Author Archive: Natasha McKenna

5 Common Tax Mistakes to Avoid

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189By: The Investors Education Fund

1. Moving expenses

You can only claim moving expenses that your employer hasn’t already reimbursed you for. If you have been reimbursed for some or all of your moving expenses, you must include this as income on your tax return.

2. Public transit costs

You can’t claim day passes, tokens or tickets. You can only claim a monthly or annual transit pass.

Find out how whether you’re eligible and how to claim public transit costs by watching this video from the Canada Revenue Agency.

3. Interest paid on student loans

You can only claim interest on student loans made to you under the Canada Student Loans Act, theCanada Student Financial Assistance Act, or similar provincial or territorial government laws. You can’t claim interest paid on any other kind of loan, even if it is to finance your education. Example: a line of credit. You can’t transfer the claim to anyone else, even if they paid the interest on the loan.

4. Union and professional dues

Your employer may withhold dues from your pay. This will be noted on your T4 slip and you can claim a corresponding deduction. You may also get a receipt for these dues from your union or association. But you can only claim the deduction once. If you have been reimbursed for dues paid, you cannot claim any of the dues as a deduction unless your employer has included them as a taxable benefit on your T4.

5. Other deductions (line 232)

You can only use line 232 to claim allowable amounts not deducted anywhere else on your return. You can’t use this line to claim personal or living expenses that are not legitimate tax deductions. Examples: funeral costs, wedding costs, legal fees paid for separation or divorce agreements.

Sourced from: http://www.getsmarteraboutmoney.ca/en/managing-your-money/

30 Things to Start Doing for Yourself

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99By: Marc Chernoff

Our previous article, 30 Things to Stop Doing to Yourself, was well received by most of our readers, but several of you suggested that we follow it up with a list of things to start doing.  In one reader’s words, “I would love to see you revisit each of these 30 principles, but instead of presenting us with a ‘to-don’t’ list, present us with a ‘to-do’ list that we all can start working on today, together.”  Some folks, such as readers Danny Head and Satori Agape, actually took it one step further and emailed us their own revised ‘to-do’ versions of the list.

So I sat down last night with our original article and the two reader’s revisions as a guide, and a couple hours later finalized a new list of 30 things; which ended up being, I think, a perfect complement to the original.

Here it is, a positive ‘to-do’ list for the upcoming year – 30 things to start doing for yourself:

  1. Start spending time with the right people. – These are the people you enjoy, who love and appreciate you, and who encourage you to improve in healthy and exciting ways.  They are the ones who make you feel more alive, and not only embrace who you are now, but also embrace and embody who you want to be, unconditionally.
  2. Start facing your problems head on. – It isn’t your problems that define you, but how you react to them and recover from them.  Problems will not disappear unless you take action.  Do what you can, when you can, and acknowledge what you’ve done.  It’s all about taking baby steps in the right direction, inch by inch.  These inches count, they add up to yards and miles in the long run.
  3. Start being honest with yourself about everything. – Be honest about what’s right, as well as what needs to be changed.  Be honest about what you want to achieve and who you want to become.  Be honest with every aspect of your life, always.  Because you are the one person you can forever count on.  Search your soul, for the truth, so that you truly know who you are.  Once you do, you’ll have a better understanding of where you are now and how you got here, and you’ll be better equipped to identify where you want to go and how to get there.  Read The Road Less Traveled.
  4. Start making your own happiness a priority. – Your needs matter.  If you don’t value yourself, look out for yourself, and stick up for yourself, you’re sabotaging yourself.  Remember, it IS possible to take care of your own needs while simultaneously caring for those around you.  And once your needs are met, you will likely be far more capable of helping those who need you most.
  5. Start being yourself, genuinely and proudly. – Trying to be anyone else is a waste of the person you are.  Be yourself.  Embrace that individualinside you that has ideas, strengths and beauty like no one else.  Be the person you know yourself to be – the best version of you – on your terms.  Above all, be true to YOU, and if you cannot put your heart in it, take yourself out of it.
  6. Start noticing and living in the present. – Right now is a miracle.  Right now is the only moment guaranteed to you.  Right now is life.  So stop thinking about how great things will be in the future.  Stop dwelling on what did or didn’t happen in the past.  Learn to be in the ‘here and now’ and experience life as it’s happening.  Appreciate the world for the beauty that it holds, right now.
  7. Start valuing the lessons your mistakes teach you. – Mistakes are okay; they’re the stepping stones of progress.  If you’re not failing from time to time, you’re not trying hard enough and you’re not learning.  Take risks, stumble, fall, and then get up and try again.  Appreciate that you are pushing yourself, learning, growing and improving.  Significant achievements are almost invariably realized at the end of a long road of failures.  One of the ‘mistakes’ you fear might just be the link to your greatest achievement yet.
  8. Start being more polite to yourself. – If you had a friend who spoke to you in the same way that you sometimes speak to yourself, how long would you allow that person to be your friend?  The way you treat yourself sets the standard for others.  You must love who you are or no one else will.
  9. Start enjoying the things you already have. – The problem with many of us is that we think we’ll be happy when we reach a certain level in life – a level we see others operating at – your boss with her corner office, that friend of a friend who owns a mansion on the beach, etc.  Unfortunately, it takes awhile before you get there, and when you get there you’ll likely have a new destination in mind.  You’ll end up spending your whole life working toward something new without ever stopping to enjoy the things you have now.  So take a quiet moment every morning when you first awake to appreciate where you are and what you already have.
  10. Start creating your own happiness. – If you are waiting for someone else to make you happy, you’re missing out.  Smile because you can.  Choose happiness.  Be the change you want to see in the world.  Be happy with who you are now, and let your positivity inspire your journey into tomorrow.  Happiness is often found when and where you decide to seek it.  If you look for happiness within the opportunities you have, you will eventually find it.  But if you constantly look for something else, unfortunately, you’ll find that too.  Read Stumbling on Happiness.
  11. Start giving your ideas and dreams a chance. – In life, it’s rarely about getting a chance; it’s about taking a chance.  You’ll never be 100% sure it will work, but you can always be 100% sure doing nothing won’t work.  Most of the time you just have to go for it!  And no matter how it turns out, it always ends up just the way it should be.  Either you succeed or you learn something.  Win-Win.
  12. Start believing that you’re ready for the next step. – You are ready!  Think about it.  You have everything you need right now to take the next small, realistic step forward.  So embrace the opportunities that come your way, and accept the challenges – they’re gifts that will help you to grow.
  13. Start entering new relationships for the right reasons. – Enter new relationships with dependable, honest people who reflect the person you are and the person you want to be.  Choose friends you are proud to know, people you admire, who show you love and respect – people who reciprocate your kindness and commitment.  And pay attention to what people do, because a person’s actions are much more important than their words or how others represent them.
  14. Start giving new people you meet a chance. – It sounds harsh, but you cannot keep every friend you’ve ever made.  People and priorities change.  As some relationships fade others will grow.  Appreciate the possibility of new relationships as you naturally let go of old ones that no longer work.  Trust your judgment.  Embrace new relationships, knowing that you are entering into unfamiliar territory.  Be ready to learn, be ready for a challenge, and be ready to meet someone that might just change your life forever.
  15. Start competing against an earlier version of yourself. – Be inspired by others, appreciate others, learn from others, but know that competing against them is a waste of time.  You are in competition with one person and one person only – yourself.  You are competing to be the best you can be.  Aim to break your own personal records.
  16. Start cheering for other people’s victories. – Start noticing what you like about others and tell them.  Having an appreciation for how amazing the people around you are leads to good places – productive, fulfilling, peaceful places.  So be happy for those who are making progress.  Cheer for their victories.  Be thankful for their blessings, openly.  What goes around comes around, and sooner or later the people you’re cheering for will start cheering for you.
  17. Start looking for the silver lining in tough situations. – When things are hard, and you feel down, take a few deep breaths and look for the silver lining – the small glimmers of hope.  Remind yourself that you can and will grow stronger from these hard times.  And remain conscious of your blessings and victories – all the things in your life that are right.  Focus on what you have, not on what you haven’t.
  18. Start forgiving yourself and others. – We’ve all been hurt by our own decisions and by others.  And while the pain of these experiences is normal, sometimes it lingers for too long.  We relive the pain over and over and have a hard time letting go.  Forgiveness is the remedy.  It doesn’t mean you’re erasing the past, or forgetting what happened.  It means you’re letting go of the resentment and pain, and instead choosing to learn from the incident and move on with your life.
  19. Start helping those around you. – Care about people.  Guide them if you know a better way.  The more you help others, the more they will want to help you.  Love and kindness begets love and kindness.  And so on and so forth.
  20. Start listening to your own inner voice. – If it helps, discuss your ideas with those closest to you, but give yourself enough room to follow your own intuition.  Be true to yourself.  Say what you need to say.  Do what you know in your heart is right.
  21. Start being attentive to your stress level and take short breaks.– Slow down.  Breathe.  Give yourself permission to pause, regroup and move forward with clarity and purpose.  When you’re at your busiest, a brief recess can rejuvenate your mind and increase your productivity.  These short breaks will help you regain your sanity and reflect on your recent actions so you can be sure they’re in line with your goals.
  22. Start noticing the beauty of small moments. – Instead of waiting for the big things to happen – marriage, kids, big promotion, winning the lottery – find happiness in the small things that happen every day.  Little things like having a quiet cup of coffee in the early morning, or the delicious taste and smell of a homemade meal, or the pleasure of sharing something you enjoy with someone else, or holding hands with your partner.  Noticing these small pleasures on a daily basis makes a big difference in the quality of your life.
  23. Start accepting things when they are less than perfect. – Remember, ‘perfect’ is the enemy of ‘good.’  One of the biggest challenges for people who want to improve themselves and improve the world is learning to accept things as they are.  Sometimes it’s better to accept and appreciate the world as it is, and people as they are, rather than to trying to make everything and everyone conform to an impossible ideal.  No, you shouldn’t accept a life of mediocrity, but learn to love and value things when they are less than perfect.
  24. Start working toward your goals every single day. – Remember, the journey of a thousand miles begins with one step.  Whatever it is you dream about, start taking small, logical steps every day to make it happen.  Get out there and DO something!  The harder you work the luckier you will become.  While many of us decide at some point during the course of our lives that we want to answer our calling, only an astute few of us actually work on it.  By ‘working on it,’ I mean consistently devoting oneself to the end result.  Read The 7 Habits of Highly Effective People.
  25. Start being more open about how you feel. – If you’re hurting, give yourself the necessary space and time to hurt, but be open about it.  Talk to those closest to you.  Tell them the truth about how you feel.  Let them listen.  The simple act of getting things off your chest and into the open is your first step toward feeling good again.
  26. Start taking full accountability for your own life. – Own your choices and mistakes, and be willing to take the necessary steps to improve upon them.  Either you take accountability for your life or someone else will.  And when they do, you’ll become a slave to their ideas and dreams instead of a pioneer of your own.  You are the only one who can directly control the outcome of your life.  And no, it won’t always be easy.  Every person has a stack of obstacles in front of them.  But you must take accountability for your situation and overcome these obstacles.  Choosing not to is choosing a lifetime of mere existence.
  27. Start actively nurturing your most important relationships. – Bring real, honest joy into your life and the lives of those you love by simply telling them how much they mean to you on a regular basis.  You can’t be everything to everyone, but you can be everything to a few people.  Decide who these people are in your life and treat them like royalty.  Remember, you don’t need a certain number of friends, just a number of friends you can be certain of.
  28. Start concentrating on the things you can control. – You can’t change everything, but you can always change something.  Wasting your time, talent and emotional energy on things that are beyond your control is a recipe for frustration, misery and stagnation.  Invest your energy in the things you can control, and act on them now.
  29. Start focusing on the possibility of positive outcomes. – The mind must believe it CAN do something before it is capable of actually doing it.  The way to overcome negative thoughts and destructive emotions is to develop opposing, positive emotions that are stronger and more powerful.  Listen to your self-talk and replace negative thoughts with positive ones.  Regardless of how a situation seems, focus on what you DO WANT to happen, and then take the next positive step forward.  No, you can’t control everything that happens to you, but you can control how you react to things.  Everyone’s life has positive and negative aspects – whether or not you’re happy and successful in the long run depends greatly on which aspects you focus on.  Read The How of Happiness.
  30. Start noticing how wealthy you are right now. – Henry David Thoreau once said, “Wealth is the ability to fully experience life.”  Even when times are tough, it’s always important to keep things in perspective.  You didn’t go to sleep hungry last night.  You didn’t go to sleep outside.  You had a choice of what clothes to wear this morning.  You hardly broke a sweat today.  You didn’t spend a minute in fear.  You have access to clean drinking water.  You have access to medical care.  You have access to the Internet.  You can read.  Some might say you are incredibly wealthy, so remember to be grateful for all the things you do have.

Sourced from: http://www.marcandangel.com/2011/12/18/30-things-to-start-doing-for-yourself/

Gail’s 12 Steps to Getting Organized Financially

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OrganizedBudgetBinder6By: Gail Vaz Oxlade

Set-Up

  1. Gather all your paperwork.
    Create a file folder for each of the following:• Chequing accounts
    • Savings accounts
    • Retirement accounts
    • Investment accounts
    • Credit card accounts
    • Loans
    • Personal lines of credit
    • Mortgage
    • Insurance: life, disability, health, critical illness, home, car
    • Estate: wills & powers of attorney
    • Tax returns

  2. Welcome to 21st Century banking
    If you don’t already have it, set up telephone or internet banking for your accounts.
  3. Reduce fees by setting up a buffer
    If you can afford it, transfer $1,000 float to your chequing account (pretend it isn’t there) and use that to minimize your banking costs.
  4. Save automatically
    Create an auto-debit from your chequing account to a savings account that will not be touched. Most people won’t put money into a savings account on a regular basis, opting to wait for a tax-refund or bonus before setting aside some money for the future. Establish an automatic savings deposit every month and your nestegg will accumulate faster than you think.
  5. Create a Monthly Bill Summary
    List your bills in the date order they need to be paid to prevent you from missing a bill. If you have bills that are paid automatically from your account, write an “A” beside these bills and remember to deduct them from your Spending Journal at bill payment time each month.
  6. Set-up your in-baskets
    Create an in-basket with two Bills folders labeled “1-15” and “16-31”
    When a bill comes in, look at the due date and put the bill it in the appropriate folder. Recycle all the marketing crap in the envelope.
    Create a second in-basket with 3 folders labeled “bank statements”, “bills paid” and “tax receipts”.Weekly

  7. Make a date with your money
    On the 12th and 28th of each month to pay bills, set aside the time in your schedule – you’ll need about 30 minutes, depending on your bills — to pay your bills.Always pay your bills in one place that you’ve equipped with your bill paying system, spending journal, envelopes, stamps, pens, pencils, a calculator, tape, a stapler and return address labels and recycling bin for all that marketing stuff you’re going to dump.

    When you pay a bill, write the cheque or transaction number, amount paid, and the date you paid it on the bill. Put the paid bill in your “bill’s paid” file. Deduct the amount you’ve spent from your Spending Journal. If a bill has not been paid in full (tax bills are paid over several months, for example) put it back in your Bills Folder so you don’t forget it.

    Monthly

  8. Reconcile you bank statements
    When you bank statements come in, put them in your in-box folder. Make a date when all your statements are in (it’ll depend on when you receive them) to:1. review your statements to make sure there are no mistakes
    2. reconcile your Spending Register; clearly mark the cheques that have been returned to you and highlight the ones in your Spending Register that haven’t yet cleared the bank. A cheque that is taking a long time clearing the bank can lull you into thinking you have more money than you do. Go back at least a month to make sure all previous check have cleared.
    3. talk about anything unusual

    Quarterly

  9. File
    Once a quarter, file all your paperwork to keep your system current.
  10. Talk
    Have a dinner with your business partner and talk about the bumps, your goals and how you’re doing. Annually
  11. Re-vamp your budget
    Review your budget using last years cc statements and bank statements to see what you actually spent. If you spent more on a particular category, make sure you know why, or look for ways to trim.
  12. Clean up
    Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing/budgeting purposes.

 

Sourced from: http://www.gailvazoxlade.com/resources/12steps_getting_organized_financially.html

33 Parent Tips For Saving Money At Christmas

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mother-son-christmas

By: Nicole Avery

This post is part of my 10 Week Christmas Planning Series. Click here to read more posts – Christmas Planning 2013.

Through out this series we have been discussing how much we spend on kids at Christmas and Christmas overall. A common theme has been that readers would like to be spending less than what they currentlty do. In the quick survey I conducted I asked for readers tips on hot to save at Christmas time. Below are a collection of tips from other parents, that might help you spend a little less this year!

The anonymous tips come from the survey. Tips with a name attached were given to me via my facebook page.

Presents for kids

  • Jennifer McMahon Clark shared a philosophy I had hear before, when buying for kids give them “Something they WANT, something they NEED, something they WEAR and something they READ.”
  • Steer clear of things that don’t last, use Christmas time as a chance to stock up on things they really need. Not stuff they will only play with for a week.
  • Rachel McNaughton shared that they spend “The [same] amount we spend on our sponsor children in Africa… Seems only fair!!”
  • Nicolette White Sporys spends $200-$300 each, but it – “Includes outfit for the day, art supplies, a book, a large individual present and a shared gift such as a tent. No gifts till they are 2 or 3 and are aware of Christmas. This year they are getting ballet lessons as I’m trying to move awayfrom stuff and towards experiences.”
  • Jenny Davies shared their Christmas eve tradition – “I make up a box on which they both get brand new pair of pyjamas each, new slippers, snowman soup, new toothbrush and toothpaste. I also buy a Christmas Story and a Christmas film for them to share. We sit & watch the film while they drink their snowman soup (hot chocolate and marshmallows). Then they brush their teeth with their new toothbrushes and toothpaste before getting into their new pyjamas and snuggling down to have their Christmas story read to them. I love making their Christmas Eve box up!”
  • Samantha McWilliam takes a save first approach – “I have 8 children and how much I spend on each child depends on what kind of year we had and how much money ended up in the Christmas account. We did however tell Santa that he needed to be consistent and spend the same amount on each child each year.”
  • Nat Egan shares – “Around the AU$200 mark…one main present, then just fillers. But stuff that they need anyway…lunch boxes, etc…they do get fun stuff too. But I like to “bulk” it out with the necessities.”
  • My kids get a santa bag that is left on their bed and a main gift that is left under the Christmas tree. The santa bag is filled with essential stuff they ould get anyway – undies, socks, school supplies, toothbrush, deodorant, hair products, something to wear Christmas day and bathers, maybe even a small lego and a treat. They can spend ages emptying out the bag and comparing their finds and are genuinely excited over everything. (I always received a santa bag when I was a kid and loved it. Confession – I still get a santa bag each year up at mum and dads, it still has much the same things in it and a giant tub of Milo!).
  • Keep in mind that in our country our children really don’t ‘need’ anything!
  • We always bought 2nd hand christmas gifts for our kids at baby and toddler age, plus one bought “big” present. Its not until they are older that we started buying more costly things they wanted.

Planning your Christmas shopping

  • Buy through the year at sales so you don’t find yourself scrambling buying anything and at the most expensive price at the last minute.
  • Try not to be “sucked in” by the $1 here and $3 there additions to the shopping basket. It’s amazing how much these things can add up. Plan before you go shopping and/or do a pre-buying trip to see what’s available if you’re not sure and then go home to think about it and make a list before you actually buy and then realise you already have things or have too much!
  • Don’t leave it all to the last minute. Have a list of who you need to buy for, pick up things as you see them, when on sale, put away.
  • Buy presents through out the year. Sometimes picking up an item second hand on Ebay allows for a greater value present at a lower cost.
  • Shop for toys in the July toy sales- most have Christmas laybys so you don’t have to try and hide them for too long. Do as much shopping online as possible, to avoid impulse buys. I find ezibuyand identitydirect are good sites for gifts.
  • Buy cards, gift tags and paper after Christmas ready for next year.
  • I start a list in June with items that the kids or hubby have expressed interest in. Then I watch for the sales in the next 6 months and buy things ahead of time. Usually everything is purchased by Dec 1.
  • Online window shopping to get an idea of what is out there and how much to pay. Sometimes I buy online if its cheaper, otherwise I only go to the shops I need to, not into all shops.
  • Setup secret Santa or kris kringles for nieces & nephews rather than buying for them all.
  • Co-ordinate (lots of talking or just a group email) with extended family members so they are aware of what ‘Santa’ might be bringing and they can get things related. Therefore there is no great need for Santa to have to bring all desired objects. eg. Wooden railway- Santa gives basic train and some track and then everyone else gives additional trains or track sets. Clever Santa could have sent messages or everyone was just thinking alike! or Santa gives the bike while Grandparents give the helmet etc. PS- this is not a last minute thing it needs to be done early when people haven’t started their Christmas shopping yet
  • Don’t leave it until the last minute, buy things throughout the year. We never ever use credit cards for Xmas so nice not be faced with a huge debt in Jan. Lay by is a good option, also loveBook Depository and Amazon can be very cheap but you need to order a lot to justify the shipping costs.
  • I set up a Christmas Budget account and put $100 in it each month. It covers my daughter’s presents and presents for other people and whatever’s leftover we spend on food & drink over the Christmas period. I also buy ALL the Christmas presents in the EOFY sales so save heaps. It is SO much less stressful now!!! I try to buy one outdoor toy each year, but by having this budget I get to, say, October and depending on how much I have left to spend it could be a football or a giant swingset thing!!!
  • Buying gifts through the year when on sale. Have started using ‘reusable’ wrapping (eg fabric gift bags, or scarve/like-minded extended family. Lengths of fabric as furoshiki) for our immediate family. (Small initial cost, but mostly lengths of fabric I already had) Also, doing a ‘Kris Kringle’ with extended family, so we buy a single, decent gift rather than many smaller gifts has saved a fair bit.
  • Make things yourself – start doing it early in the year and you can save heaps this way.
  • Keep a Christmas notebook with budget, people to buy for, presents bought / ideas, receipts and layby info to keep everything in the one place.
  • Keep a list of items purchased and put away – so you remember who you have purchased for and you don’t end up with 10 gifts for one child and only one gift for another!
  • 1. Keep a running list of items the kids/other family members would like/have mentioned throughout the year 2. Buy any of these items when they’re on sale – online wishlists are great for keeping track and noting sales 3. i find books are great presents for almost everyone as you can nearlyalways find one to reflect someone’s interests for quite a reasonable price – bookdepository is great for this.
  • I buy 2 boxes of chocolates and have them wrapped and handy for unexpected guests.
  • I create my own Xmas hamper by buying extra of regular non perishables when they go on special every time I go food shopping from October. I also set a Colours theme for wrapping each year and find everything the previous year on sale if I can.
  • Don’t get caught up in the hype, and make as much as you can from scratch.
  • We don’t buy a lot of snack foods and fizzy drinks eg shortbread etc, we buy a few treats for a couple of days over Christmas and for entertaining, but try to keep a lid on it for cost and health reasons. We share dinner costs with family members and have a Secret Santa too.
  • Redeem fly buys to buy get a gift or voucher.
  • I get the toy catalogues that come out mid year and start planning roughly what to get them. I leave them out and the kids often start looking at them and telling me what they like. It might not save money as such but it ensures I can hone in on what they want and get quality not quantity.

Sourced From: http://planningwithkids.com/2013/10/30/33-parent-tips-for-saving-money-at-christmas/

7 Holiday Budgeting Tips for Couples

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hot_coupleBy: Lynnette Khalfani-Cox

The holidays are fast approaching, and even if you know how to stick to a budget, the same thing may not be true of your spouse or partner. All couples face money challenges from time to time. But the extra spending that often occurs during the holiday season can put added financial pressures on a relationship.

The good news is that even if you and your significant other have totally different spending habits, you can learn to compromise, reduce financial conflict and take some other steps to ensure your financial harmony. Here are seven tips on how to manage your holiday budget—especially when your mate loves to spend money or doesn’t view personal finances the way you do.

1. Accept each other’s money personalities

To minimize spending disagreements, start by acknowledging and accepting your honey’s money personality.

Your mate may be a compulsive shopper who wants to play Santa and buy gifts for virtually all of your friends and family. Or he or she may tend to be Scrooge-like, and bristle at the thought of spending more than $25 or any one gift.

Whatever the case, this is likely an intrinsic part of who they are. So don’t start from the position that you need to “change” the other person.

Over time, some of their more excessive behavior may change—especially if you are a positive influence and handle money conversations sensitively without being accusatory.

However, when you don’t agree with your partner’s spending choices or fiscal habits, understand that you simply don’t have the same perspective about money, and you probably never will.

2. Create a realistic budget together

Don’t allow one person to shoulder the sole responsibility of creating a holiday budget or managing your joint accounts and holiday purchases. That’s asking for trouble when two individuals have completely different views about money and different financial practices.

Instead, set aside time to review finances together and create a realistic holiday budget based on your spending habits and your mate’s, as well as how much cash flow you both have. The idea is to establish a reasonable spending plan (i.e., budget) that both of you can live with and agree to stick with during the holidays.

Even though it may be tough to have “the talk” about money and holiday spending, keep in mind that couples that can work through thorny financial issues instead of just avoiding money conversations are helping to keep their relationships intact.

That’s because all that better financial communication can help you create more open dialogue about non-money issues as well. And good communication is a cornerstone of a healthy, thriving relationship.

3. Set spending limits

If your significant other just can’t stop spending or has a tendency to go on impulsive spending sprees when he or she hears jingle bells and holiday music, make sure he or she is aware of where things stand financially as the weeks go by.

You don’t want your mate to keep shopping every week, to go hog wild on Black Friday or Cyber Monday, and keep spending right up until Christmas Eve if it means he or she is blowing your agreed-upon budget or is being dishonest about how much he or she is spending.

Bringing up the issue without being confrontational can be tricky, but you both really do need to keep tabs on the overall household spending in November and December. Otherwise, you’ll look up later in the New Year and find that a whole slew of additional purchases were made that fell outside your budget.

4. Don’t feed a credit card habit

If you can’t pay off your balances in full, don’t fall into the trap of using credit cards for your holiday purchases—even if you’re earning cash back or any type of rewards.

The credit card habit can be very difficult to break when someone in the family enjoys shopping with credit for holiday toys, decorations, clothes or other items. Take steps to pay for as much as possible with cash, and encourage your significant other to bring cash—not just credit cards—on each shopping trip.

5. Do more holiday shopping together, including comparison-shopping

When you need to tighten up your holiday budget and your significant other still insists on additional shopping, plan on shopping together. Take the time to create a specific gift list so that random purchases don’t wind up in your shopping basket.

Also, be sure to set aside time before going on a shopping trip to research items, compare prices, and make the best decisions about what gifts you’ll buy, where, and at what price.

Sometimes just having someone along to shop with can be enough to ward off a mindless shopping spree, and may help your significant other make more rational purchasing decisions.

A word of caution though: don’t become Scrooge or the shopping police, constantly saying “no” or acting like you’re going to “fine” your mate for every shopping “violation.” If you become nothing but a holiday “killjoy,” your mate

will quickly tire of having you go along on holiday shopping ventures.

6. Agree on financial fidelity

Either one of you can blow your holiday budget if you keep financial secrets. Surprisingly though, many people keep money secrets from their spouses or significant others.

If you’re shopping on the sly, buying clothes, shoes or other goods and hiding them from your partner, you may think you’re avoiding an argument. In reality, you’re being financially unfaithful and are building up a wall of secrecy that prevents open and honest communication.

Even worse, if your mate finds out you’ve been keeping secret bank accounts, spending without his or her knowledge, or making other financial moves in secret, he or she may resent you and wonder what other secrets you’re keeping.

7. Realize that separate accounts are OK

It’s perfectly fine to have separate checking or savings accounts even when you’re in a committed relationship. In fact, separate accounts (again, one that your partner knows about; not a “secret” account”) can be healthy and beneficial for both parties in several ways.

Having your own checking account helps you learn to balance a checkbook and manage cash flow. It also reduces arguments about money, because it gives each individual a greater sense of financial autonomy. And finally, a separate account can be a nice way for the more fiscally “responsible” party in a relationship to demonstrate or model “good” financial behaviors to the other person.

After all, if you’re the saver or planner in a relationship, and your mate is always spending and constantly broke, it’s possible that your good habits might rub off on your honey, particularly if they see your separate account is never overdrawn or down to its last dollar—even if it is the holiday season.

Many couples that achieve financial harmony ultimately find that it’s best to have both separate accounts and a joint account as a way to most effectively manage their budgets.

And when you’re on the same financial page as your mate, money differences start to fade into the background—giving you both greater happiness and togetherness during the holidays and all year-round.

Lynnette Khalfani-Cox is a personal finance expert and co-founder of the free financial advice site.

Read more at EBONY http://www.ebony.com/career-finance/7-holiday-budgeting-tips-for-couples-777/2#ixzz2lP3knflv

Do You Lie To Your Spouse About Holiday Spending?

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By: Andrea Updyke

A few years ago, my husband and I decided to create a pretty strict budget.

We wanted to pay down our student loans and be realistic about the fact that I was no longer bringing home a full-time salary. It was time to tighten the ol’ purse strings and it took a lot of planning. We did the usual things like cutting spending, canceling cable and other non-essentials, and saving a bit each month for emergencies.

One year, after a particularly costly Christmas, we realized we needed to add holiday spending into the budget. We knew that even saving just a few dollars a month would be better than having a big  bill at the end of the year. We travel for the holidays every other year and it seemed like a no-brainer. I was doing a bit of freelance work here and there and we wanted to make the most of it. Of course, the only reason we were able to do this because we were on the same page.

According to a recent survey by McGraw-Hill Federal Credit Union,

Not only do today’s couples experience anxiety over holiday shopping, many partners also lie to each other to cover up just how much they’ve spent or plan to spend.

From a sampling of over 1,000 couples in 3 different segments: married, same-sex and divorced but remarried/in-a-relationship, MHFCU found the following to be true:

  • 48% of all heterosexual couples disagree with their partner on how much to spend during the holidays.
  • 43% of divorced but remarried/in-a-relationship couples disagree with their partner’s spending. However, the percentage drops to 37% for same-sex couples.
  • 34% of heterosexual couples have lied to their spouse about holiday spending, while 25% of divorced/remarried or in-a-relationship, and same-sex couples lie to their partner.
  • More than 50% of married couples report paying with cash to cover up a large purchase and more than 1-in-10 has taken out a credit card in their own name to hide their spending.
  • Same-sex couples are more likely to retrieve/pay a bill before a partner notices.

At first glance, these numbers seem pretty shocking to me. I mean, I know we are talking about the holidays and it is the season of giving. But when lying and deceit gets tangled up in the process the magic seems to dull a bit for me. Just like any other area in a marriage/relationship, people aren’t always honest with each other. In and of itself that is just too bad.

I am fortunate that my husband and I are on the same page when it comes to finances. But that is because we are intentional about our goals and how we are going to get there. If you aren’t in agreement, things can go downhill quickly.

Sourced from: http://blogs.babycenter.com/mom_stories/11182013-do-you-lie-to-your-spouse-about-holiday-spending/

 

FINANCIAL LITERACY MONTH

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November 1st marked the official launch of Canada’s third annual Financial Literacy Month (FLM). Financial literacy means having the knowledge, skills and confidence to make responsible financial decisions. This year’s FLM puts the focus on learning or brushing up on the basics of money management at any age.

As a not-for profit organization offering free credit counselling, Family Service PEI meets people of all ages who are looking to improve their financial literacy.Being financially responsible is something that continues throughout the lifespan. However, this task is proving to be difficult in today’s consumer driven society. Family Service PEI believes the difficulty can be partially attributed to the accessibility of credit and the relative lack of available information about the consequences of misusing credit.

The average level of personal debt in Canada rose 21 per cent this year to $15,910, according to a survey done this August for Royal Bank of Canada. The third annual RBC debt poll only measures non-mortgage debt such as credit cards, lines of credit and loans.

Family Service PEI’s statistics from the past year indicate the average amount owing on all consumer debt for new clients is $29,899. This does not include mortgages, vehicle loans, student loans, or any other secured debt. They estimate that 90 percent of clients coming through the door are doing so because they are in financial crisis. “Many clients do not have the skill set to identify how to live within their means, or identify the warning signs that they are headed for crisis,” says Denise Lockhart, Executive Director of Family Service PEI.

Reaching out for help is a step in the right direction. If any of the following applies to you, it may be time to take that step:

–       You do not have a budget

–       You do not know where your money is going

–       You are frequently using credit

–       You do not have money left at the end of the month

Family Service PEI is a not-for-profit agency providing free Credit Counselling to all Islanders, helping people to examine all options for decreasing debt, including an analysis of lifestyle and spending habits in order to help people understand the warning signs that a financial crisis may be looming. Additionally, Family Service PEI provides affordable and effective Therapeutic Counselling services to Islanders as financial stress impacts many other areas of a person’s life.

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For more information on this subject, or to schedule and interview, please contact Denise Lockhart – Executive Director, Family Service PEI at 1-902-892-2441 or via email: director@familyservice.pe.ca

Who Is Eligible for Credit Counselling Services?

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CORBIS1-00030810-001By: Credit Counselling Services of Atlantic Canada

Credit counselling services involve the assessment of your financial situation and the development of a methodic debt relief plan. Credit counseling is good for anyone looking to reduce or eliminate debt or simply wishing to learn how to manage money effectively. It is about getting the right advice from expert counsellors on how to handle your finances with respect to your situation. Therefore, there are no restrictions to qualifying for credit counselling services.

Specific Amount of Debt – There are no limitations as to the debt amount that you must have in order to seek credit counselling. You can qualify for credit counselling services and benefit from the advice of certified counsellors whether you hold $2,000 or $200,000 in debt.

Income Level – Reliable credit counselling companies review your financial situation and offer you financial counselling, debt management solutions, and consolidation relief, regardless of your income. You are not applying for a loan with these companies, so your income has no relevance for credit counselling services, however, if a debt management program is your best option, you do need to ensure you have enough in your budget to make your monthly deposit.

Behind With Payments – You can benefit from credit counselling even if you are behind with one payment. You can even benefit if you are not behind with any payments yet, but you feel like you can no longer handle your current debt. Late payments come with damaging effects that can be hard to control or reduced once they set in. That is why it is advisable to seek credit counselling services before you are several months behind on your payments.

No collateral – You will be perfectly eligible for credit counselling even if you don’t have any assets. Credit counselling services focus on changing your habits in order to achieve debt relief and regain your financial independence. It is not about converting unsecured debts into secured ones, so there is no need to have collateral.

Filing for Bankruptcy – A credit counsellor can open the doors to new opportunities and show you alternatives you never thought you had. Even if you are in a desperate situation and considering bankruptcy, take the time to check with a credit counsellor first. One of the roles of credit counselling services is to offer tailored debt management plans that allow you to obtain affordable payments over a reasonable time frame. You will be avoiding the stigma and emotional impact of bankruptcy.

You are eligible for credit counselling services as long as you have debt and are interested in managing it without getting into more debt. As long as you are committed to finding a reasonable solution and are honest about your needs and situation, you can benefit from the experience of credit counsellors. Credit counselling services will give you access to a team of people with unique skills: credit knowledgeable negotiators, mediators, and facilitators. They are all finance experts with particular qualifications in debt management and budgeting.

Sourced from: http://www.solveyourdebts.com/blog/who-is-eligible-for-credit-counselling-services/