Boomer and Echo

Dan Wesley knows how to save a buck

August 14, 2014

By Sheryl Smolkin

14Aug-saveabuck

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Hi,

As part of the savewithspp.com continuing series of podcast interviews with personal finance bloggers, today I’m talking with Dan Wesley, author of the personal finance blog “Our Big Fat Wallet.”

Dan is in his late 20s, he recently got married and he lives with his wife in Calgary. Finance isn’t just his hobby, it’s his career. He currently works in the corporate finance group of a large petroleum company.

A couple of unique things you should know about Dan:

  • He’s an accountant with a professional designation and a bachelor’s degree in accounting.
  • He’s never had any consumer debt.
  • He pays his credit cards in full every month.
  • He is able to get discounts on virtually everything he buys.

Welcome Dan.

Thank you.

Q: First of all, tell our listeners, why is your blog called “Our Big Fat Wallet”?
A: I guess the name originally began as a joke. When I was in college, I had a roommate who used to say I had a big fat wallet because I carried a lot of coupons and that made it look bigger. And I still do carry coupons. So that’s where the name comes from.

Q: Why did you start blogging and what are your goals for the blog?
A: I started my blog because I’m passionate about all things related to finance and I wanted to empower people to take control of their own finances no matter what their age or their financial situation is. I’m hoping my blog will be a place people can learn about all topics related to finance, but also have fun and interact with others as well.

Q: And how long have you been blogging?
A: Four months.

Q: How frequently do you post?
A: I usually post three times per week on Sunday, Tuesday and Thursday. It was a bit of a struggle keeping that up during tax season, but I managed to pull it off so I’m hoping to continue that schedule in the future.

Q: Tell me about the range of topics that you blog about.
A: I write about everything related to personal finance with more of a Canadian focus, and specifically focusing on saving, investing and frugal living.

Q: There’s probably over a dozen well-known personal finance bloggers in Canada. What do you think is different about your blog and why do you think it’s a must-read?
A: I think the main difference with my blog is that I’m a professional accountant and I work in the finance sector, so readers are getting two perspectives. They’re getting my own personal opinion, but also the technical side as well. But I also try to make my blog as much fun as possible. So I’ve been doing some random company facts articles that tend to get a lot of attention.

Q: How many hits do you typically get for each blog?
A: It’s tough to say because it’s a pretty wide range. My most popular content has thousands of hits and seems to become more popular over time.

Q: What are some of the more popular blogs that you’ve posted.
A: The most popular content so far has been my “interesting facts” post on Costco. A couple of months ago, I posted some facts about Costco that a lot of people don’t know, and it was recently featured in The Globe and Mail and The Huffington Post. Some other popular content has been “Why I gave up on Air Miles,” “How to reduce your mortgage penalty” and “How I multiply my savings.”

Q: So tell me a couple of interesting facts about Costco that our readers might not have heard about.
A: Well, they don’t mark their products by more than 15%. They have some of the lowest staff turnover in all of the retail sector. They haven’t raised the price of their hot dog combo since 1985. Just things like that, people find really interesting.

Q:  As noted in your introduction, you say you can get a discount on anything. Share some of your secrets with us.
A: There’s lots of different ways that you can get discount. For example, when I book a flight, I use discounted flight credits that I bought online, and then I’ll wait until there’s a seat sale to book the flight. West Jet flight credits other people can’t use are sometimes sold at a discount on Kijiji.

Q: What are some other examples of unusual ways to save money that readers or listeners may not be aware of?
A: For groceries, I actually started trading coupons with people last year. I bought a coupon book and I traded with other people who had the same coupon book but didn’t need certain coupons that I needed. And so far I’ve saved over $300 this year on groceries just through coupon trading.

Big ticket items like furniture or a car or a house, I always negotiate off the list price. So when we bought our house, I managed to get about $30,000 in upgrades thrown in just through negotiating with the builder.

Another big way get a discount is to time your purchase. We bought our car later in the year when the new models were coming out, and the dealer was trying to get rid of cars from the previous year and we saved $2,500 off the list price.

Q: So how did you manage to graduate from University with no debt and $10,000 in assets? What are your secrets?
A: The secret is, there is no secret. I did that basically by living within my means and making a detailed budget and sticking to it. So I didn’t have a lot of income for most of those five years.

Q: Did you live with your family or did you live away from home?
A: I lived away from home during the school year, but I moved home during the summer to save money and I worked full time. I bought used text books. I saved on transportation costs by living on campus. We didn’t really go to any fancy restaurants ever. Oh, and I applied for scholarships, as many as I could, even if I didn’t think I had a chance.

Q: Did you work part-time as well when you were in school?
A: No. I wanted to focus more on completing assignments and extra-curricular activities. But during the summer, I worked full-time, probably more than full-time, sometimes at two jobs.

Q: What kind of jobs did you do in the summer?
A: I worked at a casino. And I also worked mowing lawns. Just odd jobs that students normally have, fast food, things like that.

Q: Do you have a mortgage on your family home?
A: Yes, but we managed to save 20% to the down payment to avoid the CMHC Insurance cost. And then we used the builder’s lawyer to avoid paying the legal fees, which saved us around $1,500.

Q: Do you have a favourite personal financial blogger that you read religiously?
A: It’s tough to pick one but I’d probably say Robb Engen’s blog, “Boomer and Echo.” I’ve followed it for years now and he’s been a big help to me. I like that blog because Robb deals with everyday financial issues that anyone can relate to. And he writes in a way that anyone can understand.

Q: Your blog is fairly new. Have you had any sort of money-making opportunities or spin-offs yet as a result of writing this blog?
A: I’ve been lucky enough to pick up a writing job. I’ve been writing for the website howtosavemoney.ca, just on basic tips and tricks on how to save money. And I’ve also received two job offers in the past couple of months, which is flattering, but I’m happy and not looking to leave my current job. But other than that, no. The blog is pretty much brand new.

Q: If you only had one piece of advice to give young people heading off to university or starting their first job, what would it be?
A: It’s probably tough to pick one, but two big things: live within your means and make a budget. If you do those things, I think your finances will take care of themselves whether you’re in school or just starting out in the workforce. And when I say making a budget, I mean make a detailed budget and stick to it.

Thanks very much Dan. It was a pleasure to talk to you.

Thank you.

14Aug-dan

This is an edited transcript of the podcast you can listen to by clicking on the graphic under the picture above. If you don’t already follow Dan’s blog “Our big fat wallet” you can find it here. Subscribe to receive blog posts by email as soon as they’re available.

 


Apr 14: Best from the blogosphere

April 14, 2014

By Sheryl Smolkin

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With spring finally in the air, high school and university students are pounding the pavement looking for work.

The pros and cons of unpaid internships have been all over the news lately with prominent publications cancelling illegal internships that were little more than free labour. On his blog youth and work Toronto lawyer Andrew Langille writes about The Growing Influence of Canada’s Intern Rights Movement.

Talentegg’s Sidneyeve Matrix says instead of waiting for opportunity to knock, students should get out there and create their own career luck. She gives four DIY opportunities that give young people ways to take the initiative and open doors for themselves.

Spring is also the time when many homes are bought and sold. When you apply for a mortgage, the bank will probably try to sell you mortgage insurance. Brighter Life blogger Helen Burnett-Nichols considers whether mortgage insurance or increasing life insurance will give you the best protection.

Robb Engen (Boomer and Echo) also has a new blog called Earn Save Grow. It is still very much a personal finance site, but it focuses less on frugality and more on topics like how to increase your income, and how to save wisely in the areas that impact your finances the most. Check out his latest post Long term outlook: Where do you see your finances in 20 years?

And last but not least, if you use a Keurig or other one cup coffee maker with disposable K-cups or pods you don’t even have to do the math to know you are over-paying for the small amount of coffee contained in the excessive packaging.

But in case you never gave the subject any serious thought, check out Squawkfox where Kerry K. Taylor calculates that if you use Starbucks French Roast Ground Coffee in the K-cup mini reusable filter it only costs 26 cents per cup, while using a K-cup will ratchet the cost up to 67 cents for eight ounces of java.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


Dec 23: Best from the blogosphere

December 23, 2013

By Sheryl Smolkin

Wreath

As the year draws to a close, I am pleased to join brighterlife.ca in celebrating some of the best Canadian retirement writers in 2013. I thank them for including me on the list.

Week after week we link to these and other fine bloggers who freely share their time and considerable insight with us. To get to know some of these people a little better in 2014 savewithspp.com will present a series of podcast interviews with prominent personal finance bloggers.

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Retire Happy. Follow financial expert, author and speaker Jim Yih on Twitter: @jimyih

MoneySense. Follow MoneySense Magazine editor Jonathan Chevreau: @JonChevreau

Boomer and Echo. Follow mother-and-son financial writers Marie and Robb Engen: @BoomerandEcho

Sheryl Smolkin. Follow this lawyer and financial journalist: @SherylSmolkin

Unretired Life. Follow coach, consultant, speaker and author Eileen Chadnick: @unretiredlife

I’m a sonic boomer… not a senior. Royce Shook writes about issues important to Boomers, grandparents and others, who are changing what retirement looks like.

Canadian Dream Free at 45. Follow engineer and financial writer Tim Stobbs on his journey to early retirement: @canadiandream

Everything Zoomer. Follow executive editor and travel writer Vivian Vassos (@vivianvassos) and associate editor and arts and culture writer Mike Crisolago (@MikeCrisolago)

Grey Routes and Tips. Follow travel-for-grownups writer Jane Canapini: @janecanapini

Best from the Blogosphere will be taking a three week break, but I look forward to bringing you more great retirement and money saving ideas beginning again in mid-January.

Have a happy, healthy holiday season with friends and family.

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Oct 14: Best from the blogosphere

October 14, 2013

By Sheryl Smolkin

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From almost the first day you started working, you began saving for retirement by paying into a pension plan or an RRSP. But now that you are on the “home stretch” to life after work, have you decided what you are going to do with your time?

Brighter Life’s Dave Dineen says now that he is retired, “What do you do?” is the question he dreads the most. Read how he seizes the day, does whatever he likes and makes up for lost time.

On FreefromBroke, Brianna discusses 9 things to do when you retire. Go back to school, travel, volunteer, start a business or start a blog! Suddenly your options are endless.

Huffington Post, senior editor Ann Brenhoff ponders how so many aspects of her personal life flow from her work. She says, “For my retirement equation to balance, I need the sense that I am essential to something or someone. And that’s what I fear trips up a lot of us. Is taking a photography class at the library really going to rock my boat?”

Daniel, a guest blogger on Boomer and Echo took a package after a 40 year career. Since then, he has had opportunities to work part-time but he is so busy with hobbies that he no longer wants to be tied down to a calendar.

And David Ashton notes in an August 2012 MoneySense article that Canadians can no longer rely on pensions, government benefits and bull markets to carry them through their golden years. He offers 7 strategies to make your money last including reinvent your job and cash in on the equity in your home to move to a less expensive area.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


Jul 15: Best from the blogosphere

July 15, 2013

By Sheryl Smolkin

blogospheregraphic

This week’s “Best from the Blogosphere” has financial tips of interest to both young and older readers.

On Boomer and Echo, Robb Engen does some financial dreaming about how to be financially free by age 40. He acknowledges it’s a stretch and life may get in the way, but says doing the calculations has given him the inspiration to try and attain this goal.

Retire Happy blogger Jim Yih explores the withholding tax you can expect to pay when you withdraw money from your RRSPs and RRIFs. He says it may not always be in your best interest to withdraw small amounts instead of a larger lump sum to minimize withholding tax. That’s because you must pay income tax on your full earnings so you may have to pay more when you file your income tax return.

Actuary Promod Sharma questions on Riscario Insider how Mike Holmes would fix the financial sector. He says Mike’s prescription for home renovation which is get educated; get an independent inspection; and get things fixed can apply equally to your retirement savings portfolio.

Meanwhile, if paying for an expensive college education is in you or your child’s future, you may be intrigued by Oregon’s “Pay it Forward, Pay it Back” pilot tuition plan. Students will be allowed to go to a public university or community college tuition-free, in exchange for a binding contract that they will pay a small, fixed percentage of their annual gross income for 20 years after they graduate.

But on Give me back my five bucks, blogger Krystal Yee says the proposal is just another student loan plan which may cost way more than the degree would cost if you finance it over a shorter period.

And finally, if you are still looking for a summer job or a recent graduate looking for a career position, take a look at a classic blog from the Squawkfox archives. Kerry K. Taylor says on the road to making it as a heavenly musician, artist, writer, or whatever, sometimes you have to stop being so fussy and take that horrible job to pay the bills.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information with on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


Jun 24: Best from the blogosphere

June 24, 2013

By Sheryl Smolkin

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Most of us would like to retire early and retire well, but it often seems like an unattainable goal. This week we feature blogs with advice from people who have either retired or are well on their way to that objective.

On retirehappy.ca, blogger Jim Yih presents essential information about CPP and OAS, government benefits that are the first leg of your retirement savings.

If you can’t imagine making the sacrifices required to save enough for retirement, see what Tim Stobbs has to say in There is No Sacrifice for Early Retirement, on The Canadian Dream: Free at 45.

The Frugal Trader has been thinking a lot about early retirement lately and what exactly would be required to walk away from his day job and live completely off his portfolio. On million dollar journey he provides a spreadsheet so you can calculate how much you need to save for early retirement.

A guest blogger on Boomer and Echo shares his  View Of Early Retirement. He says he has had opportunities to work part-time but he is too busy with hobbies and no longer want to be tied down to a calendar.

And finally, on Brighter Life, Dave Dineen says, Don’t listen to retirement naysayers. We all have our own ideas of what an attractive retirement looks like. So, don’t let naysayers define your retirement.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere. Share the information on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.


Apr 22: Best from the blogosphere

April 22, 2013

By Sheryl Smolkin

blogospheregraphic

This week our favourite bloggers have been writing about getting ready for retirement.

On Boomer and Echo, Boomer asks Have You Made Your Retirement Plans? — not only saving enough money, but deciding where you plan to live and how you will fill your time.

However, for RetiredSyd, retirement is a already full-time job. She is thrilled to finally be learning to play the piano and improvising retirement as she goes along.

Canadian Finance blogger Tom Drake de-mystifies Locked in Retirement Accounts.

RetireHappy gives you the facts so you can decide whether an annuity is right for you.

And on Brighter Life retiree Dave Dineen realizes he and his wife have 27 bank, investment, credit, and insurance accounts, so it may be time to shut a few down.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?”  Send us an email with the information to so*********@sa*********.com and your name will be entered in a quarterly draw for a gift card.


Jan 14: Best from the blogosphere

January 14, 2013

By Sheryl Smolkin

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With RRSP season in full swing, the blogosphere and more traditional media are chock full of advice for those of you who resolved to spend less and save more in 2013.

Live for today or save for tomorrow? How do you balance small pleasures with big investments? Toronto Star consumer columnist Ellen Roseman reports on responses from her readers when she posted a story on millionaire Kevin O’Leary’s advice to stop buying coffee, lunches, magazines and cigarettes.

BrighterLife.ca tackles How-to-dig-your-way-out-of-debt and Jim Yih shares ideas on how to Make RRSP Savings One of Your Financial Resolutions in his blog “Retire Happy.”

Of course, having enough money is not the only key to a happy retirement. You have to figure out what to do with your time. Tim Stubbs recently found himself with an extra 10 hours a week (wouldn’t that be nice!) when his gig as a Regina School Board Trustee ended. On “Canadian Dream: Free at 45” he writes about how he plans to spend his new-found “free time.”

And on another note, on Boomer and Echo, Robb Engen explores the difficult subject, “How to talk to your elderly parents about money.”