When the autumn chill is in the air, there is nothing like the warmth of a Thanksgiving celebration with family and friends. Many people look forward to the traditional feast of turkey, stuffing, gravy and all the fixings. But whether you’re hosting a small, intimate dinner or organizing a large gathering, the key to enjoying this special day and staying within your budget is to start planning early. Here are some helpful ideas to get you organized. • Plan ahead. Before you plan your menu, check out Flyerland.ca where you’ll find flyers for all your favourite retailers. You’ll also find coupons available through save.ca for Holiday grocery purchases (all you have to do is select the coupons you want, and they will be mailed to you within 3 days). Once you have an idea of what’s on sale, plan your menu around the best deals. • Buy in bulk. Holiday baking time is just around the corner, so if there are items are on sale now, you can buy in bulk and save. • Plan a potluck. To reduce the burden of preparing an entire meal for a large number of people by yourself, you can provide the turkey and ask your guests to bring their best dishes. They are likely to be flattered when asked to bring their signature dish. • Save with homemade. Making your own side dishes and desserts is less expensive than buying pre-made—and healthier too. • Plan cooking swap. Thanksgiving is filled with traditional dishes that everyone enjoys. You can plan a menu with friends then have each person prepare a dish or two in bulk and divide them up. On the big day, all you have to do is heat them up. • Reuse decorations. Before you head to the store, dust off your decorations from last year to see if they can be used again. You may be able to check off “decorations” from your list, and you won’t be tempted to blow the budget on those cute turkey napkin holders or the scarecrow centrepiece. Or get the kids involved in making decorations using seasonal items such as autumn leaves, the Halloween pumpkin or a harvest motif. • Organize fun activities. Instead of sitting around watching TV, why not set up a scavenger hunt, go for a nature walk or break into teams for a game of touch football? If there are lots of little ones in your group, you can plan a Thanksgiving craft to keep them busy.
By Debbie Frye, General Manager, Flyerland.ca
You’re worth it. That’s what all those flashy advertisements keep telling us in the hopes that we’ll part with our money. But do you really know what you’re worth? Can you afford to be "worth it?"
Figuring out your financial net worth is absolutely worth it. Knowing your number helps you establish a baseline to measure your progress towards financial success and objectively see how you’re doing over time. It shows your ability to accomplish major financial goals such as buying a home, saving for retirement, starting an emergency fund, or surviving a job loss.
So what is it? Simply, your net worth is all of your assets (what you own) minus all of your liabilities (what you owe). The big calculation is not very big at all: Financial Assets – Financial Liabilities = Net Worth
If your financial net worth is a positive number, then you own more than you owe. If it’s a negative number, then you likely have some debt and own less than you owe. The actual number is not necessarily the most important factor, but rather how it changes over time and the direction it’s heading. In general, you want your financial net worth to be positive and increase over time.
Adding Up Your Assets
A financial asset can be money in the bank today or is something you plan to sell for hard cash in the future. Financial assets include stocks, bonds, GICs, retirement accounts, expected government benefits or pension payments, and of course the cash in your various chequing and savings accounts.
Many financial gurus debate whether you should include your home as a financial asset in your net worth calculation. Those for including a primary residence believe a home is your biggest financial asset and represents the largest single investment you can make. Those against home inclusion argue that if you sell your home you will still need a roof over your head, and the money from the sale of your current home will likely be used to buy another place to live. A way to bridge this gap is to only include your home if you expect to sell it and live off the money, or if you’re using some home equity for life expenses. If you go the equity route, then add only that portion as an asset.
But what about personal property, such as cars, clothing, and wedding china? Generally, your personal property is not a financial asset. But, if you do plan to sell these items for money one day, then include them. Since cars decrease in value over time, be sure to account for this depreciation whenever you update your net worth.
Subtracting Your Liabilities
Liabilities are your outstanding loans and debts, including credit card debt, student loans, money borrowed from family, and car loans. Include mortgage debt on your primary residence as a liability only if you included the value as an asset. If you own other real estate – such as a cottage or a rental unit – be sure to list any debt owed as a liability.
Your Net Worth Calculation
Now for the fun part. Use the Financial Net Worth Worksheet to subtract your liabilities from your assets to find your financial net worth. If you find a positive outcome, then congratulations! Keep your eye on this number over time to continue building your assets. If your net worth is a negative number then don’t feel discouraged. The idea is to find your financial baseline for today and to work on moving your net worth into positive territory over time. Increasing your net worth is easily accomplished by tracking your finances today, seeing where the debts exist, and working towards achieving your financial goals in the future. Only then will you know if you’re really worth it.
A budget isn’t a bad word and it shouldn't make you feel miserable. In fact, a simple budget can help you reach your financial goals sooner with less stress and worry. Keeping on track with a budget can also show you where your loonies go each month and help you plan for life’s expenses, whether it’s buying a car, saving for a home, repaying debt earlier, going away to school, or finding places to save money.
What is a Budget?
A budget is a plan you put together to track the flow of money into and out of your life. The idea is to find where your money flows out, plug the expensive leaks, and save more inflowing cash for yourself every month. A basic budget can also expose the sneaky spending habits you’re not aware of and help you plan where to best spend your hard-earned dollars.
How to Start a Simple Budget
Making a budget is simple and can be done in three easy steps. Start by downloading this free Simple Budget Worksheet to help you organize your expenses, see your savings, and cut your costs.
1. Add Up Your Income.
Counting your cash inflow is a fun first step. If you’re like many Canadians, your monthly income is earned as salary or wages from an employer. If you have investments, then you may be earning income from dividends, interest, and other sources. So grab your pay stubs, find your T4 slips, and review your investments to add up all your gross (before tax) monthly income.
2. Track Your Spending.
Seeing where your money is spent can be an eye-opening (and jaw-dropping) experience. That's why tracking your cash outflow is an essential second step in building a budget – it helps you uncover the real costs in your life. Since monthly expenses can vary, it’s a good idea to review your spending over a three month period. To do this, gather your chequing, savings, and credit card information and enter your expenses into the Simple Budget Worksheet categories: Life Expenses, Fun Expenses, and Future Savings. Chances are you’ll find one category where you’re overspending and didn’t even realize it – perhaps restaurants or entertainment? Check out How to Track Your Expenses to uncover some easy methods for tracking your money without losing your sanity.
3. Make it Balance.
The third step is to take your income (cash inflow) and subtract your spending (cash outflow) to see if your budget balances. If you have money left over every month then you’re running a surplus. If you find a negative number then you have a deficit. The idea is to evaluate your spending habits and find the places where you can save money, like if you’re eating out frequently or your rent is too high given your income. Check out these 50 Ways to Save $1,000 a Year to get your savings started!
Don’t worry if you’ve got "Budget Shock" and need to evaluate and trim your costs to find a surplus. Starting a simple budget is an iterative process and it may take a few tries before you can strike a liveable balance between your expenses and savings.
Budgeting Tricks and Tips
There are a few budgeting tips and tricks you should keep in mind. The Canada Mortgage and Housing Corporation (CHMC) recommends that your monthly housing costs should not exceed 32 percent of your gross monthly income. If you’re carrying other types of debt – car payments, credit card debt, etc. – then your entire monthly debt load should not be more than 40 percent of your gross monthly income. If you have more debt than that, it’s time to cut spending, seek lower cost housing, and reduce fees on credit cards and bank accounts. Finding other ways to cut costs on food and transportation are positive steps towards positive cash flow and a balanced budget.
Putting together a simple budget is easy and can help you reach your financial goals sooner. Who knows, you may even uncover some missing money!
Spending money can be pretty easy. It’s not hard to drop a few dollars every day on lunch, coffee breaks, or parking without giving it much thought. But if running out of cash before the end of the month is puzzling you, then it’s time to investigate where your money is spent.
Tracking your daily spending habits can be a huge reality check and eye-opener. It’s not uncommon to discover that you’re spending hundreds on takeout or paying huge bank fees every month without even knowing it! So it makes sense to monitor both your earnings and purchases to find where to cut costs, to help build a budget, and to gain some insight into your spending patterns.
3 Steps To Track Your Spending
Tracking every cent you earn and spend sounds like work, but it’s actually easy to do with the Tracking Expenses Worksheet. If you’ve ever kept a food diary or a workout log then this is the same approach – but for your wallet! The idea is to track your cash inflow and outflow daily to identify the costly culprits. Here’s how to track your spending:
1. Get a notebook. Place a small notebook and pen in your pocket or purse so they are easily accessible, wherever you go.
2. Write it down. Every time you spend money on something, go ahead and write it down. Do this for every grocery shopping trip, every shoe purchase, and every coffee break – just whip out your notebook and write “Coffee, $2.25” along with today’s date. Asking for a receipt and slipping it into your notebook is also a huge help when tracking costs.
3. Add it up. At the end of each month, go through your notebook and add up your expenses, tally your receipts, and find out where you’ve spend the most money. Organize your spending under the categories in the Tracking Expenses Worksheet to uncover the real costs in your life. Are you spending too much in the Fun Expenses category and not putting away enough for Future Savings? Here’s how to know which expenses go into each category:
- Life Expenses are your essential needs and include groceries, housing, medical, debt repayment, and transportation. While you don’t have a choice about paying these expenses, you do have some flexibility with how much you spend on them. The lower your Life Expenses, the more money you can spend on fun or save for the future.
- Fun Expenses are the things you want (as opposed to need) and can bring enjoyment to your life. A new pair of stiletto heels won’t pay the rent, but are a shoe-in for a fun Friday night.
- Future Savings is the money saved for your future. This includes saving for your emergency fund, a car, education, and retirement.
It’s a good idea to track your spending over a three month period because daily and monthly expenses can vary. Just be sure to stay consistent and be honest with yourself by writing everything you spend down. Other Handy Tools
If a simple pocket-sized notepad is not your expense tracking tool of choice, then try these other methods to stay motivated.
- Cell Phone or Email: Text or email yourself a spending list from your mobile device.
- Personal Finance Software: Update Quicken or Moneydance with your daily expenses.
- Budget Spreadsheet: Use a simple spreadsheet to tally costs, just like in a notebook.
Tracking your expenses reveals your spending habits as they actually exist, not how you think they exist. You can use this information to see expensive patterns, to build a budget, or just to get some insight into where your paycheque goes each month. To stay motivated, try to make money tracking part of your routine, ask for receipts to remember small purchases, and try a tracking tool that works for you.
Grocery shopping is one of the top items in any family’s budget. Food and household products may be essential expenses, but unlike fixed mortgage, insurance and car payments, grocery shopping is one place you can save big. It just takes a little time and planning.
Here are 10 tips for serving up delicious and nutritious meals, without taking a bite out of your budget.
- Make a list. Take an inventory of items you have so you’re not duplicating, but also look for sales on staples and stock up at the lower price.
- Try different stores. You may be able to get better deals on brand names at the discount food chains, so shop and compare. [No Frills, Price Chopper, Valu-Mart, Wal-Mart]
- Pay attention to perishables. If you’re throwing away spoiled food, you’re throwing away money. Try cutting back on the amount of perishables you purchase at once.
- Shop the outer aisles. More expensive displays are in the centre of the store. Stay along the edges, and look on the higher and lower shelves for the best deals.
- Try generic products. Store brands are often produced in the same plants as the brand names ones—the only difference is the price. Have fun with the kids and try a taste test at home comparing national brands and generic products.
- Mix up your menus. Try different lower priced items to see how cheaply you can cook up a tasty meal. Get your older kids involved—challenge them to prepare a meal with five ingredients for under $10.
- Plan shopping seasonally. For items you use at certain times of the year such as holiday baking, gardening or the cottage, make a list and watch the papers or www.Flyerland.ca so you’re ready when these products go on sale.
- Order coupons. Many stores only accept glossy coupons. Visit www.Save.ca early in the week and request coupons for your favourite products. They’ll be delivered within a few business days.
- Use store loyalty cards. Stores such as [Loblaws, Metro, Sobey’s and Shopper’s Drug Mart] offer savings and points cards. You can save money on purchases or collect points towards travel and other items.
- Friday is flyer day. Most stores issue their flyers on Fridays, so visit www.Flyerland.ca to check out all the deals. For the hot specials, you’ll want to shop early. Remember to ask for a rain check if a product is sold out.
Scanning store flyers, clipping coupons and planning shopping trips to different stores may take a bit more time, but the savings can be well worth the effort!
Debbie Frye
General Manager
Flyerland.ca
Friends are forever, or at least until they ask you for a loan.
Regardless of how strong you may think your relationship is, it’s generally never a good idea to lend money. Whether it’s your in-laws, brother or best friend, lending money to anyone can turn into a debt disaster. What if they suddenly can’t pay you back on time and your own bills start to pile up and go unpaid?
You feel guilty because you know your loan could prevent a bankruptcy or cover unpaid monthly bills for your best buddy, but it’s often difficult and awkward to get them to repay you. More often than not, it results in the end of a relationship, since your conversations (which turn into arguments) always revolve around how much was owed and when the balance will be repaid.
Even Shakespeare felt that money shouldn’t be borrowed between friends. In Hamlet he wrote, “Neither a borrower nor a lender be; For loan oft loses both itself and friend.”
Let’s say for example your best friend from university asks to borrow $600. She needs it to cover her rent for the month, but will pay you back as soon as she gets paid next.
You think $600 isn’t going to be that big of a deal until Friday night rolls around and she rings you up asking to meet her for dinner and drinks. How can she afford to be going out when she just asked you for a loan?
A better solution to using your own savings is to suggest they talk to their bank. There are several options that their financial institution will be able to suggest and this way you’ll still be able to chat on the phone for hours without the conversation turning sour.
Money can bring out the worst in people – even the best of friends. If you really do trust your mate and don’t think that dishing over a few hundred dollars to tide them over will hurt your relationship, then by all means do. But keep in mind that in most cases, it leads to many unnecessary disputes.
Here are some tips, should you choose to loan your friend or family money:
- Take it seriously. Draft and sign a document that outlines how much was owed, when it was borrowed and what the repayment terms will be.
- Don’t lend more than you can afford. If your friend or family defaults on the loan, you don’t want to put your own finances at risk.
- Talk about the situation. If you sit down together and discuss what their plan for repayment is, you’ll both feel better and there will be no assumptions.
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