A look at a regular Canadian making a living in today’s Canadian economy.
Spring is Here … Time for a Financial Tune-up
The warm weather is finally here. Your thoughts turn to spring cleaning and outdoor living. So have you given any thought to tidying up your finances along with your patio?
Here are a few ideas for putting a spring in your finances:
– Double Up on Payments- If you’re like a lot of people, the holiday season has you off to an already sluggish start financially. Why not consider using that tax return to make an extra car or house payment? It’s an ideal opportunity to give yourself some breathing room early on in your fiscal year.
– Shop for Deals – Take a look at what you’re paying each month for phone/internet/TV services, insurance, etc. Contact providers about getting a better deal. Are you watching all of those channels in your cable package? Have you used all of those features/minutes in your wireless plan? Check for better rates on home and car insurance.
– Cash in on Spring Cleaning – You’ve probably got money laying around the house that you didn’t even know about. Books, clothing, tools, and assorted goods are just taking up space. Instead of paying to store it all, make some extra room in your garage and your budget with a yard sale.
– Check Your Credit Score – Make sure all of your accounts are up to date with all three major reporting agencies, and look for any erroneous entries.
An honest assessment of your finances along with a little creativity can go a long way toward a fresh financial start this spring.
How to politely say “No Thank You”
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.
Household Debt By Region Assessed
TD Economics released their report on household debt vulnerability by region today.
“The focus nationally on household debt has raised questions about which regions face the most significant challenge,” according to Craig Alexander, TD’s Chief Economist
and co-author of the report. “This new index does not predict events, but it does shed light on those provinces that are most susceptible to downside risks.”
Its good news for Manitoban’s who are the least vulnerable. Households in British Columbia, Alberta, Ontario and Saskatchewan households were found to be at greater risk with Atlantic Canada and Quebec in the middle.
Holiday Spending Hangover
You did what you said you wouldn’t do over the holidays and that was over spending. Unfortunately, what’s done is done, you beat yourself up over it, and now you just need to move forward to fix it.
First thing to do is to assess the situation. See how much you have spent over the holidays and how much damage was done to those debit and credit cards. Then figure out a payment plan. Determine which debts to pay off first and prioritize when you will pay them off. While doing this, take a look at how much you will be bringing in over the next couple of months and if you have money left over after paying off your fixed debts, put that money towards your extra debt you accumulated over the holidays. Also, stop all unnecessary spending habits such as shopping, dining out, movies and entertainment, and vacations. It may be painful to give up some of your luxuries for a while, but it will be worth it once you have paid off your debt.
Additionally, to find extra income during this financially trying time, try getting your taxes done early and you never know, you might receive a significant amount on your tax return that you can put towards your debt.
The final tip is to learn from this preventable mistake. Plan ahead for the next holiday season and you are sure to make all the right choices next year.
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.
Canadians Act on their 2011 Resolutions Early
TD Canada Trust has just released the results of their Holiday Survey.
Here is a glimpse of the resolutions Canadians are doing today.
- Spend less and avoid buying things I don’t need (53%)
- Look for better deals (38%)
- Build up savings to cover at least two months of living expenses (30%)
Debt Management Tips
The best debt management tip is to not have debt at all, but to be realistic, that is never the case. Whether it’s your mortgage, credit card bills, and monthly expenses, it is hard to avoid debt. So what is important? Here are a few debt management tips to consider.
1. See where your money is going and how much is coming in.
2. Be aware of monthly expenses. Keeping track of credit card purchases, utility bills, your mortgage and so on.
3. Pay off major credit card debit first like bills with appliances, home improvement renovations, and furniture. Before you sign up for another credit card, it is important to see what your options are before you borrow and read the fine print.
4. Be sure to have a plan. Plan out how much money will go to each expense and payment.
Debt may be hard to avoid, but it can be easy to manage.
How to Spend Wisely During the Holidays
Christmas is just around the corner and holiday spending may get in the way of your budget. It is important not to get carried away with gifts and décor. It may be helpful to create a holiday budget to keep you on track.
Start by setting an amount you are willing to spend this holiday season for items such as gifts and decorations. Remember, once you have your budget set – stay with it.
Holiday Budget Tips:
- Try changing it up this year, instead of having a huge party, try having a small dinner with close friends and family. This will help you scale down on spending a lot on entertainment and decorations.
- Also, on a future note, shop for gifts year round and avoid the holiday rush all throughout the winter months. In addition, search for the deals. Look through your weekly flyers for gifts and compare prices between stores.
Remember, try not to get caught up in the holiday excitement and spend like crazy. Always check back to your holiday budget and make sure you are sticking with it.
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.