by Marissa on May 8, 2013
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A lot of consumers think that financial responsibility is a matter to be left to the future, but it actually depends on what you’re thinking and doing right now. Making sure that you have enough cash to cover your bills at the moment is important, but what will you do in the case of an emergency that drains your checking account? And how will you save for retirement? These are the kinds of questions that lead to a rock solid financial plan that you can put in place today. Here’s how.
Make a savings plan. The foundation of any successful financial plan is learning how to save. While this financial concept strikes fear in the heart of even the most diligent planner, saving doesn’t have to be difficult. Start your plan by working backwards: at the end of the year, how much do you want to have saved? Break that amount into smaller monthly installments so that you can go step by step.
Decide how you’ll cut your budget. A lot of people focus on where to cut their budgets instead of answering the question, “how?” It is easier to trim your spending if you develop a financially holistic approach. Instead of saying that you’ll give up on all the little pleasures–like that $5 cup of coffee–make a resolution to do those things limitedly. Also, you should strategize how to save on necessities, too. A lot of your budget cutting can come from paying a lower rate on your cable or finding a cheaper phone service provider, for example.
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by Marissa on May 7, 2013
With the arrival of the first-ever Global Kids Fashion Week a few months ago, high-end designer clothing has found a new limelight. Now, fashion industry titans like Marc Jacobs, Paul Smith, Stella McCartney, Burberry, and Tommy Hilfiger are making miniature versions of their stylish high-end pieces for little fashionistas to wear everywhere from special events to high street, and celeb kids like Suri Cruise, Romeo Beckham, Zahara Jolie-Pitt, and Jayden and Willow Smith are doing just that.
But luxury designer clothing comes at an expensive price, which begs the question: is dressing smart worth the cost—especially for kids? After all, trends are updated each season, and kids tend to outgrow their clothes even before new looks hit the runways. While it’s true that dressing the entire family in designer threads on a regular basis is far from financially practical, there are some special occasions that just may warrant dressing up in those high-end pieces.
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by Marissa on May 1, 2013
For today’s traveller owing an unlocked phone is part of being mobile. But for those of us who are just move from one continent to another once or twice in a lifetime, phone costs are very different between the two continents.
While most telecommunication service providers offer you the option to buy the phone outright in both continents, most consumers still opt to go into a contract and get a discounted rated on their device.
This makes sense if:
- you’re planning on staying with the same company for a while.
- you found a great deal that needed you to lock in.
- the cost of the phone is too high or the device is too new and you can’t afford to buy it outright.
The biggest perk of buying your device outright is the flexibility that it offers. Most companies are willing to discount your services because they know that you are free to leave. This only happens when you have tenure. You can’t call up on the second day and ask for a discount.
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by Marissa on April 22, 2013
Post secondary education is very expensive in North America and unless you are fairly wealthy will be a worry for most parents. Obviously, not all kids go onto University or College but if they do and you haven’t planned for it you could find yourself with a large financial burden. This would probably happen just when most families are looking at finally having some financial security
A Registered Education Savings Plan – RESP – is vital for your financial health if you have kids who you feel may want to go into post secondary education. An RESP is government sponsored (Registered with Canada Customs and Revenue Agency) and is allowed to grow tax free. Money paid from the plan at maturity may be taxed as income for the student.
The plans are administered by private companies/persons (Promoter) who will collect contributions and invest them accordingly. Up to $4,000 per beneficiary (student) can be contributed per calendar year, with a lifetime limit of $42,000 without any tax implications. Each student may have more than one plan but the limit is strictly per student.
The most important aspect of the RESP’s is that the Government will add 20% to the first $2,000 per calendar year ($400) up to and including the year of the students 17th birthday. This is called the Canada Education Savings Grant (CESG) and any amounts paid in are not included in the annual limit for tax purposes.
The maximum a student can receive from CESG is $7200 over the lifetime of the plan. Any amount of CESG not claimed each year will accumulate as up to $800 can be paid if not previously claimed. If the RESP is not eventually used for educational purposes any CESG payments will have to be repaid to the government.
To apply, the student must be resident in Canada and have a Social Insurance Number (SIN) which must be provided to the promoter at the plan inception. Also, the individual making the contributions will be required to provide their SIN.
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