Taxes in 2009: A CRA Snapshot for the Young, Childless Types

In thinking about how much I want to make next year, this comes into consideration.

The increase of the basic personal amount (the primary deduction) isn't terribly exciting, offering about $50 to your single middle income earner. A small boost to the lower tax brackets is more than welcome in a year where I won't be earning a lot but I'd like to keep what I do earn - and it gives me an an amount to aim for.

If I cash out my pension it's likely I'll lose at least a quarter of it, assuming I have a job in the Fall. If I don't have a job in the Fall I can probably cash it out without risking those consequences. It kind of serves as an emergency fund until otherwise designated - yet is making a decent rate of return in an economy where that's not typical.

Even if I can't move the funds into a TFSA, putting $5000 into an RRSP would go a long way towards making $25K available (temporarily and penalty free) when I might finally be ready to throw down on property in a few years. The fact is, I don't have anyone else to provide a down payment (or dowry... or inheritance...). Am I saying I'm going to buy somewhere and stay put? Not necessarily. I do know if I move with my Other next year then I may be establishing a five to ten year base in whatever community we wind up in and a mix of owning and renting out a basic piece of property would be timely.

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I ran some numbers today and in a couple of days my financial house is rapidly coming into order. The money to pay for my time off is flowing into the bank and I can't wait to bust out in about a month. Most of the stuff on my financial 'to do' list, like making sure claims and reimbursements get filed, has been done. The taxes are filed, I owe no one rent, and my phone will quietly decline in thirty days and wait with the rest of my stuff for a return. Within forty days I'll be somewhere on a beach... until Fall. I really can't imagine not taking these three months and doing exactly what I want this year because too soon it will be next year.

I Dedicate This Award To...

I've been incredibly absent because... work has been hectic, my other is back on the scene after being away for a couple of months, I finally made it out of the city to see my best friend and I'm moving more or less on Friday.

I got a blog award?! Well, a somewhat informal one. But nonetheless... have you SEEN this thing I've been calling a blog? Colorless and difficult to navigate and prone to typos and extended diatribes. Motivation to improve it.

Anyways. Here are seven things I like (and what I read, none of which I anticipate will know about or feel the need to meme on)...

(1) Monocle magazine. The podcasts are decent, too, but the print version is an intellectual vacation. The style points of Dwell meets National Geographic and just enough Economist-style coverage for a Saturday perusal. And, oh, the fashion spreads. My goodness. It's also printed on a matte/glossy mix and the perfect size.

(2) The smell of wax in the morning.

(3) Scars. I have a couple of wicked scars from a life well lived and think they're hot (they're not disfiguring, just character marks). I would never get them 'fixed.'

(4) Wool blend suits. It's a hallmark people can't quite place; I like how they hang and how they make me feel when I walk into a room. Down with polyester, I say!

(5) Trains. Train travel is, in my opinion, vastly underrated. And it lets me indulge all relevant Before Sunrise fantasies.

(6) People. I'm really picky about friends but I genuinely enjoy getting to know people, their stories, how they think about things, what they like. I like being in places where there's a constant flow of new people.

(7) Yoga. I've done yoga everywhere I've gone and I'm always amazed at how I can learn something new from every teacher I've met about something that seems so simple. My practice is fairly intermittent so I'm not exactly going to do any asanas that will blow any minds.

And here's what I read on the daily, beyond Brunette on a Budget, which is so well written I sometimes have questions. Can Brunette really exist!? Can there really be a Holly Golightly who doesn't rely on powder room stipends? Do non-Italians really get married in Italy?

Anyways.

(a) The Frugal Bachelor - currently there's some kind of transition going on but some of the archives are brilliant - justifying smaller sizes instead of bulk, for example. His morals may be dubious, at times, but at least they're consistent and honest.

(b) Vagablogging - Rolf Potts is kind of the man.

(c) Krystal At Work - the frequency is the substance and it allows a kind of evaluation most people wouldn't be comfortable with. It's like having a friend who will genuinely disclose all her financial choices. And I like her distinctly WestCoast Canadian lifestyle.

(d) Rainy Saturday - has no particular blog theme but the variety is entertaining and the writing is funny enough to be a good mid day diversion. And her musings about the Mac Snack Wrap actually got me to go eat one, which says something. East Coast!

(e) Not updated in forever, but Daily Routines is super fascinating - how, exactly, do successful people work?

(f) Matador Blogs - although sometimes veering dangerously towards being too conventional, still the best source for the under forty set for travel philosophy and advice.

(g) Third World Cash - one of the most useful things in getting some perspective on personal finance is to step outside the context you operate in, even slightly. TWC is young, female and successful - but living in a place where personal finance is sometimes radically different.

At the Mercy of Exchange Rates

Contrary to some December news optimism, the CAD has not recovered yet.

The briefest explanation is that while oil is low the CAD remains low. Interestingly, though, the weakening is attributed to better retail sales than expected, including automobile sales pushing the USD higher. What is most consumption, and specifically automobile consumption, tied to directly or indirectly? Oil.

If oil recovery is delayed a few months, as the spec increases, maybe the CAD gains a little by the time I head abroad.

Oh Canada. Our currency, save for those bright days last summer, has always been the poor sister of the Western world. Only at peak oil did we hit parity for the first time in decades. All volatility is bad volatility, it appears, and because 2009 is expected to be generally bad everywhere it may still be a lean travel year for Canadiennes. Et alors.

"The greenback has weakened against every major currency except for the Canadian dollar."

40L To Freedom: Go Carry On

I really don't like checking luggage. First, it takes time. The only times I've almost missed a flight have been a result of inordinate luggage checking delays (and the only reason I didn't miss either flight was the desperate smile used to jump the line). Second, it limits transit options on arrival. Too much luggage and navigating subway systems is a pain, as is having to monitor your stuff under a luxury coach in sweltering siesta heat. Third, it makes you more of a target in any country, at least until you check in.

However, traveling mostly carry-on requires: (1) some idea about what you might do where you go, (2) going easy on the liquids, (3) limiting. The more you do it, the better you get. Over time, I've developed a standby arsenal of compact products and a very functional set of clothes. None of them involve Gortex.

After a day of reading "what's in your bag" blog entries, some suggestions.

HOW I PLAN AHEAD:

(a) At home, I tuck away basics I'm almost ready to donate - worn shirts and skirts. I take a few with the intent to leave them behind if they survive the trip. This means: I don't worry when it gets dirty, I can send out laundry without fear, and I come home lighter than I left.

(b) I make my own guide book - using a thin Moleskine that will also serve as a travel journal/note pad, basic details and maps. I make notes about what a book really recommends and compare books. I don't make solid plans, but I try to get ideas. In the journal, along with what I do and experience, I record things like exchange rates or email addresses as I go.

(c) Read up on risks and learn medical care; know your insurance. I'm reasonably able to diagnose minor medical problems and treat them, but more importantly I know when things are going sideways and I need to not only see a Doctor but communicate what may be happening.

(d) I hoard sample sizes. Nothing is finer than having just a little surprise after a long haul or before a night out.

WHAT I NEVER LEAVE WITHOUT:

A denim skirt - beach wear, club wear, afternoon wear. Black long yoga pants - fend off harassment and allow for impromptu yoga by the sea. A simple cotton dress, short - it has to be able to go to dinner, survive a light hike, and dance all night. A basic black fitted tshirt, currently non-cotton. A pashmina - blanket on the plane, scarf when it's cold, accessory to your sun dress, way to make airport security treat you like you might be business class. Comfortable shoes that aren't ugly and match my basics.

Aloe Kote sunscreen (SPF 25) - someone finally made solid non greasy non pore clogging sunscreen, they live in Minnesota. Solid shampoo. Powdered detergent or a Sunlight bar. Ear plugs and butterfly band aids that could handle blister triage. Gel strips and bobby pins.

A small camera (+ charger), often a laptop, ear buds, flash drive, inexpensive cell that will hold a pay-as-you-go SIM card (for long term stays/security risks)

A book to read and leave behind. Books can be the ultimate black market, especially in the language you prefer to read in. You can trade with people you meet and swap at exchanges in hotels/hostels.

Surf wax, a wax comb/remover and a fin key. I tend to surf where I go if possible (albeit poorly) and it's good form to be able to share. The trio remind me of my best trips. I also love the way wax smells and have from time to time joined the cult of using it to moisturize... shhh.

ON ARRIVAL:

Oatmeal and vacuum packed tuna. An inexpensive tote bag, often whatever grocery bag everyone uses, to carry temporary stuff, as an added safety feature if you're carrying a grocery bag it seems like you must have been around for awhile, as opposed to an expensive water resistant something that screams MY PASSPORT IS IN HERE. A towel, maybe two if it's beachy. An adaptor, except for Europe where it may be less of a mission to get one before.

Local magazines and newspapers. I conduct small immersions when I go somewhere new - I want to know what they read, how they party, what they're listening to, what local politics are affecting people, and how people communicate. For example, some cultures are blunt. Other countries don't use sarcasm widely. It also helps a bit with language, though translations are pervasive. It's also interesting to compare how my news sources at home are covering a given area.

An item or two of clothing. Sometimes just some inexpensive heels to get into a club, other times something cool and interesting. My only souvenirs are clothes and consumables, 90% of my clothes are not from the city I consider home.

Insect repellent and possibly a SIM card.

I'M CONSIDERING

A candle. Tres romantique, better than a flashlight if power goes down. A pillowcase. Though full linens are often overkill - if I wind up somewhere absolutely gross, I improvise or sleep in my clothes. A can opener.

WHAT I WOULD NEVER PACK:

A passport holder or money belt, most medications (except something for rehydration)

Hiking boots. I find a lot of Western travelers overkill the gear needed to actually explore places. Unless you're planning on a multi-day hike (which this list is not appropriate for) or scaling a legit mountain, you will see people like me doing it in flip flops and feel like a dork.

An SLR. I love SLR shots, but I'm not willing to be diligent enough with my stuff. A laptop is enough to worry about. I'm also just not a huge picture taker. And I make friends with anyone carrying an SLR and make them give me their stuff.

I don't actually travel with an MP3 player outside of North America. I've never missed it. In a lot of unfamiliar places I prefer to be able to hear what's going on around me... And I secretly like cheesy music played by mini bus drivers throughout the world.

Breakfast in America

My Spring Break to the USA was lovely. The wedding was perfect and it was so good to see so many friends and to visit one of my favorite cities.

A few observations were striking.

First, I used to get major culture shock coming to the USA: everything was so consumption driven. I was amazed how often people went to stores, the things they ate in restaurants and how much they talked about consumption-related activities. The America I visited this weekend was a little greener and a little healthier; it was also a place where conspicuous consumption is ending. There has been a distinct shift not yet felt in Canada, though the culture of consumption was never as embedded here.

In the stores clerks thanked me just for looking. Everywhere, people were returning items instead of buying them. No one I knew felt like shopping, mall trips were restricted to specific purchases (other than a small foray alone). My own enthusiasm for shopping was dampened by a pathetic exchange rate but also by the feeling in stores and from those around me.

Second, I noticed the inflation and absence of product innovation. There used to be major disparities between certain items - for example, magazines and paperbacks, or even junk food. Prices in the USA are now virtually identical to prices in Canada, maybe even slightly more with the current exchange rate, for everything I looked at. I also noticed a lack of novelty. America used to be overwhelming in terms of variety and new products I'd never seen before. I was hard-pressed to find anything that differed from what is available at home and I don't live in a metropolis. When I noted this, I began to actively search for the new, the improved, the experimental... there was none.

The GW-era posed a lot of conflicts for my friends but not as many personal challenges. We used to talk about international relations, now we talk about how many unemployed people they know. They are less optomistic, overall, and more aware of current events. Partly, we're a little older and no longer the fresh-faced college kids we were when we met, but the shift is more than that.

In many ways, America now feels a lot like, well, everywhere else.

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For Your Interest, My Personal Economic Stimulus Package Included:

One BCBG winter formal dress <3 ($101)
One evening bag ($21)
One basic skirt suit ($86)
One Litre Export-Quality Tanqueray Gin ($20)

All the clothing purchases were at least 75% off. The alcohol isn't available for purchase here but would be at least double. I was impressed I could get a 1L bottle instead of a 750 mL version, maxing out the duty free limits (1.35 L, I believe).

I cased the duty-free shop for reference. When I fly through in a few months, I'll have layovers one three continents. Not all duty free is created equal! I'm pre planning a few stock-up cosmetic purchases for either June or August and although the shop at this airport was minimal it had all of the necessary basics.

I did run into the tragic problem of the way pants are cut; had this not occured I might have purchased a second suit. I was also disappointed by material quality, but didn't embark on a really extensive process for many of the reasons discussed above.

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Today the NYTimes identified Pay-As-You-Go as the New Cell Plan. Will cell phone companies stop with the draconian contracts and unadvertised service fees as a result of this shift?

How I'm Planning for Travel...in an Unstable Economy

At first, going away this year seemed insurmountable. Student debt upon graduation was an ugly number and the interest payments alone... depressing! Now I'm looking at a departure date in three and a half months. I have three sources of cash between now and then:

(1) a tax return
(2) a matched pension plan (cashing out)
(3) my salary

I need to make sure I have a financial cushion for when I get home. I'm planning on being under contract to work, but the world the way it is I don't want to take unnecessary risks and I need to be able to write a damage deposit cheque for when I get back. This will come from the pension plan. My tax return covers the budget for the trip plus a couple thousand dollars extra for emergencies. I'm going to apply as much of my salary to my student loan as possible in the interim to drive down the interest payments which will be in effect while I'm away.

I know that clearing out my pension is controversial, in the PF world. But, my return on investment for doing so immediately is: the savings in student loan interest, the freedom to take any job that pays my living expenses, and freedom from the tyranny of the bank who tends to operate in shady ways to do whatever it can to take that extra $20 from me each month. I could stay home and clear the debt off a few months faster, but to be honest being able to take time off in my industry can have a high opportunity cost so it's better to do it now than hope I might be able to do it later... I think?

Personal Finance: American Tribute Edition

Yesterday I half-watched the Suze Orman podcast where Suze and Oprah field Skype questions (free on iTunes). Although it was, well, slightly culty (I'm afraid to look into the eyes of the Suze! I feel like she will steal my financial soul, a little), it was better than the book.

My favorite part was when she told viewers not to be desperate, or at least not to appear it. It's a little law-of-attraction (a horrible philosophy, having been to a lot of countries in the world where Thinking Happy Thoughts will not attract a Mercedes and working in shelters where I don't believe people were ruminating on abuse when it started), but also a reminder: KEEP YOUR CHIN UP!

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I'm heading to the USA next weekend! Things I love about visiting America:

(1) Cheap Duty-Free Alcohol
(2) Greater clothing selection & sales
(3) Inexpensive groceries

Things I don't:

(1) The beer, no matter how cheap (sorry!)
(2) The exchange rate
(3) American-cut clothing (i.e. Gap Thighs)

I like hitting duty free a couple times per year to stock my bar or to have bottles on hand for hostess presents. I don't think most Americans realize how heavily taxed Canadian alcohol is: even non-duty free American liquor is ridiculously cheap to us (this may also explain why so many Canadians have at least one passport... we must flee the country to really be able to enjoy most vices these days). So that's a definite purchase.

The rest I'm having trouble with. What's my discretionary threshold?

Do I want to budget for a suit? I know I'll be working in a city where good women's suiting is hard to find. What if I find the perfect pair of jeans/LBD/white shirt - on sale?

I've considered avoiding shopping altogether.

I don't expect to be as tempted as I would have been last summer, given the exchange rate. Before going, I want to review my closet and assess. It's a lot easier for me to not buy when I can visualize an item I have that will serve the purpose of whatever I'm holding for the next two years.

It's a really interesting time to be visiting the United States, I've spent significant periods of time in the country over the last few years and felt like I had a good sense of the zeitgeist; I want to compare. Although I absolutely hate the airport security, I'm looking forward to the legendary hospitality of Americans and intend to gorge myself on Chipotle and Cinnabon. God Bless America, indeed.

Airline Tickets - Booked

I have a secret air transit hook-up, if I told you I might have to kill you, so let's dispense with that possibility. However, to celebrate my covert ticket booking, here's what you might not know:

-agents have access to unlisted fares. This means: not on the internet. It's worth the comparison for anything international. My ticket is $200 less than the best online option (This is actually not as well as I expected to do - sometimes it gets about $400 to $500 less!)

-Talking to someone who specializes in flights to the area I'm going about dates: leaving two days earlier than planned saved me about $200, just missing the "high season" push, which is certainly not advertised widely and difficult to discern without searching several dates in a span

I'm just happy to have that amount settled, although it looks like my cash-only plan for next month may be shelved to make sure I have enough in my account to pay for this thing near the end of the month when my statement comes due...

How to Plan for the Unplannable: Guidebook Mashing

I find the yes/no guidebook debates fascinating.

I don't have much to say beyond what's been said. Yes, it's unfortunate to try and reduce a beautiful place in the world to a uni-dimensional game plan. Yet, it's also unfortunate to get mugged in a South American grotto because you didn't know you should have gone left instead of right.

I've been fine-tuning my information-carrying strategy. I like reading about a place before I go, if only because it builds anticipation and begins to create curiosity. It also helps to know a little bit before going to avoid cultural gaffes and get in interesting conversations with people who are living there. Yet, I want to pack as minimally to increase mobility. Roughly half to three quarters of any given book is not useful to find what I'm looking for.

Here's what I do right now. I am certainly open to altering these strategies.

(1) I buy, or source, any books I will get at a bookstore so I can cross-compare. I usually have an idea of one place I want to visit in an area, and I check to see what the comparative coverage of a sample spot is. If there are no good books, I don't buy a book. If there is a good book, $30 is nothing for the many ways it may save your ass. Do you travel uninsured? Then it is possible guidebooks are not for you.

(2) I make a condensed version of the book, by photocopying (e.g. maps) or just making notes about the most useful advice. If I didn't buy the book, at a local library (though please do not violate copyrights and copy the whole thing). Often, even if I did buy a book I use the library to add additional details from others - maybe there's some random festival only one book thought to list that's worth getting more information on (often via the internet).

(3) I consult blogs and friends to add more detail. When I went to Paris, I sent a quick note to a friend who had just finished a year there. She wrote me back with a very detailed beautiful walking tour that was the highlight of my visit and certainly took me to unlisted places. I like blogs better than review sites because they tend to contain a whole body of work, from which I can gage what kind of traveler the person is and maybe even get in touch with them. I scan popular, vetted travel websites for interesting ideas and news articles.

(4) As soon as I arrive I check out local media, preferably the stuff targeted to my age in the country and newspapers. I rip things out and tuck them into my "guidebook," which ends up becoming a quasi travel journal. In urban North America, even craigslist can give you some fascinating stuff to see or do.

I also do the usual: make friends with bartenders/university students/whoever, but I understand this is actually not feasible for everyone and often depends on social skills, language skills, etc.

If there is less time to prepare I just plan out the first twenty four hours (multiple contingency plans, for example: what if my first choice of transit isn't possible) and make sure I stay in a hub city at a decent hostel. Most hostels in hubs have a guidebook kicking around, if not an entire library. I also really don't mind the LP-heads who use a book as a Bible and check everything off - if you get past having different goals and ideas about travel, they often give a shortlist about what's good/closed/can't miss/overrated and where the book has been dead on or is now totally wrong.

Is this too labor intensive? Just a way of making myself feel like I'm different from being an LP-head in kevlar synthetics and Tevas, when really I'm still not embracing the full journey by letting myself get off a plane a little less prepared? Establishing impressions about a place that will taint my experience of it? Maybe so, maybe so...

Welcome to the Magic Bus: The Employment Implications of Tuning In and Dropping Out

The missing loan mystery was due to a computer glitch. We can dream.

One of the issues I'm having to address right now is explaining why I would abandon "career opportunities" to spend more time travelling, meeting people without pretense, and generally enjoying life.

Short of referring them to this, which would probably reinforce the idea that I'm a slightly unstable drop out.

The most hostility, of course, comes from people who wish they had the cajones to live life on their own terms. Yet, some dissent comes from people who aren't jealous, just curious. And maybe the most disturbing comes from that quiet inner voice who says "you could be just like that guy from Into the Wild. Remember him? Good guy. How'd that one end?"

Am I more afraid of dying without any money or dying without having done everything I could to have fully experienced life? Actually, the latter. I don't expect fully experiencing life to always involve moving around rootlessly. I expect at one point it will involve staying somewhere awhile and having children. I want to experience being able to make an impact by working, leave things a little better than I found them if possible.

How do I convey this without totally destroying my employment prospects for when I come home? Possibilities:

(a) Lie about what I'm doing when I take time off.
(b) Tell a culturally modified truth, making it sound like what I'm doing advances my career and fills out my CV.
(c) Tell the truth and hope for like minds. Or at least open minds.

How do other people deal with this problem?