Financial things that matter when buying your first home

Buying your first home is a big step and can also make a rather large financial dent if you don’t take enough time to take that step in the right direction. Not everyone is knowledgeable about a good deal when it comes to buying their first home. For this reason it is good to do sufficient research and make sure that you are well informed before your signature goes on any contract. If you purchase your first home the right way you will find that you have actually made a good investment. The most important thing to remember and to do here is to start with a solid financial foundation. Make sure that you pay off most of your debt and any other monies that you owe. This will give you a firm background to start with and if anything unforeseen happens you can be sure that you will be able to deal with it without having to be too concerned about bankruptcy. Have at least 3 to 6 months worth expenses saved up in a savings account that you cannot access without giving notice of withdrawal. Click here to read more about saving money. Figure out how much you would need to repay each month. It is important to note that your monthly repayment amount for your home should not be more than 25% of your total take home package. This is a very important step because you need to know how much you are willing and able to spend. There are many ways to find out how much you would have to pay for your first home. You can simply use online calculators that will tell you what to budget for including interest accrued. Find the home that suits you best. I will never forget the pleasure I had as a child when watching the popular TV series, 7th Heaven. Stephen Collins just portrayed the perfect father and the family constantly took us on a journey through their everyday lives. I absolutely adored their home and promised myself that I would get the exact same type of home when I grew up one day. I absolutely loved the actors and the cozy home that they stayed in. My home doesn’t exactly look like that but I settled for something similar that didn’t cost me an arm and a leg. When purchasing your first home it would be in your best interest to get an expert negotiator on your side. This is a great way to make sure you get the home that you really want at a reasonable price and that it is affordable at all times. It wouldn’t be ideal to be happy with your home but you end up paying too much when all extra charges make your repayment price double. There are people that offer services where they will represent you during your home purchase for a fee. This might just be what you need to find the deal that you are looking for. Click here to read

How You Can Save Money Efficiently

There are a lot of things that we would love to do but usually cannot because we are bothered by the simple things. Usually, there are some things that we focus on so much that we forget about the simple things such as the fact that we need to save money efficiently. You know very well that you should save money but try as you might; you are just unable to do it appropriately probably because you are always tempted to purchase new things. Another possible thing is that you are just not getting enough money for all of your expenses. If you know that you are earning enough for the type of life that you would like to live, making sure that you can save money efficiently is still highly important. How do you think will you be able to do that? For some reason people spent a lot of money to build ultimate home security system to prevent threat. One of the main sections of the part security system is your gates, fences and windows with various types as you can see at Boardwalk. This not only make your home secure but also make your home more fascinating looks. Here are some of the things that you can do so that you can save the money efficiently. Place a percentage of the money that you have earned in a different place. It will be similar to paying yourself for all the hard work that you have done to earn the money. You know that this is one of the ways by which you can save your own money. Set aside the money that you would use for expenses. This is one way by which you can keep track of the money that you are going to spend. It will also help if you could list down the expenses one by one so that you will know what you are spending on appropriately. You may want to avoid the use of your credit card first. You have to remember that when you use your credit card, you are only acquiring new debt again. You should not do that because this will only leave you with more debt than what you can manage. Remember not to purchase something that you will not be able to pay the next time that you do it. Your saving goals should be workable depending on your budget and the type of money that you get every month. If you have some serious goals that you know you cannot achieve just yet, you may want to start with small goals first to make you feel better and eventually get to your big goals already. Follow a certain time frame. You may want to make sure that you will set a time frame for the things that you would like to purchase. This will allow the goal to be easier to work with. With all of these things in mind, you can be sure that saving will be a whole lot easier than what

That’s why it’s so tough to save money!

Budgeting is tough, particularly when you're trying to actually set some money aside for the future. Like losing weight or battling any addiction, saving money resides in the realm of behaviour that sometimes seems immune to rational solutions, says one ex-banker turned blogger. But it's often tough to get out of the gate without some help. My guess is that the best person to help you figure out how to save money is somebody who has suffered from living beyond their means in the past, and who has developed effective strategies for overcoming this problem, he says. But if that person isn't readily available to you, you still need to figure out what's holding you back. That means tricking that rational mind and helping it get with the programme, he suggests, including developing a better sense of just what's going on upstairs. Here are a few things to consider: 1. The Hawthorne effect: Just as scientists acknowledge that observing something inevitably alters it, the longer and more closely you begin to observe your spending patterns, the more likely you are to shift them in a more positive direction. That skew that frustrates scientists will nudge you to better choices. 2. Radical transparency: Everybody like a pat on the back but not when it comes to dealing with money troubles. Don't flash the cash and pretend that everything is ok. If you can steer your mind away from keeping your spending patterns secret, you may be able to tap into positive peer pressure from partners or friends. This could boost your determination when it comes to making difficult money-saving decisions. 3. Out of sight, out of mind: If you don’t have money in your hand, or don't spend a lot of time checking your bank balance, it’s much easier to forget that you ever had the money in the first place. Which, naturally, means you’re more likely to save rather than spend. Each of these techniques operates on the subconscious in a way that doesn’t make perfect sense. But because that’s often where the problem lies in saving money so perhaps the solution resides there as well. Do you find it tough to save? How have you managed to break those poor spending

RRSP season is nothing to sneeze at

Enough about flu season – it’s time to stop sniffling and start seriously thinking about RRSP season. The deadline date for making contributions to the Registered Retirement Savings Plan for the 2012 taxation year is just around the corner on March 1. An RRSP is a plan that helps you save for retirement while offering you some other great tax benefits. For instance, deductible RRSP contributions can reduce the amount you owe on your income tax or even give you a bigger refund (depending on your income). And, as long as the funds remain in the plan they are exempt from tax as it grows. You don’t have to make one annual lump sum to contribute to an RRSP either. RRSPs can be made easier to carry through monthly payments that suit your budget needs. However, if you are considering making a lump sum contribution before the March 1 deadline but don’t have the on-hand cash, another option is to talk to your financial advisor about an RRSP loan. There is a maximum amount you can contribute to an RRSP based on your income and how much you previously contributed. You can contribute 18 per cent of your previous year’s income, up to a maximum of $23,820 in 2013. But keep in mind, if you didn’t contribute the maximum in previous years your deduction limit will be higher. Also, if you contribute to a workplace pension plan your deduction limit will be lower.You can set up a RRSP through your financial institution such as a bank, credit union, trust company or insurance company. You may also want to consider setting up a spousal or common-law partner RRSP. The bonus to this plan is that if the higher-income spouse or common-law partner contributes to the RRSP for the lower- income spouse/common-law partner then the contributor gets the short-term benefit of the tax deduction while the spouse or common-law partner receives the income and reports it on his or her income tax return. While we’re on the topic of income tax, the deadline for personal income tax is April 30, 2013 while those who are self-employed have until June 15 unless there is a balance owed and then the deadline is April 30, 2013. As with everything in life, make sure you do your research and find out more about Registered Retirement Savings Plans and the benefits. Click on the Canada Revenue Agency link for some helpful information on RRSPs. Will you be considering contributing to an RRSP this

How are you going to save in 2013?

If you’re like me it isn’t always easy trying to save money. It seems whenever I put a little money away into a savings account or a secret stash at home some unexpected expense always seems to arise. Car repairs, home repairs and uncovered medical expenses can pop up at any time. Begrudgingly, I am forced to dig into what little savings I have or choose to add onto my already pumped up credit cards. But I am optimistic. According to a new report from BMO Bank of Montreal, Canadians are planning to save on average about $9,859 this year. That’s an increase of $600 over the previous year. And how do they intend to save? Well, the majority are using a Registered Retirement Savings Plan (RRSP), 63 per cent; chequing account, 57 per cent; Tax Free Savings Account (TFSA), 49 per cent; high-interest savings account, 29 per cent; and Guaranteed Investment Certificates (GICs), 25 per cent. Ernie Johannson, Senior Vice President, Personal Banking, BMO, says it’s encouraging to see Canadians increasing their savings this year. While it's important to pay down debt - particularly high-interest debt - it's essential that households build themselves a financial cushion as well, whether it be for retirement or other goals. And just what are Canadians saving for? Well, the report, conducted by Pollara, indicates the majority are saving for vacations and for purchasing luxury items, entertainment and hobbies. Retirement and emergency savings tied for second spot. Other top things Canadians are saving for include home renovations (29 per cent); new vehicle (20 per cent); education (19 per cent); and a new home (15 per cent). The report also found that men plan on saving a little bit more than their counterparts by hoping to stash away $11,631 compared to the ladies with $8,091. And by province it appears that Albertans plan on saving the most with $18,035; followed by British Columbia, $11,109; Ontario, $10,465; Manitoba and Saskatchewan, $9702; Atlantic provinces, $6,698; and Quebec, $5,477. It’s always nice to be able to put a little away for a rainy day however, the study found that only half of Canadians polled feel they are saving enough to meet their goals. Some of the barriers to increased savings include high expenses (71 per cent); low income (65 per cent); and debt repayment (52 per cent). Now I can relate to that! Check out the full report here.Will you be saving money this