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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How to Plan to go Back to School as an Adult

Posted on September 30, 2015 - 5:00 am by Kristina Tahnyak 2

back to school, higher education, pursuing education

School isn’t just for kids. The Fall semester is underway at college campuses across the country and student bodies are becoming more diversified than ever. The days of seeing teenagers in their pyjama pants rushing to class with bed heads are over. Now college campuses are filled with young professionals in suits, stay at home moms looking to make a career change and experienced adults seeking a second chance.

According to U.S. News the average age of a college student is over 25 years old. This can be for many reasons such as high school students taking time off after graduation, young adults enlisting in the military, teenagers delaying college to save money for tuition as well as older students deciding to return to school to pursue a higher education. U.S. News says “having classmates who reflect their age, interests and experiences can help ease the transition from the ‘real world’ to the world of an undergraduate student.”

The decision to go back to school as an adult is not always an easy one. In theory the older you are the more responsibilities you have – both personally and financially. If you’re thinking of making a career change or wanting to learn a skill here are some tips to help you get ready to go back to school.

Think about how tuition will affect your income

The average cost of a college education is over $59,000 per year according to Forbes. That’s a major financial commitment, especially for an adult who may also have a mortgage payment and a family to provide for.

Before applying to your preferred college think about the fiscal impact going back to school as an adult will have on your lifestyle. Of course there are student bursaries and scholarships to help ease the costs, but just remember that those are never guaranteed. Forbes also notes that people with a four year college degree earn more than the average American salary.

Check the night class schedule

If you fear going back to school because it will require time away from your job which may result in less of a paycheck then consider taking night classes. Most colleges have a continuing education department and offer evening or weekend classes to accommodate students with full time jobs.

Getting an education is always a good thing. Talk to your employer about your plans as they may offer alternative work arrangements as well as a tuition reimbursement program. Who knows, maybe your subject of choice is exactly what your employer is looking for in their next manager.

Choose a program that you’re passionate about

There is no point in going back to school to study something you aren’t passionate about. The last thing you probably want to do is spend your evenings and weekends learning about a boring subject that you have no interest in.

It’s important to pick a major that will help advance your career, offer a more lucrative salary and open new doors of opportunity, but it’s also important that you actually like what you study. After all you’ll probably be doing it for the rest of your life.

Did you go back to school as an adult? Tell us about it.

The Pros and Cons of Buying Stocks

Posted on September 25, 2015 - 5:15 am by Kristina Tahnyak

buying stocks, stock market, investment tips

If you’re a novice investor or a rookie thinking of opening your first account you may be comparing investment options. There are a lot of choices when it comes to where you can place your money such as mutual funds, bonds, real estate and stocks. Each investment option has their own pros and cons depending on your goals for the money as well as your tolerance for risk.

The pros of investing in stocks

Stocks allow you to pin point one specific investment. When you buy a company’s stock you are buying a piece of that company and therefore investing in their future growth. Good stocks to buy for your first investment include large, well known companies that have a history of growth (i.e. Fortune 500 companies or Blue Chip Stocks) as well as companies you like.

If you are buying stocks for the first time a good place to start is to buy the stock of a company that you like or a product you use on a regular basis. If your computer, MP3 player and tablet are all made by Apple then maybe you should buy their stock.

If you drink Diet Coke everyday then maybe a good first investment is buying stock in The Coca Cola Company. The idea behind this is if you like it others will too and therefore the company will grow a.k.a. be profitable.

Stocks can be profitable in two ways: the unit price can grow and they can pay a dividend. If you buy a stock at $50 per unit and sell it at $75 per unit you just made a $25 per unit profit and in the eyes of the IRS that is called a capital gain. The IRS requires all capital gains to be declared on your annual income taxes and at the same time capital losses can also be claimed.

Dividends are paid out to investors usually on a monthly or annual basis. When the value of a company increase so does the stock price. When the company makes a profit they pay it out to their stock holders in the form of a dividend. It is stated as a profit per unit. As an example, according to NASDAQ JP Morgan Chase paid out $0.44 per stock last quarter.

The cons of buying stocks

Just as buying stock lets you invest in the company of your choice, it is only investing in one company. As a new investor you definitely don’t want to put all your eggs in one basket when it comes to investing.

When you buy stock you are very vulnerable to stock market fluctuations. If the market drops so will the value of your stock price and overall investment. If you invest $5,000 you have to be comfortable investing for the long term and weathering the storm of fluctuations in the short term.

Stocks can be a great investment option for a well balanced portfolio. The two things to remember when buying stocks are to ignore short term fluctuations if you are investing for the long term and don’t try and time the market by buying and selling on a regular basis. This can lead to losses and lots of fees in the form of trading charges.

Money Mistakes You Make in Your 20s

Posted on September 24, 2015 - 5:14 am by Kristina Tahnyak

money mistakes, financial tips, financial advice

Some people say that your 20s is when you should learn good financial behaviors because it will set the tone for the rest of your life. Although this is true your 20s are also the time when it’s O.K. to make mistakes with your money.

Making money mistakes in your 20s is obviously not ideal but it’s better than making them in your 40s because you have time to recover in your 20s. Sometimes people learn the hard way and that’s O.K. too; as long as you do learn, correct the mistake and change your behavior so you don’t repeatedly make the same mistakes over and over again.

Another reason why making money mistakes in your 20s is not so bad is because if you are single in your 20s there is less pressure to quickly overcome the financial difficulties than if you were older with a family depending on you and mortgage payments to make.

With all that being said the ideal situation is to avoid making financial mistakes all together. Yes it’s better to mistakes younger than older, but in a perfect world you wouldn’t make them at all.

Here are four financial missteps to avoid when you’re young:

Accepting credit card offers with no benefits

When you’re young and have a new credit history the credit card offers may be arriving in the mail on a weekly basis. Avoid temptation and don’t accept every single offer you get, only accept the best offer. When you have multiple credit cards you’ll be tempted to spend and that can lead to thousands of dollars in debt.

Money Crashers says to compare credit card reward offers and pick the best one for your needs. Don’t accept a credit card with travel rewards if cash back offers are more important to you.

Forgetting to buy home insurance

Could you imagine moving into your new home and having all your personal belongings damaged in a flood or fire?! It would absolutely be awful. If you saved your entire life to buy your dream home how on earth would you be able to afford to replace all your items. The answer is you probably can’t.

Buying home owners or tenants insurance is one of the smartest financial decisions you’ll ever make. I know some people think that insurance premiums are a waste of money because it’s something you pay for and may never use. My response is be thankful you don’t have to use it and my question is can you really afford not to have it?

Taking an expensive mortgage you can’t afford

Having a nice home is nice, but not if you can’t afford it. Why anyone would want to be house poor is beyond my understanding, but that’s probably because I’m 35 years old and I still rent. I would much rather spend money on life experiences than a big home for two.

If you’re thinking of buying a home use mortgage calculators like this one from Chase Bank to figure out how much you can afford, how much of a down payment you need and how much your monthly mortgage payments will be.

Your Engagement Checklist

Posted on September 21, 2015 - 5:00 am by Kristina Tahnyak

getting married, marriage advice, preparing for marriage

Congratulations on getting married. You’re about to begin you’re happily ever after, but before you walk down the aisle there’s a ton of other things you need to do first. The truth is your engagement is just the first step in get married.

First you have to plan wedding

This is probably the most exciting part of getting engaged. Not only do you get to spend the rest of your life with the person you love more than anything in the world, but you also get to plan what may be the biggest party of your life.

The downside to planning dinner and a reception for 200 wedding guests is the cost. If you (or your parents) don’t have savings to cover the costs don’t worry because you can pay as you go when planning your wedding.

No one says that you need to get married within a year of being engaged. Take your time and start saving for your wedding or spread out the bookings and pay as you go. First reserve your venue, then you can plan the meal with the caterer and then you can plan other details such as the bridal party outfits and flowers. Cut costs on things like invitations and centerpieces by DIY-ing whatever you can.

Then you can think about the honeymoon

Once the wedding and reception are over you can start planning your first romantic getaway as husband and wife. Some couples like to leave for their honeymoon right after the wedding, but depending on the time of year that could cost you.

Travelling during peak times (May to September) can be very expensive. Waiting a few months to take your honeymoon may be the more cost efficient option. Thinking of two or three destinations and comparing prices for flights and hotels can also help save big bucks. Don’t have your heart set on one place and you may be able to find a great deal for your second or third option.

You’ll have to set up house

Waiting a few months to take your honeymoon can save you money, but it also gives you time to set up your new space as a happily married couple. If you and your spouse are traditional you probably didn’t live together before the wedding.

Getting married and moving all within the same day can be a lot of change, maybe more than one can handle. Take some time to adjust to life as a married couple, enjoy your new home and once you’re settled in you can start planning your honeymoon. Keep in mind that purchasing and furnishing a house can really cut into your budget.

And finally discuss the money

Are you and your new spouse going to merge your finances? This is definitely a conversation you want to have sooner than later. Of course as you plan the wedding and honeymoon as well as move in together you will get to know each other’s money habits. However when it comes to finances you never want to assume you know someone’s goals or take income or debt for granted. It’s always better to talk about money and lay all the cards on the table.

Should I Buy a Condo or a House?

Posted on September 18, 2015 - 5:00 am by Kristina Tahnyak 1

purchasing a property, house hunting, buying a home

If you’re thinking of buying a new home of your own you may be weighing the pros and cons of buying a condominium versus buying a house. Let’s look at those pros and cons together and hopefully seeing all options in black and white will help you make the best decision.

If you buy a condo…

You’ll have a smaller space. I guess this really depends on the square footage of both the house as well as the condo, but generally condos are smaller than a house. Having a big house means more space that you need to clean and maintain. A condo can definitely provide more than enough room for you and your spouse, but you have to be willing to pay for it.

Your neighbors will be in close range. Unless your condo is built with sound proof walls you may hear your neighbors during all times of the day and night. After living in an apartment for many years hearing and smelling the neighbors I can tell you that living in a condo is a very similar experience.

You will be a co-owner of the space. With condos come condo fees. This is an expense that homeowners do not need to worry about. Condo fees cover the cost of maintenance, repairs and insurance of common areas such as hallways, the garage and the lobby of the building as well as the roof.

If you by a house…

There is more maintenance. This all falls on your shoulders with a house. There is no landlord to call when the roof starts leaking. You either have to figure it out yourself or hire a handyman. These are things that condo owners don’t have to worry about. If your house has a lawn you will also be responsible for cutting the grass and shoveling the snow. Two other things that condo owners don’t need to stress over. On the flip side you have a lot of space to call your own.

There’s more room to move and grow. Having your own space is definitely a luxury that not everyone can afford. If you decide to start a family or get a pet you probably have room to do so in a house; in a condo pets may not even be permitted. More space is nice, but it also means higher property taxes since this is based on your location as well as the size of your home. Are you willing to pay for your own private space?

It may be the better investment. Having a home gives you the option to live in neighborhoods both inside and outside of the city. It’s a lot easier to make improvements to your home than it is a condo because you aren’t limited by the rules of your condo association. The question to ask yourself when it comes to the value of the investment is, which will be more in demand when you want to sell?

Going back to school in your 30s

Posted on September 17, 2015 - 5:00 am by Kristina Tahnyak 1

going back to school, studying in your 30s, graduate school

It’s September and that means it’s time for back to school. If you’re a more seasoned student you may be going back to school for the second or third time. With undergrads returning to pursue a Master’s or Doctorate Degree and young professionals deciding to change careers universities and colleges can be filled with returning students.

I went back to school twice after completing my Bachelor’s Degree, once to pursue additional education in my field of Economics and then again to change my career and study Journalism. Let me tell you it was very different the second time around.

If you’re thinking of going back to school here are some things to keep in mind:

Some things do stay the same

Even though the experience as a student is very different when you go back to school in your 20s, 30s or 40s than when you’re a teenager, there are some things about college life that remain the same.

College campuses are chaos, no matter how much you try to plan your day and be on time spaces are still always filled with students rushing from class to class, waiting in line at the bookstore and trying to find a quiet place to study. Always give yourself an extra 10 to 15 minutes to get everywhere to avoid missing out on lectures.

You won’t be sleep deprived

I don’t know about you but I had no sleep during my four years of college. Between classes, group work and my part time job I had very little time to eat let alone sleep. This was the biggest change about going back to school.

College life is easier when you get older because you’re more organized, more disciplined and can multi task. My grades weren’t great during my undergrad because I couldn’t handle all the responsibility. However they significantly increased when I returned to school.

You know your limitations

When you’re young you think that you can do it all. When you’re older you know that’s not true. Working full time and going to school full time is not fun. However working full time and going to school part time to better your professional career is rewarding.

I had no idea what I wanted to do when I filled out my college applications at 18 years old. I studied because my parents told me to, but I wasn’t passionate about it and I changed my major three times before finally graduating.

You will be a better student

College tuition money is so much better spent when you actually like learning as opposed to being forced to do it. This combined with everything else mentioned above will make you a better student. If you decided to go back to school then you know exactly what I mean.

There’s also the added benefit of being financially responsible when you go back to school later on in life. You know how to save money on things like books and supplies as well as other expenses such as food.

If you went back to school was it better the second time around?

How to Plan for Retirement in your 50s

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

retirement planning, retire, retirement advice

When you’re young you may think that money will be a breeze in your 50s. You’ve worked your whole life, you’ll have a big fat company pension built up and you’re just a few years away from retirement. Ah if life were only that easy.

Nowadays more seniors are pushing back their retirement in an effort to save more money, they’re retiring with a mortgage and many may have several past employers due to the economic state which means there’s a lack of the big fat pension. As we all get older the days of starting to work for and retire from the same company are long gone.

“It’s hard to teach an old dog new tricks” that’s what my Dad says whenever we talk about his money management style. He likes to spend his money because at 62 years old he doesn’t see the point in saving it…any of it. As a financial planner I don’t necessarily think this is true. I honestly believe that with the willingness to do so and a lot of dedication you can change your money habits at any age.

Here are three ways to help plan for retirement in your 50s:

Start thinking about your retirement

Whether you’re five years or fifteen years away from retirement it’s never too early to plan. The truth is retirement planning should start way before your 50s, but it’s better late than never. Starting to plan later just means you need to save a little more and be a bit more disciplined, but you can do it.

Some people don’t plan for retirement (financially or emotionally) because they feel it will just take care of itself, unfortunately that’s not true. A successful retirement starts with a plan.

Set out a plan and talk to a professional

Planning for retirement is so much more than just saving money. Not only do you need to put money aside, but you need to invest it wisely. Transitioning from working to retirement and from accumulating savings to living off your savings can be a major life change. Talking with a professional financial advisor as well as an accountant can help you make the transition smoothly.

When you’re retired there is no more option to work overtime and make a little extra cash. You need to live on a fixed income and that can be an adjustment.

Keep credit card debt low

If you have debt in your 50s it’s a good idea to pay it off (as much as you can) while you’re still working. If you’ll be living on a lower income during retirement you may not find room in your fixed monthly budget for debt repayments. Credit card balances can quickly add up when you factor in monthly interest charges. It’s a good idea to retire debt free – or as close to it as you can.

Pros and Cons of Renting vs. Buying a New Home

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

house hunting, renting vs buying, real estate advice

If you’re thinking of moving out on your own for the first time or you and your spouse are thinking of relocating you may be asking yourselves “Should we rent or buy our home?” That’s a really good question and one that several people ask themselves when they’re in the market for a new home.

As you know I love renting. Last October Nick and I moved into a new apartment and although it’s not perfect, it’s a definite upgrade from our previous rental. However now our one year lease is coming due and we have to decide if we are going to continue renting or if we should take the plunge and buy our first home. What do you think?

There are pros and cons to both renting vs. buying. I have been a long time advocate of renting because of the carefree lifestyle and lack of responsibility. However we are now learning that maybe buying a home is the way we should go because renting (at least this rental) comes with a lot of baggage.

Dealing with a landlord

Normally I would say that this is a major benefit to renting because when you have a landlord you have someone to fix everything in your apartment and take care of the routine maintenance and upkeep. However at this particular moment in my life I would have to say that dealing with a landlord is a terrible pain in the butt.

Our landlord is totally shady and has a used-car-salesman quality about him. To your face everything is “Yes my friend. We will take care of it my friend.” But nothing gets done. I’m the type of person that if you aren’t going to do something or have no plans to do something then don’t say you are. Being lied to by someone you rely on is the worst feeling ever.

Being your own boss as a homeowner

When you own your home you’re the landlord, in house janitor and tenant. Even though I don’t know how to grout tile or fix a leaky shower head I think that I would rather rely on myself than anyone else. At 34 years old I am over relying on people and dealing with the back and forth of negotiating rent. I just don’t have the patience or willingness to deal with a landlord anymore and this is (or will be) a major advantage of buying a home.

Rent makes prestigious locations affordable

We would never be able to buy a home in the neighborhood where we live. As renters we can enjoy a great location without being house poor. We currently pay $1500 a month in rent and when we are ready to buy a home in the suburbs our mortgage payment will be a lot cheaper, that I know. However for the time being renting is cheaper than buying a home (in this location) so that’s definitely a plus.

Save Money at the Grocery Store

Posted on September 11, 2015 - 5:00 am by Kristina Tahnyak

save money at the groceries, grocery shopping, food shopping

After your monthly housing expenses what is the next biggest expense you have every month? For Nic and I it’s definitely food. We don’t have a car and rarely take any form of public transportation so after our rent and utilities are paid our biggest expense is food – both groceries and eating out at restaurants.

Nick and I spend anywhere from $85 to $120 on groceries per week. That all depends on if our items are on sale as well as how much food we have leftover from the week before. We shop every Friday and try to eat everything by the next week, but that doesn’t always happen because sometimes we get lazy and want to eat out.

How do you save money at the grocery store?

Of course there are some obvious ways to save money when grocery shopping such as clipping coupons and buying the no name brand. You can also save big bucks on regular household items by shopping in bulk and trying to shop at discount warehouses such as Sam’s Club or Costco. Costco is a great alternative because their customer service and return policies are outstanding. But what about some less than conventional ways to save money at the grocery store.

Keep these four tips in mind next time you’re out at the grocery store:

Calculate the per unit cost

We’re a household of two so shopping in bulk isn’t always realistic, so I like to shop by cost per unit. The cheaper the cost per 100 grams or 100 ml the better deal the item is. We definitely buy household items such as paper towels, laundry soap and toilet paper in bulk. We also buy non perishables like Uncle Ben’s rice in the biggest bag possible because it brings the cost per unit down and it’s something we eat regularly.

However with items that can go bad shopping with the cost per unit isn’t very realistic because we would just end up throwing out the item – even though we got a good deal it’s still a waste of money. It takes us approximately one year to go through a 500 ml bottle of olive oil, so buying something like that by the gallon is just not a good idea.

Shop more frequently

How much produce do you throw in the garbage each week? I hate throwing out food because I hate wasting money, but sometimes it happens. Nick and I shop weekly because that’s how long it takes us to go through the food in our pantry and fridge. I feel that if we went to the grocery store only every couple of weeks we would end up wasting a lot of produce and I don’t want to do that.

Go to social media

Twitter, Instagram and Facebook are the new weekly flyer. If you have some favorite products then follow and like the company on social media. I often get coupons for free drinks from Starbucks through their Facebook page. I also liked the dishwasher cleaner Finish on Facebook and got an entire box of free soap. Social media is new way to find deals and coupons – and it’s eco-friendly so it’s a win-win for everyone.

How to Save for Retirement in Your 30s

Posted on September 10, 2015 - 5:00 am by Kristina Tahnyak 3

saving for retirement, retirement advice, retiring

Have you started saving for retirement? I recently saw this chart on Business Insider that says someone who is 35 years old should have $10,765 saved in their IRA and someone who is 40 years old should have at least $14,441 saved. Based on those facts, are you an average American?

In case the answer is no, here are four ways to help you start saving for retirement in your 30s:

Stop spending and start saving

This is the easiest way to start saving for retirement in your 30s; just cut out some daily spending, watch it add up at the end of the month and then save it for retirement. Some people feel that retirement can’t fit into their monthly budget and that’s probably true. However you can make it fit by cutting some down (or out) some of your other expenses.

Don’t make plans for your end of the year bonus

Year-end bonuses are exciting. It’s a monetary value of all the hard work we’ve done throughout the year. I used to love getting my bonus. I would spend most of it and use a little bit to pay off debt – when in reality it should have been the other way around. But that’s water under the bridge.

This year was the first time I could actually afford to do whatever I wanted to with my year-end bonus. I put the entire amount into my retirement savings account, avoided paying taxes and increased my net worth all at the same time. I couldn’t stomach the fact of losing half of my hard earned money in taxes if I took it in cash. So I rolled it over to my retirement savings and investment it for the long term.

Save your tax refund

If you can’t afford to set some of your regular monthly income aside for retirement then what better way to ensure you continuously save than to invest a lump sum every time you get your tax refund. If you’re lucky enough to get a tax refund don’t spend it. It’s nice to get a lump sum of cash every April, but instead of taking that money and going on a trip why not put it into your retirement savings.

Don’t think it will happen later

In your 30s there are a lot of other things you probably want to do before retirement, but that doesn’t mean you should neglect your future. Maybe you want to travel, buy a home and lease a new car. Those are all great goals, but it doesn’t mean that you should forgot about retirement now and start saving later.

Consistently saving on a regular basis is the key to retirement success. If you don’t start now, when will you do it? Procrastination is easy, discipline is hard. This is the exact same reason why I advise people not to stop their retirement savings all together when they have other priorities. Because when will you start again?

If you need to focus your monthly savings/spending somewhere else temporarily don’t stop your regular retirement contributions, just lower them. That way you can increase the contributions again later on and it won’t be as big of a shock to your budget as if you had stopped them all together.