Keeping it in control: living on a budget

Very cold day in Montreal! I hope the weather will get better soon. I went for a walk after work. I like Lafontaine Park. It’s near my place. I am looking forward to exercise more. A horrible thing to say at 29. At 29, I should be healthy, pretty and slim. But instead, I hold 86 000$ in assets lol. It was one or the other. Just like for New Brunswick: we had to pick between fibre optic for our extra-high speed Internet or a good electric network. We had pick the optic, and no we are in a mess... I got recently horrible back pains, like I was going to broke in 2 pieces. I usually got those back pain when I am need of exercise. Working 7 days a week is not easy. But even there, if I manage myself properly, I will find time to walk more. I am not a huge sport fanatic, but just walking a couple of hours per week should do it. Usually, it’s all it takes and the pain goes away.

Anyhow, we are feeling better now. As for our non registered stocks and units portfolio, we close Friday without the 268.95$ gain realize on Friday morning. I am confident we will make other gain. It’s just that right now there’s some stuff going on with Greece but an agreement had been made with the Euro and should help to stabilize the situation. So things are going to be interesting in the next couple of days. We should be able to realize gain and keep them on.

Now that we got involved in different loans, RSP credit line loan, credit lines itself, credit card balance transfer (do we like that stuff or not)… We have some debts to take care off. We won’t be working at paying anything until we reach the 100 000.00$, but until that time, we still have to pay the minimum payments require in order to keep a good credit score to later on ask for more credit or a credit line increase.

Payment on the 10 000$ RSP credit line only begin in May. We have until that time to save some cash in our bank account. The way things are going for now, I should be able to save around 1 000$ per month. By the end of May, I should have an emergency fund of 2 000$. We never been very strong on emergency fund as I always through that in case of need, I would sell some of my investment. We registered to pre-authorized debit for the RSP credit line. We also have pre-authorized debit for CIBC Visa. It’s been working like a charm. Whenever I make a payment in advance, CIBC Visa never came to take any money of my banking account. But it hasn’t been working so well on my credit line at BMO Bank of Montreal. I usually pay my things in advance. Once, I made my payment on my BMO Bank of Montreal credit line in advance. On the same month, on the due date, BMO Bank of Montreal took the same amount out of my bank account. On that month, BMO had been paid twice. I have the proof on paper that this really happen. Wonder what I did after finding out? I simply close my BMO Bank of Montreal banking account. I am done with BMO Bank of Montreal. Shitty service and shitty way to treat employees. My BMO InvestorLine account is also close. I am forever done with BMO Bank of Montreal. Well, almost, because I didn’t close any of the credit products I hold with them. But I don’t plan to use my BMO Bank of Montreal credit card, even if it provides me airmiles. As I wrote previously, business is business. I won’t do business with people being so disrespectful with my financial property. I have a five star credit score and I want things to remain this way. That’s what I call keeping it in control.

Other than that BMO shit, we have a lot to look into. Ok, so for the first time since a very very long time, I will hold a bit more than 2.69$ in savings in my investment portfolio. It’s going to look a bit better than usual! This is not being an emergency fund really, it’s more a protective funds, just to make sure money is there whenever money is being taking out. Because once again, we want to protect our awesome credit. It’s not BMO Bank of Montreal who’s going to ruin everything. And as usual, we are going to kick ass, just like we did when we reach our first 50 000$.

Watch out what a 2 000$ can bring as value for us:

2 000$ (savings) + 86 047.56$ (value in date of March 24) + 4 239.96$ (annual dividend earning) + a gain of 5% on the value of March 24 (4 302.38$)
= 96 589.90$

This is what we could have by the end of 2010 without making any other investment.

Now, when we add 8 000$ in new investments for the period of May-December 2010:

2 000$ (savings) + 86 047.56$ (value in date of March 24) + 4 239.96$ (annual dividend earning) + a gain of 5% on the value of March 24 (4 302.38$) + 8 000$ in new investments + 300$ in new dividends
= 104 889.90$

Did you saw that, we even exceed the 100 000.00$ assets! No matter on which part we take it, the plan work!

Nice, but at this point, keeping track of my expenses is really important because I don’t plan t conduct any job search for now and I don’t plan to work more than I am working right now, reason behind being serious back pain. Someone from BMO is an expert with voodoo dolls lol.

I am not making that of a salary right now, but I spend a lot of money on coffees, DVD renting, eating out, movies… It’s very sad, but the upcoming weeks are going to nice and tough, just the way we like it lol. Reason why: there going to be a lot less spending and a lot more money in our pocket. I am not a huge spender, but when I see 400$ in spending in less than a month on my credit card: there’s a problem. We can reduce that 400$ to a 200$ very easily, just by keeping it in control. It’s just something I need to be aware of. And it’s a resolution we are taking starting tomorrow. The hardest is going to be to cut the coffees. In the past, I set myself some no coffees week without too much trouble. We should be doing alright.

Wonder how looks our budget now? It’s looking rough and tough!

It’s looking like this:

Rent: 545$
Internet: 35$
Metro pass: 70$
Bank line of credit #1: 100$
Bank line of credit #2: 125$
Credit cards balance transfer #1: 100$
Credit cards balance transfer #2: 150$
Student loan: 100$
Groceries and other: 200$
Total: 1 425$

At 200$ for groceries and other, there will be not that much spending! It’s going to be awful, but this how life goes on. We make it happen before; we are going to make it again.

Don’t worry, we can count on our dividend cash from Canadian dividend paying units, who will soon become Canadian dividend paying stocks.

Its not a bad thing after all that Pembina Pipeline Income Fund (PIF.UN) suspend its DRIP. Starting April, it won’t be possible to earn extra units out of PIF.UN. This month, we earned 53.69$ in dividend from Pembina Pipeline. Starting April, we will received a bit more than 53.69$ in dividend (meaning cash!!) from PIF.UN.

Dividend = Cash

We currently earn each month cash from different .UN invesments because we don’t own enough of unit to benefit from the DRIP. They are:

Bell Aliant Regional Communications Income Fund (BA.UN): 24.17$
Davis + Henderson Income Fund (DHF.UN): 15.33$
Pengrowth Energy Trust (PGF.UN): 7.42$

Once those will be convert into corporation, I am really going to miss the joy of receiving dividend every single months of the year!

If we calculate PIF.UN, BA.UN, DHF.UN and PGF.UN dividend all together… it make the fantatsic amount of 100.61$!

1 425$ (monthly expenses) – 100.61$ (amount of dividend earn in cash)
= 1 324.39$

This is just a little example, but it’s giving a taste of the magic of dividend: free money, that we desperately need.

And how about a gain of 268.95$ instead?

My non registered stocks and units investment portfolio is now at 48 371.86$... It’s keep adding up, increasing…This represent a gain of 268.95$ compare to March 24…It’s even more than the gain realize just yesterday.

Too bad Just Energy Income Fund (JE.UN) had to decrease at 14.18$, when I purchased 200 units at 14.29$ and 100 units at 14.30$ this last Friday... However, some other companies are « jumping ». They are: Yellow Pages Income Fund (YLO.UN), now at 6.22$, Bank of Nova Scotia (BNS) is ALMOST at 52$.... Great surprise with Enbridge Income Fund (ENF.UN) who exceed the 13$ per unit. I say surprise but hey, this is a Derek Foster pick! So we shouldn’t be surprise with this increase at all! All increase are welcome of course.

Currently, Enbridge Income Fund (ENF.UN) is at a fantastic 13.26$!! I hope the day continue like this. If so, I am going to update again the whole thing… Doesn’t look like it, but updating my portfolio always is taking me a good hour, if not an hour an a half each time. Busy Friday.

A gain of 203.24$ in my stocks & units investment portfolio

I am quite exciting on how well things are going! My only regret is to see that poor woman at the name of Ann Coulter making a fool of herself in Canadian territory. All the people I take to about it agree: Ann Coulter is a poor foolish writer, Republican, and all what happen at the University of Ottawa had giving Ann Coulter a good press coverage and it’s a shame. First, the woman is against Muslims and gays. She said in a press conference: "How did Canada go from being the country that sends us all our best comedians to a bunch of whining, crying babies that can’t take a joke?" Muslims and gay rights, among other, are not a joke. It’s not something anyone had the right to make fun of. Canada is a country of integrity. Ann Coulter makes a living by selling books. What happen at the University of Ottawa is giving her free press: see, I am actually talking about her on my blog right now!

But I feel powerless, very irritating to see Ann Coulter wanted to be well-treated in Canada. Ann Coulter won’t be well-treated in Canada because most of Canadians are for civil rights, are Muslims and gay friendly. Best thing that can possibly happen at the University of Calgary: I hope she’ll be giving her speech in front of an empty theatre. Shame at the University of Calgary, the University of Ottawa and the institution of London Ontario to have invite Ann Coulter for a speech. Also, shame at the editor of the National Post who had published an email send by a senior administrator of the University of Ottawa send to Ann Coulter. This is all a big mess and Ann Coulter is taking advantage of it. I never heard about Ann Coulter before the Ottawa events. But when I read about Ann Coulter and learn more about her, I just had one thing on mind: the bitch is better to leave Barack Obama alone! Its all I have to say about Ann Coulter. If you are not aware of Ann Coulter and what happen at the University of Ottawa, you can google Ann Coulter University of Ottawa and you’ll see by yourself… Ann Coulter is a blond freak. Should she never come to Montreal or she will receive exactly the same treatment she had received in Ottawa.

As for now, my stocks and units investment portfolio (non registered one) is currently at a very awesome 48 306.15$, a gain of 203.24$ compare to… only yesterday! I don’t even earn that much money in one day of work right now! All gain, as little as they are, all good and welcome. At this point, my investment life is much much interesting because I had reached the amount of richness I never expected to have of my life. I realize this today, as I was working… lol. I can definitively “feel” the portfolio taking form… Can you feel it too? lol… My good and bad investments experience (and bad work experience at BMO Bank of Montreal) allow me to appreciate my money even more and I can now see clearly exactly where I am going. Straight to the point as always.

So things are getting pretty hot in my investment portfolio. Yesterday, I went through this calculation:

86 047.56$ (total) in assets + 4 239.96$ in annual dividend income
= 90 287.52$

Wow…… 90 287.52$. Isn’t that awesome?

Ok, yes, I have 36 585.03$ in debts, but my yearly dividend cover the cost of the interest rate on the money I borrow. At 36 585.03$ in debts, I am not in the deep red. Well, I do not considered myself as being in the deep red, struggling with debt problems. So check this out:

4 239.96$ (amount earn in annual dividend income) – 1 775.20$ (amount of the interest generate on my 36 585.03$ debt)
= 2 464.76$

Very very good!

The key is to have enough money to cover the minimum loan payment due each month. At this point, I have no problem. Everything is under control. At least for now lol...

Hope that sharing my experience will help other to believe that the dream is possible.

If you want my point of view, BMO Bank of Montreal and Ann Coulter are looking pretty bad right now. What do you think?

I am now at 86 047.56$

Nice day today. NB Power won’t be sell to Quebec, I had purchased 300 brand new units of Just Energy Income Fund (JE.UN)… live is good! I had left 1 077.99$ in cash on my TD credit line, which is great. In case of need, I will have cash available. I could invest in 100 units of Claymore Gold Bullion ETF (CGL) since the unit price is currently under the 10$ per unit but for more safety, I prefer to have some cash available somewhere.

Nice gain for Bank of Nova Scotia (BNS). Too bad the TSX lose points today. However, I update my investment portfolio since so many changes happen in the last couple of days.

I am at 86 047.56$. Also, my level of debts had increased.

Here’s an overview of the situation:

Total assets: 86 047.56$

Annual dividend income (non registered account): 3 933.56$
Annual dividend income (registered account): 306.40$
Total in dividend income: 4 239.96$

My debt situation:
Student loan: 8 464$ at 4.75% = 402.04$ in annual interest
Credit line: 4 840$ at 3.5% = 169.40$ in annual interest
Credit line: 3 922.01$ at 8% = 313.76$ in annual interest
RSP Credit line: 10 000$ at 4.75% = 475$ in annual interest
Credit card balance transfer: 5 000$ at 4.9% = 245$ in annual interest
Credit card balance transfer: 4 359.02$ at 3.9% = 170$ in annual interest

Total of debts: 36 585.03$
Total in annual interest rate: 1 775.20$
I calculate the interest rates on an annual basis, but the credit card balance transfer I have made are valid for 6 months only.

At this point, having more debts will make no sense. Its actually barely make sense at this point. I am fair play, I like to expose it all…

Here’s my net value:

86 047.56$ (total) in assets + 4 239.96$ in annual dividend income
= 90 287.52$

90 287.52$ – 36 585.03$ (total of debt) – 1 775.20$ (total in annual interest)
= 51 927.29$

At this point, my net value is of 51 927.29$. Since my net value is more than 50 000$, I feel comfortable with my debt situation. At this point, I won’t apply for any more credit line, loan and I won’t borrow any more money using what I call my ping-pong method. At this point, I won’t go deeper in debts.

Did you notice, we are now at a 90 287.52$ (after adding the juicy dividend income). We have less than 10 000$ to go! Nice, but are we going to be able to make it? Yes, but…

I borrow money using credit card balance transfer on a regular basis. I did one back in November 2009 for the amount of 1681.78$ at 3.9%. This one will expire in May or April 2010. So what’s going to happen? If I do not receive a credit card balance transfer, I will have to sell some stocks. If we sell any of our investment, we won’t be able to make it, we won’t be able to reach our 100 000.00$ assets. The market seems to be fairly ok. I can invest 10 000$ in the next 10 months. That’s possible. But if I have to sell anything I hold to pay off one of my credit card balance transfer when they will expire…. I won’t be able to make it. And if not, my live will be ruin. I won’t be able to get my revenge on BMO Bank of Montreal who lay off me very unfairly.

So what are we going to do?

For that part, I don't know yet.

My debt situation in date of February 24, 2010

Student loan debt: 8 517.94$ at 4.75% = 404.60$ in annual interest
4 817.03$ at 3.5% = 168.60$ in annual interest
4 436.21$ at 3.9% = 173.01$ in annual interest
3 587.13$ at 8% = 286.97$ in annual interest
10 000$ at 4.75% = 475$ in annual interest

Total of debts: 31 358.31$
Total in annual interest rate: 1 508.18$
[In date of February 24, 2010]

My stock investment portfolio in date of March 5, 2010

Savings:
2.69$ (ING Direct)

Non RSP Investments:
Stocks & Units investment portfolio
Sprott Inc. (SII): 2 171.50$
Timminco (TIM): 250$
Blue Note Mining (BNT): 50$
Bank of Nova Scotia (BNS): 5 234.25$
Hanwei Energy Services (HE): 117$
Methanex Corporation (MX): 2 720.23$
Fortis (FTS): 2 998.32$
Pembina Pipeline Income Fund (PIF.UN): 7 252.28$
Just Energy Income Fund (JE.UN): 5 981.22$
Dumont Nickel Inc. (DNI): 460$
Yellow Pages Income Fund (YLO.UN): 2 638.35$
Bell Aliant Regional Communications Income Fund
(BA.UN): 2 545$
Pengrowth Energy Trust (PGF.UN): 1 207.34$
Enbridge Income Fund (ENF.UN): 3 815.20$
Corby Distilleries Limited (CDL.A): 1 520$
Davis + Henderson Income Fund (DHF.UN): 1 658$
Premium Brands Holdings Corporation (PBH): 2 940$

TOTAL: 43 558.60$

Tax-free savings account:
RBC O'Shaughnessy Canadian Equity Fund:
2 699.51$
Creststreet Alternative Energy Fund: 1 165.71$
Sprott Canadian Equity Fund: 5 021.46$

TOTAL: 8 886.68$

RSP:
CIBC Dividend Growth Fund: 492.78$
CIBC Emerging Markets Index Fund: 433.49$
CIBC Monthly Income Fund: 967.28$

Energy and Base Metals Term Savings (Indexed term savings): 546.25$
Natural Resources Term Savings (Indexed term
savings): 502.06$

GIC National Bank: 1 170$
GIC Finance Plus: 1 513.97$
GIC Plus: 500$

TD Canadian Bond: 111.45$
TD Monthly Income: 100.21$
TD Emerging Markets: 79.22$
TD Energy: 81.98$
TD Precious Metals: 104.64$
TD Latin American Growth: 93.97$
TD Entertainment & Communications: 103$
TD Dividend Growth: 196.28$
TD U.S. Mid-Cap Growth: 99.03$

TD RSP account: 10 500.19$

Maritime Life International Equity Fund
(Templeton): 636.36$
Manulife Simplicity Growth Portfolio: 858.25$
Maritime Life CI Harbour Seg Fund: 1003.90$
Maritime Life Fidelity True North Seg Fund: 967.20$
Maritime Life Trimark Europlus Seg Fund: 597.12$

Great West - Various: 1 704.96$

RBC Canadian Dividend Fund: 503$
RBC U.S. Mid-Cap Equity Fund C$: 1 799.48$
RBC Global Resources Fund: 882.91$
RBC O'Shaughnessy International Equity Fund:
589.71$
RBC O'Shaughnessy All-Canadian Equity
Fund: 1 008.26$

GIC Canadian Market: 1 000$

TOTAL: 29 146.95$

Social Capital at Desjardins Membership share for
3 accounts: 40$

Savings + Stocks, units, mutual funds + Tax-free
savings account + RRSP + Online Income (74.63$):
81 709.55$
[In date of March 5, 2010]

More more more, welcome 300 units more of Just Energy Income Fund (JE.UN)

Just before I make my 300 units purchase of Just Energy Income Fund (JE.UN), my investment portfolio (the non RSP one) was at 44 011$! WOW! I invest in 300 units of Just Energy Income Fund (JE.UN). I am now currently at 48 273.05$. Now am at... 48 294.81$ (10 seconds later). I like trading on T D Waterhouse! Experimenting the power of real time lol.

Tonight, we are going to update our investment portfolio. I hope the day will finish well on the stock market.

The poor Timminco (TIM) is now at less than 1$. Bank of Scotia (BNS) is at more than 51$.. HOT stuff going up. So go go go TSX. Make my day.

NB Power belong to New Brunswickers!

Finally! New Brunswick Premier Shawn Graham had been intelligent enough to close New Brunswick doors to Hydro-Québec! New Brunswickers had what it take to be energetic independent. Shouldn't ever loose the control of our province never again! the Québec Governement is just so ridiculous. By asking too much, Québec had the deal close. And that's better this way!

Is it New Brunswickers fault if previous provincial governement, we can think of Bernard Lord, didn't do what they should to protect New Brunswickers energy ressources? Just like other province, New Brunswick is able to be auto-sufficient. Just our ministers had stop to look ways around to sell us to foreigns, like Québec. Bernard Lord is just one of those idiot. He currently live in Montreal. One of the stupiest and laziest New Brunswick past minister live and work in Québec? Coincidence? No. too much jerks are here, especially in Montreal: Brian Mulroney, Henri-Paul Rousseau, among other. And I a just praying God almost everyday for a relocation.

But now, how New Brunswick going to produce its energy? I don't have a clue. Candle light....... lol..........

New Brunswick rock and NB Power blong to New Brunswickers and to no one else.

Anyhow, Hydro-Québec customer service is so poor, very awful. There's also a lot of billing problem. I don't want any of that shift in my province. So now things are going to be better for New Brunswickers since nothing of the poor Québec system will be in the place.

May God bless New Brunswick.

Welcome Consumers’, 200 units of The Consumers’ Waterheater Income Fund in my online future trading brokerage

Right now, things are going so great, I thing we are going to be able to make it! Our stocks and units investment portfolio (non registered one) is currently at a super great 43 781$.

Up of 222.40$ compare to March 5, 2010! Very nice! We like slow, little calm increase of our portfolio.

For our first 100 000.00$, what I am looking for is stability. Not magical gain. And I continue to believe that if I continue to diversify my portfolio, we’ll be able to make great things happen.

Today, we use the money earn by our sell of Creststreet Alternative Energy Fund to purchase 200 units of The Consumers’ Waterheater Income Fund (CWI.UN). So it’s now official, we now own 200 units of The Consumers’ Waterheater Income Fund (CWI.UN). This investment is from our Tax-free savings account.

Since March 5, 2010, many changes happen in our investment portfolio in a very short period of time. We need to update our investment portfolio, but it won’t until a couple of days. Reason why?

I currently have just a bit more than 5 000$ to invest. A 1 000$ here, a 5 000$ there… Wonder where the 5 000$ is coming from? Well, it’s coming from a ping-pong game. To know what it is about, I will be mean, if you are a new reader, you will have to refer to previous posts. And to the ones who knows what I am taking about well, to them, I will say: OUPS I DID IT AGAIN! lol….

I have to say, this morning was quite busy. I ply ping-pong. I borrow 5 000$ at 4.9% for 6 months. Initially, that money was supposed to be use to pay off one of my credit line. I know I said I won’t borrow anymore… But it’s just for 6 months and I can manage this new loan in my budget payments. After this, I am done, no more ping-pong game. Ok, I have the money, nice, but what am I going to do with it? I was thinking about investing in Just Energy Income Fund (JE.UN). I know, you’ll probably say, more units from JE.UN. But did you know, Jean-François Tardif had well rated Just Energy Income Fund (JE.UN) in, I think, 2009. Ok, we are in 2010, but I think the situation with JE.UN pretty much the same, if not better than 2009 since JE.UN had made some new acquisitions since that time. Right now, JE.UN seems a good investment. So how about 300 new units of Just Energy Income Fund (JE.UN) in our portfolio?

Why not?

See the effect on our dividend income (for the non registered part):

Currently, with The Consumers’ Waterheater Income Fund (CWI.UN) included, we have an annual dividend income of 3 501.56$.

300 new units of Just Energy Income Fund (JE.UN) will provide us 432$ in annual dividend income (1.44$ per unit).

3 501.56 + 432$ = 3 933.56$ in annual dividend income (around 327$ per month in dividend income).

At almost 4 000$ in dividend annual income, we definitively going to invest in 300 units of Just Energy Income Fund (JE.UN)! I don’t know what’s going to happen in 6 months from now once my 4.9% will have expired. But that’s just in 6 months. We also have a previous ping-pong with CIBC that should end in the next couple of months… So we are going to see what’s going to happen to all of that fantastic money.

And by the way, we had received today our Bell Aliant Regional Communications Income Fund (BA.UN) dividend. We had received 24.17$ in monthly dividend from Bell Aliant Regional Communications Income Fund (BA.UN).

Monday on the go

Another week begin on a good speed. My stocks and units investment portfolio is now at 43 797.30$, which is an increase of 238.70$ compare to what I hold on March 5th. My RSP portfolio with Emera (EMA), EnCana Corporation (ECA) and Claymore Gold Bullion EFT (CGL) didn’t do that well. I actually lost around 200$ from this group of investment. But nothing to worry about, its just the normal fluctuation of the stock market, from my point of view. But I have to say, I worry about EnCana Corporation (ECA) as the stock continue to loose some value without no reason. Just a bit scary, to tell you the true.

Newest dividend

I just received 29.18$ in monthly dividend from Enbridge Income Fund (ENF.UN). With the help of the DRIP, I earned 2 extra units of Enbridge Income Fund (ENF.UN). At this point, holding Enbridge Income Fund (ENF.UN) in my investment portfolio is very interesting because each unit now worth 13$! Nice profit right here with ENF.UN.

Creststreet Alternative Energy Fund is now part of the past

Last week, I place a sell order in order to sell all of the units I hold of Creststreet Alternative Energy Fund. I just received the cash from the sale: 1 100$. At the end, I made a profit of 100$ of this sell. I am now getting ready to make the purchase of 200 units of The Consumers’ Waterheater Income Fund (CWI.UN). I fix my order at the max price of 5.30$. Today, The Consumers’ Waterheater Income Fund (CWI.UN) close at 5.28$. So I guess the trade will go through. I prefer place my order in advance because I have things to do tomorrow morning before going to work, like getting my taxe papers ready among other things.