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Saturday, June 30, 2007

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.

Friday, June 29, 2007

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 !

Tuesday, June 19, 2007

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.

Friday, June 15, 2007

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.

Saturday, June 9, 2007

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

Saturday, June 2, 2007

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:

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

Friday, June 1, 2007

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.