More Money In, Less Money Out
When it comes to saving money, there is more to consider than merely what we are able to put away each month. We also need to consider other factors such as late fees and user fees. Impulse buying and becoming too risky can also damage your savings. Here are a few details to consider that may help put a few extra dollars in your account.
One of the largest non-essential expenses we pay for each and every month is the convenience of having a bank account and using ATM machines. It is imperative to know what interest rate you are charged on your line of credit or how much your bank charges you each month to use your interact card. These fees can vary greatly from a few dollars a month to a few hundred dollars a month. If you do not know what you’re being charged to use these services, it’s important that you find out. Keep this convenient, but non-essential fee as low as possible each month.
We’ve all been warned about the dangers of impulse buying. If something is on sale, it is much easier to rationalize the purchase, which often means we’re buying items we just don’t need. If you find yourself considering an item only because it’s on sale, walk away and sleep on it. Most stores will hold an item without a payment for 24-hours. Either way, reconsider the purchase.
Another non-essential fee many people pay each month is interest on overdue bills. Are you someone who procrastinates because they just don’t get around to paying bills on time? Perhaps a $100 hit in credit card late fees will be an incentive to start making the payments on time. If you procrastinate and pay late each month, you can easily be wasting a few hundred dollars each and every month on late interest payments. Not only do credit card companies charge a substantial late fee, so do many other services such as cable or satellite companies, water and utilities, not to mention additional annual fees like property taxes and personal income tax. These late fees can easily cost you thousands of dollars a year.
If you are paying your bills on time and are saving money for your retirement, it is wise to diversify your savings in the way of an investment portfolio. Placing all your money in a safe investment or a low-yield investment may not bring you the return you hope for. It could be a wise idea to consider getting some professional advice when it comes to investments. Professional financial advice can offer great suggestions as to where to invest your money, as well as help avoid potential costly mistakes. Also investing in a good accountant can help you take advantage of the many tax breaks that you will be entitled to. Professional financial advice as well as tax planning can also help keep a substantial amount of money in your account.
Online Hackers and Your Bank Account
You may want to keep this in mind the next time you access your online account. Despite the bank’s best efforts to keep customers protected, hacker attacks remain a serious threat, costing Americans millions of dollars each year. Last year, the Internet Crime Complaint Centre reported the country lost approximately $559 million to internet thieves for the duration of 2009. That is more than twice the amount for losses in 2008, where the same centre recorded losses of $268 million from the internet.
Sean Sullivan from an internet security firm, F-Secure, says, “Last year there were more online bank robberies than there were actual on-site bank robberies. Banks have become very proactive in protecting accounts from hackers, but it’s still quite a large problem. We see all types of new attempts every day.”
According to F-Secure, the biggest threats to consumers who bank online are what are known as banking Trojans. These codes are specifically aimed at banking fraud. They are invisible and can hack through your computer, stealing data such as passwords. Some of the more advanced Trojans have the capability of producing fraudulent transfers to drain your account while you’re logged in to your account.
Business accounts have become the more desirable target as opposed to personal accounts as hackers would much rather break into an account with six-figures instead of a personal account with only a few hundred or a few thousand dollars in it. Unfortunately, business accounts are the most vulnerable and least protected.
So, how can we tell if our bank is safe for online banking? Well, the more passwords and questions requested in order to log in, the safer the website. Banks that ask for only a username and password are not as secure as they should be. Many banks now require a site key name and even use personalized symbols that appears during the login process. You should also be prompted to answer a security question as well prior to gaining access to the account.
If you have been the victim of online banking theft, it is imperative you know your rights. If the bank can show any sort of breach was caused on your part, they are not liable for your loss. For customers who have a business account or line of credit, extra caution is recommended because the bank will most likely not be obligated to cover your loss. With proper caution and strong passwords, online banking remains safe for many of us. Using encrypted sites and staying away from public connections while banking are additional ways to keep yourself protected.
The Cheapest Canadian Cities for Real Estate
If you’re in the market for a home, this may be of interest to you. Canada’s housing market had managed to maintain its strength right across the country during the economic turmoil of this past year. Although our southern neighbours have suffered a housing crisis, and even though many analysts say a housing bubble is around the corner for Canadians, bidding wars on high cost homes have continued in major cities like Vancouver and Toronto.
There are many great deals to be found from one end of the country to the other. A comparison of average home prices and the median of household incomes has produced a list of where your dollars are best spent if you’re in the market for a home. First up on the list, New Brunswick. Higher than average incomes combined with low housing prices have made this province number one for the best place to look. St. John, Moncton and Fredericton have some great options to offer in the way of home buying. The average cost of a home in St. John and Fredericton comes in at around $169,000. According to the Canadian Real Estate Association, the average provincial cost is around $155,000.
Another great place to look for a home is Nova Scotia and Cape Breton. Sydney, the largest city on Cape Breton island, offers some of the least expensive housing prices in the entire country. An average home here costs a mere $98,338. This could prove to be a great deal for those seeking an Oceanside cottage.
Gatineau, Quebec offers beautiful homes for around $100,000 below Ottawa’s prices. This suburban area offers a small-town feel, as it’s located on the edge of the Ottawa River. It’s close proximity to the city makes commuting easy, which is very attractive to potential buyers. However, if you’re seeking a more isolated and small town feel to your next home, Charlottetown, PEI may be an option. Boasting $188,000 for an average home and a quaint population of just 32,000, Charlottetown has much to offer in the way of wildlife, golf courses and sandy beaches. It just may be a great option for a summer vacation home.
Heading into the prairies, Regina, Saskatchewan is a healthy economic city with booming natural gas and oil industries. Showing off its many vibrant recreations spaces and green parks, a home can be had here for about $250,826. Of course, there are many things to consider when purchasing a home but if you’re in the market, taking a look at some of these options may be a good idea.
Getting Tough on Debt
Are you feeling like your debts are overwhelming you, and you don’t even know where to begin to address the problem? Don’t leave debt stress to torture you for even one more day. The problem is not going away, and it will only become worse the longer it’s ignored. So set about dealing with debt issues right now.
Start by making a list of all your debts. You need to know where you really stand. You need to know exactly how much you owe, and who you owe it to. Don’t hide anything, and don’t pretend you don’t owe something. Once it’s all out in front of you, it may feel a bit like taking a rock out of your shoe. A lot of the stress of debt comes from denying it exists-and you’ve just stared your debt right in the face.
Now prioritize your debts. You likely really want to pay your best friend back, and owing a friend may strain relationships, but it isn’t likely going to wreck your credit. So list all your debts in order of the most important ones first. That might include your mortgage and secured loans. That’s because you don’t want to lose your home, or whatever you’ve purchased-often it’s a car-using the purchase as security against the loan. Then list other debts like credit cards, lines of credit, utilities, taxes and other fines. Things like your electric bill or overdue taxes can often be sorted out more easily than mortgages, so they should be considered low priority.
Now work out exactly how much money you make every month. Set up a budget that includes your debts and also your living costs like groceries. Be careful about what you believe is a necessary cost, and what is not. Life does exist without television, and if you’re in a money jam, it’s these kinds of costs that will have to go. Eliminating television also impacts other costs. You can sell the television and, if you’re using the typical 42-inch big screen most people own these days, you’ll save on your electric bill as well. You may also have to make hard choices about pets, second vehicles, mobile phones, and other items your budget cannot afford right now.
Once you’ve figured out all your costs, and hopefully have found a way to begin to pay back your debts, contact your creditors, one at a time. Explain your situation, and tell them what you think you can manage each month. Contacting your creditors before they contact you can save your credit score. Sometimes, if you make a deal, they won’t report your credit, or at least won’t downgrade as much. Either way, you’ll feel much more in control if you call them and strike a deal than if you’re tracked down by a collections agency.
Canada’s Navy Suffers Financial Cutbacks
A recent cutback has seen Canada’s Navy make a tough choice to leave several of its vessels at the Halifax and Esquimalt docks. It has been decided that three ships will remain on each coast with the remaining six of the 55-foot vessels being sent to long-term storage.
Built in the mid-1990s, the Kingston-class ships were designed to detect mines that could block or interfere with Canadian ports. They are only lightly armed but can be converted to carry a platoon of soldiers or a small underwater robot.
A shortage of both sailors and money is forcing Canada’s navy to cut half of its fleet of 12 vessels used to patrol the Arctic, Atlantic and Pacific coasts. The navy says the move is necessary to continue the primary mission of defending Canada. The move was made as the navy admits it does not have enough resources to operate them all.
Denise LaViolette, a spokeswoman for the navy wrote “Upon close examination of resources and priorities, this was deemed necessary to safeguard and optimize our operational capability, both now and in the future.”
Although the navy has not disclosed the amount of money it would need to keep the whole fleet active or how much it will save by reducing the fleet by six of its current twelve vessels, it has been noted by navy officials that the Canadian government is providing “stable and predictable” funding as the navy continues to refit its submarines and modernize its frigates. However, Nova Scotia’s Premier, Darrell Dexter, says that although he is briefed regularly by DND officials, he was not given any warning about the cuts from Ottawa, even though he is the minister responsible for Canada’s military relations but would have been pleased to have assisted Canada’s National Defence Minister, Peter MacKay, in making a case to keep the fleet intact.
Nova Scotia’s Premier was noted as saying “Minister MacKay would have my full support in making the case to the cabinet and the prime minister on the importance of naval operations not just to this province, but to this country and that anything that would lead to the paring down of operations would be of concern to us.”
This decision will have a large impact on the economics of both Victoria and Halifax ports as well as the ability to patrol Canada’s coasts. Government cutbacks have affected many of the country’s staples, including worker’s benefits and insurance plans.