While it's impossible to cover every financial topic in one blog posting, it is easy to go over some key areas.

How can I Save More?


Pay yourself first. In short, before you pay your mortgage, the bills or do anything else with your cas, put some away in your chosen savings vehicle. The best way to pay yourself first is to remove temptation and divert money before you get your hands on it. First, figure out how much you want to save annually, then divide your chesen amount by the number of paycheques you receive each year; Finally, ask your bank to set up an automatic transfer of that amount every payday. This automatic transfer should move the desired amount from your bank into your RRSP or whatever savings vehicle you choose.

What's the Smart Way to Invest?

Investing doesn't have to be complicated, all you have to do is apply two principles. First, keep your investing costs low, this includes the hidden costs of service fees and commissions. Second, diversify your investments. The easiest way to achieve both cheapness and diversification is to invest in a good low-cost, balanced mutual fund. This fund is balanced because it invests your money in stocks, bonds, and international investments.

How can I Cut my Taxes?

These four stress-reducing tips cut to the heart of most personal tax planning:

1. Save all of your receipts for medical and dental expenses, charitable deductions and daycare costs. This is the single reason people miss out on deductions. All you need is an expandable file folder and tabs.
2. Contribute as much to your RRSP as possible. This is the only tax shelter that makes sense for most Canadians.
3. look for ways to split income with your spouse, both now and in retirement. By making your incomes as equal as possible, you'll minimize the overall amount of tax both of you pay. To equalize incomes you may want to contribute to a spousal RRSP for your stay-at-home partner, or, if you run your own business, you can look at ways to employ your partner to do everyday things so you don't have to do them.
4. If you are a do it yourselfer, consider using tax-planning software. These programs are fairly cost-effective, are easy to use, and perform the mathimatical calculations while providing you with tax-saving strategies.

What Insurance do I Need and Where do I Buy it?

The best way to help evaluate whether an insurance policy makes sense is to ask yourself a few questions. Is the event that I'm insuring myself against an unlikely occurence?And are the consequences of that event going to be expensive if it happens?

Only if the answers to both questions are yes should you consider buying the insurance in question, However, buying house insurance is a must.

The key point to remember is that an insurance policy is simply a way of paying somebody else to assume risk for you. Thus the easiest way to cut your insurance bill is to assume a little bit more of the risk yourself in situations where you can afford it. The added risk you're taking on results in a major reduction in your premium. Another way to cut your insurance bill is to cancel insurance you don't need.

The best buy in terms of life insurance (another must especially with family), is a renewable term life insurance policy. And as long as you buy a policy which gives you the option to renew, a term policy can cover you for decades and decades. To find the best rates, shop through a broker who represents multiple institutions.

How can I Make Borrowing Work for Me?

Borrowing is like investing. If you do it the smart way, you can add substantially to your net worth. If you do it the silly way, you'll end up costing yourself countless dollars and worry. First it should be noted that you should never borrow what you can't pay back.

What's silly borrowing? any loan you take out for instant gratification. Don't take out a loan for a vacation or a TV. Ideally, you should only borrow for investments or purchases that will increase in value - or increase your earning potential - in the long run. As long as your investment appreciates at a greater rate than the interest your paying, good job! Once again, no matter what type of debt you're considering, it pays to shop around.

Where do I find a Good Financial Adviser?

Well, most advisers get their pay from commission or hidden fees representing from 1to 2% of your portfolio. Therefore, it's not even recommended if you have a small portfolio thats $200,000 or less. If you however have more than this hire an adviser or accountant by the hour.

Do I need a Will?

If you're penniless, childless, and don't care where anything of yours goes, stop reading. If however you don't fit in the above categories keep reading.

A will lets you decide who gets what after you leave this world. (If you pass without a will, the government divides your property among your nearest relatives according to predetermined rules).

The absolute simplest way to draw up a will is to take a sheet of paper and write down your wishes in your own handwriting. Sign and date this document and you will have a holograph will. Though simple, this is not recommended. You should use either will planning software or a lawyer to walk you through the process.

To prepare for your meeting with the lawyer, think through who you want to name as your executor (the person who is responsible for making sure your wishes are carried out). And if you have children under 18 you must select a guardian for them. Ensure that both the executor and potential guardian know what you want.

When you finally have your will, TALK ABOUT IT - talk to everyone affected by it.