.

“She knew already definitely and didn’t wanna relive someone telling her AGAIN and decided to fire you,” one user suggested.

“Related to rich people so I know this act very well. They knew, they get aggressive cuz their veil of glamour’s been pulled off. Then they remove you,” another user shared. 

Nanny Claims She Was Fired After Catching The Dad Cheating On Wife With His Sister (msn.com)


My opinion: The mother seemed to know or suspect her husband was cheating on her.


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