Kristina Tahnyak, Author at Dinks Finance

About Kristina Tahnyak

Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.

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Why You Should Always Buy Insurance

Posted on October 19, 2015 - 5:00 am by Kristina Tahnyak 1

buying insurance, insurance claim, insurance coverage

I know a lot of people think buying insurance is for suckers because so often we pay premiums and very rarely cash in on the benefits. I am not one of those people. Whenever I hear people say they hate having insurance because they don’t reap the rewards I always tell them “Be thankful you’ve never needed to use your insurance.”

Buying insurance, whether it be travel, life, house or car, helps protect us in case an unforeseen event happens. If you never have to call your insurance company to cash in on an emergency then consider yourself lucky.

I am one of those people who is grateful that insurance exists. I wouldn’t say I have the worst luck in the world, but there have been a handful of times in my life when I was extremely happy I had insurance.

Our rental car was broken in to.

Remember back in July when our car rental was broken in to and all our Best Buy purchases stolen? Well we just – yes in October – received the $256 refund for the cost of the damage to the rental car and the $310 for all the goods that were stolen. It took a long time for the claim to be processed but I’m glad we didn’t have to pay the $566 out of pocket.

This is a lesson learned to always pay for a car rental with a credit card that has insurance coverage or pay the extra money and take the rental company’s insurance.

Our basement flooded.

There is nothing worse than coming home to a basement full of water. Not only are all your personal belongings destroyed, but so is your living space. Our basement had over $10,000 in damage and never would we ever been able to pay for that out of pocket without going in to debt. Once again thank goodness for insurance.

I am sure we weren’t refunded for everything because when you’re in a moment of distress (like dealing with the loss of half your home) you can’t think clearly. The insurance adjudicator suggested that we regularly take photos and videos of our belongings for “next time”. Of course we hope there won’t be a next time, but you just never know what life has planned.

When our family car was stolen.

One day Nick and I came outside to load boxes into our car and low and behold our car was gone. To make a long story short it wasn’t stolen, it was towed and improperly logged then moved to a storage parking lot without a trace. However we didn’t know that.

We immediately called our insurance company and they started the claim. If our car was not recovered within 30 days we would have received a brand new car. At this particular moment I was extremely glad I paid a little extra money for new car replacement insurance instead of just getting the current market value for the car.

We had a Honda Civic and at that time the outstanding loan was more than the car was worth so if we had taken basic car insurance we would have lost our car and still had a loan to pay. Instead someone figured out where our car was and on the 29th day we picked it up from the impound lot.

Have you ever filed an insurance claim?

How to Save Money on Groceries This Week

Posted on October 16, 2015 - 5:00 am by Kristina Tahnyak

save money on groceries, grocery shopping, saving on groceries

We all have to do it. We make a list and head out to the grocery store every week. If you’re like me you hate wasting money, but unfortunately food is the number one place Nick and I spend (and sometimes waste) money.

Over the years we have definitely cut down our grocery bill substantially. We currently spend $400-$500 a month on groceries for two people. How does that compare to what you spend? I’d love to know if we’re in the average – or above and below it.

Our grocery savings have been a combination of becoming more price aware meaning we actively buy items that are on sale and letting go of more expensive items such as steak, snacks and sweets. Yes we are living without some items we love, but we aren’t hungry. We still buy our favorite items, but only when they’re on sale.

How do you save money on groceries?

Set a weekly budget

I know this seems like standard advice, but setting a budget is only one part of saving money at the grocery store. Sticking to your budget is the second half of the equation. Every week when Nick and I make our grocery list on his app we also include the price we expect to pay for each item. This helps us micro-manage our budget per item and stay on budget. Here’s a list of popular grocery list apps.

Eat before you leave the house

Have you ever bought an item because you felt like eating it while you were at the grocery store but then the craving passes once you get home. I know I have. This usually happens if I go to the grocery store when I’m hungry because when I’m hungry I’ll eat anything. However this is a huge waste of money because the item just ends up sitting in the cupboard until it expires and we throw it in the garbage. I’ve learned to only shop for groceries on a full belly.

Use multi-purpose ingredients

This is my favorite way to save money. I like to buy ingredients that we can use for more than one meal because that way we can stretch out our weekly budget. If I buy green peppers (cheaper than yellow or red) and onions we can use them in stir fry with noodles, as pasta primavera or as a fajita mix. It’s multiple meals with the same ingredients and that helps save money.

Plan easy to cook meals

I don’t know about you, but if cooking seems like too much work I avoid it like the plague. I like the idea of a multi-course meal set on the table, but the reality is Nick and I just don’t have time to do that. Although one of our goals next year will be to learn to cook and make time to do it a few nights a week. When you plan easy to cook meals like Rachael Ray’s 30 Minute Meals you can be sure you’re eating healthy home cooked meals without taking up too much of your time.

3 Signs It’s Too Early to Discuss Money in Your Relationship

Posted on October 15, 2015 - 5:00 am by Kristina Tahnyak 1

money & relationships, couples finances, couples advice

Money in a relationship can be a hinder or a helper. It’s the one thing that every relationship has, but not something that everyone talks about. Why is that? If we all have money in common why can’t we talk about it?

I don’t think money should be a faux pas in relationships, it should be a topic that’s discussed openly – just not too early. Talking about money too early in your relationship can definitely be off-putting. However at the same time you don’t want to wait too long to have “the talk” to ensure there are no surprises. The key is to find a balance.

There can be nothing worse than having a lot of time invested in a relationship and finding out your sweetheart is terrible with money. If you decide to take the next step and move in together or get married your honey’s money troubles could become your financial woes. I’m sure we don’t want that.

On the first date

This is definitely not the time or place to talk about money. You will naturally learn a little bit about your date’s money habits based on the venue they choose and how they react when the check comes. However it’s not the time to have a long discussion about money goals, spending habits and how to split costs. Let some time pass and some of those things will work themselves out. Once you are more comfortable with each other as the relationship moves along you can bring up money.

You split all expenses evenly

This is a sign that you’re not ready to have the money conversation yet. If you and your date continue to split all expenses evenly you may not yet be ready to take your relationship to the next level. It’s O.K. because there isn’t a set time in the relationship handbook that says every couple must talk about money by a set date. So take your time and let your relationship and money progress naturally.

All payments are made separately

The reality is that couples may not need to have the money talk in their relationship. Maybe they decide to keep all expenses separate and that’s what works in their relationship. There’s nothing wrong with that. I say if it’s not broke then don’t fix it. Bringing up the subject of money in a relationship that doesn’t have any problems could create unnecessary stress.

Nick and I managed our money separately for years and I honestly believe it helped our relationship grow stronger. If you completely trust someone to contribute their part to monthly expenses without having a hand in it then that’s true trust and love.

The Simple Dollar says finding the right time to talk about money is a key turning point in any relationship. But what if that moment never comes? Couples can decide to manage their own money, pay expenses separately and set their own goals. Of course a conversation has to happen at some level as couples grow together and decide to buy a home and take vacations etc. But that doesn’t mean joint accounts need to be opened and money needs to be merged.

When did you first talk about money in your relationship?

3 Good Reasons Why You Don’t Need a Car

Posted on October 14, 2015 - 5:00 am by Kristina Tahnyak 3

buying a car, not needing a car, reasons to not have a car

Buying a car is a big expense and owning a car can be extremely convenient. If you’re thinking of buying a car you need to ask yourself if the purchase price and ongoing maintenance costs are worth the amount of convenience it will bring.

My friend Diane is a perfect example of someone who pays to have a car, but absolutely doesn’t need to. She lives in the middle of downtown so she has plenty of amenities around both her home and office. Diane lives 10 blocks from our office building and she drives to and from work every day. She pays a monthly parking fee both at her condo and at our office. Does that make any sense?

Here are three excuses people use to buy and keep their car:

I have kids. Of course it’s a lot more convenient to tote your toddler around in a car than it is on public transportation. It’s also a lot easier to have your own transportation when your kids get older and they need to go to soccer practice or dance rehearsal. However there are other options. Parents can set up a car pool or choose activities for their kids that are within walking distance.

We need to buy groceries. Whenever Nick and I rent a car we make it a point to make a trip to the grocery store. It is definitely convenient, but we get by just fine without it. Every Friday we pay $3 to get our groceries delivered and that’s a lot less expensive than a monthly car payment.

I have to get to work. It’s true that we all need to get to work every morning, but I’m sure you can take public transportation. I walk 35 minutes to and from work every day. The only months I pay for a public transpiration pass are January and February because it’s just too cold up here in Canada to walk during the winter.

I don’t actually like taking public transportation and I enjoy the time outside getting fresh air. It takes me a bit more time to get to work in the morning, because I could do it in 15 minutes on public transportation, but I choose not to. Driving in traffic is definitely out of the question because that’s a waste of both time and money.

The expenses of owning a car can quickly add up each month and now may be a good time to ask yourself if the costs are really worth the convenience.

Try it for a week. Leave your car parked at home and walk or take public transportation to work. Think of all the money you’re saving on parking, gas, car washes and other expenses during that week. Isn’t that a nice chunk of savings? Now think about not having a car insurance payment or a monthly car payment at all. What would you rather do with that money?

This One Thing Will Make You Debt Free

Posted on October 12, 2015 - 5:00 am by Kristina Tahnyak 1

debt freedom, get out of debt, financial freedom

Debt sucks. That’s an understatement. Being in debt is so much more than just a financial burden; it’s also emotional turmoil and mentally stressful. Whether we want to admit it or not money affects everything we do and it absolutely controls everything around us. That statement doesn’t make me shallow or superficial, it’s just the truth.

If you want to live in a nice home you need to be able to pay for it, if you want to travel to exotic destinations you need to save up the cash to do so. Unfortunately what happens more often than not is people want to do things they can’t afford and therefore they end up using credit to pay for an extravagant lifestyle. If you can’t afford to pay off your credit card bills every month you end up in debt and that’s a problem.

That’s how I got into debt in the past and after hitting rock bottom I decided to change my habits and turn my life around. It wasn’t easy, but I did it. I made several changes in my spending habits and mentality towards money and it eventually helped me become debt free. Here’s how I did it.

Get a second income.

This was absolutely the one thing that helped me become debt free. I got a part time job working in a retail store. During weekends and one night a week after I finished working at the bank I would go the mall and sell clothes. Then six months later I started freelancing; with one full time job and two part time jobs I saw my debt get paid off real quick.

Automatic transfers will save your life.

OF course as a former spender there was always the temptation to go shopping with all my extra income. I knew if the money stayed in my bank account I would spend it so I set up automatic payments from my checking account to my credit cards every month. If I didn’t see it, I wouldn’t think about it and if I didn’t think about it I wouldn’t spend it.

Lower expenses.

Fewer expenses means more extra money at the end of the money that you can put towards your debt. It’s the financial equivalent of burning the candle at both ends. If you work a second (or third) job to earn extra income to put towards your debt AND you lower your expenses to free up extra money each month you are attacking your debt twice as much. It’s a win-win.

Of course this means living without some of the things you love, but it’s worth it. Just ask yourself do you love your little luxuries more than you hate your debt? The answer is probably no.

The truth is debt can accumulate very easily and it can be much harder to pay off. Use these three tips to tackle your debt, pay off your credit cards and get on your way to becoming debt free.

How to Have Fun on Your Next Business Trip

Posted on October 9, 2015 - 5:00 am by Kristina Tahnyak

business trip, business advice, business traveling

Travelling for business can be a great perk offered by employers. It gives employees the chance to get out of the office, make new connections in the company and go to places they may otherwise never have the opportunity to visit.

I know some people – especially those who travel a lot – feel that business travelling is more work than being in the office and in some cases that’s true. The key to enjoying business travel is to add in a little time for personal stuff. Even though the main purpose of your trip is business there’s no reason you can’t add in a little pleasure too.

Here are three ways to make the most of your next business trip:

Add in an extra day

Arriving a day early or staying a day later is a great way to gear up before or decompress after a business trip. While you’re working you probably don’t have a lot of time to explore the city. Giving yourself an extra day to spend time sight-seeing and exploring a new neighborhood can give your business trip a personal touch.

It’s always a good idea to check with your company travel policy to ensure you can add the extra day, but in all honesty it may be necessary. If your meeting/presentation is early in the morning you may have no choice but to travel the day before, so book an earlier flight and take the day to enjoy your new temporary surroundings.

Bring your spouse

Having your spouse by your side during all or a part of your business trip can feel like home away from home. Travelling for business can definietly be stressful because you have to be on your game much more than just 9 to 5. However relaxing with your spouse at night or spending an evening on the town can make the trip more fun. Downtime in airports during connections and layovers can also be extremely boring, having your spouse by your side can make time go by a lot faster.

Do something out of the ordinary

I admit that I have a routine when I travel for business. I like to get takeout food and eat it in bed in my pyjamas, something I never do at home. However after spending a lot of time away from home in hotel rooms I quickly started getting bored. I told myself that from now on every single trip I take I will do something that I never do – outside of the hotel room.

When the facilities are available I make a point to sit in the sauna for 30 minutes. Steam rooms are good for the skin, clear the pores and it’s extremely relaxing. These are all things I need when I’m on the road travelling for business. It’s free, it doesn’t cost my company (or me) any extra money and it gets me out of the hotel room.

What’s your favorite thing to do when travelling for business?

4 Reasons to Buy Life Insurance in Your 20s

Posted on October 8, 2015 - 5:00 am by Kristina Tahnyak 4

life insurance tips, buying life insurance, insurance advice

Some people think that buying life insurance is only for old people and those who are sick or nearing retirement. When in fact the complete opposite is true. Life Insurance proceeds can benefit people of all ages and in fact maybe more so the younger generations because they haven’t had the time to build up their wealth.

There are several different types of life insurance products available such as term life insurance and universal life insurance. The type of a product that you need is specific to your needs and financial ability to pay the premiums, however it’s definitely a financial product that everyone needs just like saving for retirement.

Here are four good reasons why you need life insurance:

You need to pay taxes

When someone passes away they need to file a final tax return and if there is an outstanding estate in most cases there may also be ongoing taxes. Life insurance isn’t just a tool to help protect your family members and spouse if something happens to you. It’s actually a helpful financial tool that can lower the financial burden for your family during their time of grief.

Final arrangements have to be made
I know it seems to weird to think about this while you’re in your 20s, but just for a second think about what would happen if you passed away. Who would take care of the final arrangements? According to FuneralTips.com the average funeral costs between $7,000 and $10,000. Now ask yourself if your spouse or your family members have that kind of cash laying around. The answer for most of us is probably no.

You have outstanding debt

In your 20s your life is just starting out and that means you may have debt in the form of personal loans, student loans and credit cards. If something happens to you the debt is not automatically forgiven. It’s quite a burden to ask your family members to pay off any outstanding debts that may be owed. So the next time you apply for a loan or a credit card and your personal banker asks if you want credit protection in the form of life insurance think twice before you say no.
Think about your mortgage

As a financial planner my job is to make sure that clients have the savings and protection they need to be financially stable. When I approve a mortgage application I always offer life insurance to clients so that their family and their home are protected in case of an untimely event. Sadly more often than not clients do not take insurance on their most valuable asset because they feel that they can’t afford the extra cost. I say sadly because that statement couldn’t be farther from the truth.

If you and your spouse were approved together with your joint incomes for a mortgage loan ask yourself if your spouse would be able to afford the mortgage on their own. The answer is probably no. Life insurance can help cover the cost of the outstanding mortgage balance if one of you should pass away.

It’s always better to protect your loved ones from any further burden, that’s why life insurance is a good idea even if you’re young.

Venus and Mars and Our Money

Posted on October 7, 2015 - 5:00 am by Kristina Tahnyak 4

men and women, venus and mars, money advice, money tips

Do you notice a difference between men and women and money? I know I do. I think men and women are very different when it comes to almost every aspect of money from saving to spending and investing to splurging. The question is, how can we live happily ever after if our money habits are so different?

Different management styles

It’s very possible that you and your spouse have similar views on money, but manage your cash very differently. Allow me to explain. Maybe you both agree that saving for retirement should be a priority, but your spouse is a high risk investor whereas you are risk adverse.

Maybe you and your sweetheart both agree that it’s O.K. to splurge every now and then but you want to spend the money on travelling and your spouse wants to go to a concert. That right there is the difference between men and women when it comes to money.

Set priorities together

Problems arise in a relationship, not because a couple manages their money differently as individuals but when they let the differences affect the marriage. I always say that it doesn’t matter how you make your cash because money can all be spent in the same places. This is especially true for relationship goals.

If you set financial priorities together it doesn’t matter how you achieve your goal, as long as you do it together. If you see your spouse come home with something that wasn’t planned don’t be upset they spent the money, but check in on your goals to make sure you’re still on the same track. Who knows, maybe they had some extra cash that month and decided to buy a little treat. Spending on them self doesn’t always equal neglecting joint goals.

How to overcome conflict

My best advice as a girlfriend and as a financial planner on how to overcome money conflicts in a relationship is to communicate. So many arguments in life and in relationships arise due to lack of communication. If you plan on spending money or want to add a new goal to your list of priorities just talk about it with your spouse. It may be awkward and uncomfortable, but it doesn’t have to be.

Keep in mind that money only becomes a problem in our relationships if we let it. When we do see stress start to arise in a couple it’s best to talk about it as soon as possible because otherwise a small financial issue can snowball into a big financial problem.

Sometimes goals – both personal, joint and financial – need to be adjusted. Just think about your goals this year and ask yourself, have they been adjusted? Are you on track? The answer may be yes. So now ask yourself this, if you can adjust your personal goals why can’t you adjust your joint couples goals?

A part of being a couple is learning to compromise so talk about it and don’t let money be a problem in your relationship.

4 Investment Options for Your Money

Posted on October 5, 2015 - 5:00 am by Kristina Tahnyak 2

investment options, investment tips, investing advice

If you have a lump sum of cash to invest you may be searching the web and visiting your bank’s website to find the best investment option for your money. Investing is so personal that there isn’t a one size fits all answer to “How should I invest my money?”

However there is an answer to “Which is the best investment for me?” The only way to find the best investment for you and your money is to research your options and match your investment objectives to the investment goals.

Here is an overview of four different investment options:

Cold hard cash

I am not sure this can actually qualify as an investment, but we’re going to discuss it anyways because it’s an option for your money and one that a lot of people use. Cash is a good place to park your money for the short term.

Cash investments include savings accounts and high interest savings accounts. They’re great if you may need access to your money because you can withdraw at any time, however they don’t pay a lot of interest – or any at all.

Bonds

Fixed income investments such as bonds are a great first investment if you’re new to the whole thing. They work like an investment contract meaning you give the bank (or investment firm) a fixed amount of money and in exchange they give you a guaranteed rate of return – usually in the form of interest.

You can purchase individual bonds directly or a portfolio of bonds through a mutual fund. It’s important to remember that interest income is taxed at the highest possible rate. So if you want security and a small rate of return bonds may be the investment for you, but you will have to pay tax on all your profit.

Domestic equities

Equities such as mutual funds, ETFs and stocks are higher risk investments that also offer a higher potential rate of return. They invest in the stocks of companies whose value fluctuates daily with the market. This is more than some people can handle so investing in equities is not for everyone.

With that being said there are different levels of risk that come with different investments. For example, buying stock in a well known Fortune 500 company or a Blue Chip company who has a proven history of being profitable is a lot less risky than buying a stock in a new company that is coming to market with an Initial Price Offering (IPO). Although past performance is not an indication of future profit it will give you an idea of how the stock price has fluctuated in the past.

Foreign investments

If you want to invest in other countries and take the exchange rate risk then foreign investments may be the right investment option for your money. Foreign investments can be purchased as equities or bonds and of course the risk with each is as discussed above.

The truth is the key to finding the perfect investment for your money is to find balance in a well diversified portfolio which can include all of the investment options above.

The Pros and Cons of Buying Bonds

Posted on October 2, 2015 - 5:00 am by Kristina Tahnyak

buying bonds, investment tips, stock market options

If you’re looking to invest your money somewhere relatively low risk and still want to earn some type of rate of return then bonds may be just what you need. According to Investopedia a bond is described as:

“A debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate. Bonds are used by companies, municipalities, states and sovereign governments to raise money and finance a variety of projects and activities. Owners of bonds are debt holders, or creditors, of the issuer.”

Does that sound like the type of investment that you want to add to your portfolio? The truth is a well balanced portfolio includes both equities as well as fixed income investments and a bond may just be the type of low risk investment you want to buy.

However just like most money decisions buying bonds may not be the right choice for everyone as there are both pros and cons to investing in debt securities.

The pros of buying bonds:

Adds security to your portfolio. Low risk investments such as bonds offer a sense of security as the market fluctuates. When you buy a bond it is usually for a fixed term with a guaranteed interest rate i.e. a 10 year Federal Bond at 2.% interest rates. This type of investment leaves very little room for prices to change in times of market turmoil.

It can help minimize risk through diversification. If your entire investment portfolio is invested in high risk equities and stocks you can experience major losses when the market drops. Having a well balanced portfolio that is diversified among domestic and foreign investments as well as equities and fixed income helps minimize risk because you aren’t putting all your eggs in one basket – so to speak.

The cons of buying bonds:

Bonds pay interest. It’s always nice to have a guaranteed rate of return when investing in bonds, however the flip side to that advantage is that the rate of return is paid as interest and that can be a major disadvantage come tax time.

Of the four types of investment returns (Return on Capital, Capital Gains, Dividends and Interest) interest income is the least tax advantageous because it is fully taxed. Every single penny you earn in interest is 100% taxable on your personal tax return whereas other types of rates of return offer tax breaks.

They offer little flexibility. As mentioned a bond is purchased for a fixed amount of time at a guaranteed interest rate. If you need access to the money prior to the maturity date it can be very difficult to access. Bonds are usually not cashable prior to the maturity date which means if you buy a 10 year bond you may actually be stuck with it for 10 years.

Other fixed income investments such as short term t-bills and money market mutual funds offer more liquidity. Some bonds do offer a short (30 day) window every year on the anniversary date where the bond can be cashed. Before buying any type of investment make sure you get all the details before making the commitment.