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HOLIDAY SPENDING: HOW DO I STOP OVERSPENDING DURING THE HOLIDAYS?

We hope that you and your family are safe and healthy.

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

Holiday spending introduction

The holiday sales days of Black Friday and Cyber Monday holiday retail shopping are over. You may feel you tend to overdo it on your annual holiday spending and that will put you in a poor financial position entering into 2021. On the other hand, COVID-19 has made a lot of people anxious and even depressed. You want to buy something nice this Canadian holiday season for your loved ones and close friends to cheer them up.

So I have created our holiday spending in Canada tips to attempt to help with your holiday shopping. Ideally, by following our suggestions, you will not go into the New Year with more financial debt than you can take care of. You ideally will have avoided the most typical holiday spending mistakes and not end up being one of the miserable holiday shoppers who have awful holiday spending habits.

Holiday spending: Tale of two countries?

The COVID-19 pandemic has devastated the U.S. economy and kept lots of would-be consumers at home this year. Nationwide US consumers are expected to spend much less on gifts and various other holiday-related merchandise than they did last year. So many Americans are hurting because the federal government has not gotten the much-needed relief to people and businesses in the United States.

On the other hand, in Canada, the federal government has distributed relief very quickly. It has come as monetary support for citizens and businesses. It has also come in the form of mortgages and other loan deferrals. By the end of 2019, most, but not all of the Canadian government coronavirus support will end.

As I have written in previous blogs, the combination of government support payments and people staying at home, has resulted in people spending less. They have been able to put money towards paying down debt. Although debt levels are still high, they have been reduced over the last 10 months.

CPA Canada, the association that represents Chartered Professional Accountants of Canada, did a survey on the holiday outlook for this year. According to the CPA Canada survey, most Canadians’ spending will be on gifts: $588 this year versus $583 in 2019. So according to that survey, Canadians will spend, on average, the same this holiday season as last year. Perhaps the only question might be will they do more online shopping this year than in previous years? It will certainly be interesting to see the holiday spending retail sales report early next year.

How will Canadians buy for this year’s holiday spending?

Gifts are only one portion of total holiday spending. Traditionally, travel was always a large part of non-gift holiday spending. The CPA Canada holiday spending survey shows that Canadians have spending plans to spend the same on gifts as they did last year. However, due to the coronavirus pandemic, travel spending will certainly be far less than in prior years. It could even be essentially eliminated. This will create lower total holiday spending in Canada in 2020.

Another major trend sped up by the pandemic is a curbside pick-up. Many Canadians will select this approach for their online purchases. The reality is that Gen Z and Millennials use this approach or get their purchases delivered to them all year round – not just for their holiday spending.

Canadian adults aged 55-plus are traditionally the last to use curbside pickup or delivery. This holiday season may be very different for this group of Canadians. Health concerns may very well drive them to more online shopping this holiday shopping, given the reality of our current environment.holiday spending

Holiday spending budgeting

It is so important that you really think out your holiday spending budget plan before you start spending. I think there are 3 major classifications to your holiday budget: (i) presents; (ii) food and beverage in your home; and (iii) what you might spend in clothing and other amounts because of various holiday parties you would normally be attending. This year I don’t think there will be much spending relating to holiday parties as most, if not all, are cancelled.

To begin setting your holiday spending budget plan, you require to establish 2 different mini-budgets. For gifts, the first thing is to write down the names of everybody you feel you want to get holiday gifts for. Then write down only those who you must buy a gift for. You might not have the ability to afford your “wants”, however just your “needs”.

Check out your regular monthly income and expenses as well as any kind of savings you may have assigned for holiday costs. Also, look at your spending habits to understand what your needs will be over the first few months of the New Year. This will better equip you to understand just how much you can spend overall without going into holiday financial debt.

You also need to then estimate your spending on food and drink for your holiday entertaining this year. That number may very well be less than in previous years as people are being encouraged to not congregate in the same large numbers as they have previously.

Use your holiday spending calculator and take all of this into account, you can set with some degree of confidence your gift and other holiday spending budgets. Then you have to follow them!

My 6 best holiday spending tips

Here are my 6 best holiday spending tips:

  • Purchase with a purpose – You have now determined just how much you can safely spend on each person. Locate the ideal items that meet your costs goal. You do not have to think of price anymore since you will adhere to your specific gift cost limits. You can now focus only on suitable gifts within your budget restrictions. Purchase gifts that fit within your budget plan.
  • Only buy with cash money – You will certainly be enticed to get with your credit card. Using plastic will certainly trigger you to spend too much due to the fact that you will not really feel the purchase. To really feel the purchase, just use cash. When you feel it, you don’t spend too much. You will likewise prevent the awful surprise in January due to the fact that you will not receive an out of control charge card statement that you will not be able to settle fully. You will not only feel wonderful in December; you will have that same or even a better feeling in January.
  • Consider a family present to conserve money – If you feel you won’t have the ability to pay for individual presents, think about the members of the same household and look for a family gift. A gift card for the family may be more affordable than the total of individual presents. Don’t forget to take a look at that choice. Or perhaps one thing for the house that you know all family members will take pleasure in. There are many possibilities for a family present and you will still have an enjoyable shopping experience.
  • You have many talents so give of yourself, not your money – Don’t assume that the only gift that counts is one that costs money. You can actually do a buy nothing day for someone. You have many abilities and talents. Probably one or more would make a great present. If you cannot consider anything unique you can supply that would make a fantastic present, how about your time as an item? Babysit for nieces or nephews, give an afternoon to an ageing relative that needs help either in the house or getting around for errands. These can all count as important presents that won’t cost you anything or much at all. Your time and theirs spent together are much more precious than any type of present you would get in a shop.
  • Visualize the decorations – If you don’t currently have a box of ornaments from years past to use, visualize creatively. The accessories bought at a Dollar Store will look just as wonderful on your tree as ones purchased at a much more expensive specialty shop. Or, use your own creative thinking to make your own decors. If you aren’t certain where to begin, search the numerous videos online to teach you how to make terrific looking decorations that do not set you back too much for materials. Your work, certainly, is cost-free and you will get such joy out of seeing your own creations on your tree and in your home. Why not spread such joy to yourself first; you deserve it.
  • Do you have reward points you either do not see making use of or will quickly expire? – You have been collecting the points. You undoubtedly thought they would certainly give you something extra you may not otherwise be able to afford. Perhaps you might lose them or even otherwise, you don’t see on your own being able to use them in the foreseeable future. So, why not use them for an appropriate gift or gifts for those you need to buy for? You will also save time because more than likely, buying with points means that you are shopping online. You will certainly feel good about using them in this manner due to the fact that you will be making use of the points for someone important in your life. You will also feel good about not having to spend the cash. The people you get the gifts for will cherish your gift, never knowing that you didn’t have to spend cash to get them. It is a win-win.

I wish all of our readers a Happy Chanukah, a Merry Christmas and a healthy, happy and prosperous 2021.

Holiday spending: What if you already have too much debt?

I hope you have enjoyed this holiday spending Brandon’s Blog. Do you or your company have too much debt? Are you or your company in need of financial restructuring? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too much personal debt.

You are worried because you are facing significant financial challenges. It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to get you out of your debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

The stress placed upon you is huge. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. The way we take the load off of your shoulders and devise a debt settlement plan, we know that we can help you.

We know that people facing financial problems need a realistic lifeline. There is no “one solution fits all” approach with the Ira Smith Team.

That is why we can develop a restructuring process as unique as the financial problems and pain you are facing. If any of this sounds familiar to you and you are serious about finding a solution, contact the Ira Smith Trustee & Receiver Inc. team today.

Call us now for a free consultation.

We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.

We hope that you and your family are safe and healthy.

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

holiday spending

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MORTGAGE DEFERRAL CANADA IS ENDING: 3 KILLER WAYS TO DEAL WITH COVID-19 RELATED MONEY PROBLEMS

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting. We hope that you and your family are safe and healthy.

Mortgage deferral Canada introduction

The bulk of the home mortgage deferral Canada that banks have given to Canadians was approved in March and April. This was the time when the COVID-19 pandemic began taking a financial toll on the country with non-essential businesses shuttered and millions unemployed or seeing their earnings take a deep cut.

The Office of the Superintendent of Financial Institutions (OSFI) proposed actions planned to support federally regulated lenders to make sure that they would not experience problems due to the mortgage deferrals provided to help Canadians. The OSFI mortgage deferral help it provided to the lending institutions enhanced the security of the Canadian economic situation and monetary system when faced with obstacles postured by the coronavirus.

The mortgage deferrals are slowly coming to an end. This Brandon’s Blog discusses what you can do if you fear what your personal fallout will be when the mortgage deferrals end.

How did mortgage deferral Canada work for the borrower?

As of July 30, there were approximately $170 billion in mortgage deferments for the biggest 6 banks. The majority were established to unwind by September 30. Mortgage deferral Canada arrangements between Canadians and their financial institutions were truly an individual conversation. The federal government provided a wide overview, yet the specific arrangements between each borrower and lender were established individually as each case required. The significant style was that if a customer was struggling with financial difficulty because of the COVID-19 lockdown, mortgage payments would be deferred for an agreed-on, short-term amount of time.

Currently, these mortgage deferral Canada setups are slowly ending. The chartered banks are reporting that currently, for those whose deferments have ended, 80% to 90% are current in their payments. That means 10% to 20% of people who had a mortgage deferral Canada deal currently cannot maintain their mortgage payments.

How did mortgage deferral Canada work for the lenders?

OSFI told the federally regulated lending institutions and mortgage insurers they can deal with home mortgage financings for which a payment deferment is approved as being current. Payment deferments of as much as 6 months approved prior to August 31 and repayment deferments of up to 3 months approved after August 30 and on or before September 30 that it need not categorize such mortgages as impaired or revamped.

In April OSFI advised lenders that in circumstances where banks provide home mortgage repayment deferrals, those mortgages can continue to be dealt with as performing loans under the . Consequently, OSFI told the banks they did not need to increase their capital resource requirements based upon the home mortgage deferral Canada arrangements they provided. OSFI additionally told the loan providers that it would not assess such mortgage portfolios as having a larger credit risk.

For all federally regulated banks, OSFI specified that it is prepared to use flexibility for any that might need additional time to satisfy upcoming due dates for filing regulatory returns, on a case-by-case basis.

Where mortgages need to be insured due to being high ratio, there are insurance coverage costs that the lending institutions need to make to the insurer each month. OSFI likewise aided the banks and insurers, such as CMHC, by stating that it will not place the lenders or insurers offside when the monthly insurance premiums were not being paid as a result of the mortgage deferral Canada arrangements. OSFI also stated that deferments will not boost capital charges on unpaid premiums. OSFI told insurance providers that they can deal with a mortgage for which a deferment is granted as performing.

So with these OSFI initiatives, lenders can make mortgage deferral Canada happen and both lenders and mortgage insurance providers can treat the mortgages under these deferred home mortgage settlements and mortgage insurance payments, as not being in default.

Mortgage deferral Canada is ending – what can you do if you believe it will cause financial problems for you

OSFI has just stated that any type of mortgage deferral Canada plans past September 30, 2020, will now be subject to OSFI’s typical policies. People who need to start making their mortgage payments once again, but whose economic situation has not improved since the pandemic hit, are scared. I have read some “what to do” articles if you think you will have trouble making your normal mortgage payments. In my view, several have actually missed the mark. Some I have checked out start explaining how a consumer proposal or bankruptcy can help you.

Just so you know, a consumer proposal or bankruptcy cannot help you with the end of your mortgage deferral Canada. The reason it cannot help you is that your mortgage is a secured debt. Your mortgagee is a secured creditor, assuming its mortgage security is valid. A consumer proposal or bankruptcy is a method of dealing with your unsecured creditors. The mortgagee has rights if you default on your mortgage whether or not you are involved in a formal insolvency process. If you have too much debt and too little income to service all that debt, you may very well need to consider an insolvency filing. But it is not a direct answer to your mortgage deferral Canada ending.

mortgage deferral canada
mortgage deferral canada

So in order, here are my 3 top recommendations of what you could do when your mortgage deferral Canada deal with your lender ends and you believe you will be in financial trouble.

  1. Take a critical look at your family household budget

I cannot emphasize enough just how essential the household budget is to your financial security. A spending plan is a listing of all income and your families’ costs. Do it on a monthly basis. It enables you to prepare how you need to spend your money and if there is anything left over each month for savings for an emergency fund or for investment. Rather than cash just flying out of your pocketbook, you make intentional choices on where you want your cash to go. You’ll never need to doubt at the end of the month where your money went or search for a hole in your wallet.

Numerous Canadians panic every month regarding where the cash will come from to pay their bills. A household budget will give you the direction you need. That direction should give you comfort. It reveals to you just how much you make and also what your costs are. If need be you can decrease unneeded costs or possibly tackle extra work to live within a well-balanced budget plan. No extra panicking at the end of the month.

So if you have a household budget that you follow, look at it carefully. If you don’t’ have one, prepare it immediately. Look at the last 6 months and see what your average monthly income has been and what your average monthly expenses were. List them all out line by line for both income and expenses. Then adjust any line that you believe will change in the coming months. Adding your normal monthly mortgage payment is one of those things that will need to be added.

Then take a look at it and see if you are spending less or more than you earn. If you are spending more, then you need to cut back on certain expenses, increase your income, or a combination of both. Take a critical look and slash any expenses that you can. Then see what that looks like.

If you feel that making your normal monthly mortgage payment will not be a problem, then terrific. Just follow your family budget and each month compare your actual to budget. Make any adjustments you need to along the way. However, keep spending less than you earn.

If your budget shows that you are going to have trouble making your normal monthly mortgage payment, then go on to my next step 2.

  1. Speak to your banker

Get ahead of it. Contact your lender. Let them know that you have a current family budget and it shows that you may need added help when your mortgage deferral Canada deal ends. Your banker will be impressed that you:

  • have a current budget that you are tracking; and
  • you are being proactive and not causing the banker to chase you because you came up on the computer screen as a delinquent mortgagor.

That already makes you the most liked person in the 10% to 20% of people who are experiencing problems paying their mortgage. Hopefully, your lender can work something out for you that will help you.

  1. Call me

If your budget shows that you do not have enough family income to pay all the families’ debts on a monthly basis and your lender cannot do anything to help you, then call me. I will take a critical look at your family budget and get more personal financial details from you. After reviewing all of it, I will give you my best recommendations to meet your unique financial challenges. Keep in mind that this is not your fault. The COVID-19 pandemic and the resulting shutdown of the Canadian economy continues to cause problems for the majority of Canadians.

Mention this blog, and I will not charge you a penny for this help. I truly want you to succeed.

Mortgage deferral Canada summary

I hope you have found this mortgage deferral Canada Brandon’s Blog interesting and helpful. The Ira Smith Team family hopes that you and your family members are remaining secure, healthy and well-balanced. Our hearts go out to every person that has been affected either via misfortune or inconvenience.

We all must help each other to stop the spread of the coronavirus. Social distancing and self-quarantining are sacrifices that are not optional. Families are literally separated from each other. We look forward to the time when life can return to something near to typical and we can all be together once again.

Ira Smith Trustee & Receiver Inc. has constantly used clean, safe and secure ways in our professional firm and we continue to do so.

Income, revenue and cash flow shortages are critical issues facing entrepreneurs, their companies and individual Canadians. This is especially true these days.

If anyone needs our assistance for debt relief Canada COVID-19, or you just need some answers for questions that are bothering you, feel confident that Ira or Brandon can still assist you. Telephone consultations and/or virtual conferences are readily available for anyone feeling the need to discuss their personal or company situation.

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting. We hope that you and your family are safe and healthy.

mortgage deferral canada
mortgage deferral canada
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IS CANADA IN A RECESSION: OUR 9 EASY STEPS TO SOLVE COVID-19 INDUCED FINANCIAL PROBLEMS

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.
If you would prefer to listen to the audio version of this is Canada in a recession Brandon’s Blog, please scroll to the very bottom and click on the podcast.
is canada in a recession
is canada in a recession
Is Canada in a recession introduction

One question that people are searching online for answers is: Is Canada in a recession? Last month I wrote a blog titled Canada in recession: Will the economy fall into a great depression? In that blog, I described the views of Nouriel Roubini is a world-known economist and a professor of economics at New York University’s Stern School of Business. He has some stark current thoughts on just how bad the Canadian economy can go. I invite you to again read that blog to see what his thoughts are.

That blog accepted the signals that Canada is in a recession. The purpose of this Brandon’s Blog is to take a step back and answer the question: Is Canada in a recession?

Is Canada in a recession? What is a recession?

To begin to answer is Canada in a recession, we first need to understand what a recession is.

A recession is a short-term period of overall economic decline. Economies go via cycles, which implies there are periods of growth as well as durations of decline. The COVID-19 pandemic has actually thrust our economic climate into a decrease, a lot like just how a considerable, unanticipated expense can upend your own household budget plan.

The federal government identifies when our economy has actually entered a recession and when it has left by measuring key economic signals. These signs are sensitive to what happens locally and internationally. They include, for circumstances, declines in various industry sectors, agriculture or manufacturing, and also disruptions to international trade.

The C.D. Howe council defines a recession as a pronounced, persistent, and pervasive decline in total economic activity. It considers both GDP and employment as its major rulers. Is Canada in a recession? It stated that Canada is formally in an economic crisis and recession.

What did some economists forecast about is Canada in a recession

Economists were checking out financial indicators of the health of the Canadian economy near the end of 2019 and very early in 2020 to try and forecast the future. So, what were economists saying about is Canada in a recession?

What some economic experts were predicting prior to the coronavirus pandemic was that they really did not assume we would see one this year. However, on the other hand, last October David Rosenberg, chief economist at Gluskin Sheff & Associates, assumed there would certainly be an 80% chance of an economic downturn coming to Canada this year.

The complete level of its economic impact will certainly not be known for some time. It seems clear to economists that the United States will certainly go into an economic downturn in 2020 if it hasn’t already. Since 1970, Canada has experienced economic crises at roughly the very same time as the USA, showing the interconnectedness of the two economies. So it appears that all of North America is in a recession.

How bad will Canada’s COVID-19 recession be?

Canada is only now seeing the tip of the economic iceberg from COVID-19. It is clear that its economic effect will be like nothing seen since the Great Depression. Economists state the overview for employment and the economic climate will be stark. The only silver lining may be that the deepness and suddenness of the decrease might offer hope for a fast rebound.

As I previously reported, Dr. Roubini thinks there are pressures that not only would make is Canada in a recession, but it could go into a depression! His view is that there is going to be a U-shape recuperation due to the fact that this is an international shock. Both households and businesses will need to invest less and save more. Precautionary savings are most likely to go higher. Income is most likely to be lower. This will convert into much less business capital spending. He claims there will certainly be a worldwide investment slump due to a global savings excess.

How long will this is Canada in a recession last?

The rapid spread of coronavirus led to unprecedented personal, the social, and economic impact that caught the world largely unprepared. Although the government of Canada responded decisively with programs and grants to lessen the economic devastation, the recovery period remains to be seen. And by most indicators, this downturn is looking like a long and steep uphill climb.

If we’re looking specifically at negative growth, then economists anticipate that this trend won’t continue for long. There are 2 reasons:

  • Lockdown mandated by the government. Whatever was closed down by government mandate which takes place much faster than a shutdown due to economic issues.
  • Government bailouts. The government is supporting the whole economy. Yes, we’ll need to pay back the government in taxes eventually yet that can only occur when the economy is recovering. This suggests that economic growth will certainly be slower.

Parliament budget officer Yves Giroux believes that the Canadian deficit this year will strike $256 billion, consisting of a 6.8% decline in economic development, the most awful showing since the 1981-1982 economic recession.

Is Canada in a recession? Are there any predictors of a recession recovery?

Indicators like stagnant salaries, low home financial savings, as well as high consumer financial debt, don’t predict economic crises, yet they do forecast just how challenging the healing will be when an economic downturn hits. Below are some signs and symptoms that can indicate a recession:

  • the surge in joblessness;
  • an increase in bankruptcies;
  • defaults or repossessions;
  • the falling rate of interest;
  • reduced consumer spending;
  • decreased consumer confidence; and
  • falling asset prices.

A healthy and balanced labour market as well as a turnaround in the housing sector helped the Canadian economy expand at a modest rate in 2019. This supports the contention that in order to come out of an economic downturn, companies and consumers need to feel confident to invest and spend.

What can you do when is Canada in a recession

If you believe the answer to the question is Canada in a recession is yes, after that there are several things that you can do. I have written on these problems before under several headings such as financial literacy, household debt and the benefits of having an emergency savings fund on hand in case of, well, an emergency situation.

You can’t regulate the country’s economic climate, yet you can control your very own. Every person requires to take a look at:

  • Using this time to examine your overall household budget and figure out some practical yet difficult goals for your cash.
  • This is the time to live according to your emergency situation budget and look at what your typical spending plan will certainly resemble once you are back to work.
  • Consider your typical budget based upon what it looked like before COVID-19 hit and the insights you’ve gotten around your spending behaviours since you’re living more frugally.
  • Making a plan to eliminate credit card debt. Try to find a no or extremely reduced rate of interest balance transfer charge card to transfer the balance to if you have some credit card financial debt lingering around.
  • A strategy to include a savings element in your family budget will aid to shield you when you face a reduction or a full loss of your earnings.
  • Dealing with the pandemic as a wake-up call to recession-proof your funds. If your income was impacted by the pandemic, what length of time could you have survived had the government, banks and other financial institutions and different corporations not actioned in with procedures to get cash back into your wallet through deferrals?
  • Can you work at a couple of jobs that amount to providing you with a full-time revenue? This might first take some efficient networking before you can discover the appropriate mix of work.
  • Have an emergency fund all set up. It will go a long way to helping you weather a recession.
  • No matter your current scenario, the very best way to recession-proof you and your family is with an emergency savings account.

In the post-COVID years, there is a likelihood that lenders will be stingier with exactly how much cash they loan to customers. So guarantee that your budget permits constant debt repayment when you resume a stable income that resembles your pre-coronavirus income level.

That is exactly why it is crucial to focus on your financial situation now and take steps to guarantee your long-term personal financial stability.

Is Canada in a recession summary

It certainly feels that way. I hope you found this is Canada in a recession Brandon’s Blog informative. The Ira Smith Team family hopes that you and your family members are remaining secure, healthy and well-balanced. Our hearts go out to every person that has been affected either via misfortune or inconvenience.

We all must help each other to stop the spread of the coronavirus. Social distancing and self-quarantining are sacrifices that are not optional. Families are literally separated from each other. We look forward to the time when life can return to something near to typical and we can all be together once again.

Ira Smith Trustee & Receiver Inc. has constantly used clean, safe and secure ways in our professional firm and we continue to do so.

Income, revenue and cash flow shortages are critical issues facing entrepreneurs, their companies and individual Canadians. This is especially true these days.

If anyone needs our assistance for debt relief Canada COVID-19, or you just need some answers for questions that are bothering you, feel confident that Ira or Brandon can still assist you. Telephone consultations and/or virtual conferences are readily available for anyone feeling the need to discuss their personal or company situation.

The Ira Smith Trustee Team is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

 

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HOW TO GET OUT OF DEBT FAST: 7 TIPS YOU CAN START USING IMMEDIATELY

how to get out of debt fastIf you would prefer to listen to the audio version of this how to get out of debt fast Brandon’s Blog, please scroll to the bottom of the page and click on the podcast.

Introduction

I meet with people every day who have too much debt. There are some common themes. So this Brandon’s Blog is taking those common themes to give you seven quick ways to find extra money so you can know how to get out of debt fast. By fast, I don’t mean immediately. I mean a lot faster than you can do on your own.

It is not your fault that you have not been able to get out of debt yet. The reason is that you have never been shown these tips before. Or, if you do know some or all of them, you have not been properly motivated yet to start using them.

So I am writing this Brandon’s Blog as much to motivate as to provide information.

How do I get myself out of debt?

The concepts I am going to discuss have taught many people how to get out of debt fast. These suggestions will certainly equip you to discover cash in your budget plan and also get yourself out of debt.

I’ll then offer you three more steps to entirely repay your debt. It will aid you with benefit approaches to facing those greatest difficulties in being debt-free. Utilizing these methods to repay your debt will put you on the path to building your credit rating score back up.

Warning on how to be debt-free fast

I’ve got to put a little warning here. If you are trying to get debt-free in a fairly brief time, whether you’ve got five thousand or fifty thousand of debt, it’s going to involve some difficult decisions.

You need to dedicate yourself fully to taking these steps I’m sharing with you and to stick with it for your debt-free future. You’re probably better off just clicking out to enjoy some pet cat videos if you’re not ready to make that commitment!

How can I reduce my debt quickly?

Step 1 – Here is my first step to becoming debt free. This one is crucial before anything else. You need to get some quiet time and make you’re becoming debt-free objectives real. Making those goals real does not suggest simply thinking them out for 5 seconds.

What will you do daily when you’re debt-free? What will it feel like? How will your life be different? Write out this story on a piece of paper. Then start making you how to get out of debt fast plan.

Step 2 – Just how much do you intend to pay off in three months? In six months? You’ll make use of the actions explained below to create these objectives. The suggestion is that you have some shorter-term goals of how much to save and also just how much debt to repay.

These shorter-term goals need to feed into your longer-term 1-year goal. They’re easier to get to than that big goal. They also will inspire you to keep going when you reach them. With your goals done, it’s time to prepare your month-to-month budget. It is a plan of where your cash comes in from and where your money is going.

You require to take the time to write down every source of revenue you have and also how much from each one. You also require to recognize and write down where the money is going. As soon as you have done that, your very first big money-saver is going to be to plan spending challenges.

Now I know I just lost half of you. This isn’t a budgeting blog per se. You need to develop your budget on your own. I have written other blogs on the topic of budgeting which you can read here.

Step 3 – I like these fast little bursts of saving cash. As well, they’re going to disclose a lot concerning your spending. The way a spending challenge functions is you take one item from your budget plan, something you have control over like purchasing clothing, eating in restaurants or other shopping.

You’re going to challenge yourself to reduce that spending in half or eliminate it out entirely over the next 2 months. I am not talking about going cold turkey and not spending anything. I am speaking about a short-term challenge of a couple of months and also on 1 or 2 spending items at a time.

These spending challenges work on so many levels and I guarantee you’ll love them as much as I do. By only taking one or two items from your budget, you’re not trying to skimp and save every penny.

You can still have fun. You’re just experimenting cutting back on a few things at a time. Besides saving a lot of money, this is going to show you what you don’t care about in your budget. Even after the spending challenge, you’ll find that some of these things don’t matter that much and you’ll keep saving money.

I know somebody that used this spending challenge concept for just 6 months and saved a great deal of cash. They used that cash to pay down debt! These spending challenges are super-easy to maintain since they are only for 2 months. You’re not trying to go a year without spending. It is eight short weeks so you’ll always see the finish line.

What’s great is that eight weeks is right around the time it takes to build new habits and break old ones. Even if you go back to spending a little more after the challenge, those new habits are going to drive you and help you save easier. Maintaining this new behaviour is one of the keys for how to get out of debt fast.

How to get out of debt on a low income

Step 4 – Next is to do a complete decluttering. Don’t stress, I guarantee it’s much easier than it seems. A clutter clean means going room-to-room in your apartment, condo or house and taking out every little thing you don’t need. Particularly those things you don’t use.

This means the treadmill you never used, those movies you never see, also the furniture you never rest on. Anything that isn’t being used or making your life better, offer it for sale online or where ever you can market it.

Old clothes can go to a consignment shop, videos, as well as books to a half-price book store, to sell. Not only are you making a little money here to help pay off your financial debts, however, but you’re also ridding yourself of what you do not make use of.

It could be a challenging reality to face the fact that you may have squandered your cash getting some of these things. But it is that wakeup call we all need to keep us from wasting more of our money on even more stuff.

Step 5 – This is going to be another tough decision but its one that a lot of people need to make. That is taking a cold, hard look at how you’re getting around every day.

I like watching or listening to shows and reading about people talking about how much debt they have. What always amazes me about these, and I see this probably 90% of the time, is how many people have new car payments they can’t afford. Seriously, people just don’t seem to see how a monthly $800 new car payment is wrecking their budget!

Besides the payment itself, insurance and registration are going to be more on a new car. Now I’m not saying you can’t have nice things or that you should never buy a new car. Perhaps a demo or a car in good condition that just came off a 3-year lease would be more economical and save you money.

Enjoy your money! We don’t have a lot of time on this earth and you have to enjoy it. But you can’t enjoy life if you’re constantly stressed out from the burden of that debt. So you need to take a look at what’s parked in the driveway.

If it’s a new car and you have more than $20,000 in debt, sell that sucker or trade it in. Get a used car that’s going to save you a few hundred a month and use it to pay down your debt!

Step 6 – This one is going to be to fight lifestyle creep. Lifestyle creep is how your spending seems to rise along with your income so you’re always stuck in that paycheque-to-paycheque money trap.

How is it that we get tax refunds or a raise but never have enough to save? You work overtime but the money just seems to evaporate into thin air. It’s that problem of lifestyle creep. Our budget always seems to grow to eat up whatever income there is.

Fighting lifestyle creep just means writing out that budget, knowing how much you’re spending and then making that effort to not spend more just because you’ve got a little extra. The best way I’ve found to do this is to assign all your extra money to that debt payoff plan or a retirement investing account.

By having a place for that extra money, it stops being extra and that temptation to fill the gap with extra spending goes away. It might not seem like it will save much but you would be surprised how quickly regular smaller amounts will add up.

Step 7 – My last money-saving trick before we get to those 3 debt repayment methods is going to be to freeze your credit cards. As I have stated lots of times in the past, you simply do not get that same mental and emotional feeling when you use a credit card that you get when you pay with cash.

I’m not saying to cut up your cards. I have a credit card I use for business spending and personal spending. It is also helpful to have one for emergencies if you don’t have a cash emergency fund. Freezing your credit cards is going to still keep that option open yet it makes you reconsider your spending on almost every item.

Simply put, those 7 money-saving hacks are going to provide you with thousands to plan with to pay off debt quickly. None of them are awfully hard and I assure you they will help put you back on the right track.

How can I pay off 5000 in debt fast?

Now I want to share three more debt strategies. These are ways to pay off your debt and restructuring your debt to get it paid off as fast as possible. You need to know how to prioritize your debt payoff. It is amazing how just a little tweak in how you pay your bills can mean a huge difference in getting debt-free.

There are two debt payoff strategies that I’ve talked about in Brandon’s Blog quite a bit: (i) the avalanche method; and (ii) the debt snowball method. Picking one of these two strategies is going to help you save money on interest and motivate you when budgeting gets tough. I’ve detailed these two strategies in other blogs like the one you can read by clicking here. I’ll give you the general outline here. These two methods are very common as to how to get out of debt fast.

In the debt avalanche method, you list out your debts in order of interest rate from the highest rate to the lowest. You still have to make minimum payments each month but you use any extra money, the money we found from those seven savings strategies before, to make extra payments on those with the highest rate of interest.

This method makes the most sense financially because by paying off those high-rate debts first, you’re saving money. A lot of times, these high-rate debts are going to be the highest payments as well so paying them off faster is going to free up a lot of room in your budget.

That other method, the debt snowball method, means listing your debts by order of amount owed from smallest to largest. Here instead of making those extra payments to the highest-rate debt, you’re paying more on the debts with the lowest amount owed. That means you’re going to see these small debts fall off your list faster.

And while that avalanche method might save the most money, that snowball method is hugely motivating. You’re going to see those debts fall off your list fast and that’s going to help you keep going with your budget and saving money.

So think carefully about the debt snowball vs debt avalanche methods and pick the one you think will make you feel the best. But even if you’re not following a specific debt payoff strategy, I want you to try just putting an extra $15 a month towards paying off your debt. Do more if you can but even this small amount is going to go a long way and save you a lot of money.

How to pay off credit card debt

The third strategy comes after picking one of the two debt payoff strategies I just mentioned. This third strategy is to get your interest rates lowered on the debt you have. TransUnion Canada has said that in 2018, the average Canadian’s non-mortgage debt stood at $29,312 per person, including an average credit card balance of $4,154. With interest rates at a minimum of 19% per annum, that means you’re paying $166.16 a month just for the minimum monthly payment.

Using the average credit card balance, at $166.16, it would take you over 10 years to pay off $4,154. If the entire average non-mortgage debt of $29,312 is credit card debt, then the minimum monthly payment would be $1,172.48. It would take 17.4 years to pay off the balance. That’s going to make it impossible to get out ahead so we’re going to focus first on these cards to lower our rates.

The first thing you can do is just call the credit card company and ask for a six-month introductory rate. Tell them you’re thinking about a balance transfer to a zero percent rate you are being offered by another credit card issuer, but you’d like to stick with them if they’ll match the offer. A lot of times, this is all it takes.

Getting a six-month introductory rate on that average balance means you’ll save almost $1,000 on a call that takes all of five minutes to make. If your credit card company won’t lower your rate, then start looking for those introductory rate cards and make a balance transfer. Either way, you’re going to be saving money that you can put into faster debt payoff.

Another option is going to be to just consolidate your debt into a personal loan. This means taking out a signature loan from a bank to pay off those high-rate cards. IF you still have a decent credit score and a job, then hopefully you can qualify for a personal loan. With a personal loan which probably has an interest rate 10% lower than the credit card rate, you’ll save hundreds of dollars, and you’ll get a fixed payment and a payoff date instead of that hamster wheel of credit cards.

How to get out of debt on a low income

Now you’ve got 7 financial concepts and 2 debt payoff techniques to help you pay down your debt. But I want to talk to you about one more action that most people miss out on. It is essential to creating your financial future. The problem is that so many people living paycheque to paycheque are only looking at their finances from one side of the equation. They get into debt or are trying to get out ahead and they immediately go to budgeting and saving money. But how realistic is that when your budget is already cut to the bone?

They claim you cannot squeeze blood from a rock and you cannot save money from a budget that is barely sufficient to make ends meet as it is. Instead, what I want you to do is to look at this from the other side of the formula. Do not check out it simply from the side of saving money but making even more cash also.

This doesn’t mean getting a 2nd job. It can be as easy as investing simply five or 10 hours a week in a side hustle, making that additional $200 a week to help pay for your debt much faster. You’re not only going to be paying down debt. You likewise are going to be happier because every little thing isn’t depending upon skimping and cutting your spending plan to live like a miser.

Doing all this, you’re going to be impressed at exactly how quick you repay your debt. When you get out from under that constant burden of debt I want you to feel it. It is a great sensation.

Summary

I hope you found this Brandon’s Blog on how to get out of debt fast and my tips to pay off your debt helpful. Sometimes though things are too far gone and more drastic and immediate triage action is required.

Do you have too much debt? Are you in need of financial restructuring? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too much personal debt. You are worried because you are facing significant financial challenges.

It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to get you out of your debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

The stress placed upon you is huge. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. The way we take the load off of your shoulders and devise a debt settlement plan, we know that we can help you.

We know that people facing financial problems need realistic lifeline. There is no “one solution fits all” approach with the Ira Smith Team. That is why we can develop a restructuring process as unique as the financial problems and pain you are facing. If any of this sounds familiar to you and you are serious in finding a solution, contact the Ira Smith Trustee & Receiver Inc. team today.

Call us now for a free consultation. We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.

 

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Brandon Blog Post

BUY NOTHING DAY CANADA: WILL IT HAVE ANY EFFECT ON HOLIDAY SHOPPING

Introduction

Buy Nothing Day Canada is part of an international day of protest against consumerism. In North America, it takes place on the Friday after U.S. Thanksgiving. That is the same day as Black Friday. Elsewhere, it is held on the last Saturday in November.

It is a Canadian invention. Founded in Vancouver by creator Ted Dave in 1992 it was subsequently advertised by Adbusters magazine, based in Canada.

In this Brandon’s Blog, I discuss what effect, if any, Buy Nothing Day Canada has on Black Friday, Cyber Monday and holiday shopping in general. I also provide some tips on how not to go deep into debt from holiday spending.

What is the purpose of Buy Nothing Day Canada?

Buy Nothing Day Canada and worldwide, it is meant as a day for society to take a look at the problem of over-consumption. In 2000, Adbusters tried to purchase advertising time on television to promote Buy Nothing Day Canada and elsewhere were rejected marketing time by nearly all significant TV networks besides CNN.

Notwithstanding, it has become a grassroots movement. Campaigns started showing up in the USA, the United Kingdom, Israel, Austria, Germany, New Zealand, Japan, the Netherlands, France, Norway and Sweden. Currently, it is held in about 65 countries.

Doubters of the day feel that it merely:

  • shifts people’s buying habits to the next day; or
  • appeals really only to those people who rebel against over-consumerism all year through.

Is it effective?

Based on a recent study, I think Buy Nothing Day Canada is meaningful only to those who already practise a lifestyle against over-consumerism. This study says that Canadians will spend approximately$1,593 per person for the 2019 holiday season. This is a little up from $1,563 (or 1.9 percent) in 2018, according to the same report.

For many years now, there have been reports that say Canadians are over their heads in debt. They are living paycheque to paycheque. On average, Canadian adults are $200 away from financial disaster. I have written several blogs on the topic of Canadian households in debt.

So, from what I can tell, this movement has no effect at all on holiday shoppers.

Must I resort to a buy nothing Christmas?

Black Friday and Cyber Monday are over. You may feel you overdid it on your holiday spending last year. Perhaps it put you in a bad place that took a lot of time to get out of. You don’t wish to repeat it going into 2020.

So I have created a holiday spending in Canada tips list to try to assist with your budgeting for the holidays. Ideally, by following my suggestions, you won’t get in the brand-new year with more financial debt that you cannot handle. You will have avoided one of the most typical holiday spending blunders.

By following my tips, you can buy gifts and remain financially healthy without resorting to shopping abstinence.

But first, it all starts with a budget

You don’t need to adhere to a Buy Nothing Day Canada philosophy, but you do have to live within your means. So, the overall key is proper budgeting for holiday spending. It is so vital that you think out your holiday budget before you start spending.

I believe there are 3 major classifications to your Xmas holiday spending plan:

  1. presents;
  2. food and beverage in your home if you are hosting; and
  3. tree and decors.

To begin setting your holiday budget plan, you need to establish 3 separate mini-budgets; one for each item. For gifts, the first thing is to detail out everybody you feel you would like to buy a gift for. After that reduce the list to everyone you really must buy a present for. You may not be able to manage your “desires”, but only your “needs”. The various other classifications will be easier to establish.

Now, check out your regular monthly earnings and expenses as well as any kind of savings you might have designated for holiday costs. This will help you to understand just how much you can afford to spend without going into holiday spending financial debt. Simply figure out the amount you can safely spend.

With that total, you should estimate your spend in the food and drink and tree and decors groups. What you have leftover in total will be your gift spending plan. Nothing is set in stone. If you feel you require to readjust the allowances among the 3 categories, go right ahead. Eventually, you will be left with your present total spending plan.

Now spread out the total gift budget among the people. Your specific amounts need to add up to a number not higher than the total you established as your total gift spending amount. With the budgeting worksheets finalized, it is now time to go shopping!

Holiday spending in Canada tips list

Purchase with objectives – You have determined just how much you can safely spend on each person. Get the best gift possible for each that satisfies your spending budget. Stick to the financial limitations of your gifts. You can now spend more time focussing on the appropriateness of the gift within your budget limitations.

Only spend cash don’t buy on plastic – You will be lured to buy with your charge cards. Using plastic will cause you to overspend due to the fact that you will not feel the purchase. To truly feel it, you must only use cash. When you feel it, you don’t spend beyond your means. You will also stay clear of the nasty shock in January since you won’t get an unmanageable credit card statement. You will feel terrific in both December and January.

Think of a family present to conserve cash – If you feel you will not be able to afford specific gifts, think of people in the very same family and search for a household present. A gift card for the household to go see a movie or a family pass for admission to a tourist site may turn out to be cheaper than the overall cost of separate gifts. Or one thing for their home that you feel all family members will take pleasure in. Look at that option. There are many opportunities for a group gift.

Give an experience, not simply your money – Do not think that the only gift that counts is one that sets you back the money. You have numerous abilities and talents. Probably one or more would certainly make an excellent present. If you cannot think of anything special you can give of yourself to that special someone that would make a wonderful present, how about your time? Think to babysit for nieces or nephews. How about helping out an ageing relative because they can’t go out a lot on their own but have appointments or tasks to get. These can all count as useful presents that won’t cost you anything or much in any way. Your time and enjoying each other’s company are much more valuable than any gift you would buy in the mall or online.

Think outside the gift box – If you do not have a box of ornaments from years past to use, think artistically. The accessories bought at a Dollar Store will look just as good on your tree as ones bought at a more expensive specialty shop. Or, use your own imagination to make your own. If you aren’t sure where to start, look online. There are many video clips to reveal step-by-step how to make terrific looking ornaments that don’t cost too much for materials. Your creativity and labour, of course, is cost-free.

Summary

I hope you found this Brandon’s Blog on Buy Nothing Day Canada and my holiday spending tips useful. Are you in need of financial restructuring? The financial restructuring process is complex. The Ira Smith Team understands how to do a complex restructuring. However, more importantly, we understand the needs of the entrepreneur or the person who has too much personal debt. You are worried because you are facing significant financial challenges.

It is not your fault that you are in this situation. You have been only shown the old ways that do not work anymore. The Ira Smith Team uses new modern ways to get you out of your debt troubles while avoiding bankruptcy. We can get you debt relief freedom.

The stress placed upon you is huge. We understand your pain points. We look at your entire situation and devise a strategy that is as unique as you and your problems; financial and emotional. The way we take the load off of your shoulders and devise a debt settlement plan, we know that we can help you.

We know that people facing financial problems need realistic lifeline. There is no “one solution fits all” approach with the Ira Smith Team. That is why we can develop a restructuring process as unique as the financial problems and pain you are facing. If any of this sounds familiar to you and you are serious in finding a solution, contact the Ira Smith Trustee & Receiver Inc. team today.

Call us now for a free consultation. We will get you or your company back on the road to healthy stress-free operations and recover from the pain points in your life, Starting Over, Starting Now.

buy nothing day canada

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FINANCIAL LITERACY: FINANCIAL LITERACY FOR HIGH SCHOOL STUDENTS IN ONTARIO

financial literacyIf you would prefer to listen to the audio version of this financial literacy Brandon’s Blog, please scroll to the bottom and click on the podcast

Introduction

When I was in high school, I was very fortunate. I thankfully took two accounting courses, in addition to the normal reading, writing and arithmetic. It was in accounting, that I received some financial literacy education. Anyone who did not take accounting did not get any exposure to basic financial education.

When Ontario grade 10 students go back to school next week, their course curriculum is now amended so that a financial literacy course is mandatory. The purpose of this Brandon’s Blog is to discuss why financial literacy is important and what the new course will offer these students.

What is financial literacy and why is it important?

Financial literacy is the education, learning and understanding of different financial subjects related to handling personal money, budgeting and investing. This topic focuses on the capability to manage individual finance matters in a reliable way.

With such education, people gain an understanding of making suitable decisions about their personal money. Without a basic financial understanding, how can people develop their financial skills? Where will you learn about things such as investing, insurance, budgeting, saving, retired life and income tax concepts?

Why is financial literacy important for students?

The typical high school curriculum of education and learning is extremely important. People generally do not get specialist education until they are in a career program. To become a medical professional, an auto mechanic or a web developer requires specialist education for career success. The one area of education that is generally missing to equip our youth to be able to make smart economic decisions in their lives is proper financial education.

Our society values money and entrepreneurship, yet for some reason, our institutions appear to assume you will somehow just know or pick up the proper financial skills to succeed. Perhaps if there was a mandatory financial education system in place we would see the gap between the rich and poor lessen. Teaching basic financial concepts and skills can go a long way to make sure that people can learn good financial habits and keep their heads above water.

How do you get financial literacy?

The Ontario curriculum for Grade 10 career studies for the first time this school year will include a section on financial literacy. The provincial government believes that it is important for students to understand budgeting and financial management. I applaud this effort.

The education system’s overall expectation is that students will get an understanding of responsible monitoring of financial resources and of services readily available to support their financial proficiency as they prepare for post-secondary life. This is an excellent thing.

I remember my first day at university. Day one all the banks have tables to entice students to sign up for a new credit card. Young adults who have student loans and have never been exposed to financial management courses will now have the ability to take on more debt. Not a good thing.

The specific expectations are that students will:

  • Learn the principles of financial responsibility
  • Evaluate the advantages of a variety of financial savings options
  • Explore financial planning tools available with banks and other sources

What are the three main components of financial literacy?

The three main components that the new financial literacy piece to career studies program will cover are:

  • Financial responsibility
    • setup and follow a budget
    • sensibly handling bill payments and using credit wisely understanding the difference between
    • knowing the difference between a bank and a credit union
    • managing their very own bank accounts
    • defending themselves against monetary scams and fraud
  • Financial savings choices
    • types of interest-bearing accounts and their associated rate of interest
    • tax-free savings accounts (TFSAs)
    • registered retirement savings plans (RRSPs)
  • Different kinds of borrowing and their advantages and disadvantages
    • federal government student loans
    • provincial government student financings, such as those available with the Ontario Student Assistance Program (OSAP)
    • loans or bursaries from their local cities and towns
    • personal (unsecured) loans from a financial institution, be it a chartered bank or a credit union
    • lines of credit, credit card and overdraft products
    • recognizing the benefits and disadvantages of the numerous kinds of credit products
    • how the responsible use of a credit card can boost an individual’s credit score ranking
    • how improper use of the same credit card can hamper a person’s credit score ranking
    • that the proper use of bank loans can allow a person to pay for a costly item, such as a car or home
    • how the improper use of loans and excessive debt can lead to a poor credit rating, money troubles and even insolvency and bankruptcy
    • How borrowing from family or close friends can be advantageous, but how defaulting on repayment can negatively impact personal relationships

The teacher’s role

The teacher’s role will be to provide illustrations to drive home these points. In the context of spending and personal finance, the students will learn the difference between “needs” and “wants”. Teachers will ask the students to reflect on exactly how a person’s values will influence their wants or the ways in which they satisfy their needs. Students will learn what “living within your means” really means.

The teacher will lead a discussion on exactly how a person can do this successfully. Students will consider what the impact on a person will be from not paying expenses promptly and from using numerous credit cards.

Students will learn the benefits of beginning to save at a young age. They will be exposed to the advantages of then having a formal financial savings plan. All this will naturally lead to a realization that budgeting for both short-term objectives, such as purchasing clothes, differs from budgeting for long-term goals, such as buying and maintaining a car. Students will also learn about the different types of savings vehicles as well as debt products. They will also learn the proper use of debt.

In my view, the students will learn about the three most important parts of any financial literacy program: 1. proper budgeting techniques; 2. the importance of saving from an early age and the various savings vehicles available; and 3. debt and how to use it properly.

Summary

Hopefully, by exposing grade 10 students to these concepts, they will be motivated to keep learning and using proper financial management techniques. My hope is that more students will come out of high school and begin their post-secondary career, whatever that may be, by having better financial management skills and therefore fewer people will be able to stay clear of insolvency.

Prior to the new mandatory curriculum, the first exposure many people had to financial literacy education was as part of insolvency counselling, which means they already made mistakes before having a chance to learn the basics.

Are you on the edge of insolvency? Are bill collectors hounding you? Are you ducking all your phone calls to the point where your voicemail box is always full?

If so, you need to call me today. As a licensed insolvency trustee (formerly called a trustee in bankruptcy) we are the only professionals licensed, recognized as well as supervised by the federal government to give insolvency assistance. We are also the only authorized party in Canada to apply remedies under the Bankruptcy and Insolvency Act (Canada). I can definitely help you to choose what is best for you to free you from your financial debt issues.

Call the Ira Smith Team today so we can get free you from the stress, anxiety, and discomfort that your cash issues have created. With the distinct roadmap, we establish simply for you, we will without delay return you right into a healthy and balanced problem-free life, Starting Over Starting Now.

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Brandon Blog Post

CREDIT KARMA CA: CREDIT KARMA CANADA REVIEWS MILLENNIAL DEBT

credit karma ca

If you would rather listen to an audio version of this Credit Karma ca Brandon’s Blog, please scroll down and click on the podcast

Introduction

A brand-new Credit Karma ca report on millennial debt is out. Credit Karma Canada reports that its US company has performed a research survey of 1,041 millennial customers in the United States. As far as I can tell, they did not do a similar Canadian survey. However, I highly doubt that a Canadian millennials debt study would produce results drastically different than this survey.

The results reveal that virtually fifty percent (48%) of millennials have spent money they really did not actually have by going into debt. Why? To keep up with their pals.

Unfortunately, this is a significant increase from the findings of the 2018 survey (up from 39% of participants evaluated in 2018).

The nature of the millennial debt

Whether it’s on food or beverages, concerts or tattoos, they discovered that more and more millennials are spending beyond their means as a result of increasing public opinions. Greater than 2 in 5 millennials (44%) from the study stated they’re terrified to miss out on unique or once in-.a-lifetime experiences. Over one-third (36%) don’t want to look like an outsider.

Despite the fact that according to Credit Karma ca, almost 1 in 2 millennials have actually experienced fear of missing out (FOMO) driven debt, they’re mostly being silent about it. Of the participants that have actually entered into debt just to keep up with their mates, 80% claimed they would certainly keep the fact that they have gone into debt quiet and not tell friends or family.

Why do they wish to keep it secret? The survey shows that their reasons are ones of regret, guilt and embarrassment. They do not feel good about the debt they have incurred.

In 2014 their survey showed that millennials were most likely to use the money they really did not have for unique experiences, such as events, nightlife or holidays with their buddies. The new survey also looked at what experiences and purchases were triggering millennials to acquire FOMO debt.

According to their study this year, the #1 point driving millennials to spend beyond your means is food ( 47%), and then clothing (41%). As well as there are some millennials that have entered into FOMO fueled debt on much bigger and long-term items. Cars and trucks (15%), tattoos (11%) and real estate (9%). So out of all the millennials that go into debt, only 9% of millennials go into debt in order to acquire an asset that will grow in value over time, millennial home ownership. Another way of looking at it, 91% of millennials go into debt either for an experience that once it is over, it is over or for a tattoo!

Regardless of the product or experience, social networks play a huge component in driving the millennials’ need to spend beyond their means. The survey results show that 2 in 5 participants (40%) claimed they spent money on something a minimum of one time per year simply to publish that fact on social media sites.

Why do millennials really feel forced to spend too much?

According to the survey, the main reasons that millennials really feel pressured to go into debt to keep up with their close friends are:

  1. A concern of losing out on a unique or unbelievable experience 44%
  2. Worry of not being included in future outings 41%
  3. The concern of being treated like an outsider 36%
  4. Worry of being evaluated 25%
  5. Concern over losing close friends 24%

As you can see, 4 out of the top 5 responses has to do with what their friends may think. This makes sense. The majority of the things millennials go into debt for, such as vacations, concerts and restaurants, are things that you do with friends.

So what is the answer?

Obviously, no one can keep going into debt on an unlimited basis, especially when the reason is to keep up with others. I have some tips on how to deal with friends that either has more money than you or are willing to go deeper into debt than you. Or, at least are not concerned about their debt like you are.

Hang out together in ways that don’t force you to spend

Consider how you can invest in quality time but not your cash. Time spent with close friends and loved ones is an experience that can be valued over something that pushes you into debt. Those good times also last forever.

There is no need to be embarrassed about being not able to pay for an evening out or a costly getaway. As I pointed out previously, 80% of millennials that spend beyond their means hide it from others. However, by being straightforward with your buddies, you may be amazed to discover they really feel similar to you.

Speak to your pals concerning your worries and also do cost-free or much more modest cost things that let you hang out with each other.

Control your funds, do not allow it to control you

Eighty-one percent of participants stated they have a month-to-month budget that they attempt to stick to, which is wonderful. Nonetheless, the millenials that have such a plan seem to have a hard time keeping within it once they feel the peer pressure being applied.

If you’re amongst those that have a problem with budgeting, it can be handy to be a lot more conscious about the consequences of buying something. Take into consideration whether you can really afford it and if you didn’t buy it, will it really hurt your life. If not, then reevaluate, don’t buy it and build up some savings.

Another tip is to lock your debit and credit cards away and spend only cash. By using real cash and not plastic (or a debit card) you get a better sense of what you are spending on extras and how much you need to still have for essentials until the next paycheque. When cash is gone, it is gone. This behaviour will force you to think about how much money you need for essentials for the number of days until the next payday – which is a good thing.

Will this item or experience be important in 5 years?

In some cases, the answer is no, and sometimes it is yes. If the answer is yes, then slot it into your budget and see if you can afford it. Make sure your budget also has a line for savings. That way you will be building up a fund for investing. This fund can also be called upon in the event of a real emergency that could not have been planned for. Examples are increased health costs or reduced income through job loss.

It is essential to have an emergency fund that you can tap into in the event of a real crisis. It isn’t so bad to also have further savings and investments. It is never too early to start planning for retirement. If you wait until you are closer to retirement than the start of your career, you will never be able to catch up.

Conclusion

I hope you found the Credit Karma ca study as informative as I did. Of course, budgeting and debt issues are not limited to only millennials. Financial problems can affect anyone. Whenever I sit down with a person to talk about his or her insolvency, or with an owner of a company to discuss business financial problems, I make sure that we have an entire discussion. I not only talk to them about what process I recommend for their unique situation, but I also walk them through the entire process and what all the rights and responsibilities are.

Are you or your business experiencing money troubles? Are you on the verge of bankruptcy? Do not wait till it is far too late to understand how you can restructure your financial affairs and avoid bankruptcy. You do not need to be one more person or company declaring bankruptcy in Canada.

As a licensed insolvency trustee (formerly called a bankruptcy trustee), we are the only specialists certified, accredited and overseen by the federal government to provide insolvency guidance and to apply remedies under the BIA. We will certainly help you to choose what is best for you to release you from your debt problems.

Call the Ira Smith Team today so we can get rid you of the stress, anxiety, pain and discomfort that your money issues have created. With the distinct roadmap, we establish simply for you, we will without delay return you right into a healthy and balanced problem-free life, Starting Over Staring Now. Call the Ira Smith Team today.

 

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Brandon Blog Post

FINANCIAL SECURITY REPORT: HALF OF CANADIANS CAN’T MAKE ENDS MEET

Financial security Introduction

Brand-New Ipsos study findings were released on April 22, 2019, simply 2 days prior to the next Bank of Canada interest rate announcement. This brand-new survey shows exactly how Canadians really feel about their financial security or its absence. Ipsos claims almost fifty percent of Canadians cannot make ends meet on a monthly basis.

Fifty percent of Canada is worried about the effect of increasing rates of interest on their financial resources. They feel even worse about their debt load from just a couple of months back.

Canadians maxed out on debt

Canadians are maxed out on debt with 48% of Canadians on the edge of bankruptcy. They claim that they go by the end of every month to within $200 or less far from financial insolvency.

In regards to Canadians and their beliefs, people are worried about their debt levels and financial security. Forty-eight percent of those questioned claim they cannot make ends meet. They understand that they are most likely to take on even more debt at the end of each month to pay all of their expenditures. So practically fifty percent of all Canadians need to handle even more debt to satisfy their current expenses, which in part includes existing debt repayments!

It’s no longer about purchases – that ship has already sailed!

It ends up from the survey that this isn’t about the fact that we’re in a low-interest-rate atmosphere any longer. It also isn’t about people making high-end or lifestyle new purchases that are considered unnecessary.

They have actually already done all that. Especially people in Toronto and Vancouver that have stretched to buy costly houses, home furnishings and appliances. They used the low-interest rate mortgages and home equity credit lines to do it.

New debt on top of old debt

So now they understand that they better not take on even more debt. However, guess what? It is currently far too late for almost half of Canada. People are claiming they currently just cannot make ends meet. Therefore, they have no choice but to take on even more debt.

Brand-new debt to make old debt repayments! Undoubtedly, these individuals stay in a hazardous downward spiral. People are questioning whether can continue in this way and are thinking about personal bankruptcy.

It is true that the survey has a small sample size. This Ipsos survey reveals growing tension and grief. Nevertheless, personal bankruptcies remain historically low in this nation. Undoubtedly, there are local distinctions. Albertans are experiencing far more personal insolvencies as a result of the slowness in the energy market.

I think there are 2 really basic reasons for almost half of Canadians dealing with financial insolvency yet personally bankruptcy levels are down. First, financially troubled Canadians are utilizing the consumer proposal arrangements section of the Bankruptcy and Insolvency Act (Canada) (BIA). This is a good thing because they are avoiding bankruptcy.

Second, people still have adequate equity in their houses. So, they are still able to borrow for brand-new debt to satisfy old debt payments other living costs. This is not a good thing. The thing Canadians do not seem to be doing yet is tightening their belts and lowering month-to-month expenses.

Bank of Canada

The Bank of Canada (BOC) increased its overnight interest rate 5 times since mid-2017. At the end of 2018, everyone, including the BOC assumed that fad was most likely to continue. Nevertheless, in its first 2019 interest rate announcement, the Bank altered its signals and currently appears completely satisfied to hold steady on the interest rate for what might be for the rest of 2019.

On April 24, 2019, the BOC announced that it was maintaining the overnight bank rate target at 1 ¾ percent. The BOC did so based on its observations of the Canadian and global economies.

Their statement included, that in Canada:

  • economic development throughout the very first half of 2019 is anticipated to be slower than was forecast for in January 2019.
  • The oil price decrease and recurring transport restrictions have actually suppressed financial investment and exports in the oil industry.
  • Financial investment and exports outside the oil market, at the same time, have been adversely impacted by unpredictability and the global downturn.
  • Beyond the oil and gas market, the financial investment will be sustained by high prices of other commodities and exports will broaden with reinforcing international need.

As far as the global market, the BOC stated:

  • The global economy reduced by greater than the Bank projected in its January Monetary Policy Report.
  • Continuous unpredictability connected to trade disputes has weakened business views.
  • Stagnation throughout many countries has resulted.
  • In reaction, several reserve banks have reported a slower speed of monetary plan normalization.

As a result, the BOC kept its target for the overnight rate at 1 3/4 percent.

Financial questions for Canadians

Virtually fifty percent of Canadians currently are sorry for the debt they have. I believe what this does is brings recognition for you to have a serious discussion in your home. The discussion requires to be about:

  • Exactly how near the margin are you living?
  • What household costs could you drop?
  • Could you survive if one of you were to lose your job?
  • If not, what can you do now to prepare for that if it were to one day happen?
  • Have you filed all your income tax returns and paid all your tax obligations?
  • Did you get a tax refund and what are you most likely to do with that cash to help with your situation?
  • Are your Christmas gifts expenses all paid or are you still rolling those costs on your credit card bill every month?

Despite that the job market has seen wage strength, the Canadian economic situation has not produced great financial signals. There are spots that seem to be a little murkier. Our rising cost of living is nearing 2% on an annualized basis and we’re paying much more for gas at the pump. We’re paying a lot more for produce. So there are things that are costing us even more simple to manage. So if income is increasing a bit, costs are climbing much more.

So Canadians are currently really feeling a little sweaty. They aren’t certain what is most likely to take place. Currently, there appears to be a little bit of a rest on the interest rates.

Canadians need to set up a proper household budget

I would certainly suggest that not everybody has taken a hard look at their financial situation. There’s plenty of presumptions that can take place due to the fact that you just do not understand your numbers. I see that occurring all the time.

So perhaps people really feel a little even worse off than they actually are due to the fact that they do not understand their numbers. They understand they stay in difficulty, however, do not have the capability to assemble a roadmap for saving themselves.

A truth check is needed instantly. Most likely fifty percent of those that claim they cannot make ends meet can save themselves without turning to an insolvency process. If they just recognized their realities about their very own money situation. The other half of the half, or 25% of Canadians, probably do meet the financial insolvency definition and need professional help.

The trick might just be that Canadians need to promptly get a good handle on what their month-to-month income and expenses truly are. Share that info with the entire household and make and follow a household budget that has everybody’s agreement. Your financial security in retirement may depend upon it.

Readers of my Brandon’s Blog will know that I always state the advantages of correct budgeting. To check out this budgeting topic you can look as far back as my collection of blogs that began late in 2014 with A BALANCED BUDGET IS TO FINANCIAL HEALTH WHAT A BALANCED DIET IS TO PHYSICAL HEALTH. You can additionally check my more recent 2019 blogs, USEFUL TIPS FOR SAVING MONEY CANADA: THIS PRO ATHLETE TEACHES US and also MY BILLS ARE HIGH: 6 THINGS TO IMMEDIATELY DO.

What about you or your company?

Do you have way too much debt? Are you having difficulty making your month-to-month expenses? Is your company having a hard time handling its economic difficulties that you cannot figure how to get out of?

If so, call the Ira Smith Team today. We have decades and generations of experience assisting people and companies looking for financial restructuring or a debt settlement plan. As a licensed insolvency trustee, we are the only experts recognized, accredited and supervised by the federal government to provide insolvency advice and carry out alternatives to aid you to stay clear of bankruptcy.

Call the Ira Smith Team today so you can end your tension, stress and anxiety that your financial problems have triggered. With the special roadmap, we develop unique for you, we will right away return you right into a healthy and well-balanced hassle-free life.

You can have a no-cost evaluation so we can help you repair your debt difficulties. Call the Ira Smith Team today. This will most certainly permit you to return to a brand new healthy life, Starting Over Starting Now.financial security

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MY BILLS ARE HIGH: 6 THINGS TO IMMEDIATELY DO

my bills are too high

If you would prefer to listen to the audio version of this my bills Brandon’s Blog, please scroll to the bottom and click on the podcast

My bills are high: Introduction

It is very common when I sit down with a person who has come to my office for a free consultation to hear them say “my bills are high”. As a licensed insolvency trustee, my role is to first understand the person’s entire situation. It is quite possible that I can recommend a few alternatives to avoid bankruptcy.

The purpose of this Brandon’s Blog is to talk about the importance of budgeting and more things a person with financial problems can do before even considering the “B” word.

First thing – household budget

I will show you how to catch up when you are behind on your financial obligations by using a proper household budget plan process. I must warn you that there is no magic wand to wave to make things right. You will have to learn the budgeting technique and be willing to invest a great deal of effort, time and personal and family sacrifices. But it will be worth it. When you are back on track and living within your means, you will have a new stress-free outlook on life.

To start the monthly budget plan process, it does not matter if you use an electronic spreadsheet, a paper listing of income and expenses or a clean calendar. Whatever you are most comfortable using. The process will be the same.

The starting point is for you to list all your bills with their due dates. Don’t forget to make note of any special expenditures during any specific month, such as a spouse or child’s birthday present. Make sure you list all of your expenses regardless if you pay them by cheque, cash, credit card or online payment.

Next, list your monthly income by the date(s) during the month your wages or salary end up in your bank account. Make sure that you are listing your net take-home pay, net of income tax. That is the actual amount of income that you have to spend in any given month.

The 4 corners

Now that you know exactly how much money is coming in every month available for you to pay your expenses, you have to organize your expenses. You first need to know what I call your four corner expenses. These are the expenses that you will have to pay before anything else. This is true whether you continue working at the same place or you lose your job and are looking for new work. The expenses that I call the four corners are:

  • Rent or mortgage payment.
  • Food costs.
  • Heat and electric bills.
  • Clothing expenses.

These are your essentials. Nothing else can be considered before them. So fill in your regular monthly amount for each one. Total up the amount of your four corners expenses and deduct it from your take-home pay. The difference is what you have left over each month to spend on other expenses.

Now go down the list of the rest of your expenses. Car payments, gas and vehicle maintenance, insurance, cable, internet, credit card payments and anything else that you have listed. See what all those expenses total. If the total of those is more than you have leftover cash from the four corners exercise above, then you have to make adjustments. You either have to reduce your other expenses or you have to increase your income. Perhaps it may even be a combination of the two.

If you are behind on any of your payments, because your bills are too high right now, you are going to have to work into your budget increasing the amount of the monthly expenses that you are behind on. However, there is an exception. The exception is that you start with your four corners payments you are behind on.

It won’t help you to bring your credit cards current if the gas company is about to shut off your ability to heat your home. Bringing a life insurance payment current won’t help you if you are behind on your rent or mortgage payments. So again, your four corners payments have to be brought current first. Then you can focus on your other expenses.

Do not worry about anything else. You put it on hold due to the fact that at the end of the day, if you were to have lost your job, the four corners is what you require to make it through, not a credit card payment. You don’t need to fret about your credit rating decreasing since if you are starting this trip you are not looking to borrow more money that needs your credit score to be spot-on. That will come over time after you have your financial house in order.

You worry about taking care of your four corners first. That is a good mind trick to getting yourself out of the loop of being addicted to letting your bills go late. imagine if you would have lost your job you would have no other choice but to not pay the credit cards.

Balance the rest of your expenses

Now, normally when you’re behind on payments that mean that you don’t have enough money to cover all your bills and that is totally fine. I need to emphasize that is totally fine. You will be able to catch up eventually. Most people find ways to catch up by either:

  • Further reducing expenses.
  • Selling stuff.
  • Using an annual bonus.
  • Increasing income with overtime, a part-time job or side hustle.

You need to take care of business. That way you are treading water, not sinking in it!

Now, what about the non-four corners monthly payments that you are deferring. Yes, eventually the credit card company, such as, is going to start hounding you. You will have to explain your temporary problems, tell them what you are doing to correct things, and when you think you will really begin to resume payment. It doesn’t matter who the creditor is. The process of explaining the issues and getting a deferment or grace period is the same. Do not hide from your creditors. Explain the situation and show them that you have a solution for your common problem.

For additional ways to pay down your debt, take a look at my blog DEBT HELP NEAR ME: OUR TORONTO DEBT REPAYMENT CALCULATOR STRATEGY. In it I explain the two most common methods of paying down bills you are behind on; the debt snowball method and the debt avalanche technique.

If you budget properly and stick to your budget, you will get caught up and your credit will recover with time. Now that you actually have control over your expenses and you know to the day of every month what you earn and what you pay, you can then look at some alternatives if you cannot get current before a creditor stops waiting and is beginning to take action against you.

Once you have the budget process mastered and you are following your budget, you won’t have to say “my bills are high”.

Second thing – rebuilding credit

Rebuilding credit is essential. There are many points beyond your control that could have contributed to you’re getting behind on your bills and your resulting bad credit ranking – losing your job, an illness or a divorce. The most vital thing is to recognize what is within your control that got you into difficulty and ensure that you don’t repeat the same mistakes twice.

There are many strategies that you can use to restore your credit score. Here are a few suggestions:

  • Continue with the budget plan I showed you above and continue to pay down your debt.
  • Pay your expenses in a timely manner
  • Contact a creditor instantly if you are having a problem making payments to advise them and work out a payment plan that you can honour.

If you do not qualify for any type of loan, apply for a secured credit card and stop using the normal credit cards that got you into trouble.

Third thing – credit counselling

The first two things I have mentioned are for those who can do it on their own. If you discover yourself experiencing money problems and feel that you need the help of an expert, credit counselling is a great place to start.

A certified credit counsellor professional, can look at your current situation and offer you many alternatives for taking care of the debt.

Credit counselling can solve debt problems. It will also give you the skills to properly budget, pay down your debt and then go on to live debt free. Credit counselling solutions consist of the budgeting process and credit repair that I have already talked about. It also will include lessons on how to use debt wisely. It may also include a proper debt administration program.

Debt administration programs are made to aid you to repay debt. You enlist willingly in a debt administration program; it is not court mandated. When you enlist, a debt counsellor will contact your creditors and ask for their participation in lowering your debt. Your lenders might agree to decrease the amount of debt owing or eliminating or reducing the interest owing. Not all financial debts are covered under a debt monitoring program. Secured debts are generally not included. This is because the creditor can repossess the house or car if you do not make your payments.

One word of caution. We have had cases where certain debt administration firms failed to provide any type of purposeful solution for the people. They charged costs and didn’t give any kind of results. We suggest that you contact what you believe to be a reputable credit counselling firm, you do not retain them until after getting and vetting a couple of references of people who have gone through the program you are considering and you receive positive reviews.

Fourth thing – debt consolidation

Debt consolidation is a loan that allows you to settle all your financial obligations to several or all of your lenders simultaneously, leaving you with just one loan payment. Your debt consolidation loan interest rate must be less than the average interest rate of the debts you are settling.

Not all debts can be included in a debt loan consolidation financing. Secured financial debts like your home mortgage or car loan cannot be included; however unsecured debt like credit card debt and other regular monthly bills that you are now behind on can be.

In order to qualify for a debt loan consolidation, you will require to have an acceptable credit score and sufficient income to show to the lender that you can make your new month-to-month payment in addition to your other regular monthly expenses. Debt consolidation is something you ought to consider before you are in more significant financial troubles. If you have a poor credit score you will certainly not qualify.

There are many benefits to a debt loan consolidation financing that include yet are not limited to:

  • Interest rates are less than the rates of interest on credit cards
  • Your unsecured creditors will be paid in full
  • You will have the benefit of making only one monthly payment
  • You ought to be able to keep a good credit report rating

Fifth thing – consumer proposal

Your financial problems may have gotten to the point where you just don’t have enough time to get current using one or a combination of the 4 things I have already explained. Worse, you may have gotten breathing room and accommodation from your creditors. However, you were not able to keep current on your new payment plan. If this is the case, do not fret because there is a solution.

By using a licensed insolvency trustee (formerly called a bankruptcy trustee) (Trustee), you can reach a binding deal with your creditors to settle your debts at less than the amount you owe in total. The process for this debt settlement plan is called a consumer proposal.

Consumer proposals are options to avoid bankruptcy. A consumer proposal is available to people whose total financial debts do not go beyond $250,000. This limit is not including financial obligations for mortgage or line of credit loans registered against your principal home.

Consumer proposals have formal rules governed by the Bankruptcy and Insolvency Act (BIA). Dealing with a Trustee you make a proposal to:

  • Pay your creditors a percentage of what you owe them over a specific time period (not more than 5 years).
  • Extend the time you need to pay off the debt.
  • It could be a combination of both.

Payments are made to the Trustee who is the administrator of your consumer proposal. The Trustee then uses that money to pay each of your creditors their part of the payments.

The advantages of a consumer proposal are:

  • You maintain all of your possessions
  • Collection actions against you by unsecured creditors, such as garnishments are stopped
  • Unlike informal debt settlement, the consumer proposal is a legal process where every one of your creditors must heed your restructuring
  • You do not have to claim bankruptcy

Sixth thing – bankruptcy

If you have left things too late, or other reasons why none of the 5 things I have already described will work for your situation, then the sixth thing is bankruptcy. Personal bankruptcy is meant to allow the honest but unfortunate person shed themselves of their debt. That way you can start over fresh and new.

Our goal as a Trustee is to ensure that you understand the bankruptcy process and how it can be used to get your life back on track.

We will first help you understand the 5 things I have already described that might be available to you to avoid bankruptcy. If bankruptcy is the only solution, we will guide you back on the roadway to financial health and wellness. We design solutions to ease the stress you meet and bring you:

  • Relief from bothering calls from debt collectors.
  • Freedom by extricating you from garnishments.
  • Provide you the ability to live better than just hanging on one paycheque to the next.
  • Improve your credit scores.
  • Give you an improved and enhanced wellness and well-being.

My bills are high: Do you have too much debt and need help?

If so, call the Ira Smith Team today. We have years as well as generations of experience aiding individuals and companies needing financial restructuring. As a licensed insolvency trustee, we are the only professionals accredited and followed by the Federal government to provide debt restructuring options.

You can have a no-cost appointment for us to gather the necessary information to advise you on how to fix your debt difficulties. We can end your pain so that you will begin your clean fresh start, Starting Over Starting Now.

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6 CANADIAN PERSONAL FINANCE MOVES EVERY NEW GRAD SHOULD MAKE

canadian personal financeCanadian personal finance: Introduction

Congratulations Graduates! You’ve done it! And now, at long last, you’re working. Have you been out shopping for a new car? Maybe having a look at the condo market? My advice to you is to slow down. That is why I am providing my 6 Canadian personal finance moves every new grad should make.

As tempting as it is to be making some real money for the first time, finding ways to spend it isn’t as important as finding ways to save it.

Canadian personal finance: Finances 101 for recent grads in a first job

  1. Pay down debt first. This is one of the most important messages that we deliver, especially for high-interest rate debt. So, hold off on the spending sprees and pay off your debts.
  2. Establish a budget. “It is important to set a new budget based on your new income and stick to it”, says Jennifer Auld, a District Vice-President of TD, who suggests using one of the many financial apps available to help track your spending. “You can plug in all of your fixed costs and determine what’s left at the end, for you to spend”. “It’s a critical first step in terms of establishing how much you’re able to save each month and what your discretionary earnings look like.”
  3. Save! Save a portion of each paycheque, even if it isn’t a lot of money. It all adds up. You will establish a pattern of saving which will be a big help down the road.
  4. Take advantage of group RRSP plans with matching contributions at work. It’s free money and will help you save more money, faster.
  5. A tax-free savings account is a great option for someone making less than $50,000 a year. Especially people coming right out of school, according to Michael Allen, senior portfolio manager at Wealthsimple.
  6. Don’t make any drastic changes in lifestyle. Jennifer Auld of TD Canada Trust suggests continuing to live on a student budget for a couple of months while you make a plan, including establishing your short and long-term goals. “What that allows you to do is get comfortable with your new reality before you go out and start changing your lifestyle and changing the way you live day-to-day,” said Auld.

Canadian personal finance: What to do if you are deep in debt

If you’re a recent grad, or a not so recent grad, with a high debt load and getting deeper into debt, reach out to the Ira Smith Team. We help people deal with debt on a daily basis and there is a way out. You need a plan for Starting Over, Starting Now. Give us a call today and get on a path of debt free living.

Call a Trustee Now!