Advice to tips and advice to improve your finances and long term goals
Wednesday, January 8, 2020
Laurence Mongeau
Financial Health
How Budgeting is the Key to Financial Well-Being
A budget is the foundation of financial well-being. And with good reason. It’s a simple but highly effective way to make sure you live within your means, and it allows you to have control over your finances.
In this blog post, we'll discuss how budgeting is key to financial well-being. While only half of Canadians use a budget, those who do make better financial decisions and manage debt more effectively. Whether using traditional or digital methods, a clear budget helps track income, expenses, and savings goals. Free tools like the FCAC’s budget planner can help you get started.
Why Budgeting is Important for Financial Success
Research backs this up. The Financial Consumer Agency of Canada has found that when people start using a budget, they make better financial decisions and improve their financial well-being. They are better at keeping up with their financial commitments and reducing their spending when money is tight.
Today, only about half of Canadians report having some type of a budget. Some use traditional methods, such as handwritten lists, or even savings jars and cash envelopes. Others use digital tools such as spreadsheets, mobile apps or financial software.
Whichever method you use, a good budget must clearly show your sources of income and monthly expenses. This will help you achieve your financial goals, including finding ways to get rid of your debt and saving more money for things that are important to you, such as retirement or your kids’ education.
Budgeting Can Be Eye-Opening
A budget is especially important if you have trouble paying your bills and do not know where your money is going every month.
If you don’t know where to start, there are plenty of free online tools to help you get your finances under control, including a new budget planner from FCAC.
This interactive tool has many features to help you better identify your priorities, needs versus wants and how to save money. It also lets you compare your spending habits with other Canadians in similar life situations. You can save and update your budget online at any time, or simply download an interactive spreadsheet.
Achieve Your Financial Goals with a Solid Budget
Fair warning: this can be a sobering exercise, especially when you are face-to-face with how much you spend at the local coffee shop every week. But the time and effort that goes into making a budget is well worth it.
With a good budget in hand, you will not only find yourself doing a better job of taking charge of your finances, but you’ll also be closer to achieving your life goals and dreams. (NC)
Contact Laurence Mongeau
Are you looking to buy or sell luxury homes in Burlington, Oakville, Hamilton, Milton, Ancaster, Stoney Creek, Waterdown, or Grimsby? Contact Laurence Mongeau, your trusted REALTOR® with over 20 years of experience, for expert advice on listing your home and strategic real estate solutions. Call 905-320-0773 or email homes@laurencemongeau.ca today!
Sunday, July 9, 2017
Laurence Mongeau
Financial Health
Even homeowners who do all their homework before buying are occasionally surprised by how quickly the many expenses of home ownership add up each and every month. But rest assured; if you stick to your budget and make a few sacrifices here and there, it is possible to save money and maybe even pay off your mortgage a few years early!
Mortgages are compounded with hundreds of payments to slowly reduce both your principle loan as well as interest charges, so you can expect interest-heavy payments for the first five to seven years as your bank makes lending you all that money worth their while. But there are ways to pay down your mortgage faster and save money in the long run!
Bi-weekly is best - Opting for an accelerated biweekly payment schedule will not only allow you to make 26 payments a year, it will also reduce both your interest rates and principle amount faster. Lenders may charge you an additional fee, but this is money well spent.
Round it up – Did you know that a hypothetical increased payment of $1,000 instead of $830 could save up to $48,000 over the course of the mortgage? That’s nearly eight years of payments! Ask your lender if this is an option for you.
Make a lump payment – If you get an annual bonus or consistently receive a substantial income tax return, consider using the windfall as a lump payment at the time of your mortgage renewal or sooner if your lender allows it.
When it comes to saving money, it’s common to have difficulty during your first few years of homeownership as you adjust to the added expenses. But it can be done. Here are a few simple ideas to help you cut back:
- Online grocery shopping. How many times do you walk into a grocery store with nine or ten items on your list and leave with a cart full? Instead, do your shopping online and simply drive to the store to pick up your order – no more impulse buying! Check your local retailers to see if the service is offered
- Make your own lunch and coffee every day
- Use public transportation if available
- Install a programmable thermostat to save on energy bills
Monday, May 22, 2017
Laurence Mongeau
Financial Health
We're always talking about what you should do before buying a home. Getting preapproved, finding a great realtor, determining needs and wants and researching neighbourhoods usually top the list when it comes to prepping for a new home purchase.
It's also important to note a few crucial things that you should NOT do before making the largest purchase of your life. Even one of these missteps may affect your preapproval (which is never a guarantee) so avoid doing these five things until after you've closed on your new home!
1. Don't change jobs. Lenders like to see employment stability so the months before you buy a home are not the time to start job hunting.
2. Avoid making large purchases. This is definitely not the time to splurge on that new car, fancy jet ski or even the pricey bedroom set that you've been eyeing. Such major purchases will raise your debt-to-income ratio. Instead, keep building your savings and wait until after you've moved into a home to decide if this purchase is still possible.
3. Don't co-sign a loan. Even if you're absolutely sure that the party you are co-signing for is financially secure, a lender will not look favourably on you co-signing a loan during the mortgage approval process.
4. Don't let those due dates slide by. While paying your bills on time is always a good habit, it is especially crucial when lenders are closely examining your financial history and credit rating.
5. Don't get emotionally attached. When that perfect home comes along, it will be easy to fall in love from the moment you walk through the front door. But this can be dangerous, especially with the current real estate market. Homes are selling for over asking price, so make sure that you are only looking at listings that fall within your budget and mentally prepare yourself for the possibility of being outbid.
Contact Laurence Today!
Take the first step toward a simpler, more luxurious lifestyle with Laurence’s trusted real estate guidance.