Buy or Rent?

Let’s face it — we know budgeting is a good thing but the majority of us create that sour look as though we have just bit into a lime when we are asked about budgets. Yes and for some us of it can seem quite painful. Numbers? Yuck. However do you want to hear of something more painful?

How about the fact that you have paid $600.00 or possibly even more in interest this past year to sustain credit cards.
How about the impulse buy on a new vehicle or motorized toy you cannot afford and each month you wonder how you are going to make the payment this month (again)
You have purchased a little too much house and now you cannot afford to buy groceries without credit.
What about the compound interest you are missing out on because you are not saving?

Come on….add more items that may be relevant as that list is just a simple start. Sometimes one is fearful of creating a budget because their finances are a mess and they do not want to really know how messy. There are collector calls everyday and you avoid the phone. It can be scary and sometimes quite overwhelming. There is always a solution and better to work towards a solution then to keep pretending.

To truly understand what your income and expenses look like, bank statements are great tools for being honest about where you money is going. Review at least 3 months worth so as to help establish some consistency. Use these averaged amounts to start your initial budget. Do not be too concerned about exact amounts at this stage. You will tweak you budget as you go along and as life changes.

CASH – yes – that’s right – CASH! As you begin wallet to draw up your budget and learn to live within it, put away your cards- yes all of them. Each week withdraw the amount of cash you need for items that you would use a credit card or debit card to pay for. Cash shows us our true spending habits. Try it for a month and you may even enjoy living on cash.

Provide yourself with no regrets or missed opportunities for your money to work for you by starting one today.

First Time Home Buyer? Here are a few incentives…..

29 Friday May 2015

Posted by Marg DeBoer in Buying a Home

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First Time Home Buyers, First Time Home Buyers Tax Credit, Ontario Land Transfer Tax, RRSP withdrawal

RRSP WITHDRAWAL AS A DOWNPAYMENT

The Home Buyers’ Plan (HBP) is a government of Canada plan that allows first-time home buyers to withdraw up to $25,000 PER BUYER, from an RRSP to buy or build a home without having to pay tax on the withdrawal. Generally you have 15 years to pay back your withdrawal and your repayment period starts 2 years after the withdrawal. However you are free to pay the full amount at any time before the 15 year time frame. If you are buying or helping to buy or build a home for someone related to you with a disability, you too may take advantage of the Home Buyers Plan.

See here for more information: http://www.cra-arc.gc.ca/hbp/

First-Time Home buyers’ Tax Credit: $750.00

First-Time Home Buyers’ Tax Credit (HBTC) is to assist first-time home buyers with the costs associated with the purchase of a home, such as legal fees, disbursements and land transfer taxes. The HBTC amount will apply to qualifying homes purchased after January 27, 2009, and will provide up to $750 in a Tax Credit. First time home buyers purchasing a home may claim the HBTC on their income tax returns. If you like to check out more:

http://www.cra-arc.gc.ca/hbtc/

Ontario Land Transfer Tax: $4,000

Ontario’s Land Transfer Tax is a provincial tax payable by the purchaser of a property. Therefore, if you purchase a property or land, you are responsible for paying Land Transfer Tax to the Province at the time the transaction closes. First time home buyers receive a reduction of up to $4,000.00 on Ontario Land Transfer Tax.

http://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.html

IS TAPPING YOUR CARD COSTING YOU MORE?

18 Monday May 2015

Posted by Marg DeBoer in Spending Habits

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In our ever changing technological world we now have the choice in many places to pay for our purchases by a simple tap of our debt and/or credit card. In a recent article from the Bank of Canada, “contactless credit cards in particular are seeing a strong growth in usage”* and cash continues to decrease in use.

This can be great for convenience but as a result do we end up spending more than we planned?
Maybe you are wondering why your credit card balance is so high or why you may have ran out of money this month?
Is your savings being depleted or becoming nonexistent?

Do yourself a favour and take time to check that bank statement and/or credit card statement and if your spending is out of control with tap and go maybe it’s time to put away the card and start using cash for a while.

*Bank of Canada.ca May 14 2015 publication