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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3 Reasons to NEVER Accept a Credit Card

Posted on July 29, 2015 - 5:00 am by Kristina Tahnyak

credit card, credit card offers, decline credit card offers

Good morning Dinks. Let me ask you a question, do you have the perfect credit card? Maybe the answer is yes, but maybe the answer is “I don’t know”. Many of us applied for a credit card in college and still have that credit card today. Life goes on and maybe we never saw a need to make a change, but the truth is our banking needs – just like our personal needs – change over time as life goes on.

How often do you change credit cards?

Just as you change your investment strategy for every new phase of your life and you may also change your bank account as your needs change your credit cards should also change. Maybe a cash back credit card worked for us in college, but now we may need a travel rewards card.

Maybe we want a credit card that gives us rewards with a specific airline or a credit card that gives us cash back when we shop at Amazon.com. Who knows? All I’m saying is our financial needs change over time and our credit card should change with them.

Here are three reasons you should never apply for a credit card:

Whoever approved you

This is one of the biggest mistakes people make when it comes to credit and debt in general. It is a viable reason to get your first credit card, but if you maintain a good credit score there is no reason why you should accept every preapproval you get in the mail.

This is actually one of the biggest mistakes I made in my late teens and twenties. I was so excited to be getting credit card offers in the mail and happily accepted them all – even though a 22 year old doesn’t need four credit cards.

Introductory bonus offer

HELLO travel hackers. I am sure that many personal finance bloggers would disagree with me because finance geeks LOVE to get things for free, especially if those things are travel rewards. When accepting a credit card offer just for the introductory interest rate or sign up bonus it’s important to read the fine print. It may be possible that you will be charged if cancelling the card within the first 12 months after accepting those bonus air miles or cash back.

Because it matched the colour of your wallet

Don’t laugh. This is a real life example. A woman in my office accepted a gold card over a platinum card because it matched the color of her Louis Vuitton wallet. She wasn’t concerned about the credit limit, the additional perks or the annual fee. All she cared about is that the gold colour better matched her brown and beige wallet. Doesn’t that seem like a total ridiculous reason to apply for a credit card?

Should you always buy insurance?

Posted on July 27, 2015 - 5:00 am by Kristina Tahnyak

Good morning Dinks. The short answer is YES. Remember how last week our rental car was broken in to? And remember how my luggage was stolen last May on my way home from a weeklong vacation? Oh and remember how last year United Airlines lost my luggage twice and delayed it once. I am living proof that insurance is always worth the cost.

I know that some people don’t buy insurance because they think it’s a waste of money. But the question we have to ask when faced with the option is to take insurance is not “Can I afford to pay extra for insurance?” The question we really need to ask is “Can we afford not to?”

In my opinion here are three types of insurance we always need to have:

Home owners or renters insurance

I can’t tell you how many times I’ve seen cases on The People’s Court about neighbors suing each other for flood damage because they didn’t have renters insurance. I’m pretty sure it’s over a dozen. The scenario is always the same: one tenant causes damage to another tenants property or belongings and neither side wants to pay and neither side has renters or home owners insurance. If we always have home owners insurance then these problems – and expenses – can be avoided.

Car insurance

When Nick and I had our Honda we were paying almost $100 per month in car insurance. I hated doing it but when our car was stolen off the street in front of our apartment we were mighty glad we had full coverage and car replacement insurance. That $100 per month didn’t seem so excessive then.

Last week when our rental car was broken in to and our personal items were stolen out of the back seat we didn’t have loss damage insurance with the car rental company Avis. Thankfully our American Express card offers car rental insurance and although we are still waiting for an official decision hopefully the cost to replace the window will be covered.

Medical insurance

I know this is a very sensitive subject for many people and as a Canadian I honestly believe that basic health care should be available to everyone. However this is not the reality we live in so that’s why it’s a good idea to purchase individual medical insurance even though it can be expensive.

I am fortunate enough to have medical insurance through my employer and trust me it comes in handy every month when I go to the pharmacy to pick up my prescriptions. Then of course there are those times of uncertainty when unforeseen expenses pop up. I don’t know anyone who has tens of thousands of dollars in the bank that they can throw away on medical bills. Yes of course those expenses are for your own good health, but I’m sure we can all agree that the money can be otherwise spent.

We Got Robbed!

Posted on July 24, 2015 - 5:00 am by Kristina Tahnyak 3

Happy Friday Dinks. Yes it’s true as I write this Nick and I are filing an insurance claim because yesterday our car was broken in to and all our personal belongings were stolen. Has this ever happened to you? I have to tell you it was a less than perfect scenario, but it definitely could have been worse. Here’s what happened…

We rented a car

We are on vacation all week and decided to rent a car for a few days to run errands, get things for the apartment that normal city dwellers don’t have access to such as Wal-Mart and maybe even take a weekend getaway to a nearby town for some relaxation. However all that was screeched to a halt when we came out of the liquor store and our car window was shattered.

Then we were robbed

We went to Best Buy to buy some things we needed for the apartment and then came back to put our bags in the car before walking over to the liquor store. We could have only been in the store for ten minutes and when we came out we immediately noticed that the Best Buy bag was missing from the back seat. I asked Nick where he put the bag and then when I walked around to the passenger side of the car to get in I noticed the back window was broken. And that’s when we realized we were robbed.

The police wouldn’t come

Nick called the police and they took down all the details over the phone, but would not send a squad car or create a police report. They told us that we could go home and file a police report online. What? All I kept thinking was CSI would be so disappointed.

I mean seriously there were cameras at the liquor store and I’m sure the thief is going to try and return the items at Best Buy for a full refund (although Nick thinks they will pawn them). They could flag our account and let the police know if he comes into the store. However no one except Nick and I seemed to care that our rental car window was smashed and over $300 in Best Buy merchandise was stolen.

Thank goodness for insurance

I didn’t take insurance with Avis because thankfully I have car rental insurance on our Amex. I immediately called them to explain what happened and figure out the next steps. Our credit card insurance representative was fantastic. She explained the process step by step and told us the claim would take approximately five to 10 business days to be examined. If approved they will work directly with the car rental company to cover the costs to repair the window.

If this happened five years ago I would have freaked out, but this time I was surprisingly cool. We thankfully have a credit card with insurance coverage and fingers crossed they accept our claim. Five years ago we were in such a bad place financially that this stress would have taken a toll on us. I’m so glad we’ve matured financially and learned to be responsible.

How was your week?

Do you buy in bulk? Jet.com Giveaway!

Posted on July 23, 2015 - 5:00 am by Kristina Tahnyak 9

Good morning Dinks. Let me ask you a question, is buying in bulk worth it for two people? I know retail chains like Sam’s Club and Costco pride themselves on offering low prices for bulk purchases and I’m just wondering if a Costco membership is worth it for two people.

Should you pay to buy in bulk?

The reason I’m asking is because I recently met Jet.com at the #BlogHer15 conference in New York City and I was immediately fascinated by their service. Jet.com is a new online company (literally they just launched) that lets you find savings club prices online and have all your purchases shipped right to your door. I have to tell you the idea of having big boxes of money saving items shipped directly to my door is extremely tempting.

Then the financial planner side of me asks myself “Should I be spending money to be a member of a club just to save money?” I guess the answer is yes. If your membership is $49.99 per year (which it is at Jet) it’s well worth it if your savings are more than that amount. Another side of me asks “Should I spend money on a membership to a place where the point is to go and spend more money?” I guess the answer is also yes, as long as the savings are worth the cost.

Is buying in bulk worth it for a couple?

If you also answered yet then keep reading because we’re giving away 10 one year memberships to Jet.com. Whenever you see household commercials for everyday items such as toilet paper and paper towels you always see a family happily sitting around a dinner table wiping up messes with durable paper towels. Or you see a mother helping her child get potty trained with the help of her trusted toilet paper brand. These commercials don’t offend me but the reality is that couples buy in bulk too.

Nick and I obviously use a lot less product than a family of four, but we still like to save money on items that we continually use over time. We may not use them every day, but we do use them constantly so those types of items should be bought in bulk regardless of the size of your household. Why is buying in bulk so praised upon? Because it lowers the cost per unit which saves money and I love that.

Here are some everyday items that we should always buy in bulk:

Toothpaste. Each of us brushes our teeth three times a day, that’s a lot of toothpaste and a lot of mouth wash. Did you know that one tube of toothpaste should last one person for three months? I just learned that from Aquafresh at the #BlogHer15 conference. I always buy toothpaste on sale but I’m going to start buying it in bulk.

Toilet paper. Now that Nick and I can work from home we use a lot of toilet paper. I try to buy this in rolls of 50 or more and double rolls are an added bonus. No matter how much I hoard it seems like we can never have enough toilet paper.

OK now it’s time for the giveaway. Use the Rafflecopter link below to win one of 10 one year memberships to Jet.com. Good luck!

Enter here to win —->>> a Rafflecopter giveaway

Are you using your credit cards wisely?

Posted on July 22, 2015 - 5:06 am by Kristina Tahnyak 3

credit card, using credit cards wisely, credit card usage

Good morning Dinks. I’m not talking about making purchases and paying them off in full every month to maintain a good credit score and avoid interest charges. I’m talking about maximizing the benefits of your credit cards. I just realized that I’m not doing this and as of yesterday Nick and I are changing the way we use our credit card.

Do you have more than one credit card?

If you are like most people you probably do. I personally have two, a VISA that I use for everyday purchases and an American Express that I use for travel. According to our friends at CreditCards.com the average American has 2.6 credit cards. It’s nice to know that I’m below the average. Nick only has one credit card so he’s well below the national average.

Why do we have several credit cards?

The simple reason is because they all serve different purposes. My everyday VISA allows Nick and I to accumulate rewards points towards movies. It’s actually really nice because since getting the card in 2011 we haven’t paid for a movie. We can use the points for snacks or movie tickets and since we both love movies it seemed like the perfect fit.

Then there’s the AMEX. Nick decided not to be joint on this card because he doesn’t like to travel nearly as often as I do. I always book travel with this card because AMEX offers a fantastic line up of travel perks and insurance benefits. These are nice to have “just in case“.

Do you have a favorite credit card?

I prefer to use the VISA whenever possible for two reasons: 1. because it has a lower limit so I can’t get into too much trouble if I fall into my old financial ways and 2. I really love going to the movies. We use this card for everything from our weekly groceries to online purchases because it helps us earn points.

However I recently discovered that the AMEX not only offers travel perks but it also offers cash back rewards. For every $1 I spend I get one reward point which can be used towards credits for travel bookings or to buy gift cards. Now of course I didn’t really care because our VISA gives the same rewards rate of $1 for one point. However the AMEX gives four times the points on groceries and gas. Now that changes everything.

Use your credit rewards wisely

Of course I would prefer to earn movie points over cash back on travel or gift cards however earning rewards four times faster is a no brainer. Although the VISA is our favorite credit card, the AMEX is now our go to credit card for our weekly groceries.

Nick and I spend $125 a week on our groceries and with four times the points our rewards are adding up a lot faster. To make the deal even sweeter it turns out that we can get movie gift cards with the points. It’s a win-win.

Do you have student loans?

Posted on July 20, 2015 - 5:07 am by Kristina Tahnyak 3

student loan, getting out of debt, student debt

Or did you after graduation? I certainly did. I had almost $20,000 in student loans and it took me almost seven years to pay them off. I know that may seem like a long time but I had a whole bunch of other debt to pay off as well and I continued accumulating debt. To make a long story short my financial life was a mess from the time I was 25 to the time I was 32. That’s a long time.

Should student loans be maxed at an amount that can be repaid?

However now I’m almost 35 years old (in October) and I can finally say I’m in a good financial place. Unfortunately I can’t say the same for all my friends. Remember my friend Laura? She’s the one who’s boyfriend bought a house for his parents without consulting her.

Over lunch the other day we were talking about how she’s still paying off her student loans and I thought it seemed a bit weird that she still had student loans because we graduated almost 10 years ago, but to each his own. I definitely think a student’s life is a lot harder when they graduate with tens of thousands or even hundreds of thousands of dollars in debt.

Should education be affordable for everyone?

As I listened to Laura talk about her financial situation I couldn’t help but think back to a recent episode of Shark Tank that I watched. There was a young college student pitching an app to the Sharks that let students find a plethora of available bursaries in their area..

This student actually received over $1 million in student bursaries to help pay for his education. My first initial thought was “WOW that’s great” because you don’t need to repay bursaries (unlike student loans) so basically he received a free education. I personally think that education should be free or at least affordable for students who qualify because they are the future of our country and economy.

Should student bursaries be capped?

However after a little more thought I wondered why one student was able to be awarded over $1 million in bursaries as I’m pretty sure his education didn’t cost that much. Basically he received a free education and doesn’t need to eat Ramen noodles after graduation because he is graduating with money in the bank. I’m not sure how I feel about that.

I am all about helping students make the most of their college years because I know my grades suffered since I had to work full time. However just take a moment and think of all the other students who could have also gone to school if this one student would have just taken the amount of money he needed to pay for his education and nothing more.

Did you graduate with student loans?

My Bank Nemesis

Posted on July 17, 2015 - 5:05 am by Kristina Tahnyak

bank nemesis, bank issues, bank problems

Oh yes I have one. Even though I’m a long time financial services employee and I should have some level of compassion for what bank employees go through on a daily basis the truth is I don’t. I have zero tolerance for cold hearted banks who forget their clients are actual people instead of numbers.

Oh and in case this hasn’t come across in our six years together I am an extremely impatient person. I don’t like waiting and I really don’t like waiting for stupid people. I know it’s not a truly endearing quality, but that’s just me. I actually don’t mind it because I feel it makes me extremely efficient. However I’m sure others disagree.

I love TD Bank but I didn’t always

As you may remember I’m a loving and faithful client of TD Bank, but the truth is I haven’t always been a long time client. Before my switch to TD Bank in 2009 I used to deal at another institution who won’t be named. Actually it depends how angry I get as I continue writing this story. I may just have to call them out by the end as my rage builds up to an uncontrollable state.

I closed all my banking accounts and transferred out my investment accounts from this bank but I kept my debt with them, two credit cards to be exact. As I became debt free I needed to call the bank to make sure all the accounts were closed and everything was in good standing with zero balances. Little did I know that my simple call would turn into yet another run in with my former bank that reminded me of why I transferred everything out.

No compassion for job loss

The saga started back in 2009 when the market crashed and I lost my income. I immediately contacted all my credit card providers to see what options I had when it came to repaying the debt. Two of the three companies offered interest relief and offered to close the cards so I could set up principal-only repayments. The payments were fixed and it was a big help.

The response I got from this most hated bank was “That’s not our problem”. Seriously that’s what they said. They didn’t express any regret for what I was going through. They just proceeded to tell me that the debt is still owed. The interest rate would stay the same at 19% and the payments were still due.

They have the worst customer service ever

I understand banks are big corporations with tens of thousands of employees. It’s not expected for every single employee to be at the top of their game, but I expect a basic level of intelligence. If you don’t know the difference between biweekly and semi monthly payments there is nothing I can do for you. If you listen to any of the calls I’ve had with them I’m sure my file is flagged as being a completely unreasonable customer.

When I made a complaint to the person I was talking to on the phone and asked to speak to a supervisor not only did he not try to resolve the problem on the spot. He actually asked me to fill out a customer service form online. What?! Are they serious? For those of you who are curious the institution I completely hate and will never do business with again is RBC Royal Bank.

3 reasons to pay off your mortgage – and 1 not so good reason

Posted on July 16, 2015 - 5:00 am by Kristina Tahnyak 2

mortgage, paying off mortgage, housing loan

Good morning Dinks. Do you have a mortgage? If you are like most Americans you are probably paying to live somewhere every month. That payment can be in the form of rent or in the form of a mortgage loan. However some lucky Americans are mortgage free.

Are you one of those Americans without a mortgage?

Nick and I don’t have a mortgage but that’s because we rent. I was recently talking with one of my friends; she just bought a house with her boyfriend and now she has a mortgage. Her goal over the next fifteen years is to pay off her mortgage as quickly as possible. As a financial planner I think it’s a good idea, but as an individual I have to ask myself what is she giving up to become mortgage free?

You don’t want to be house poor

This is the number one reason why I wouldn’t advise homeowners to financially strain themselves to pay off their mortgage. Is there really a point in buying a home if all you can do is live in it without enjoying the other parts of your life?

Being house poor means setting all other financial priorities aside until your mortgage is paid off, I’m not sure that’s the right thing to do.

Being mortgage free means financial freedom

This is one of the best reasons to make prepayments on your mortgage and pay off the loan as soon as possible. If you’re not spending money on monthly mortgage payments you can do other things with the money like travel, remodel your home and save for a rainy day.

You can truly say you’ve reached financial freedom when you can dictate how you want to spend your money instead of the other way around.

You want to retire someday

The faster you pay off your mortgage the faster you can start saving for retirement. This is one financial goal that we all have in common. Everyone may not want to travel and everyone may not want to buy a home, but I think it’s safe to say we all do want to stop working someday.

There’s no reason we can’t have more than one goal at a time but the less you have to pay on your mortgage the more you can save towards retirement. Now that’s a goal worth working towards.

Think about the kids

I know many of us don’t have our own kids, but that doesn’t mean we don’t have kids in our lives. I have a niece who I would love to see succeed in life since her parents had a messy divorce. When she’s in college I will offer to buy her school books. I had an uncle who did this for me and I would definitely like to do it for someone else. It was a major financial help while I was in school and I’ll never forget it – and I’ll be forever grateful.

Couples Summer Vacation Ideas

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

couples vacation, summer vacation, planning a vacation

Good morning Dinks. Are you and your sweetheart planning to take a vacation this summer? This is usually the time of year when couples try to coordinate their time off from work so they can take a week or two and get out of town.

Last year Nick and I spent a few days in Niagara Falls and this year we’re planning to visit British Columbia or Prince Edward Island. We haven’t decided which one. With our busy work schedules we’re also probably not going to be able to get time off until September. But that’s O.K. A vacation is a vacation right?

Where are you and your spouse planning to take a vacation this summer?

Spend some time at the beach

It’s been years since I’ve dipped my feet in the sand so a beach vacation is just what the doctor ordered. That’s why we’re planning our vacation this year to a coastal city where we can get the best of both worlds – city amenities and beach relaxation.

I’m also headed off to the Carolinas (both North and South) at the end of September so there’s lots of beach sand in my future. Although with all the shark attacks I’m not sure I’ll be jumping in the water.

Rent a little cabin in the woods

The forest represents my two biggest fears in life: total darkness and utter silence. Renting a cabin in the woods is not really my idea of a perfect vacation but spending some time in the great outdoors can be very relaxing.

There is something so serene about the fresh air and smell of bark and trees that I absolutely love. However come night fall I just can’t seem to get comfortable – even beside a crackling fire.

Hit up an amusement park

If you’re more of a thrill seeking couple then hit the road and head over to Six Flags, Cedar Point or any other amusement park that’s in your area. Spending a day screaming until your throat hurts is a great way to have fun and get some fresh air at the same time.

Who knows you may even come out of the day with a new teddy bear. The only thing I hate about amusement parks is waiting in lines – I really hate waiting. Thanks goodness I have Nick there to keep me calm.

Try a vineyard getaway

What could be better than some alone time with your honey bunny? Some alone time with some wine. If you live near a region that’s known for its wine then why not take advantage and book some vineyard tours. I recently did this with my co-workers and it was a lot of fun.

We spent an entire day riding bikes around the countryside visiting different wineries and tasting their homemade brews with a variety of cheese and crackers.

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Are you house poor?

Posted on July 13, 2015 - 5:00 am by Kristina Tahnyak 2

purchasing a home, home purchasing, buying a house

Good morning Dinks. Let me ask you a question, do you own your home? As you know Nick and I rent our apartment and love it. However lately I’ve been thinking that maybe I would like to have a house. Grass to walk around in barefoot, a garden to plant flowers and levels of space so we don’t hear each other’s noise. What do you think?

I think having a house is a lot of work but more recently I’ve been thinking that Nick and I may just be ready to take the next step – maybe. Just when I start to think that buying a house may be a good idea I hear stories of people who aren’t able to do anything else after buying a house because they put all their money into their dream of owning a home.

What did you give up to buy your home?

I recently asked my best friend to take a girls vacation this summer and she said she can’t afford it because her and her boyfriend just bought a house. I definitely don’t want that to happen to us. I don’t want to be house poor. I don’t want to give up travelling, eating out and enjoying life just because I bought a house. Is this always the case.

One of my colleagues is looking to upgrade to a bigger home and after overpaying for the property in a bidding war he is the proud new owner of a house that is way too big for only two people. I always wondered why two people need so much space. More space means more cleaning and more chores. #NotInterested

Why buy a house you can’t afford?

We were talking about his new purchase and he said it has three bedrooms and two bathrooms. He’s impressed by the size but it doesn’t matter right now since they don’t have money to furnish the entire place. I immediately thought to myself why would two people need so much space? Maybe they wanted to snatch up a good deal but that’s also not the case.

Nick and I pay quite a bit of money in monthly rent and utilities so I don’t think the mortgage payment would be a financial burden for us. Actually we would be saving money every month by buying a home. Then there’s the question of the down payment.

We do have money set aside but I think it will hurt to see all that money leave our bank account for one big purchase. We aren’t actually saving it for anything in particular but the idea of losing it (even though it’s not really lost) makes me panic a bit.

Are we ready to buy a house?

I’ve heard that having a house is an ongoing expense, but I’m not sure how different it will be now. We currently pay rent which is equivalent to a mortgage, we pay our own utilities and we have renters insurance. So I’m not sure what’s different.

Maybe it’s the upkeep. In an apartment we don’t have to worry about backyards, shoveling snow or cutting grass. All that gets added on when you buy a home. Then there’s the ongoing updating. I think the odds of us finding a house in exactly our taste are slim to none. So cabinets will probably have to be replaced and walls will have to be painted. Those costs can quickly add up.