Coffee no longer a dark hole

I confess: I love my coffee and I can be found in the line up of one of our region’s coffee stores at least twice a day. I prefer drip coffee or a shot of espresso. This means my habit costs about four bucks a day. Not a bank breaker.

Along comes a friend who is passionate about coffee. As the months pass, he convinces me I need a coffee grinder for home and a French Press coffee maker. Says he: anyone can make better coffee than what is served as most coffee shops.

He’s right. I’m now at the point where I can bring out the distinguishing flavours of the varietals. Bet you didn’t know some coffee beans have hints of chocolate. The Kenyan Peaberry I sampled yesterday boasted citrus overtones. Who knew this stuff is just like wine.

So here is the bottom line (this is a money blog, so there needs to be a bottom line): I’m still having two cups a day, but a third of them I make myself. I have invested $250 in a burr grinder and a French Press. Factoring in the beans I buy, I am saving $25 a month. The equipment is paid for in 10 months.

That’s all great, but the real story is I have learned so much about coffee and how best to prepare it. I have met baristas and coffee-loving folks who are sharing their knowledge and passion with me. The hands on approach is taking my appreciation for java to whole new level. Money can’t buy this experience and I have just a little more in my pocket.

Car Talk

Last time I blogged, I talked about creating financial options in advance of sitting down with the lucky car dealer.  After exploring a number of borrowing options, I lucked out.  For the first time in several years, I’m in debt.  The good news is the loan came from the Bank of Family at a most favourable interest rate.

Once the money was lined up it was time to go car shopping.  Before I get to the big money saving lessons I learned, I have to mention the stereotype car salesman exists.  I repeatedly told the sales person at a reputable dealership that I was not making a decision that day.  That did not stop him from repeatedly encouraging me to place my order that day “in order to get the car you want as soon as possible.”  Our failure to communicate cost him a sale.

What I did learn is ask for the fleet manager before talking to any sales types.  Fleet managers have the latitude to offer greater discounts than the typical salesperson and this fleet manager lived up to that reputation without resorting to any of the tactics listed above.  But, be warned, if you talk to a salesperson at that dealership first, the fleet manager will have nothing to do with you.

Once the deal for the vehicle has been negotiated, you are ushered to the business office to do the paperwork.  That’s where the real selling begins.
Car care packages costing $1,200.  Extended warantees worth requiring another $1,600.  Even the insurance salesman had third party added insurance packages protecting one from ICBC deductibles.  Can’t remember the price of that one, but it was more than a thousand for three years.  I don’t have a second’s regret for turning all of this down.

Despite that minor irritation - which I understand is the case at all dealerships - and if you’re looking for a new Honda I would be happy to connect you with fleet manager.  Just contact Nancy for the details.

Creating Options

Last time around, I described how my mechanic bluntly suggested it is time to get rid of my 16 year old car, which is facing many, many expensive repairs.  So I have started down the road to finding my new wheels and it has not been a straight forward trip.

Ten days ago - knowing I was face a screaming busy work week - I logged on to my financial institution’s website to apply for a car loan.  Within minutes I received an email stating my application had been received and that I would get a response by the next business day.

That day quickly passed, as did the next one.  On the third business day, I called the institution’s call-centre to see if through some small clerical error they thought I had won the lotto and no longer needed the money.  The answer was worse: despite the confirmation email they had no record of my application.  They suggested I call my personal banker and begin the process again.

And so began two days of telephone tag.  To be fair, the banker always promptly returned my calls.  But, as anticipated, my week was screaming busy and I was rarely near a phone.  We finally connected yesterday and discussed a few options.  Today I headed downtown to sign the papers necessary to secure me a line of credit, enough to cover the difference between my savings and the cost of a car, at prime plus two percent.

I may never need to touch this pool of credit, but knowing it is there gives me options when I find the car I like.  It means I’m under no pressure to stick with any financing options offered by the dealer.

So, after ten days needed to do a two-day banking job, I’m ready to begin test-driving.

Jack

Money Coach’s response - Jack - may be too lat, but did you know VanCity Credit Union gives very favourable interest rates if you purchase a ‘green’ car?  Hybrids etc?

Kat — hoooorraaaayyy!   I totally celebrate with you.  I hope readers of your ‘financial diary’ will take encouragement.  Life has its tough moments, as you have laid out in earlier posts, and then, our efforts pay off.  Tip of the hat to you.

Celebrating success!

After a couple of months on hiatus, I’m almost ready to return to the world of blogging regularly. I’ve been busily working away at the current round of schooling and assignments while working full-time, among what feels like dozens of other things. The next blog will pick up the thread of what I did with my debt & RRSPs and how the dust has settled.

For this installment, I’d like to share some success! All of my schooling has been in aid of professional development. Four years ago I made a career change and it has been a continuous process of personal and professional development that has gotten me to the launching pad where I am able to not only work full-time in my chosen field, but also to begin to contract my services for facilitating/educating/motivating on a self-employed basis to help boost my income. The plan is to eventually work no more than 4 days a week, ideally 2 days/week for an employer, 2 days/week for myself, from my own home office.

Last week I landed my first contract to facilitate two workshops at a local college. It is exciting and tangible progress indeed! I’m being paid at my desired contracting rate, which is considerably more than I earn in my full-time work where my position is still advancing towards the ideal target and my salary is determined by an outside agency. My contract rate is what I anticipate I will earn when I am doing facilitation work exclusively, with all the requisite experience and education behind me. Naturally it will increase with time and experience.

For the first time I can truly taste my success because I have concrete results in front of me. Additionally, some other very exciting shifts have occurred recently to round out the vision I have for my future. All of these things are allowing me to feel the distinct reality of not merely what could be for me, but what I believe will be for me - financially and otherwise. What exactly are those things? Well, I will spark your imagination now and leave those until the next blog!

Jack - ouch!  My heart goes out to you.  Cars falling apart is frustrating, and indeed, no small expense.

A couple small thoughts that may provide a bit of encouragement:

1.  Life often delivers unexpected good stuff, too.  Let’s hope in your case, it happens sooner rather than later.  As in, the next month or two.  You may find Kat’s post, above, heartening.  It’s quite a turn around!
2.   Have you heard of auto brokers?  It’s a pretty new industry:  people do for autos, what mortgage brokers do for mortgages.  I know in the latter case, they honestly do save you a chunk of change, by getting the best deal for you (they have more clout than a mere homebuyer).  I imagine the same applies to auto brokers.  Contact me if you want a reference.

Fingers crossed for you.

Kat and Jack will return shortly, but meantime, check out the up-close-and-personal blogs by a recent college grad in B.C., Give Me Back My Five Bucks, and a couple in Ontario, late twenties and $58K in debt, who have said, “Debt Be Gone!”

Happy New Year

I’m not the sort to make New Year’s resolution, but I appear to be out of step with what the rest of the world claims to do.  So, in the interest of world peace, harmony and all that big stuff, here is my fiscal policy for 2007.

- I will endeavour to spend less than I bring home on my paycheque.  I think previous generations called this living within my means.

- Within this I plan to give a small portion of my money away to hopefully make a slight, positive difference in my community.  There is something about giving away money that makes you worry less about it.

- I will continue to hold a few dollars for my future.  I know this is standard stuff, but I am a fan of having a decent standard of living upon retirement.

- I plan to set a good financial example for my son.  Rather than just give advice and live the opposite, I would rather do as I say so he understands the importance of learning to live with money and know that it is possible.

- And I intend to enjoy a portion of income.  Dinner with friends, a toy or two for me and a few adventures with the lad.  Money, to my thinking, is a tool and not the end goal.

So that’s my off-the-cuff five point plan.  I believe it is achievable and the benefit to me is one less thing to worry about.