My Blog
Household Debt and Rising Interest Rates
Written by Margaret Johnson | Wednesday, 28 March 2012
“The news is out, and it’s all over town," as Hank Williams once wrote. Interest rate hikes have already been seen from the banks on mortgages, unprovoked by a Bank of Canada rate increase because there wasn’t one. The Royal Bank and the TD Bank raised mortgage rates in February to 3.39% on their four year fixed rate. This reenergized speculation that a Bank of Canada interest rate hike looms on the horizon. This first step with higher interest rates also renewed competition over 4 and 5 year locked-in mortgages.
The Five Principles of Financial Planning
Written by Margaret Johnson | Tuesday, 10 August 2010
Most of our clients that come to our Credit Counselling agency with a challenging financial status, in need of help and counselling. We have a very thorough and successful approach and we work through the nitty-gritty with each case giving our personal attention. Many people struggle with knowing where to start in building a strategy in financial planning; we definitely help you with that, but it's important to highlight where to begin: back to the basics and start from ground zero with the five principles of financial planning. I can't tell you how many people have that A-ha! moment once they realize how manageable their money and spending can be.
1: Goals must be identified before they can be achieved.
For most of us, it is usual to have more goals than money; priorities must be attached to goals to reflect their importance in our lives.
2: Evaluation and understanding of present financial resources is basic to future planning.
Assemble all records of income and expenses for the past year, as well as a list of your assets and debts.
Who Is In Charge? You or Your Debts?
Written by Margaret Johnson | Sunday, 08 August 2010
The Answer Is BudgetingBudgeting is not as complicated as it appears. Like most things, it takes a little practice, but once you start off on the right foot with the right plan and stick to it, it becomes second nature. The number one rule: you must be honest with yourself. What are your needs and wants? Do you even know? These are important questions to ask. Being realistic and thorough is the only way a successful budgeting strategy will work.
That may sound fairly basic and maybe even easy, and it can be, but budgeting involves more than just arithmetic. It takes determination. People experiencing financial difficulties need objective, unbiased, neutral information when it comes to money and debt. This is why I do what I do.
In working with many clients over the years who look for and need professional advice and assistance in sound money management through our counselling and educational services, my team and I came up with some really handy budgeting forms and tracking sheets. Yes, we help each person along in the beginning, evaluating financial circumstances and creating cost-effective ways to help resolve debt problems, but it really always comes back to the diligence of good budgeting.
Ten Basic Rules of Money Management
Written by Margaret Johnson | Wednesday, 07 July 2010
It’s hard for most of us to manage our money. Witnessing the collapse of the world economy this past year is evident that we all could use a lesson or two on improving our debt and credit. I’ve outlined ten rules to help you really think as you begin to manage your money. We have to begin somewhere and why not start right now! Practice makes perfect - I guarantee if you put these tips into place, you will be a credit and money maven!
1: Plan for the future, major purchases, and irregular expenses.
2: Set Financial Goals
Set short, mid and long term financial goals.
3: Know Your Financial Situation
Determine your monthly living expenses, irregular expenses and monthly debt payments.
4: Keep A Record Of Daily Expenses
Be aware of where your money is going.
Use a spending diary to assist you in identifying areas where spending adjustments need to made.
A Family Plan: Partnerships and Money
Written by Margaret Johnson | Wednesday, 30 June 2010
I heard that couples fight over three things: sex, kids and money. To be honest, if there was one thing I would never want to break up over and ensure I get on the same page as my partner, it’s money!
It is a common challenge to attain the right family plan financially for people to who share economic resources but do not always share the same financial goals. One partner may want to save as much money as possible to purchase a large ticket item, while the other has a strong need to pursue a hobby or other recreation. Without an endless supply of money, this couple will have difficulty in reaching both of their goals. It is likely they will experience problems in their relationship until they are able to settle their differences.
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