MBA

MBA

I attended high school in the 1980s. High school is when we are largely unaware of our own ignorance. Back then, the landscape for women was changing significantly— most girls would pursue careers, a relatively new expectation, and new career paths had opened to girls, especially in previously inaccessible fields, such as science.

Although I had little interest in physics, I enjoyed Chemistry and Biology. Chemistry was my preference until I learned that chemists often have shorter life spans, which led me to pursue Biology instead. Though I never loved Biology, I found it manageable and decided to earn a BSc. as those around me strongly influenced me to go the science route.

After graduation, I faced the daunting question: what next? Becoming a doctor seemed too demanding, requiring much more schooling, and a brief stint in research made it clear that I didn’t have the disposition for it. I was at a loss for direction. I did well at various things, making it difficult to choose a single path. Also, aside from the leisure time I valued, something my friend Ed jokingly pointed out was my only real passion, I had little sense of what truly interested me.

Ultimately, I let money guide my decision. I chose to pursue accounting, reasoning that accountants are always in demand. However, this required taking a new set of undergraduate courses, a prospect that didn’t appeal to me. So, I found an alternative: I decided to pursue an MBA. The “core” courses in an MBA program would satisfy the prerequisites for an accounting designation, and they weren’t undergraduate courses. Plus, at the time, I could take additional undergraduate courses for free as part of my MBA, so I met all the prerequisites for just $900 per term—a real bargain.

I completed my MBA solely to become an accountant, without genuine interest in the degree. In hindsight, I don’t think the two additional years of graduate-level courses were worth it. I didn’t maintain connections with my MBA cohort and never included the degree on my resume.

For years, I didn’t mention my MBA to anyone—it seemed irrelevant, given that I had no desire to pursue work typically associated with the degree. I viewed my MBA years as something of a wasteland.

Yet, those years taught me a valuable lesson: the importance of considering the journey toward a goal. How will I get there?

Today, I include “MBA” among my credentials, recognizing that the experience, while not what I envisioned, was part of my journey.

Evolving Out of “Stuck”

We do not have to wait to find happiness somewhere in the distance sometime in the future. Our old ideas about the paths to joy have evolved; we can choose happiness now. 

Do you feel stuck? Do you feel like you’re living in limbo? Do you think your destiny is to keep doing the same things repeatedly – tweaking your life as best you can to survive it? Are you at the mercy of someone else? Is your money controlling you? Are the systems you find yourself in trapping you in a life you didn’t sign up for? Do you feel sorry for yourself, unloved and alone? 

There is a path out of limbo, but it’s hard to find and often hard to stay on once you find it, as it requires the evolution of your beliefs about the path to happiness. 

The well-worn paths we can see in front of us are the ones we naturally follow and find ourselves on. The paths the world shows us are so well-trodden and easy to follow that we need to develop our minds and eyes to see the uncommon paths that will lead us to a better place. 

It can be hard to head off on a path that no one else is taking, and it often seems like we are hand-delivered right to the start of those well-worn paths. What paths does the world hold out to us? 

  1. To wait for someone to rescue us. 
  2. To “fix” our lives until they are tolerable. 
  3. To silently suffer until we do something dramatic to propel us out of limbo. 

If you choose path one, waiting for someone to come to the rescue, you will likely wait a long time because more people need to be rescued than rescuers. Path one has us grab onto anyone who provides us with a glimmer of what is missing from our lives. Whether it is someone who is “nice,” “fun,” or “exciting” or provides us with a different experience from the limbo we find ourselves in. While doing something different can give us a mental boost for a time, eventually, we find ourselves back in limbo, as stuck as we ever were, but now we have one more person or pursuit to deal with. We have compounded our unhappiness because we begin to notice that even with this new person or a new hobby, we are still, deep down, unhappy. 

Then there is path two: fixing what is wrong in our lives or a life lived in reaction. While path two relates to what will get you out of limbo, there is a fundamental flaw: you are often tweaking things to live a life someone else has suggested is the right way to live. Path two is the most soul-destroying and dangerous way to live. While path one can invite outside danger into your life, path two creates a situation where you take yourself down into a hole that can be difficult or impossible to climb. 

In path two, you usually don’t have the resources or personality to live that imagined perfect life, but that doesn’t stop you from trying. You work hard to achieve the life reflected in the world around you (especially on social media) or try to live according to what your family has told you is the right way to live. You have a vision of what a happy life looks like, and off you head in that direction, “fixing” your circumstances and yourself to get there. You become the “people pleaser” and the “master of control,” all rolled into one. But it is impossible to please others, and you cannot control the world – chaos reigns. Path two is the path many of us take – and many of us persist for years and years, working hard to get to happiness and achieving as we go. But the cruel irony of path two is when you get to your desired destination (losing pieces of yourself along the way), you realize you are not happy. With this realization that your life has been a struggle for seemingly naught, you fall into anger or depression and often despair. Path two leads to path three. 

People crash their way onto the third, often travelled path, from their combined anger and depression from having travelled path two. Path three begins by doing something dramatic. Doing something dramatic does propel us out of limbo, but we have little control over what happens next. Path three is like setting off a bomb, which, while it creates change, may lead to cleaning up the debris and fallout for years to come, making it impossible to find happiness. 

Finding our path to happiness

Discovering our path to happiness requires personal evolution. If you feel stuck, it may be because you have followed the well-worn path that the world has pointed out. It may take time to recognize that you are following the wrong path, especially if everyone else is continuing along that path. Once you gain awareness that you are lost, stand still, evaluate your surroundings, and consider your resources before moving forward. Instead of rashly choosing any direction to escape being lost, stop and get your bearings. 

With awareness, you can begin again on your journey, slowly and steadily and savouring each step. Begin enjoying the journey, reminding yourself to look for your path, one that may not look like anyone else’s. When uncertain about the next steps, pause again to get your bearings instead of succumbing to panic and remind yourself of who you are, what you dream of and what you carry with you before heading off again. You’ll gradually identify paths that align with you. Along the way, you will encounter fellow travellers with similar aspirations. Whether you continue independently or join others on the same path, you’ll begin to appreciate the fulfillment of navigating a journey aligned with you. Cultivating gratitude for your ability to rescue yourself and navigate a fulfilling path becomes a transformative journey. Carry on, and one day, you will stop, not to find your bearings, but to notice that you have finally found happiness – it is in you, and you carry it with you. Your thoughts have evolved, and you understand that happiness is not the destination – it is with you, every step along the path you take. 

Fear of Taxes

photo-1427464407917-c817c9a0a6f6It’s that time of year again. Busy season for accountants! The Canadian Personal Income Tax filing deadline of April 30, 2016 is approaching quickly!

I was contemplating why it is still so busy for tax preparers as preparing your own taxes is getting easier every year. The tax software is getting cheaper and cheaper (and you can often find free offerings) and it is fairly straight forward to use.

I’ve been wondering why more people don’t prepare their own taxes. I’ve also been on the receiving end of extreme gratitude when I do prepare people’s taxes. The look of relief on some people’s faces when I tell them makes me feel fairly awesome!

I also know a number of people (many people, so don’t think I’m talking about you) that have not prepared their taxes in years. They owe the Canada Revenue Agency many years of tax returns.

Let me be clear, I’m not talking about complicated tax returns. Sometimes if is very wise to hire out to a specialist. It allows you to concentrate on what you are good at. I’m talking about tax returns for people that are employees and/or have a sole proprietorship small business.

What is stopping people from preparing and filing their income tax return?

Everyone has a slightly different excuse or reason, but I think most of them are based in fear.

One fear is that taxes are too hard to prepare, mistakes will be made and the Canada Revenue Agency will come down with heavy penalties and interest for those mistakes.

Other people worry that they may have made too much money during the year and will owe major taxes.  On the flip side, some people will realize that they did not make very much money at all and may take that as a indicator of their own self worth. Better just to not think about it as thinking about it leads to painful thoughts!

Another concern is that it preparing taxes will be a lot of work. If you own your own business and you haven’t got a system in place that tracks your revenue and expenses (money coming in and money going out) then it can be fairly daunting to to think about compiling a year’s worth of information! I understand that fear. I have some clients that hand me their receipts in a shoe box and I don’t like doing that type of work so much either.  It helps to know that I will get paid.

All these fears stop people from paying attention to a big part of their lives. I’m a firm believer in researching and gathering as much information as possible about things in life. It allows you to make informed decisions, plan better and generally be more successful. If you are burying your head in the sand about your financial situation, it is likely that you are getting yourself stuck and are not as successful as you could be.

So,,, what can you do to get yourself unstuck and start paying attention to your financial situation and taxes?

Well, if it is truly overwhelming, you can hire someone to help you. When choosing an accountant, choose someone that you are comfortable talking to. Ask them to explain what they have done so you could perhaps repeat the process yourself next year or at least start to gain clarity about the process – this often gets rid of fear. Yes, that accountant may charge you by the hour to explain things, but in the long run, you will save yourself lots of money.

I have an even better suggestion though. Why don’t you hire yourself? You would be doing yourself a big favour. Pay yourself to do your taxes. Decide what your time is worth and sit down and tackle those taxes. When you’re done, calculate what you are owed and then go and spend that money on something that is going to make you feel happy. If it makes you happy to put it in the bank account and save it, then do that. That said,  one way to get happier is to have memorable experiences, so maybe you can put those earnings towards a fun experience.

Then next year when it comes time to do taxes again you can look forward to it. It’s an opportunity to earn yourself some funds to do something fun.

The 2016 Budget and Families with Kids

photo-1443110189928-4448af4a2bc5My life just got a bit easier with the new 2016 Federal budget that was announced on March 22, 2016.

Under the previous government I had three different calculators to figure out how much people would receive as tax credits and benefits related to their children but this has all disappeared with the new Liberal budget.

Previously, families received the Universal Child Care Benefit (“UCCB”) of $160 per month per child under the age of 6 and $60 per month per child aged 6 to 17.  These amounts were taxable and included in the income of the lower earning spouse.

Families received the tax-free Canadian Child Tax Credit of $1,471 per year per child in 2015/2016 that was clawed back completely if your family income exceeded $118,251 (if you had one or two children) or $157,601 if you had three or more children.

There was also a National Child Benefit Supplement of $2,279 per year for the first child, $2,016 per year for the second child that was also clawed back if family income exceeded $26,021.

Finally, each family was eligible for the Children’s Refundable Fitness Tax Credit of $150 per year and Children’s Non-Refundable Arts Credit of $75 per year. These are each being cut in half for 2016 and will be gone by 2017.

To further complicate things, I was usually trying to figure out these amounts so that divorcing couples could figure out how to split these amounts that the government was going to be giving them for their children. These would then need to be outlined in their separation agreements.

Under the new Liberal government, this has all changed and I have to say hooray.

The budget states that families will receive $6,400 per year per child under the age of 6 and $5,400 per year per child aged 6 to 17. These amounts will slowly get clawed back based on adjusted family net income and will disappear completely for families with income exceeding $140,000.

Here is a link to the Liberal’s calculator.

So while I’m happy about the simplicity of the new Liberal Canadian Child Benefit, most families will be happy because they will be receiving more money with this new benefit. The fact that the entire benefit is tied to a family’s income makes it more fair than the system under the old regime where everyone got the UCCB and Fitness and Arts Credits regardless of how low or high their family income was.

 

 

New Federal and BC Tax Credits for 2015

Federal Children’s Fitness Amount Tax Credit

This is the exciting one. This credit has become a refundable credit for the 2015 and subsequent tax years. In prior years, it was non-refundable, that is, it could reduce your taxes owing, but you would not get anything back if you had zero taxes owing. By being refundable, you can now get up to $150 in funds back. The credit is equal to 15% of up to $1,000 in eligible fitness spending per child.

New BC Tax Credits

These ones are not going to make you rich, but will give you funds for dinner and a movie (depending on where you go for dinner).  If you are a teacher or parent, please take note and keep your eligible receipts and track your coaching time.

BC Child Fitness Equipment Credit

This new credit is related to the Child Fitness Credit. The BC Child Fitness Credit allows you to claim up to $500 in eligible fitness expenses per child. This non-refundable credit is equal to 5.06% of your eligible claim. This works out to a maximum non-refundable credit of $25.30. The new non-refundable Child Fitness Equipment Credit allows you to claim a further 50% of the Child Fitness Credit or up to $12.65.

BC Education Coaching Tax Credit

The B.C. education coaching tax credit for the 2015 to 2017 tax years provides a non-refundable tax credit of $500 for teachers and teaching assistants who carry out at least 10 hours of extracurricular coaching activity in the year. The maximum claim is $25.30.

 

Family Tax Cut

Family Tax Cut

I just finished my first tax return for a family that is eligible for the Family Tax Cut that was announced in October 2014 and affects the 2014 tax year.

What is the Family Tax Cut?

The Cut only applies in certain situations:

  • You and your eligible spouse or common-law partner lived in Canada at December 31 of the applicable tax year.
  • You have a child that was under 18 at the end of the tax year who normally lives with you and your spouse or partner.
  • You and your partner both file a tax return for the year.
  • Neither you nor your eligible spouse or common-law partner elected to split eligible pension income for the tax year.

The Family Tax Cut was brought in to equalize taxes paid by families in Canada who have minor  children.

The Conservative Government wishes to encourage families that have small children to have one parent stay at home and be caregiver of those children. In this situation there is generally one high income earning spouse and one low income earning spouse.

Because personal income tax rates increase with the level of income of the individual, a family with one high income earning spouse will pay more than a family comprised of two taxpayers who earn equal amounts of income.

The Family Tax Cut is essentially a non-refundable tax credit of up to $2,000 that can be claimed by one taxpayer. It cannot be shared between the taxpaying couple.

If you share parenting of your minor child with a former spouse, you can only take advantage of the Family Tax Cut if you have re-married or are in a new common-law relationship. In this case both you and your former spouse may apply for the Family Tax Cut if your child ordinarily lives with both you and your former spouse throughout the tax year.

There are other rules on eligibility so check with your tax preparer to determine if you are eligible.