Taxes

What Will You Do With Your Tax Refund?

It’s tax refund season again and it’s always nice to get some extra money back from the government.  We got a refund this year because we both contributed to an RRSP.  If we had not contributed to an RRSP, we would likely have had to pay taxes this year as our employers only take off the bare minimum required from our paychecks to cover taxes.

Getting a tax refund due to overpaying on taxes throughout the year is a bad thing.  It means the government has owed you money all year long and rather than it being in your bank account, the government has benefited from it.  One way to ensure that this doesn’t happen to you is to make sure your employer only takes off the minimum required taxes.  Some people opt for the maximum taxes to be taken off in order to ensure a tax refund at the end of the year.  I wouldn’t recommend this option unless you know that you are a horrible saver and this is the only way you can save.

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April 28, 2010
General

Pennysaverblog 100 Day Challenge Update 3

There are 58 days remaining for my 100-Day Challenge.   I have been doing pretty well, considering the weather is getting beautiful, and my motivation to keep entertainment spending at bay is more difficult now that I am more prone to want to go out.  I have discovered that it is a lot easier to save money during the winter when all I want to do after work is go home and stay warm.

Exercising for 15 minutes a day has been really good for me so far.  I make a point to go for a walk, a bike ride, or just exercise inside for at least 15 minutes and it seems to be making a difference.  I still feel really out of shape, but I think if I persist with regular exercise, even after this challenge is over, I will not regret it.

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April 26, 2010
Debt

Should I Go For a Fixed Rate Mortgage?

If you are are in an open variable rate mortgage like we are right now, you may want to consider if it’s better to move into a fixed rate mortgage before the prime rate goes up.  The Bank of Canada will likely be raising interest rates soon and although prime is at an all time low right now, it won’t stay there forever.  Some major banks have already raised their fixed mortgage rates, so if you are thinking of switching, now is the time to do it before the rates go up even higher.

For my husband and I it makes the most sense for us to stay where we are as we are likely going to be selling our home within the next year or so.  For those of you who are not planning on selling your home anytime soon, you may find it more affordable within your budget to take advantage of a fixed rate.

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April 24, 2010
Shopping

Do Women Have To Pay More Than Men For The Same Item?

While I was sitting in a waiting room the other day waiting for an appointment, I browsed through the April 2010 copy of Chatelaine magazine.  I found an article about how women’s products are generally more expensive than men’s products.  The article was specifically talking about hygiene products such as deodorant, body wash, shaving cream, etc.

The author of the article stated that for the most part, women are willing to spend more on hygiene products so stores jack up the prices accordingly.  The author’s suggestion to women is to check out the men’s products before making their purchases.  If they can find an unscented men’s product that is the equivalent to the higher priced women’s product, then they should go ahead and buy the men’s version.

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April 22, 2010
Wealth

You Can Make A lot Of Money And Still Be Poor

It doesn’t seem to matter how much money a person earns, if they don’t work on developing effective money management skills, they can end up bankrupt.  I was reading an article on Yahoo! that talked about seven professional athletes who squandered away their money on all kinds of gadgets and doodads rather than investing it wisely.

Although it may seem like it would be easier to manage your money if you had a lot of it, it’s obvious from reading the article that having more money isn’t the solution.  Instead, what it takes is a disciplined approach; creating a budget, paying yourself first, controlling your spending, and most importantly, not spending more than you earn.  Although people who make a lot of money may not have to be as strict with their spending, they still need to follow the basic principles of effective money management; otherwise they could end up like Scottie Pippen and Lenny Dykstra.

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April 20, 2010