Are you more financially savvy compared to 2008?

Canadians feel the 2008 economic crisis has made them more financially literate, according to a poll by BMO. The majority of respondents say they now have a better understanding of their investments, and 74% rate themselves as either a B or C when it comes to financial literacy. How do you measure up? 1. Do you feel knowledgeable about Registered Retirement Savings Plans? (79% answered yes, compared to 69% in 2008) 2. Are you comfortable with Tax Free Savings Accounts? (72% said yes, compared to 64% in 2008) 3. Are you confident in Guaranteed Investment Certificates? (62% said yes, up from 60%) Are there specific financial topics you feel more comfortable with now, compared to in 2008? What financial areas of your life could use some improvement?

Financial Literacy is no longer optional

November is Financial Literacy Month, and the Financial Consumer Agency of Canada (FCAC) has provided us with some tips and tools to help us all become more financially savvy. Below are a few highlights -- you can find more on www.itpaystoknow.gc.ca. 

·         Making a Budget and Sticking to It takes you through all you need to know about budgets, including what they are, what to do before and after making a budget, and how to use the Budget Worksheet.
·         The Budget Calculator is an interactive tool that lets you list all your income and expenses. It will help you see where you might be able to reduce expenses in other areas (such as daily coffee or lunch purchases) to cover your additional holiday expenses. ·         In addition to making and sticking to a budget, look at ways to reduce the cost of paying for those additional expenses.  FCAC's tip sheet, Be Smart with Your Credit Card, lists ways to use your card wisely.
·          You may want to consider alternative forms of payment like cash -- sometimes this can even get you a discount.
·         It's important to remember that a credit card doesn't increase the amount of money you have available to spend. Continue to live within your means and your budget.
·         Remember that debit cards may also have costs associated with them. It could cost you more than $8.00 to use an automated banking machine (ABM) that is not owned by your financial institution.
·         For consumers who get swept up in the generous spirit of the holidays, our publication How to Beat That Debt gives tips on keeping track of your spending and how to avoid getting into more debt, as well as managing the debt you owe now.

Sarah Richardson Design Tips

If you've been wondering how to paint an open-concept home, or are looking for kitchen cabinets that inspire, you might want to check out Sarah Richardson's (of HGTV fame) webisode series. While Richardson is typically known for scouring flea markets and refurbishing vintage finds, this series of webisodes focuses on remaking a home with products you can find at a Big Box store. Despite the fact the series is sponsored by Lowes, there's not a lot of obnoxious Lowes promotion - you still get the helpful, inspiring and straight-up Richardson that you're used to. The webisodes started airing on October 19, and a new one will appear on Richardson's site every week until December 21. Happy decorating!

Who Owns Your House Anyway

While many of us call ourselves homeowners when we first sign a mortgage, the sad reality is that the bank usually owns more of our homes than we do - at least for the first number of years.

 

But paying down your mortgage quickly - with accelerated, lump sum and increased payments - can help you own your home years sooner.

If you've been taking these steps - or if you've had your mortgage for a number of years - you might want to check out this cool tool: http://www.whosmyhouse.com/en/.

It will help you figure out exactly what percentage of your home you own - and what part the bank still has a claim over. It even breaks it down according to rooms so, if you're just starting out, you may only own the equivalent of the bathroom or kitchen

How to Sell Your Home Fast

Lately I have been toying with the idea of selling my home.  I have talked to some realtors and here is what I have learned.  Are you selling or have sold a home recently?  I would love to hear from you and any other tips you have. 

1. It's all about the marketing. 

Regardless of what you're selling, you have to have a sound marketing strategy. Home sales are no different. A top-notch brochure with professional-looking photos and a nice layout is a must-have - and make sure it's prepared before the first viewing. In addition, the MLS listing should include a virtual tour, as well as a decent number of photos. And it should be worded nicely, highlighting all the benefits of both your home and the area around it. Put yourself in the potential buyer's shoes - what will they enjoy most about living here?

2. Make your home easy to see. 

If you're really committed to selling your home, you have to be committed to showing it too. This means that if a potential buyer wants to view it, you need to let them - regardless of the time. It also means that your home should be in a relatively tidy state constantly - in the off-chance you get a last minute viewing.

3. Price it right. 

Okay, so nobody really knows how the market will respond to a particular home. That's why you have to do your research by looking at comparables. Your real estate agent should be able to come up with a range and a suggested price tag for your home, but if you'd prefer to list at the high end of that range, make sure you do so with a strategy in mind. The longer a house stays on the market, the more likely you are to get low-balled. Have a plan in place that determines at what point you're willing to drop the price tag should your home fail to move.
Selling your home can be a very emotionally draining process, which is why you don't want to drag it out. By following these tips, and the recommendations of your real estate agent, you'll hopefully attract that perfect buyer sooner rather than later.
 

It's all @JonChevreau 's fault .... I swear

Today I attended the Canadian Financial Blogger's conference in Toronto and I learned a lot.  Most Canadian Financial Bloggers know and love Preet Banerjee or @PreetBanerjee or Blogger extrodinaire at "Where does all Money Go".  It was inspiring to say the least and I learned so much.  Things are going to be different at Mortgages for Women from here on in.

The biggest lesson I learned today was from Preet himself.  He is a wonderful down to earth great guy.  When you meet him you have to wonder how he got to where he is today.  Today we learned it was all Johnathon Chevreau's fault.  "Back in the day" Mr. Chevreau quoted Preet in a page and half article as saying something that nearly burried him with his employer.  Some quick 2-stepping lead to some intense media training and the rest they say is history.   And it couldn't have happened to a nicer guy.  Preet was so generous to share his knowledge and experience with us. 

I admit I'm a blogger by accident and today I learned that a lot of blogger's started the same way.  It was great to connect with others and learn their stories.  And to think the whole journey today was all the fault of Johnathon Chevreau, now the editor of Money Sense, makes me grateful.  I haven't always agreed witih Johnathon's opinions when he was at The Financial Post but I have always respected him.  Well done! 

Time to Panic?

In the weeks following Finance Minister Jim Flaherty's mortgage rule changes, the media has been full of stories debating whether we're on the brink of a soft landing, a crash, or neither.

While it's obviously always good to stay on top of the real estate market, it's important not to read too much into the opinions of "experts"?. Not only does the media love to sensationalize real estate, for some reason (think of how many times these same reports have told you to "lock in" over the last few years), but it's very, very difficult to paint the entire Canadian real estate market with one brush. Heck, it's even hard to paint the real estate markets in one city with the same brush!

With that in mind, try to push all the extraneous chatter out of your mind and narrow your focus to encompass your situation and your situation alone. If you're thinking about moving in the near future, try to look at these factors, rather than those of the market as a whole:

1) Are you ready to move?
If you're not ready to move - namely, your finances aren't in order, your credit is a mess, and your home needs a lot of updating - don't rush into listing it just because you're worried the market is going to tank. You'll likely not get top dollar for it anyway, and you might end up spending more money on a new mortgage if your credit isn't in good shape.
2) What does your competition look like?
Are there a lot of properties on the market in your area right now? If so, you may want to wait a bit to list. The more homes you're up against, the higher the chances that there are places nicer than yours. If those places sell quickly, not only are they off the market, but you'll also be able to benefit from their selling price.
3) What's going on in your area?
If there are lots of improvements scheduled for your area, you might want to hang onto your place a little longer. While the market as a whole may slow down, there might be an increased demand in your area if you're getting a new transit line, or new improvements to your neighbourhood.
4) Who's likely to buy your home?
It's been said that first-time buyers are the group that's going to be hit hardest by the new mortgage rules. If your home is a starter home, you might want to sell sooner rather than later. On the flip side, if it's more of a second home, you may be able to afford to hang onto it for a while.
Obviously, no one can predict the future and, like all investments, real estate comes with its fair share of risks. If you focus on what makes sense for you, rather than everyone else, however, it will be a lot easier to justify your decisions and be happy with them.