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February 6, 2023 Budget

Budgeting For Beginners

Image by Megan Rexazin from Pixabay

Want to get started with a budget but aren’t sure how? I’ve got an easy-to-follow process to help you get started.

  1. Determine your income.
  2. Track your spending.
  3. Set a budget.
  4. Stick to your budget!
  5. Automate your savings!
  6. Review and adjust your budget regularly.
  7. Use tools and apps to help you improve your budget.

1. Determine Your Income

Start by figuring out how much money you bring in each month, including your salary, any side income, and any other sources of funds. It must be a reliable source of income, so don’t count something like money you get for your birthday or another holiday!

2. Track Your Spending

Keep track of your monthly expenses, including bills, food, entertainment, and other purchases. This will give you a good idea of where your money is going and where you can make changes to reduce expenses. This may seem tedious, but if you pay for many expenses by debit or credit, you can check online to find details about most of your bills.

3. Set A Budget

Based on your income and expenses, create a budget that allocates your money to different categories, such as housing, food, transportation, and entertainment. Ensure the amount you spend in each category doesn’t exceed the available amount.

4. Stick To Your Budget!

Once you have a budget in place, it’s essential to stick to it. Avoid overspending by making a conscious effort to live within your means and avoid impulse purchases. This can mean saying “No” to some invitations or finding a less expensive way to entertain yourself or your guests!

5. Automate Your Savings

Consider setting up automatic transfers from your checking account to a savings account. This can help you save money each month without thinking about it. You’ll still have access to the money in an emergency, but you’ll be less likely to spend it mindlessly.

6. Review And Adjust Your Budget Regularly

Your financial situation may change over time, so you must regularly review your budget and adjust as needed. This could mean reducing spending in some categories and increasing it in others. This is a crucial step to ensure that your budget remains something that helps you live within your means without requiring you to live within unrealistic limits.

7. Use Tools And Apps To Improve Your Budget

Many tools and apps can help you manage your budget, track your spending, and reach your financial goals. Consider using one of these resources to help you stay on track. It can be handy to be able to quickly and efficiently track data either via your computer or via your phone!

How Did You Get Started With Budgeting?

Did you follow a process similar to this or try an entirely different approach? Let me know in the comments!

January 15, 2023 investing

New To Investing? Here’s How To Get Started!

Are you ready to start investing? Investing is an excellent way of getting your money to work for you, but you need to make informed decisions about how you want to invest, or you could risk losing all your money.

This is my six-step guide for getting started investing:

  1. Set financial goals.
  2. Educate yourself.
  3. Consult a professional.
  4. Open a brokerage account.
  5. Make sure you have a diversified portfolio.
  6. Review and adjust your investments as necessary.

Set Financial Goals

Before you start investing, you must clearly understand what you’re saving for and how much you’ll need to reach your goals. This could be anything from saving for retirement, buying a house, and paying for your child’s education. Knowing your goals will help you determine your risk tolerance and choose investments that align with them.

Another benefit to setting financial goals is that you will be more motivated to set money aside for investing as you’ll have an end goal in sight!

Educate Yourself

Investing can be complex, so educating yourself about different investments and how they work is essential. For example, stocks represent ownership in a company and can provide growth potential. Bonds are a form of debt and tend to be less risky but provide less growth potential. Real estate investments can provide cash flow, appreciation, and tax benefits.

There are so many options available today for investing, so you must understand the differences between each kind of investment and what benefits and drawbacks they offer.

Consult A Professional

A financial advisor or professional can help you create a personalized investment plan that considers your goals, risk tolerance, and current financial situation. They can also help you diversify your portfolio and make adjustments as needed.

However, working with a professional can also mean paying higher fees. There are many online options to consider if you prefer doing it alone, such as Wealthsimple and Questrade.

Open A Brokerage Account

A brokerage account is an account that holds securities like stocks, ETFs, bonds and other assets on behalf of an investor (that’s you!). Once you know your financial goals and what type of investments best suit you, you’re ready to open a brokerage account.

Make Sure You Have A Diversified Portfolio

It’s essential to diversify your portfolio by investing in a mix of different types of assets, such as stocks, bonds, and real estate. This can help spread out the risk and improve your chances of earning a positive return on your investment.

Review And Adjust Your Investments As Necessary

It’s essential to review how your investments are regularly doing and adjust them as necessary. This doesn’t mean you panic at short-term market fluctuations- it just means you make sure that your portfolio is still aligned with your goals and risk tolerance a few times a year.

Having a balanced portfolio in the first place and investing in diversified investments like ETFs will help cut down on the rebalancing you’ll need.

How Did You Get Started Investing?

Let me know in the comments!

January 1, 2023 Making money

Increase Your Income In 2023!

Are you looking for some great ways to increase the income you bring in this year? Then look no further – I’ve got some great ideas on how you can earn more money:

  1. Get into the tourism game.
  2. Start a dog-walking hustle.
  3. Sell stuff you’re not using.
  4. Look into freelance writing.
  5. Do research surveys.

Get Into The Tourism Game

The world is opening up, and people are excited to travel! You can make money from this by renting out a spare room or, even better, a spare property if you have one.

Not interested in having to deal with the hassles of renting? You can still benefit from tourism by crafting a unique activity – such as a historical walking tour- that lets tourists explore your city while learning!

Start A Dog-Walking Hustle

If you love dogs and want to earn extra money, dog walking can be a great way to pick up some extra cash. Start asking friends and family to see if they know anyone needing a dog walker, and then expand your circle!

Sell Stuff You’re Not Using

Along with earning more money, many people declutter their house as a New Year’s resolution! You can combine the two by listing items online (for example, eBay or Craigslist) for sale that you no longer need.

Before you do this, keep in mind two things:

  1. Don’t go through the hassle of listing everything you no longer need online. If stuff is in poor shape or it’s unlikely anyone would pay for it, it’s better to donate it or put it in the trash.
  2. Keep safety in mind, and only agree to meet buyers in a public place if you’re going to conduct a sale in person.

Look Into Freelance Writing

Freelance writing is a great gig; it costs you nothing but time. There are no set-up costs, and you don’t need to worry about gas or insurance like when you work for a company like Uber or Lyft.

The key to success with a freelance writing side gig is to focus on what you know – now isn’t the time to tackle a brand-new subject. Whether your area of expertise is parenting, fishing, woodworking, or something else, there’s a writing gig waiting for you!

Do Research Surveys

These aren’t a way to get rich, but they are a great way to pick up a little extra cash or some gift cards. One site I’ve been using on and off for years is Swagbucks. They offer a variety of ways to earn points that can be used towards gift cards, including answering surveys and even playing online games!

What’s Your Plan To Increase Your Income In 2023?

How are you planning to increase your income in  023? Let me know in the comments!

December 15, 2022 Good money habits

Five Credit Card New Year’s Resolutions You Should Make

Taking charge of finances is a widespread New Year’s resolution! I’ve got five excellent credit card resolutions you should make to help keep yourself on track financially:

  1. Don’t make late payments.
  2. Don’t use too much of your available credit.
  3. Don’t take out cash advances.
  4. Don’t apply for numerous credit cards.
  5. Don’t pay off your credit card too quickly.

Don’t Make Late Payments

There are several drawbacks to paying your credit card balance late:

  1. You’ll have to pay interest on your balance.
  2. You may see your interest rate rise.
  3. You may have to pay fees on top of paying interest!

If you’ve got an issue with not remembering to pay your credit cards on time, one good option is to set up automatic payments on your credit card due date. If, however, you have concerns you may not have enough in your account to pay your bill, set yourself up a reminder at least five days before your credit card bill is due so you can plan appropriately to ensure you pay as much as possible on your bill.

Don’t Use Too Much Of Your Available Credit

You may be wondering about this tip and why it’s crucial. It comes down to that the more you spend on your credit cards, the more you’ll have to pay off eventually – and this can be a real issue if you suddenly lose your source of income!

I recommend using no more than 75 percent of the credit available on your credit card – and even less if you have a very high limit.

Don’t Take Out Cash Advances

There are several good reasons not to take out cash advances on your credit card:

  1. The interest rate for cash advances is higher than if you charged the item to your card.
  2. There’s no interest-free grace period for cash advances – you’ll be charged interest immediately!
  3. You don’t earn any reward points on cash advances.

If you find yourself short on cash, try to find ways to boost your income or cut back on your spending.

Don’t Apply For Numerous Credit Cards

If you apply for numerous credit cards, this can be considered “shopping for credit.”  This can work against your overall credit rating!

In addition, having a lot of credit cards can lead you into temptation – and you run the risk of not being able to pay off your cards or not being able to track when all your cards are due. And this means you’ll rack up fees and pay a lot of interest!

Don’t Pay Off Your Credit Card Too Quickly

This may sound like an odd tip, but it has merit. If you’re using your credit card to build a credit rating, paying off your card too quickly can work against you.

By waiting until you get your bill (either a paper bill or electronically) and then paying off your bill, the credit scoring system can register that you’re responsibly using your card and paying your bill off on time!

What’s Your Favourite Credit Card Resolution?

What new habit are you going to adopt in the new year? Let me know in the comments!

December 1, 2022 Holidays

My Top Tips For Saving Money This Christmas

Looking to save some money this Christmas? I’m here to help!

It’s the holiday season, so it’s time to start thinking about gift-giving and holiday expenses. Like many people, you’re likely feeling a little overwhelmed by the cost of the holidays. But don’t worry – with some planning and innovative budgeting; you can have a joyous and affordable holiday season!

  1. Set a budget.
  2. Start shopping.
  3. Book travel early.
  4. Look for innovative ways to save money.

Set A Budget

First things first: it’s essential to set a budget for your holiday expenses. Determine how much you can spend on gifts, travel, decorations, and other holiday-related expenses. Don’t forget to include any ongoing expenses in your budget, such as your monthly bills. This will help you avoid overspending and have enough money to cover your expenses.

Start Shopping

Once you’ve set a budget, it’s time to start shopping. Look for sales and coupons to save money on gifts and holiday items. Consider making your gifts or decorations instead of buying them – this can be a budget-friendly way to add a personal touch to the holidays. Don’t go overboard; you could spend more on making gifts than buying them!

Another tip is to be strategic with your gift-giving. Set gift limits to reduce the amount of money you spend on gifts. You can also consider giving experiences instead of physical gifts, such as concert tickets or a cooking class certificate.

Book Travel Early

Book your travel as early as possible to get the best deals if you’re travelling for the holidays. Look for sales on flights, hotels, and rental cars, and consider alternative modes of transportation, such as taking the bus or train instead of flying.

Look For Innovative Ways To Save Money

Another way to save money during the holidays is to be mindful of your energy usage. Turn off lights and unplug electronics when they’re not in use to save on your electricity bill. Potluck is a great way to save you time and hassle and cut down on food costs.

And start planning early for next year! You can buy decorations and gift bags, and wrapping on sale after Christmas – and save a lot of money on big-ticket items such as artificial trees and outside decorations by buying them as part of Boxing Day sales!

What’s Your Best Money-Saving Christmas Tip?

Whether it’s planning a budget-friendly Christmas diner, creative gift-giving, or putting off travel til it’s less expensive, let me know what your best money-saving Christmas tip is in the comments!

November 15, 2022 Retirement

Four Retirement Planning Mistakes To Avoid

Image by MonikaDesigns from Pixabay

Whether retirement seems a long way off or you’re eagerly looking forward to it, it’s essential to make sure you avoid retirement planning mistakes!

I’ll cover these four mistakes to avoid:

  1. Not having a proper retirement plan.
  2. Not planning enough.
  3. Underestimating how much money you’ll need.
  4. Not entirely using your TFSA.

Not Having A Proper Retirement Plan

While some people are lucky enough to have lavish pensions indexed to the cost of living to look forward to, that’s not the case for most of us! So we need to put into place a proper retirement plan that covers two critical aspects of retirement:

  1. What kind of retirement do you envision? Something with lots of travel or something spent quietly, with time to practice hobbies and volunteering?
  2. What kind of funds will you need to support the retirement you envision?

Not Planning Far Enough In Advance

You should start planning and saving for retirement as soon as you start your first job. The earlier you start putting money away, the more time it has to grow. If you need to decrease your savings once you have children or other expenses, having a solid start on your retirement savings will pay off in the long run!

Underestimating How Much Money You’ll Need

It can be tricky to determine how much money you’ll need. Hopefully, by the time you retire, you’ll have paid off your mortgage and car loans and be finished contributing to your children’s higher education. So those are some costs you’ll no longer have to deal with. But you may have new costs, such as paying for private health care benefits (as you won’t have an employer to provide them) or eating out or travelling more, to account for.

Not Fully Using Your TFSA

A TFSA is a fantastic way to save for retirement. While you don’t get a tax deduction for contributing to your TFSA, all your growth is tax-free, and any money you withdraw (whether during your retirement years or earlier) is also tax-free!

There are also two other great benefits to the TFSA:

  1. Any federal income-tested benefits and credits, such as Old Age Security (OAS) benefits and the Guaranteed Income Supplement (GIS), will not be reduced due to the income you earn in your TFSA or money you withdraw from your TFSA.
  2. Income earned in your TFSA account or money you withdraw from your TFSA will also not affect your eligibility for federal credits, including the goods and services tax/harmonized sales tax (GST/HST) credit or the age amount.

What’s your retirement planning tip?

Have you made a retirement planning mistake or managed to avoid one? Let me know in the comments!

 

 

 

November 1, 2022 Frugal habits

5 Tips for Saving On Groceries

With grocery prices rising these days, everyone is trying to find ways to lower their grocery bills! I’ve got some great tips to help you out:

  1. Shop the flyer.
  2. Cut back on meat.
  3. Check what’s in your pantry and freezer.
  4. Take a look at your last grocery bill.
  5. Try new recipes.

Shop The Flyer

See what’s on sale at your grocery store this week – the best sales are usually on the first and last page of the flyer. If it’s an item you’ll use frequently and stores well, stock up, especially if it’s an excellent deal.

Don’t buy an item just because it’s on sale, though, if you wouldn’t usually buy it otherwise – because if you do that, you’re not saving money!

Cut Back On Meat

Meat isn’t generally cheap anyways, and cutting back on it is always an excellent way to save. If you can’t do without meat, try to incorporate it so it’s just a part of your meal instead of the central part. For example, putting meat into soups, stews, or chilli and adding lentils, beans, and root vegetables can be a great way to get a healthy and tasty dish for less!

Check What’s In Your Pantry And Freezer

Before you go out shopping, see what you already have. You may have stocked up previously on something and promptly forgotten to use it! You don’t want to waste food you’ve paid for, so keeping a list of what you have in your pantry and freezer can be a great way to keep up with what you do and don’t have.

Take A Look At Your Last Grocery Bill

Looking at your last grocery bill can give you a good idea of where you’re spending money. You may not realize how much something costs you if it’s priced by the pound (for example, apples or grapes). Everyone wants to eat healthy food, but it can get pricey – here are some ways to save:

  • Consider frozen fruits and vegetables. They’re nutritious, easy to use, and don’t go bad!
  • Try to stick to what’s in season. Apples are plentiful in the fall, and berries are cheaper in the summer than in the winter!
  • Try to avoid a lot of impulse buying – make a list and stick to it!

Try New Recipes

Most of us do the same thing every week for lunch and dinner. But if the cost of your favourite dishes’ ingredients has gone up, it may be time to branch out and try something new. There are many great sites on the Internet to find new recipes for any meal.

What’s Your Best Tip For Saving On Groceries?

The more tips, the better – please leave your tips in the comments!

 

 

 

 

 

October 15, 2022 Good money habits

Three Unconventional Personal Finance Tips

Today I’ll cover some stuff different from the usual personal finance tips! These are some decisions or actions that can impact your financial health:

  • Who you marry or enter a long-term relationship with.
  • Leave your credit cards at home if you’re an impulse shopper.
  • Institute a “no-buy” month,

Your Relationships Can Have A Huge Impact On Your Financial Health

Who you marry or enter a long-term relationship with can enormously impact your financial health! Combining finances with someone who isn’t very good at managing money can affect your ability to plan for your future and save for it.

These are two actions you can take to help ensure money doesn’t become an issue in your relationship:

  • Give each person a “fun” budget for every week or every month. This is money you can afford to spend without impacting your long-term financial health and can be spent any way you want.
  • Have regular money “dates.” This is when you talk about how you’re doing financially as a couple, what you’re spending money on, and any changes you may need to make to your spending habits.

Leave Your Credit Cards At Home If You’re An Impulse Shopper

If you have impulse shopping issues, one way to help keep your shopping habits under control is to leave your credit cards at home! Yes, you can still pay with debit, but the limit tends to be lower, so you’ll spend less overall. Just don’t forget to bring cash along. Paying with cash seems more “real,” so you’ll think twice about buying things you don’t need.

If online shopping is an issue for you, make it as hard as possible for yourself. Delete your accounts, including your Paypal account. The more work you have to do to pay for something, the more likely you’ll think twice about buying it!

Institute A “No-Buy” Month

A “no-buy” month gives you a chance to take a refresher and take a good look at your spending habits. As you deal with holiday bills, January can be a great time to do this!

You can still buy items you need – like food, clothing, medicine, and hygiene products. However, you must put off buying anything you don’t need – for example, books, home decor, and cute trinkets – until the end of your “no-buy” month. Make a list of all the items you considered buying but didn’t to give yourself an insight into how much money you’ve saved by having a “no-buy” month.

What’s your unconventional personal finance tip?

Have you tried any of these? Do you have another tip I haven’t mentioned? Let me know in the comments!

 

October 1, 2022 Good money habits

5 More Frugal Strategies You Need To Know

Image by Shirley Hirst from Pixabay

My last post covered four frugal strategies to help you stretch your money further. Today, I’ll cover five more:

  • Bartering
  • Buying used
  • Salvaging
  • Reusing
  • Waiting

Bartering

Bartering has been around for a long time – and it’s a great way to obtain something you need without spending money. When you barter, you exchange goods or services with someone else instead of paying directly for them.

For example, you need a babysitter but don’t want to pay for one. You could ask a friend to watch your children for you – and in return, you’ll whip up a birthday cake for them. Or you aren’t in good enough shape to take care of your lawn or shovel your snow – so you ask a neighbour to handle it, and in return, you’ll take care of their cats while they’re on vacation.

Buying Used

This is a habit many people have already gotten into – in fact, “going thrifting” for second-hand clothes can be quite a popular activity. Whether on a tight budget or looking for a unique signature piece of clothing, buying second-hand can be a great way to save money.

You can also buy tools, furniture, and other items second-hand – but try to get them from a reputable place, so you aren’t buying something in good shape.

Salvaging

Many people throw out the excellent stuff – like wood – you can salvage. Whether you want to burn it to keep warm or turn it into something practical like bowls or tables, salvaging wood can save you a lot of money.

I was gifted a bike my son never used, and I didn’t want to throw it out or lug it somewhere to donate. So I put it outside with a “Free” sign, and it was gone in 10 minutes!

Reusing

Got a package from Amazon? Hang onto that box! Your cat will love it, or you can turn it into a little house for your kids to play with.

We saved empty margarine containers all the time when I was growing up. While I wouldn’t use them to freeze or reheat food, they’re great for temporarily storing leftovers or for people to take away with them – and they don’t have to return the dishes!

Waiting

This habit is a little different than the others because it requires you to do nothing. You can’t do this for items like food or a winter coat – but you can do it for major purchases if they are a want instead of a need. So if you think you’d like to upgrade your fridge or your car – but you don’t need to, waiting until an item is on sale or you can pay for it will save you a lot of cash in the long run.

Have I missed any frugal habits?

Let me know if you have any frugal habits that I haven’t covered in the comments!

 

 

 

 

 

 

 

September 15, 2022 Frugal habits

Four Frugal Strategies You May Not Have Thought Of

Image by Steve Buissinne from Pixabay

My last post covered nine ways to prepare for a recession. In this post, I’m going to explain four frugal strategies that can help you out if you’re in a financial pinch:

  • Mending
  • Hang your clothes to dry
  • Start a garden
  • Canning

Mending

You may not know how to sew or own a sewing machine, and that’s OK! You can help your clothes last longer with a simple needle and thread. By sewing back on buttons that have fallen off or patching up small holes in shorts or socks, you can get more use out of clothing you already own.

If something can’t be mended, you could turn it into rags or keep it for “around the house” only for cleaning, painting, or other messy chores.

Hang-Dry Your Clothes

You can save on electricity costs by hanging clothes and other items (such as sheets and towels) up to dry. Even if you don’t want to hang everything up, you can hang up heavier items, reducing the time required to dry the remaining items in the dryer.

Worried your towels will end up stiff if you put them over a drying rack? Just pop them in the dryer for a few minutes to soften them up once they’re finished drying.

Start A Garden

It’s fall, so you may not be able to grow much this time of year. But you can start preparing for next year by setting up some space for a garden or buying containers, soil and seeds that may be heavily discounted.

If you like to cook using a lot of herbs, it’s worth setting up a herb garden inside over the winter. It’ll make your house smell lovely, and you’ll have access to fresh herbs whenever you want them!

Canning

Canning is a great way to make produce last longer. When produce is in season, you can often buy a lot of it for a very reasonable price. For example, you can buy tomatoes or apples in bulk when they’re in season – but the problem is, you can’t eat them all up before they go bad.

That’s where canning comes to the rescue! You need a few essential resources to get started – such as a pot to boil water in and jars – and you’re good to go. You can enjoy the fruits of your labour for months on end!

What’s your favourite frugal strategy?

Do you have a strategy your parents or grandparents taught you to help save money? Let me know in the comments!