We all want financial security, but, wow, it sure does seem like a long way off to most of us, doesn’t it?

It’s hard to stay focused on such a distant goal, so I like to create mental milestones to reach, which are easier to get to and give some sense of satisfaction along the road to financial security.  It’s just breaking the larger goal up into more manageable chunks.

Here are the stages to ensure your financial security: Read More…

For our first financial makeover, we have a young family in the Greater Toronto Area (GTA) who has a decent income but are struggling with debt, including monthly payments.   They have requested some advice on how to best to improve their financial situation.

The Client(s)

Steve and Sue are both 32 years old and have a 2 year old son.   Steve is a technician earning $55,000 per year and feels that he has a fairly secure job.  Sue earns $45,000 as an office administrator and is concerned about her job, ‘it could be gone any day’, she says.

The Problem

This couple feels that they have a comfortable lifestyle; however, they have realized that they have made some bad decisions in the past few years, including opting to go deep into debt to upgrade their home and staying off work for the entire year to be with the new baby.

They now have monthly payment obligations far in excess of their net income and are consequently getting further in the hole.  They’ve already cashed in all of their RRSP’s to fill the hole, so they have no further  financial cushioning left.  Fortunately, they have in-laws who watch their child for no charge.

Financial Snapshot

Here is a financial snapshot of the family’s finances.

Monthly income

Net income $5,300

Monthly expenses

• Mortgage $1,700
• Property taxes $250
• Utilities $250
• Phones, Cable, Internet  $300
• Food $500 Read More…

  

Travelling can be too expensive, and it can sometimes go beyond one’s budget. A common choice people are left with is to take loans in order to obtain the money. However, traveling on loans has an important side effect of incurring debts. Piling up debts can force you to enroll in a debt settlement program.

There is good news, however! You can avoid the ‘traveling with debt’ hassle just by following a few simple tips: Read More…

When people look for savings in their monthly budget, I find that they are hesitant to look at their grocery bills. Food is near-sacred, and thinking of cutting such expenses invokes visions of living on Kraft Dinner (KD), sacrificing health, and quality of life.

As with all of my other ideas on cost cutting, I always focus on living better, just for less. This is not the oxymoron it appears to be: you just need to find ways to buy the same things you normally would but for less. You also need to know how grocery stores work to get the money out of you. I am here to help you maximize your grocery savings.

Listed below are ideas I use to maximize my savings on grocery. Read More…

What Is Leverage?

When you learn about leverage in school, it usually entails using a lever of some sort to move something heavier that you could not normally move without it. In personal finance terms, the concept is essentially the same: you use debt (other people’s money) as a lever to help do something you couldn’t do without it.

Simply put, it will amplify a gain or loss from an investment you make in something.

A Tried and True Example

The most common form of this in personal finance is Read More…

When it’s time to move on and part ways with your current vehicle, people often choose to just trade it in at the dealer and be done with it.  It’s easy, convenient, and no hassles.  It’s also a surefire way to get the lowest possible sale price for your vehicle!

It is definitely worth considering selling your vehicle privately instead.  You’ll generally get far more for it, especially if you take the time to do it properly.

I have bought and sold dozens of vehicles privately over my driving lifetime and, in doing so, have worked out the best ways to go about it.  In this article, I’m going to share with you how to get the best price for your vehicle and also how to get it sold quickly. Read More…

With all the talk these days of impending high inflation, I find my thoughts turning to ways that I can reduce or avoid the impact of this, if it does indeed happen.  In many cases, it just isn’t possible to avoid the effects of inflation, but where there are ways to do so, I can show you how to go about it.

Let’s look at some common expenses most Canadians have and see what can be done to protect yourself. Read More…