Posts by Topic: Personal Finance
Guest Blog: Keys to Good Financial Planning
A financial plan is like a roadmap. When you move to a new city, or travel to an area that you’re unfamiliar with, you need to chart the way to your next destination. It’s the same with financial planning. Here to help you navigate, with some pointers on how to set your course, is financial planner and guest blogger Christine Conway.
Why might you need a financial planner? Well, they’ll start by taking a look at where you are now, where you want to go and will identify obstacles that may be in your way. If you’re heading off course, your financial planner will know where the road you’re currently on will lead.
When selecting your financial planner, the first thing that you’ll what to look for is a professional designation. In Canada, anyone can call themselves a financial planner, without necessarily having gone through adequate training. The Certified Financial Planner designation (CFP) is internationally recognized and viewed as the standard for financial planning. To be awarded this designation, the planner must pass standardized tests, have work experience in the field and abide by a code of conduct that puts the client’s best interest ahead of their own. The planner must also stay up to date on changes in the industry through continuing education in order to maintain use of the designation.
It’s also helpful to look for a financial planner who works with an independently owned firm. They are able to provide an objective opinion and offer a wide range of products. If the planner seems more interested in making a sale than getting to know you and your financial situation, you may want to seek assistance elsewhere!
In marriage or common-law relationships, it’s important to be aware of the different attitudes that you and your partner have towards money. Does your partner always need to have the latest new toy or are they continually updating their wardrobe? If so, they may be someone who enjoys the immediate benefits of spending money now, over long-term benefits. Have a discussion and set short-, medium- and long-term goals together, making sure that you both value what you will be working towards. As an example, short-term goals may involve paying off debt, which might seem like more of a pain than pleasure, but would free up cash flow to save to buy a new car or home.
In addition to savings, good financial planning is about protecting your income and assets. For example, making sure that you would still have money coming in if you were unable to work due to illness or injury, your planner could help you identify and implement an appropriate disability or critical illness plan.
You may want to contact a designated financial planner if you:
- Want assistance prioritizing your short-, medium- and long-term goals;
- Don’t have a pension plan at work and need to save for retirement on your own;
- Do have a pension, but aren’t sure if it will be enough;
- Don’t have disability or critical illness insurance through your employer.
Christine Conway, CFP, CHS, is a designated Certified Financial Planner and Certified Health Insurance Specialist. She works for Braun Financial Services, an independent financial planning firm in New Westminster, B.C. Christine also serves as the President of the New Westminster Chamber of Commerce.
To arrange a free, confidential consultation regarding available debt resolution options please contact us.
Small and Easy Ways to Save
So, you’ve decided to start saving. The accounts are ready and the goals are set — you just need a few more ideas on where the extra money is going to come from. To get those saving wheels turning, we’ve put together a list of 10 simple tips to boost your savings:
Round it up: Every time you make a purchase (say, $24.20), round up to the next dollar and transfer the difference into your savings account (in this case, $0.80). There are actually bank accounts set up to help you do this. While the savings seem so small, and therefore painless, they really add up over time.
Start a change jar: You probably don’t use a lot of cash anymore, but when you do chances are you’re accumulating a lot of change that will just weigh down your back pocket. Make a habit of tossing your leftover change into a jar at the end of the day. When it’s nearly full (that’s right!) roll it and take it to the bank.
Make it fun: Set a game for yourself like, “I have to save any 2010 loonies I get” and change the denomination and year every so often to keep yourself on your toes. This is something you can even get your spouse or kids to do. Have a family challenge to see who can find the most in a three-month period.
Ditch fees: Tacking on a late charge or user fee to something you’ve already paid for is beyond frustrating. Carefully read contracts to avoid paying more than you need to and make sure you understand any potential service fees before signing up.
Embrace community resources: If you’re an avid reader, get a library card. Love to socialize? Find a volunteer program. Nearly every community will have resources, programs or events that are not only cost-effective but nearby, making them convenient and cheap to travel to.
Cut out the coffee run: If caffeine is your friend we don’t mean you should cut it out altogether — just those quick trips that add up during the week. If you’re tempted by the coffee shop down the street bring a thermos of self-made fuel from home, and maybe even your own homemade treats if you’re really planning.
Lower your utility costs: Call your service providers (cell phone, cable, etc.) and make sure that you’re actually getting the best deal for your dollar. If you think you can cut back on something, reduce the cost, or cancel it altogether, then do it. Small things like curbing unnecessary electricity use can also make a difference.
Don’t be afraid to ask: Whether you’re booking a trip or negotiating with a service provider, it doesn’t hurt to ask for a discounted rate or if there is a way to reduce the price. If you don’t ask, you won’t know and speaking up can definitely save you money!
Meal plan: If you find that you’re regularly throwing money at the “What’s for dinner?” question then try to get into the habit of planning your meals for the week. When hitting the grocery store, get only what’s on your list for the week’s meals. If you’re feeling really ambitious then make double or triple batches of dinners to use for lunch or to store in the freezer for the next time you’re in a dinner bind.
Master the timed decision: Before tossing something into your shopping cart, hang onto it for 10 seconds and decide if you actually need it. Need, not want. If you’re looking at big-ticket items (a new mobile device, for example), change it from 10 seconds to 30 days. This will also allow you extra time to compare prices.
Whether your savings goals are big or small, it doesn’t have to be an agonizing process. Simple, small adjustments can yield amazing results; your creativity is the limit. Once you’ve met a few of your savings goals, chances are you’ll have even more motivation to keep with it. Save on, friends, save on!
Please contact us if you would like to arrange a free, confidential consultation to discuss your debt resolution options.
Joe Debtor: New Study Findings
The results of Ontario trustee Hoyes Michalos’ 2013 study on the average insolvent debtor were released this week. The findings show that the average bankrupt is not only getting older but has growing debt levels.
While a typical insolvent person is a 43-year old male carrying over $61,000 in unsecured debt, the highest debt levels were amongst those aged 50 to 59, where unsecured debt was more than $84,000. The average unsecured debt in this ‘pre-retirement’ age group reflected a 14% increase over the prior two-year period previously reviewed and is 38% higher than that of the average insolvent debtor.
Expenses associated with supporting both their children and aging parents combined with earning an income lower than younger Canadians are a few of the reasons pre-retirement debtors hold such a large amount of debts.
Via: Hoyes Michalos and Associates Ontario Personal Bankruptcy Blog
To read the full Joe Debtor Study please click here.
To arrange a free, confidential consultation regarding your debt management options please contact us.
How to Start Saving
Maybe you’ve read the news stories about how few Canadians currently have savings, or you’ve decided to accumulate savings as part of an overdue New Year’s resolution. Whatever the reason, having savings has major benefits — and here are some easy steps you can take to get yourself started:
Decide what the savings are for: They could be for an emergency fund, in which case you can plan to leave the funds alone. (And hopefully you won’t need them!) If you’re saving for a holiday then you’ll know how long you’ll need to achieve your goal. If the money is for long-term plans like retirement or post-secondary studies then the time frame for accessing your savings will be important.
Shop around: There are a variety of savings accounts and plans available to you so ensure you’re setting up an account that works for your particular savings plan. Canadian Tax-Free Savings Accounts have been around for a few years now but recent reports show that the majority of Canadians aren’t yet taking advantage of their perks or don’t know how they work. There are also no-fee bank accounts available that will pay you interest while your cash is sitting. Do your homework thoroughly and pick something that best suits your needs.
Work saving into your budget: Simple right? But so important! If you don’t budget to have a portion of your paycheque go towards savings chances are it won’t happen. To further resist the tendency to spend your savings, set up an automatic withdrawal so funds are moved to a savings account for you.
Set savings goals: Break down how much you’ll need to save and the time you’ll need to get there, keeping it realistic and attainable so you don’t set yourself up for discouragement. Even if you start small, watching the dollars grow will be a great motivator to keep with it!
Check your progress: Periodically review your goals and accounts to see how you’re doing. You may find after a few months you’ll want to ramp up your savings and readjust your budget. Or if you find you’re struggling, don’t get discouraged. Try to pinpoint where the hurdles are so you can shift your focus.
Now that you’ve set yourself up on the savings track all you’ve got to do is…well, save! Keep an eye out for the second part of this post, “Small and Easy Ways to Save,” if you’re looking for ideas on how to find a little extra to put away.
To arrange a free, confidential consultation in one of our 10 Lower Mainland offices please contact us.
Single in the City: Why it can cost
As revealed by Statistics Canada, over 40 percent of those living in Vancouver are single and manage with an average annual income of $35,000. Since Vancouver is now the most expensive city in North America, between sky-high rents and maintaining an active social life, it’s no wonder that the average single person footing living costs alone is also carrying approximately $37,000 in debt.
Sands & Associates Trustee Blair Mantin shared some tips with The Vancouver Courier for singles to bear in mind when it comes to their finances.
To read the full article please click here.
To meet with a local trustee to discuss your financial options please contact us for a free, confidential consultation.
Bankruptcy Rates on the Rise: News1130 Reports
A segment last week from News1130 took a closer look into BC’s local bankruptcy statistics. While many areas of Canada have seen a decrease in the number of bankruptcy filings, the lower mainland isn’t one of them.
Blair Mantin of Sands & Associates explains that the high living costs and stagnant wages here in the lower mainland likely contribute to the increase in bankruptcy proceedings. Residents in the Fraser Valley and Tri-Cities area may be particularly hard-hit due to declining real estate and high mortgages.
To hear the audio excerpt, please click here.
To read the bankruptcy rates by locality and full article re-cap please click here.
If you would like to speak with a local, licensed trustee regarding your debt resolution options please contact us for a free, confidential consultation.
New Regulations required in BC to protect consumers: The Globe and Mail reports
With the number of Canadian complaints surrounding debt settlement companies rising, the Ontario government is preparing to tighten-up with some new legislation aimed at protecting their residents from ‘unfair business practices’. In Ontario, the Ministry of Consumer Services’ awareness of issues with such companies started in 2011 and has continued since. In recent months draft regulations have been put forth in Ontario that will prohibit certain business practices amongst debt settlement organizations.
While Alberta’s amended legislation has been in place for some time, in British Columbia, our ‘most vulnerable consumers’ are still awaiting such defense. As discussed with The Globe and Mail, Sands & Associates’ trustee Blair Mantin has seen the local problems created by the lack of legislation escalate noticeably in recent months. As Blair said in the attached article: “We used to see one case every few weeks – now it’s one to two cases a week.”
To read the full article please click here.
To arrange a free, confidential consultation with a local, licensed trustee please contact us.
Who Goes Bankrupt in BC and Why?
A recent edition of Industry Insights, the Chartered Accountants of British Columbia newsletter, reviewed some key findings from a BC Consumer Debt Study launched by Sands & Associates in 2012.
In addition to providing demographics as to who is filing, the primary causes, as well as financial standings after bankruptcy (or consumer proposals), Chartered Accountant and Estate Manager Alana Orrell notes that one of the largest indicators from the study was the overall continued need for public education surrounding Consumer Proposals as an alternative to bankruptcy.
To read the full newsletter article please click here.
To arrange a free, confidential consultation with a local, licensed trustee please contact us.
Quick Sands Tip of the Week: Knowing your Limit
Join Sands & Associates each week (for about 60 seconds) and catch a Quick Sands tip of the week to help guide you to better financial management.
This week’s tip is about knowing your limit if you have gambling on your list of pastimes.
Want to participate further? Like, Share and/or Comment on our weekly Quick Sands video and you could win a $25 iTunes Gift Certificate!
Quick Sands Tip of the Week: Making Self-employment Work
Join Sands & Associates each week (for about 60 seconds) and catch a Quick Sands tip of the week to help guide you to better financial management.
This week’s tip focuses on self-employment income, remittances and how to avoid year-end stress.
Want to participate further? Like, Share and/or Comment on our weekly Quick Sands video and you could win a $25 iTunes Gift Certificate!