We almost made this huge online banking error : The Saturday Weekend Review #102

NEVER RUSH YOUR FINANCES!   Online banking is a no-brainer for most people these days even though a percentage of people still opt to mail in bill payments or even go into the bank. What would you do if you wiped out your bank account because of your own error? That’s right if you aren’t careful with your fingers you can easily do what Marla did below or like I almost did earlier this year. If you are a fan of online banking I suggest you take a moment to make sure you are protecting your bank account from costly errors.   Online Banking is not for everyone   A couple of weeks back I was telling you about my mother-in-law who is one of those people who wants nothing to do with online-banking because she’s scared to have her personal information online. She is comfortable with putting a stamp on an envelope and mailing a cheque to the bank so the bills get paid. Even though my wife and I tried to assure her that online banking to pay the bills and that her money would be protected up to $100,000 (assuming she’d never given her banking passwords info […]

Killing Your Mortgage In 3 Easy Steps

Killing your mortgage in 3 easy steps I was honoured when Mr. CBB invited me to share some mortgage tips on CBB.  It’s evident that he really values his readers so this is a real honour. I’m speaking from experience. Derek and I became mortgage free at 28 (we purchased our first home at 23, and built a new, bigger home when we were 25.)  These are the 3 most important actions we took in killing our mortgage early.  In the interest of full disclosure our current home is worth between $280,000 and $300,000.  It’s a lovely home, but the bank would prefer us in something bigger and more expensive. Pay your mortgage first and last. We’ve all heard the concept that you should pay yourself first. If you’ve been living under a rock, avoiding any personal financial advice, this means that you should set aside your savings as soon as you’re paid before you spend a dime.  The story goes that if you never have access to the savings you won’t miss it, and you’ll be forced to live within your means. This works unless you’re a credit addict, then cut up your cards and return to step one. Decide how much […]

How To Get The Best Car Leasing Deal

Leasing a car rather than purchasing one can prove to be much more cost-effective and is an option being chosen by a growing number of people. Some people like to change their cars every so often and others use them for their business. Some chose to purchase the car at the end of the lease as an option. However, there a few ways to make sure that you get the very best car leasing deal for you:  Commit To The Right Lease Length, Longer Can Be Cheaper Lease companies will offer you their lease cars for specific amounts of time. Over commit and you could be left with a car that you don’t want, under commit and you could be handing your car back before you are ready. Car leasing tends to vary around two years to five years although different terms are available. Make sure that you commit to the amount of time best for you but do keep in mind that in general, the longer you keep the car, the more cost-effective it will be. Because an advanced payment will be required, the longer you keep the lease car, the further that initial payment will stretch. For example, if […]

The In’s and Out’s Of A Debt Reduction Plan!

Photo Credit According to Statistics Canada the ratio of household debt to personal disposable income in 2011 was 150% up from 66% in 1980. Did you know that in 2009 two-thirds of Canadian households had outstanding debt that averaged $114,400. Is a debt repayment plan right for you? Do you need to think about credit card debt consolidation? If you have debt, then the answer is YES to a debt repayment plan more importantly if you are struggling to pay back debt to potentially consolidate. If you are struggling it is very important to let the people you owe money to know that you are working on paying them back. Let them know you have  a plan of action. Creditors want to know they will get their money so communicate with them and tell them. If you don’t they may sell your debt to another company who may charge you a bigger interest rate. Some creditors would rather make something than nothing but the third-party will stop at nothing to get it out of you. It’s also a good time to mention that at least once a year you should order your free Canadian credit report so you have it in front of […]

How We Designed Our Budget Step 9-Reading Our Bills!

Why you should check all your bills and what to do if you find an error Does this scenario below sound like you? You either open the front door, walk to the post box or go to the post office to gather your post…You scan through it all and then you try to avoid the bills but you know you should read them. You proceed to either open it check the total owing and file it or you simply never open it and toss it in the bin,drawer,on top the refrigerator etc.  Is this a big mistake? You bet it is…It is so important to keep your finances organized and in check! There’s more to a bill then looking at the total cost of the bill. For example When our credit card bill would come in we would have typically opened it and looked at 2 things 1-The Due Date 2- How much we owe We never gave a second thought to look at ; 1-Where did we spend the money we owe? 2-What did we buy? 3-How much was it going to cost us if we didn’t pay off the bill on time (yep there’s that “time is money” saying […]

Paid By Cash- The New Addition For Our Family Home!

Guest Post By: Cynthia Guptill for Canadian Budget Binder Hi My name is Cynthia Guptill and our story starts back in 2007. Join me on our life’s journey to find out how we Paid Cash for our Dream Renovation. My husband Randy and I met in Calgary, AB,  when we were out there working alongside everyone else during the economic job boom. After we married I got pregnant and we both decided that the cost of living was far too much to try to raise a family in the city. We had to make some decisions for our little soon to be family. At the time we were paying a whopping $1100 a month rent for a basement apartment that met our needs but was far too expensive. Soon after we found out about the pregnancy, my husbands great-aunt passed away. We later found out that she had left her lovely home to my husband in New Brunswick in her will.  The petite home is very nice and boasts one bedroom, which was fine for the two of us. The problem was we had one baby on the way (Connor, now 5) and another baby soon after (Sadie,now 3). So, there were four […]

How To Maximize Your Mortgage

  TAKE ADVANTAGE OF SHAVING YEARS OFF YOUR MORTGAGE Many people get into their first home and are so busy fixing it up, moving in and just getting used to their new home they quickly forget about their mortgage, other than that big chunk of cash that goes out of their account every month. They are losing money by ignoring it! Many banks don’t explain much in the way of “best practices” with mortgage repayment.  One of the simplest is paying your mortgage on either a Weekly or biweekly basis to speed up the repayment process, but beware, some banks offer non-accelerated weekly or biweekly which do nothing to pay back your mortgage faster! Follow this simple system when setting up your payments: If you are paid every 2 weeks, pay your mortgage with biweekly accelerated  If you are paid any other way, pay your mortgage weekly accelerated. The reasoning is simple, say your mortgage is $1000 per month, paying biweekly accelerated puts more onto your mortgage in a year ($500 x 26 = $13,000 vs. $1000 x 12 = $12,000), same with weekly accelerated ($250 x 52 = $13,000). So apart from your mortgage payment, what else can you […]