Banking

How Your Bank Can Save You Money

If you think your bank is costing you too much money, then now is the time to look at ways your bank can help you save money rather than spend it. Although there will always be bank charges and fees, there are ways to save money using banks and make the most of their services. Here are some tips about how to cut down on bank costs and save yourself money.

Savings

One way to save yourself money through your bank is to open a savings account. If you have a fair amount of money in your current account, then transferring it to a savings account with a high interest rate is a good idea. Having a savings account does more than just save you money; it earns you money. The interest generated from a savings account means that you are making money from the money that you store. However, you should remember that many banks charge a fee if you go below a minimum amount in the account, so keep track of this in order to save yourself money.

ATM charges

Another way that you can save money when banking is to use free ATM machines. Some ATM’s charge you a fee to take money out, either for the convenience of because the ATM does not belong to your bank. If at all possible you should stick to ATM’s that don’t charge you money. If you do this regularly then you could save yourself ?100 a year or more.

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March 1, 2010
Money Saving Tips

Expensive Habits To Break in 2010

If you take a close look at your current lifestyle, there are likely one or two habits that you have developed that have cost you a lot of money over the years.  My challenge to you is to work towards breaking those expensive habits this year so that you can use that money for bigger and better things such as saving for your future, doing some home renovations, or taking a much-needed vacation.

I’ve listed below just a few of the many expensive habits out there.  I’m sure you could come up with more of your own that you need to challenge yourself to overcome.

1.  Unused gym memberships – There’s certainly nothing wrong with paying for a gym membership if you actually go to the gym regularly and make good use of it.  Unfortunately, however, a lot of people don’t use the gym enough to merit paying for a membership.  If you’re one of those people, I recommend canceling your membership and getting exercise by some other method such as jogging with a friend or family member regularly.

2. Specialty coffees – If you find yourself stopping at Starbucks every morning for your favorite specialty coffee, consider buying the mix and making a cup at home.  You can bring it to work in a mug or thermos for a fraction of the cost.

3. Buying lunch everyday – Rather than throwing away your hard-earned money day after day by buying lunch at your work cafeteria, get into the habit of bringing your own lunch to work using leftovers from the night before.

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February 27, 2010
Investing

The Best & Worst Time To Make an RRSP Withdrawal

Withdrawing from an RRSP can be an extremely expensive option due to the tax consequences.  So, unless you are saving for retirement within your RRSP, or you are planning on taking advantage of the Lifelong Learning Plan or the First Time Home Buyer’s Plan, I would not recommend saving within an RRSP investment vehicle.

To illustrate this, suppose you are 25 years old and you have managed to save $5000 in your RRSP.  You end up spending too much money over Christmas and find it impossible to keep up with all your bills.  You decide to withdraw $2000 from your RRSP.

By doing so, you have lost $2000 worth of RRSP contribution room.  You can never get this contribution room back.

As well, you will be subject to a withholding tax of 10% in all provinces (except Quebec where you would have to pay 21%) that would be taken off the top and sent to the government.   So, even though you are withdrawing $2000, you would only get $1800 at the end of the day or even less in Quebec.

You will also need to add the full $2000 to your income for the current tax year, and then depending on your income tax bracket, you will likely have to pay more tax at the end of the year unless you deliberately make an RRSP contribution to offset the withdrawal.

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February 25, 2010
Money Saving Tips

Cashing In On Your Spare-Time Interests

Have you ever thought about earning a full time living from your hobbies? It doesn’t matter if it’s sports, crafts, or even trading merchandise – it’s more than possible to earn a living with your hobbies – it’s the major source of income for millions of people all over the world!

Sometimes what seems like a career actually begins as a hobby for someone. Many couples that are adept at home repairs have a hobby of investing property, fixing it up, and flipping it into a profit.

The key to making mounds of money from your hobby is to pick something that makes you happy. You may not enjoy home repairs like your neighbor. Maybe you have a passion for taking everyday things and making an extraordinary piece of art from them.

The best thing about profiting from your hobbies is that you’re doing something that relaxes you and gives you joy in life. Not many people can say that about their jobs. In fact, most people in surveys would love to trade in their 9-5 corporate gigs for something more rewarding.

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February 23, 2010
Banking

Find A Good Financial Advisor

When building a financial strategy for yourself and your family, it’s a good idea to take the time to meet with a Financial Advisor, as advisors are experts in investing, taxation, estate planning, retirement planning, and insurance.  When you partner with a Financial Advisor, they will be able to help you build a strategy in order to achieve your financial goals.  Why try to do it all on your own when you can take advantage of professional guidance?

That being said, it’s important that you find a good Financial Advisor that has your best interests at heart.  Below are some things to look for when you are choosing a Financial Advisor:

*You need to feel comfortable with the advisor so you can work well together.

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February 21, 2010