Taxes

Can I Claim Moving Expenses As A Tax Deduction?

It is important for Canadians to educate themselves on any and all possible tax deductions.  As Canadians pay more than 40% of their annual salaries to taxes through income tax and sales tax, it is key for us to save on taxes wherever possible.

Believe it or not, there are times when a Canadian can actually claim their moving expenses and receive a tax deduction.  For instance, if you moved during the year and established a new home to start a new job or business, or if you are a full time student you may qualify for the tax deduction.

Eligible moving expenses include transportation and storage costs for household items, traveling expenses such as meals and accommodations, etc.  You can also claim some expenses related to the selling of your previous home such as advertising costs and legal fees.

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May 8, 2010
Investing

Free Online Personal Finance Videos

For those of you who consider yourself to be visual learners, you will enjoy watching some of the personal finance and investing videos on http://kanjoh.com/.  It is a website that aims to provide “financial clarity above the noise”.

The goal of the website is to help people understand the economy, how to effectively save money, and to understand the various types and aspects of investing.  I am impressed with the videos I have watched on the site so far, as they are straightforward, easy to follow, helpful, and interesting.

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May 6, 2010
Debt

3 Ways To Destroy Debt Fast

Recovering from a snowball of debt can seem nearly impossible, especially for those with only one income or even a part time income. Although there are many options – debt consolidation, financial advising, an experienced debt assistant, etc.; however it is always wise to consider all options.

1) Obtain a Second Income

One of the easiest ways to destroy debt fast is to acquire a second job, either full time or part time. Since you are already living on one income, the entire second income can be put towards your debt. Almost every debt assistant and financial advisor will suggest that you pay off the debts that charge the highest interest first, in an effort to save you from paying solely interest.

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May 4, 2010
Debt

Do You Want To Retire And Still Be In Debt?

According to a poll carried out by Investors Group, 62% of Canadians plan to retire while still being in debt.  In fact, many people polled indicated that they were willing to retire regardless of whether their mortgage was paid off.

As well, the poll results indicated that Canadians seem to be worried about rising interest rates.  There is a big concern right now that Canadians are taking on too much debt at these incredibly low interest rates, and then when interest rates begin to rise, it will cause many Canadian households to be under financial stress due to increased interest payments.

We as Canadians need to become more responsible for the amount of debt we are taking on.  Although it may seem really affordable right now, we have to remind ourselves that we are enjoying historically low interest rates.  They won’t last forever.  In fact, the Bank of Canada may even increase their rates as early as June 1st.

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May 2, 2010
General

Do Men And Women Handle Money Differently?

I’ve been reading a very interesting book about understanding the differences between men and women called Men Are Like Waffles Women Are Like Spaghetti by Bill and Pam Farrel.  Although it doesn’t focus too much on men and women’s differences when handling money, there are a few things the authors mentioned that caught my attention that I thought I would share:

“A man will pay $2 for a $1 item he wants.

A woman will pay $1 for a $2 item she doesn’t want.”

Another illustration the authors provide compares when men and women eat out with their friends:

“When the bill arrives, Mike, Charlie, Bob, and John will each throw in $20, even though it’s only for $22.50.  None of them will have anything smaller, and none will actually admit they want change back.  When the girls get their bill, out come the pocket calculators.”

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April 30, 2010