FinanciELLE : For the Woman that Wants to Mind her Own Business

Daily Worths's Article The Power of 1%

2010-07-12T07:54:00.000-07:00

I have a subscription to the Daily Worth's website so I get daily e-mails from them on money matters. I was reading the e-mail they sent on the power of 1% and thought it would be an interesting article to share with you. Bascially, the premise of the article is that by increasing the amount you save by 1% per year you can significantly increse your nest egg. I found this particularly interesting because it takes so little to grow your savings yet so many people don't save or consider the impact of a small savings. The e-mail linked to a great tool, the New York Times Savings Calculator: The big difference a single percentage point makes. Try it out and comment on your progress.

Save Energy, Save Money, Do Good

2010-05-11T08:10:00.000-07:00

Everyone knows that one way to save money is to monitor your consumption now this can be done easily with Google PowerMeter. Google PowerMeter is a free energy monitoring tool that works with smart meters and other energy devices and with energy companies (currently limited but will be expanding) to monitor and track your consumption. It has functions to track consumption over time, predict energy costs, and set energy budgets. It's easy enough to be told to monitor our consumption but practically speaking it helps to have a tool like Google PowerMeter.

Free downloadable E-Book: Everything You Need to Know about Finance in One Page

2010-05-11T07:50:00.000-07:00

I just found a really great personal finance book "Everything You Need to Know About Personal Finance in One Page" click the title so you always have access to the newest edition.

Budgets Budgets Everywhere

2010-05-11T07:15:00.000-07:00

I've been reading a lot about different types of budgets lately and found some really useful blog posts that look at budgeting in unique ways. Budgeting and managing your money is necessary but it doesn't have to be boring. Remeber your organizing your money plans so that you have the money to do what you want when you want but first you have to do what you have to do in order to do what you want to do. The first article is about thinking about what's important to you and setting priorities because until you know that a budget won't be useful. The other three articles are about different types of budgets.

Article 1: The 90-Day Pre-Budget
Article 2: The Save to spend budget
Article 3: Power to the mini budget
Article 4: 3-minute summer budget

Money, Money, Money: Manage it, Track it, Save it

2010-01-31T11:52:00.000-08:00

Use these free tools to manage, track, and save your money.
view all of your accounts in one secure environment and create and track realistic budgets

ManageMe: Your personal wealth creator-Use the personal budget planner,debt management planner, andexpense tracking

Manage multiple accounts, organize your payee list, add and track transactions, and generate reports

Review all your accounts in one place, track all your bills, and budget and cashflow management

Timely alerts, easy budgeting, helpful graphs, see your spending, find savings, reduce debt, and track investments

Track your spending

Share investment ideas, exchange market research, and track your peers

Stock market game for beginners and professional traders-manage a portfolio and win cash, predict and trade stocks, build a network and

your skills

A unique online investing platform-friendly investing experience, powerful yet simple tools, easily analyze stocsk and compare them to your peers and indexes

Money Article Roundup

2009-07-22T10:48:00.000-07:00

Real Simple: Get out of Debt Checklist

2009-07-22T10:44:00.000-07:00

Click the picture to go to the Get out of Debt Checklist provided on the Real Simple Website.

Must Do ! Primerica Financial Needs Analysis (FNA)

2009-05-03T07:40:00.000-07:00

Yesterday, I was at the National Woman's Show where I spent some time at the Primerica booth talking to a representative who was telling me about this great complimentary (that's right FREE) Financial Needs Analysis that they do for people. Primerica will go over your financial situation and create a plan that works for you.

Who is this for?

Anyone with children, Anyone with debt, Anyone that plans on retiring, ANYONE.

What Can it Help you With?

Debt Elimination, Retirement Planning, Insurance Planning, Education Planning.

How do I get started?

Make an appointement; search your local listings for a financial services representative near you.Bring the Following information as listed on the Primerica website:

Your latest Pay stub
All savings and investment account statements
Company benefit statements
Life Insurance Policies
Education Savings Statements
Financial Aide and tution amounts
Mortgage documents
Loan and Credit Card Statements

You owe it to yourself to take advantage of this complimentary service. In these tough economic times it is more important than ever to find out where you stand and how you can improve your financial situation.

Awesome Site !! We Seed: The Stock Market for the rest of Us

2009-04-29T07:11:00.000-07:00

Hey all; For far far too long the stock market has been left to professional traders and CEOs. As we can see from the current state of the global economy this has not gone so well. Now I’m not saying that all professionals involved in the stock market are bad and I don’t want to give that impression all I’m saying is that it’s time that us regular folks take the power back. Now, I’m a safe investor I prefer things that offer a guaranteed return but I’m always up for learning something new and if you are too you will love the new site I just discovered. We Seed: The Stock Market for the rest of us is an awesome site. It allows you to create your own stock portfolio using real companies but fake stock certificates and fake money. This site allows you to become armed with the knowledge and practice to make the right decisions should you choose to venture into the real stock market. You can make a portfolio made up of your passions or things you like and you get real updated information on the companies. This site has some great features: you can search by passion, company buzz search, and Daily PoP N’ Stock (this combines pop culture and stocks), you can create networks, groups and teams to share stock information, you can learn all about investing and the stock market by working your way through three levels of knowledge and testing yourself with quizzes and you can play games. If you want to take the power back and gain this invaluable knowledge click the link.

Cool Tool! Piggy Pal - Your Money Tracker

2009-03-15T09:09:00.000-07:00

Click and use Piggy Pal to track your spending.

Cool Tool! My Budget Planner

2009-03-15T08:32:00.000-07:00

Click this link to download a tool that will help you track your income and expenses from the security of your own computer.

Debt Load: The "28/36" Rule

2009-03-15T07:59:00.000-07:00

This rule is used by mortgage lenders:
-Your monthly household debt service should not exceed 28% of your gross monthly income
-Your total debt service, including your house payments plus all other payments should not exceed 36% of your gross monthly income

In Determining your Debt Load Limits Consider the Following:
-The stability of your income
-Your other regular expenses
-Your need for cash from month to month
-The changes in your cash needs as you age
-Your personal needs, wants, and goals
-Any extraordinary expenses that may come up
-Remember that debt Spends your future income
-Make regular savings a habit

Warning Signs:
It's hard to admit to having too much debt. Obviously or the world wouldn't be in the current economic state it is. Here are some warning signs that you are carrying too much debt:
-Next months bills come in before last month's have been paid off
-You get frustrated when you write checks because you have more bills than you thought you did
-You know what past-due notices look like
-You get overdue balances on credit card statements
-You avoid opening letters ( Confession of a shopaholic ring any bells)
-You hardly ever keep a running balance in your checkbook

Some Tools:
-Cost of Credit Calculator
-Are They in Trouble Worksheet
-Do you Know your Net Worth
-Cost of Credit Worksheet
-How to Handle Creditors

Debt Load

2009-03-15T07:46:00.000-07:00

What is it?
Debt load is a term that is used to describe the amount of debt a consumer has. Creditors look at the Debt/Income ratio to see if consumers are carrying a "safe"amount of debt.

How do I Calculate it?
Add all of your non-housing monthly payments except for utilites and taxes. Then, Calculate your total annual gross wages and divide by 12. When you divide your monthly debt payments by your monthly gross income. You will get your monthly non-housing Debt/Income ratio; it is generally expressed as a percentage.

What does it Mean?
10% or less: You're in great financial shape
10%-20%: You will probably be able to get credit
20% or more: Too High !

Take the Debt Load Quiz

Style: From Work to Networking By: Donna Smith

2009-02-24T12:48:00.000-08:00

Right or wrong, shallow or not, we instinctively judge by appearances. Albert Mehrabian, author of Silent Messages (Wadsworth, 1971), claims appearance has a greater effect on people you meet for the first time than any other factor. He says 55 percent of an initial impression is based on how you look and only 7 percent on what you say.

As the old adage goes, dress for the job you want – and the clients you want – at networking events just as in the office. Here's how

Prepare to look professional and pulled together at impromptu meetings and last-minute event invitations by keeping a tailored jacket in your office or car at all times.

Carry a small handbag with just your essentials (keys, lipstick, phone, business cards) and leave your briefcase or laptop bag in the car. You don't want to be the woman banging into everyone with her bag! And since you'll need both hands free (for shaking and eating), consider a shoulder bag over a clutch.

Do you know how far you will have to walk from the parking lot to the event? Factor that into your shoe (and pant or skirt) selection for the day. Keep in mind that you will be coming from work, so your feet may already be tired and may tend to swell during the evening.

Freshen up your lipstick and eye makeup. Try navy blue eyeliner to make your eyes appear brighter and erase some of the day's tension. Go for a natural or neutral lip color to avoid the dreaded lipstick ring – and the lip print on your glass.

Color Color sends a strong nonverbal message and is the first thing a person sees. Think about what you want to communicate and then choose colors that support that impression.

Navy: honesty, integrity

Black: sophistication, authority

White: freshness, reliability

Tan: elegance, approachability

Brown: stability, security

Gray: strength of character, refinement

Burgundy/Maroon: classic, elegance

Plum: regal, diplomatic

Teal: inventive, soothing

Red: passion, tenacity

Donna Smith is editor of Style Stories.

Money Dilemas Save or Invest?

2009-02-24T12:32:00.000-08:00

Extreme Savers Share their Secrets

2009-02-24T12:12:00.000-08:00

1.Track Sales Prices
2.Make Sure to Price Match
3.Swap Books and CDs
4.Be a "Freecycler"
5.Try Craigslist Classifieds
6.Buy Local
7.Join a Co-op
8.Best Way to Negotiate
9.Cut Your Phone Costs

Three Myths of Success by Suzy Welch

2009-02-17T06:56:00.000-08:00

1. Forget about fun. You have to suffer in order to advance
2. Your Life needs to look Picture-Perfect from the outside
3. A mentor must look like a mentor

Please follow one of the above links to the full article by Suzy Welch on the Pink Magazine website her article is very insightful and worth reading.

Cool Tool ! Little Pink Book

2009-02-17T06:39:00.000-08:00

Click the link above to sign up for the little pink book daily notes on fashion, style and corner office smarts for free.

Financial Case Studies: Saving up for Hard Times Camille and Calvin's Story

2009-01-27T13:40:00.000-08:00

Chapter 2: Where do I go for Help to Replace Lost Income

If you ever lose your job or source of income, you may be eligible to get help from work or government plans:

Chapter 3:How much Money Will I have if my Work Situation Changes?

Use these worksheets to help you plan:

Financial Case Studies: Saving for Hard Times Camille and Calvin's Story

2009-01-26T13:26:00.000-08:00

Ten years ago, Camille and Calvin had a $25,000 car loan and a $200,000 mortgage. The couple had turned down insuring these loans because it would have cost about $80 a month – close to $1,000 a year. They thought it was a waste of money because they weren’t sure they would ever need the insurance.

Instead, they saved an equal amount in an emergency fund. They figured that if they never had to use these savings, they could use the money after retirement. After 10 years, they had saved about $12,400.

That’s when it happened: Camille was laid off. Suddenly, she went from making $4,000 a month before tax, to less than $1,700 a month from Employment Insurance. With their debt still high, Camille and Calvin need to draw $1,000 a month from their emergency fund. How long will their money last?

Lesson learned: If Camille gets a new job within a year, she and Calvin will be able to get by. If it takes longer, they may run out of savings. Now they wish they had put some of their money into insurance. It would have made it a lot easier to get through this tough time.

Step 1:What are the five ways I can Keep Money Coming In?

1. Workplace and government plans
These may help you replace income if you lose your job, or if you get hurt or sick and can’t work. They may also provide money if you take time off work to care for a new baby or a sick family member.
Tip: You may also be able to draw on unpaid salary or vacation pay. If you become very ill, or injured, and are never going to be able to work again, you may be able to draw on your pension savings.

2. Insurance
This may pay your monthly debts if you get sick or hurt, and can’t work. For example, you can buy insurance to pay your mortgage, a car loan, or your credit card payments until you get back to work. Disability insurance provides income each month if you get sick or hurt.
Tip: It’s cheaper if you can buy disability insurance through work.

3. Savings
Use emergency funds first, if you have them, to pay your bills. Avoid taking money from your retirement savings.
Tip: The experts say that everyone should have an emergency fund for times when your income stops. How much you save is up to you.

4. Loans
You may be able to borrow money from friends, or family, or from the bank.
You may also be able to borrow back some of the money you have put into your home.
Loans make sense only if you have a way to pay back the money, and the interest, on time.
Tip: Using credit cards is one of the most costly ways to borrow. Avoid this if you can.

5. Your home or other property
You may sell your home or other property for cash, then buy or rent another home for less.
You may sell your car or boat and buy a smaller, cheaper model.
Another choice is to keep your home or cottage, but rent it out to bring in extra money.

Favourite Financial Blog: Fabulously Broke in the City

2009-01-15T11:14:00.000-08:00

Free Financial Book Download on Oprah .Com

2009-01-09T14:15:00.000-08:00

Download Suze Orman's new book on Oprah.com for free until January 15th. Click the picture to download now.

Women's Saving Initiative

2009-01-09T14:05:00.000-08:00

"When it comes to women and retirement, the numbers say it all: over the next two decades, nearly 40 million women will reach retirement age. While many of them will be ready to leave the workplace, many simply won’t be able to afford it.

Consider that nearly two-thirds of working women earn less than $30,000 a year. And nearly half of all women work in low-paying jobs without retirement plans or 401(k)s. Not to mention women still earn on average 77 cents for every dollar earned by men.

More women than men are likely to work part time, too, which means they often have less socked away for retirement. Add to this the fact that women outlive men and you realize only 34 percent of women between the ages of 75 and 84 are married with a spouse present. That means a steep drop in income from pensions and even Social Security.

These statistics are daunting to say the least. That's why Visa's Practical Money Skills for Life, with the help of the Heinz Family Philanthropies, and The Women's Institute for a Secure Retirement are offering these valuable resources for women."www.practicalmoneyskills.com

Here are some steps to get you started.

1. Listen to (and read) What Women Need to Know About Retirement Planning for retirement might seem mysterious or even scary, but it shouldn't be. That’s why Visa Inc. has teamed up with the Heinz Family Philanthropies and the Women's Institute for a Secure Retirement (WISER) to present their eBook "What Women Need to Know About Retirement."

2. Explore Jean Chatzky’s Practical Money SeriesEach week, personal finance expert Jean Chatzky shares valuable tips, information, and resources. Tune in each week to Jean's Practical Money Minute podcast (video or audio), or watch online and read through transcripts.

3. Sign up for the Practical Money Skills for Life Monthly NewsletterSign up to receive all the best of Practical Money Skills for Life delivered fresh to your inbox once a month. Each month, we deliver articles, calculators and tools, and stories to help you get the most from your money.

Tightening the Money Belt

2008-12-28T08:53:00.000-08:00

Spending Squeeze

Money is tight. That could spoil plans for a new home, car, vacation and more – unless you take action.

By Lori Johnston

The persistent credit crunch is impacting the way of life that Ericka Basile – and the millionaire readers of Naples Dog Magazine, which she publishes – used to take for granted. Recently the Florida entrepreneur was astounded to discover $257 in fees on one of her credit cards – just the latest surge in rising debt that's finally catching up with Basile and millions of consumers like her. "I'm trying to figure out, How do I get out from underneath this? It's a weight on my shoulders," says Basile, whose annual salary averages $159,000.

As the headlines remind us daily, the free-spending money train has left the tracks. Prices are up, but the ample assets we had to cover ourselves during good times are disappearing. Home equity has dipped to its lowest level in more than 60 years, and abysmal savings rates have left dwindling cash reserves. And credit? The creditors that were once all too willing to hand out cash now don't have it, or have turned off the spigot for fear of escalating losses. In short, we're learning again (if we ever knew how) to pay as we go. Even among women who have a good hold on their finances, the new tight -money environment can create a sense of panic – and require a new approach to money, says CPA Belinda Fuchs, president and founder of Own Your Money, a Boston-based financial coaching firm.

"Options are more limited now," she says. "The credit card companies and banks have taken quite a hit with everything happening in our economy. They're recognizing they can't be doing what they were doing before because they're going to get the same results. One of the things they're doing is making it harder to take out credit."

For big purchases, lenders are requiring more paperwork, higher down payments and higher credit scores for the best rates. Credit card lenders are taking a much harder look at new lines of credit, and they're more reluctant to cut existing customers some slack. "The products that are offered are much more scrutinized right now," says Jayne Malinowski, a vice president with Fifth Third Bank. "It's severely tightened."

Basile was denied a lower rate by one card company but is hesitant to consolidate her debt because of concerns about how it could affect her credit rating. Her best option now, she says, is to take control of her spending, which includes doing away with plans for a vacation with her two kids.

The most conspicuously absent safety net for consumers is still home equity – the one-time cash machine that's as anemic today as it was six months ago. "People were using that money as a financing source for many different things, such as maybe starting a business or funding education for children," says Faith Read Xenos, CFP, co-founder of Singer Xenos, a boutique wealth management firm. "They thought they had it available, and now they don't."

Alyssa Gilmore, 36, a senior marketing professional for a Boston-area financial technology company, was banking on her home as the capital behind plans to relocate her family to a better school district this year. But now those plans are on hold. A few years ago, she and her husband would've had much more equity in their home and could've sold it at again. "With the shrinking margins of home affordability, and with the tightening restrictions on loans, the chances of our being able to buy a place in a great school district, or sell our current home, in the next several years is probably slim," Gilmore says.

Easing the Squeeze

Overall, professional women may not be feeling the crunch as much because they typically have more cash reserves and are ideal borrowers, says Shiva Sattar, a Wachovia wealth management regional director. But it would be a mistake to feel immune to the crisis and allow it to catch you by surprise. Advisers relate cautionary tales of some clients – suddenly cash poor with no lending available – who have had to ask parents for inheritances in advance.

"It's really important that people look now" for lending they might need in the near future, Malinowski says, whether it be for a new car, a tuition payment or anticipated medical expenses. "Don't wait until you need the money. If you need the money, you're not going to qualify for it."

For those who are already taking a hit, financial advisers suggest a few basic steps that can help control ballooning payments and protect your future credit options.

First, make sure expenses don't exceed income.

Sounds obvious, but earlier this year the U.S. personal savings rate went negative, meaning we paid out more than we took in. That may work for the federal government, but it's not sustainable for the rest of us. Gilmore, for one, says she's trying very hard to save more, diverting cash into risk-free CDs and interest-bearing money market accounts. "We are in a time where money may be tighter and wages may stagnate," she says. "Opportunities to earn more money might shut down."

Second, enact a strategy to stay in financial shape.

If necessary, talk to your lender and ask for help with a debt management plan, says Jessica Cecere, president of the nonprofit Consumer Credit Counseling Service in Florida. And avoid raiding your future to pay for your present. So-called hardship withdrawals from 401(k) plans are on the rise as a way to make mortgage payments or raise quick cash. But if you don't return the money within 120 days, Xenos says, it's a taxable distribution, and you could lose 40 percent of the funds to taxes and penalties.

Third, keep an eye on your credit report.

As minimum scores for loan approval and the best rates increase, women can take steps to improve their credit scores. Malinowski advises directing any extra money toward minimizing debt loads. Paying credit cards down to 50 percent of the line amount can make a dramatic impact on a credit score, she says. And when the debt is paid off, dump most of your cards, keeping just a couple. Sattar adds: "Do you really need a card for Macy's, Nordstrom, Dillard's and other stores?"

While an overnight fix to your credit rating isn't possible, a little prudence and discipline will pay off in the future. "Over time," Cecere says, "if you're good, the good behavior outweighs the bad."

Cool Tool: Network IQ

2008-12-28T08:48:00.001-08:00

Great article from Fabulously Broke in the City: Cost per Use is a Shopaholic's Saviour

2008-12-28T08:30:00.000-08:00

I'm going through one of my favourite blogs, Fabulously Broke in the City and I found this great article on Cost per use.

Cost per use is a concept I hold near and dear to my heart only because it helps me make very quick decisions about whether or not I purchase the item today, tomorrow, or have to sleep on it for a couple of months.

Let’s take purses for example.

The basic idea of cost per use or wear, is if you are to spend $30 or $80 on a nice purse, you are planning on using that purse day in, day out.

Case in point. I bought a soft, faux leather, bronze metallic purse for $30 about 4 years ago. That is now the purse I bring with me on all of my travelling trips because it is elegant enough to be a work purse, soft enough to squish into my suitcase and not worry about it being damaged, and big (but not too much bag) enough to hold my items when I go sightseeing. Plus, I paid only $30 for it.After 4 years, that purse has cost about $12.50/year so far. That's 0.034 cents a day. And every year I take care of it, and use it, the cost per use goes down until it approaches zero.

This is the same principle that can be used for clothing. I bought a cheap shirt for $5 on sale a month ago, took care of it, and now just looks dull, faded, frayed, ugly and stretched. In contrast, I purchased a $50 shirt about a year ago, took the same care with it, but it still looks sharp, and it has kept its dye and colour well over the years. The quality was just simply better.And just the other day, I bought the most amazing looking sapphire blue top that fit me like a glove, felt amazing, and cost about $74 after all the taxes were in. This was a great buy because the quality is clearly there, the colour looks great, and the fit is fabulous. If I take care of it, it won't pill, rip, or be stained. It also helps that the fact that I spent more money makes me want to be more careful with it as well.

I am not saying that EVERYTHING that costs more money is worth it, or you should blow money on something JUST to make you take care of your things better, but I'm just saying pick and choose what you want to pay more for, and what you won't.

The only time I ever spent $80 on a purse, was 2 years ago for this Friis & Co. gorgeous black-lace gathered overlay on a faux white leather purse, with a silk black lining. I love it, and I carry it whenever I'm out on the town. Sure, the cost per use is a lot higher for that purse, but I plan on keeping that purse well into the future, and by that time, that purse will still be worth every penny I had paid for it.But I can guarantee you would NEVER have seen that purse in a thrift store, and if I had waited and missed out on my chance to buy it on the cheap for $80 CAD and still be able to love it after all this time.In short, I'd much rather have ONE $30-$80 purse I love and like to carry, than buying $4-$10, or a $20 purse and end up throwing the purses away, donating it, or shoving it into the back of my closet, untouched and unused, saved for the firs day I bought it. That cost per use for that "thrifty" bag that I never really loved in the first place was $4-$20, instead of $7.50-$12.50.Sure, I could just use my laptop bag, or maybe a free plastic grocery bag to carry around my items, but as most women can attest to, it just isn't the same. And besides, how cheap are you going to get? There has to be a limit somewhere. I'd treat this free plastic grocery bag cheapness akin to stealing ketchup packets from McDonald's and squeezing it into your ketchup jar to save $3 per in addition to spending 6 hours of your time squeezing each packet in.

Being too frugal can be a bad thing for your karma. Trust me, I know! You tend to feel resentful of your debt and the bad feelings just pile up.With that being said, I'd never cross the threshold of $100 for a bag, because it's just a bag. But some people will buy $400 - $2000 It Bags for the season, use it for a season (about 4 months, maybe 6 months), and discard the former It Bag into the back of their closet, or sell it at a fraction (albeit still over $100) of its original retail cost.Now, which one seems more economical to you?You can even apply this to buying cars, or really, buying anything in general. If you're going to buy a new car because buying a used one just doesn't appeal to you, that's fine. But if you buy a new car once every 3 years to upgrade, that's not being as economical as if you bought that new car, took super good care of it, and made it last 15 - 20 years. The cost per use goes down, and in the end, you are still thrilled with your purchase.

Recession Survival Guide

2008-12-27T07:29:00.001-08:00

Survive and Thrive

The worsening financial crisis has brought out the best and the worst among women investors. Even if you fall into the latter category, it isn't too late to change.

By Mary Claire Allvine

In a crucible, liquid boils off and only essential chemicals remain behind to be identified. Today's market has boiled off all excess liquidity – literally – and what's left in your financial crucible? Answering this question honestly will determine who will thrive following this global economic crisis and who might never recover. Every investor opened her third-quarter statements to bad news. Whether she owns bonds or stocks, her results are down. Compounding these paper losses, the threat of layoffs, loss of credit access and evaporated home values have raised the heat. Two clear metals have emerged: I'll call one gold; the other is clearly lead.

Gold Investors :In times like these, the valuable investor traits you want to see emerge come out sparkling. This savvy investor seems to have nerves of steel, but in reality she simply has a focus on what she's trying to accomplish. She has diversification, and she has the means to be patient.

What else, exactly, is she doing?

- Like anyone seeking to grow net worth who has cash she doesn't need in the next seven years, she's buying on horrible market days. She does her research, learns to use limit orders, sets them and goes back to work. She also sticks with her pre-existing dollar-cost-averaging plan, perhaps even accelerating it. She diversified equity mutual funds from low-cost, tax-efficient companies. She doesn't act rashly to buy or to sell; instead she takes measured steps with an eye on the long run.
- This same woman confirms her liquidity sources, retains lines of credit priced advantageously off the low prime rate, and reduces unnecessary spending to ensure that reserves last as long as possible. She's not ignorant of world news, but she's not immobilized by it either.
- She's also cutting her taxes now and in the future. While she's hanging onto appropriate stock investments – indeed, she's adding to them – she's also swapping funds or stocks with losses, replacing them with equivalent funds without leaving the market for even a day. In this action, she's taking losses she can use against taxes this year – and banking losses she can use against likely higher capital gains in the future.
- Finally, she's confirming the financial organizations with whom she invests. Likely, she long ago consolidated into a surviving, global mutual fund company. She is not buying one-off CDs at various banks; she's not searching for the next hot idea; and she's not listening to a broker on commission.

Fool's Gold: Sadly, many other women are not finding value today. Indeed, they're undermining their own objectives and missing opportunities. Over the last three months, I have witnessed:

A woman who wanted to sell all her stocks. Emotionally exhausted, she can't imagine how long her investments will take to recover, and she's worried about paying bills next month. Another had too much of her money in her company's stock, which has tanked, while her job security has evaporated. "I knew better!" she admits. "But I was investing in a company I believed in."

A woman who admitted too late that she was living from commission check to commission check in an industry where buyers are all sidelined. She also found that her home equity lender could cut off the $50,000 line it had previously offered her against her home. All of a sudden that $1,000 purse and $500-a-month leased car make her sick, not exhilarated.
Another woman, with a portfolio of individual stocks, who can't bring herself to sell them, take the losses and invest in an index fund. "I don't know why I can't do it. I just can't," she says.

A woman who has four different 401(k)s, a brokerage account, a bank in her home town, one in her new town, and two different mutual funds at two different fund companies. "I don't even know, really, how much I've lost because I don't know where I started," she says, "and I can't make time to total up where I am."

Change NowEven for those of us who didn't turn out to have the inherent strength and value we had hoped for, there is some common-sense alchemy we can practice. Conversion always starts with these magic words: "I need to change."

Where to start?

1. Start with where you want to be in 10 years. Yes, 10. There's no quick turnaround, but envision the future. Every step toward that financial future needs to be directed purposefully.

2. Admit where you are. Total it up: Make a balance sheet of assets and liabilities. Detail your fixed living expenses. Track where your cash comes from reliably and admit what's variable income. Note that the economy will likely get worse before it gets better. Make an immediate plan to survive: Cut costs, pick up a consulting job, sell your more valuable personal assets.

3. Get help. Truthfully, most successful professionals aren't trained in personal finance. Find an adviser who is not selling you a product or promising you an easy solution. Find one who will teach you and whom you will trust enough to follow her advice.

Mary Claire Allvine, CFP, is co-author of The 7 Most Important Money Decisions You'll Ever Make (Rodale, 2005) and a partner at Brownson, Rehmus & Foxworth Inc., a national fee-only financial plannin

Holiday Budgeting

2008-12-19T09:06:00.000-08:00

Follow this link for expert financial advice from Jean Chatzky during the holidays. You'll find info on making a holiday bugdet, holiday travel and entertainment tips.

Black Belt Shopping Strategies

2008-12-19T08:56:00.000-08:00

Start now
Make a gift list
Know your limits
Comparison shop
Go in the morning, late night or early in the week
Enlist the professionals - Ask for help
Negotiate and haggle
Schedule a get ready day
Remember the "Magic Factor"

Beware of Holiday Sales

2008-12-19T08:33:00.000-08:00

Everywhere you look latetly during this holiday season stores are offering massive sales but don't fall into the trap of purchasing stuff you don't need and throwing your money away just because it is cheaper. Here are some ways to hold on to your cash during the holiday:

- Don't shop when you are hungry: It turns out that this is not just true for grocery shopping but all kinds of shopping.

- Don't bring children shopping with you: Kids have their own techniques to persuade parents when it comes to purchasing.

- Make a list: Take 10-20 minutes before you go shopping and write down everything you need to buy and stick to the list it will make sure you stay within budget and don't stay too long in the crowded stores.

- Don't fall for sale discounts: It doesn't matter if it's on sale if you don't need it or want it for yourself or someone else. If you don't need it you could save 100% instead of 30%.

- Get Creative !

Money Saving Tips from the View

2008-12-19T08:20:00.001-08:00

Click on the Bank on the View Icon above to watch clips relating to money saving tips for the holiday season and all year round.

Shopping Secrets from Shop Smart Magazine

2008-12-16T08:52:00.000-08:00

Try it on, then go online
Ask for freebies
Always check return costs, especially for large items
Put sale items on hold
Give used cars the twice over
Google "promotion code" before you buy
Don't buy electronics based on the features alone
Haggle with the doctor
Print coupons before you hit outlets
Keep reading the ads even after you buy
Don't shop when you're exhausted
Check e-bay first
Stock up on pet food
Think twice about final sale items
Find a supermarket the price matches
Always check receipts
Look good and spend less
Get software for less
If it's a bargain grab it
Always try to haggle
Get advance notice of sales
Check your insurance plan for discounts

For detail on all the items on this list and more just click this link: http://http://www.shopsmartmag.org/files/Shopping_secrets.pdf

First Post of the Christmas season

2008-12-16T08:48:00.000-08:00

I would like to apologize to all my readers. I've been really busy with school and as such have not been posting on my blog.

Thank you for your patience

Shop Smart Magazine

2008-08-09T07:05:00.000-07:00

Getting Started: Common Pitfalls to Avoid

2008-06-29T09:45:00.000-07:00

Common Pitfalls to Avoid

Before you race off through the rest of Investing Basics, there are some cautionary points to consider before you proceed. These are common mistakes many people make when considering what to do about investing.

Doing Nothing. There is no guarantee that the market will go up the first day, month, or even year that you invest in it. But there is one guarantee: Doing nothing at all will not provide for a comfortable retirement.

Starting Late. Postponing your investing career is second only to not investing at all on the list of investment sins. You already know that the earlier you start the better off you are. (Take another look at the compound return example we gave above.) If you're already past those formative twenties (you don't look a day over 32 to us), we'll reword this first pitfall to read: "Not starting now."

Investing Before Paying Down Credit Card Debt. If you have money in your savings account and you have revolving debt on your credit card, pay it off. Many credit cards have an annual interest rate of 16% to 21%. Let's say you have $5000 to invest, but you also have $5000 debt on your credit cards with an average annual interest rate of 18%. It doesn't take an astrophysicist to figure out that you're going to have to get an 18% return after you pay taxes just to break even on that $5000. Pay the debt off first, then think about investing.

Investing for the Short Term. Only invest money for the short term that you're actually going to need in the short term. Invest money in the stock market that you won't need for at least three years, and preferably five years or longer. If you'll need your cash next year for a down payment on a house or for the family Caribbean cruise, use one of the shorter term and safer havens for your cash, such as money market funds or CDs.

Turning Down Free Money. You'd never turn down a dollar if it was offered with no strings attached. That's what you're doing if your company offers a 401(k) or similar retirement savings plan with an employer match and you're not participating. Take advantage of all tax-advantaged, employer-matched savings programs.

Playing It Safe. If you're young, most of your investing dollars should be in the stock market. You have enough time to weather any dips in the market and to reap the rewards of long-term gains. Although you may want to transition into bonds later in life as you depend on your investments for income, stocks should make up a large portion of the portfolio of every investor.

Playing It Scary. Not every investment is for everyone. We'll help you determine your psychological investing profile in Step 2. Investing Concepts. Even if you're a daredevil, you shouldn't pour all of your money into something that could end up going down the drain.
Viewing Collectibles or Lottery Tickets as Investments. If old comic books, Barbie dolls, and abandoned exercise equipment could be used to fund retirements, do you think the stock market would exist? Probably not. Don't make the mistake of thinking your jewelry, those Beanie Babies, or the lottery will provide for you in your latter years.

Trading In and Out of the Market. We believe the best approach to investing is the long-term one. Pick your investments well and you'll reap rewards over the long term that you had ever dreamed possible. Trade in and out of the market and you'll be saddled with fees that chip away at your returns, and you'll potentially miss out on gains that long-term investors enjoy with much less effort.

Getting Started: Savings and Investment Vehichles

2008-06-29T09:43:00.000-07:00

Long-Term Investing Vehicles

Bonds: Bonds come in various forms that you will learn about in Step 5. They're known as "fixed-income" securities because the amount of income the bond generates each year is "fixed," or set, when the bond is sold. From an investor's point of view, bonds are very similar to CDs, except that they are issued by the government or by corporations instead of banks.

Stock: Stocks are a way for individuals to own parts of businesses. A share of stock represents a proportional share of ownership in a company. As the value of the company changes, the value of the share in that company rises and falls. Stocks are discussed in detail in Step 3 of Investing Basics.

Mutual funds: Mutual funds are a way for investors to pool their money to buy stocks, bonds, or anything else the fund manager decides is worthwhile. Instead of managing your money yourself, you turn over the responsibility of managing that money to a "professional." Unfortunately, 9 of 10 "professionals" tend to underperform the market indexes, a fact that we'll look at in Step 4.

Getting Started: Savings and Investment Vehichles

2008-06-29T09:40:00.000-07:00

Short-Term Savings Vehicles

Savings account: Often the first banking product people use, savings accounts earn a small amount in interest (anywhere from 2.0% to 4.0%, often less), making them a little better than that dusty piggy bank on the dresser.

Money market funds: Money market funds are a specialized type of mutual fund that invests in extremely short-term bonds. Unlike most mutual funds, shares in a money market fund are designed to be worth $1 at all times. Money market funds usually pay better interest rates than a conventional savings account, but below what you could get in certificates of deposit.

Certificate of deposit (CD): This is a specialized deposit you make at a bank or other financial institution. The interest rate on CDs is usually about the same as that of short- or intermediate-term bonds, depending on the duration of the CD. Interest is paid at regular intervals until the CD matures, at which point you get the money you originally deposited plus the accumulated interest payments. CDs offered by banks are usually insured.

60-Second Guide to Short-Term Savings

2008-06-06T16:28:00.000-07:00

Could you cover the cost of a new water heater if yours suddenly went on the fritz? Would you have to put the unplanned purchase on a credit card, and then adopt a Ramen-only diet for months afterwards just to cover the tab?

Having money at-the-ready for life's financial hiccups -- both planned and otherwise -- can cut a lot of stress from your life. Give us just 60 seconds, and we'll show you how to establish a short-term stash of cash in no time.

0:60 Calculate how much you spend every month

The first rule of savings is to bank enough to cover the necessities if -- knock on wood -- an emergency arises. How much do you need? Well, how much do you spend on a monthly basis?

Add up what you spend each month on necessities such as food, shelter, transportation to work, and anything that you promised to buy your kids. (If you're not into keeping detailed records, Mint.com's free online service can give you a pretty good immediate snapshot of where your money goes.)

0:52: Add some padding for "just-in-case" scenarios

There are small emergencies (bad perm) and big ones (job loss). Bump up your monthly spending number a tad to account for things like job-hunting expenses, should you suddenly find yourself in need of a new gig. Then multiply that figure by three or six (for the number of months that you want to cover), factoring in other available monetary resources and the number of people for whom you're financially responsible.

Voila! Now you have the amount of money you need to stash in your emergency savings account.

0:48: Gaze into your 1- to 5-year "big expenditures" crystal ball

With your emergency savings covered, now it's time to figure out what other kind of cash you should put aside. Planning a renovation, extreme dental work or a family vacation? These things are also part of your short-term savings strategy. Put 'em down on paper and estimate how much these purchases will cost.

0:40: Figure out how quickly you will meet this goal

You want to fund your cash kitty ASAP (emergency expenses tend not to wait around until it's convenient). Come up with an amount you can afford to contribute each month. Make it one of those must-pay expenses -- just like your electric bill and grocery money. Yes, it's that important. Once the emergency stash is stashed, move on to the non-emergency short-term savings goals. (Use our savings calculators to crunch the numbers.)

0:37: Pick a parking spot for your cash

Easy access is essential when we're talking about emergency savings, so your money should be stashed somewhere you'll be able to get your hands on it quickly ... in case of, well, an emergency. It should also be in a "safe" investment -- meaning one that won't tank every time the stock market takes a tumble. That narrows it down to:

High-Yield Savings accounts
Money Market Accounts
Money Market Mutual Funds

For non-emergency savings (where you pinky-swear to let the money sit untouched until you need it) less liquid investments -- such as certificates of deposit -- may offer you a better interest rate on your money.

0:29 Click around and comparison-shop

Look at bank ads in newspapers, check out the best national rates on Bankrate.com, see what your broker is paying on cash in your brokerage account, ask your regular bank or local credit union what they offer, and get information on money market funds from websites like iMoneyNet. Find out:

What interest rates are available
What are the comparable yields over identical time periods
What timeframe the rate applies to
What fees (if any) there are to purchase and maintain the investment
The minimum investment required to get favourable interest rates

(Investors beware: Some institutions will offer aggressive rates in order to lure you to send them your dinero, only to lower the rates soon thereafter. Check historical rates at Bankrate.com to test the interest rates over time.)

0:17 Just do it

The clock is ticking. There's no time to waste. A short-term emergency fund is one of The Motley Fool's top money "must-haves." In fact, it may be the very thing that saves you from a long stretch of high-interest credit card debt after a fender-bender, chipped tooth, basement flood, or really unfortunate haircut.

0:03: Extra credit: Automate it!

If you're having trouble saving, we highly recommend an automatic transfer program. You can also see if your employer will split your paycheck (direct deposit) between your ordinary account and your short-term savings account, or you could set up an auto-transfer from your checking account into your emergency account.

Investing Basics: Getting Started Continued

2008-06-06T15:46:00.000-07:00

Getting ready to invest

After seeing all those impressive numbers, you're probably itching to take the next step. You want to drop everything and start investing right now. But ho-o-o-ld on! Would you start running a marathon without first stretching? Would you pour syrup on the plate before the pancakes are done? Having dazzled you with the power of compounded returns, we want to make sure it's not working against you. This means that you've got to get rid of your high-interest debt.

Why? Because, by the very same principle discussed above, a dollar of debt can quickly compound into a few hundred dollars of debt. Does it make sense to try to save money at the same time your debts are multiplying like bunnies? The first thing you should do to prepare for investing is to pay down all of your high-interest debt, such as credit card debt. Although some kinds of debt may be low-interest or tax-advantageous (such as your mortgage), the rule of thumb is: Be free of high-interest debt when you begin to invest.

Every dollar you can put toward investing is a dollar that can work for you. And, Fool, every dollar you avoid putting in the pocket of a financial professional, a full-service broker, or a mutual fund manager, is also a dollar that is creating value for you. (We'll get back to this point later.)

Pay yourself first

How can you become a successful investor? By making investing a part of your daily life. It's not such a stretch -- money is already part of your daily routine. Think about each decision that affects your finances, whether it is ordering a $4 glass of wine with dinner or getting a home equity loan to pay down credit card debt.

We're not suggesting that you obsess over every penny you throw into a wishing well. (Please don't embarrass your mother by diving in after it.) If you pay yourself first, you won't have to. What do we mean? When you pay your bills -- the credit cards, the gas, water, electric, cable, and phone bills, and the kid who mows your lawn and the one who throws the newspaper onto your neighbor's porch instead of yours every other morning -- add one more item to that list. In fact, we think it should be the first item. Put yourself at the top of that list: Pay yourself first. Then you don't have to think about it again until next month.

The Motley Fool recommends that you put away as much as possible, with the goal being to save 10% of your annual income (total, not take-home). Depending on your obligations, you may be able to save more or less. The more you save, the more wealth you create -- but anything is better than nothing. Remember, even a few dollars saved now will be worth more than lots of dollars saved later. So take advantage of services that automatically withdraw money from your checking account and transfer it to some savings or investing vehicle. You'll be surprised how easy it is to live on a few less dollars each month. You probably won't even notice the difference.

You can be flexible about this. If you find yourself eating beans and rice every night for a month (and you don't like beans and rice), then maybe you're paying yourself too much, or perhaps you're not in a position to start paying yourself at all. But as soon as it's feasible, jump in. Remember Patrice and Bianca!

Stay tune for descriptions of Saving and investment vehicles ...

Investing Basics: Getting Started

2008-06-06T15:29:00.000-07:00

Why invest?

Welcome to Investing Basics! If you've found your way here, chances are you've either got some money socked away or you're planning to do so. What are you saving for? Retirement? College for the kids? A new speaker system complete with woofers and tweeters? An exotic animal menagerie complete with Chihuahuas (woofers) and canaries (tweeters)? A retirement villa in the sun-baked hills of Tuscany?

Say you take $2000 of your savings and put it into the stock market. If your money returned 11% a year (the S&P 500's historical average), two grand would be worth $53,416.19 after 30 years. You could buy that Tuscan retirement villa (or at least come up with the down payment) with that kind of money.

Maybe you don't have $2000 burning a hole in your bank account, but perhaps you can afford to invest your lunch money. Brown-bag your lunch and sock away just $4 a day, 250 days a year. It's not a lot, but if you're in your early 20s, you've got the investor's best ally on your side -- time. If you invest $1,000 once a year in an investment that averages an 11% annual return -- the annual stock market return since 1926 -- it'll grow to more than $1 million after 46 years, which is right around the time you'll be ready to retire.

Of course, as you get older and more financially stable, you should be able to put away more to invest. Upping the ante to just $166 a month (lunch money plus about what you pay for basic cable TV and a movie channel), would put you at the million-dollar mark in just 39 years.

Simply put, you want to invest in order to create wealth. It's relatively painless, and the rewards are plentiful. By investing in the stock market, you'll have a lot more money for things like retirement, education, recreation -- or you could pass on your riches to the next generation so that you become your family's Most Cherished Ancestor. Whether you're starting from scratch or have a few thousand dollars saved, Investing Basics will help get you going on the road to financial (and Foolish!) well-being.

The power of compounding

The table below shows you how a single investment of $100 will grow at various rates of return. Five percent is what you might get from a certificate of deposit (CD) or with a government bond, 10% is a little less than the historical average stock market return, and 15% is what you might get if you decide to learn how to pick your own stocks . (Click the link to go to the table)

Why is the difference between a few percentage points of return so massive after long periods of time? You are witnessing the miracle of compounding. When your investment gains (returns) begin to earn money, too, and those returns start to earn... small amounts of money can mushroom very quickly. Extend the time period or raise the rate of return, and your results increase exponentially. For instance, if you start young, say at 15 years of age, note how quickly a single $100 investment grows, especially in the later years.

Looking at it another way, let's compare two teenagers and their lifetime savings habits. Bianca baby-sits a lot and spends most of her spare time reading. She saves $1000 a year starting when she's 15 and invests it in the stock market for 10 years earning 12% per year on average. After 10 years, she comes out of her shell, stops adding money to her nest egg, and spends every penny she earns club hopping and on trips to Cancun. But she keeps her nest egg in the market.

Compare her account to that of her friend Patrice, who squandered her early paychecks on youthful indiscretions. At age 40 Patrice gets a wake-up call when her parents retire on nothing but Social Security. She starts vigorously socking away $10,000 every year for the next 25 years. Guess who has more at age 65? That's right, Bianca. (You figured it was a setup, didn't you?) Her 10 years of saving $1000 per year (just $10,000 total -- the same amount Patrice put away in just one year) netted her $1.6 million by age 65. Patrice, on the other hand, scrimped for 25 years to invest a quarter million dollars out of her own pocket and ended up with just under a million. Neither will be going to the poorhouse, but you see our point: Bianca's baby-sitting money grew for 50 years, twice as long as Patrice's, and Bianca barely missed it.

(It's almost not fair to mention this, but Bianca's money was in a Roth IRA. Patrice could only put 20% of her money in the Roth ($2000 per year). So Bianca's $1.6 million is tax-free, but Patrice will be paying capital gains taxes on most of her money.)Every day you are invested is a day that your money is working for you, helping to ensure a financially secure and stable future.

Financielle Note: I myself am a very cautious investor and stick to things like GICs. Good luck finding an investment that will give you a 15% return if you are willing to go into riskier investments than I am; you are much braver. For those like me who seek the more secure investor vehicles some institutions provide GICs that are linked to a diversified portfolio of stocks where you are guaranteed a certain percentage but can make more on top of that based on how that portfolio does. If you want to tread lightly into stocks something like that may be an option.

Cool Stie: Shopping Notes

2008-06-01T09:11:00.000-07:00

Are you always buying things at regular price only to find that a week later it's gone down in price well stop because shopping notes is here. Shopping notes instantly alerts you to a drop in price on items via e-mail. Just enter the web address of the item you want to watch, provide an e-mail to receive price alerts and let the savings begin.

Beauty More or Less

2008-06-01T08:35:00.001-07:00

Even though a day can be a total waste of makeup doesn't mean you have to waste your money on looking good.

Check out LouLou Magazines More or Less Spring beauty trends and its One Look, two Prices section.

State Farms Red Portfolio

2008-06-01T08:07:00.001-07:00

State Farm's Red Portfolio takes you from:
Getting Started which includes taking inventory, managing your money, eliminating your debt, Setting your Goals.

Reaching your Goals which includes saving for a home, getting married, Having a baby, raising your kids, planning for post-secondary education.

Planning for Retirement which includes Getting an early start, Balancing family and future, Making the most of it.

Protecting yourself which includes protecting your family, protecting your belongings, protecting your future.

Owning a Business which includes starting a business, choosing what's right, protecting your business, taking care of employees.

The Money Diaries: The Frugal Giver

2008-06-01T07:18:00.000-07:00

Lyndsey Payzant Wells
Age: 23
Home: Los Angeles
Job: Public-Relations Asscociate
Famiy: Married no Children
Monthly Spending: $2,058
Goal: Save for a down payment on a house

Lyndsey's Monthly Outlays

Rent .................................................... $551
Car payment and insurance..................$301
Church donation..................................$230
Savings................................................$200
Gas.......................................................$153
Groceries..............................................$130
Phone, Internet, Cable...........................$96
Eating out..............................................$89
Health Insurance and expenses..............$80
Household and laundry..........................$78
Gifts.......................................................$59
Clothes...................................................$39
Grooming and beauty.............................$39
Utilities..................................................$13

The Story:Thanks to personal discipline , Lyndsey, who earns just $30,000 a year, managges to spend the bare minimum on almost everything. She packs a lunch most days for herself and her husband, Brandon, who is as frugal as she is. And she rarely shops for new clothes or indulges in beauty treatments.Still, she is willing to set aside money for things that are meaninful to her. She gives nearly 10 percent of her income to her church and puts $200 a month into savings for a down payment on a house. (Brandon is saving an additional $300 a month) she knows she should invest in the 401(k) retirement plan her employer offers but she just hasn't gotten around to it yet.

The Feedbacl by Certified financial planner Peggy Cabaniss: "Lyndsey should be really proud of her frugality," says Cabaniss. If she and Brandon continue to save $500 a month, the couple will have $25,000-enough for a down payment on a modest home-in about four years. If Lyndsey wants to have the down payment sooner, she might have to reconsider tithing 10 percent of her income until she reaches that goal, since the rest of her spending is so lean. "it's about choosing her priorities," says Cabaniss. The planner sees no major problem with Lyndsey's delaying 401(k) contributions until she and Brandon buy, especially because she's so young. Meanwhile, She shouldn't be afraid to spend a little on fun once in a while.

The FruGal does Sex and the City

2008-06-01T06:49:00.000-07:00

In Honour of this weekend's much anticipated release of Sex and the City and thanks to an article in the Ottawa Citizen "Faking it in NYC" by Rebecca Stevenson; I decided to take a look at getting carried away to NYC on the cheap.

Best Guide for a FruGal: Frommer’s NYC Free and Dirt Cheap by Ethan Wolf . Follow the link to see free exerpts.

12 Month New York Sales Calendar

Free and Cheap Movies

Cheap Shopping/Fashion: Housing Works Thrift Shops

Bag, Borrow and Steal

Must See TV !

2008-05-18T07:21:00.001-07:00

Click the link and watch any and all the shows offered by the Business News Network.

Informative articles from this month's ShopSmart Magazine

2008-05-17T09:18:00.000-07:00

Cool Tool ! Stock Calculators !

2008-05-17T09:05:00.000-07:00

Cool Tool ! Credit Card Calculators

2008-05-17T08:57:00.000-07:00

Top 5 Smart Money Moves !

2008-05-17T08:49:00.000-07:00

Create a Budget: Nearly half of American families spend more than they earn each year, according to the Federal Reserve, plunging them further and further into debt. That's why it's imperative to create a budget, says Judy Lawrence, author of "The Budget Kit." Make a list of your fixed costs, like your mortgage or rent payments. Then add that to the total amount you spend per month on such things as utilities and taxes. Together, these expenses shouldn't surpass 35% of your monthly take-home income, says Lawrence. Meanwhile, car loan and insurance payments, as well as car maintenance costs shouldn't exceed 24%. Next, add up any regular monthly expenses that regularly fluctuate in price such as a cellphone and grocery bills. Once you've tallied up all of these costs, you'll know how much money you have left to spend on miscellaneous expenses like dining out and shopping.
Build Up Savings: In times of uncertainty, it can be a life saver to have a savings cushion. After all, no one knows when they may be faced with an emergency or the possibility of getting laid off. To feel confident that you can financially weather anything that comes your way, you should have at least three to six months worth of expenses socked away, says Jane Newton, a fee-only certified financial planner at Chatham, N.J.-based RegentAtlantic Capital. The best way to build up your savings is to pay yourself 10% of your take-home salary each month before you pay your bills, says Newton. Set up an automatic deposit, which will transfer that amount from your checking to your savings account each payday. That way, you won't be as tempted to touch the money. Consider stashing your cash in a high-yield online savings account like those offered by HSBC Direct and Emigrant Direct. Although their interest rates have been dropping -- they're currently 3.05% and 2.75%, respectively -- they're still higher than the rates at most major banks. High rates can be found at the bricks-and-mortar banks as well, but they'll come with a slew of restrictions. Washington Mutual and Wachovia are now offering savings accounts with 5% rates. But there are limits to how much money you can put into these accounts and how long these rates will last. There are also rewards checking accounts offered by small community banks and credit unions that carry yields as high as 6.26%. But you'll need to do all of your banking online and you must make a set number of debit transactions each month.
Tackle Credit-Card Debt: If you're not aware of the credit crunch yet, you will be soon. Faced with a growing number of delinquencies, credit-card companies are tightening their lending standards on their delinquent and responsible card holders, subjecting them to decreased credit lines and skyrocketing interest rates. This means that getting out of debt as soon as possible is more crucial than ever. The most important tip to keep in mind is to not be late or miss any payments. "In this economy, credit-card companies won't hesitate to raise your interest rate if you're late on just one payment," says certified financial planner Sheryl Garrett. They may also notify the credit bureaus, which could result in higher interest rates on all of your cards -- not to mention any loans you may want to take out in the future like a mortgage. Start by paying down the balances that are easiest to tackle, says Garrett. You'll see results faster, and you'll be motivated to deal with the more challenging cards, she says. Keep in mind that a quick way to pay off some of your debt is by putting any income that's separate from your salary -- like your tax returns or any salary bonus -- toward it. You should also call the credit-card companies to negotiate better rates on your credit cards.
Plan Your Retirement:Between putting money into savings and paying down all your debts, it's easy to see why retirement planning is often put on the back burner. Even if you have just a little money leftover each month, it's important you start contributing to your 401(k) as early as possible. Thanks to the power of compounding, contributions made earlier on in your life will have a longer time to grow and multiply. A 25-year-old worker who contributes $300 per month to his 401(k), assuming a 6% return and a company match of up to 6% of his salary, will have $920,142 at age 65. The person who starts at 35 will have just $470,043 by that age. If you can afford it, your 401(k) contribution should equal the amount required to get your company's full match, says Pamela Hess, director of retirement research for Hewitt Associates. Consider this free money that you should take advantage of no matter what. To keep your 401(k) properly diversified, you'll need a mix of both conservative and risky investments. If you feel uncomfortable choosing them on your own, consider signing up for a target-date retirement fund. These mutual funds are specific to each age group and become more conservative, moving from equities to bonds, as the investor nears retirement.
Estate Planning: You've worked hard to acquire your assets, and you probably plan on passing them down to the people you care about whether that's your spouse, children, or friends. But if you suddenly pass away without having planned your estate, there's no guarantee that your assets will be given to the people you intended them for. That's why it's important to start estate planning from the moment you have assets in your name, be it real estate, investment portfolios or cars. Prepare a list of all of your assets, and give it to a professional estate planner who, for around $200, can draw up an estate analysis, which provides an estimate of your assets' current value, says David Phillips, author of "Estate Planning Made Easy." Then, give the estate analysis to your attorney. As a rule of thumb, individuals with less than $100,000 in assets should opt for a will whereas those with more than $100,000 should go with a trust. With both a will and a trust, you decide who gets which assets and if that person will receive them in a lump sum or in increments over their lifetime. However, with a will, after you die the court will have to determine if it's valid before your beneficiaries can receive your assets, which can tie the process up for months, says Phillips. Keep in mind though that if you have any outstanding debts at the time of your death credit-card companies and banks can take what you've owed them, leaving your heirs with a smaller estate than you had planned.

Six Step Debt Elimination Plan

2008-04-16T07:14:00.000-07:00

Step 1: Know wher you standIgnorance may be bliss, but it won't solve your problems. The only way to get out of a debt predicament is to know how beholden you are to creditors. Where are you starting from? Look honestly, as painful as it may be, at how much you currently owe.Once you've tallied your debt, add up your income and subtract fixed expenses. The amount leftover is money for discretionary spending and paying down debt.
Step 2: Create a Plan Take a short self-inventory to determine the best repayment plan. There are two main approaches to paying off debt:

High to low. You pay off the card with the highest interest rate first. This gets the most out of every cent you send.-
Big to small. You pay off the card with the biggest balance first, regardless of interest rate. This creates big results fast, but may not be the best bang for your buck.

Step 3: Set aside some savings - While it may seem counterintuitive, saving is a crucial aspect of a sound strategy to pay down debt. If you have three to six months of living expenses saved up, you're golden; otherwise, build an emergency savings buffer.A savings cushion can keep you from falling back into the deficit-spending cycle. After paying your minimums, put half of any extra money into savings and half into paying down debt.

Step 4: Pay more than the minimum - Do you understand how much you're paying if you only make minimum payments or how long it will take you to repay your debt?It is crucial to pay down more than the minimum each month. If you can't afford to pay down more than the minimum, sit down to figure out where you can save more. Leave no stone unturned.

Step 5: Imrpove your Terms - Creditors may waive fees, reduce interest rates or agree to more flexible repayment terms. All you have to do is ask. Knowing how to ask is important, though. Your chances of successfully negotiating with creditors increase greatly if you have a "deal breaker," such as another creditor willing to take on your debt at better terms.

Step 6: Seek Counsel- If you don't have the time or know-how to get results on your own, turn to a good credit counseling company rather than stalling or feeling frustrated by ineffectual attempts at vague behavioral changes.A consultation with a good credit counselor takes an hour or so -- you can even phone in. A credit counselor can get you on a budget or refer you to other options.

5 Steps to Making a Budget you can Live with

2008-04-16T07:07:00.000-07:00

Keep Track of your Regular Expenses:If you're the one paying the bills each month, this is probably the easiest part of your budget to put together. Take note of all your regular monthly expenses, including fixed payments for, say, your car and mortgage (or rent), and your fixed (but sometimes variable) costs, such as gas, cable and phone bills. Then jot down your seasonal, biannual and annual expenses. For example, if your car needs a tune-up at least once a year, factor that cost into your annual budget. Once you're done, you should have a good sense of what you're day-to-day living costs you. While there's no set formula that proves whether or not you're spending too much of your monthly income on these expenses, you can typically expect home payments, including your mortgage, utilities, taxes and maintenance costs to consume up to 35% of one month's salary, says Lawrence. And transportation costs including car payments, insurance and maintenance don't normally surpass 24% of one month's pay. Obviously, these percentages will vary based on your location and marital status, among other things, she says. Click here for more on how to track your spending.
Prepare for Rising Energy Costs:For the 2007-2008 winter season, the average household is projected to spend $1,955 on heating oil, a 33% increase from the previous winter, according to the Department of Energy (DOE). Homes with natural gas are expected to pay $865, a 6% increase. Rather than getting hit by a monstrous bill, re-adjust your budget with a few simple steps. If you live in a state with cold winters, ask your oil or gas suppliers if you can sign up for a set pay rate for the entire year. That way, rather than receiving exorbitant bills in the wintertime, you'll pay a set amount each month, says Antoine Smith, information specialist at the DOE. Keep in mind that once you sign up, the rate won't change even if there's a mild winter. You can also keep costs down by winterizing your home. "Little things like insulating your doors and windows can save you a couple hundred dollars a month," says Jason Rich, author of "Make Your Paycheck Last." Click here for more on how to cut your winter energy bills. Gasoline retail prices are also projected to rise to an average $3.15 per gallon from $2.62 in 2006, according to the latest DOE annual data. Before you fill up, check web sites like GasBuddy.com and Mapquest, for gas stations with the lowest prices. You can also increase you car's fuel efficiency with some basic maintenance, like a tune-up and checking your tire pressure, says Rich. For more tips, click here.
Eliminate Credit Card Debt:The average household with at least one credit card carries $9,616 in credit-card debt, according to Cardweb.com. If you have credit-card debt, it's time to start paring down the lifestyle and focusing on paying it off. First, remove as many entertainment and other unnecessary expenses from your budget as you can, and then put all of that money toward paying off your debt. Otherwise, no matter how well you plan your budget, you'll always end up overspending on the high interest rates and fees that accompany your credit cards, says Rich. Click here for more ways to tackle debt.
Build an Emergency Fund:Unexpected emergencies, like temporary unemployment and medical expenses, can blindside you financially. Rather than depending on an interest-charging credit card or loan to help weather such storms, try to save as much as you can when your finances are stable so that you'll have a cash reserve when you need it. In order for this fund to serve its purpose, it should have three to six months' worth of your take-home pay, says Lawrence. That may sound like a lot, but even if you're on a tight budget, you should try to contribute to your emergency fund as often as possible, ideally each month. Set up an automatic contribution to your bank account from your paycheck, for, say, $50, during each pay period. That way, you pay yourself first without even realizing that you're left with less money for day-to-day expenses, says Elaine Morgillo, a certified financial planner with offices in North Andover, Mass., and York, Maine. To help your fund grow, put it in a high-yield savings account where it accrues interest and where you can access your cash within 24 hours of requesting it, says Morgillo. If you use an online account, make sure it's FDIC-insured. Online banks such as HSBC Direct and Emigrant Direct have an annual percentage yield of 4.25% and 4.65%, respectively -- some of the highest rates out there. If you still have extra cash after contributing to your emergency fund, deposit it in your 401(k) -- and make sure you're taking full advantage of your company match -- or your IRA. Click here for more on 401(k)s and click here for more on IRAs.
Estimating your Tax Bill: Before you finalize your budget for the year, schedule an appointment with your accountant to get a rough estimate of your tax bill. Because of last year's volatile markets, you're likely to get hit with capital-gains taxes if your holdings include mutual funds in brokerage accounts that had high returns in 2007, says Theodore Lanzaro, certified public accountant and managing partner at Shelton, Conn.-based Lanzaro CPA. This is especially the case if you invested in the energy sector and foreign markets, such as China, India, Russia or Brazil, he says. Click here for more on capital-gains taxes. Your accountant can also keep you abreast of the developments surrounding the alternative minimum tax (AMT). As of press time, President Bush is expected to sign a bill into law that will spare more than 20 million middle-class taxpayers from the AMT. Who will get hit with this tax? That depends mainly on whether you itemize deductions for state and local taxes, your number of personal exemptions, and if you exercise any incentive stock options. Although it's difficult to pin down a starting salary that's affected by this tax, it's unlikely the AMT will hit single taxpayers with income under $75,000 and married people filing jointly that make less than $150,000. Click here for more on the AMT.

Micro Loans for Macro Change

2008-04-16T06:46:00.000-07:00

I've always been fascinated with Micro Loans and finance; the idea that giving women in developing countries small loans to start their own business has such a huge economic impact is incredible to me. I was reading the pink magazine website and saw this e-newsletter interview and thought how I would like to share it.

SUCCESS SECRET:"Being aggressively optimistic, bold and persistent, and having zero fear of failure."Jessica Flannery, Co-founder and director, Kiva

Micro Loans for Macro Change
The founder of Kiva tells how small donations add up to a whole new life for women entrepreneurs in developing countries

By. Cynthia Good

Thirty-year-old Jessica Flannery came up with the idea for Kiva (kiva.org) four years ago, inspired by a Nobel Prize winner speaking at Stanford, where she was a student. To date, the nonprofit run by Flannery, her husband, Matt, and their team has raised more than $23 million in no-interest loans from 250,000 lenders to fund microbusinesses in 40 countries. About two-thirds of Kiva's borrowers are women. I caught up with Flannery, co-founder and director of Kiva, at its headquarters in the Mission District of San Francisco this week to talk about connecting people through lending to alleviate poverty.

PINK: What's your biggest success story?

Jessica Flannery: Any woman who takes a loan – despite the cultural poverty, despite not being seen as valuable outside the home – is brave in her own right. I met this one woman, Elizabeth, in Tanzania. She was humble but confident; she looks you in the eye and has a firm handshake. She tells me she started her charcoal business with $100 a few years ago. It turns out she also started five other businesses and employs her husband. She's like a mogul in this Tanzanian village. I thought, "If you'd had half the opportunities I've had in my life, I'd be working for you."

PINK: Which lender has most impacted Kiva?

J.F.: Every lender on the site is doing something heroic. For instance, a woman named Ann Brown, who has her own business in Seattle making leather purses, started her company with a small loan. So she wanted to give back to another woman

PINK: What's your ultimate goal for Kiva?
J.F.: It's possible to hit $1 billion in five years. But more importantly: What if everyone in the world could be connected, and could either empower someone or be empowered? Or, better yet, both? I'd love to see everybody on the planet have the chance to either provide or access dollars.

PINK: You have 26 full-time employees and hope to have more than 40 by the end of the year. Is Kiva more than a job to your employees?

J.F.: Yes. Each person has a story about why he or she connected with Kiva. This year we had a staff retreat where everyone explained why they're at Kiva. It was one of the coolest moments of my life. One day this married couple just showed up and said, "We want to help." They've been here for two years. Everyone's had an experience that opened their eyes to people who need so much. They are so passionate. One of those who manages our microfinance partnerships is 24 and a total rock star. He just got back from East and West Africa visiting borrowers, and he came straight to work from the airport. It's not "just a job" for any one of us. We're all able to use our gifts.

PINK: Unlike at other charities, 100 percent of donations to Kiva go to recipients. How are you able to keep the organization running?

J.F.: We're able to pay our salaries and keep the lights on thanks to lenders who add an optional donation to Kiva when they lend to an individual on the site. Based on that, we've even been cash flow positive in the past, but we're growing so quickly now that we're fundraising quite aggressively again. It's a nice thing, culturally, to know that the majority of our operational costs have been paid for by lenders who tack a few extra dollars onto their loans. We know they support us holistically.
We've set up Kiva like a business. We have other revenue streams, such as interest on the money in our accounts before it gets to borrowers and after it comes back. We also get additional donations from large foundations and wealthy individuals, and revenue for services. For example, instead of frequent flier miles or points for other stuff, we designed a system for one credit card company to turn their clients' points into Kiva credits.

PINK: You've been on Today and Oprah, and Fortune called Kiva "the hottest nonprofit on the planet." What's your secret to great publicity?

J.F.: The Kiva story is just compelling, and our community of lenders and borrowers is so vibrant. Every person has a story, and there are thousands of these stories posted on our site. It's endlessly interesting. And the connections that form are blurring the traditional donor/recipient lines that exist elsewhere. On Kiva, it's not about the strong, in-control American giving a handout to a weak, needy poor person. It's individuals in 72 countries lending to individuals all over the world, and it's a relationship of equals – of business partners. Lenders kick things off by sharing resources and lending someone $100; but the borrower is the one who then has the power, and when she repays you, this virtuous circle can continue.
Also, the Kiva model is sustainable, which is somewhat rare in the nonprofit sector. Instead of a donation or a financially profitable investment, we created this new product, a charitable loan that you get back and can use again after the borrower has repaid, usually in six months to a year

PINK: How do those who want to start businesses find you?

J.F.: We have microfinance institution partners who serve as our experts on the ground. There are 100 million potential borrowers, and only 20 percent of the need is currently met, so we believe in empowering these expert partners of ours to serve more people. Our partners need more cash. So Kiva offers them a platform to fundraise through a peer-to-peer lending connection on kiva.org.

PINK: How do you make sure they don't take advantage of the goodwill and the cash?

J.F.: We do a ton of due diligence, find great partners who manage the entrepreneurs and administer the loans well, and keep information flowing by requiring partners to blog on our website about the business owners' progress. It's a lot of work to do all of the necessary audits and manage the relationships, but we have a program that deploys a large number of amazing volunteers in the field to check up on how things are going.

PINK: What surprises you the most in your work?

J.F.: We deal with human growth and human potential, and nurturing this can be a slow process, and then you hook that up to the rocket ship of the Internet. It's interesting to be stretched between these two worlds. I feel like it made me realize everything is so possible. You don't need to have 40 years of experience to have an idea that can make a difference.

PINK: What is your greatest hope?
J.F.: If we can blur the lines between rich lenders and the poor, and treat and think about each other as equal human beings – that would be the end game. The rich and the poor thinking about each other as people. That would be pretty cool.

Cheap Frill !

2008-03-21T07:13:00.000-07:00

It has been a while since I did a cheap frill post but With this long winter dragging out I figured you could use a cheap and chocolatey frill. I got this recipie off of Pink of Perfection.

Chocolate Truffles

makes 3 dozen

Messy and hands-on, these would be so fun to make with kids. I have made these with both super high-quality chocolate and Bakers Treat, and both are fantastic. Buy the best you can find, or scrimp on the chocolate to put some pennies away for Paris. Either way you will have made delicious truffles. Oh, and if you can bare to share, I ought to mention these make great gifts.

1 pound bittersweet chocolate

1 cup heavy cream

cocoa powder, for dusting

Chop chocolate finely and place in a large bowl. In a small saucepan, bring the cream to a boil and then pour directly over chopped chocolate. Let stand for 10 minutes. Stir to combine chocolate and cream, and then leave alone for another 15 minutes to thicken.Pour ganache mixture into a shallow dish or baking pan. Refrigerate ganache has set, and is very cold but still pliable, about 30 minutes.Scoop out teaspoons and roll between your hands to form ball-shapes. The heat of your hands will warm up the chocolate and cause a big ole mess. You could wear rubber gloves, but what's the fun in that? If the truffles are quite melty at this point, you could pop them in the freezer for a few minutes to stiffen them up again.Next, dash the chocolate balls through cocoa powder until covered. Crown a plate with one or two, and carry to bed.

Know Your Marginal Tax Rate

2008-03-21T07:06:00.000-07:00

According to Patricia Lovett- Reid, "Proper tax planning means knowing always where you fall on the marginal tax rate scale. Your marginal tax rate is the amount you'll have to pay on each additonal dollar of taxable income you make in a year." Verify the rates with the Canada Revenue Agency (CRA) as rates may change.

Ten Sure Fire Ways to Save Tax Dollars

2008-03-21T06:56:00.000-07:00

Strategy #1: "Buy and hold" to defer taxes for a lifetime
Strategy# 2: Maximize your RRSP contributions
Strategy# 3: Split your income with family members
Strategy #4: Invest in your home
Strategy #5: Dividends - your secret weapon
Strategy # 6: Borrow to invest
Strategy #7: Maximize your RESP contributions
Strategy #8: Maximize tax deductions
Strategy #9: Maximize employee benefits
Strategy #10: Employ yourself (part - or full time)

Note: the taxes you save from the above strategies depend on your marginal tax rate, your employement status and your investment strategies.

7 Tips for RRSP Contribution

2008-03-21T06:49:00.000-07:00

Have a plan: It is all too common that Canadians invest in "something" when they scramble to make their RRSP contribution before the deadline. Often, the "something" is an investment recommendation from an advisor that unfortunately results in a potpourri of holdings that turn out to be yesterday's winners. This year, when investing your contribution make sure that you have a well-defined asset allocation strategy and refuse to invest until you or your advisor comes up with one

Park your contribution in a money market fund: A RRSP allows you to hold cash but while you wait to develop an investment strategy, invest the contribution in money market funds or cashable GICs. That way, you have the access to cash when you are ready to actually invest but you are earning something on your funds in the meantime.

Ignore the ads: When money managers take out ads showing the excellent past performance of some of their mutual funds, you should remember that a) investors don't get to earn past performance b) there is no correlation between past performance and future results and c) when retail investors jump on a trend, it is already too late to ride that train. So, this RRSP season, just ignore the glitzy ads and the drooling returns so prominently displayed.

Check out low-fee options: Canadian mutual funds are notoriously expensive. The average MER of a Canadian equity fund is close to 2.5%. The math is simple - the higher the fees, the lower your returns. Fortunately, low-fee funds are available from many boutique money managers whose fees are substantially lower at 1.2% to 1.8%. By paying lower fees, your chances of earning higher returns than average increase substantially.

Don't hold too many funds: Many investors are under the mistaken impression that the more funds they hold, the better diversified they are. A handful of funds representing different asset classes will provide you with all the diversification you need.

Consider indexing: Index funds simply track a popular index such as the TSX Composite or the S&P 500. Index mutual funds or Exchange-Traded Funds that can be bought and sold like a stock have the following advantages: a) low fees b) tax efficient because their turnover is typically very low c) since the vast majority of funds fail to beat their benchmarks, an index fund is likely to provide you with higher returns.

Tread warily among these investments: In my opinion, it is best to stay away from these investments: principal-protected notes, labour-sponsored venture capital funds, funds that invest in narrow sectors such as biotechnology or energy or materials, funds that invest in narrow geographic areas such as China or India, mutual fund wraps etc.

Households Forced to Budget Money

2008-03-21T06:27:00.000-07:00

With the recent downturn in the American economy , the effects of which are being felt here at home in Canada people are being forced to take stock of their priorities and consider their financial well being. Thi article from AOL finance should be read and considered in making some financial decisions.

By Nick Carey,
Reuters

ATLANTA (March 18) - After years of living large, U.S. households are finally learning what financial experts thought they never would: to live within their means.

Economists have long warned that the U.S. consumer was on an unsustainable spending frenzy and that savings rates were dangerously low. Now, families are being forced into financial responsibility by the housing downturn and a weakening economy.

"For many years people on Wall Street have refused to believe that American consumers could ever change their spending habits," said David Rosenberg, North American economist at Merrill Lynch . "But it's happening."

"Frugality is in, extravagance is out," he added.

Consumer spending accounts for 70 percent of the U.S. economy and, according to Rosenberg, 30 percent of that is discretionary spending -- that is, buying stuff you can live without.

Theresa Parks is a case in point. Parks, 36, paints lines on roads and highways for the city of Atlanta for a living. She bought a home in 2006 for herself and her three daughters in the suburb of Riverdale, but fell behind with her $669 monthly payment. Her lender agreed last September to a repayment plan that required an additional $188 a month through to June 2008.

"We had to cut eating out at restaurants and we had to stop shopping," Parks said. "That was the hardest part for my teenage daughters because they love to shop. But I sat them down and we agreed we'd do anything to keep our home." Regina Grant of the Atlanta Cooperative Development Corp helped Parks rework her budget and said most of her clients require help managing their spending. "None of them have ever prepared a budget, but they have to now if they want to keep their homes," she said. Just a few miles away, Ozell Brooklin, director of nonprofit Acorn Housing tells a room of some 15 struggling borrowers that if they want their banks to lower their interest rates or even forgive some of their debt, they must prioritize spending. "Your first priority will be your mortgage, then food, then utility bills then one family car if you need it for work," he said, standing at a lectern and counting off those priorities on his fingers. "Everywhere else we're going to cut spending because your lender won't make a deal with you if they think you have money to spare for luxury items." Some 700 miles further north, in Cleveland, Ohio, Mark Seifert of nonprofit East Side Organizing Project says counseling stricken borrowers means telling them harsh truths. "We get home owners coming to us in trouble, but then we look and see they have only make $50,000 a year and yet they own an Escalade," he said, referring to a Cadillac sport utility vehicle that sells for about $55,000. "And you have to ask them 'What on earth were you thinking?'" As the U.S. housing crisis deepens, many more Americans will be forced to budget to avoid foreclosure, with serious implications for an economy teetering on the brink of recession. "This is going to take a bite out of consumer spending and is an ominous sign for the economy," said University of Maryland business professor Peter Morici. "We are in a recession that was manufactured on Wall Street by the major banks

BACK TO BASICS
One of the hallmarks of the recent property boom was that buyers could get into a home with little or no money down. Those days are apparently over. "What we're seeing a lot of is people with good income who haven't put any money aside and now have to save for a deposit on a home," said Van Johnson, president of the Georgia Association of Realtors. "When people like that don't spend, restaurants and retailers suffer and it tends to slow the economy down." "There will be pain in that correction," he added. Terry Kibbe of Washington, DC-based nonprofit group the Consumer Rights League -- which is campaigning against any form of government "bailout" for banks or borrowers -- said that higher down payment requirements are a natural consequence of the excesses of the boom years. "The real estate boom was not going to last forever and it is becoming more difficult to buy a home," she said. "But the market will correct itself and this is part of that process." There are already signs that American consumers are "trading down" in the search for bargains, with February same-store retail sales showing customers favoring discounters like Wal-Mart Stores Inc over higher-end retailers. Merrill Lynch's Rosenberg said that in the fourth quarter of 2007, Americans' household debt almost equaled 140 percent of their after-tax income and that they were spending 14.3 percent of their after-tax income paying down that debt. "Simply put, that means Americans are spending more on servicing their debt than they do on food," Rosenberg said. "This is not just affecting stressed-out or soon-to-be-foreclosed home owners. This hurts everybody." Rosenberg predicted Americans will start saving more, which he said will shave 1 percentage point off annual U.S. consumer spending growth for years to come. "It is hard to say how bad things will get," Rosenberg added. "We're in unchartered territory at this point." As for Theresa Parks of Atlanta, she says that her days of loose spending are over. "When I catch up with my mortgage, I aim to save every penny I can and plan for my daughters' future." Reporting by Nick Carey; Editing by Eddie Evans

Cool Podcast :MBA Working Girl Podcast

2008-02-17T09:19:00.001-08:00

This podcast is really informative. Take a Listen !

Tax Planning Tips

2008-02-17T09:06:00.000-08:00

Invest in a Registered Retirement Savings Plan (RRSP)
The RRSP is still one of the best tax savings vehicles available to Canadians. The RRSP is a tax deduction where the saving is equal to your personal marginal tax rate.

Watch investment income outside your RRSP
If you have investments inside and outside your RRSP, consider tax efficiency of investment income. Consider putting funds inside your RRSP that generate interest and other income, such as Guaranteed Investment Certificates (GICs), money market funds or bond investments. Investments that generate tax-preferred sources of income like capital gains or dividends should be in your non-registered portfolio.

Pay your RRSP fees from inside
Consider paying an annual administration fee from inside your RRSP since it is essentially the same as a tax-free withdrawal. Annual administration fees are not taxed as income when paid from assets inside the plan.

Make a final RRSP contribution
If you have earned income in the year you are required to convert your RRSP to a Registered Retirement Income Fund (RRIF) (age 69), you'll have RRSP contribution room in the next year, but no RRSP. You may want to consider making your next year's contribution in December, just before your required conversion date. The penalty for over contribution is 1% per month on the portion that exceeds your contribution limit. But, on Jan. 1, your over contribution disappears and you'll get a tax deduction on your next year's tax return.

Remember, you don't have a 60-day grace period with your final RRSP contribution. You have to make your final RRSP contribution by Dec. 31 of the year you turn 69, not March 1 of the following year

Set up a spousal RRSP
A spousal RRSP allows you to split future retirement income with your spouse. If you will be in a higher tax bracket than your spouse in retirement, consider a spousal RRSP. You will get the tax deduction, but when the money is taken out, it will be taxed in the hands of your spouse, who is in a lower tax bracket.

Contribute to a spousal RRSP after age 69
Regardless of your age, if you have qualifying earned income or unused RRSP contribution room, you can contribute to a spousal RRSP prior to Dec. 31 of the year your spouse turns 69 and claim the deduction for the contribution on your tax return.

Transfer a RRIF back to an RRSP
If you are not yet 69 and find you don't need your RRIF income, you can transfer your RRIF back to an RRSP and tax shelter the capital until you are 69. Keep in mind that the RRIF will still pay out the minimum required amount for the year in which the transfer occurs.

Transfer unused tax credits to your spouse
Certain non-refundable tax credits can be transferred to a spouse if the spouse originally eligible for that credit is not taxable or the credits have reduced the amount of tax to zero. By transferring the unused portion of the non-refundable tax credits for the age amount, pension income amount, disability amount and/or tuition/education amounts to a spouse, you can ensure you are taking full advantage of these credits.

Have the lower income spouse claim medical expenses
Not only is it better to have one spouse claim all the medical expenses, but it is usually in your best interest to claim the medical expense under the spouse with the lower net income (provided they are in a taxable position). The current ruling is that you can claim the portion that exceeds the lesser of $1,614 or 3% of the individual's net income.

Claim all charitable donations with one spouse
The credit for charitable donations is a two-tiered federal credit of 16% on the first $200 and 29% on the balance (plus provincial credits). Spouses are allowed to claim the other's donations and to carry forward donations for up to five years. By carrying forward donations and then having them all claimed by one spouse, the first $200 threshold with the lower credit is only applied once.

Your Biggest Money Worries Solved ! #6 I need to Develop a Financial Plan

2008-02-17T08:53:00.000-08:00

Worry 6: I Need to Develop a Financial Plan
A financial plan will help you achieve the things that are most important to you, whether that means paying for your child’s college education or creating a fund for a vacation home. It’s broader than a budget, encompassing savings, investments, and even insurance. Who needs a plan? Anyone who feels anxious or confused about her financial situation.

Do Right Now:
Write down the names of three people you know and admire who are diligent about money — say, your father-in-law, your next-door neighbor, and a former boss. Call each of them and ask a simple question: How do you plan your finances? You’ll come away with a wealth of practical recommendations, as well as the realization that none of this is rocket science.

Next Steps:
Do some reading. Try browsing around the site www.getrichslowly.org, a great all-around personal-finance website by blogger J.D. Roth, who writes entertainingly and knowledgeably about digging out of debt and investing for the future. A good basic book is Get a Financial Life, by Beth Kobliner (Fireside Press, $15, www.amazon.com). Although it’s aimed at people in their 20s and 30s, it’s a fine introduction to financial planning for people of any age.

Find a planner. If you want some hand-holding (and who doesn’t?), hire help. Look for a fee-only financial planner — the kind who charges a set price, averaging $200 to $250 an hour. Because she’s not making money from commissions on investments she sells you, you know her advice will be objective. To find an adviser, start by asking friends for recommendations. You can also go to the site run by the National Association of Personal Financial Advisors (www.napfa.org) and click on “Find an Advisor.” Also try the Garrett Planning Network (www.garrettplanningnetwork.com), another network of fee-only planners, and click on “Locate an Advisor.” Look for the letters CFP (certified financial planner) after the adviser’s name. That designation means the adviser had appropriate training and passed a rigorous test.Before you make an appointment, ask the planner if she is willing to have a short initial meeting with you at no charge, so you can make sure you feel comfortable with her before moving forward. (The Garrett Planning Network’s site has a comprehensive list of questions to ask at the first meeting.) A planner will help you create a solid game plan that takes into account your financial needs and priorities. And because you’ve paid for the advice, you’ll be more likely to follow it. “Once you pay for something, to not follow through feels like a waste, like throwing food away,” says author Jason Zweig. That’s just one more way to trick your brain into doing the right thing.

Your Biggest Money Worries Solved ! worry #5 I need a budget

2008-02-17T08:47:00.000-08:00

Worry 5: I Need a Budget
If you find yourself consistently short of money or you never seem to have enough funds for a vacation, a budget can help. A budget is simply a plan for how to spend your money. It doesn’t have to be fancy. In fact, the key to sticking to one is to make sure it’s both realistic and simple, says Jeffrey Pritchard, a financial planner in Beaumont, Texas, who writes the blog www.allfinancialmatters.com.

Do Right Now:

Grab a blank notebook. Write down everything you spent money on today, from the utility bill you paid by check to the bus ride you paid for with cash. Do the same thing tomorrow, and so on, for a full month. “That’s the only way you’ll know where your money is going,” says Pritchard.

Next Steps:

Take stock. At the end of the month, create basic categories — like food, clothing, shelter, and savings — then allocate your expenses accordingly. (If you’re computer-savvy, putting them into a simple Excel spreadsheet can make the math easy.) If you know you have certain areas of weakness, like eating out, break those out in more detail (restaurant meals, breakfast at a coffee shop, etc.).

Play with the numbers. Now that you know how much money you spend each month, you can divide it in ways that are more satisfying. For example, if you want to have more to spend on cultural events (like plays and concerts), maybe you are willing to forgo hair coloring at the salon. You should end up with a list of all your expenses and how much you would like to spend on them each month. Use this as a guideline for future spending.

Sign up for an online money-tracking program, like www.wesabe.com or www.mint.com. If you do your banking online, you simply link one of the programs to your bank and credit-card accounts and the program automatically grabs your spending activity from those sources and categorizes it for you. For example, if you put $125 worth of groceries from Whole Foods on a credit card, www.mint.com or www.wesabe.com records that in the food category. Then you can check your actual spending against your budgeted spending whenever you want, without having to save scraps of paper and enter the information by hand. However, you do have to remember to enter cash transactions. These programs can see that you made an ATM withdrawal, but not what you spent the money on, making them best for people who use debit or credit cards more frequently than cash.

Your Biggest Money Worries, Solved ! #4 I Don't know how much to Save for Retirement

2008-02-17T08:41:00.000-08:00

Worry 4: I Don’t Know How Much to Save for Retirement
In an ideal world, you would be saving 15 percent of your income each year in a retirement account, says Peggy Cabaniss, a financial planner in Lafayette, California: “Doing so would ensure you’d have plenty for a comfortable retirement.” In the real world, few people come close to this goal. Because each person’s financial picture is a little different and there are lots of variables to factor in, you need to run the numbers. Thanks to handy online calculators, though, you don’t need to do any of the tiresome math yourself.

Do Right Now:
If you have not opened a 401(k) or RRSP, do so now (see “I Save Too Little” ). Already have one? Great, now check to make sure you’re putting in the maximum allowed. That amount varies from company to company. If your employer doesn’t offer a 401(k), open an individual retirement account (IRA) at your bank or with a mutual-fund company. If you are self-employed or have self-employment income, consider opening a SEP-IRA. You can contribute as much as 20 percent of your self-employment income, up to $46,000 a year. And just like a 401(k), the money you’re contributing is pretax dollars.

Dig up the following documents (for both you and your spouse, if you have one) and stick them together in a folder. You will need to refer to them when you start plugging in your numbers.The most recent statement for your employer-provided retirement savings plan, such as a 401(k). If you can’t find it, call the toll-free number (or go to the website) of the investment company (such as Fidelity or Schwab) that handles the plan and ask for a copy. Most of these companies also let you view your accounts online.The latest statements for any other retirement accounts you may have, including IRAs, 401(k)s from previous employers, and SEP-IRAs.The Social Security statement that the government sends you each year. If you threw it away or never got one, request a copy at www.ssa.gov/mystatement.
Paperwork about your pension plan, if any. According to the Employee Benefit Research Institute, only 18 percent of nongovernment workers will receive a traditional pension, which the employer pays for in full rather than requiring the employee to kick in money. If you’re lucky enough to be one of them, you’ll want to factor those numbers in. If you’re not sure of your status, call your employer’s benefits coordinator and ask.

Next Steps:
Visit a free online calculator. Try the version offered by Money Magazine (which, like Real Simple, is owned by Time Inc.) at cgi.money.cnn.com. After you plug in the numbers from the documents you’ve collected, enter some other facts (like your tax rate), and choose how aggressively your nest egg is invested, the calculator will tell you how much money you will need to live comfortably when you say sayonara to your salary.The cool part is that you can play around with the numbers. What if I retire two years later? What if Social Security goes kerflooey? What if I change the way my money is invested? Then you can come up with several different game plans to choose from. For example, you may learn that if you move your 401(k) stash from mostly bonds to mostly stocks, you’ll be able to save $200 less a month starting now and still reach your retirement goal.

If calculators leave you cold, or just plain bored, consider making an appointment with a financial planner (see “I Need to Develop a Financial Plan”) for a personalized assessment of your savings situation.

Your Biggest Money Worries, Solved ! #3 I'm frustrated by high Gas Prices

2008-02-17T08:35:00.000-08:00

Worry 3: I’m Frustrated by High Gas Prices
Energy prices, in general, are on the rise, but the most dramatic spike has been for gasoline — up one-third over the past year, to an average $3.05 a gallon. If commuting to work by bike is unrealistic, consider these options.

Do Right Now:
Go to www.gasbuddy.com and enter your ZIP code. You’ll be connected to a network of websites that pinpoints which gas stations near you charge the lowest and highest prices. For example, a recent search of the Chicago area found a Marathon station in Oak Forest charging just $2.91 a gallon, vs. $3.53 at a downtown BP. Plan your next fill-up accordingly.

Clean out the junk in your trunk. Hauling around unneeded poundage — a case of water, tools, a spare stroller — forces your car to work harder. A hundred extra pounds in the trunk reduces fuel economy by up to 2 percent, according to the U.S. Department of Energy (DOE). If you spend $200 a month on gas, shedding that weight can save you $48 a year.

Next Steps:
Check your oil, air filter, and tire pressure. Keeping your car well tuned can increase fuel efficiency by up to 17 percent, according to the DOE.

Treat your car like your skin. Keep it out of the sun whenever possible. That’s because gasoline can evaporate right out of the tank (especially when the cap isn’t screwed on tight), and it evaporates faster when the car is hotter. So always drive straight into the garage, rather than parking in the driveway. When doing errands, park in the shade or in a parking garage.

Buy a fuel-efficient car. When it’s time to replace the car you have, go to the DOE-run website www.fueleconomy.gov. There you can compare the fuel efficiency of various models. You’ll find, for example, that driving a small hybrid car (average purchase cost: $22,000) for 25 miles costs $1.60 in gas, compared with about $5 for a basic four-wheel-drive SUV (average cost: $31,000). If you drive 10,000 miles a year, your savings would be nearly $1,400.

Your Biggest Money Worries Solved ! Worry #2 I Save too Little

2008-02-17T08:29:00.000-08:00

Worry 2: I Save Too Little
You and everyone else. The average American household saves a paltry 0.4 percent of its disposable income, down from 2.4 percent in 1999, according to the U.S. Department of Commerce. One culprit may be low interest rates. When you’re making very little money from your savings account, you have less incentive to save and more incentive to spend (and borrow).One way to get yourself to save more is to have a clear goal. Another is to have money automatically deducted from your paycheck or bank account.

Do Right Now:
Make your savings goals feel intensely real.
What do you want or need? A remodeled kitchen? A one-year sabbatical in Italy? To retire to a condo in Waikiki at the age of 55? Having appealing goals will make putting aside part of your paycheck palatable. “You can even try subliminally seducing yourself,” says author Jason Zweig. “Change your computer passwords to reminders like ‘gleamingkitchen’ and ‘retiretohawaii.’ The more often you type those phrases, the more likely you are to internalize the goals and to feel that the future is now.”

Open a 401(k) (or RRSP) retirement account, if you haven’t already (and your employer offers one). You’ve heard it a million times, but this really is the easiest and smartest way to save long-term. The money comes directly out of your paycheck, you don’t pay taxes on it until you retire, and employers often match part of your contribution. In addition, the contributions will reduce your overall taxable income. Don’t worry about making an investment selection right away. For now, just pick a safe cash equivalent, such as a money-market fund. If you don’t know how to start contributing to a 401(k), call your employer’s benefits department for help.

Start a savings fund for immediate needs, like your next vacation or that kitchen project. Ask your bank to move a specific amount each month (say, $100) from your checking account into a savings account. Or set up the transfer yourself at the bank’s website.

Next Steps:
Invest wisely. Move your retirement money into a target-date fund, which most large 401(k) plans offer. These funds automatically adjust the mix of stocks, bonds, and cash they hold over time to maximize your return and minimize your risk, and they’re perfect for people who want to invest wisely but don’t quite know how. To choose a target date, all you need to figure out is the year you’ll start withdrawing the money. For example, if you are 40 and want to retire when you’re 65, put your retirement savings into a target-date fund with the year 2033.If your 401(k) plan doesn’t offer a target-date fund, go to your plan provider’s website for information on how to pick the best mix for your portfolio. For more help, read Andrew Tobias’s terrific book The Only Investment Guide You’ll Ever Need (Harvest Books, $14, www.amazon.com).

Move your savings into a mutual fund. Once your savings account hits $1,000 or so, transfer the money into an account at one of these three established mutual-fund families (most funds require a minimum investment): Vanguard (877-662-7447), Fidelity (800-343-3548), or T. Rowe Price (800-541-6066). You will earn a higher interest rate and have a variety of funds to choose from. Call the toll-free number and a representative will walk you through the process. The fund company can deduct the money directly from your checking account after your paychecks are deposited.

Your Biggest Money Worries Solved ! #1 I Spend too Much

2008-02-17T08:10:00.000-08:00

The current issue of Real Simple magazine covers the top 6 money worries people face. Here is Worry number one and how to tackle it.

Worry 1: I Spend Too Much
Why is this such a pervasive problem? Credit cards are partly to blame (have plastic, will spend), but it turns out you really were born to shop. Scientists have learned that when you anticipate buying something tantalizing, like a chic cashmere cardigan, your brain releases dopamine, a chemical that helps produce feelings of well-being. “It’s the same stuff that floods your brain when you have sex or eat a big, gooey slice of chocolate cake,” says Jason Zweig, author of Your Money and Your Brain (Simon & Schuster, $26, www.amazon.com). Saving money doesn’t trigger the same rush, at least not for most of us. Overspending can also result from poor planning or sheer lack of time — which may be why the average American family spends almost as much eating out ($225 a month) as eating at home ($285). Whether you overspend for fun or convenience, you can break the habit.

Do Right Now:
Make shopping harder.
First, delete bookmarked shopping sites from your computer. Next, gather the pile of catalogs by your bed, call the toll-free number for each, and ask to be removed from the firm’s mailing list. Or go to www.catalogchoice.org, a free service that helps you unsubscribe from hundreds of catalogs.
Open your wallet and remove all but one credit card.
Put the rest away in a drawer — or cancel them. When you don’t see those department-store cards looking back at you in your wallet, there’s less temptation to spend.
Change some of your everyday habits.
Plot out the most risk-free routes to and from work and on your daily errands. If lattes are your weakness, that means giving a wide berth to expensive coffee shops. If clothes are your passion, steer clear of trendy boutiques.
Cut out convenience foods.
Walk to your refrigerator, open it, and take out some baby carrots. Put a handful into five small plastic bags. Toss some almonds or other nuts in five more plastic bags. Presto — your snacks for the workweek, none of which involve expensive (not to mention often unhealthy) packaged foods. Want to save even more? Start bringing your lunch to work and planning (and shopping) for the entire week on Sunday.

Next Steps:
Try cash.
You’ve heard this before, but it bears repeating: If you don’t put purchases on a credit card, it’s impossible to spend more than you earn. Next Monday embark upon a week in which you use only cash or a debit card. Then try another week and another, until this behavior becomes second nature.
Make sure everything you buy is returnable —
from bags to boots to bookcases — and always keep the tags for at least two weeks. That’s plenty of time for the thrill of the purchase to wear off. You can then assess with a clear eye whether you truly need that snakeskin clutch.
Find new ways to get a dopamine rush.
Sign up for a class you’ve always wanted to take, like salsa dancing or Pilates. And the next time you get the urge to shop, log on to YouTube and watch some silly videos: more entertaining and much cheaper.
Read www.freemoneyfinance.com.
This blog has an active group of readers who post their own suggestions on everything from overlooked tax deductions to saving money on hotel rooms. Another great source on saving: the book Your Money or Your Life, by Joe Dominguez and Vicki Robin (Penguin, $15, www.amazon.com), which shows how living simply can be the path to financial independence.

The Ten Commandments of Good Investing

2008-01-25T08:42:00.000-08:00

Truly great investment advice is easy to understand and you can actually profit from it. Finance "Gurus" often resort to financial jargo which just confuses and backfires but the real financial geniuses talk in simple-not-simplistic terms. What is appealing about the 10 commandments of Good investing is that they don't promise a quick pay-day which lets face it easy come easy go. The Globe and Males Globe Investor Magazine has combined 10 commandments collected from the best financial experts. Click the link and learn from the best.

Regular investing keeps your portfolio growing

2008-01-25T07:41:00.000-08:00

Portfolios grow in two ways: by their rate of return, and by the money you add to them. Put money into your portfolio on a regular basis and you can realize additional benefits that can help you achieve your goals. By investing regularly, you can:

Pay yourself first by investing a set amount every month or week, for example. This is a proven technique for adding discipline to your savings routine and will help you stay on track to reach your goals.
Automatically build your portfolio without getting distracted by what's happening in the markets and other events. When markets are uncertain, you are able to stay the course and stick with your plan.
Invest regularly by taking advantage of dollar cost averaging, a strategy where you purchase more units when prices are low and fewer when prices are high. Over the long-term, this can lower the overall cost of building your portfolio.

Some Tips to Keeping a Good Credit Rating

2008-01-25T07:31:00.000-08:00

Your credit rating or credit score speaks volumes. And what it says is of interest to those who can lend you money, lease you a car, offer you a credit card or provide you with a mortgage. A good credit rating means that you are a good credit risk, making it easier to borrow money and at a preferred rate. So having a good credit rating is an asset you’ll want to protect. Here’s how:

Pay your bills and pay on time.
Payment history accounts for as much as 35% of your score and even being a few days late could cost you points.

Keep credit card balances in check.
Maxed-out credit cards are a red flag. Ideally, your debt-to-credit ratio should be around 30% so on a credit card with a $2,000 limit, you shouldn't carry a balance of more than $600.

Limit yourself to two to four credit cards.
Too many credit cards can set off warning signals but too few won’t provide enough credit history for a proper evaluation.

Don’t apply for credit you don’t need.
It can be tempting to apply for an in-store credit card when it comes with a discount but frequent applications for credit may negatively affect your score.

Stability counts.
Moving frequently and changing employers might erode your credit rating. The longer you are at your current address or with your employer, the better the opportunity to enhance your credit-worthiness.

Check your score.
You should probably review your credit rating from time to time to make sure it’s accurate and be sure to correct any errors. Reports are available online from rating agencies such as Equifax and TransUnion.

How to turbo-charge your educational savings

2008-01-25T07:26:00.000-08:00

Wondering how to make the most of the money you set aside for post-secondary education? The answer is simple: invest in a Registered Education Savings Plan or RESP. An RESP offers two significant advantages over taxable investment accounts that can help significantly enhance the performance of your money.

RESP advantage #1: Canada Education Savings Grant (CESG)
Each year, for each eligible child, you can earn CESG equal to 20% of your annual RESP contribution up to an annual maximum of $500 and lifetime maximum of $7,200. That’s like getting an instant 20% return on your contribution!

RESP advantage #2: Tax-deferred growth
The investment earnings in your RESP grow tax deferred. Assuming a 40% tax rate, not paying tax on investment earnings means that instead of a 6% after-tax return, you could be earning 10% – a substantial difference. And when the plan's earnings are withdrawn to pay for school expenses, it’s taxed to the student, usually at a much lower tax rate.

RESP advantages really add up
Together these advantages can make an incredible difference to how much you save. Assuming, an 8% pre-tax return, $2,500 annual contribution for 18 years and a marginal tax rate of 40%, you would have $117,840 in an RESP compared to $72,346 in a taxable investment account.

Cool Website: Rentometer

2008-01-20T09:15:00.000-08:00

This is a definite time and money saving website. Rentometer is a free service that allows you to type in your address to see if your rent is comparable to others in your area, if your paying too much or if you've got it good. It also shows other rental properties in your neigbourhood on a map and how they fair in terms of pricing.

Retirement Podcasts

2008-01-20T09:05:00.001-08:00

The Bank of Montreal has a new collection of podcasts that offer tons of info on a variety of issues that impact Canadians close to retirement.

Life Planning
Financial Considerations
Caring for yourself and others

7 Tax Resolutions for the New Year

2008-01-20T08:47:00.000-08:00

Maximize your RSP contributions:
Retirement Savings Plans (RSPs) continue to be one of the best savings vehicles available. Besides upfront tax savings, RSPs let your investments grow on a tax-deferred basis. A contribution early in the year helps take advantage of this.
Make RESP contributions:
Contribute early to a Registered Education Savings Plan (RESP) to maximize the tax-deferral benefits and allow you to invest the additional amounts received in the form of a Canada Education Savings Grant (CESG). The federal government increased the maximum annual CESG that can be received from $400 to $500 (and from a maximum of $800 to $1,000 per year if any unused grants are carried forward). In addition, the annual $4,000 RESP contribution limit per beneficiary no longer applies although the $50,000 lifetime contribution limit per beneficiary remains in effect.
Split your pension income:
As you prepare your 2007 tax return, you may elect to allocate up to 50% of your eligible pension income to your lower-income spouse or common-law partner for income tax purposes. You can do this by completing Canada Revenue Agency (CRA) form T1032, Joint Election to Split Pension Income, together with your spouse or common-law partner. Eligible pension income includes annuity payments received from an employer pension plan and, if you are age 65 or older, payments from your Retirement Income Fund (RIF).
Contribute to a spousal RSP:
In light of new rules allowing spouses to split pension income, some may wonder if it still makes sense to contribute to a spousal RSP. In many cases, the answer is still yes. Income from a spousal RSP (or its successor RIF) can be fully taxed in the hands of the lower-income spouse or common-law partner, as opposed to only half of the qualified pension income that can be split with a lower-income partner. In addition, spousal RSPs permit income splitting to take place before age 65.
Reduce taxes at source:
If you regularly contribute to an RSP, make alimony payments, incur significant interest expense, or have child care expenses, you may be able to have less tax withheld at source by your employer by completing CRA form T1213.
Keep your public transit receipts:
In 2007, a federal tax credit for the cost of buying a monthly (or longer duration) pass for buses, streetcars, subways, commuter trains, and local ferries was expanded to include weekly passes and cost-per-trip electronic cards in certain situations. Keep your expired passes and receipts issued by your local transit authority.
Revisit your portfolio and financial plan:
The New Year can be an opportune time to align your portfolio with your tax planning goals. It might be a good opportunity to rebalance your portfolio as well as ensure that you are on track for 2008 and beyond.

Sex in the City meets Business School

2008-01-19T14:13:00.000-08:00

Darren Star's new show Cashmere Mafia premiered a few weeks ago and as a person highly interested in anything that involves women and business, I thought I would watch. So far it has been pretty good It follows four wome who have been friends since business school and who support eachother in work, love, and life. It tackles such issues as how men handle powerful women in the business world, and this always makes for good TV.

Cool Website !

2008-01-19T14:02:00.000-08:00

Visa's ATM Locator website is sure to help in a cinch. You just type in your location and the ATM locator will brink up a map that looks like this will come up showing you where the closest ATM machines are.

Good Advice from the Courage Coach

2008-01-19T13:44:00.000-08:00

Pink Magazine has had a new addition of blogs put on their site for female executives to Pink Experts. I just read a very good post from their courage expert, Sandra Walston, and thought I might share it with my readers in hopes that it might help them find their voices. Ms. Walston states that you can determine the quality of your relationships by analysing your relationships. Do you hold in resentments towards your boss or business partner and then gossip about it behind her back, if so you may want to rethink your style.

"Here's how to converse with courage:

Become a detached "observer" of yourself. When you catch yourself hesitating to share something you want to say, start with this phrase: "I want you to know that it takes courage to share …." This sets the stage for a different kind of listening and helps you be authentic.
Take notice of instances when you regret not speaking up.
Watch for this phrase: "I wanted to say …." Often a woman will swallow her words of wisdom for fear of losing her job/image/esteem/friend (whatever!). But what you meant to say or "should have" said doesn't count if you didn't. "

It takes a conscious choice and effort to speak from your heart and spirit so as not to have any regret. She finishes with this quote from poet Mary Oliver and I feel it's only fitting to leave you with the same one because it just makes sense.

"When it's over, I don't want to wonder
If I have made of my life something particular, and real.
I don't want to find myself sighing and frightened,
Or full of argument.

I don't want to end up simply having visited this world."

Something Fun for the New Year

2008-01-05T06:56:00.000-08:00

PINK's Stock Market Challenge
Only 40 percent of women say they've become more knowledgeable about the stock market in the last five years, so to make investing more accessible and fun, PINK introduces its Million-Dollar Stock Market Challenge. One thousand participants will invest an imaginary $1 million each for 12 weeks for a chance to win big prizes.
Click pinkstockchallenge.com to register.

The All-Canadian Wealth Test

2008-01-05T06:52:00.000-08:00

Click the link and read the article to find out how you measure up financially for the new year.

Holiday Tipping

2007-12-12T07:42:00.000-08:00

Around the Holidays We're all baffled on who to tip and how much. I was just on the Martha Stewart website and found this really neat Holiday Tipometer. Click the link to print out your own and tip easy this holiday season.

2007-12-12T07:10:00.000-08:00

Avoid overspending this holiday season by finding out what your shopping personality is and the fix for what ales you.

Financial Literacy 2007 : Guide to Building Personal Wealth

2007-10-31T08:21:00.000-07:00

Click the link to start building personal wealth

Guide to Financing your Future

2007-10-31T08:17:00.000-07:00

Cool Tool!

2007-10-31T07:38:00.000-07:00

Want business cards without paying a huge fee?

Check out businesscardland.com, a free site that lets you make your own cards online. Just pick the design you want, check off the size, enter the info you want and choose the colors for the text and the background. Print them off yourself or take them to a printing shop for full color cards. Businesscardland.com can be used by both Mac and PC users, as the final business cards will be in PDF format.

Cool Tool!

2007-10-31T07:24:00.000-07:00

Watch your expenses and budget on the go from your cell phone with Dime Tracker. It's a free service. According to Geek Sugar,

" The company tracks your spending habits by recording your purchases directly on your cell. You can then use that data to create a nifty budget that you can store on your phone for easy access. To sign up you give Dime Tracker your wireless carrier and cell phone number and they will send you a text containing your confirmation code. To activate your account you enter your confirmation code on the company's website."

The Adventures of FruGal on Halloween

2007-10-31T07:17:00.000-07:00

I found this great tech tip for halloween on Geek Sugar. If you don't want to spend a lot for a cool halloween mask and you need a last minute fix:

"Forget spending a small fortune on a Halloween mask this year when you can create your own! With a decent color printer, you can custom make the perfect Halloween mask. Thanks to lifehacker, we have learned that Microsoft offers detailed 'how to' mask-making instructions, with the possibilities of what you can make being endless. If you're feeling geek-inspired check out more Star Wars masks like the ones below by clicking here!"

Secrets of Playing it Very Safe with Investing

2007-10-27T11:29:00.000-07:00

Even Super safe investments can be risky if you do not know the rules:

Know your Goals: Decide on your time frame. If you are saving for something in the short-term safer investments are better and if you are saving for retirement which has a longer time horizon it would be beneficial to assume more risk.
Consider Inflation: The more conservative you are the greater the inflation risk you assume.
Do It Yourself: Your money won't grow very much with super safe investments so giving away what little return you are making to a fund manager or other professional doesn't make much sense.
Beware of Gimmicks
Guaranteed Investment Certificates: when looking to get a GIC make sure that interest rates will be going up and shop around for the best rates.
Money Market Mutual Funds: These typically pay more than a short-term GIC. While GICs have a fixed rate, Money Market funds typically earn more as interest rates rise. The shorter the maturity the quicker the return will rise.
Short-term Treasury Issues:(Issued for one year or less) These are guaranteed by the government of Canada. If interest rates climb, treasury bills lose value. The longer the time to maturity, the greater likelihood of the price falling.
Short-term bond funds: You can buy short-term bond funds yourself or put your money in a mutual fund that buys them for you. With this option you get diversification and professional management. The higher the interest rates go the more you'll earn on your fund , generally.

Cool Tool ! New Palm Centro

2007-10-24T08:06:00.000-07:00

I was just on the Geek Sugar blog and found this posting on the New palm Centro. This thing is so cute and affordable. Apparently it will go on sale in mid october for $100 including a 2year phone contract. If anyone is looking for an affordable palm device this could be it.

Financielle of The Moment: Lisa Sugar

2007-10-23T13:13:00.000-07:00

Lisa Sugar is the publisher and editor in chief of 11 of the coolest blogs for women read this article from 7X7 Sanfrancisco.

Retirement Calculators !

2007-10-23T12:55:00.000-07:00

The ultimate Retirement Resource for Canadians

2007-10-23T12:35:00.001-07:00

Clicking on this link will take you to the Canadian Banker's Association Booklet on planning for your retirement. It covers How much you will need, where the money will come from, your retirement financial strategy and estate planning.

The Basic Rules of RRSPs

2007-10-05T14:55:00.000-07:00

The Registered Retirement Plan (RRSP) is one of the best tax shelters available in the world. The government gives you a big tax write-off every time you contribute plus you get to shelter the investment income until the time comes for you to use it. Your RRSP should be your largest source of retirement income. According to Gordon Pape, This will only happen if you do two things:

Contribute the maximum: possible amount to your plan each year.
Manage your RRSP Assets: so as to obtain the highest possible return, consistent with the degree of risk you're prepared to accept.

Must See TV!

2007-09-27T14:59:00.000-07:00

Hi all,

I know I've been away for a while but with classes starting I've been pretty busy. I was just on the Pink Magazine website and found out that they have pink tv where you could what footage related to women and business a few times a month.

Cool Tool: Free Personal Finance Manager

2007-08-30T12:16:00.000-07:00

I found this tool in a magazine and thought I'd mention it. Expensr is a free online money management program that is very helpful and easy to use.

How to Sign Up: fill out a simple online form, it doesn't ask for home address or any other personal info just your name, an alias you would like to use, and a password.

Features:

Dashboard
The dashboard gives you a quick snapshot of how your finances have been faring for the last 30 days.

Widgets
The "Projected Spending Total" is a projection of what your total spending will be one year from today. Compare this figure with your yearly salary to see if you're saving enough money. Will you be able to buy that new car, or move to that better apartment?

Do you ever look at your bank account balance and wonder when you'll finally be worth $10K, or be worth $20K, or be broke? The "Milestone Countdown" lets you know when your net worth will reach a certain value.

Add Transactions Manually or Import Bank Files
Adding transactions into expensr is easy. If you want to record transactions on a day-by-day basis, we've made it straightforward for you to add them with our simple Add Transaction window. If you'd rather just grab your data from the bank, we also allow importing of bank files with our easy and secure uploader.

Auto-Categorize Transactions with Filters
Filters makes expensr even easier. You can specify that Safeway transactions should always be categorized as Groceries and Macy's transactions should always be Clothing. Now if you ever enter or import a transaction that has Safeway in it, it's automatically filed as Groceries for you.

Mix and Mash to your heart's content
You can view your transactions in almost any way you could possibly think. Filter by date range, accounts, and categories. Sort by Date, Name, Category, Account, and Amount. Quickly find what your largest expense this month was, or see what your food expenses were last month.

Category Pie Chart
The pie chart lets you compare the amount you've spent on each category. Check out which categories dominate your expenses so you can see where there's room to improve (this user is spending over half their money on Food, and might be able to save a bit by eating out less frequently). You can look at any number of interesting comparisons, like your spending on Groceries vs. your spending on Restaurants.

Timeline Bar Graph
The bar graph lets you see how your spending has changed over time. You can graph any combination of categories, allowing you to analyze your overall spending patterns or just your spending on Food. This user's trend is perfect - every month their expenses are going down!

Budgets Dashboard
You can set a budget for any of your categories. The dashboard lets you quickly check the status of all your budgets: see how much you've spent, how much money is left (or how much your over), and get a quick bar graph visual of how your budget is faring.

Budget Details Graph
For each budget you can see a detailed graph of that category's spending accumulation. This is very useful in cases where you exceeded your budget, since you can see the exact day that you went over. This user exceeded their Books budget early in the month - knowing this will help them decide how to budget (and spend) next month.

How To: Begin Funding your Financial Security

2007-08-30T12:07:00.001-07:00

Here is a summary from a Yahoo personal finance how to guide. Click on summary to go to the whole article.

Summary:

Outstanding debt is one of the biggest obstacles to saving.
Disability insurance is a major safeguard against financial trouble if you're out of work for an extended period.
Most experts recommend saving at least three months' worth of living expenses in case income stops. An easy and painless way to fund an emergency cash account is through an automatic savings plan.
Money-market funds are a potentially higher-earning alternative to bank savings accounts. But money-market funds can technically lose money (though they have met their financial obligations), and yields will fluctuate, unlike savings accounts. Also, savings accounts are FDIC-insured.
Tax-advantaged retirement plans are a terrific way to help build long-term financial security

Must See TV!

2007-08-11T08:08:00.000-07:00

I don't know about you but every time I pick up a fashion magazine I wonder how they do it and about the business side of the fashion industry. I recently came across the Marie Claire Masthead video podcast. This podcast goes behind the scenes of the magazine and shows how its done. If you follow the link you can wathch all fifteen episodes on your computer.

August 2007: Financial Calendar

2007-08-11T07:32:00.001-07:00

Financial Events:

August 1: Check on college insurance

August 2: Confirm vacation credit card use

August 4: Start back to school shopping

August 12: International Youth Day-Teach your kids to save

August 16: Seasonal Food buys

August 18: Start Christmas shopping

August 22: Reduce Auto insurance expense

August 28: Cut moving expenses

Buying a House: Useful Resources

2007-08-06T06:41:00.000-07:00

Buying a House

2007-08-06T06:25:00.000-07:00

Step 6: The offer to purchase and sale

Congratulations! if you've made it to step 6 you've jeust found your dream house but remember, the legal implications of buying a home are crucial. Before making your offer, make sure that you are fully aware and knowledgeable about the extent of the commitment.

Be aware of the extent of the commitment

The offer to purchase is a very important document that is legally binding on the parties. It is a contract in which one person offers to buy another's property under certain conditions. Never sign an offer to purchase too quickly. The offer to purchase includes all the details required to identify the property and the conditions of the transaction such as:

address and lot number
amount of the deposit
date of possession
distribution of taxes
length of time that the offer is valid (generally between 24 and 48 hours)
what is included or excluded in the sale price (e.g., light fixtures, drapes, carpets, household appliances)
approval of mortgage loan (amount, rate, term)
satisfactory inspection of premises by an expert
sale of your current house
any other condition(s) deemed appropriate

What happens once the offer is made?

The seller can accept or refuse your offer to purchase. If he/she refuses a counter offer will be made which you can either accept or reject. If you refuse the counter offer, you may make another counter offer. Once an offer is accepted by the seller, it consitutes an agreement to sell.

Once an offer to purchase has been accepted, neither party can refuse to carry it out. Otherwise the seller or buyer can be sued for damages and the buyer can lose their deposit.

Upon completing the sale, make sure that your notary or lawyer has all the necessary documents on hand. Review with them the adjustment statement that details the amount that has to be signed over to the seller in order to conclude the sale. Your notary will pay the seller in your name with your funds.

Buying a House

2007-08-06T06:22:00.000-07:00

Step 5: Home insurance

You want home insurance that will adequately protect your home and property and also includes public liability coverage.

Buying a House

2007-08-06T06:15:00.000-07:00

Step 4: Choosing a Mortgage loan