Image by ~Aphrodite via Flickr

Posted in Money Matters

Canadians love the joy of giving to charities close to their hearts and especially at Christmas. Recent statistics show that 91% of Canadians give to charities on a regular basis. Since we normally only hear about the massive donations made by big name philanthropists, many average Canadians sometimes experience a “why bother” feeling when considering a charitable donation. Sure some people are able to give thousands of dollars but here are some ways to make donations on a limited budget work for you:

Use your credit card to make a gift. By using your credit card -especially for larger gifts-you can create a significant tax savings now and pay the bill later. If your credit card has a loyalty program the benefits of giving this way just keep coming!

Get a receipt. If you only have a few dollars a month you can spare to donate, getting a tax receipt can be tough. One good way to get a tax credit for a small monthly donation is to sponsor a child through and organization like Christian Children’s Fund of Canada. You will have your receipt well before the time you do your taxes.

Every bit counts. Sure you may only have a few dollars to spend but think what that might mean to a family who lives on less than a dollar a day – and think about your tax savings! Websites like www.ccfcanada.ca offer a gift catalogue where $15 can by a soccer ball or school supplies for children in need while providing you one more tax deduction.

- News Canada

Recommended: The Zen Habits Handbook for Life!

Image via Wikipedia

Posted in Money Matters

Here in Canada, there are Federal and Provincial laws that govern how organizations protected the personal information in their care. There are steps you should take to protect your privacy and safeguard your personal information in the marketplace. Here are just a few:

1. Before you reveal any personal information, find out how it will be used and if it will be shared.
2. Always read the fine print on sales agreements and magazine subscriptions, and check the “no thanks” box if you don’t want your information shared.
3. Minimize the the identification and number of cards you carry.
4. Never disclose your PIN to anyone. No one from a financial institution, the police or a merchant should ask you for your PIN.
5. Carefully check your bank account and credit card statements and report and discrepancies immediately.
6. Never give your credit card number over the phone unless you are certain you are dealing with a reputable company or you initiated the call yourself.
7. Tear or shred receipts, credit offers and insurance forms you get in the mail before disposing of them.

Related articles by Zemanta

• Phishing fraud up by 182 per cent

Recommended: The Zen Habits Handbook for Life!

image via Wikipedia

Posted in Money Matters

Work from a Budget

Make a list of everyone you plan to give holiday gifts to this year with an estimate of what you want to spend. Add a small buffer for unexpected gifts for people you forgot to include, or for people who unexpectedly gave you a gift and you feel you have to reciprocate. A gift card or homemade Christmas baking work well for these situations.

Research Ahead of Time

Spend some time getting gift ideas for everyone on your list. Once you have an idea of what you’re going buy, comparison shop on-line.

Pay Cash

It’s easy to overspend when your charging purchases to your credit card. When the money is coming right out of your bank account, you’re more likely to spend less.

Organize Your Shopping Time

The easiest way to stick to your Christmas gift budget is to block out a couple of specific times to shop, and complete it during those times. Browsing leads to overbuying. If you plan to shop online, make that one of your designated shopping sessions.

Don’t Get Sucked in by a Sale

That foot massager may be a great price, but does it fit your budget? Does anyone on your list want a foot massager? If not, leave the “bargain” behind.

Don’t Buy for Yourself

It’s easy to see things you would like, while you’re out buying gifts for others. Even if it’s something you need, ignore it. Your bank account will be in better shape if you don’t give in to temptation.

Track Your Spending

When you see the numbers adding up, you’re less likely to overspend. Your log can be compared to your budget to ensure that you’re sticking to your plan.

Shop All Year

Shopping under pressure leads to overspending. Keep your eyes open all year round for sale items that will work for your gift reuqirments. If you shop early you’ll save money and feel less stressed as the holidays approach.

Use eBay and Craigslist

Often you can find brand-new merchandise at bragain prices.

Recommended: The Zen Habits Handbook for Life!

Image via Wikipedia

Posted in Money Matters

You can’t eliminate personal debt if you don’t recognize it. If you’re laying awake at night worrying about money, you probably already know that you’re in over your head.

If you’re cruising along, juggling credit cards and spending away, you may not know you’re on a dangerous path. If you find yourself in any of the following situations, think seriously about addressing your debt.

1. You routinely spend more than you earn.
2. You make only the minimum payment required on your credit cards.
3. Your credit limit is maxed on most of your cards.
4. You’re unsure about how much you owe or what may be on your credit report.
5. You skip payments on some bills in order to pay others, or use cash advances on one credit card to pay off another.
6. You use credit cards for day-to-day purchases like groceries, movie tickets or fast food.
7. You find yourself arguing with your spouse about money or you’re are afraid to talk to your spouse about money at all.
8. Your utilities are disconnected for non-payment.
9. You write cheques that bounce.
10. You’ve recently been turned down for credit or a loan.
11. You panic when faced with an unexpected expense, such as a car repair.
12. You regularly ask friends or family for loans.
13. You use a cash advance from one credit card to pay another.
14. Creditors are calling you about overdue bills.
15. You’re thinking about filing for bankruptcy.

Related articles by Zemanta

• Improve your credit rating
• Improve your credit status
• Pay Off Credit Cards For Financial Freedom

Recommended: The Zen Habits Handbook for Life!

Image via Wikipedia

Posted in Money Matters

People often think having a budget is the same as not spending money. Nothing could be further from the truth. Budgeting is about tracking and controlling your spending, not living like a hermit in a cave.

Even when finances are tight there are ways to get the most out of life, without excessive spending. The five keys to living cheap:

• Plan your meals, outings and social events.
• Learn your options: free events, cheap movie nights, discount nights at restaurants, coupons, special sales, etc.
• Conserve and avoid wasting electricity, food, heat, hot water.
• Be creative and find ways to save while keeping life interesting.

Grocery Shopping & Meal Planning

Developing an interest in food and cooking keeps your grocery budget down and improves the quality of what you eat. Preparing food from scratch is cheaper than buying processed foods and is healthier for you. If you develop basic cooking skills, you will be able to make dishes which are better tasting than those served in many restaurants. Once you get the hang of preparing home-made burgers, you’ll never eat in McDonald’s again.

• Plan your meals. Use your plan to develop your shopping list.
• Get containers for storing or freezing leftovers.
• Pack a lunch and snacks.
• Buy no-name instead of name brands.
• Get inspired by recipes. Find them on the internet or buy recipe books from used book stores. Share and exchange recipes with friends.
• Variety is important. A boring meal plan makes it too easy to end up splurging.
• Avoid convenience stores. There is a cost for the convenience.
• Replace cleaning products with cheaper environmentally friendly alternatives. Use vinegar and hot water instead of a window cleaner. Baking soda has a number of household uses such as scrubbing pans, clearing drains or deodorizing.
• Replace paper towels with old clothing or rags for cleaning.

Buy in Bulk

• Cereals or granola. Try to avoid highly priced boxed cereal.
• Buy meat in family packs, then freeze in meal-size portions. Make sure you wrap the well before freezing so as to avoid freezer burn.
• Buy a bag of popping corn instead of expensive microwavepopcorn. Use an air popper (you might find one at a yard sale) or pop it on the stove.
• Snacks. Nuts or other bulk items make great snacks.
• Spices are very expensive when bought in containers. Cheaper in bulk.

Make Smart Choices at Home Small choices can equal big savings.

• Television: Do you really need cable? If you have high speed Internet there are places where you can watch some shows for free or buy episodes.
• Buy Used: Get to know the used marketplace, like Value Village, Frenchy’s or go to garage sales.
• Call long distance during discount times or get a calling card. If you don’t know when the cheap times are, or if you’re using a cell, you’re probably paying much more than you have to.

Be Social

You don’t have to give up your social life, just because you’re living cheaply; find creative ways to be sociable for little or no money.

• Get physical. Go for walks, hikes, tobagganing or biking. Camping if you want to get out of town.
• Free events in your community, such as lectures, movies, farmers’ markets, art shows.
• Rent a movie with a bunch of friends. It is a lot cheaper than going to a movie. (see popcorn above)
• Dinner parties. Have a potluck or invite a group of friends over to make sushi or tacos.
• Order too much at a restaurant? Take it home in a doggy bag for tomorrow’s lunch.

Recommended: The Zen Habits Handbook for Life!

Image by d70focus via Flickr

Posted in Money Matters

When someone uses personal information such as your name, social insurance number (SIN), credit card number or other identifying information without your knowledge or permission, it is identity theft and it is a crime. Identity theft is one of the fastest growing types of fraud, but there are ways to protect yourself.

One of the simplest things you can do to protect your identity is to pay attention to details. It can make a difference.

• Once a year, get a copy of your credit report from one of the major credit reporting agencies. The report tells you what information a credit bureau has about your credit history, financial information, collection activity and who has asked for your information. By checking, you can spot debts that aren’t yours and see who has been asking about you. Follow up if a lender or credit-card issuer has asked for a report and you haven’t applied for credit or a card from them. Someone else may be using your name. If you discover incorrect information on your file, have the information corrected.
• Know when your credit card, other financial statements and utility bills are due. if they don’t arrive on schedule call the bank. An identity thief may have changed the billing address or the statements may have been stolen from your mailbox.
• Know when your credit card expires. If the replacement card hasn’t arrived, call the credit card company. Someone may have stolen the new card from the mail or changed the mailing address.
• Keep credit card, debit card and banking machine receipts so you can match them to your statements.
• Be wary of mail, phone or Internet promotions asking for personal information. identity thieves often use bogus offers to persuade you to give them your information.
• Keep a list of the names, account numbers and expiration dates of your credit cards in a safe place This will help you when alerting credit card companies about a lost or stolen card.
• Memorize all passwords and personal identification numbers. Don’t write them down
• Protect your PIN. When you enter a personal identification number or password, make sure no one is watching

Recommended: The Zen Habits Handbook for Life!

A guest post By Debra Gropp

Are you having a difficult time stretching your paycheck to cover all of your monthly expenses? If so, you are not alone. With our economy in its present state, millions of people are struggling to make ends meet and do not have the luxury of being able to save money.

Before you give up hope, you can improve your situation by setting up a personal budgeting plan. This will show you exactly where your money goes. To help you get started, consider some of the tips listed below.

HOW TO CREATE A BUDGET PLAN

First – write down your fixed expenses (house payment/rent, utility bills, insurance premiums).

Second – under your fixed expenses, write down all of your basic needs expenses (food, gas, clothing, toiletries, etc.)

Third – add all of these amounts together and subtract from your total monthly paycheck. The amount that is left is what you actually have to work with in terms of budgeting.

Fourth – list all of your remaining purchases for the month; every single thing you spent money on down to the smallest detail. Be honest. Every cup of coffee, every newspaper or magazine, every candy bar from the vending machine, every meal you ate at a restaurant, your pedicure, manicure, make-up, etc. Make sure you write down every single item.

Fifth – add up the amount you spent on all of those items and subtract that amount from the amount you had left for budgeting. How much did you spend? If you are being completely honest about every single thing you purchased during a month’s time, the amount you come up with will probably be a big surprise.

SOLUTION

Can it be possible that you spent that much on items you did not need? Unfortunately, most of us are completely unaware that we are throwing away that much money each month when we could be saving it. How do you solve this problem?

First – you must determine the things that are most important to you. Identify and list the items you must have. When you are trying to budget your money, you should only be purchasing those items that are for you and your family’s basic needs and lifestyle.

Second – now make a list of the items you want to have. Do you really need them? In order to be successful at budgeting your money, you have to be satisfied with the things you already have or you are setting yourself up for failure.

Third – you must now come up with a budget you can live with. Once you accomplish that, your biggest challenge will be to decide how you are going to use the extra money you have at the end of each month. Do you want to invest in an emergency fund (in case of illness or job-loss)? Perhaps you want to add more to your retirement fund. There are many possibilities.

These budgeting tips will help you succeed IF you have the determination to stick with your budgeting plan. You will be rewarded for your dedication by having extra money that you can use for you and your family’s future.

Debra Gropp enjoys working on the Internet by doing everything from paid surveys and working for affiliate programs to blogging about her interests. Her articles pertain to some of the subjects she is most interested in, ways to save money, hobbies, work from home information, and diet, fitness and health-related information.

Recommended: The Zen Habits Handbook for Life!

Fraudulent investment promoters are glib and resourceful. They may tell you that they have high-level
financial connections; that they’re privy to inside information; that they’ll guarantee the
investment; or that they’ll buy back the investment after a certain time. To close the deal, they
may serve up phony statistics, misrepresent the significance of a current event or stress the
unique quality of their offering to deter you from verifying their story.

According to Canadian police services, these are the 10 most common lies used when trying to promote fraudulent investments:

1. “We don’t make money unless you make money.”
2. “I know you get offers everyday from people who tell you they’re going to make you rich. I can make it easy for you to make your decision based on actual facts.”
3. “This opportunity is the best chance to make extra money for guys who work for a living… guys like you and me.”
4. “I’ve been in the business for 20 years, and I can tell you this: I know no other program that’s legal that’s so easy to afford and so easy to work that can bring in this kind of big money from such a small investment.”
5. “I know this can work for you. I personally guarantee your success, right down to the last penny.”
6. “Give me one percent of your trust. I’ll earn the other 99 when you see the return.”
7. “Of course there’s a risk. There’s a risk in everything.”
8. “Sure we could finance this venture ourselves. But we’re trying to build a power base for the future with folks like you.”
9. “We’re talking about a cash cow here. But it’s going fast. I need your cheque tomorrow at the latest.”
10. “I can’t be lying. There are laws against that.”

Always remember, if it seems too good to be true…it probably is.

Recommended: The Zen Habits Handbook for Life!

NB: This information is based on Canadian practice.

Last week we looked at seven things you need to consider when renting accommodation. One of the key factors in a landlord’s decision to rent to you is proof that your are a good credit risk. Can you afford the rent? Will you pay on time?

The credit check is the tool that most landlords will use to assess your credit worthiness. What does your credit history look like and what can you do to improve it?

Your Credit History Is on File

You build a credit file when you borrow money and pay it back. A credit file is a detailed report containing information about how you use credit and when you make payments. It also includes both current and past information on where you live and work. Credit files are maintained by credit bureaus, which build a record of your credit history based on information given to them by creditors such as banks and credit card companies.

Credit bureaus will not release your information without your written consent. With your written permission, a landlord can receive a detailed report from a credit bureau. The report helps the landlord decide if you are a good credit risk, with the prime concern being your ability to pay the rent each month in full and on time.

Understanding Your Credit Rating

You’ve likely heard people talk about a credit rating, which is a numerical score that creditors use to assess your credit worthiness. It is calculated each time someone—a lender or a potential landlord—requests it.
The formula used to calculate your rating will use the information in your credit file. The scoring systems give you points for each demonstration of responsible credit use. Your credit rating is the sum of these points.

Three main systems – Beacon, Empirica, and FICO® Score – can be used to calculate your credit score. The system that is used depends on which bureau issued your file and who will use it. Information from an Equifax file generates a Beacon score. Information from a Trans Union file generates an Empricia score. Banks and other lenders tend to use these scores. A FICO® score is a credit rating provided directly by Equifax to individuals and it allows people to gauge their credit rating for themselves.

No Credit History Makes Assessment Difficult

If you have never had a loan or a credit card, prospective landlords will have little or no information to review in your credit file. Although an empty file is not as bad as a poor credit file, an empty file tells prospective landlords nothing about any possible financial risks of renting to you. That’s why establishing a good credit file is crucial.

If you are a first-time renter, have had credit problems or do not have a credit rating, you may need a guarantor’s letter from a parent or close friend stating that the guarantor will assume the risk if the you fail to pay the rent.

How Do I Get a Good Rating?

Be sure to make loan and bill payments and minimum credit card payments on time. These timely payments will be reflected in your credit file and will demonstrate that you can use credit responsibly. As a result, your credit rating will be favorable each time it’s calculated. Consistently missing payments, or making late payments, will lower your rating.

Your credit rating will change over time, based on how you use your money and credit. It may take months or years of demonstrating good credit to fix damage caused by poor credit repayment in the past.

How Long Is Negative Information Kept on File?

Each credit agency sets its own timelines for removing information from a file. In general, both positive and negative information remains on file for six years. Information on the date that the credit was granted also remains in your file. In other words, if you have had a credit card for twenty years, only the last six years of your payment history – good and bad – will remain on file. However, since the account’s activation date is included in your file, anyone looking at it will be able to see that you have had the credit card account for twenty years.

Generally, negative information, such as court judgements or late debt payments, is typically removed six years after the filing date. In regards to the time that judgements are kept on file Prince Edward Island is an exception. Bankruptcies typically remain on a credit file for six years from the date of discharge; there is some variance depending on the province or territory in question. However, bankruptcy information will remain on the credit file for a longer time if there has been more than one bankruptcy.

Checking Your File Is Vital

Because errors and omissions on credit reports do occur, it is a good idea to check your file from time to time. Anyone can request a copy of their credit file from the credit bureaus via mail or fax. Telephone requests are not available, as a credit bureau needs to verify your identification. Forms that you can print and then mail or fax are available on each credit bureau Web site.

If you find an error or discover that favorable credit information is missing, contact all the credit bureaus and have it corrected to ensure your credit history is accurately represented to creditors and lenders. You are going to need proof, so be ready to provide statements or receipts. Each bureau sends its policy for reporting an error with the copy of your credit file. Each policy is different, so be sure to review it once you have collected your proof of payment.

A credit bureau will only correct false information in your file. Factual payment information cannot be changed or removed. If you missed a payment by accident, it will be reported as missed on your file and cannot be changed. In this situation, you have the right to have a comment included with your file explaining why you missed the payment. This comment may or may not be considered the next time someone requests your file and generates a score.

Take Action

Verify what is in your credit file and get errors corrected before you agree to share its contents with anybody.

Recommended: The Zen Habits Handbook for Life!

Whether you are a first-time renter or an experienced tenant, finding the right place takes effort and time. These seven things will help you prepare to look for rental accommodations.

Identify Your Needs

The basic monthly rent is an obvious cost, but many less-visible costs add up as well. Don’t forget to consider the following:

• Are utilities, such as heat, electricity, water, cable television and Internet connection included? If not, these costs may come as an unwelcome surprise. Find out which utility companies provide services to that building and contact each company to see if it can provide an average monthly cost for the rental location. The exact usage will vary from tenant to tenant and costs fluctuate, but these estimates will give you a good idea of what to expect as monthly fees.
• Don’t forget to estimate the cost of extras such as laundry and parking, where these have not been included.
• What about transportation costs? Will your monthly travel costs increase, decrease or remain about the same at this new location?
• You may need to provide your own appliances. If you have to purchase or rent these, include them into the total cost of renting.
• Is any form of provincial/territorial rent control in place? If not, what are the landlord’s plans for future rent increases?
• Are there enough bedrooms?

Where to Look

Once you have identified what you’re looking for, you’re ready to start searching. You can use many ways to find a place to rent, but some may not be obvious to the inexperienced searcher. The following lists outline general and online sources that can help you find an ideal rental.

General Sources:

• Newspapers servicing your search area, including free ethnic papers and community papers.
• Free publications, often found in local retail stores, that publish rental accommodation ads.
• Check bulletin board postings at libraries, community centres, grocery stores, laundry mats and places of worship.
• Word of mouth.
• For students, campus housing offices.
• Check with local real estate offices found in the Yellow Pages.
• Visiting neighbourhoods: For Rent/For Lease signs might catch your eye; when you spot a vacancy sign at an apartment building, drop in and talk to the superintendent or the property manager.
• Some community organizations offer housing assistance and settlement services.

On-line Sources:

• Internet mail lists.
• Electronic bulletin board postings.
• Specialized Canadian apartment listing Web sites.
• Web sites of ethnic and community newspapers (classifieds section).
• Web sites of daily newspapers.
• Regional Web sites.

Questions You Should Ask Prospective Landlords:

When looking at a prospective rental, ask the following questions:

Are utilities included? If not, what types are used (e.g. natural gas, oil, or electric heating) or permitted? What are the average monthly costs? If you are sharing the utilities with another party, what are your responsibilities? Is cable television service included or available for an additional cost?

What type of lease is required? What are the main conditions of the lease? Carefully examine the terms, conditions and duration of the lease before signing anything. Some leases may contain unexpected requirements. You may wish to consult a lawyer before signing, especially if you do not understand everything in the lease.

Can you make changes to the premises? Can you paint or make other decorative changes? What restrictions are in the lease?

Why are the current tenant(s) leaving? It helps to ask neighbouring tenants this question as well.

If relevant, are pets or smoking allowed? If you have pets, find out if any restrictions prohibit certain types of pets. If you’ve had pets, are you required to have the rental professionally cleaned at the end of the lease?

What is the neighbourhood like? If applicable, what are the other tenants like?

What makes your property unique? Are any special features available in the rental?

Who maintains the property? Lawn and garden maintenance may be the responsibility of the landlord or tenant, or both. How are minor and major repairs to the rental handled?

Where can you park? Is parking an additional cost? How about additional vehicles? Is adequate space provided for guest parking?

What about additional storage? Are there storage lockers included in the rent? How secure are they? Is there separate bicycle storage?

What security systems are in place? What kinds of locks are used, and have they been changed recently? If renting a high-rise apartment, what areas of the building require keys to access?

Other questions. This list offers a beginning. Consider what you need from a rental and add questions that pertain to your specific situation. Other points to consider may include:

• Policies on overnight guests or long-term visitors.
• Vehicle maintenance and repairs on rental property, if applicable.
• Installation of additional utility cabling, telephone and television jacks, or compact satellite dishes.
• The availability of broadband or high-speed Internet services in the area or building.

The Credit Check

Can you afford the rent? Will you pay on time? Proof that you are a good credit risk is one of the key factors in a landlord’s decision to rent to you. The credit check is a tool that most landlords will use to assess your credit worthiness. (We’ll look at credit checks in more detail next week.)

Renting in Spite of Bad Credit

You may have had financial troubles, but bad credit doesn’t have to keep you from finding rental accommodations.

The best way to establish good credit and repair bad credit is to pay off debts and get a receipt or a letter from the landlord to confirm your rent payments. When applying for accommodations, bring this confirmation as proof. Being honest and up front with prospective landlords could make them favour your rental application, regardless of past credit difficulties. Knowing that you pay your rent on time is becoming more important to landlords than credit in other areas. Use a recent landlord as personal reference, if required.

Make a good impression when meeting a landlord

When visiting a property, come prepared with:

• A pen and a copy of the Rental Unit Evaluation Worksheet (PDF).
• A cheque to leave a deposit.
• Your rental history and appropriate references from current and previous landlords.
• Credit references (and be ready to approve a credit check).
• Guarantor information (if applicable).
• A letter from your current employer stating your annual salary and length of employment or a recent pay stub and contact information.
• Your list of questions.
• Information about your pets, if applicable.

Making a first impression:

• Know the name and direct telephone number of the person you will be meeting.
• Go to your interview alone unless you are renting with a spouse or roommate.
• Dress neatly and arrive on time.
• Respect the current tenant’s privacy if the apartment is occupied.
• Review your credit report before the landlord does.
• You never know when you might meet a potential landlord. As you tour neighbourhoods and buildings, be prepared for spontaneous meetings.
• When viewing a rental unit, take your shoes off at the door.

Shared Accommodation

Sharing accommodation may make your shelter cost more affordable; however, it can pose many problems. People in shared living space must communicate about how they expect to live together. Set out guidelines in advance to avoid any problems that might occur. Talk about responsibilities for household chores, personal property, keys and privacy. Discuss who will take care of paying the rent, phone bills, utilities and other shared expenses.

With material from CMHC

Recommended: The Zen Habits Handbook for Life!