The Gap between Knowing & Doing
Posted by Gail | Filed under Money Management
Alex and I were chatting the other day about how nicely she’s growing up. She’ll be heading off to university this Fall and I’m pretty pleased with her focus and her resolve this year. Despite her tender age – she’ll have her 17th birthday just a few days before heading off– I think she’s ready. She seems to have beaten back the demons that kept her from achieving some of her goals… finding a way to fill the gap between knowing what she should do and actually doing it.
It’s a big problem for a lot of folks, this gap between knowing what to do and actually doing it. Sometimes it happens because we seem to have so many choices and things are so complicated. It sure can be overwhelming. The world is hell bent on giving us 43 versions of the same thing. Really, do we need more than one version of “Hoarders” on TV? And have you seen the variety of laundry soap now available? Never mind TV sets, paint, and indexed funds.
While there are a dozen different variations on the financial tools you need, from accounts from which to choose, to investments, to ways to get out of debt, it all boils down to what will work for you. You have to start by figuring out what you really want, and then only look at solutions that will fit that need. If you want to paint your room green, first you think about whether that’s a blue/green or a yellow/green and then you focus your attention. Ditto your choice of credit card: do you want to travel, are you looking for points, or is the interest rate going to be the deciding factor?
Simplify your decision making by making a list of what you do and don’t want. Then find the much smaller range of products that satisfies your list. Don’t want a laundry soap with a built-in fabric softener? Wipe those two-for-ones from your vision. Never bounce cheques? Then you don’t need overdraft protection. Hate the idea that your principle could be wiped out by a sudden downturn in the markets? Stock-based investing is not for you. Never mind that the returns are higher. Or that people will make fun of you for sticking to GICs. It’s what YOU want.
If you’re shaking your head because you just have no idea when you’d ever find the time (or is it motivation) to actually figure out what you really want, your problem may not be choice, but procrastination. I’m not sure why some people continually postpone doing important tasks – as if they are magically going to resolve themselves. Is it just laziness? Is it because we don’t know how to go about getting started? Or is it simply because we don’t wanna?
Well, the chequebook isn’t going to balance itself, not are the bills going to pay themselves, so if you’re a procrastinator you’ll have to find a way around your delaying tactics. One way is to make a date with your money – 60 minutes on Tuesday nights – and then keep that date no matter what. That’s your Money Management Hour, and you can’t use it for anything else. If something comes up that steals that time from your appointed task, you have to give it back within 48 hours.
Hand-in-hand with procrastination walks inertia. You’ve heard me talk about this before. It’s easier to keep doing the same ol’ thing (nothing) than to change, so we stay mired, like one duck stuck in the muck. If you’re now willing to accept that this isn’t working for you, then today’s the day you make a list of the changes you want to make. Go ahead, write ‘em all down. Then pick the one thing you’ll do differently today. Do it all week long. In a couple of weeks, you can pick something else from your list and get busy moving. You’ll have moved inertia from a force working against you, to one working for you.
Perhaps nothing does more to keep us from closing our gap that over-optimism. I’m all for optimism, it’s the “over” part that has me scratching my head. “I’ll always make more money.” Hmm. Have you seen our economy? “I’ll pay it off tomorrow.” When exactly, tomorrow? “The Universe wanted me to have it.” Ah, the universe, that big empty nothing that’s going to be there for you when the bill comes in.
If you want to sip from the cup of reality, nothing will do it for you faster than making a budget and tracking your spending. It’s been rumoured that half of us don’t have a budget. No wonder we’re in such a mess financially. If you don’t think you need a budget because you make “more than enough”, might I suggest that your over-optimism is tinged with a little over-confidence.
July 5, 2010 at 7:15 am
my Money management hour is at 8 am (or 9 am if I sleep in) every saturday morning. it is the first thing I tackle before looking to see if my wife has created a honey do list. I get updated on all of our investment accounts and I spend time updating our budget.
When I was climbing out of debt, I tried many things till I found that a combination of advice was what I required to make the leap forward. the hardest part was actually the move from Knowing I needed to do something and actually start doing it.
regards,
Jason
July 5, 2010 at 8:02 am
I find this to be one of the main sources of people’s unhappiness: their unwillingness to do what they KNOW needs to be done to change their situation.
For this, I am no exception. At times, in moments of despair, I would easily name a few solid solutions to fix the upsetting situations, but wouldn’t commit to physically availing myself of these very same opportunities for improvement.
Sometimes, like Gail mentioned in the article, I was lazy. Sometimes, I simply put it off, but most of the time, it was downright FEAR. Fear of failure, fear of unexpected success, or fear of an unknown.
When getting out of debt, there comes a moment when you MUST write down the numbers, write down your income, work out the realistic length of time it would take to pay off your dues and sit down with that ugly reality and deal with it. Luckily, it only lasts until you truly begin to do something about it. It is never hopeless.
It begins with small steps, then strides, and eventually leaps and bounds to success. All you need to do, is to take that very…first…step.
July 5, 2010 at 8:21 am
This is such a basic common sense philosophy that applies to so many aspects of our lives…we can be in control and get what we want…
Want to lose weight ??…eat less and excercise more…
Want more money??…spend less and save more..
Quit smoking??…smoke less until you’re done…you get the idea…sometimes it’s the simple system that works the best…know what you want and then make it happen….it’s not going to happen overnight…but if you have a plan and actually put it into play you can succeed!…it is all about YOU…your health, your peace of mind, your security etc….when you are taken care of you can take care of those around you…(just like on the airplane…if the oxygen masks come down put yours on first and then assist anyone that needs it….makes ALOT of sense in so many areas of our lives)…this is a good post Gail!!!!!!!
July 5, 2010 at 9:41 am
Having a system in place is benefical all around.
For me, it’s generally every other Thursday that I balance our books. It works for us since most payments are automatic.
Another area that it’s helpful, is housekeeping. I do certain tasks on certain days so that I’m not overwhelmed come the weekend and have a whole house to clean.
Today is laundry, tomorrow is the bathroom etc.
Sparky I was on a flight last year and the Flight Attendant was giving his speech about exits etc. When it came to the oxygen masks, he stressed the importance of putting the mask on yourself before assisting others, then he said, “And if you have more than one child with you – pick your favourite!” – I almost busted laughing!
July 5, 2010 at 9:48 am
We have definately fallen into that category…seems like there is never an end to the things we can spend our money on. Or how easily we can convince ourselves to do that. We are slowly moving ourselves out of just knowing and into actually doing.
RBC now has an interactive budgeting/financial tracking program available online (free)–it has fancy graphs and charts, but what I like about it is that it quickly identified where our overspending is. We already knew that, but something about it popping up on screen in red and in our faces really drove it home. I imagine its like when the couples on TDDUP see the numbers on Gail’s screen. Either way, its another tool that we can use to track things.
Thanks, Gail for the daily reminder of what we are trying to accomplish!
July 5, 2010 at 10:16 am
We have an expression at our school ” Learning is messy”. Nothing is going to be perfect the first time, or easy. There will be fear, apprehension or that general feeling of ‘I don’t know if i want to tackle another thing’
Same applies to budget, becoming financially aware, debt repayment, diet, smoking or exercise.
Echoing above, baby steps. Just start.
July 5, 2010 at 10:47 am
@ Gail — LOL your mind is awesome…. tv sets, paint or indexed funds! (struck me funny this morning
)
I find that being lazy and procrastinating is alot more work, and still I mostly end up doing that. I’m not sure why I delay so many things….
I don’t have a specific date with money, although I have to look at the previous month’s spending within the first week of the next month (in order to see where I went wrong, where I went right, and what to keep my eye on for the current month). I do all my purchases via one credit card, and check that card online once a week and I am on top of my bank online as well (although I really only use that for cash and rent).
I think the difference between knowing and doing is more than inertia. It’s not quite fear either. It’s some strange combo of the two, with a dash of self esteem issues.
I’m working on it for sure. I’m trying to make my life more about “no excuses” than “I didn’t do this because…. x y z”
July 5, 2010 at 11:12 am
I need to get my act back on track, because my mat leave is ending in 2 months and back to work I will be at the end of August.
I had my spending pretty well managed but since a month or two, I’m going a bit bonanza!!! Summer spending is really catching up on me!!!
Got to get back on track but I’m always setting it off to the day after. My cc is going back up, and I’m closing my eyes on it.
How do you stay focus?? Do some of you fall off track sometimes? How do you get back on track? I’m finding it pretty difficult these days…..
July 5, 2010 at 11:19 am
I am the MASTER of procrastination, I got my butt kicked this weekend, with the hubby not home I decided Saturday I would relax and get my cleaning done on Sunday, sunday came with a great suprise, the hot water tank leaking and my basement full with water
now I got the dishes done boiled hot water reminds me of when things were done back when, what an inconvience!! long story short should have just gotten it done!!!
Without hot water sunday it will be replaced today but as much as I love my house not a complete disaster I hate chores and having a full time job and all the responsibilies of being an adult Suck it up Emily I know there are some perks to being an adult just need to stick to the little changes which will lead to BIG ones!!!
Thanks for the great post Gail,
Emily
July 5, 2010 at 11:36 am
I used to be part of the lazy, procrastinating group, but it was also more than that – there was no motivation within me to get out of debt!
Other than saving a few (ok, lots of) dollars on interest, there were no incentives to not be in debt. For the most part I was able to buy what I wanted, when I wanted it. Why on earth would I put myself through 2-3 years of austerity just so I could save those interest costs?
Just like those on TDDUP, it takes most people dire need to create the motivation to get out of debt – just like most addictions. You need to hit rock bottom before you can recognize it and start to dig your way out.
I was lucky, my motivation came from within me. I realized what the true cost of interest was and came to my senses without hitting rock bottom. I had bought too much car than I could afford and had way underestimated housing and maintenance costs when I purchases my 1940’s home. I was going further into debt every month, but luckily it was ‘only’ by a few hundred, rather than the thousands so common on TDDUP and amongst some of my friends.
So… after all my rambling, what am I trying to say? I think the factor that changes the ‘knowers’ into ‘doers’ is motivation. Some people quit smoking because they want to dance at their daughter’s wedding. Others diet to reduce their blood pressure. Some people get out of debt because it’s either that or bankruptcy and they’re too stubborn to go with the latter.
My motivation is the fact I’m going to ‘retire’ from my current career in 5 1/2 years – it was 6 when I found my motivation. I did not want to retire with thousands of credit card and line of credit debt weighing on my head. I wanted to have the freedom of picking my next career based on want rather than need.
I created my own system following Gail’s rules. 15% of my net pay goes towards debt. I will have paid off all my consumer debt by 1 September
My car loan will be paid by the end of 2011 
Then all I will have left is my mortgage! Not to mention the amount of savings I will have by then 
Helloooo Mexico!!!
I track my spending religiously – my boyfriend gets a good laugh about how meticulously diligent I am (anal and obsessed are the common descriptions lol), but respects it at the same time – and I spend about a 1/2 hour mid and end/beginning of the month (coinciding with my pay periods). So far it is working incredibly well and my motivation is keeping me strong!
Those are my 2 secrets to going from being just a ‘knower’ to a ‘doer’. I found my motivation and I created a system that works for me!
I love this quote by Jim Rohn
It is so true!
“I find it fascinating that most people plan their vacation with better care than they do their lives. Perhaps that is because escape is easier than change.”
July 5, 2010 at 11:40 am
Thanks for the great kick in the pants for a Monday morning!
There are moments when too much choice paralyzes me (especially with shopping — so maybe that’s good), and there are time procrastination leaves me at a standstill too (especially with unpleasant tasks like chores). I have been known to let inertia ride in the direction it’s going (like my low risk diversified investments just going where they go without my input).
So far no real harm has been caused by these issues… but I have been cautious enough not to risk more than I am willing to lose nor spend more than I’m willing to part with over the years. I thank highschool math for introducing me to the terrifying power of compound interest, thus keeping me very cheap.
I think financially, being genuinely aware of where the $ is going and what you really have is the #1 key to staying safe….. and I think it’s the easiest step too. Nothing like a starting point grounded in reality to chase away over-optimism and put into perspective what procrastination can really cost with debt neglect.
July 5, 2010 at 12:37 pm
There was a commercial that ran for years – i t was a woman who said “Don’t hate me because I am beautiful”. Of course I hated her with a passion. Now I find myself in the position of being able to say “Don’t hate me because I only have to spend 10 minutes a week on my finances”.
That sure wasn’t my life for over 30 years. In fact I think I probably spent at least half my waking hours either juggling our financial mess, creating an even bigger mess or lying awake worrying about it.
Creating a budget and living on cash changed our whole world. It took a long time to get out of debt but now with everything set up (on the computer (budget, emergency savings, retirement savings, payments) we quite literally spend no time on our finances. Just check in every week to update the ledger and investments and balance the check book at the end of the month. Twice a year we tweek the budget. The most financially freeing thing that we did was to save up and earn extra money until we had a whole months worth of expense money sitting in our chequing account. By doing this we stopped living pay to pay. Instead the money that we needed for this month was already in the bank on the first of the month and thus the money we were earning during this month was for next month. Made budgeting and paying bills a snap since the money was already there and you could tweek for the next month if needed.
I have to go away for 3 months for some cancer treatment and where I am staying there is no internet. The first thing that is going into my suitcase is going to be our budget binder and my calculator and my Dad’s mechanical pencil. Crazy I know but I am actually looking forward to hands on budgeting and “financing” again. Oh and I must buy stamps!
July 5, 2010 at 12:46 pm
@Sunshine absolutely! Although I like to think that when I do have problems I lean as far off the track without hitting the side of the mountain as possible.
I stay motivated by thinking of what my “end” goal is… which is retiring at a decent age, with some cash in the bank. I also make it into a mental “competition”/”game” to make it more interesting.
The “how little can I spend this week game” – LOL
The idea that money was a finite item — was boggling to me. I never really got it until recently.
@SophieW Great quote!
July 5, 2010 at 1:41 pm
@ Maureen – All the best with your treatments!
Question – I had a meeting with the bank the other day to discuss some “getting back on my feet after bankruptcy” (just going into my last year before being cleared) issues. I was planning on having about $1000.00 emergency savings that I keep in my chequing acct for quick access. She told me that was a bad idea and to put it into my ING savings. I don’t want to do that because its not quick access. Any suggestions or ideas? Thanks!
July 5, 2010 at 1:44 pm
Off topic~
Maureen – may those 3 months fly by…the end results be celebratory…perfect health the reward for your perseverance. Your sense of humour will keep you in good stead. We’ll miss you here!
Good luck!
July 5, 2010 at 1:59 pm
NSBG:
TFSA: savings account (usually the best interest rate). Use the account according to the rules.
Maureen:
All the best!
July 5, 2010 at 2:14 pm
@ NSBG:
What kind of emergency would you have that you can’t wait 24 hours to have the money appear in your account?
If you are aware that you’ll need some money to pay an auto-payment, why can’t you simply transfer the money over from your ING account?
The other thing to think about is if it’s your emergency money, having it in your chequing account could have you thinking you have more spending money available than you think!
I keep my savings separate from my chequing account – if, for example, I have an emergency today, I can transfer the money today (anytime before midnight) and have the money available at 9 AM tomorrow. It becomes available during the next business day.
July 5, 2010 at 2:35 pm
Thanks Marie and Emma. I was thinking of a vet emergency or something of the sort when you need the money right away… Auto payment certainly doesn’t meet my criteria of an emergency and all are already preplan in my budget.
I completely use the jar system and don’t touch my bank account once I have my jar money out for the pay period so although I do understand your point I’m not sure it would present such a temptation for me.
Perhaps I should set up the TFSA through my bank but the interest they offer is less than pennies but still better than nothing on my chequing accout. I was thinking I would keep the min balance in there so I could have free transactions but I think its well more than $1000.00. Anything over and above that amount I want to put in my ING so I can at least earn a bit of interest.
July 5, 2010 at 2:35 pm
Maureen, your positive attitude will carry you through, and all our prayers from your friends on this site. I got a good sip from the cup of reality three weeks ago when I fell and broke my ankle. Both full time and part time jobs on hiatus just like that. And I was so looking forward to July with it’s three paycheques, which would have gotten me a buffer in the bank. I had one week’s earnings coming that week that went to top up the bank account and cover my rent. Other than that I have been penniless, and it is making me very stressed out. Being honest with the utility companies was good, but they are all expecting money soon, and EI won’t come for another ten days and from doing the figures, I know there won’t be enough for everyone. I will be taking in a student boarder in mid-August, which should help me catch up once I am back to work. I understand and agree with Gail’s mantra to start saving. even if a small amount. Unfortunately, when your income disappears overnight, it is quite a shocker. My disability insurance at work (which I thought would be sufficient if ever needed) is only effective after 6 months! EI takes quite a while to get, and all the running around that is required to get the ball rolling makes “STAY OFF your feet for four weeks” a neglected order. All that will result in is a longer recuperation time. Don’t ever think it “can’t happen to me”, because even something as simple as walking your dog can change your life in a split second. Maureen, I had every intention of using my extra July pay to start that ‘next month’ fund, which I think is an excellent idea. Guess it will just have to wait for a while. I was happy that I didn’t injure my sewing foot, until last week when I stubbed my right foot on the crutch (head/arm/foot co-ordination problem?) and broke the fourth toe!! Two days later, smashed it again!! Needless to say, I had to wash my own mouth out with soap, cuz I had one long overdue massive temper tantrum when that happened:) I think I needed the outlet – I feel better now… Moral of this story is – it can happen to you, are you prepared?
July 5, 2010 at 3:06 pm
Maureen,
Good luck with your treatment. Remember that, as long as it is YOUR decision, it is the right one.
Chloe
July 5, 2010 at 3:33 pm
Maureen,
As your comments are always the first I look for to read, your absence will be felt. Good karma is being sent your way. Best of luck, and good health to you.
July 5, 2010 at 3:55 pm
Thank you every one for your good wishes. Hope you recover quickly Suzanne and the student lodger sounds like a good idea. Were you able to get the disablility insurance from your car? My friend just had to go to court to get hers from Toyota! She won (no question!) but is really furious.
I have been through this stemcell transplant once before three years ago and it was tough but successful and my doctor and the Vancouver General Hospital are cutting edge so I am quite comfortable with what has to be done. I leave in 5 weeks. And while there I don’t have to cook for 3 months! and after I get home I am not allowed to do any vacuuming for 6 months (and am such a great whiner that last time I stretched it to almost a year).
My illness has shown me just how important and wonderful our Universal healthcare system is – we would have been completely bankrupted if we had American style healthcare. Actually I would have been dead because this treatment is considered to be experimental in the USA so is not covered by 99% of their health insurance plans . When I was undergoing treatment there were 3 Americans with me. They each had to pay over $280,000. Just for fun my husband and I added up all of the income tax we have paid for the past 20 years. My American friends say that we pay too much tax because of our healthcare but that actually isn’t true. If all the tax we paid had gone just for healthcare my two treatments would have been covered but then we would not have contributed a dime to anything else that our taxes go for. So we actually get good value for our healthcare dollar. I am eternally grateful to all the Canadians who have contibuted to MY healthcare and am happy that I have contributed to theirs.
I have found that emergencies tend to travel in packs. Always more than one. My medical emergency that came out of the blue showed us just how important it is to have that emergency fund in place just as soon as you can do it and to keep building it. When I got sick we had very little left over from previous recent emergencies so it was quite difficult. I knew that there was going to be a repeat performance so for 2 years we have been saving a lot. I am self employed so it is really up to me and my husband has saved all his vacation time so that he can come with me. Right now I feel lucky. There is another patient here in my town who is going down at the same time for the same treatment and his family does not have any emergency funds (well he is young and they have little kids) so we have all been busy fundraising. Enough to get them through I hope. Our healthcare pays for treatment and medical unemployment insurance can just about keep you fed but you still have to pay for the rest of your daily life. When you are ill you are supposed to live as stress free as possible because stress slows down the healing. I cannot imagine how awful the stress of having to pay for the medical care on top of worrying about paying for our normal expenses or facing bankruptcy would be.
July 5, 2010 at 4:06 pm
NSBG – we have TFSA at ING and also part of our emergency fund in an ING savings account and whenever we have had to transfer money out it has taken just 24 hours. On the other hand when we send money from our regular bank to ING it takes over a week. We also have some emergency savings – for veterinary bills mostly – in a local bank savings account where the cash is available instantly through the ATM if we need it.
July 5, 2010 at 4:30 pm
@ NSBG – I second people’s opinion to keep it in a TFSA account linked to ING if you have impulse control issues. Depending on your credit history, if you can qualify you might want to setup a LOC available with your regular account if you really need money that day, or overdraft protection. Please remember that I’m not advocating using a LOC as emergency fund, just this way if you need cash now and not in 24 hours, it’s an option.
July 5, 2010 at 5:32 pm
I will greatly miss this message board as I read it every day and feel you are all cyberfriends. You post so much that is not only of interest financially but also such fun about your lives. So many different experiences, ideas and opinions. I love Geoff because he sees things very differently from me and sure gets me thinking and actually changing my mind every once in a while. Unfortunately the Cancer lodge where I will be staying has only shared internet at 3 desks and it is most important for those who are working while undergoing treatment to have access to these rather than just for fun. Last time we did try to use my husbands laptop to pick up wireless but he ended up sitting on the balcony railing with one foot in a tree and me holding on to his belt in order to get a connection so it did not work all that well. However, he just phoned to tell me that all of Vancouver was “rewired” for the Olympics so according to the manager at the Lodge it is pretty easy to piggyback on someone else now. Maybe I can pirate in and still read Gails daily blog.
Suzanne – I hope that you will be able to start a “next month fund” once you are back on your feet -(literally!) It works well because this system actually gives you reaction time. You have a whole month to react to all those little changes in expenses or a big surprise. It is like keeping a safe distance when driving so you can slam on the brakes or change lanes before you make a mess.
Kat – I also play the how little can I spend this week game and when we were paying down our debt it was amazing how even a few dollars saved helped to pay things off. I have now found a way to save a little extra that is quite painless. I put one penny aside for every net dollar that I earn. Now honestly who can possibly object to or find an excuse not to save one cent on every dollar? So far this year I have over 275.00. I think of this as my fun tax.
July 5, 2010 at 7:55 pm
Maureen, I’ll miss reading your posts and an wishing wellness your way. I will confess that i know what i have to do, but an lax at putting in to practice. I’m taking very small baby steps to fixing things, as I normally go all out and burn out quickly!
July 5, 2010 at 10:46 pm
Maureen I hope your feeling better and that your health improves
Suzanne may your luck soon change for the good
I really like this post it was great
July 6, 2010 at 2:39 am
Thanks, all, and especially Maureen. You know, hanging off your hubby’s belt could have given onlookers the wrong impression…. Keep your fingers crossed, I might sell my horse this weekend. My riding days are over, I’m thinking. Our union is in negotiations, and retro pay will be coming eventually. A boarder is on my horizon, so all these little things are going to help pull me out of the pit I fell in. The paperwork is in the works to get the retroactive disability insurance on my truck loan, and I might even get EI before I get back to work!! I am done with the pity party, and well enough now to get to my sewing machine – a bit of income producing ability there again. Maureen, get well quickly, and hopefully you can keep us updated on your progress.
July 6, 2010 at 9:07 am
@ Maureen – all the best. g
July 6, 2010 at 10:42 am
[...] This post was mentioned on Twitter by 2 Cents, Neil A. Grippa. Neil A. Grippa said: The Gap between Knowing & Doing « gailvazoxlade.com: I love this quote by Jim Rohn
It is so true! “I find it fa… http://bit.ly/bOte6k [...]
July 6, 2010 at 11:08 am
Maureen,
All the best to you and your family.
July 6, 2010 at 2:54 pm
@Maureen Hopefully you’ll be able to piggyback on the “rewired” internet… I find that the morning is much nicer with a hot cup of tea, a little bite to eat, and a little financial wisdom to ingest. And especially when not feeling well, it’s a little ray of sunshine.
I *love* the idea of a ¢ for every $1 – net or gross? LOL
I already take all of my toonies and loonies and put them away for “mad money”. When I want to go to the St. Lawrence market and pay way too much for cheese or something.
I don’t know what I would spend my 1% on… maybe I should look at my budget and figure out which categories should be 1% (my income is fixed – salary, so I can do it without hoarding pennies).
July 6, 2010 at 3:46 pm
Have any of you that have been success in either getting rid of your debt or on the road ever thought of mentoring others? We all would like a home visit by Gail, but what abot emailing and mentoring others? I know I would be interested in having someone come along side me and offer advice.
July 6, 2010 at 5:34 pm
Kathryn:
Check the link Gail Clubs. You might be able to find some personal help in your area.
All the best!
July 6, 2010 at 11:31 pm
Maureen, first of all best wishes.
Now the money stuff. If you’ve done this before you may already know the deal with claiming your medical expenses on this year’s taxes. I had surgery in the US 6 years ago. I’d never had enough medical expenses in one year to claim it before, but that year I kept meticulous records. I had a preop trip from Ottawa to Ohio and another for the surgery. Initially I tracked the gas, meal and hotel costs. Then I discovered I had a choice to claim mileage rather than actual gas receipts and a per diem for meals rather than restaurant receipts. I spent 3 weeks there recuperating in hospital and then hotel we had hotel and meal costs. My husband’s meal expenses were also eligible as he was considered my support person.
By claiming the mileage (not the actual gas costs for my little Civic) plus all the hotel and the per diem for meals (not our actual meal costs) our claim was for significantly more than our actual expenses and all perfectly legitimate – check the current tax rules but in 2004 it was your choice to claim by mileage rather than actual gas costs and the food per diem rather than actual meal receipts. With the refund we got we actually made money on the trip. (we booked a hotel with a good desk set up and took a device so he could make calls via internet. He was able to work half days and really reduced the amount of vacation he had to use up).
Once we were over the threshold of having enough expenses to make a claim, then all other costs in that year were also fair game. I made sure my husband nd I got in for tune ups at the chiropractor, and tracked all our family dental visits and claimed the $5-10 or so not covered on each of our visits that year.
July 7, 2010 at 9:04 am
@ Maureen: all the best.
@ Kat: thanks very much for answering back to me. Very appreciated.