Are you finding yourself on the right track of saving money? Do you find that it is sometimes derailed by the good intentions of family and friends with their invitations for dining out, at home selling parties and fundraising events?
Here is an article that we found online that provides 7 Ways to Politely Say No.
1. That won’t work for me but I could do this instead.
2. I’m on a strict budget right now.
3. Sorry, I can’t make it to that event.
4. It’s tough finding people to pay for these things, isn’t it?
5. I already ate but I could come just to hang out with you.
6. Why do you want me to spend on this item?
7. I would prefer not to.
Click here to read the article in its entirety – 7 Ways to Say No by Kathryn Vercillo.
December Poll reveals Canadians are concerned!
Knowledge Bureau shared the results of their online poll – “Are families in your community more worried about their financial affairs this Christmas shopping season compared to a year ago?” 78% said yes. Some comments were:
– “They have to curtail their shopping, as they are worried about the financial situation their families are in.”
– “I think everyone is worried about their financial affairs”.
Canadians Borrowing Cheap in Recession
Mark Carney, Bank of Canada governor issued a warning to Canadians on borrowing low interest rate loans. Our household debt-to-income ratio’s are extremely high which makes Canadians vulnerable.
Meanwhile Stats Canada revealed the ratio of debt to disposable income rose to 148.1 per cent. Canadians now owe $1.48 for every dollar of disposable income.
Low interest rates today does not mean low rates tomorrow. Canadian need to keep in mind that interest rates are likely to go up in the future and they should plan for it accordingly.
Money Tools
Which is the best credit card for me? How do I find the best mortgage rates? What is the best way to protect myself from credit fraud? Canadians can now find answers to these questions on a website created by the Financial Consumer Agency of Canada. It features great tools such as mortgage calculators, tip sheets and resource links. It’s a great resource for Canadians to learn about financial products and services offered in the marketplace.
Our very own, Brian Denysuik, President & CEO of Creditaid, visited The Financial Consumer Agency of Canada last week in Ottawa and met with Jane Rooney, Director, and Roger Dowdall, Team Leader, Consumer Education, Financial Literacy and Consumer Education. They have developed some excellent material to help inform us of so many different things when it comes to finances. If you want to see some of these tools click here.
The Wealthy Barber at Credit Education Week
The keynote speaker at the Credit Education Week Professional Day was Mr. David Chilton, Author, The Wealthy Barber.
Mr. Chilton took the stage and talked about one of the biggest challenge consumers face today – everyone is cheering for you to keep on spending! He provided numerous insights for us to consider and take action.
We want to share these with you:
- Always pay yourself first, this is the most important thing you can do.
- Keep in mind that banks never say, oh we are lending too much and should cut back. Banks make money lending so why would they stop!
- Consumers need to restrain themselves from borrowing.
- A personal line of credit is like getting hooked on drugs. Canadians treat a line of credit like a second income and forget that they need to pay it back.
- There are simply too many people carrying too much debt.
- People have maxed out their borrowing at current interest rates, when rates rise there is going to be lot of problems.
- When taking on debt for appreciating assets make sure it can and will be retired before you are.
- When borrowing make sure that your calculations are on after tax dollars, and that the payments will not impact your savings plan and the ability to have fun!
On the Path to Successful Budgeting
So you figured out your income and expenses and have started to budget around it, now comes the next step, keeping track of your money and how to maintain a budget month to month.
There are a few things you can do to keep track of the flow of your money and make certain that you are sticking to your budget. Set goals for yourself. This will allow you too feel the satisfaction of accomplishment. If you set a goal to save money for something important like a vacation or a new car, you will be able to save more effectively and carefully. Another tip is to set appointments. You can do this two or three times a month so you can review your budget and make sure you are on the right path. This can be created into family time, get everyone in your household involved as previously mentioned. Begin to pay attention to the areas where spending is most important so you know where your priorities are in your budget and where money is really needed.
You have reviewed your expenses, created a budget journal, and now learned how to keep track of your funds. You are on your way to having a successful budget and a better understanding of where your money goes.
Money Saving Tips
If things are tight at home, we can adjust our lives so we can save more for what is important in life.
Here are a few money saving tips:
– Pack a lunch to work instead of buying one.
– Take the bus instead of driving.
– Shop for clothes out of season.
– And of course before making a purchase ask yourself – “Do I need it?” “Do I need it now?”
Consider getting everyone in your family involved. They’ll feel included in the overall household choices. Having children involved helps educate them about money which enables them to make good financial choices for their future.
By reducing your expenses, it will mean more money at the end of the month and improved personal finances.