Holiday Tipping

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.

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

Click the link to start building personal wealth

Guide to Financing your Future

Cool Tool!

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!

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

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

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

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

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 !

• How will retirement affect my expenses?
• Am I saving enough? What can I change?
• How advantageous is incresing my Savings?
• What if I underestimate my expenses?
• What Will my income be after I retire?
• What will my expenses be after I retire?
• How much of an effect will inflation have?

The ultimate Retirement Resource for Canadians

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

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:

1. Contribute the maximum: possible amount to your plan each year.
2. 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!

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

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

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!

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

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

• Home Buyers Guide
• Home buying step by step
• Condominium Buyer's Guide
• About Your House : Understanding Your New Home Sales Contract
• About Your House : Selecting a New Home Builder
• About Your House : Hiring a Home Inspector
• Bringing Home Ownership Within Reach
• About Your House : Hiring a Contractor
• About Your House : Sample Renovation Contract
• About Your House : Assessing The Renovation Project

Buying a House

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

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

Step 4: Choosing a Mortgage loan

• Mortgage Loans
• Mortgage Wise
• First Time Home Buying Podcast from A-Z
• Mortgage Center
  

Buying a House

Hi all, I know you've been waiting patiently for this third installment of buying a house - Your allies, so here it is.

It will become evident in your property search that you can't see or do everything yourself or with the help of friends or family.

Get the Support of a team of professionals

• Your financial advisor:In addition to helping you choose the mortgage that best suits your borrowing needs, this professional will act in your best interest throughout the property acquisition process.
• Building inspector: Before buying a house, make sure it passes an inspection. An engineer, building technician, architect or chartered appraiser can do the inspection and provide you with a written report. The inspector will (should) check the state of the foundations, roof, structural elements, windows, insulation and plumbing, as well as the electrical, heating and ventilation systems. A professional inspection provides you with an expert opinion on whether the asking price is reasonable regarding the quality and value of the propert, an evaluation of the cost of any repairs required and detection of hidden defects.
• Surveyor: A surveyour prepares the certificate of location, a document required by most mortgage lenders and that contains; a description of the lot and building, any illegality or irregularity, servitudes and easments, specific bylaws or regulations that may restrict a property owner's rights.
• Notary: The Notary ensures that the transaction is carried out in compliance with all the proper rules. The notary draws up the mortgage deed which specifies the mortgage conditions along with the rights and responsibilities of the borrower and financial institution. In addition, the notary draws up the deed of conveyance which is the document by which the seller transfers the propert title to the buyer.
• Real Estate Agent, and Contractor

Good Deal: Great food on a Budget

Dave lieberman shows people how to cook great food on a budget. You don't have to break the bank for fine dining.

Bank Rates' Debt Management Guide

Lucky 13 Emergency Saving Strategies

1. Autopilot saving and bill payment
2. After paying off debt, Keep paying yourself
3. Enforce 24 hour rule on impulse buys
4. Leave the Credit Cards at home
5. Plan ahead, budget for fun
6. Make things 'interest'ing
7. Learn to save short-term splurges
8. Reward yourself
9. Remove the temptation
10. Treat it like a friend
11. Keep them seperated
12. Enjoy compounding for a change
13. Treat it like Taxes

Money Makeover

The Unnoppets( Nop and Sonya and baby Fin) have retirement accounts of $76,000, an emergency fund of $30,000 and $150,000 in real estate equity. The unnoppets currently have a combined income of $90,000. While they have great saving skills, there spending is haphazard, they don't keep a budget. They have $175,000 in medical school loans, carry two mortgages and owe $175,000 on a 7 yr. ARM. Right now Nop is only making $38,000 but when he opens his practice in 2009 he should be making $200,000/year. The couple is worried about how they will handle this increase in income. The couple will need to develop financial discipline now to be prepared for this increase in income. Generally, the more someone makes the more they tend to spend. The couple needs to cultivate good spending habits and save even more once they have a higher income. CNN Money magazine reccommended they take the following action:

• Adopt an investment strategy - right now Sonya compares their investments to picking a horse at the Kuntucky derby ( I think a safer course is required)
• Buy more life insurance - when Nop becomes the primary breadwinner he will need to increase his life insurance to ensure that his family will be taken care of should anything happen to him
• Keep spending smart

Home Equity Toolkit

• Can you borrow from your home equity?
• Home Equity Loan vs. Line of Credit
• Calculate your payment
• Would you save by refinancing your Mortgage
• How much equity do you have in your home?
• Compare home equity loans
• Questions to ask lenders before re-financing
• Questions to ask home equity lenders

Who Wants to be a Millionaire?

In this month's issue of Pink Magazine Della de Lafuente looked at Four successful female millionaires. Here are the few simple steps she outlined as helping you get on the right path.

1. Map out a plan:Prepare a realistic budget and decide whether you will invest in a business venture, real estate, the stock market or other income generating investments.
2. Keep your credit in check:A good credit score and strong bill payment record means you'll be able to get more money to make more money.
3. Save, save, save: Start with a little, say 3% and work your way up to 10%.
4. Erase Debt:Avoid making purchases on credit unless you have enough money to pay the purchases off within a month.
5. Become a money expert:Research a company's stock and the real estate market before you make an investment decision.

Cool Tools: Credit Card Toolkit

• Compare Credit Cards
• Checklist for Transferring Credit Card Balances
• Do-it Yourself Credit Repair Checklist
• How to Request a lower Interest Rate
• No More Late Fees Worksheet
• Credit Card Data Worksheet
• How to dispute a purchase made on credit
• Credit Card Inventory
• Credit Card Protector
• Form letter for fixing Credit Report Mistakes
• Checklist to fixe Credit Report Errors

Cool Tools: Budgeting Toolkit

Use these worksheets, calculators, and money saving tips to guide your financial planning.

• Create your Family Budget
• Emergency Fund Worksheet
• Dealing with Debt Worksheet
• Monthly Financial Calander Worksheet
• Daily Expense Tracker Worksheet
• 10 Reasons to Budget Worksheet
• Net-Worth Worksheet

Technology: E-mail Etiquette

Good e-mail etiquette improves your productivity and facilitates good communication with co-workers; however, because of a lack of visibility, you can't look at eye contact and body language. Here is a list of the 10 most common e-mail mistakes and how to fix them.

1. Unclear Subject line: Give your e-mail a clear concis and neutral title free from any negative words.
2. Poor (or absent) Greeting: Don't just go into the body of your e-mail. Even if your message is about a problem it is always necessary to start your e-mail with a friendly greeting.
3. Using Uncommon Abbreviations: Take the extra time to spell out everything. You don't want to take the risk of using abbreviations that your audience doesn't know. This may make them frustrated and less likely to respond.
4. Unnecessary CC-ing: It's not necessary to courtesy copy many people, just CC those directly involved and only if absolutely necessary.
5. Using all Capital Letters: Some people may use caps to emphasize a point but don't because this shows anger and it seems like you are yelling at someone.
6. Sloppy Grammar, spelling, and punctuation: A quick e-mail is no excuse for not double checking your writing, use spell check and make sure everything is right otherwise it looks careless and unprofessional.
7. No Closing or Sign Off: It's important to end your message on a positive note so remember to include a friendly closing.
8. Difficult to Read: This is closely related to proper grammer. If there are run on sentences or missing paragraphs, you won't be able to get your message across to the reader.
9. Unfreindly Tone: It is important to keep your tone in check as making accusations can put the reader on the defensive.
10. Lack of a clear request: Don't try to minimize what the e-mail is about. If you want something done, make a clear and polite request.

She Earns More

In a must read article from PINK magazine online by Betsy Schiffman "She Earns More", the relationship between men, women and money is explored. According to the U.S Bureau of Labour Statistics, about 1/3 of working women outearn their husbands. So what's the issue? because of this performance on behalf of women, men feel that their importance in the relationship is taken away. To find out more read the article and let me know what you think.

Financielle of the Moment: Maria Bartiromo

Maria Bartiromo is the anchor of CNBC's "Closing Bell with Maria Bartiromo" and is host and managing editor of "Wall Street Journal Report with Maria Bartiromo", America's #1 financial news program. Bartiromo is also the author of "Money Makers", a monthly column for Redear's Digest and "Ideas-Face time with Maria Bartiromo" in Business Week.

5 Must Do's for Safe and Wise Banking

1. Know the difference: ATM vs. debit Cards
2. Watch out for 'Float'
3. Is your bank Safe?
4. Know your checking account habits
5. Consider a free checking account

Are You Spending too Much: Take the 7 day Money Challenge

Many people don't realize just how much money they are really spending. I recommend that you take Bankrates 7 day Challenge:

• Learn your weaknesses
• Go on the money diet

and for motivation read the accompanying article "Savers Toot their Own Horn".

Cool Tool !

Follow this link to get a printable Personal Financial Planner that includes worksheets on:


A. Personal Data and Goals
Sheet 1 Personal information sheet
Sheet 2 Financial institutions and advisors
Sheet 3 Goal setting sheet
Sheet 4 Monitoring current economic conditions
Sheet 5 Time value of money calculations

B. Money Management & Budgeting
Sheet 6 Financial documents and records
Sheet 7 Personal balance sheet
Sheet 8 Personal cash flow statement
Sheet 9 Cash budget
Sheet 10 Annual budget summary
Sheet 11 University education cost analysis/savings plan

C. Tax Planning
Sheet 12 Current income tax estimate
Sheet 13 Tax planning activities
Sheet 14 Income tax preparer comparison

D. Banking Services
Sheet 15 Planning the use of financial services
Sheet 16 Using savings to achieve financial goals
Sheet 17 Savings plan comparison
Sheet 18 Chequing account comparison
Sheet 19 Chequing account cost analysis
Sheet 20 Chequing account reconciliation

E. Consumer Credit
Sheet 21 Current and future transportation needs
Sheet 22 Used car purchase comparison
Sheet 23 Buying vs. leasing an automobile
Sheet 24 Automobile ownership and operation costs
Sheet 25 Consumer credit usage patterns (debt inventory)
Sheet 26 Credit card/charge accounts comparison
Sheet 27 Consumer loan comparison

F. Housing
Sheet 28 Current and future housing needs
Sheet 29 Renting vs. buying of housing
Sheet 30 Apartment rental comparison
Sheet 31 Housing affordability and mortgage qualification
Sheet 32 Mortgage company comparison
Sheet 33 Mortgage refinance analysis

G. Insurance
Sheet 34 Current insurance policies and needs
Sheet 35 Home inventory
Sheet 36 Determining needed property insurance
Sheet 37 Apartment/home insurance comparison
Sheet 38 Automobile insurance costs comparison
Sheet 39 Determining life insurance needs
Sheet 40 Life insurance policy comparison
Sheet 41 Disability income insurance needs

H. Investments
Sheet 42 Setting investment objectives
Sheet 43 Assessing risk for investment
Sheet 44 Evaluating investment information
Sheet 45 Using stocks to achieve financial goals
Sheet 46 Using bonds to achieve financial goals
Sheet 47 Using mutual funds and other investments
Sheet 48 Investment broker comparison

I. Retirement and Estate Planning
Sheet 49 Retirement housing & lifestyle planning
Sheet 50 Retirement plan Comparison
Sheet 51 Forecasting retirement income
Sheet 52 Estate planning activities
Sheet 53 Will planning sheet
Sheet 54 Trust comparison sheet

J. Financial Plan Summary
Sheet 55 Financial data summary
Sheet 56 Savings/investment portfolio summary
Sheet 57 Progress check on major financial goals and activities
Sheet 58 Planning summary for money management, budgeting and tax planning
Sheet 59 Planning summary for banking services & consumer credit
Sheet 60 Planning summary for housing activities
Sheet 61 Planning summary for insurance
Sheet 62 Planning summary for investments
Sheet 63 Planning summary for retirement and estate planning

Love & Money

Summer is the season of weddings. With money being one of the biggest causes of divorce, it is important for couples to discuss finances before marriage.

Ten Questions to Ask Before Saying I Do

1. Where would you like to be in five or ten years?
2. What are our assets and liabilites?
3. Should we keep our finances seperate or combine them?
4. What about our investments?
5. How will we handle daily spending decisions?
6. Who will be responsible for paying the bills and preparing the taxes?
7. What is your tolerance for financial risk?
8. What are our insurance options?
9. How does your credit report look?
10. How will we tackle existing debt?

Starting Out: Build Your Financial Foundation

Another Article from Kiplinger, "Build your Financial Foundation" puts emphasis on how important it is to have an emergency fund. Here are the steps for finding the money and storing it:

Three Financial Strategies

• Pay yourself first
• Plug spending leaks
• Save "extra" money

Where to stash your Cash: some place

• Accessible
• Safe
• Profitable

Starting Out: 20 small ways to save big

I was searching the archives of Kiplingers starting out columns and found the article "20 small ways to save big". I have posted info on saving before but this is an issue, like many financial issues, that needs to be repeated constantly to reinforce the habit. Start saving now, if you think you don't have enough money this article will show you easy ways to cut costs. There are a few items on this list that I think are really good. First of all PAY OFF YOUR CREDIT CARD !!!! Brown bag it, this sounds silly but think about how much money you spend on take out for lunch. If you bring a lunch from home it will save you money and probably be healthier. Make Media Free, take out that library card because it can be used to take out not only books but CDs and movies. Keep track of your money, learn to cook, and ditch the gym (take a look at workout tips from the fitsugar widget below !). This article is quite useful and offers links that may help.

people - planet - profits

3 top comapamies & women in sustainability:

• Dupont - Linda Fisher, VP and chief sustainability officer
• Alcoa - Anita Roper, Director of sustainability
• General Electric - Lorraine Bolsinger, VP of ecomagination

The Sustainability Pathway: "Susan Burns, managing director, Global Footprint Network"

1. Determine what problems your business soleves for its customers
2. identify the negative environmental or social impacts of your business (global warming, deforestation, social stress etc.
3. Ask how you can use your company's expertise to solve some of these problems
4. Engineer a new product or service to support these solutions
5. Track how your company benefits from these efforts.

Shopping for a Cause

In honour of the live Earth concerts taking place all over the world today; take a look at Root's new campaign and merchandise. All t-shirts are $29.95 and all bracelets are $5.00:

visit

P:icture yourself in Retirement

Patricia Lovett-Reid provides these scenarios to help you more easily picture yourself in retirement:

Pre-Retirement Planning Strategy:

• Make sure you begin with a positive attitude and an open mind
• Set realistic goals and be specific about what you want to accomplish. Do you want the same lifestyle that you have now or do you want to upgrade or downsize?
• Picture your retirement. Begin to dream about what you and your spouse want to do in retirement. If you haven't discussed your retirement plans with your partner now would be the time.
• Calculate your retirement number and focus on the contribution number that will help you achieve your retirement dream.
• Establish and develop a financial/lifestyle plan that will help you reach your ideal contribution number
• Adjust your budget and make your savings plan match your established financial plan
• Commit to a start date. How about RIGHT NOW!
• Relax, there are a lot of ways to invest and save
• Decide on your comfort level. What is your investment comfort level, do you want to control the investments yourself or have an advisor?
• Arm yourself. Learn about your investment options and then choose the investment, savings, and protection tools that will best help you achieve your goals. After all, Knowledge is power.
• Imagine your performance
• Remove any Distractions

At-Retirement Strategy:

• Pre-plan and cover all contingencies
• Look at tax strategies. Convert RRSP to annuities or RRIFS
• Look at portfolio composition and consider the two most important things, diversification and asset allocation
• Look at creative options for your retirement such as part-time work
• Structure your days to make the adjustment easier
• Consider whether you want to live close to family or friends or move to your dream location
• Consider gift planning and its tax implications

In-Retirement Strategy:

• Simplify your life by making a monthly budget that matches your lifestyle plan
• Integrate income from different sources such as CPP, OAS, and RRIFS
• Look into tax strategies
• Consider whether you still want to work.

Home Buying/Renovating

I've started posting information relating to home buying . I thought it would help and give a fun twist to provide some blogs of people who are renovating and decorating homes:

1. Renovator's Diary: The chronicles of a whole house makeover
2. Scrappy Girl Decorates: Furnishing an apartment from scratch
3. Making it Lovely

My New Favourite Blog

I just started reading this particular blog and its accompanying blog:

The first Blog chronicles how Alex Beauchamp left a successful corporate job to pursue her creative dream career and all that entails (2001-2005). The Second or current blog focuses on her current ventures and what it takes to be a creative entrepreneur. I highly recommed this blog.

Financielle of the Moment: Maureen Kelly

Maureen Kelly, 34

Tarte Cosmetics

New York City

Projected 2006 Sales: $15 million

Description: Cosmetics company that makes portable, user-friendly products for women on the go.

Follow the logo to see how this young millionaire went from pursuing a Ph.D In psychology to becoming an entreprenuer.

The PATH

Hi all, sorry I haven't blogged in a bit. I've been really busy and reading my latest financial book by Patricia Lovett-Reid "Live Well, Retire Well: Strategies for a Rick Life and a Richer Retirement". I managed to read the whole book in a week which is great because normally finanical books can feel tedious to read. This book was great and actually had info that is useful. The book is built around the four letter word PATH:

1. Picture yourself in Retirement
2. Arm yourself with the right financial & planning tools
3. Transition into retirement with style
4. Harmony: Put it all together and leave a legacy

I will be covering these four steps with help from Patty in my Blog so stay tuned.

Take the Poll

Take the poll and let me know what you think of this new ruling !

Tomorrow's Tax Free Day !

Tomorrow (June 20th) is Tax Freedom Day, according to the Fraser Institute. This means that families stop working to pay taxes at the three levels of Government and instead are now working for themselves. Tax Liberation day varies by province in Alberta it's June 1st and in Newfoundland and Labrador it's July 1st.

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

How can I Save More?


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

What's the Smart Way to Invest?

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

How can I Cut my Taxes?

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

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

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

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

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

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

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

How can I Make Borrowing Work for Me?

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

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

Where do I find a Good Financial Adviser?

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

Do I need a Will?

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

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

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

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

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

Buy A House

Step 2: Choosing your Home

Now that we've looked at making a budget for buying a home it's time to move into the next phase, choosing your dream home.

Before you set off on finding and buying a dream home that fits your budget, make certain that you establish a specific set of criteria and organize your priorities. Click here for printable worksheets that you can bring house hunting to compare homes.

You have to decide what you are willing to sacrifice and what you absolutely will not budge on.

Location

Location is one aspect of home buying that you must focuse a great deal of attention on. The city offers a large range of housing styles, developed transportation systems, and a vast choise of amenities and activities, while the suburbs can offere greater land and more affordable properties.

Here are six questions outlined by Desjardins to help you find your ideal location:

1. How much time can you devote to getting to work? What means of transportation will you uset to get to work?
2. What local services (daycare,schools, hospitals, banks, parks) are available?
3. What is the value of neighbouring homes? Have they gone up or down?
4. Is the neighbourhood safe and quiet?

Type of Home

There are many different kinds of homes, take the time to find which style best suits your needs and wants. There are:

• Single family homes (one-storey or two storey home)
• semi-detached homes
• duplexes
• townhouses
• condominiums
• undivided co-ownerships

Again, here are five questions Desjardins provided to help you select the right type of home for you:

1. Do you need a lot of privacy? Do you mind sharing space with neighbours or renters?
2. How much time will you have to devote to home maintenance and up-keep?
3. Do you need large rooms?
4. Do you want a big back yard?

New or Existing home

let's look at the advantages of both

New Home:

• you can upgrade or select features like siding, flooring, plumbing, and electric
• they are built to current code and meet building, electrical and energy efficiency requirements
• they should have builder's guarantee

Existing Homes:

• mature and developed neighbourhood
• landscaped yard (hopefully!)
• may include some additions like a pool or basement

Hope this helps you find your dream home. Stay tuned for Step 3 Your allies in home buying.

This list shows the best places to live and retire in Canada. I thought it was very well done because it organizes it based on economic status, real estate, amenities, weather, and attractions. Check the survey out to find where your hometown falls and why.

Cheap Frill !

Olive oil is a staple in cooking but according to the Time and Money Saving Beauty tips blog it is great for beauty to.

1. A mixture of 1/2 cup olive oil, 1/4 cup vinegar, & 1/4 cup water used as a night cream will make your skin glow. The olive oil softens and moisturized and the vinega lightens discolorations, kills bacteria and loosens dead skin cells. Splash water on your face before applying.
2. Olive oil can be used as a cleansing cream if your skin is dry.
3. For a facial, wet face thoroughly, then massage olive oil into your skin. LUse about a half teasponn of sugar and scrub your face with that, then wipe off gently witha warm, wet cloth until the sugar is all gone.
4. Use olive oil on your feet with clean white cotton socks. Helps to soften up your feet and it absorbs better than baby oil.
5. It seems when you pour olive oil out there is always a drip, so wipe it up with your hand and rub it in to your elbows. Wonderful softening properties.
6. Use olive oils as bath oil. Two to three tablespoons will do the trick.
7. Use olive oil for your hair. Not only does it condition, it also gets rid of the frizz. Put a small drop into your palm & then rub both hands together & apply it to dry hair.

1. Money is a tool, not a solution: use money to live the life you want, don't live just to make money.
2. How you spend it is more important than how you invest it: The only way-we repeat-the only way to amass money is to live on less than you generate. You should live within your means and a little below.
3. Love your job-or leave it
4. Put first things first: Take care of your health and your money will follow.
5. Know your Spouse: Sit down and discuss money matters with your spouse before minor irritations become major problems. If you're not already married, take money attitudes into account when choosing your partner.
6. Invest in your Kids:If you have school aged children and you're not already contributing to RESPs for them, it's time to reconsider. These are easy to set up at a chartered bank and the federal government kicks in free money .
7. Give Now
8. Talk it Over: Communication is key with all members of your family especially for estate planning.
9. Consider all in-costs: Most people don't consider the real cost of what they buy. They focus on the price tag and not on what they have to earn to afford the item .
10. Set Goals: Building wealth takes time and as such you need to set milestones to monitor progress.
11. Emphasize rewards: Think of a budget as pre-spending and emphasize the objects or experiences that you want to spend money on. According to financial author, Bruce Cohen, " A good budget doesn't tell you that you cannot have what you want," he says. "A good budget says, 'Yes, you can have what you really want'" whether that be a new car or early retirement.
12. Use debt intelligently: if you are going to borrow for an investment such as an RRSP don't unless you can pay the money back in one year or sooner.
13. Take the Long view: Time and compounding are considered the eigth wonder of the world by some financial planners.
14. Diversify, diversify,diversify: This is the most important rule of investing, you don't want to put all of your eggs in one basket. By puting money in stocks, bonds, domestic, and international investments you reduce your risk. While one investment might be down another will be up evening the playing field.
15. Plan your portfolio, then stick to your plan: investors should develop a strategy for allocating their money among different types of assets. A common mix. for instance 10% cash, 50% fixed income (Bonds) and 40% stocks. Remember to always monitor your portfolio and make it match your original plan. Also the plan should fit your life cycle.
16. Be Cheap: don't spend unnecessary fees.
17. Forget last year
18. Ignore your portfolio - selectively:avoid looking at your portfolio too frequently as it may make you overly emotional an d cause you to make unwise decisions.
19. Keep it Simple:Keep your investment program simple.
20. Look for the right fit: You must as a potential financial advisor a list of questions to ensure that the fit is appropriate for you. Don't just pick any advisor.
21. Understand how your advisor is paid: commision or fee based?
22. Consider Risk: it is suggested that if an advisor says an investment will have little or no risk you should get this in writing.
23. Ask Questions
24. Beware of 10% solutions: Many financial advisors seem to think that history guarantees a 10% annual return from stocks, not so.
25. Write it Down

Buy a House

Dreaming of owning your own home is a common dream, that takes a lot of work and prepartion. I hope with the steps I will outline and the resources provided that this will help bring you one step closer to realizing your dream.

Step 1: Your budget

Setting up a budget is the most important first step because it allows you to set limits and to look at all of the financial aspects related to buying a property.

"Figuring out how much money you can afford to spend each month is only part of the equation. You may want to make a downpayment - the money you put toward the price of a home. A downpayment generally ranges from 5% to 25% of the purchase price. Some institutions provide no-downpayment mortgages. If you have a good credit history, but haven't been able to save the downpayment, this option may be for you. Keep in mind that the higher your downpayment, the lower the interest costs over the life of the mortgage." Canadian Banker's Association

Downpayment Sources

• liquid assets taken from your savings account
• deposit certificates, savings bonds
• mutual funds or RRSPs
• money you receive as a gift, under certain conditions
• the value of the land on which you build your home, if you are the owner

How Much to Invest

The standard minimum downpayment is usually 20% of

• the cost or,
• the market value of the property

You can borrow money even if you don't have the minimum downpayment. To do this, you must insure your mortgage with the Canadian Mortgage and Housing Corporation (CMHC) or Genworth Financial Canada (GFC).

Your downpayment can be as low as 0% or 10% of the property value. With a downpayment of 10% you may be eligible for a reduced premium with Genworth Financial Canada, under certain conditions. This exclusive premium is only available for Quebec Residents.

The insurance premium varies according to the downpayment and must either be paid at the time of service or added to the mortgage amount. It varies between 0.5% and 3.10% of the amount of the mortgage , depending on the size of the downpayment.

In addition to the downpayment there are other start up costs. Follow the provincial links to see a sheet of start up costs for Ontario and Quebec.

Do the Math

In order to not overcommit yourself financially you must first do the math, these easy to use calculators will help:

• How much can I afford to spend on a home?
• What will my mortgage payments be?
• Mortgage Calculator

The Two Golden Rules of Borrowing

• No more than 32% of your gross household income should be spent on housing costs
• No more than 40% of your gross household income should go to repaying debt

Stay tuned to see step 2: choosing your home

Cheap Frill !

Home Skin Remedies

Dry Skin:

Mix 1 egg white, 1 tsp. of honey, and 1 tsp. of full-fat cream, Pat on the skin and leave for 20 minutes. Rinse with lukewarm water for soft, supple, and radiant skin.

Redness and Irritation:

Mix 2 tblsp. of milkpowder with rosewater, pat on and leave till dry. Rinse with lukewarm water to refresh and tone skin.

Hair is smooth but sometimes oily:

Mix 1 egg with 2 tblsp. of fresh orange juice, wisk together and massage into scalp. Use as a final rinse after shampoo.

Facial Scrub for everyone:

Mix 1 tblsp. of chopped fresh pineapple with tsp. of ground almonds, rub on face using gentle circular movements and rinse with lukewarm water.

Contribute Early, Contribute your Maximum !

Contributor Number 1 - Annual Contribution $1,500/year-from age 25 to 55 - Total Investment $45,000 - Value ate age 55 $141,691

Contributor Number 2 - Annual Contribution $3,000/year-from age 40 to 55 - Total Investment $45,000 - Value at age 55 $75,387

RRSPs are on your side, they allow your savings to grow tax-free. The longer your money stays in a tax shelter, the better. Though it's not always easy for young graduates or young families to start contributing to their RRSPs because it's so far off, the earlier you start the better.

Contribute your Maximum: For any given tax year the law allows you to contribute an amount equal to 18% of your income from the previous year. If you haven't contributed your maximum in previous years you may have unused contribution room, which you can now use. You can event borrow money to compensate for this excess contribution room.

Contribute by Regular Installments: If you want to contribute a significant amount without bursting your budget and getting crushed in the February rush then just contribute throughout the year. You can create a regular installment plan and have the money withdrawn directly from your account.

watch how your contributions can grow:

Weekly $10 contribution

fter 10 years - Capital Invested $5,200 -Value of RRSP $7,239
After 20 years - Capital Invested $10,400 - Value of RRSP $20,797
After 30 years - Capital Invested $15,600 - Value of RRSP $46,193

Weekly $50 contribution

Time span Capital invested Value of RRSP

after 10 years - Capital Invested $26,000 - Value of RRSP $36,193
after 20 years - Capital Invested $52,000 - Value of RRSP $103,985
after 30 years - Capital Invested $78,000 - Value of RRSP $230,966

Now no one can say they don't have $10 a week that they could put away to secure their financial future. Even if you don't you can start with $5 any step is one in the right direction.

Help I'm Up to my Ears in Debt !

You have too much debt if:

• You always have problems paying off your credit card
• You are late paying off loans
• You regularly use your line of credit to "finance" basic expenses

You have already taken the first step, recognizing that you have too much debt.

When in doubt, make a budget ( the steps are outlined in Aprils posts) to determing how serious or minor your situation is. For minor problems, your bank advisor can help. For slightly more serious problems, the advisor may recommend stronger measures such as rescheduling payments or consolidating debt.

• Rescheduling Payments: rescheduling payments allows you to put off a payment until the end of a loan. However, with this comes the penalty of accrued interest and the principal taking longer to pay as it drops.
• Consolidating debts:Consolidating debts involves a financial institution combining some or all of your loans into one. This allows you to make one payment instead of several. Financial institutions that do assume the risk of consolidating debt are justified in giving a higher interest rate. Moreover, the advisor must be convinced that the debt-cycle is done.

If the problem is extremely serious, you must be completely honest with your advisor, it's in your and their best interest to be honest so that they can help you. Corrective measures may be suggested.

• Corrective Measures: If your institution agrees to help you, it may demand radical action such as cutting up credit cards and cancelling all lines of credit, The institution may ask a financially secure relative or friend to co-sign for you.

The last resort should be bankruptcy but this is not recommended as it will severly lower your credit rating and make it difficult for banks to loan money for 5 to 7 years.

11 Ways Women Can Find Greater Wealth

1. Don't Jeopardize your Future to Please Others Now: according to Suze Orman, jeapordizing financial security to help friends and family isn't only done by middle-income moms looking for ways to finance a wedding. There are many women who have admitted getting into financial trouble because of spending on others. Women must push aside the idea that to satisfy others they have to suffer. Taking care of yourself financially now will ensure your ability to take care of yourself and the people you love in the long run.
2. Don't Worry About What People Think: Orman says women face social pressure to take care of others not only at home but also in the corporate world. We are motivated by fear, fear of what others will think if we can't afford certain things.
3. Figure Out Your Life And Your Career Will Follow: Don't focus on the paycheque, Figure out what you love to do and pursue that, because It follows that when you do what you love, you will work more and the money will eventually come.
4. Don't Take The Easy Way Out: You may want to avoid confrontation but this will only leave you with more responsibility and pressure that you don't need.
5. Wish Others Well - Including The Competition: Don't be soo quick to think that just because another woman is successful it means there is less room for you. Why can't more than one person be successful at what they do. Take a different approach and welcome other women's success and wish them well.
6. Let The Dogs Yap: Ormans Advice, "Ladies, walk yourselves through all the opposition, all the negativity. Ladies, walk yourselved through all the competition and all those who say it can't be done. Take your power and keep on Walking.
7. Put money in your home and make a plan to pay off your mortgage as soon as possible
8. Take advantage of your 401(K) or RRSP
9. Come up with a little something on the side, if you've done everything you can set up a side account and invest in stocks, mutual funds, or bonds
10. Keep credit cards in check
11. Watch your spending