Tag: personal finances

PAYCHEQUE TO PAYCHEQUE LIFESTYLE: THE HUGE DISCONNECT BETWEEN THE BANK OF CANADA AND EVERYDAY CANADIANS

Post author By Brandon Smith
Post date May 20, 2024

Paycheque to Paycheque Introduction

Living paycheque to paycheque has become a harsh reality for many Canadians, despite the Bank of Canada’s optimistic economic outlook. In this Brandon’s Blog, I delve into the stark contrast between the Bank of Canada’s perception of how households are coping with higher interest rates and the actual struggles faced by everyday Canadians trying to meet their cost of living in Canada.

The term “savings guilt” has emerged as more households find themselves unable to save for the future due to rising living costs and stagnant incomes. Let’s explore this disconnect and shed light on the challenges of living paycheque to paycheque in today’s economic landscape.

Understanding the Concept of Living Paycheque to Paycheque

Definition of Living Paycheque to Paycheque

Living paycheque to paycheque refers to a financial situation where individuals rely solely on each paycheque to cover their expenses. It used to mean that those people were left with little to no savings or emergency funds. Today in our rising cost and higher interest rate environment, it means that more people are having trouble even meeting their required monthly living expenses and certainly nothing to handle emergency expenses.

This lifestyle often leads to financial stress, limited flexibility, and a constant struggle to make ends meet. Individuals living paycheque to paycheque may find it challenging to plan for the future, handle unexpected expenses, or break free from the cycle of paycheque dependency. It highlights the need for better government policies, financial management, savings habits, and support systems to help individuals build a more secure financial foundation.

Real-Life Factors Influencing People Living Paycheque to Paycheque

A person’s financial stability is greatly influenced by a myriad of factors, which can exhibit significant variations. These factors, ranging from personal circumstances such as the security of employment and income levels to external forces like prevailing economic conditions and market trends, hold the power to mould the financial management strategies of individuals. Furthermore, lifestyle choices, spending habits, and the pursuit of financial objectives also exert a profound impact on the decision-making processes. Acquiring a comprehensive understanding of these factors becomes indispensable in effectively addressing the challenges associated with living paycheque to paycheque, and in making judicious financial choices that pave the way towards a more secure future.

Factors Affecting Living Paycheque to Paycheque

When it comes to facing financial challenges, it’s crucial to delve deeper into the root causes that contribute to these obstacles. As a financial adviser who has worked closely with clients grappling with savings guilt and living paycheque to paycheque, I understand the multifaceted nature of these struggles.

One significant aspect of understanding the root causes of financial challenges is identifying the external factors at play. It’s common for individuals to feel personally responsible for not being able to save enough, but the truth is that the affordability crisis is largely influenced by factors beyond our control. The rising cost of essential expenses such as bills, housing, and food coupled with stagnant household incomes can create a daunting financial landscape that makes saving a challenging feat.

Cost of Living in Canada

The increasing cost of living poses a significant worry for numerous Canadians, amplifying the difficulties of living from one paycheque to another. From skyrocketing housing prices to escalating grocery costs, day-to-day expenses continue to surpass income growth, leaving individuals grappling to make ends meet. This financial burden not only affects immediate financial stability but also restricts long-term savings and investment prospects.

With the ongoing rise in the cost of living, more Canadians find themselves compelled to prioritize necessities over discretionary spending, further perpetuating the cycle of dependence on their paycheques. Tackling this issue necessitates a comprehensive approach that takes into account both macroeconomic policies and personal financial management strategies.

Income Disparities and Inflation

Income disparities and inflation exacerbate the challenges faced by Canadians living paycheque to paycheque. As income inequality widens, many individuals struggle to keep up with the rising cost of living, leading to a cycle of financial instability. Inflation further erodes the purchasing power of these individuals, making it increasingly difficult to make ends meet. The combination of stagnant wages and increasing expenses creates a significant burden on those already living on the edge. Addressing these issues is crucial to ensure a more equitable society where all individuals have the opportunity to achieve financial security and stability.

Increasing Consumer Debt

Many Canadians are currently facing the reality of living paycheque to paycheque due to the continuous increase in the cost of living. This unfortunate financial situation has led to a significant surge in consumer debt across the country. Recent statistics reveal that core working-age households, specifically those aged 35 to 64, had the highest debt-to-income ratios in the fourth quarter of 2023. For individuals aged 55 to 64 years, the ratio stood at 160.5%, while for those aged 35 to 44 years, it reached a staggering 247.9%. The debt burden for core working-age households grew at a faster pace than their disposable income, particularly for those aged 55 to 64, as higher debt charges offset their employment income gains.

This concerning trend is directly linked to the rising costs of housing, transportation, and other essential expenses. Struggling to meet their basic needs with limited income, individuals are compelled to rely on credit cards and loans. Unfortunately, this dependence on credit has paved the way for a never-ending cycle of debt, hindering individuals from attaining financial stability.

Addressing this issue requires the attention of policymakers and financial institutions. Solutions must be found to alleviate the burden of living paycheque to paycheque and to effectively tackle the escalating consumer debt in Canada.

Overview of the Bank of Canada’s Role in the Paycheque to Paycheque Lifestyle

Overview of the Bank of Canada

The Bank of Canada assumes a pivotal role in shaping the economic landscape of the nation through the formulation of monetary policies and diligent monitoring of key economic indicators. Serving as the central bank, its primary objective revolves around upholding price stability and fostering a robust economy. By making informed decisions concerning interest rates and inflation targets, the Bank of Canada exercises a significant influence over borrowing costs, investment choices, and the overall trajectory of economic growth.

Nevertheless, it is crucial to acknowledge the evident disparity between the Bank’s perception of how Canadian households are coping with higher interest rates and the harsh reality of numerous families living paycheque to paycheque. This pronounced discrepancy underscores the imperative for a more profound comprehension of the challenges faced by ordinary Canadians.

The Bank of Canada Disconnect to the Canadian Reality

Senior Bank Deputy Governor Carolyn Rogers recently emphasized at a news conference that households seem well-positioned to manage their financial obligations effectively despite the changing interest rate environment.

The Bank of Canada’s view is that during the pandemic, many households and businesses bolstered their liquid assets, providing them with a cushion to navigate economic uncertainties. The trend of mortgage borrowers with flexible rate mortgages making advance lump sum payments highlighted a strategic approach towards debt management, further strengthening their financial positions.

The way the Bank of Canada sees the Canadian economy, while the discussion around lowering borrowing costs is pertinent, as policymakers they are focused on inflation; their focus is on macroeconomics, not microeconomics. They are betting on Canadian households to be able to withstand higher interest rates for an extended period to focus on reducing Canadian economic,recession risks.

The way the Bank of Canada sees it:

Canadians are proactively adjusting to higher interest rates to maintain financial stability.
Households have demonstrated resilience in servicing their debts even amidst rising costs.
The rise in wages and savings has played a crucial role in improving debt management practices.

Yet, one of the primary concerns highlighted by the Bank of Canada is the vulnerability of non-mortgage borrowers, particularly those with high-interest debt made up mainly of credit card and auto loan current debt payments. The central bank’s report indicates that a significant proportion of non-mortgage borrowers are struggling to meet their credit obligations, with some surpassing pre-pandemic levels of payment delinquency. This underscores the importance of monitoring the financial health of all types of borrowers, not just those with mortgages. It also highlights the disconnect between the central bank and everyday working Canadians.

Looking ahead, the forthcoming decisions by Governor Tiff Macklem and his team regarding interest rates are crucial. The upcoming period will offer insights into their view on the effectiveness of policy measures in sustaining economic stability.

Strategies for Breaking the Paycheque to Paycheque Cycle

Mental Health First: Understanding the Root Causes

When it comes to facing financial challenges, it’s crucial to delve deeper into the root causes that contribute to these obstacles. As a licensed insolvency trustee who has worked closely with clients grappling with savings guilt and living paycheque to paycheque, I understand the multifaceted nature of these struggles.

One significant aspect of understanding the root causes of financial challenges is identifying the external factors at play. It’s common for individuals to feel personally responsible for not being able to save enough. Still, the truth is that the affordability crisis is largely influenced by factors beyond our control. The rising cost of essential expenses such as utilities, taxes, housing, and food coupled with stagnant household incomes can create a daunting financial landscape that makes saving a challenging feat.

Chantel Chapman, the CEO and co-founder of Trauma of Money located in British Columbia, aptly points out the importance of questioning the origins of our shame and guilt surrounding financial struggles. Many individuals allocate a substantial portion of their income towards meeting basic needs, leaving little room for emergency savings or investment. This financial strain can lead to feelings of inadequacy and health issues, especially when comparing your household finances to others who appear to effortlessly save.

Moreover, external factors like economic fluctuations, high rental costs, and interest rates can significantly impact an individual’s ability to save. Research conducted by Coast Capital revealed that a considerable segment of the Canadian population experiences financial shame, which can take a toll on mental and emotional well-being. It’s crucial to break free from this guilt cycle by acknowledging and challenging these negative self-perceptions.

By recognizing the connection between our thoughts and physical responses, we can begin to untangle the source of our guilt. Distinguishing between internal and external guilt is a pivotal step in regulating our nervous system and paving the way for practical solutions. Seeking support from friends, undergoing budget reviews, and adjusting spending priorities are effective strategies for combating financial guilt.

It’s essential to de-personalize guilt and understand that everyone’s financial journey is unique. The culture of comparison, amplified by social media, can further exacerbate feelings of inadequacy and financial guilt across various age groups. Young individuals may feel pressured to save for major milestones like purchasing a home, parents may grapple with securing their children’s future, and individuals nearing retirement may worry about meeting their savings goals.

Overcoming savings guilt necessitates a shift in mindset, heightened self-awareness, and a readiness to challenge societal norms of comparison and perfection. By reevaluating our relationship with money, acknowledging external influences, and taking proactive steps toward financial well-being, we can liberate ourselves from the cycle of guilt and forge a path toward a more secure financial future.

Creating a Household Budget and Sticking to It

Another essential strategy for alleviating ‘savings guilt’ is setting realistic savings goals and budgeting monthly payments effectively. It’s important to create achievable milestones for personal finances that reflect your income, expenses, and long-term aspirations. By breaking down savings targets into manageable increments, the process becomes less daunting and more attainable.

Preparing a realistic monthly budget and sticking to it s also key for both living within your means and for successful savings management. By tracking income and expenses, individuals can identify areas where adjustments can be made to optimize savings potential. Implementing strategies such as automatic transfers to a savings account or cutting back on non-essential expenses can contribute significantly to reaching financial goals.

Taking the initiative to actively participate in financial planning and actively seeking expert advice can result in gaining a clear understanding and enhanced assurance when making important financial choices.

Establishing attainable savings targets and effectively managing one’s budget are essential measures in addressing feelings of guilt associated with saving money. By adopting these approaches and actively making sound financial decisions, individuals can conquer the burden of ‘savings guilt’ and pave the path towards a more stable and secure financial future.

While cutting expenses and adopting frugal practices can aid in the savings process, exploring alternative avenues to increase earnings is equally important. Leveraging employee benefits, focusing on long-term financial objectives, and tracking progress can instill a sense of direction and purpose in one’s financial journey. It’s crucial to get creative with income streams and consider options like taking on second jobs or side hustles to bolster financial stability.

Prioritizing Debt Repayment and Building an Emergency Fund

Living paycheque to paycheque has become a common reality for many Canadians. Surveys have reported that about half of Canadians are $200 or less away from financial insolvency every month. This highlights the importance of household budgeting, the need for debt repayment and creating an emergency fund.

But where will this money come from when it is costing Canadians all or more than their entire paycheques for necessities? With rising living costs and stagnant wages, it is crucial for individuals and families to carefully manage their finances. A well-planned household budget can help individuals track their expenses, prioritize spending and save for future goals. Additionally, establishing an emergency fund can provide a safety net for unexpected expenses such as job loss, medical emergencies, or home repairs. Canadians need to prioritize budgeting and creating an emergency fund to avoid financial instability and build a secure financial future.

However, right now, the data suggests Canadians do not have the means to save for financial freedom as they still need to borrow on credit cards and lines of credit to make up for an income gap.

Government Programs and Support

Prime Minister Justin Trudeau is also focused on macroeconomic issues and ignoring the message about affordability we get daily. In his April 2024 address to the Canadian Chamber of Commerce, he underscored the importance of intergenerational opportunity. He emphasized Canada’s role as a global leader, particularly in innovation, artificial intelligence, clean energy and technology. His remarks resonated strongly, emphasizing the critical role of proactive engagement in shaping a brighter future for Canada and the world. Big on words, short on solutions.

To address the growing issue of more Canadian households living paycheque to paycheque, policymakers should consider implementing measures such as increasing the minimum wage to reflect the rising cost of living, providing tax incentives for saving and investing (instead of just raising revenue to try to pay for the massive deficits the Liberal federal government has been running for years) and offering real affordable housing options. Additionally, financial education programs should be integrated into school curriculums to improve financial literacy from a young age. By taking these steps, policymakers can help alleviate the financial burden on Canadian households and promote a more sustainable and secure financial future for all citizens.

Paycheque to Paycheque FAQs

Why are so many Canadians living paycheque to paycheque?

Many Canadians are living paycheque to paycheque due to the rising cost of living, stagnant wages, and high levels of debt.

What lifestyle changes can help alleviate end-of-month stress for those living paycheque to paycheque?

Some lifestyle changes that can help include cutting back on unnecessary expenses, meal planning to reduce food costs, and finding ways to increase income through side hustles or part-time work.

How can budgeting techniques help those living paycheque to paycheque?

One can enhance their financial management skills and effectively allocate their funds by employing various budgeting strategies. Techniques, such as formulating a monthly budget, meticulously monitoring expenses, and establishing financial objectives, enable individuals to gain better control over their finances and effectively prioritize their expenditures.

What are some ways to increase income for those living paycheque to paycheque?

Increasing income can be achieved through finding a higher-paying job, taking on freelance work, selling unused items, or investing in education or skills training to enhance career opportunities.

How can managing debt be a challenge for those living paycheque to paycheque?

Managing debt can be challenging for individuals living paycheque to paycheque as it can be difficult to make regular payments and reduce debt while also covering essential living expenses. Finding ways to lower interest rates, consolidate debt, or seek financial counselling can help in managing debt effectively.

Paycheque to Paycheque Conclusion

We must address the stark reality of Canadian households living paycheque to paycheque. The disconnect between the Bank of Canada’s perception and the lived experiences of everyday Canadians demands urgent attention. To alleviate the financial burdens and “savings guilt” faced by many, a call to action for improved economic policies is essential. By implementing targeted measures that address income disparities, rising costs of living, and promoting financial literacy, we can pave the way for a more financially secure future for all Canadians. It is time for policymakers to prioritize the well-being of their citizens and enact meaningful change.

I hope you have enjoyed this paycheque to paycheque 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 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.

The information provided in this Brandon’s Blog is intended for educational purposes only. It is not intended to constitute legal, financial, or professional advice. Readers are encouraged to seek professional advice regarding their specific situations. The content of this Brandon’s Blog should not be relied upon as a substitute for professional guidance or consultation. The author, Ira Smith Trustee & Receiver Inc. as well as any contributors to this Brandon’s Blog, do not assume any liability for any loss or damage resulting from reliance on the information provided herein.

Brandon Blog Post

THE GAIL VAZ OXLADE BUDGET PROCESS: EMBARK ON YOUR DEBT-FREE JOURNEY TO ESSENTIAL FINANCIAL FREEDOM!

Post author By Brandon Smith
Post date February 5, 2024

Gail Vaz Oxlade budget

Gail Vaz Oxlade Budget: Introduction

In July 2016, Gail Vaz-Oxlade announced her retirement, concluding a significant period of dispensing personalized financial counsel to Canadians. She was known as Canada’s no-nonsense money expert. She dispensed advice through both print and as the presenter of well-received television series such as Gail Vaz-Oxlade’s Til Debt Do Us Part, Princess, and Money Moron. She was well known for her Gail Vaz Oxlade budget process, helping Canadians to live within their means.

In this Brandon’s Blog, I want to discuss what could be a real Gaild Vaz Oxlade budget case to show how her techniques can be used to help people reduce debt and live a financially stress-free life. Read the inspiring story of Mick and Bonnie as they overcome financial challenges to improve both their financial life and their future.

Gail Vaz Oxlade Budget: Assessing Your Personal Financial Situation

The sustaining problem people have with managing their funds usually manifests as an overwhelming weight upon them, negatively affecting their holistic well-being and life’s essence. Mick and Bonnie encapsulate this situation. Their ongoing grappling with significant financial hurdles bolsters a ruthless cycle of distress and exasperation, building an unrelenting life filled with concern and discontent.

Understanding Your Expenses: The Impact of Impulse Shopping and Lack of Financial Planning

Among the major contributing factors to Mick and Bonnie’s financial battles is their propensity toward impulse buying. They frequently find themselves making unplanned purchases without taking into consideration the long-term effects. This spontaneous habit not only diminishes their available funds but also prevents them from allocating cash in the direction of more necessary costs, such as necessary living expenses and financial savings.

Moreover, the couple’s absence of economic preparation aggravates their problems. Without a solid process like the Gail Vaz Oxlade budget steps, Mick and Bonnie struggle to prioritize their expenses effectively. They find it challenging to separate desires from needs, which eventually brings about overspending and a constant state of monetary pressure.

The Burden of Debt and Unpaid Taxes

As if impulse shopping and bad financial planning were not enough, Mick and Bonnie likewise need to manage the concern of other debt and unsettled taxes. With time, they have built up a significant amount of financial obligations from credit cards, loans, and various other borrowings to fund their lifestyle.

Regrettably, their lack of ability to manage their financial debt effectively just worsens their economic situation. High rates of interest, late fees, and collection calls just add to their anxiety and stress. The constant stress of satisfying these economic commitments leaves them feeling overwhelmed and caught in an endless cycle of financial debt.

In addition to these mounting financial obligations, Mick and Bonnie also have unsettled tax obligations weighing heavily on them. The failure to meet their tax liabilities has led to fines and built-up interest, exacerbating their economic troubles. They currently not only have to contend with their existing debt but also deal with the possibility of legal effects if they do not address their tax issues without delay. They need a household budget as a first step towards financial rehabilitation.

Navigating Towards Financial Stability

Despite their present financial battles, Mick and Bonnie have a twinkle of hope. Identifying the need for modification, they have begun taking action toward monetary stability. They are dedicated to getting out of the cycle of impulse purchasing and have started carrying out a Gail Vax Oxlade budget system that permits better monetary planning and decision-making.

Furthermore, they are seeking expert help to handle their debt effectively. By working with financial advisors or non-profit community organization-based credit counsellors, they hope to develop a sensible payment plan and negotiate much better terms with their lenders.

Resolving their tax obligation problems is also a leading priority. Mick and Bonnie are actively engaging with tax specialists to understand their tax problems and check out choices not only for resolving their tax obligation financial debt but also how to stop falling further behind. They agree to remedy their blunders and work towards a clean financial slate.

While the journey towards monetary security may be tough, Mick and Bonnie figured out how to conquer their present battles. By incorporating much better financial routines, looking for specialist support, and taking responsibility for their actions, they are now starting down the long road of working towards a brighter financial future.

Gail Vaz Oxlade budget

Gail Vaz Oxlade Budget: Setting Up Your Initial Budget

To manage your money properly, sometimes having professional help to get you started is a smart thing to do if you are unsure of the process. Mick and Bonnie believed that was their situation. They reached out to a professional to teach them the Gail Vaz Oxlade budget process. This was a major step for them in their journey to achieve financial literacy and wellness.

Consulting a Financial Expert

Mick alongside Bonnie comprehended the persistent challenge they had faced concerning their monetary matters over a prolonged period. Living consistently from paycheque to paycheque, they found themselves incapable of accumulating savings or delving into potential investments for what lay ahead. It dawned on them that seeking out an individual capable of offering astute counsel and aiding in steering toward more judicious financial choices was imperative.

Following an extensive exploration and the solicitation of suggestions, Mick and Bonnie stumbled upon a respected financial maestro with a proven history of aiding both individuals and households in enhancing their financial stability. Arranging a get-together, they readied themselves to articulate the financial hurdles they encountered and the lofty ambitions they harboured.

Challenges and Reflection

In the course of their interaction with the financial expert, Mick and Bonnie encountered an array of hurdles designed to enhance their financial landscape. These hurdles aimed to pinpoint zones where their expenditures were out of whack, exceeding anything close to normal or for sure not what they could afford. The purpose was to trim away superfluous costs and to craft a pragmatic Gail Vaz Oxlade budget.

At first, these hurdles appeared formidable to Mick and Bonnie. It dawned on them that a shift in their perspective and strategy toward finances was imperative. It marked a juncture of gut-wrenching yet necessary introspection as they came to terms with their prior financial errors and pledged themselves to instigate constructive alterations moving forward.

Creating a Budget and Cutting Down on Spending

Under expert guidance, Mick and Bonnie commenced the intricate process of formulating an all-encompassing budget. Amassing all their financial records, they meticulously scrutinized their earnings, outlays, and outstanding debts, concocting a strategic scheme to judiciously apportion their funds.

Cognizant of the significance of stashing away funds, Mick and Bonnie pinpointed sectors ripe for trimming unnecessary expenditures. Termination of scarcely utilized subscriptions, curbing dining outs, and adopting a more mindful approach to grocery shopping ensued. Simultaneously, they embarked on measures to curtail utility bills and delved into avenues exploring debt refinancing for favourable interest rates.

The creation of a monthly personal budget approach morphed into an ongoing commitment for Mick and Bonnie. They grasped its necessity for sustained dedication and self-restraint. Thus, they initiated a routine of diligently monitoring their expenses, periodically revisiting their Gail Vaz Oxlade budget blueprint, and effecting alterations whenever necessary.

The Benefits of Seeking Professional Help

The fruits of their pursuit of professional assistance swiftly began to manifest for Mick and Bonnie. With a structured budget in tow, a newfound sense of command over their financial affairs emerged. Prioritizing financial objectives and deliberate fiscal choices became their forte.

Furthermore, their enhanced fiscal status bestowed upon them the capacity to accumulate savings and delve into investments earmarked for what lay ahead. Initiating emergency fund accounts to cover unexpected expenses, channelling contributions toward retirement accounts, and exploring avenues for wealth augmentation became their modus operandi. Alongside, a tranquillity settled in, diminishing the weight of financial strain in their daily lives.

The trajectory of Mick and Bonnie’s financial expedition underwent a profound transformation through their engagement with professional aid. It not only furnished them with vital guidance but also bestowed upon them the autonomy to steer their fiscal trajectory. Valuable insights were gleaned on the intricacies of budgetary prudence, the art of saving, and the significance of well-informed financial deliberations.

By seeking counsel from a financial expert, Mick and Bonnie unlocked a trove of wisdom and proficiency. They triumphed over their fiscal obstacles, laying the groundwork for a more promising fiscal future. The decision to seek professional guidance undoubtedly stands as one of their most astute choices to date.

Gail Vaz Oxlade budget

*Gail Vaz Oxlade Budget: Implementing Your Budget Plan***

Life demands more than mere good intentions; you need to show up. It necessitates the fortitude to act upon and see through our aspirations. This rings particularly true in the realm of finances, where executing transformative changes paves the way for a brighter tomorrow. Now that they got the Gail Vaz Oxlade budget under their belt, it pointed out other areas that needed fixing to truly transform their lives.

Mick: Filing Delinquent Taxes and Automating Payments and Setting Aside Funds For Emergencies

Mick, by nature, tended toward procrastination, particularly to more stress-inducing things, such as filing income tax returns. Year after year, he avoided filing until the eleventh hour, occasionally missing deadlines, leading to a mounting heap of unpaid taxes and accompanying fines. However, a turning point arrived when Mick resolved to break this pattern. Armed with all requisite documents, he finally resolved to address his overdue taxes.

Yet, Mick’s resolve extended beyond rectifying past tax discrepancies. He pledged to initiate a regimen of regular savings. Instituting automated transfers from his chequing account to automatic savings accounts, each with a specific purpose. He meticulously crafted a budget, ensuring his expenditures aligned harmoniously with his actual income. Mick grasped the significance of proactive measures and fiscal responsibility in fortifying his financial stability.

Bonnie: Earning Extra Income through Piano Lessons

Bonnie was a very experienced pianist. At one point she seriously considered becoming a professional musician. However, the restrictions enforced by her full-time work and myriad of other duties got in her way. After completing their Gail Vaz Oxlade budget two things jumped out to Bonnie. The first was that she and Mick not only needed to cut down on expenses, but they also needed to find a way to increase their income. The second realization that hit her was that she had the skills already to earn extra money by giving piano lessons. Therefore, she started giving piano lessons in her spare time.

Through this positive action, Bonnie not only earned the extra income she needed, but she also felt closer to really being a professional musician. The extra money helped them pay down debt and she found new meaning to her life at the same time.

Finding Joy without Excessive Spending

Often, we connect enjoyment and pleasure with big spending. However, it’s possible to have a fun time without breaking the bank. Mick and Bonnie discovered this beneficial lesson when they became parents. They realized that investing top-quality time with their children was more crucial than material belongings or pricey entertainment.

Mick and Bonnie discovered pleasure in inexpensive activities. They went for family hikes, outings and picnics in the park, and played games at home. These not only enhanced their bonds as family members but also taught their children beneficial lessons regarding gratitude and the true significance of happiness.

By taking action and redefining what brings them pleasure, Mick and Bonnie were able to save money and create enduring memories with their kids. They acknowledged that it’s not the cost that matters however the quality of the experience and the time invested with each other.

Finally, taking action is vital for achieving our objectives and making positive changes in our lives. Mick’s story shows us the significance of resolving financial obligations, while Bonnie’s tale shows us the worth of using our skills and interests to create added income. Last but not least, Mick and Bonnie remind us that joy can be located in things that do not require extreme spending to have a satisfying life.

Gail Vaz Oxlade Budget: Overcoming Challenges and Strengthening the Relationship

In the face of adversity, the remarkable love of Mick and Bonnie burgeoned into an extraordinary tale. Their resolute determination to overcome their financial hardships using the Gail Vaz Oxlade budget process stood as a testament to their unbreakable bond—a bond unfazed by tribulations.

Mick’s steadfast dedication to bolstering Bonnie’s musical aspirations, even at the expense of their leisure time together, proved profoundly inspiring. Bonnie, inundated with appreciation, revered his steadfast faith in her dreams and his readiness to go to considerable lengths to fulfill their financial ambitions. Together, they sought solace in their shared odyssey, morphing hindrances into pivotal milestones.

Their mutual affection deepened while navigating tumultuous seas, fearlessly engaging in candid dialogues about their profound anxieties. United, they confronted every ostensibly insurmountable challenge head-on, emerging triumphant in due course.

Gail Vaz Oxlade budget

Gail Vaz Oxlade Budget: Conclusion

I hope you enjoyed this Gail Vaz Oxlade budget Brandon’s Blog post. If you’re struggling with managing your overwhelming debt in this high-interest environment, don’t worry – there are some things you can do to take control of the situation.

First, it’s important to create a realistic budget spreadsheet and track your expenses. From there, you can prioritize your debt repayment plan and make consistent payments to chip away at what you owe. It’s also a good idea to seek professional financial advice to help guide you through the process. Just remember, managing debt is a gradual process that requires commitment and determination, but you can do it! So don’t hesitate to reach out for help from financial professionals.

Individuals and business owners must take proactive measures to address financial difficulties and promptly seek assistance when necessary. It is crucial to recognize that financial stress is a prevalent concern and seeking help is a demonstration of fortitude, rather than vulnerability. Should you encounter challenges in managing your personal finances and find yourself burdened by stress, do not delay in pursuing aid.

Revenue and cash flow shortages are critical issues facing people, entrepreneurs and their companies and businesses with debt problems that are in financial distress. Are you now worried about just how you or your business are going to survive? Are you worried about what your fiduciary obligations are and not sure if the decisions you are about to make are the correct ones to avoid personal liability? Those concerns are obviously on your mind.

The Ira Smith Team understands these financial health concerns. More significantly, we know the requirements of the business owner or the individual who has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own and it does not mean that you are a bad person. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team uses innovative and cutting-edge methodologies, to adeptly navigate you through the intricacies of your financial challenges, ensuring a resolution to your debt-related predicaments without resorting to the rigours of the bankruptcy process. We can get you debt relief now!

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a Trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

The Ira Smith Trustee & Receiver Inc. team understands that people facing money problems require a lifeline. That is why we can establish a restructuring procedure for you and end the discomfort you feel.

Call us now for a no-cost consultation. We will listen to the unique issues facing you and provide you with practical and actionable ideas you can implement right away to end the pain points in your life, Starting Over, Starting Now.

Gail Vaz Oxlade budget

Tags actual income, automatic savings accounts, budget approach, budget spreadsheet, debt repayment plan, debt repayments, emergency fund, emergency fund accounts, financial literacy, gail vaz-oxlade, Gail Vaz-Oxlade budget, Ira Smith Trustee, personal budget, personal finances, unexpected expenses

Brandon Blog Post

FINANCIAL AWARENESS MONTH: UNDERSTANDING FINANCIAL LITERACY TO MANAGE MONEY WISELY

Post author By Brandon Smith
Post date January 17, 2024

Financial Awareness Month

<h2Financial Awareness Month

Financial Awareness Month: Introduction

In today’s world, it is essential to have a good understanding of money matters and exactly how to handle your money carefully. November is Financial Awareness Month in Canada. In the United States, April is Financial Literacy Month. These two months chosen as Financial Awareness Month does not make any sense to me. At the beginning of every New Year, many people resolve to better themselves. One common resolution deals with gaining more financial literacy or reducing the amount of debt a person carries. So shouldn’t January be Financial Awareness Month?

In this Brandon’s Blog, we want to help raise the public awareness of Canadian financial literacy. We try to talk about the importance of financial literacy by covering the following money tips:

How Financial Awareness Month emphasizes understanding financial literacy for prudent money management.
Key aspects of financial literacy include distinguishing needs from wants, the importance of budgeting, wise debt handling, and saving for a secure future.
The significance of financial literacy for empowerment, achieving goals, and the basics of managing money effectively.
The power of compound interest, the role of different account types (savings, chequing, credit cards), and the need for consistency in financial planning.
Overall, Canadian Financial Awareness Month guides individuals toward a path of financial literacy and concludes by emphasizing its importance.

By the end of this article, you will be geared up with the needed tools to make informed financial choices and develop a safe future on your own.

Financial Awareness Month: Understanding the Difference between Needs and Wants

One way to show economic awareness is with story-telling. It is additionally an excellent way to show youngsters. The perfect time to begin your financial journey and achieve financial literacy to make better financial decisions is when you are young. So below is our Financial Awareness Month way to comprehend the difference between wants and needs.

For individuals like Sarah, it continues to be necessary to juxtapose their needs versus their wants. We need to be critical of what adds to health and basic survival and what engenders joy and satisfaction. By doing so, it can create judicious financial paths, thus guaranteeing a secure and prosperous future.

At daybreak, the sun’s radiant beams adorned the sky, setting the stage for Sarah’s jubilant awakening on the most exceptional day of the entire year – her birthday, a day bathed in splendour! An exhilarating surge of anticipation coursed through her veins, propelling her swiftly downstairs. Each pulsation of her heart carried the palpable thrill of what lay ahead. Like a harmonious chorus of affection, birthday greetings from her devoted parents and heartfelt presents from her beloved friends and family shimmered akin to celestial bodies, enveloping her in a tender embrace. And as the pinnacle of it all, an enticing breakfast awaited her, a sumptuous banquet befitting royalty.

As Sarah and her parents head out to the toy store, Sarah’s father starts to explain the relevance of distinguishing between needs and wants. He pointed out that needs, such as food, water, clothes, and a roof over your head, are important for survival, whereas wants, although not essential, can bring happiness and contentment.

Infused with the enchantment of her birthday, Sarah embarked on a spree of shopping, her thoughts teeming with vivacious hues. She delved profoundly into the recesses of her wants and yearnings, unravelling a newfound comprehension of her financial expedition. With every step, her assurance ascended, enabling her to make astute selections. Resolute in seizing every available prospect, the cosmos appeared to whisper boundless prospects into her eager receptiveness. With inexhaustible vitality and resolute determination, Sarah ventured forth into the realm, poised to inscribe her effervescent dreams upon life’s intricate canvas.

Sarah, at the ripe age of ten, radiated sheer delight while commemorating her birthday. Her parents she adores had pledged an extraordinary gift—a fresh, handpicked toy of her preference—eliciting an eager anticipation to uncover its identity.

Entering the toy emporium, Sarah basked in contentment regarding all her possibilities. Methodically weighing her options, she meticulously selected items aligning with her wants within the financial bounds set by her parents. Her father commended her fiscal acumen, affirming, “Impressive Sarah”.

At that same moment, Sarah began to examine her genuine needs versus cravings. She discerned that, notwithstanding her yearning for that new doll, a more pragmatic choice was to leave the toy store in search of a fresh pair of shoes, given the discomfort stemming from her current footwear. She realized that distinguishing between desires and necessities marks the primary stride toward creating an astute financial ecosystem.

When she told her parents what she was thinking, her father said “Sarah,” her papa inquired, “you have just stopped yourself before deciding on a toy to think about your true needs versus your wants?” Considering for a moment, Sarah responded, “I need nourishment, hydration, and a place to live. I also need to have a comfortable pair of shoes for when I walk to and from school. However, I want the unique toy showcased on the television.” Her papa responded sagely, remarking, “Indeed, Sarah. Prioritizing requirements over desires is a critical aspect of our decision-making.”

In the ensuing weeks, Sarah continued to refine her prioritization of necessities and demands. Accepting the understanding that not all needs held equal significance for her total health, she embraced a conscientious approach to expenditures, assigning her allowance deliberately. Sarah was well on her way to acknowledging all her desires, but to focus her spending plan and to be monetarily accountable.

Financial Awareness Month

Financial Awareness Month: The Importance of Budgeting

In the hamlet of Thriftyville, a tale unfurled about a young inhabitant named Lindsay. Lindsay epitomized diligence, nurturing aspirations of fiscal fortitude and triumph. Alas, despite her toil, she grappled incessantly to meet her needs, perennially falling short of the resources necessary to meet her goals.

A pivotal moment dawned upon Lindsay when she resolved to emancipate herself from the cycle of paycheque constraints and perennial financial anxieties. Determined to metamorphose her circumstances for better financial outcomes, she embarked on a quest to seize command over her finances. It was then that she unearthed the potent tool of budgeting.

Crafting a budget transcended mere numerical exercises—it epitomized a transformative ethos. By orchestrating expenditures in alignment with earnings, she orchestrated a symphony ensuring every cent found purpose and she was able to begin living within her means. It resembled charting a course, endowing her finances with a navigational blueprint, directing them precisely toward their intended and necessary destinations.

Lindsay, emboldened by a newfound resolve, seated herself at her kitchen table, meticulously listing her diverse streams of income. Her list encompassed her steady salary, occasional side endeavours, and sporadic monetary gifts from her doting parents. A semblance of optimism flickered within as the numbers aggregated—a faint whisper of possibility that perhaps this approach to budgeting held promise.

Subsequently, Lindsay meticulously cataloged her outflows, meticulously categorizing them into segments—rent, utilities, groceries, transportation, income tax and leisure. The revelation of where her finances ebbed was illuminating. It dawned upon her that her expenditures in dining out and retail therapy eclipsed her initial estimations.

Armed with a comprehensive picture of her earnings and spending, Lindsay initiated adjustments. She opted to curtail her dining escapades, embracing the culinary arts within her abode. Additionally, she terminated her dormant gym subscription, opting for invigorating runs through the verdant park instead. These minor alterations facilitated the liberation of surplus funds, earmarked for her savings goals.

Among Lindsay’s aspirations loomed the ambition to nurture an emergency reserve. The apprehension of unforeseen job loss or an unscheduled emergency had perennially plagued her thoughts. Entrusting her budget to allocate a designated sum each month toward this contingency fund furnished her with a semblance of solace, a shield against uncertainties, fostering a tranquil state of mind.

Over time, the fruits of Lindsay’s budgeting labour began to manifest. She discerned a notable shift—no longer tethered to credit cards to bridge fiscal gaps, she accelerated the payment of her debts. Furthermore, a newfound mastery over her finances imbued her with the fortitude to resist impulsive expenditures.

Arguably the paramount boon of her budgeting journey was the power to prioritize her expenditures. Lindsay unearthed the revelation that desires did not always equate to necessities. Allocating her funds exclusively to indispensable items empowered her to direct her gaze steadfastly toward long-term objectives—such as homeownership and retirement savings—cultivating a sense of purpose in her fiscal stewardship.

Lindsay’s newfound prowess in finance acted as a catalyst, sparking a fire of fiscal confidence among her peers. Witnessing the transformative effects in her financial life, they aspired to embrace that same liberation and serenity. Lindsay emerged as an ardent advocate for budgeting, a zealot eager to disseminate her wisdom and insights to anyone receptive.

In summation, budgeting transcends the realm of mere arithmetic and fiscal pruning. It embodies the assertion of authority over one’s financial trajectory, orchestrating deliberate choices with money. Through a budget’s prism, one can delineate priorities, circumvent gratuitous debt, and pave a path toward future aspirations. Lindsay’s journey stands as a testament—akin to her, you possess the potential to rewrite your financial narrative and craft a tale of triumph.

Financial Awareness Month

Financial Awareness Month: Debt and Borrowing Wisely

In the quaint township of Financia, dwelled a diligent young soul named Pamela. Her ethos revolved around diligent toil and a creed of fiscal prudence. Pamela adhered staunchly to the doctrine of living within her means, always circumspect about engaging in indebtedness, recognizing its utility solely in essential circumstances.

To Pamela’s discerning mind, debt represented borrowed funds from external sources, entailing an obligatory reimbursement, typically compounded with interest. Its manifestations spanned a spectrum—from loans and credit cards to mortgages. While debt wielded the potential for immediate fiscal respite, it also bore the weighty obligation of repayment, coupled with the encumbrance of accrued interest.

Choosing Wisely:

Pamela, an advocate of prudent choices, approached borrowing with sagacity, comprehending its far-reaching consequences. She meticulously appraised her options, weighing interest rates, terms, and her capacity for repayment with meticulous care.

Prior to embracing any form of indebtedness, Pamela conducted a self-inquiry, probing the necessity of the endeavour. She acknowledged the justification of borrowing for imperative outlays like education or homeownership while remaining vigilant against the allure of debt for capricious acquisitions or superfluous indulgences.

Managing Debt:

Deftly navigating the terrain of debt management, Pamela acknowledged the parity of responsibility in its stewardship. Methodically, she crafted budgets to ensure alignment with monthly repayments. Recognizing the perils of missed or delayed payments—bearing not only financial penalties but also repercussions on her credit standing—she remained steadfast in upholding punctuality.

Moreover, Pamela exhibited a penchant for exceeding the minimal repayment thresholds whenever feasible. This tactical move aimed to curtail the overall interest outlay in the long haul, accelerating the debt settlement process.

Financial Awareness Month

Financial Awareness Month: Saving To Build a Secure Future

Recognizing the fleeting respite that debt might offer, Pamela maintained an astute comprehension of the paramount significance of saving for forthcoming necessities or aspirations. In her financial lexicon, saving entailed the habitual allocation of funds, earmarked to fulfill future milestones or navigate unforeseen financial exigencies.

Setting Financial Goals:

Before embarking on her saving odyssey, Pamela meticulously charted her financial course by delineating explicit goals. These milestones served as her compass, guiding her in allocating savings and serving as motivational beacons to adhere to her path.

Among Pamela’s array of financial aspirations stood the edifice of an emergency fund, a reserve designated to cushion unforeseen fiscal blows. Nestled alongside was her pursuit of squirrelling away funds for retirement, securing her financial future. She also harboured dreams of a lavish vacation, a tangible goal that spurred her savings endeavour. With these meticulously defined aims, Pamela discovered an enhanced ability to apportion a fraction of her income toward her savings, bolstered by the clarity these goals afforded her.

The Power of Compounding:

Pamela had grasped the potency of compounding—an alchemy that amplified her savings over time. Initiating her savings journey early and maintaining steadfast consistency, she harnessed the leverage of compounding interest, witnessing the exponential growth of her funds as they multiplied over time.

Emergency Fund:

Among Pamela’s paramount objectives stood the establishment of an emergency fund, a pinnacle in her financial agenda. Ever cognizant of the capricious nature of unforeseen expenses—a medical issue, a vehicle repair, or even an abrupt job loss—she knew the paramount significance of creating this fiscal buffer. The emergency fund poised itself as a financial bastion, affording Pamela a safety net to weather the tempestuous tides of such unpredictable events, shielding her from resorting to indebtedness during arduous times.

Consistency is Key:

Pamela embraced consistency, cementing it as a cornerstone of her financial ethos. Automating her savings through scheduled transfers from her paycheque to her savings account forged a ritual—a habitual dedication ensuring that saving transcended sporadic endeavours and became an integral part of her routine.

“Saving is not an act, but a habit,” echoed Pamela’s mantra, a reminder she fervently espoused.

Amidst her odyssey of understanding both the advantages and disadvantages of debt and cultivating a savings mindset, Pamela sowed the seeds for a fortified financial tomorrow. She imbibed the wisdom of judicious borrowing, adeptly managing her debt, and nurturing the virtue of unwavering consistency in saving. Through the nexus of informed decisions and the cultivation of prudent financial habits, Pamela embarked steadfastly on the path to financial triumph.

Financial Awareness Month: Different Types of Accounts

Effectively handling your finances stands as a vital skill crucial for achieving your desired financial milestones. Understanding the array of available account varieties, each serving distinct purposes, becomes imperative. Delving into the diverse account types and their individual functions reveals insightful nuances.

Savings Account

A savings option presents an excellent avenue for those aiming to set aside funds for future endeavours. Within this category, you deposit some of your income and accrue interest on the total balance. Although the interest rate might fluctuate, over time it will provide a superior yield in contrast to a chequing alternative. Persistently stashing your funds in a savings account paves the way for gradual, steady growth in your savings pool. Once your savings reach a certain level, more investment products from chartered banks or credit unions become available paying a higher rate of interest yet still preserving your capital from loss.

Chequing Account

Conversely, a chequing account caters to immediate necessities and routine transactions. It furnishes a user-friendly avenue for depositing and withdrawing funds, facilitating bill payments, and purchases, and effortless fund accessibility. Unlike its savings counterpart, a chequing option typically doesn’t yield interest on deposited funds. Nevertheless, it encompasses amenities like cheque-writing capabilities, ATM accessibility, and online banking functionalities, rendering it an efficient account for overseeing everyday expenditures.

Credit Cards

Credit cards serve as a prevalent means for conducting transactions sans the necessity for immediate cash. They furnish a credit line courtesy of the issuing financial entity, enabling borrowing within specified limits. Utilizing a credit card entails borrowing from the card issuer, and mandating repayment within designated intervals to evade incurring interest fees. While credit cards present advantages such as reward initiatives, cashback opportunities, and purchase safeguards, exercising prudence in usage remains paramount to sidestep amassing high-interest credit card debt.

Financial Awareness Month

Financial Awareness Month: The Importance of Financial Literacy

Envision a world where your financial being rests solely in your control, where informed choices about your finances thrive. Herein lies the essence of financial literacy. In our contemporary landscape, where currency wields immense influence, grasping the fundamentals of fiscal management becomes indispensable.

Financial literacy transcends mere perusal of texts or solving intricate mathematical conundrums; it embodies cultivating prudent monetary behaviours and acquiring the acumen and expertise to craft astute fiscal decisions. It entails deciphering the lexicon of finances, empowering you to traverse the intricate tapestry of personal finance with unwavering assurance.

Financial Awareness Month: Empowerment through Knowledge

Mastery in financial literacy serves as the catalyst to steer your financial destiny. Armed with a robust comprehension of personal finance tips, you wield the prowess to deliberate prudently on saving, investing, and allocating your funds. Gone are the days of entrusting others with your finances; instead, you grasp the reins, crafting decisions harmonizing with your aspirations and principles.

A paramount advantage of financial literacy lies in evading gratuitous debt. By assimilating the mechanics of credit, embracing the significance of budgeting, and avoiding the repercussions of lavish spending, you pave the way for sagacious fiscal choices that shield you from indebtedness. This insight empowers you to live within your means, steering clear of the strain and fiscal encumbrance entwined with debt.

Financial Awareness Month

Financial Awareness Month: Achieving Financial Goals

Financial literacy emerges as a pivotal tool in propelling you toward attaining your financial milestones. Whether setting sights on homeownership, entrepreneurial pursuits, or securing retirement, unravelling the intricacies of currency is paramount. Equipped with the adeptness to orchestrate your earnings, outlays, and investments, you forge a trajectory toward realizing your aspirations.

Furthermore, financial literacy serves as the bedrock for cultivating a robust and thriving financial trajectory. Cultivating commendable fiscal practices—such as consistent saving and judicious investment—acts as a catalyst for nurturing your wealth across time horizons. Armed with apt expertise and skills, you harness the potential for your finances to labour on your behalf, erecting a sturdy fiscal groundwork for yourself and your kin.

Financial Awareness Month: The Basics of Managing Your Money

At its essence, financial literacy embodies grasping the rudiments of managing your finances. It encompasses delving into budgeting, saving, investing, and fortifying your assets. Mastery of these fundamental financial skills empowers optimal utilization of your resources, paving the way toward financial triumph.

Primarily, budgeting strategies stand as the cornerstone of adept financial administration. It entails meticulously monitoring your earnings and expenditures, ensuring alignment with your financial capacity. Through crafting a budget, you allocate resources judiciously, placing emphasis on your fiscal objectives. This enables deliberate spending choices and averts superfluous expenses.

Saving emerges as another pivotal facet of financial literacy. Consistently earmarking a fraction of your income facilitates the creation of an emergency fund for unforeseen outlays and fosters progress toward forthcoming financial aspirations. Saving not only constructs a safety net but also furnishes the liberty to seize emergent opportunities.

The investment serves as the linchpin for augmenting your wealth across timeframes. By comprehending diverse investment avenues—such as stocks, bonds, and real estate—you make informed investment verdicts attuned to your risk tolerance and financial ambitions. Learning about investing for beginners enables your capital to be invested and toil on your behalf, engendering passive income.

Lastly, safeguarding your assets holds cardinal significance in fortifying your financial trajectory. This encompasses procuring insurance coverage, encompassing health, life, and property insurance. Insurance mitigates the impact of unforeseen events, securing financial stability for both yourself and your cherished ones.

Financial Awareness Month

Financial Awareness Month: Your Path to Financial Literacy

The journey of financial literacy spans a lifetime, brimming with continual opportunities for growth. Fortunately, an array of resources stands ready to augment your financial acumen and proficiency. Books, websites, podcasts, and workshops comprise a treasure trove of information at your disposal.

Embark by acquainting yourself with the fundamental tenets of personal finance. Delve into realms such as budgeting, saving, investing, and debt management. Embrace online courses and seek counsel from financial advisors poised to dispense tailored expertise aligned with your unique circumstances.

Moreover, internalize and enact the wisdom acquired by integrating prudent fiscal practices into your daily routine. Scrutinize expenditures, maintain a consistent saving regimen, and evaluate your financial choices. With time, your competence in managing finances burgeons, fostering confidence in steering your fiscal course and making well-informed choices.

Financial literacy transcends numerical figures; it embodies empowerment, enabling the realization of your financial objectives and fortification of your future.

In summation, the essence of financial literacy lies in securing a thriving and secure future. By cultivating commendable monetary practices and assimilating the basics of fiscal management, you chart a course toward astute decision-making, debt avoidance, and attainment of financial milestones. Seize control of your financial destiny by investing in financial education and translating newfound knowledge into everyday fiscal prudence.

Financial Awareness Month: Conclusion

I hope you enjoyed this Financial Awareness Month (otherwise known as Financial Literacy Month) Brandon’s Blog. Hopefully, this post achieved its goal of helping you have a better understanding of:

How Financial Awareness Month emphasizes understanding financial literacy for prudent money management.
Key aspects of financial literacy include distinguishing needs from wants, the importance of budgeting, wise debt handling, and saving for a secure future.
The significance of financial literacy for empowerment, achieving goals, and the basics of managing money effectively.
The power of compound interest, the role of different account types (savings, chequing, credit cards), and the need for consistency in financial planning.
Overall, Financial Awareness Month guides individuals toward a path of financial literacy and concludes by emphasizing its importance.

If you’re struggling with managing your overwhelming debt, don’t worry – there are some things you can do to take control of the situation. It is not your fault you can’t fix this problem on your own and it does not mean that you are a bad person.

First, it’s important to create a realistic budget and track your expenses. From there, you can prioritize your debt repayment and make consistent payments to chip away at what you owe. It’s also a good idea to seek professional financial advice to help guide you through the process. Just remember, managing debt is a gradual process that requires commitment and determination, but you can do it! So don’t hesitate to reach out for help from financial professionals.

Individuals and business owners must take proactive measures to address financial difficulties and promptly seek assistance when necessary. It is crucial to recognize that financial stress is a prevalent concern and seeking help is a demonstration of fortitude, rather than vulnerability. Should you encounter challenges in managing your finances and find yourself burdened by stress, do not delay in pursuing aid.

The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team uses innovative and cutting-edge methodologies, to adeptly navigate you through the intricacies of your financial challenges, ensuring a resolution to your debt-related predicaments without resorting to the rigours of the bankruptcy process. We can get you debt relief now!

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

A picture of a young girl holding her piggy bank to show young people taking control of their money through financial literacy education. — *Financial Awareness Month*

Tags Credit Unions, financial decision, financial ecosystem, financial education, financial goals, financial habits, financial health, financial journey, financial literacy, financial literacy month, financial outcomes, informed decision, Ira Smith Trustee, perfect time, personal finances, savings goals

Brandon Blog Post

MORTGAGE ISSUES BREWING: CANADIANS ARE SERIOUSLY FALLING BEHIND ON DEBT

Post author By Brandon Smith
Post date May 15, 2023

Mortgage issues: Introduction

As per the latest findings from the Royal Bank of Canada (RBC or RBC Economics), a significant proportion of Canadians are currently grappling with debt payments, thereby heightening the risk of mortgage default in the future. The report reveals that the average Canadian owes $1.77 in debt for every dollar of disposable income, a trend that has been steadily increasing over recent years. This development is particularly concerning given the rising interest rates, which are exacerbating the difficulty of maintaining timely payments.

This Brandon’s Blog will explore the RBC report, the truth about household debt, including mortgage debt, in Canada, whether or not we are already in trouble and its implications for Canadian households.

The impact of rising interest rates on mortgage and other debt payments

The RBC report clarifies the negative impact of boosting the rate of interest on debt payments for Canadians. With the way we have seen the rate of interest growing, numerous Canadians are finding it significantly testing to handle their debt payments, specifically those with a variable-rate mortgage or loan product taken out at interest rates at pre-pandemic levels or credit card debt.

Interest rates have risen significantly, with the Bank of Canada’s Target Overnight Rate going from 0.5% in March 2022 to holding at 4.5% since January of this year. Anyone faced with renewing their mortgage is going to be in for a bit of sticker shock. The report also highlights a concerning pattern where a substantial number of Canadians are unprepared to handle the prospective fallout of rising interest rates on their ability to meet their financial obligations.

This RBC report highlights the expanding degree of debt among Canadians, which could potentially cause mortgage issues down the line. As more Canadians battle to keep up with their debt payments, RBC’s experience states that it is most likely that they might start missing mortgage payments. This could lead to serious consequences, such as the loss of their home or even bankruptcy. What’s even more, the report reveals that numerous Canadians are blissfully unaware of the possible dangers related to lugging around high levels of debt.

Understanding Household Debt in Canada

In order to attain a comprehensive comprehension of the ramifications of Canadian household debt, it is imperative to precisely define it. Household debt encompasses the aggregate sum of all financial obligations owed by Canadian households, including home mortgages, credit cards, lines of credit, and vehicle loans. Data released by the Bank of Canada indicate that the customary household debt-to-income ratio has been consistently escalating over the past few years, indicating a trend that is no longer just a blip.

This trend signifies that Canadians are taking on increasingly greater financial obligations in relation to their income. Coupled with the effects of inflation, it is apparent that, on average, Canadian household income is insufficient to meet the customary familial expenditures, resulting in families incurring more debt to maintain their standard of living.

Substantial household debt poses several possible risks to the Canadian economic climate. First of all, it can cause economic instability for Canadian households as they endeavour to satisfy their financial obligations. Second of all, increased degrees of financial obligation may result in a reduction in consumer spending, therefore negatively impacting the overall economy. Finally, households with elevated debt levels will likely be extra prone to default as the rate of interest hikes happens, potentially causing a cascade of defaults throughout the Canadian economy.

Canadians expect signs of trouble in the Canadian economy

Recent data indicates prospective problems surrounding Canadian household debt. In a survey of Canadians carried out by the Bank of Canada between January 27 and February 16, 2023, with follow-up interviews in March 2023, numerous key findings were uncovered.

The key findings were:

Assumptions for the rising cost of living in the coming 1 to 2 years have declined but continue to be dramatically greater than in the pre-COVID-19 period.
While consumers have reduced their price increase expectations for certain goods, such as commodities, inflationary assumptions for services such as rent stay raised.
A majority of consumers believe that the Bank of Canada faces obstacles in successfully lowering inflation because of high government spending and also ongoing supply chain disruptions. However, many remain hopeful that supply chain issues will be fixed within the next two years, resulting in reduced product prices influenced by the disruptions.
Alternatively, those that watch high federal government spending as a relentless inflationary force expect continued interest rate stress in the long term.
The present economic environment is characterized by elevated inflation and also a higher pattern of interest rates, which has actually resulted in installing strain on Canadians, especially those that are making monthly mortgage payments. Consumers are spending less on non-essential services, including leisure travel, eating in restaurants, as well as various other recreational activities.
A considerable majority of Canadians view an economic downturn to be one of the most potential end results for the Canadian economy within the following year. Nonetheless, many people continue to be uncertain regarding the direction of the economy, the labour market and unemployment rates. Such uncertainty has actually caused a tendency amongst consumers to reduce spending and increase savings as a preventative measure.
In spite of economic obscurity, workers show a favourable outlook on the job market, with several certain they could find new employment opportunities, especially those who are discontent with their present jobs. Private sector wage increase expectations are near an all-time high among employees.
Nonetheless, wage growth is expected to fall short of the rising cost of living, with most workers predicting their wages or salary will not equal current inflationary trends in the coming year.

Principal reasons for mortgage issues in Canada

Amidst the prevailing economic conditions, numerous homeowners are facing considerable difficulty in maintaining the escalating expenses associated with owning a home. Consequently, there is an anticipated surge in the number of defaulted mortgage payments in the forthcoming months. This trend is a source of apprehension for both homeowners and lenders.

As per the RBC Economics report, the principal reasons for mortgage-related issues in Canada are:

The rising cost of homeownership includes rising property taxes, insurance costs, and maintenance expenses.
Job loss or reduced income.
Reduced economic growth.
High household debt.
Increasing interest rates. This is especially true for homeowners with variable-rate mortgages, as their payments can fluctuate over time.
Unanticipated expenditures and low or no savings or emergency funds. Some homeowners may have taken on too much debt or purchased a home that was too expensive for their budget. In these cases, failed mortgage payments are almost inevitable.

The RBC report sustains the findings of the Bank of Canada study. It mentions that this might be due to a mix of elements, including climbing living expenses, stationary wage growth, and the high cost of housing. The repercussions of this could be extreme, affecting not only specific homeowners and their personal finances but the entire Canadian economic situation.

RBC states that it is critical that lenders, regulators, as well as policymakers, interact to address this problem effectively. Financial education, government programs and support for those dealing with financial debt can help protect against mortgage issues and defaults.

Consequences of mortgage issues in Canada

Failed mortgage payments can have significant consequences for both homeowners and also for mortgagees. For homeowners, missed payments can result in the power of sale or foreclosure process. This results in the loss of their house.

Potential lending institutions scrutinize credit history and also credit score prior to approving loan or mortgage applications. Uniformity in making payments is essential as it contributes to keeping a healthy credit rating. So being delinquent on debt and home mortgage payments and especially the loss of your house has a considerable unfavourable effect on your credit score and your capacity to get loans in the future.

The financial and mental stress of these mortgage issues cannot be overemphasized. It is vital that Canadians take positive steps to deal with their debt properly. The RBC report stresses the significance of looking for guidance and assistance from trustworthy financial specialists to help you be able to deal proactively with your debt problems before it is too late. By following this guidance, Canadians can protect their financial well-being and also avoid possible home mortgage problems in the future.

Delinquent mortgage and loan repayments can result in economic losses for lenders. Due to their reliance on periodic payments to sustain their operations, any missed payments can cause significant disruptions to their cash flow. This is particularly true for smaller lenders with limited resources as compared to larger organizations. When a substantial portion of a lender’s portfolio consists of delinquent and non-performing loans and mortgages, it can lead to a cessation of operations.

Coping with household debt and mortgage Issues: What Can Homeowners Do?

The RBC Economics report underscores the significance of proactive debt management by Canadians. While elevated levels of household debt may trigger apprehension, there are measures that individuals can undertake to mitigate the risk of financial ruin. One crucial approach is to look carefully at your personal finances and devise a budgetary plan and adhere to it. This can assist households in identifying superfluous expenditures and making necessary adjustments.

Furthermore, households ought to prioritize the repayment of high-interest non-mortgage debts such as credit cards. CTV News reported that non-mortgage debt is up by 5.4% when comparing the fourth quarter of 2022 to the same time in 2021. Seeking the guidance of a financial expert in developing a debt management strategy can also prove advantageous.

In the event of mortgage payment difficulties, there are several prudent measures that homeowners may take to forestall losing their homes. Firstly, contacting the lender and providing details of the financial predicament may yield positive outcomes. Numerous lenders extend hardship programs that facilitate a reduction in monthly payments or an interim suspension of payments.

In the event that you have an insurmountable challenge of making home mortgage payments and the looming threat of losing your home, it may be a good idea to very carefully consider the option of selling your residential property. By doing so, you can properly avoid the damaging end results of defaulting and losing your home and ultimately embark on a clean slate of living in a more affordable home.

All of these recommendations can be found in my May 1, 2023, Brandon’s Blog “MAXED OUT CREDIT? YOU NEED TO KNOW HOW TO INCREASE CREDIT SCORE: OUR 13 INTRIGUING TIPS TO IMPROVE YOUR CREDIT SCORE”.

However, if things have gotten out of control and your creditors are already pounding at the door, making harassing collection calls and possibly even suing you, you need to take immediate action. Contact me anytime by phone or email.

Mortgage issues: Conclusion

The RBC report has brought to the fore the intensifying concern of Canadians back-pedalling on their debt payments. The scenario is rather disconcerting, specifically given the surge in the rate of interest that pose a formidable challenge for Canadians to stay current with their financial obligations.

In addition, higher interest rates and the price of necessities of life have increased concerns about the surging debt levels amongst Canadians and the possible difficulties that could arise in the home mortgage market in the future. It is imperative that Canadians take aggressive measures to address their financial debt management strategies and appropriately plan for the ramifications of this new higher interest rate environment.

I hope you enjoyed this mortgage issues Brandon’s Blog.

Revenue and cash flow shortages are critical issues facing people, entrepreneurs and their companies and businesses. Are you now worried about just how you or your business are going to survive? Are you worried about what your fiduciary obligations are and not sure if the decisions you are about to make are the correct ones to avoid personal liability? Those concerns are obviously on your mind. Coming out of the pandemic, we are also now worried about the economic effects of inflation and a potential recession.

The Ira Smith Team understands these concerns. More significantly, we know the requirements of the business owner or the individual that has way too much financial debt. You are trying to manage these difficult financial problems and you are understandably anxious.

It is not your fault you can’t fix this problem on your own. The pandemic has thrown everyone a curveball. We have not been trained to deal with this. You have only been taught the old ways. The old ways do not work anymore. The Ira Smith Team makes use of new contemporary ways to get you out of your debt problems while avoiding bankruptcy proceedings. We can get you debt relief now.

We have helped many entrepreneurs and their insolvent companies who thought that consulting with a trustee and receiver meant their company would go bankrupt. On the contrary. We helped turn their companies around through financial restructuring.

We look at your whole circumstance and design a strategy that is as distinct as you are. We take the load off of your shoulders as part of the debt settlement strategy we will draft just for you.

Brandon Blog Post

WHAT IS FINANCIALLY LITERATE? GOOD NEW FLORIDA LAW LATEST TO REQUIRE HIGH SCHOOL STUDENTS TO PASS FINANCIAL LITERACY COURSE

Post author By Brandon Smith
Post date March 28, 2022

what is financially literate

What is financially literate? When should it be learned?

Florida high school students will soon start learning more about how to stay financially healthy. Florida’s new financial literacy law requires high school students to take a personal finance course, and for the first time, administrators will be able to report how well they’ve met the requirement to the state Department of Education. The requirement, approved by the Florida Legislature last year, is a graduation requirement.

The course is required of all Florida students. Last week, Governor Ron DeSantis signed the legislation into law. Every high school student must take the course. I think this is great.

Financial literacy transcends national boundaries. Financial literacy is a necessity. Students in Ontario are now required to take a financial literacy course as part of the grade 10 curriculum. Students in high school now take a financial literacy course as part of the course curriculum. The purpose of Brandon’s Blog is to provide you with an understanding of what is financially literate and why it is important to have the proper financial knowledge to be able to make good financial decisions.

What is financially literate?: Financial literacy background

Despite there have been some improvements, there are lots of Canadians that still have a tough time with money abilities and living the best financial life possible. The Financial Consumer Agency of Canada was created in 2013 to aid with financial proficiency and increase the financial skills of Canadians.

Many Canadians have a post-secondary education but lack knowledge when they enter the workforce. People of all ages need financial literacy. Through financial literacy programs, students are now learning about budgeting, debt management, and retirement planning.

The United States also has a financial literacy problem. Lacking basic knowledge in financial matters, financial literacy isn’t something that comes naturally. While most of us have savings in our bank accounts, few of us have the money management skills or know-how to make our money last. You can learn the skills you need to succeed, and there’s no better time than now to start.

what is financially literate

What is financially literate?: What is the best definition of financial literacy

Exactly what is financial literacy? Whats the best definition of financial literacy? Managing money, budgeting, and investing. Individuals should manage their financial affairs in a reliable manner.

Money can be used as a tool with such education. A person with financial literacy is able to save money, make wise investments, spend wisely, and manage debt. What is financially literate? It involves having access to, understanding, and effectively using financial management skills, knowledge, and information in order to make informed decisions.

What is financially literate?: What is financial literacy and why is it important?

Students in Grade 10 in Ontario are expected to gain an understanding of good financial health from the following concepts:

fiscal responsibility; and
Services are available to help them prepare for post-secondary life in a financially proficient manner.

Students are expected to:

Understand the principles of financial responsibility.
Identify various options for financial savings.
Explore banking and other financial planning tools.
what is financially literate

What is financially literate?: Examples of the Ontario financial literacy program

The new financial literacy component of the Ontario career studies program consists of several parts for teaching money matters and increasing financial awareness. It includes:

How to set up and follow a budget with monthly payments
What a credit union is versus a bank
Managing its own accounts
Interest-bearing accounts and their interest rates
TFSAs (tax-free savings accounts)
RRSPs (registered retirement savings plans)
Student loan debt
Student loans (and the resulting student loan debt) from federal and provincial governments, such as those offered through the Ontario Student Assistance Program (OSAP)
Bursaries and loans from local governments
Loans from financial institutions (unsecured), such as banks or credit unions
Lines of credit, credit cards, and overdrafts
Understanding the advantages and disadvantages of different types of credit
When used properly, a bank loan can be used to purchase a costly item, such as auto loans or a home mortgage and monthly mortgage payments
The advantages of borrowing from family or friends, as well as the downsides of defaulting on repayment

What is financially literate?: Financial literacy for students in Florida

In Florida, Gov. Ron DeSantis signed a bill last week which is a financial literacy strategy. It requires high school students to take a financial literacy course before graduation. Students will need to take a half-credit course in personal financial literacy and money management under the Dorothy L. Hukill Financial Literacy Act. Under the law, the course must include basic skills with various financial products like managing a bank account, balancing a cheque book, credit cards, filling out a loan application, and calculating federal income taxes.

Students will also learn about other financial concepts such as local tax assessments, disputing incorrect billing statements, basic insurance policies, and simple contracts. The hope is that by learning financial literacy principles, they will have a brighter financial future.

Students should learn financial literacy as part of their overall education. Everybody benefits when students can have financial stability, know how to access financial resources, and get a leg up on their financial well=being. They will be prepared to manage their finances and possibly own a business one day. Financial literacy is a good cause that everyone should support.

With the new law, Florida becomes the 11th state in the country to require financial literacy as a graduation requirement. The states of Alabama, Mississippi, Missouri, Nebraska, North Carolina, Ohio, Rhode Island, Tennessee, Utah, and Virginia already had a law requiring the teaching of what is financial literacy to young adults.

In 2021, nearly 7 out of 10 high school students in the U.S. would have access to a standalone personal financial education, but only 1 of 5 would be required to take it to graduate.

Yanely Espinal, Next Gen‘s director of educational outreach, said several other states are considering a wide range of legislation requiring in-depth knowledge of personal finance courses, including Michigan, Georgia, and South Carolina. He believes that every state should require that financial literacy resources be available and that passing a course like the ones already in existence should be mandatory for graduation from high school.

what is financially literate

What is financially literate?: What are some popular personal budget rules?

Budgeting can be stressful, but it doesn’t have to be. With a little patience and the right tools, you can learn how to budget so you know exactly what your money is doing, and where. It’s no exception with personal finance, either. With popular budgeting websites like Mint, YNAB, and You Need A Budget, it’s easy to learn how to budget so you can be in control of your money. But which tools should you use?

People talk about rules all the time. There are rules to live by, rules to obey, rules to prevent you from breaking them, and rules to prevent others from breaking them, too. When it comes to personal finance, there are some common rules that come up again and again when people talk about budgeting. Here are five of them:

Live below your means when considering your monthly expenses.
Pay yourself first. You never know when a life event will require you to find money fast.
Start small and build up.
Track your progress.
Stick to it.

To abide by a budget is, above all, about control. Being in control of your finances will bring you peace of mind. Money is spent for a reason, and if we take the time to analyze our purchases, we can decide where to direct our money. Financial literacy and proper money management is a lifelong journey so that people will be able to overcome their financial hurdles.

What is financially literate? Key takeaways

Financial literacy for beginners is so important. More students need to come out of high school and begin their post-secondary careers, whatever that may be, by having better financial management skills. If so, then hopefully more people will be able to stay clear of insolvency. All Canadian provinces and all US states should make it mandatory to have to pass a financial literacy course in order to graduate. Rather than just having a financial literacy month, we should think in terms of a financial literacy year. Everyone should possess knowledge of the basics of money management.

I hope you found this what is financially literate Brandon’s Blog. 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 to a healthy and balanced problem-free life, Starting Over Starting Now.

Tags credit cards, financial concepts, financial decisions, financial education, financial health, financial knowledge, financial literacy, financial literacy for beginners, financial literacy program, financial planning, Governor Ron DeSantis, Ira Smith Trustee, personal finances, what is financial literacy and why is it important, what is financially litertate, what is the best definition of financial literacy

Brandon Blog Post

FINANCIAL BLOG CANADA: THE 10 BEST READ BRANDON BLOGS IN 2021 IN REVIEW

Post author By Brandon Smith
Post date December 30, 2021

financial blog Canada

The Ira Smith Team wishes you and your family a healthy, happy and prosperous New Year.

As the COVID-19 pandemic continues, we hope that you, your family, and your friends are safe, healthy, and secure. Ira Smith Trustee & Receiver Inc. is fully operational, and both Ira and Brandon Smith are readily available for phone or video consultations.

Financial blog Canada introduction

At this time of year, I like to look back at all the blogs I wrote and tell you which ones were the most popular during the year. Regular readers would know that I regularly write about insolvency, bankruptcy, and estate matters for a different kind of financial blog Canada.

I always enjoy seeing which blogs received the most attention as the year ends. My top posts for 2021 will be of interest to many of you, I’m sure.

Financial blog Canada: A good Canadian personal finance blog should be interesting

The best financial blog Canada is interesting, informative, and useful to Canadians. By providing useful information, it should also help readers make better financial decisions. A good blog also includes video content. Blogs that are updated regularly are the best.

I hope that this year I have provided you with Brandon Blogs that are interesting and have those other qualities that make a good financial blog Canada.

Financial blog Canada: A Canadian finance blog should provide you with tips you can apply to your everyday life

Typical articles on a Canadian financial blog should include personal finance tips such as:

Tips for saving money
Investing
Debt management
Money management
Retirement planning
Avoiding scams
Protecting yourself from identity theft

It goes without saying that I do not write about how to invest wisely in my Brandon Blog concerning insolvency, bankruptcy, and estate matters. Many of my articles have dealt with debt management, whether it is personal or corporate. A common theme in my personal insolvency blogs is debt from credit cards, financial literacy and the need for proper family budgeting.

I have also written about identity theft. By following the advice I give on my personal insolvency blogs, you will be solvent and have savings as you approach retirement.

Financial blog Canada: Money blogs in Canada should speak to Canadians, eh

A Canadian finance blog should offer personal finance content that speaks to Canadians, right? Indeed. In Canada, money blogs should be written by financial bloggers who are familiar with the nuances of Canadian corporate and personal finances as well as the realities of Canadian financial life. That’s why I think Canadians write the best blogs for Canadians. Hopefully, you will find that the Brandon Blog covers issues of particular interest to Canadians and is best suited to Canadian audiences.

Financial blog Canada: My 10 best read Brandon Blogs in 2021 in review

Here in order from #10 through to #1 each blog post from 2021 based on total views:

10. SHARIA LAW IN CANADA: HEARTBREAKING DIVORCE, RELIGIOUS MARRIAGE CONTRACTS, COURTS AND BANKRUPTCY

In this February 24, 2021 blog, I discuss Sharia law in Canada, religious divorce claims in Ontario, bankruptcy law, and divorce in Ontario.

9. FORM 31 PROOF OF CLAIM: HOW TO PROPERLY COMPLETE THE PROOF OF CLAIM

For both personal and corporate insolvency files, I discuss why it is important to complete form 31 proof of claim completely in this October 3, 2018 blog. I explain why it needs to be done correctly. I also provide a link that you can click on to see how to properly complete the form step by step.

8. 40 PARK LANE CIRCLE, 44 PARK LANE CIRCLE TORONTO FOR SALE: ARE FINANCIAL PROBLEMS CONTAGIOUS?

The Brandon Blog from March 31, 2015 remains popular. As it seems, life on Toronto’s very exclusive Bridal Path is not always as it seems. We tend to categorize those who own these properties as “the rich and famous”, when in fact some of them are “not so rich and infamous”. A couple of Bridal Path properties have attracted quite a bit of attention: #40 Park Lane Circle, formerly owned by Mahvash Lechcier-Kimel, and #44 Park Lane Circle, formerly owned by Norma Walton and Ronauld Walton.

7. EVANDER KANE: HOW TO EXPLAIN HIS GAMBLING DEBT AND OTHER PROBLEMS BANKRUPTCY TO HIS BOSS

Evander Kane, an NHL hockey player with the San Jose Sharks, filed for voluntary bankruptcy in the United States Federal Court under Chapter 7. I discuss the causes of his bankruptcy and his downfall in this January 13, 2021 blog post. As well, I mention other professional athletes who have bankrupted themselves after earning megabucks.

6. HOW LONG DOES PROBATE TAKE IN ONTARIO? 7 QUESTIONS NEWBIE ONTARIO ESTATE TRUSTEES ARE EMBARRASSED TO ASK

My Brandon Blog post on May 26, 2021, addresses the question, how long does probate take in Ontario, as well as six other frequently asked questions we are asked as an Estate Trustee in our Smith Estate Trustee Ontario business.

5. WHAT HAPPENS IF YOU DIE WITHOUT A WILL IN ONTARIO? READ OUR INTENSE ANALYSIS

The goal of this August 12, 2020, Brandon’s Blog is to provide general information about what happens if you die without a will in Ontario.

4. SOMETIMES EVEN A BONA FIDE SHARK NEEDS BANKRUPTCY AND INSOLVENCY HELP

The April 8, 2019 blog is about a product that was featured on Shark Tank season 8. Fizzics is a machine that improves the taste and quality of beer through sound waves. Despite this, not even a Shark could save the company from insolvency and bankruptcy Chapter 11 protection. In other words, a wonderful and ingenious invention marketed by a Shark might not be of much interest to the public.

3. CREDIT CARD DEBT AFTER DEATH IN CANADA: WHO IS RESPONSIBLE?

This blog was published on August 7, 2019. Among other questions, this one is quite common when dealing with deceased estates in bankruptcy. So I thought it might make for an interesting blog to answer, what I have found to be, the most asked question dealing with what happens to debt when you die in Canada.

2. WHAT HAPPENS TO MORTGAGE WHEN YOU DIE CANADA: AMAZING DEBT PHILOSOPHY EXPLAINED

This blog from October 9, 2019, is still popular. As part of my Estate Trustee series, I wrote about what happens to your mortgage when you die in Canada.

1. HOW TO BEAT 407 PLATE DENIAL RULES EACH AND EVERY MONTH FOREVER

In 2021, this March 10, 2021, Brandon Blog was the most read of my blogs by a wide margin. It is about other than paying your 407ETR invoice in full, the only sure-fire way of beating the 407 plate denial rules. I wrote the blog because I thought it would be helpful to GTA residents, but I did not expect it to get the readership that it has and continues to get.

Financial blog Canada summary

I hope you found this financial blog Canada Brandon Blog informative. Are you or your company in financial distress and a debt crisis? Are you embroiled in costly litigation or a crushing debt load and need a time out in order to restructure? Do you not have adequate funds to pay your financial obligations as they come due? Are you worried about what will happen to you in retirement? Do you need to search out what your debt relief options and realistic debt relief solutions for your family debt are? Is your company in financial hot water?

Call the Ira Smith Team today. We have decades and generations of experience assisting people looking for life-changing debt solutions through a debt settlement plan and AVOID the bankruptcy process.

As licensed insolvency professionals, we are the only people accredited, acknowledged and supervised by the federal government to provide insolvency advice and to implement approaches to help you remain out of personal bankruptcy while eliminating your debts. A consumer proposal is a government-approved debt settlement plan to do that. It is an alternative to bankruptcy. We will help you decide on what is best for you between a consumer proposal vs bankruptcy.

Call the Ira Smith Team today so you can eliminate the stress, anxiety, and pain from your life that your financial problems have caused. With the one-of-a-kind roadmap, we develop just for you, we will immediately return you right into a healthy and balanced problem-free life.

You can have a no-cost analysis so we can help you fix your troubles.

Call the Ira Smith Team today. This will allow you to go back to a new healthy and balanced life, Starting Over Starting Now.

The Ira Smith Team wishes you and your family a healthy, happy and prosperous New Year.

Tags blog post, canadian finance blog, canadian personal financer, credit cards, debt management, everyday life, financial blog, financial blog canada, financial bloggers, financial decisions, financial life, financial literacy, Ira Smith Trustee, money blogs, money management, personal finance blogs, personal finance content, personal finances, personal financial tips

Brandon Blog Post

NOVEMBER IS FINANCIAL LITERACY MONTH: 5 MINIMALIST STEPS TO BECOME FINANCIALLY SUCCESSFUL

Post author By Brandon Smith
Post date October 14, 2021

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic. Ira Smith Trustee & Receiver Inc. is absolutely operational and Ira, in addition to Brandon Smith, is readily available for a telephone consultation or video meeting.

financial literacy month

The History of Financial Literacy Month

A national month dedicated to promoting financial literacy and financial education is celebrated every year, with the aim of teaching citizens effective financial habits. Canadian Financial Literacy Month is held every November.

Some of the country’s financial institutions and nonprofit financial educational organizations are promoting the month and supporting financial literacy efforts by creating educational materials, making financial literacy resources available and hosting financial literacy programs and events centred around personal finances.

Children are welcome to participate in Financial Literacy Month. It can be said that it is also a financial literacy for youth month. In this Brandon Blog, I describe how Financial Literacy Month can be used by anyone for personal finance education. It will equip Canadians with practical tips and financial tools to make informed financial decisions relevant to their financial situation and gain confidence around money.

financial literacy month

The Goals of Financial Literacy Month

This year Financial Literacy Month in Canada is 11 years old. It is the goal of this month to educate Canadians so that they will be able to:

Invest in their future and the future of their children by providing for themselves and their families.
Understand their rights and responsibilities when it comes to their finances.
Give back to the community in a positive way.
Increase financial literacy among students and adults alike.

All these efforts translate into promoting, advocating for, and supporting financial literacy efforts across the country.

During COVID, Canadians Need Financial Literacy Month More Than Ever

Why is financial literacy important? In order to protect consumers, the Financial Consumer Agency of Canada aims to improve their financial literacy. Canadians need to have the knowledge, skills, and confidence they need to select the right financial products and services in light of the increasingly complex financial market. Personal and economic benefits accrue from financial literacy. Learning the basics of money today is as vital as it was 2,000 years ago!

By acquiring financial literacy, people are able to know what they need to know before they take on debt or invest in assets. This is especially true when it comes to major life purchases like real estate. You should be knowledgeable about issues such as credit cards, mortgages, insurance policies, investments, retirement planning, taxes and more. Knowing your options better will help you make an informed decision. Being financially literate involves managing one’s own finances effectively.

This year is probably especially more true than ever. As Canada is trying to get its economic situation ramped up again and things back to normal, the government funding for the various coronavirus income supports is ending. People will have to get back to the basics of understanding what their after-tax income is and sticking to a balanced budget so that they do not incur budget breaker expenses.

financial literacy month

***Financial Literacy Month: 5 Steps to Financial Wellness***

Do not procrastinate. We have Financial Literacy Month for a reason. Having a good understanding of and prioritizing your finances is important. By not putting off your complete understanding of your finances you will build a healthy relationship with money.
Don’t overthink things. People think that their finances are confusing and complicated. When you are starting out on your financial journey, it’s important to not get caught up in the complexities. Just deal with the basics and build from there. Start with writing down what your financial plan is, track your after-tax income and your expenses. List your assets and your debts. This is the complete list of what you need to do to start. Those are the basics that will give you a proper foundation. It is not more difficult than that. You can then show that information to your accountant, financial planner or a relative or friend who is more knowledgeable than you. From those 4 basic items, they can then help you build a budget that works. They will help you build an even more extensive list of things to think about. It will also show you whether or not you need to think about earning extra income with a side gig.
Check your credit report. Using the search function above, you can find many of my blogs on the topics of your credit score, credit report, and Canada’s two credit bureaus: Equifax and TransUnion.Every year, you can obtain a free credit report from each bureau. However, neither of these credit reports includes your credit score. Your credit score is a number that comes from a complex math equation representing all the information contained in your credit report. There will be instructions on each company’s website on how to obtain your free credit report. Annually, you should order your credit report and check it for errors. If there is an error, write Equifax or TransUnion and request that the mistake be corrected immediately by providing your proof.
Retrace your steps. It is vital that you have an accurate picture of the amount of money you will have in the future to spend and how you will spend it. Your household budget serves this purpose. In order to do this, you need to review your historical income, expenses, and taxes. Make a decision about the source and amount of income you expect in the future and decide whether it will come from the same or different sources. Take a look also at the expenses that you will incur. Whether it was paid for with cash or first charged to a credit card, all of them. Starting with a realistic and accurate picture is the only way to plan for a successful future.
Use Financial Literacy Month to establish financial goals. Each person’s financial goals will take a different amount of time to accomplish. Short-term goals are those that can be completed within a year. Every goal should have a specific purpose, a dollar amount, and a realistic deadline. Then there are your mid – term goals. These will take more than 1 year to accomplish, but no more than say 3 years. You should make sure they are flexible and realistic. Having too high a goal will cause frustration and prevent you from achieving it. Debt reduction should be both short- and mid-term goals. A debt management plan should be part of your overall budget. An emergency savings fund should also be established. It will take even longer to achieve long-term financial goals. Regular savings is critical to achieving them. A larger savings plan should be implemented as your budget allows for it. Your success and happiness will increase the more goals you achieve. This is why you should set attainable financial goals which include long-term savings. Goals can also change over time. Occasionally, life’s fluctuations force us to reevaluate our goals or even toss some altogether. This is all part of your financial education. It’s important to remain committed to your successful financial future.
financial literacy month

As indicated above, shortly the Canadian Financial Consumer Agency, financial institutions and other financial education centres will be advertising many resources, including financial literacy books, to help you further your financial education. Whether you are looking for basic literacy basics about money or more advanced money management education, there will be something for you.

I hope you enjoyed this Financial Literacy Month Brandon Blog post. Are you worried because you or your business are dealing with substantial debt challenges and you assume bankruptcy is your only option? Call me. It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties while avoiding bankruptcy. We can get you the relief you need and so deserve.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do. We help many people and companies stay clear of bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

We will get you or your business back up driving to healthy and balanced trouble-free operations and get rid of the discomfort factors in your life, Starting Over, Starting Now.

Brandon Blog Post

SAVING FOR AN EMERGENCY FUND: HEALTHY SIMPLE STEPS TO MAKE SURE YOU HAVE MONEY TO DEAL W1TH AN EMERGENCY EXPENSE

Post author By Brandon Smith
Post date August 30, 2021

saving for an emergency fund

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

Ira Smith Trustee & Receiver Inc. 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 an audio version of this Brandon Blog, please scroll to the very bottom and click play on the podcast.

Do I really need to be saving for an emergency fund?

Saving for an emergency fund is important for safeguarding your family’s financial future. When an emergency occurs, what happens if you haven’t saved some money in advance? Should you use all your money to pay down debts or should something be set aside for a rainy day? With the COVID-19 pandemic, we have learned that you never know when and how you might be affected by a health issue.

There are times when people need to tap into their rainy day fund because of a financial emergency. There are always unexpected expenses. The idea of “emergency savings” is easy to understand. Rainy day funds: what are they and how do they work? In this Brandon Blog, I explain the importance of having an emergency fund and how you should go about saving for an emergency fund.

What are examples of emergency expenses?

Emergency savings are intended for emergencies, as its name implies. Life is full of unexpected events:

breakdown of the car or repairs because of that fender bender;
there’s a problem with the fridge;
in a recession or when the economy shuts down you lose your job, with the resulting loss of income, as we have seen;
emergency medical expenses.

In the absence of emergency fund money to cover such expenses, you could end up paying your bills with a credit card, relying on payday loans, or heavily utilizing your secured or unsecured line of credit. These are very expensive ways to meet your urgent expenses. Saving for an emergency fund so that you have funds on hand is a much better strategy.

How do I start saving for an emergency fund?

Planning your personal finances begins with a monthly budget to be able to track monthly income and monthly expenses. It can be as simple as looking at your bank accounts and credit card statements to get a handle on what your monthly income and expenses are and writing it down on a piece of paper. Or, you can get fancier and use electronic budgeting worksheets, budget apps or an online budget calculator.

You should follow three main steps when building an emergency fund.

Keep a daily record of your household expenses and categorize them as discretionary or non-discretionary.
Take an average of all your expenses over several months to get a feel for a true average monthly amount.
In addition to taking stock of your expenses, this exercise should be used to weed out all unnecessary expenditures. You can begin to save money by redirecting those unnecessary expenses into savings.

An emergency can last for any number of months, so plan ahead by setting aside enough money to last at least six months. Individuals, couples, or families have different requirements. Is it a single-income family or a double-income family? The length of time it takes to save an emergency fund, as well as the amount needed, will be determined by this.

How much savings should I have when saving for an emergency fund?

There are some rules of thumb that a financial expert would recommend when deciding how to go about creating financial plans and saving for an emergency fund. You can use the 6 months of expenses calculated in your current budget as a general rule of thumb to set up a six-month emergency fund.

A six-month benchmark for emergency funds is a good place to start, but it’s not foolproof. COVID-19 has shown that even a six-months emergency fund cannot cover your household expenses if your income is dropped for an extended period of time. Depending on your financial goals, this can be extended. Harvard University found that 46% of households in the United States that lost their jobs as a result of the pandemic spent all or most of their emergency savings.

If you are saving for an emergency fund, consider things like:

your household’s number of people;
income of the household members;
the minimum amount needed to cover your monthly household expenses; and
How stable is each income source is and is there any additional income source that can be created or you may have just not thought about, such as a side gig to create business income or income tax refunds.

Ideally, your emergency fund should be proportionate to your earning potential and reflect how much you can save. It should also represent an amount that feels comfortable for you. A very important thing not to overlook is that you need to consider your income on an after-tax basis, not gross so that you have accounted for paying your income tax on time.

5 normal questions about saving for an emergency fund during the COVID-19 pandemic

Two of the five questions we have already dealt with: (i) how do I start saving for an emergency fund?; and (ii) how much savings should I have when saving for an emergency fund?

The next 3 standard questions and answers, I list below.

Where is the best place to put your emergency fund?

An emergency fund serves as a safeguard when you are faced with a true emergency. You will feel more at ease if you can fund your expenses from your emergency account in case of unforeseen circumstances. Make sure the emergency fund is separate from the other accounts. Keeping your emergency fund liquid is essential. Avoid investments that require a long-term commitment.

I recommend that you keep a certain portion liquid in an interest-bearing savings account (is there such a thing anymore as a high-yield savings account?). Right now interest rates are low, but something is better than nothing. As I already stated, keep it separate from your other funds.

To be able to automatically save without thinking about it, set up an automatic payment each pay period from your chequing account into this saving for an emergency fund savings account. Finally, put the balance of your emergency funds into a short-term GIC that can be cashable on demand. That way, it will earn something but is also liquid if needed.

**I have a line of credit – should I still be saving for an emergency fund?**

Keeping an emergency fund is always a good idea, as mentioned above. It’s good to have a line of credit, especially if it has a low-interest rate. However, I wouldn’t use it as my first line of defence. If you don’t have enough money in your emergency fund to cover the immediate needs, you can always use your line of credit to supplement your emergency fund. In the event that you borrow to meet those expenses, you should aim to repay the borrowed funds as soon as possible.

Should I use my emergency fund to pay off debt? Should I pay down debt before saving for an emergency fund?

Yes, it is true for some people. You might want to start paying down debt before saving for an emergency fund if you have a large amount of debt and no way to repay it. When an emergency comes up, however, you will have less money on hand if you do that.

Isn’t it better to repay your debt before you start an emergency fund if you’re in debt? Yes, the answer is yes! It does not have to be done at once. It is important to pay off the smallest balance first so that you can spend more on essentials and cut back on unnecessary expenses. This strategy only works if you are disciplined enough to stick with it.

It also depends on what kind of debt. High-interest credit card or payday loan debt should definitely be paid down first. As I previously wrote in a recent Brandon Blog, those with a poor credit score have been able to pay down massive amounts of their credit card debt. However, in order to not run that credit card statement back up, the next step should be saving for an emergency fund.

Saving for an emergency fund summary

I hope that you found this saving for an emergency fund Brandon Blog informative. Unexpected emergencies, by their very nature, are not pleasant and could have the effect of adding significantly to your debt load. There are several insolvency processes available to a person or company with too much debt. You may not need to file for bankruptcy.

If you are concerned because you or your business are dealing with substantial debt challenges, you need debt help and you assume bankruptcy is your only option, call me.

It is not your fault that you remain in this way. You have actually been only shown the old ways to try to deal with financial issues. These old ways do not work anymore.

The Ira Smith Team utilizes new modern-day ways to get you out of your debt difficulties with debt relief options as an alternative to bankruptcy. We can get you the relief you need and so deserve. Our professional advice will create for you a personalized debt-free plan for you or your company during our no-cost initial consultation.

The tension put upon you is big. We know your discomfort factors. We will check out your entire situation and design a new approach that is as unique as you and your problems; financial and emotional. We will take the weight off of your shoulders and blow away the dark cloud hanging over you. We will design a debt settlement strategy for you. We know that we can help you now.

We understand that people with credit cards maxed out and businesses facing financial issues need a realistic lifeline. There is no “one solution fits all” method with the Ira Smith Team. Not everyone has to file bankruptcy in Canada. The majority of our clients never do as we know the alternatives to bankruptcy. We help many people and companies stay clear of filing an assignment in bankruptcy.

That is why we can establish a new restructuring procedure for paying down debt that will be built just for you. It will be as one-of-a-kind as the economic issues and discomfort you are encountering. If any one of these seems familiar to you and you are serious about getting the solution you need to become debt-free, contact the Ira Smith Trustee & Receiver Inc. group today.

Call us now for a no-cost consultation.

We hope that you and your family are safe, healthy and secure during this COVID-19 pandemic.

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

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