by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Debt Management, Portfolio, Social Media
Well, the borrowers can do much about the rising interest rates in Canada other than just saving money and getting prepared to deal with the next hike. When it comes to saving money, it is easy for those who are not paying any interest in other assets as part of loans, which again is not the same as everyone. In case you are at the borrower’s end, it is obvious that you get stress out with the fluctuating rate of interest. Do not worry as here are some ways that can help you face the rise in interest rates smoothly.
Carry out a stress-test on your portfolio
Here stress test basically means checking your portfolio to find out whether it can deal with the rise in the rate of interest. This can be checked people who are interested in investing in properties should focus on the future rather than paying more attention to the low-interest rates that they find currently in the market.
If you are on buying end then don’t look at the current numbers. Focus on the various rates that are available currently in the market. Explore the market to find out the different rates of interest.
You can also check if your portfolio can deal with the rise in interest rates to start paying the increased payments right from now. Try to set a budget that can pay the increased rates. You can either pay your mortgage in a lump sum that will be equivalent to the amount that would come out as a result of increased rates as it will help you be prepared and comfortable paying more money to the mortgage. Else you can reduce other bills and pay an increased amount as payment for other bills. It will be like budgeting that particular payment.
You need to be committed to doing budgeting, paying higher amounts, etc.
Focus on the market conditions
You may lose your focus especially when your attention is divided among different investment properties. Make sure you keep an eye on what is happening in the market and check if the market is beneficial for you currently or for future investments.
You can just go through newsletters, news that you get from mortgage brokers. It will help you know about the market conditions. It is always better to change your plans as the market conditions change because that would be a smart move and you won’t end up losing money.
Prepare yourself for the rise in the rate of interests
Try to pay off as much debt amount you can pay before there is a rise in interest rates. In case the debt you have to pay off is less make sure you pay it back and get rid of the entire debts at once. This will not only reduce your financial burden but will also help you prevent the stress of paying higher loan amounts.
Here is how you can prepare yourself for the rising interest rates.
- Reduce your expenses so that you can save money to pay back your debt.
- Try to make payments for debts that have a higher rate of interest so that you will end up paying less money against interest.
- Try to merge the debts having higher interest rates like debts related to credit cards with that of a loan that has a lower rate of interest but maintains the payments to be the same
- Try not to get the highest mortgage/line of credit that others offer you.
- Think about how borrowing extra money can restrict your potential to save money to meet your goals.
- Find additional methods that can help you make more money to pay the debts.
- Also, maintain some funds that can help you in case of an emergency that can come unexpectedly and add to your costs.
- Make all payments on time to avoid paying extra money as penalty charges.
- If required, you can go to the bank you have an account with to apply for a loan that is- debt consolidation plan. In case your loan gets approved then you will get a larger installment amount which can help you pay your small debts.
- Plan a budget and reduce the living costs, household costs as much as possible and you think is an unnecessary expense.
- If you are not paying your debt, then deposit that money in your account.
Talking about the rise in interest rates in Canada it becomes a little difficult to deal with the rise without pre-planning. You should plan your financial goals for the future before time runs out. It is always recommended that you start paying some extra money against interest every month to finish paying your debts quickly. You can make it a practice and see how things work and you will be debt-free within less time span than expected. You should think about your financial situation before you apply for any credit card. You can easily manage things with proper planning and handling money the right way.
You can also seek help from financial experts to know how rising interest rates can influence your finances before you take any decision that involves money. The financial experts will help you calculate the interest rates based on your loan amount and income so that you can decide whether to go investments or not. The idea is to get a clear idea of how rising interest rates can change your finances. It is better to plan your future financial goals as this rise in interest rates can affect your goals to a great extent. So, prepare yourself for the rising increased rates so that you do not land up facing a financial crisis.
Do not ignore the fact that the rising interest rates can affect your overall lifestyle and you need to be prepared for it in advance to help maintain your current lifestyle. Just focus on market conditions and speak to your financial expert to give you proper guidance on how to manage your finances. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Debt Management, Portfolio, Social Media
Some people do not get a steady income like salespeople, freelancers, or people who are self-employed. They actually face a lot of problems due to fluctuating incomes. It is a nightmare to plan a budget when you have no idea about how much you are going to earn each month. This is a serious problem for those who work on a commission basis or are self-employed.
The income they get depends entirely on their monthly sales or projects they get. Well, if you are among those who earn a fluctuating income and find it really difficult to plan a budget, then read on to find out how you can still plan a budget.
Identify the minimum amount you earn
Before you start creating a budget with fluctuating income, you need to identify the minimum amount you earn. Also, determine your minimum expenses on a monthly basis. For all those who earn a fluctuating income, plan their budget keeping in mind their expenses related to basic necessities like house mortgage or rent, groceries, utility bills, groceries, childcare, transportation, etc.
While following any budget plan it is really important to find out how much you need to make to bear your bills. But, in this case, this step won’t work as the income is not steady. To create a budget for fluctuating incomes just write down the list of essential things and monthly expenses on a paper.
Out of the expenses you have listed there are some fixed expenses like rent, mortgage, etc. Now, try to figure out the expenses that change. They can be grocery bills, traveling expenses, utility gas, etc. Also, write down debt repayments, savings, investment, etc. You may think that these bills aren’t crucial to survive still they are quite important.
Calculate monthly expenses that are optional
After you filter out the essentials then try to list all other things. While writing down the optional expenses consider the bill for cable television or any other payments you make for entertainment, hobbies, cash spent on sports, or money spent to dine out.
If you are unable to find out the approx spending on non-essentials then pull out some credit card or bank statements to check. Also, try to find out something that had overburdened your pocket in the last few months.
Create emergency fund
In case you hold some savings already then nothing like it. It is always better to have savings of money for 3-6 months. It helps especially when you have a fluctuating income.
It is always better to create an emergency fund to fight days when you don’t earn a sufficient amount or say nothing. Savings can bridge the difficulties in crucial times.
Staying on income from last month
Once you created a budget for your fluctuating income and included your unnecessary expenses then you will come to know the amount of money you need for the month without disturbing your savings. You can deposit the money you get the previous month to your savings account.
You can start putting whatever you earn in short term or long term savings whichever suits you. This helps you stay on income from last month.
Credit a salary for yourself
It is again a step ahead of how you were advised to put your money in a regular savings account in the very first month. Here you will be paying salary to yourself. You may be wondering how is that possible isn’t it? Think about times when you were working hard and earning a fluctuating income but here you will award yourself with a salary.
You can follow the budget for fluctuating incomes and eliminate optional spending which will save money for you. Now you will not end up spending more than earnings.
Pay bills depending upon the income you earned last month
The money you need for your fluctuating bills, as well as nonessentials, is there in checking account. The right budget that comprises of your expenses and bills for the month is what you have now.
Now you will start paying your bills as per the budget you created that consists of debt payments or paying savings. If you need an individual account for long term savings then go for it. You can also put some cash back to the regular savings accounts every month and see how money grows.
Mark all your bids as paid and put a zero at the end
As not all bills will be due at the start of the month, you need a proper system to keep track of your spending as the month passes.
Make sure you pay every bill right at the beginning of the month. Pay your mortgage or other bills in the second week of the month. If you are planning to spend on entertainment then make sure you do not spend more. Keep your bills marked as paid
It is not easy to plan a budget with a fluctuating income, but with a proper budget, you can accomplish the task. While you create a budget for fluctuating budgets make sure you find ways that can help you get a steady income. Also, if you succeed to earn more in between, try to save money for the days when you either earn less or absolutely nothing. Do not rely on monthly income; try to save for 3-6 months to have a stable amount in your bank that can back you for at least a month during no or less work.
If you can find income coming from more than one source, it will help you earn a stable income or constant money incoming to your account. Try not to spend on entertainment or things that are not essential. You have to go slow and figure out things that need money on a priority basis. You can create a budget plan for fluctuating income and follow it too. With little dedication and smart planning, you can achieve your goals with irregular income too. It may sound a bit difficult, but it works and with the time you will get used to it. Any help for financial problems contact gtacredit.com or call 416 650 1100
by Ajay Oberoi | Bankruptcy, Consumer Proposal, Credit Counseling, Credit Repair, Debt Management, Portfolio
With increasing options to spend money in the market living within one’s budget is becoming more of a challenge for people with defined monthly incomes. Making it through the month with a paycheck as your sole source of income is trustworthy indeed, but it can become a challenge at times. It is not necessarily a huge change or demand. Sometimes the slightest of happenings out of the ordinary lifestyle can disrupt your budget which makes the last days of the month a problem to survive through.
It all begins with the day you get your paycheck! It feels like the day to the party which if lasts a bit too long into the month becomes troublesome. So, to avoid that the simple solution is management. As you tend to organize every part of your lives, you should also tend to your finances with the same care and concern. It requires skill and smart living to get there, but it is not that much of a difficult thing to achieve. It may sound strange, but a few steps to alter your living and you will be managing quite reasonably within your paycheck.
The simple steps to take involve:
The first step to saving money is to understand your money. It begins with learning about your sources of income. You must understand your earnings and keep in mind all the money that you bring in. Once you know your sources of income, add up all the money you are earning to get the exact amount you get in hand for the month.
It also includes respecting your income and staying loyal to the sources of it. Work with dedication and keep yourself invested in your work that pays. Remember, the concentration will result in better work output which can promise a raise in your paycheck which means more income!
Once you know what you are earning it comes down to the next part. With finances, it is the expenditure. You earn money to spend it of course and thus, you must keep track of your expenses. Keep a list of all the times your actions result in a decrease in your income. It is an expense to list down.
You must stay true to your list and not cheat. Do not leave off the expenses you do not want to account for. No matter how much you wanted to spend money on that, it still counts as an expense so it must be list down.
- Filter the Living Expenses
Now, once you know your income and you have recognized all your expenses, here comes the difficult part. It is time to be a little hard on yourself. Overview that list of expenses and highlight your living expenses only. Living expenses, you ask?
They include the money you spent on your essentials. The money that goes into providing for the necessities of your life, count them all. They include all your utility bills, food expenses, and others that you just cannot avoid. Highlight all of these expenses and review the ones that remain on that list you made.
That remaining list must have many expenses that you might not want to give up, but that needs some serious dedication to survive within your paycheck. So, it might be a difficult thing to do, but take that step and cross them off the list. Remember, you have to live within the paycheck!
When it comes to finances it is not just about the income and the expenses. Financial management has another integral ingredient to it. The one people mostly forget. This third and vital part of the management of finances is your savings. For a successful budget, savings is a must. You cannot live without saving some amount of what you are earning.
Organize your expenses in such a way to ensure that the savings do exist. While tracking your expenses you must cross out all the unnecessary ones. Continue to do that throughout the list even if your expenses are less than your income because that is when your savings come into play. You will get the amount of savings from that check on your expenses.
Remember! No one can come and help you out with your finances. You cannot be dependent on your financial management on someone. You earn money. You spend the money. It has got to be you who saves the money as well. The motivation and determination to do that come from within.
Once you know you have the dedication to make it work, take the next step. Save your money on the little tasks you hire people to do for you. A little fixing, a little renovation or a little cleaning around; do it yourself. Work on it on your own and get the work done, It will not only help you stay active but also help you save money.
You go out shopping? Well, the smart thing would be to steer clear of the places you cannot resist yourself. Plus, you need not be the first one to buy the trendy stuff out there. Wait your time out, no one is judging you and buy those same articles in sales. Wait for the sales and save money.
- Hold Yourself Accountable
Do not just plan it out, but make sure you execute. Do you know what makes execution unavoidable? It is the process of accountability. Review your success with financial management and even ask your friends to help keep an eye on you for that matter. Force yourself to follow the plan you design for cutting back on expenditures. Thus, judge your own actions to make it work it to the end of the month in good condition.
Thus, stick to these steps and you will surely survive the month well within your paycheck while saving some for emergencies.
Any financial trouble visit gtacredit.com or call 416 650 1100
by admin | Uncategorized
How You Can Teach Money Management to Kids
Meta Description: Read this to know how you can effectively teach your kids money management and financial responsibility.
Meta Tags: money management, financial responsibility
“You must gain control over your money or the lack of it will forever control you.” – Dave Ramsey
Effective money management can be a key to a fulfilling life. To understand the value of money and to know better about its right use is as important as understanding the need for oxygen.
It’s important for everyone to manage their money wisely and control the expenses in order to avoid a situation where they find themselves under the immense burden of debts. Financial responsibility and money management are some important things that everyone should be aware of.
As we grow older, we learn more and more about the value of money. Indeed, life has its own way of teaching. However, kids in today’s times, lack the knowledge of money management. Although they are well capable of spending money online on various games and apps, they still lack a sense of financial responsibility.
Therefore, it’s the duty of the parents to provide awareness to their children regarding financial responsibility and teach adequate money management. The appetite for money management from an early age is important because kids will then know how to spend their money wisely in college or their whole life, for that matter.
Here are some ways in which parents can teach financial responsibility to their children.
Be an inspiration
Kids learn what they see. Their parents are the best source of learning for them. Set an example yourself and ensure healthy money management in your home. Do not spend extravagantly, and also let your children know that you only invest in what is important or beneficial.
Discuss normal house finances with them
Casually discuss with your kids about the things at your house that require money to stay the way they are. Let them know that TV, electricity, gas and even the internet that they use come from money. If you do not have money to pay for them, you will be deprived of these privileges and necessities.
Ask for their opinion as they grow up
We all plan monthly budgets. It’s what makes us live through the month without having to worry about the issue of money a week prior to your payday. When your kids are well capable of understanding the basics of money management, involve them in home budgeting. Ask them what they think needs investment and what does not.
Teach them lessons through their pocket money
Allow your kids to set a budget for themselves in the form of pocket money. Teach them how they can better spend that money and also give them space and freedom to evaluate their understanding of money management.
Teach them the importance of savings
An important part of money management is savings. Tell your kids how important it is to save money for the time of need and how they can do it. Subtly let them know how you incorporate saving in your lifestyle.
Teaching kids financial responsibility is like planting a tree. If they learn about money management at an early age, it is going to benefit them and the people depending on them for life. However, be subtle with your approach. Kids should see money as an important thing, but not the only thing in the world.
by admin | Consumer Proposal, Credit Counseling, Credit Repair
Let’s face it – money can be a devil at times and a savior at others. We all are told to acknowledge the importance of adequate money management throughout our lives to avoid the problems a lack of finance brings. That’s very crucial, without a doubt. However, some people might face a time they are in dire need of money, despite the sufficient money management they thought they were conducting.
There are plenty of loans available in the market to help you take care of your financial needs. However, almost all of them only allow borrowing a large amount and also have high-interest rates. What about when you need only a little amount of money? Well, that’s where payday loans come in.
A payday loan is basically a small loan that is short-term. You can acquire a payday loan to pay your urgent bills or whatever, and then you will be required to pay back the money. The name ‘payday’ is to suggest that you are supposed to return the money as soon as you get the paycheck on your next payday.
The payday loan industry has seen significant growth in recent years, but it has also received some serious criticism for various reasons. Nevertheless, payday loans are becoming more popular and they have their pros and cons. Let’s take a look at them.
Pros
Payday loans can be really useful.
When you need urgent financial assistance, you may find payday loans as the most suitable option. You can use the amount from payday loans to pay for due bills or any other expenditure that needs to be incurred urgently. You can return that small amount soon enough with your next salary. No matter how good you are at money management, some unforeseen circumstances in life may leave you with no other choice.
They are very easy to get.
The popularity of payday loans also has to do with their convenience. Almost anyone with a steady income, state ID, and a checking account can qualify for payday loans. You can expect to receive the amount within an hour or few hours of application and that can be considered as a huge plus. Some online companies also offer payday loans.
Even people with poor credit scores can get payday loans.
All the conventional loans require you to have a good credit score. That’s one thing that restricts people in times of an urgent need when their money management turns out not so effective. With payday loans, that’s not a problem as the lenders do not generally check the credit score of the applicant.
Cons
The terms of payday loans favor lenders.
Anyone who fails to comprehend the terms and agreement of payday loans can find themselves at a major disadvantage if something goes wrong and they are not able to pay back in time.
People often fail to meet the repayment terms.
The APR (Annual Percentage Rate) of interest on credit card loans is usually under 20 percent. In the case of payday loans, the interest averages to 300 percent when evaluated as APR. This means that payday loans are not a long-term solution and you must strictly avoid borrowing a bigger amount than what is absolutely needed.
It all comes down to personal preference. People who are confident of their money management and can easily meet the repayment terms can benefit from payday loans. Otherwise, other options should be explored.
