Home Ownership

I think this is interesting.
Home ownership is related, in large part, to a person’s age, income and household type. For example, the home ownership rate for one-person households was 48%, compared with 68% among the general population. Women who lived alone continued to have a higher home-ownership rate than their male counterparts: 49% of women living alone owned their home, compared with 47% of men living alone. Women homeowners living alone are likely to be older. Approximately one-half were aged 65 or older. From Stats Canada

Gain understanding

If you think money is about dollar and cents and things you can hold in your house or your hand, you‘re wrong. Personal finance may seem like it‘s all about the numbers, where you have to spend less than you earn, where you have to save up an emergency fund, where you have to invest in the stock market and get your 10% return; but the truth of the matter is that personal finance is more about psychology than it is about mathematics.
Everyone knows that you have to spend less than you earn, no one is so disconnected or so poorly educated that they don‘t realize how basic math works. It‘s like physical fitness, we all know what we‘re supposed to do - we just have difficulty remembering to do it.
After  learning from friends and clients what money represented to them, I asked them to tell me where they thought they got those notions - what messages they have received about money and where the messages have come from.
Through our discussions we learned that there were four main sources of those myths and messages:
 Family
 Community/society
 Media
 Peers
All of the sources listed above work in combination to shape our relationship to money.
Who influenced you the most and how well did they handle there personal finances? 

New Year, New Budget.

Here are some tips on how to turn over a new leaf and set a budget you'll stick to this year.
Ring in the New Year with a plan for getting into financial shape. This year, live by a budget that will allow you to pay down debt and save for that special something.
1. Count your net or take home income.
2. Prioritize your expenses. Food and housing lead the pack, next budget for utilities and transportation costs, finally outstanding debt.
3. Make accurate assessments of how much you spend, and how much you can reasonably bring that amount down. The best thing is to track for a month or two..
4. Create a line in your budget for savings. Treat your savings account as you would a bill to be paid. Pay it before you have fun.
5. Have a goal. For example, vacation, a down payment on a house, savings for retirement.
6. Review your budget on a regular basis. A budget should be a work in progress, not written in stone.
7. Think ahead and factor in annual or bi-monthly expenses like insurance or property taxes. Divide the total amount due by twelve and set it aside monthly (short term savings)
8. Don't forget to budget for fun and entertainment.
9. Add a line for gift giving. Birthdays, anniversaries and holidays can make a mess of your budget, but not if you plan for them. ( more short term savings )
10. Get the big picture by adding up your expenses. If you are spending more than you are bringing in then it's time to revisit the numbers. Always save.  Try to work up to a six-month 'rainy day' balance.

Have a great New Year with many financial successes.

More tips and tricks to come

Messing up your budget

Every financial adviser recommends a budget as one of the preliminary steps to financial planning. But a budget is only a guideline. It is only as good as the information that is put in to it. If you´re not honest or if you simply make a mistake about your expenses, the budget isn´t going to work. It is also only as effective as the determination to follow it. If you don´t put in the effort, a budget is worthless.

(Credit:yourmoney.ca)

The Signs

You may need help managing your money and debts if you say yes to some of the items on the list below. There are some definite warning signs, which may indicate that you need assistance with debt management. These warning signs can include some or all of these:

1. difficulty paying bills on time
2. receiving collection calls or past due notices
3. living in your overdraft or line of credit
4. losing sleep worrying about debts
5. spending more than your income allows
6. not paying credit cards in full each month
7. impulsive spending due to financial worries
8. hiding spending or debts from a partner
9. allowing bills to stack up because you can’t pay them
10. a decline by your financial institution to consolidate your debts
11. no budget or spending plan in place
12. feelings of hopelessness that you’ll never get out of debt  

 

If getting out of debt is a goal for next year now is the time to plan.  For those of you in the Kelowna BC area I am hosting a one hour information session on Jan 7,2013 at the down town Bean Scene at 7:15 pm or Jan 8 ,2013 at the Bean Scene Landmark at 1:45 pm. All I ask is that you buy coffee or tea from the shop.

If you are too far way to come to this information session please email me and I can get some information to you.

Space is limited so you must registrar at,  thisbabaknowsmoney@gmail.com