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Sunday, April 29, 2007

Managing Credit

Part of money management is using credit, wihich is part of everyon'es financial reality. You need credit to buy a home, car, appliance, take a holiday or invest. If credit is not handled properly it becomes a liability. If you don't pay off the balance every month, you will be charged interest on any outstanding balance we if it gets out of hand can be overwhelming.

Applying for Credit:

There are some basic guidelines that everyone must follow in order to get a credit card, car loan, mortgage or line of credit:


  • Know your income and expenses ahead of time and have a detailed statement of your networth.
  • Make sure you have a good credit rating.
  • Give yourself some time to apply before you actually need the credit so you can shop around for the best rates and conditions for you.
  • Read and understand credit application forms before you sign them. Don't be afraid to ask questions when you don't understand, there are no stupid questions.
  • Provide copies of your last T-4 slip or a letter from your employer stating your annual earnings.
  • Give details of any assets and their values.
  • Give details of expenses and money owed. Provide a copy of your annual mortgage statement, if you have a home, and information on loan and credit balances.
  • Match your borrowing to your purpose. Use short term credit for things you can pay off right away such as consumer goods and long-term credit for a home. Don't use a more expensive form of credit than is necessary.
  • Be realistic about what you want to borrow and discuss alternatives if the lender can't fully accommodate you.

Security for Loans: Sometimes you may need to offer tangible assets (real estate, stocks or bonds) as collateral to get credit. This allows you to borrow more and at possibly a lower interest rate. However, you have to be careful because defaulting on a loan like this means that the bank can take whatever you put up as collateral.

Paying for Credit: Credit is access to another's money and interest is the cost of borrowing that money. Interest rates on loans can be fixed or variable:

  • Fixed rates are those that stay the same for the duration of the loan
  • Variable rates are those that change based on market conditions

It is important to read a loan agreement because it will state how often, when, and how much rates may change. Variable rates are tied to an indicator such as the bank's prime rate, so watch this rate. The lower the interest rate the more principal is being paid down, the higher the interest the more interest is being paid and the lower the principal. You have to remember that interest rates fluctuate, they go up and down based on economic conditions such as inflation. If you borrow when interest rates are low make sure you can afford the debt even if interest rates rise.

What interest rate you get depends on many factors including the risk involved. Borrowing will cost you less in the long run if you make bigger payments or make payments more often.

Smart Credit Use: Having credit comes with the responsibility of thinking how you will make it work for you. Here are a few rules to help you reach your financial goals.

  • Watch impulse buying. Would you still buy the item if you were paying cash?
  • Credit - still money, compare prices and value when you are shopping
  • Don't have or use too many credit cards
  • Keep track of all of your purchases and compare your receipts agains your monthly credit card statements
  • When buying a car, look at loan prices. The bigger a downpayment you make the better. Also, weigh the cost of borrowing against using some savings. If you have money put away that is making hardly any interest, use that money so that you don't wrack up unecessary debt. Be aware though that this doesn't mean use all of your savings, you should always hav a financial cushion.
  • For Canadians, the biggest purchase is a home. In a competitive mortgage market it pays to shop around for the best terms and interest rates. Also, explore the many ways you can pay down your mortgage faster -lump sum payments at renewal, doubling up on paymets or shortening the term of the mortgage.
  • Be careful of co-signing or guaranteeing a loan for some one else, you could end up paying for their loan.
  • Pay of your credit card balance every month.

Build a Good Credit Rating:

  • Pay your bills as soon as they come in, especiall credit cards
  • Borrow only what you need and can afford
  • Pay of loans on time and as quickly as possible

Checking your Credit History:

  • You can find your local consumer reporting agency in the yellow pages to find out how you can obtain a copy of your credit file. As this is sensitive information remember to provide appropriate identification.
  • Upon receipt of your credit file request, it will take two to three weeks to be mailed to you free of charge.
  • If you notice any errors contact the reporting agency who will handle it and it will be changed immediately.

Cheap Frill !

To get a free sample of Dove Cool Moisture Hair Care Just follow the above link.

What Kind of Investor are You ?


Got money on the brain? Click the skull to go to a printable quiz that will shed light on your investment style.

Money Mishap: Not Knowing your Financial Worth !!

If you do not know how much money you have to work with, planning and budgeting become impossible. Follow this link to figure out your financial worth.

FinanciElle of the Moment! : Ellen Johnson-Sirleaf President of Liberia



Known as the "Iron Lady", Ellen Johnson-Sirelaf is not only Liberia's first truly democratic president but its first female head of state and the world's first ever black woman head of state. She received a B.b.c in Accounting from Madison Business College, an economics diploma from the University of Colorado and a Master of Public Administration from Harvard. Sentanced to 10 years of prison for standing against injustice she was released early and went to work as an economist for the Worldbank and Citibank in Africa. She was inaugurated January 16, 2006.

Saturday, April 28, 2007

Is there a Genger Pay Gap ?

According to a recent study by the American Association of University Women, one year out of college women working for once year only make eighty cents for every dollare a male counterpart makes. Do you feel you are affected by the Gender Gap? Weigh in and take the Poll at Pink Magazine.



Click the box to find out how to get a raise because according to the above study 72% of women who asked for a raise got it.

Cheap Frills !

Follow this link to receive a free Olay Total Effects Sample

Follow this link to get Olay Coupons and save money


Taking Control of your Finances Through Budgeting

In a time and age where what we want often trumps what we need it is time to reassess and take action. Few people are born with a talent for financial skills but it is something that can be learned through action. The best place to start is by making a budget.

What is a Budget?

A budget is simply an organized way of looking at your finances, it can be as easy or as complicated as you want to make it. It tells you where your money is coming from and when and how it's being spent. The thing to remeber is that it is flexible, your budget has to always change to match your financial situation.

Why Budget?

We all want to have money when we need it. Making a budget helps you plan for short-term goals like paying off your credit card and long-term goals like buying a house.

Who Should Budget?

EVERYONE!! no one else is going to do it for you. You have to be aware of your financial situation. It will give you the confidence to take action.

Know your Values:

Typically people spend their money on what is most important to them whether that is to be financially secure and put money away for retirement or to have the best quality of life today and spend money on a family vacation every year. Take your values into consideration when looking at your spending, this will help you get a better understanding of what you spend your money on and where you can cut down if necessary.

Setting Goals:

Goals give people direction and help them to achieve what they want out of life. Sit down with your family and decide what your goals are, then group them into a short-term categor and long-term category and prioritize them from most important and needs to get done right away to least important. Make sure to put money aside from your spending plan to reach these goals and think about any conditions and circumstances in which changes need to be made to reach your goals.

Getting Started:

You can make a budget on a daily, weekly, or monthly basis just remember that the more specific and detailed it is the better picutre you will get of your situatio. Your budget can be done in excel (follow the link to Budget templated under cool tools) or with pencil and paper. The sooner you start the better.

Figuring out your Income:


How to convert your income to a monthly figure:

If you are paid:

  • Weekly, multiply your net pay (take home pay after deductions and taxes) by 4.333
  • bi-weekly, multiply your net pay by 26 then divide by 12
  • Semi-montly, multiply your net pay by 2

If you receive any bonuses or interest:

  • annually, divide by 12
  • Semi-annually divide by 6
  • quarterly, divide by 3

To Calculate your Monthly Income:

Add up your:

  • net salary as calculated above
  • Commissions
  • Contracts
  • Bonuses
  • Tax Credit
  • Child support/alimony
  • Interest income
  • Investment income
  • Rental income
  • Student loan income
  • Other income

Where is your Money Going?

What are your Expenses?

  • Fixed Expenses: The bills you have to pay and that are usually the same month to month or year to year. These include rent and mortgage payments, insurance, fees for education, car payments, personal loans and credit cards, taxes for the self-employed and savings.
  • Variable Expenses: The amounts that very from month to month and that you have some control over. They include food, utilities, transportation, telephone, memberships and subscriptions, vacations, household supplies, gifts and contributions, personal care and recreations and miscellaneous expenses.

**** Record Keeping: Keep well maintained files that you can pull out and look at on a regular basis such as cancelled cheques, credit card and bank statements, ATM and bank receipts.

To Calculate your Monthly Expenses:

Add up your:

  • Fixed expenses
  • Monthly Savings and loan expenses
  • Irregular expenses like taxes and utilities
  • Variable expenses

Create your plan:

Now that you know your income and expenses put together a spending plan.

  • Make a note of your variable and fixed expenses. When they are added together they should be less than or equalt to your income.
  • If you have too many expenses, think about which ones you can reduce without drastically changing your lifestyle. Fixed expenses are usually not adjustable; therefore, you should focus on your variable expenses.
  • Be sure to include an emergency fund. Try to build a 3 to 6 month cushion to prepare for the unexpected.
  • Once you have a good estimate of your expenses, subtract them from your income to get the number that represents the money you have for savings and reaching your goals.
  • If your expenses are greater than your income, you need to find a way to reduce expenses so that you can have some money for your savings.

Once again it is extremelly important to keep good and organized records and to look at your budget on a regular basis and make any necessary changes.

Follow this link to get printable worksheets on page 12 to 14 to start working on your budget now.

How Financially Fit are You ?

Are you doing a good job of managing your money? or do you spend more than you make? to see how financially fit you are take this financial fitness test. Just answer yes or no to the following questions:

  • Do you usually pay your bills late?
  • Are you using more and more of your income to pay off debts?
  • Are you paying your bills with money you had set aside for other things?
  • Are you paying only the minimum on loans and credit card balances?
  • Are you at or over the credit limit on your credit cards?
  • Are you borrowing money or using credit cards on things you normally would have used cash for?
  • Are you using your savings to pay bills?
  • Have you been called by a collection agency concerning overdue bills?
  • Have you put off going to the dentist or buying prescriptions because you couldn't afford them?
  • If you or your spouse lost your job, would you be in financial trouble immediately?
  • Are you uncertain about exactly how much money you owe?

Total the number of "yes" answers to determine how financially fit you are.

0: You are the picture of financial health.

1-2: You are in good shape but keep an eye on your budget and priorities.

3-6: You could be headed for financial trouble.

7+: WAKE UP! you are likely in financial trouble and need to get help.

Take a Stand !


Visit the one campaign to find out how you can make poverty history, listen to the one podcast, visit the one blog and learn about the causes of poverty.


Visit the Ideal bite to find out how you can save money and help make the world green.

In this section I will be highliting Not-for-Profits I admire that help the world and that all of you can get involved in by some small action. If you don't stand for something, you'll fall for anything.

Thursday, April 26, 2007

Smart Money Management

Saving Money With Coupons:

If you are looking to cut weekly costs and stick to a budget, then coupon clipping is for you. Now I know some of you may be thinking that this is either embarassing a waste of time or won't actually work; however there are a few ways to clip coupons and save up to 25% of your supermarket bill. Now I am no expert but that's not chump change.

Helpfull Tips:

  • Set up a system: Spend some time each week looking over local paper inserts and other sources of coupons. Cut out the coupons you think you might use on a grocery trip and throw out the wrest. Seperate the coupons into various categories of your choosing and store them in a shoe box or any other system of your choice. When you are getting ready to go to the store, look at your grocery list and pick the coupons that you want to use. Store these coupons into an envelope for easy access.
  • Be Choosy: You don't have to be loyal to any specific brand. Buy the product that you can use the coupon on.
  • Accumulate as many coupons as you can from every possible source
  • Save unused coupons: Some supermarkets maintain informal exchange bins where you can exchange coupons you don't want for ones you do.
  • Join a Coupon-exchange club: There are a few large clubs to choose from all offering discounts, coupons, and rebates. Upon Joining, members fill out a form specifiying what products they use. Periodically, members mail in coupons they don't want that you can use.
  • Shop at "Coupon Friendly" Grocery stores
  • Use Coupons in conjunction with other savings offers: You can use coupons on sale items in the grocery store !
  • Bank your savings: It can be tempting to spend the money you save from coupons. Resist this urge; put the money aside and save it for something you want or need.

Cheap Frills !


In the latest issue of Real Simple magazine, one of my favourites, There is a great pullout on cheap drugstore beauty buys for every skin type and age. To save money and prove that you don't have to waste money to look and feel good here is the PDF beauty product checklist from the Real Simple website. Often the staple drugstore brands do the best job and offer the best selection.

Cool Tool!

Microsoft Excel 2003 templates These are great for creating personal budgets and financial statements as well as numerous templates to help at work.

Why This Site ?

  • In the US more women filed for bankruptcy in 2003 than graduated from college
  • Women form the majority of poor people in Canada-1 in 5 Canadian Women lives in poverty (2000)
  • 70% of all Americans are carrying so much debt it is making there homelives unhappy
  • Canadas personal saving rate is only 1.5 % up o.2% from last year

At some point in her career, every woman has shared

challenges with another woman

down the hall

in a corner office

three thousand miles away.

at some point in her career, every woman has needed

to compete with another woman

to fight on behalf of another woman

to place her trust in another woman

to inverview another woman.

at some point in her career, every woman has needed

another woman to trust with her children

to remind her of who she used to be

to be a role model without ever knowing it

to listen.

at some point in her career, every woman should tell her story.

not for her, but for another woman not so different from herself.

change begins with understanding.

understanding begins with conversation.