I want to save money but how? How can you start saving money?
Before you can save money you need to know what you’re spending on. Make a list of everything that you spend money on – even small things. You may be shocked to learn where your money’s going. Then go on a shopping diet.
I want to save money but how? What is a shopping diet?
A shopping diet is no different from going on a food diet. Determining what to cut out or cut back on is tricky business. You need to reduce spending significantly to save, but still leave yourself a little money to buy some extras or you’ll never stick to it. It takes willpower and self-control. Dieting is not fun, but it beats the alternative.
I want to save money but how? 12 tips for going on a shopping diet:
If you’re still smoking, stop now! In addition to the serious health ramifications, a pack a day habit/month can cost as much as a car lease, all of your utilities or a large part of your rent.
Cut out or drastically cut back on designer coffee/tea. Did you know that a latte a day can set you back as much as $1,500/year?
Swap department store face products for drug store face products. They’re just as good and you can save thousands.
Review your plans – cell phone, cable TV, internet… and make sure you’re getting the best deals.
Don’t automatically renew your car insurance and/or house insurance. Call around different to companies and brokers to make sure you’re getting the best prices.
Go to a supermarket that offers the best deals or allows you to price match. Shopping at the most convenient place may add up to 25% to your grocery bills.
Try a no-frills hair salon instead of a fancy salon. You’ll be shocked at how much you can save.
Take public transit where possible instead of paying for gas and expensive parking.
Cut back on your bar bills. Sharing a bottle of wine with dinner can cost more than the dinner. A few beers with your mates after work on a regular basis can add up to a pretty penny.
Do you really need a new wardrobe? A few new pieces on sale may do the trick.
Stay away from the make-up counter. How many lipsticks and eye shadows do you really need?
Stop impulse shopping! Shop with a list and a purpose.
I want to save money but how? Do you need an experienced trainer to help you go on your shopping diet?
A shopping diet goes hand in hand with a budget. Now that you realize how much you can save by going on a shopping diet, you’ll be able to live within your means and save money.
If you feel like an out of control spender and are in serious financial trouble, or heading there, contactIra Smith Trustee & Receiver Inc. today. We can help get you out of debt Starting Over, Starting Now. With immediate action and the right plan you’ll be on your way to debt free living and saving for the future.
Shortly afterwards, Hudson’s Bay Company announced massive job cuts. We had just uploaded our vlog HUDSON’S BAY COMPANY NEWS 2017: JOB CUTS for publication on June 14, 2017 when Sears Canada Inc. (Sears Canada) dropped a bombshell.
Sears Canada closing down: Sears Canada today
Sears Canada is an independent Canadian online and brick and mortar store merchant whose head workplace is in Toronto. Sears Canada’s special positioning is that it provides customers Sears tagged items, developed and straight sourced by Sears Canada.
It additionally is a leading rated mattress retailer in Canada, as well as the leading home appliance company in Canada. Sears Canada is undertaking a reinvention. It consists of brand-new consumer experiences at every touchpoint, a brand-new e-commerce system, as well as a brand-new collection of customer care principles developed to supply special experiences to consumers.
It is a case of too little too late. The market is not responsive to Sears Canada’s efforts to rejuvenate its company. On June 13, 2017, Sears Canada revealed financial news for the 1st quarter of the financial 2017 year. Sears Canada divulged that:
earnings was $505.5 million in the first quarter, a decrease of 15.2% as compared to the same quarter the year earlier;
the gross margin was 22.6% in the first quarter of 2017, as compared to 28.2% for the very same quarter in 2016;
EBITDA was a loss of $133.9 million in the first quarter compared with a loss of $75.4 million for the same quarter in 2016;
the bottom line for the very first quarter was a loss of $144.4 million or $1.42 each share compared with a bottom line loss of $63.6 million or 62 cents each share in the very same quarter the year earlier; and most notably
Sears Canada divulged it requires either a financial restructuring or sale of the company. It also stated it does not have enough money to last through the current year.
The Toronto Star reported that Sears Canada attempted to soothe customer fears despite advising it has ‘substantial doubt’ regarding its future. The article quoted several insolvency lawyers and our Ira Smith in this write-up.
Since Sears Canada has made this statement:
customers will certainly be worried about getting products paid for however not in supply at the time of payment;
consumers will certainly be worried about any kind of service warranty Sears Canada offers; and
vendors will certainly be worried that they will not be paid for items delivered to Sears Canada.
Sears Canada closing down: How did we get to this point?
Sears Canada started in 1952 as a mail-order collaboration between Sears Roebuck Co. in the United States and Toronto’s Robert Simpson Company. They opened the very first Simpsons-Sears shop in Stratford, ON, in 1953. The mail-order as well as outlet store version was effective, for a long time.
In 1994, Wal-Mart introduced itself in Canada. It brought deep price cuts to we the north. They took control of the reduced as well as discount rate valued market.
Shops like Sears Canada as well as Hudson’s Bay, reacted by going towards a medium to higher-priced service version. At some point, over years, that business was “picked off” by specialized merchants.
Sears Canada after that missed its possibility to become an on the internet company. It should have known that it had to take on the likes of Amazon. E-commerce sites have created the death of lots of traditional sellers, like Sears.
The C suite in both Canada as well as the United States has had a revolving door on it for several years. No person has existed enough time for Sears to carry out a well-planned and implemented survival strategy as the markets changed.
Sears in the United States, and for that reason Sears Canada, is managed by hedge fund manager Edward Lampert. In real hedge fund design, Sears Holdings as well as Sears Canada has sold off assets to raise cash for many years. It has cannibalized itself.
Sears Canada closing down: My personal assessment
In my viewpoint, Sears Holdings as well as Sears Canada are as good as finished. It is just currently an issue of time before the last pieces are marketed and sold.
Sears Canada has currently employed BMO Capital Markets to discover sale alternatives. It has also retained law firm Osler, Hoskin & Harcourt LLP for legal guidance. My hunch is that Sears Canada this year will certainly be put under court protection from creditors. Assets representing a business unit that can be sold off will be. The rest will be liquidated.
This is already a familiar tale for Canadians; Target Canada comes to mind. You can revisit its liquidation story in our previous blogs:
Sears Canada closing down: What about you and your company?
You or your business possibly does not have any kind of other assets to offer to raise cash. Even if you did, the Sears Canada tale reveals that over time, it does not work out. What every person and business needs is a proven strategy and a plan to go forward with.
If you have too much debt and insufficient cash flow, you need your plan and strategy in place NOW. Contact us now. The Ira Smith Team is here to solve your debt problems and help you carry out that winning strategy, no matter the reason. We’re here to help and get you back on solid financial footing Starting Over, Starting Now. We’re just a phone call away.
Technology has opened the door to increasingly new and somewhat complex types of internet scams which rob us of billions every year. We all know that millennials are the most avid users of mobile and internet technology, but does that make them tech savvy? Well, the truth is that millennials are tech dependent, not necessarily tech savvy. This leaves them vulnerable to internet money scams.
Types of Internet Scams: Why are millennials so vulnerable to internet money scams?
According to a survey by Capital One, millennials:
Have grown up in the sharing economy so they’re just so used to sharing information about their personal lives and their details with friends and people on social media
Are more likely than other generations to admit they share their PINs with family and friends
Use their personal information such as their birthday as their PIN
Share their credit card number over the phone or email
Types of Internet Scams: Millennials are the most vulnerable
Although we can all be suckered in by these types of internet scams, millennials are the most vulnerable because they “live” online. However, the more economically challenging times become, the more vulnerable we all are.
Types of Internet Scams: The 5 internet scams that are the most dangerous to millennials, and the rest of us too!
Fake job offers: The classic job scams have headlines like “I make thousands of dollars working from home and so can you. All you need is a computer and an internet connection”. “Start your own business from home with no investment. Sign up for training”. When it sounds too good to be true, it generally is. Never send anyone money upfront. Never give out sensitive, personal information.
Become a mystery shopper: Most mystery shopper scams are cheque scams in disguise. Although there are certainly legitimate jobs for mystery shoppers, beware! Remember, if the opportunity is legitimate you won’t have to pay an application fee or deposit a cheque and wire money on to someone else. Always do your homework and check mysteryshop.org for a list of legitimate companies.
Shopping online: Although many of us do some of our shopping online, millennials are true online shoppers. The problem is that millennials are so used to shopping online that they don’t look for danger; but the reality is that danger is lurking around the corner of every transaction. Many e-commerce sites look legitimate but are really fake stores.Always check online reviews before doing business with a new company. Otherwise you’ll give scammers your credit card information that can be used to make fraudulent purchases and/or resold. Check your account statements for any errors or fraudulent activity and check your credit score at least once a year.
Crowd funding: There are so many scams out there about people claiming to be dying of cancer and needing money for treatment, medication or money for their kids, that it’s hard not to be a cynic. Before giving money to any crowd funding campaign, make sure you really check out the people soliciting funds.
Online demands: Blackmail has found its way into the online world. Millennials are used to using email or text and posting the minutiae of their lives to social medial sites.
Types of Internet Scams: Report internet scams to the police?
All of these online channels are insecure. Remember those sexual images you sent to your boyfriend or girlfriend? They can be used against you and used to extort money from you. As embarrassed as you may be, go to the police to report internet scams. Extortion and blackmail are crimes.
Types of Internet Scams: Have you been a victim of an internet scam?
Have you been a victim of an internet scam and are now experience financial hardship? The Ira Smith Team is here to solve your debt problems no matter the reason. We’re here to help and get you back on solid financial footing Starting Over, Starting Now. We’re just a phone call away.
On May 24, 2017, we wrote our blog RETAIL BANKRUPTCY WATCH LIST: WHAT THIS 102 YEAR OLD TEACHES US ABOUT RETAILING. This was the tale of Ingledew’s, a 102-year-old Vancouver shoe shop chain that declared bankruptcy. There is one most compelling of all the retail bankruptcy problems today. That is the consistent consumer practice of identifying the item in bricks-and-mortar stores and after that getting it online from other shops. There are others on the retail bankruptcy watch listing for the same factors. The Hudsons Bay Company news 2017 is cutting 2,000 positions.
Hudson Bay Company news 2017: Current status
The Bay is losing cash. After a difficult 3rd quarter 2016, HBC was seeking to cut expenses as the seller’s shares were at their lowest point yet since going public for a second time in 2012. CEO Jerry Storch claimed at that time that HBC is eager to focus on searching for “non-customer facing” effectiveness after the company reported a wider loss than expected.
At that time, the reported reasons for the losses were expenses being too high and a 4% dip in sales at stores open for greater than a year. Jerry Storch pointed out weak point in women’s clothing as well as high-end retail. Certainly, those initiatives alone were inadequate. The losses at HBC proceeded and now they are cutting jobs that are “customer facing”.
HBC revealed last Thursday it is getting rid of 2,000 employees throughout North America to help balance out different difficulties it’s dealing with within the retail sector. One of the central issues facing large retailers is that they must close stores with the arrival of on the internet shopping.
Established in 1670, HBC, is the oldest business in North America and one of the eight oldest companies in the world. It uses greater than 66,000 people. It runs greater than 480 stores under banners such as The Bay, Saks Fifth Avenue, Lord & Taylor, Gilt, and Saks Off 5th.
Hudson Bay Company news 2017: Hudson Bay earnings 1st quarter 2017
On June 8, 2017, HBC reported that the 1st quarter 2017 was a rough one. The retail clothing market remains challenging.HBC must adapt, beginning with a reorganization plan. Richard Baker, HBC’s Governor and Executive Chairman, said that the reorg plan will reshape HBC improving its costs.
His explanation of HBC’s restructuring will look not only at job cuts, but also its real estate assets and its diverse retail businesses.
Hudson Bay Company news 2017: Cost savings expected
The retail giant said the layoffs should save $350 million annually when the plan is fully implemented by end of financial 2018. A few of the layoffs were before introduced in February, the firm claimed.
Hudson Bay Company news 2017: It isn’t only HBC
This is the same tale that’s impacting a lot of big-box retailers today. Cash that used to be spent during a visit to The Bay, Sears and other big names like that; it’s going mainly to the web. Amazon is the main beneficiary, so you’re seeing these big-box retailers rushing to attempt and keep up. They’re reducing expenses to attempt to stem the losses. HBC’s stock is down 27% this year.
“As we have developed our plan, we have been determined to become not just a leaner company but also a better one” says Jerry Storch. Some industry experts have examined whether there is more value to leverage from HBC’s important realty profile. HBC has understood this to a degree with sale leaseback and joint venture arrangements.
In the case of Ingledew’s, the factors mentioned for the bankruptcy was that prices and financial obligation climbed due to:
the lease prices paid to shopping mall property owners for rental fee;
the amount of loan it took to open these gorgeous new stores; and
the wages paid to get as well as maintain excellent people to be educated, deal with the consumer well and properly stand for the firm.
In the United States, there are annoying earnings records also from JC Penney, Macy’s, along with Nordstrom. This is against a backdrop of general distress in the retail market. Retailers are shutting shops and businesses applying for Chapter 11 in 2017. In the very first 4 months of 2017 filings have gone to a rate not seen since that the last recession.
Hudson Bay Company news 2017: What Moody’s has to say about Hudson Bay Company financial trouble
Twenty-two retailers in Moody’s portfolio are in severe financial trouble that might bring about bankruptcy. That’s 16% of the 148 firms in the financial company’s retail portfolio. This overshadows the level of seriously troubled retail firms that Moody’s reported during the Great Recession.
Hudson Bay Company news 2017: What about you?
Are you unhappy about the direction your debts are taking you? Do you or your company not have enough cash flow to make it through another season? Is the stress of too much debt affecting your health and life? Do you need a restructuring plan?
Call us now for a free consultation. The Ira Smith Team can help you sort through all the issues. We will create a plan to get you back on the road to financial health. Many times, we can avoid bankruptcy, using one of the various bankruptcy alternatives. Call us today so we can help you get your life back, Starting Over, Starting Now.
Toronto’s real estate market has changed in May 2017. Many more listings have come onto the market and the Canadian subprime lender mortgage landscape has changed. The regulations for qualifying for a traditional mortgage have tightened significantly. Canadians in ever-increasing numbers have turned to alternative mortgage lenders or subprime lenders. For a higher interest rate subprime lenders give mortgages to people who are higher risk and don’t meet the criteria demanded by traditional financial institutions.
Subprime lender: Now the subprime lender is in trouble
The problems started in July 2015 when Home Capital Group disclosed it had cut ties with 45 mortgage brokers. An internal investigation revealed that certain borrower applications contained false income and employment information to get loans. The Ontario Securities Commission (OSC) alleges that the company broke securities law by making misleading disclosure after the company believed it discovered some brokers had falsified loan applications. All hell broke loose!
Subprime lender: No Capital = No Mortgages = No Business
Alternative mortgage lender Home Capital Group is now in big trouble. Its stock dropped 60% in a single day. A run on deposits have taken them into a deep dive to $391 million from $2 billion. Home Capital’s ability to attract new funding is now seriously in doubt.
Subprime lender: The subprime lender resorts to borrowing at subprime
Home Capital Group has taken out a $2 billion loan from the Healthcare of Ontario Pension Plan. With a 10% interest rate plus other fees and charges, the company is effectively paying 22.5% on the first $1 billion it borrows. This falls to 15% if it uses the full $2 billion available to it, according to Jaeme Gloyn, an analyst at National Bank of Canada. The subprime lender has borrowed at subprime rates so in effect the predator has become the prey!
Subprime lender: How can a subprime lender’s troubles affect you?
Home Capital’s problems have tainted the entire subprime mortgage lending in Canada industry. Stocks of other subprime lenders have also dropped. “Home Capital contagion has spread to the entire mortgage market, in particular, alternative mortgage lenders,” says National Bank of Canada analysts Jaeme Gloyn and Victor Dri.
Home Capital Group won’t be able to continue to fund at the same volume as they have in the past. This means that mortgage brokers and borrowers will approach other subprime lenders. This demand will probably lead to subprime lenders charging even higher interest rates, making mortgages unaffordable to many Canadians.
Subprime lender: What does this mean for the Toronto real estate market?
If fewer people can get mortgages then the entire real estate market is going to feel the crunch. The Canadian financial services industry is much different from that in the USA. Although no one wants to set off alarm bells, what happened to Home Capital Group sounds all too reminiscent of the New Century Bank story in 2007 in the U.S. They too faced a liquidity crunch which eventually left them with no alternative but to declare bankruptcy – a move which set off the 2007-2008 financial crisis.
Is the subprime lender borrowing at subprime rates a warning? We are already seeing the Toronto real estate market slowing. It now resembles a very active market, but not the overheated market of the past year or so. Will it slow down more? Is the Toronto real estate market still a bubble about to burst? Only time will tell.
Subprime lender: Have you borrowed all you can borrow but still need more money to make ends meet?
Buying more house than you can afford is never a good idea. If you’ve bought more house than you can afford or are experiencing serious debt issues for any reason, the Ira Smith Team is here to help. We’re experts in debt, serving companies and people throughout the Greater Toronto Area (GTA) facing financial crisis or bankruptcy that need a plan for Starting Over, Starting Now. Give us a call today.
My top 10 debt reduction program steps is for anyone to start immediately to reduce or eliminate debt in order to regain control of your life. By following these steps, there is no need for you to seek out a debt settlement company. I am giving you a foolproof program for free. Debt settlement companies would charge you thousands of dollars for this information!
1. Debt Reduction Program: Say No To Debt
When you have determined, “I’ve had it”, take your charge cards out of your wallet. Then follow your budget (which means you have one) as well as swear NO MORE DEBT. No ifs or buts … no more debt, NO MATTER WHAT. Either lock the charge cards away, or even better, cut them in half and send them back to each issuer. Ask that they no longer send you any and that your account should be capped at its current balance.
2. Debt Reduction Program: Take Your Head Out of the Sand
Determine your revenue, your monthly costs, and your financial debt total amounts. Acknowledge your past errors with money and progress. Today is a brand-new day as well as you are no more living in denial about your financial resources.
Every financial choice from now on should be based upon a plan. A plan that is based upon realities. Facts from your budget as well as financial goals.
3. Debt Reduction Program: Develop a Monthly Budget (with your spouse or partner if you are not single)
If you are to do just one of these ten practices, please do this one. Living by a written budget is the ESSENTIAL trick to living a financially secure life. When you prepare a monthly budget plan, there was no other way in refuting that you were investing $400+ in totally optional spending on non-essential items; $20 there and $50 here that were amounting to $100’s every month … WASTED!
Your written spending plan provides you with a strategy to spending cash on what you “need” as well as “want” and NOT losing it away. Do you recognize the ordinary person making $50,000/ year will have over $2 MILLION go through their fingertips??? Don’t YOU want to have a plan for those $$$?
4. Debt Reduction Program: Cash not credit
Yes, using cash can be bothersome and a hassle but it is IMPOSSIBLE to spend greater than you have and go over budget. It also hurts a lot more to use cash money then simply swiping plastic.
Those adorable shoes do not look so cute when you think of handing over the last bill in your pocket. It would most likely be easier to live without the most up to date digital gadget when you think of taking all that cash out of your wallet. At that point, your current phone, while not the latest model, looks pretty useful all of a sudden!
Try it. After a few months you will see how your costs reduce. Your behaviour will transform so significantly that you will be shocked how much money you have used unnecessarily in the past.
5. Debt Reduction Program: Priorities
Your financial decisions mirror what you as well as your household regard as a top priority in your life. This will be noticeable in your month-to-month budget plan.
Establish your family’s top priorities. Make certain your regular monthly budget mirrors these top priorities. With a proper budget, you may begin to seem like “inadequate me, I don’t really go out to dinner.” Remember your family has various top priorities and you are compromising one meager dish at your favorite restaurant to have a lifetime of financial safety and security. This definitely puts things in perspective when you are in a moment of weakness.
6. Debt Reduction Program: Remove Temptation
Do not set foot in your preferred non-essential shop. If the lure is not there, you will not spend money on things you do not need. Attempt to restrict on your own to only food store. Shop with a checklist as well as stay with the checklist.
If you have difficulty with internet shopping, unsubscribe from store e-mails that promote sales and new products. You are as well concentrated and functioning also hard on your financial goaks to have a slip up on something that was not in the budget plan.
7. Debt Reduction Program: Free Entertainment
Sometimes this financial debt elimination phase is going to seem like it has drawn out all the “enjoyable” things in your life. Just because you are on a tight budget does not mean you shouldn’t enjoy your new life.
Choose cost-free or cheap entertainment. Activities such as walking, barbecue in the park, borrow publications & flicks from the library (yes, they still exist!), free concerts in the park, playing cards and other games, volunteering your time, digital photography, checking out a museum or historical site on a “cost-free entry day.” The possibilities are unlimited, be innovative!
8. Debt Reduction Program: Decrease Food Expenses
Food can be one of the highest costs in your budget plan (2nd to housing). Great news, there are MANY ways to lower the cost of food.
Grocery Store: Have a listing. Use “Budget Friendly Recipes” to make a dish strategy to stay clear of food waste. Do not acquire or dramatically decrease the buying of already prepared foods (anything pre-cut, pre-cooked, pre-prepared).
Dining establishments: Avoid them as long as possible. Cooking a meal in the house will certainly ALWAYS be less costly than eating at a restaurant (unless somebody else is picking up the tab). When you do eat at dining establishments use vouchers, Groupons, happy hour price cuts, as well as basically anything to lower the price.
9. Debt Reduction Program: Team Work
I could not stress enough how crucial it is, to collaborate with your spouse or partner with your financial resources. You are in this with each other. When one of you is having a harsh day, the other needs to urge and remind you why you are sacrificing, why you got on this trip.
One of you might take on the role as the captain, pushing your “team” to the absolute limitations to pay off financial obligations. It might be the spouse or partner who is the MVP, that continuously gets you through the battles and the “bad days”.
10. Debt Reduction Program: Develop Goals
When your financial priorities are established, it will be simple to jot down goals. I recommend composing one or two short-term financial objectives. Your financial goals may be something like:
Eliminating our home equity line of credit balance by February 2019
Having a cash reserve of $2,500 in case of an emergency
Reward ourselves by taking at least 2 vacations in 2020 because of what we have accomplished so far
Now that you have your objectives developed, this is where you need to circle back to make sure that it is accounted for in your written budget. Your objectives will certainly aid you to stay focused and also provide you inspiration to continue your financial trip.
Debt Reduction Program: What if you haven’t started to reduce debt early enough?
Are you too deep in debt? Is the monthly interest charge on your credit cards more than your monthly amount available to pay down the credit card debt? Being threatened with lawsuits or being sued?
Then you need to consult with a licensed insolvency trustee for some surgery. All of the 10 points listed above will be part of your financial rehabilitation. However, you need to have the time clock stopped now to give you breathing room.
A licensed insolvency trustee can develop such a plan for you and get you the relief you deserve and need. The Ira Smith Team has much experience in handling debt problems like yours. We have helped many people and companies return to financial health and live a stress-free life.
Contact the Ira Smith Team today for your free consultation. We will develop a practical plan for you to get out of debt and regain control over your life, Starting Over, Starting Now!
Ladies, I’m sorry to say that there’s no equality of the sexes when it comes to saving for retirement in Canada. The truth is that women need to save more for retirement than men. That may sound like an unfair, sexist comment but it’s a financial reality and here are four reasons why.
Saving for retirementin Canada: Why do women need to save more than men for retirement?
Women outlive men on average by four years according to Statistics Canada. This means that women have to fund an extra four years of retirement Typically the older we get the more healthcare costs we incur including the high costs of some prescription drugs and in some cases, assisted living.
Women earn less than men. As shocking as it seems, a woman working full-time in Canada makes 73.5 cents for every dollar a man makes, according to updated Statistics Canada income data produced for The Globe and Mail in 2016.
In addition they report that these numbers are even lower for Indigenous and women of colour. On a global scale, the gender pay gap in Canada is more than twice the global average, according to research firm Catalyst Canadam. The Canadian pay gap is on average $8,000, while globally it’s at $4,000.
Many women take time out of the workforce. Women on average work 28 years in their lifetime as compared to men who work 38, according to Diane Garnick, Chief Income Strategist at TIAA. Typically it’s women who take time out to raise kids or take care of elderly parents. These 10 fewer years of income really impacts retirement savings and pensions..
Women get less in pensions than men. Lower earnings coupled with less time in the workforce many times equates with less pension.
Saving for retirement in Canada: Unfortunately your dream of retirement may be just that – a dream
Nearly 75% of Canadian property owners would certainly have problem paying their home mortgage each month states a Manulife Bank homeowner debt survey. This is the case if their monthly payment boosted by just 10%,
The financial institution surveyed 2,098 home owners. They were between the ages of 20 to 69. They had family incomes of $50,000 or greater. It was an online survey conducted in February 2017.
Since these kinds of surveys typically aren’t randomized, experts claim the internet surveys do not have a margin of error. They state that the study however highlights simply exactly how limited the spending plans are for lots of Canadians.
Manulife Bank homeowner debt survey: The results
Manulife’s study claimed:
14% of participants would not stand up to any type of rise in their regular monthly payments;
38% of those surveyed claimed they might endure a repayment increase of between 1% to 5% before having a problem; and
20% stated they might tolerate an increase of between 6% to 10% before feeling the pinch.
Manulife Bank homeowner debt survey: Almost 75% could not handle a small rate increase
This poll indicates 72% of house owners surveyed could not endure an increase of 10% from their existing record low rates. Let me be clear. We are only talking about a 10% increase; not an increase to 10%. So, if you have a mortgage with a 3% rate of interest, 72% of those surveyed could not make ends meet with an increase in their mortgage interest rate to 3.3%!
That’s an unsafe area to be, with rate of interest readied to increase eventually.
“What these people don’t realize is that we’re at record low-interest rates today,” said Rick Lunny, president and CEO of Manulife.
Manulife Bank homeowner debt survey: Many homeowners have less than $5,000 in savings for an emergency
Overall, almost one-quarter (24%) of Canadian house owners surveyed claimed they have not been able to generate enough funds to pay an unforeseen expense in the past year. And, most are not healthy to weather any kind of economic tornado. About 50% of those questioned had $5,000 or less in reserve to manage an economic emergency. One fifth of them have absolutely nothing saved for a rainy day.
One quarter of millennials questioned had no savings. The same was true for 1 in 6 boomers.
Manulife Bank homeowner debt survey: If the main income earner lost his/her job, it would take no more than 3 months to be in mortgage default
The study discovered that 45% of millennial house owners– those aged between 20 to 35– would certainly have one of the most problems making their mortgage payments within 3 months, if the main income-earner in their family were to suddenly end up being out of work.
Millennials were additionally the ones that typically had the highest amount of per head home related financial debt, at $223,000. Gen X-ers (those aged 36 to 52) had about $202,000 owing. The boomers (ages 53 to 70) had $180,000.
Manulife Bank homeowner debt survey: Manulife CEO states millennials not ready for a financial emergency
Lunny claimed many millennials are not ready to manage an economic emergency because of a poor or no financial education and rising debt. They have seen their home loan related financial debt increase greater than any other generation, per the study.
The study revealed a couple of various other distinctions between the generations. Practically half, (45%), of millennial home owners stated they got funding from their family when acquiring their very first residence. This compares to 37% of Generation X’ers and 31% of baby boomers.
Manulife Bank homeowner debt survey: What should you do if you have too much debt?
Could you handle all your debt obligations if on your next mortgage renewal, you had a mortgage rate increase of only 1%? Do you not have any money put away for a financial emergency? Do you worry how you are going to pay your other bills on time?
The Ira Smith Team is here to get you back on track to debt free living Starting Over, Starting Now. We can solve your problems with immediate action and the right plan for moving forward. All it takes is one phone call to book your free, no obligation consultation. Call us now.
Managing your personal finances may seem like a good idea in theory but according to Eric Kirzner, a professor of finance at the Rotman School of Management in Toronto, “Going solo on your financial future probably isn’t worth the risk”. Never-the-less many Canadians are under the mistaken impression that managing their personal finances is a DIY project.
Managing your personal finances: How knowledgeable are Canadians about personal finance?
According to a recent survey by Tangerine:
Only 50% of Canadians surveyed consider themselves knowledgeable when it comes to personal finances
39% consider their personal finance knowledge satisfactory, saying they only have enough knowledge to get by
12% say they have limited or no knowledge
Managing your personal finances: Why aren’t more Canadians hiring financial planners?
There are a lot of misconceptions about financial planning – it’s only for the rich or young, or that it’s too expensive. And, many Canadians think that financial planning is only about budgeting or retirement planning.
Managing your personal finances: What is a financial plan?
A financial plan is a roadmap that shows you where you are today and helps you define your financial goals and aims for the future. And it provides you with the tools, information and structure to help your realize your financial goals and aims. A study by the Financial Planning Standards Board reports that 69% of Canadians still don’t have a comprehensive written financial plan to meet their life goals.
Managing your personal finances: What are the benefits of financial planning?
A study conducted on behalf of the Financial Planning Standards Council has shown that:
People who engaged in comprehensive financial planning have higher levels of financial and emotional well-being
Individuals with a financial plan have a better handle on their cash flow, have a plan to pay down debt and are more ready for emergencies
They have a better understanding of their investments, they know what to do to retire comfortably and have greater peace of mind
Managing your personal finances: Why do I need a financial plan?
According to the Government of Canada a good financial plan will help you understand what your choices are today and in the future, reduce uncertainty about the future and help you make good decisions. A financial plan will answer these types of questions:
Metro Vancouver’s high rental fees and salaries for skilled retail staff aided the demise of the 102-year-old shoe-store chain Ingledew’s. Ingledew’s is the latest retailer in Canada to become bankrupt. One of the most compelling of all the retail bankruptcy issues today, is the constant customer practice of identifying the product in bricks-and-mortar shops and then after buying online from other stores. There are others on the retail bankruptcy watch list for the same reasons.
Retail bankruptcy watch list: And what about the future of our malls?
“I worry that the shopping mall that we understand so well today, in as several as five to 10 years, will be totally different,” he informed Business in Vancouver. He predicts a slew of stores having a hard time and landlords clambering to find new methods to attract consumers.
Ingledew stated that costs and debt rose because of:
the amount of money it took to open these gorgeous new shops;
the lease rates paid to mall property owners for rent; and,
the wages paid to get and retain excellent people to be knowledgeable, treat the consumer well and properly represent the company.
He further stated that the costs were far overtaking any type of gains being seen in sales in stores.
These pressures, particularly the fad of buyers dealing with physical shops as display rooms, has Ingledew being afraid that there will be an earthquake of adjustment can be found in the retail industry in the next years.
Retail bankruptcy watch list: It is a North American issue
North American merchants are shutting greater than 3,600 stores this year to stanch losses. Retailers are also declaring bankruptcy at a staggering rate. Wal-Mart is now consuming their shed market share, according to Moody’s expert Charlie O’Shea.
He and a green bay bankruptcy lawyer debated at length with Ingledew and they agreed, nonetheless, that retail is quickly developing and stated the ultra-competitive shoe retail industry specifically is undertaking significant change.
Oxford Properties, for instance, wishes to increase the measure of area dedicated to food and drink sales in its shopping centers– to around 20% from 9%. Other shopping centers are increasingly having art exhibitions, Lego demos and various other demonstrations and events to draw consumers.
Retail bankruptcy watch list: The trending in the USA
In the United States, there are frustrating earnings reports from JC Penney, Macy’s, as well as Nordstrom, against a backdrop of overall distress in the retail market marked by sliding sales and traffic. Retailers are shutting shops and companies filing for Chapter 11 in 2017 in the first 4 months of 2017 are at a rate not seen since the last recession.
Retail bankruptcy watch list: Wal-Mart is investing online
However, it is not just Amazon that is the beneficiary of the distress in the brick and mortar retail environment. There is one major traditional retailer that is crushing it. Wal-Mart recently reported that e-commerce sales rose by 63% in its latest quarter, compared to 29% growth the previous quarter. The firm stated most of these sales were natural via Wal*Mart.com.
“We delivered a solid first quarter and we’re encouraged by the start to the year,” WalMart CEO Doug McMillon said. “We’re moving faster to combine our digital and physical assets to make shopping simple and easy for customers. Our plan is gaining traction.”
Wal-Mart’s $3 billion procurement of the online merchant Jet.com additionally aided the firm boost shopping sales. Wal-Mart also got the Shoes.com domain and is utilizing it to advertise shoes from its Shoebuy.com Inc. subsidiary, which Wal-Mart got in January, simply a few weeks before Shoes.com ceased operating.
Retail bankruptcy watch list: Walmart’s growth is not just online
But Wal-Mart’s development isn’t all online. The firm stated sales at US stores open at the very least for a year, or same-store sales, grew by 1.4%, defeating analyst expectations of 1.3% and also marking the 10th consecutive quarter of same-store sales growth.
Retail bankruptcy watch list: What does your future look like?
Are you unhappy about the direction your debts are taking you? Is shopping putting you into financial ruin? Do you or your company not have enough cash flow to make it through another season? Is the stress of too much debt affecting your health and life?
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Managing your personal finances: Introduction