PERSONAL FINANCE TIPS
- Pay off all debts prior to investing as the interest on your debts is much higher than the interest you will receive on your investments.
- You should not cash in an RRSP as this will result in a higher tax burden.
- Pay in full all credit card balances as soon as they become due, to avoid interest charges. Credit cards are great for convenience and to help build a credit history but they are not meant to be used for caring a balance month to month.
- After clearing away non-mortgage debts, work towards reducing your mortgage flexible payment plans, i.e. bi-weekly and weekly payments allow direct reductions on the principal and save you a lot of interest.
- Payroll deductions are a relatively painless way of directing money you don’t see towards improving your financial health.
- Once your debts have been dealt with, work out a personal or family budget to pay expenses and allow for insurance protection and investments.
- Your budget should not be so strict that you are unable or unwilling to follow it; however, it should eliminate most frills and impulse purchases while allowing enough of a surplus to afford an occasional evening out.
- RRSP - Registered Retirement Savings Plans are a must as a long-term investment device which allows you to set aside savings for retirement and defer the tax until you cash the plan.
- Consider applying for a small RRSP loan from the bank to help increase your tax refund, which can then be used to pay down the loan.
- Real estate over the long-term is by far the best investment you are likely to make as it will increase in value. Find a house for a price you can afford and shop around for the best, least expensive mortgage.
"I was desperately looking"
A friend of mine heard Mario Morataya on the radio say: "regain your peace of mind", so I decided to make an appointment with him and I did the right thing. He gave me the harmony I needed and that I was desperately looking for.