Economic Recovery Not Only Slow for Canada
While many watch holding their breath, the economic recovery seems to be stalling for our neighbours to the south. With an unexpected number of new claims for jobless benefits combined with slowing activity in the manufacturing sector, many economists are concerned the economy is not only stalling, but will take another downward dip back into a lighter form of recession. This risk has caused many investors concern, sending share prices plummeting. Not all analysts, however, share this fear.
John Canally, an economist with LPL Financial out of Boston says, “Just because the economy is slowing doesn’t mean it’s going into a recession, that’s the nuance the market has not figured out. The market has pretty much fully priced in a double-dip recession; at this point we don’t agree.”
But according to the U.S. Labour Department, it was hoped the market would see numbers decline to 452,000, instead, state unemployment claims have risen by 13,000, closing the official number at 472,000. At the same time, stocks on Wall Street have fallen for the fourth straight day in a row.
Nearly eight million Americans lost their jobs during the recession, something Obama promised to address, but as the unemployment rate remains high, it is proving to be a sore spot for the Democrats. Even though layoffs have slowed from last year, many business owners are sceptical when it comes to hiring. Many Americans still doubt the strength and recovery of the recession.
A report released during the last week of June showed only 13,000 private-sector hirings were added to the numbers, a disappointment as economists expected non-government job hiring to increase. As well, the National Association of Realtors showed there was a 30 per cent decrease in the sales of pre-owned homes.
A senior economist at Welch Consulting in Washington, Stephen Bronars says, “It’s looking more and more like the job market is treading water. Layoffs are down from 2009, but hiring hasn’t really picked up and this is disappointing. There is a lot of uncertainty on the hiring side. In order for the recovery to give people confidence it needs to cut across different sectors of the economy.”
The Labour Department reported that for the last week of June, the number of people receiving jobless benefits had increased by 43,000, closing the June numbers at 4.62 million. As the instability of the economy continues to rise and fall, it can add many stresses to those making several monthly payments. If you are feeling overwhelmed by your payments, you may want to consider applying for a debt consolidation loan. There are many private lending institutions that cater specifically to clients with bad credit. A little research to find the right loan and the right lender can have you navigating the financial waters with relative ease.
Home Renovations and the Return on Your Investment
If you are considering doing some home renovations this summer to improve your house, there are a few things to know ahead of time. There are many projects that can increase the value of your home. There are also many that can decrease its value.
A recent Ipsos-Reid survey showed that two-thirds of homeowners are planning to undertake some type of home renovations this year. With so many Canadians investing in home improvement projects, it’s important to know how much of that investment will be recovered when they sell their house.
Many homeowners will embark on home renovation projects for their own purposes either to improve their quality of life, to meet their needs or simply to pamper themselves. Whatever your reason, it is necessary to assess the cost of the after affect of your efforts in the event you ever decide to sell.
One of the first rules of thumb is to avoid projects that set your house apart from all the other houses in your neighbourhood. If a house looks good on the inside, not only will it sell for a higher price, it will sell much faster. Sticking with local trends and avoiding passing fads is strongly advised. A successful project has nothing to do with the amount of money spent on an upgrade. If a kitchen renovation costs $30,000 but is done in poor taste, resulting in a poor layout, bad colour choices, cheap appliances and a useless work area, this would be an example of a renovation that could easily decrease the value of your home.
Each year, the Appraisal Institute of Canada surveys for the best home projects that yield the best return. Here is a list of their findings:
Highest return
- Bathroom upgrade: 75 percent to 100 percent
- Kitchen upgrade: 75 percent to 100 percent
- Interior or exterior painting: 50 percent to 100 percent
Medium-level return
- Roof replacement: 50 percent to 80 percent
- Replacement of furnace or heating system: 50 percent to 80 percent
- Finished basement: 50 percent to 75 percent
- Addition of family room: 50 percent to 75 percent
- Fireplace: 50 percent to 75 percent
- Installation of hardwood floor: 50 percent to 75 percent
- Construction of a garage: 50 percent to 75 percent
- Doors and windows: 50 percent to 75 percent
- Deck: 50 percent to 75 percent
- Central air conditioning: 25 percent to 75 percent
Low return
- Landscaping: 25 percent to 50 percent
- Interlocking paving stones on driveway: 25 percent to 50 percent
- Asphalt driveway: 20 percent to 50 percent
- Fence: 25 percent to 50 percent
- Pool: 10 percent to 40 percent
- Skylights: 0 percent to 25 percent
Source: Appraisal Institute of Canada
The Appraisal Institute of Canada also reminds homeowners who are considering a renovation, that “If the value of your house exceeds the average market value in your neighbourhood, your renovations will not yield much return. But if your house value is below the average, you can recover a larger part of the renovation costs.”
Borrowing Your Way Out of Debt
The idea of borrowing to get out of debt may seem like a bit of a contradiction. For people who have trouble with credit cards, debt repayment, or even bankruptcy, the idea of borrowing for any reason may seem rather reckless. But before eliminating this consideration from a debt repayment plan, consider how it could work to help pay off debts. And remember, borrowing to get out of debt was a major strategy used by banks around the world in the past two years to help them survive the economic turmoil-and it has been successful.
Car title loans can be one way to borrow your way out of debt. It’s not a method many people think of, but your vehicle may be a valuable asset to help you get out of financial trouble. Vehicle title loans are especially designed for people who struggle with credit card debt and repaying their loans and other debts. The approach works because the loan against the vehicle can be used to either pay off or pay down other debts. This, in effect, consolidates money owed. That can make managing debt a whole lot easier. As well, because debts are being paid off, credit ratings can go up. And that can be a terrific advantage in the future when you might want to borrow again. It costs more to borrow this way, that’s true. But if paying off loans, debts, and credit cards is beginning to overwhelm, this approach can simplify your debt repayment, and help you get your finances back in line. It might be a small price to pay to keep you out of bankruptcy.
The loans are also straightforward and easy to complete. Just go online, and fill out the form. Some lenders are even able to process your loan in as little as 24 hours. And, the loan can be direct deposited into your chequing account, for extra convenience.
If you own your vehicle, and it’s less than eight years old, chances are you’ll be eligible for a vehicle title loan. Most people are-about 99% of qualified applicants have their loans approved, for up to 40% of the wholesale value of their vehicle.
It’s a fast and private way to find those extra dollars that might make the difference between being solvent or bankrupt. And give you just enough breathing space to work out a financial plan that can help you regain your footing and get your finances back on track.
Baby Woes: Stay Home or Work?
Deciding whether or not to stay at home full time with your new baby is a big decision. It isn’t just about the finances, of course, but finances are one place where costs can be put down in black and white. That might not make the decision any easier, but you’ll know what you’re in for-at least financially!
Staying at home almost always means losing an income. In Canada, it often also means EI will become available, but that’s still generally little more than one-half what you may have once earned. Even with employer top-ups, you may find your income is lower than it once was. But does that mean returning to work will bring you in more money?
Most financial experts agree that, unless you are making one whopping salary, costs to keep your child in daycare will cost most, possibly all, and sometimes in excess, of the salary you make. Sorry as that may seem, it makes the financial considerations a good place to start when you’re debating staying at home versus returning to work once the baby arrives.
Doing up a budget that includes costs of childcare and related costs to working outside the home can be compared to a budget where one parent stays at home. There are lots of online budget calculators that can be used for this purpose-and a telling cost is that many of them have a single line regarding infant costs-day care.
If you do decide to stay at home, there may be ways to make up the difference between what your salary outside the home might be and what you can make working from home. Coupled with other money saving strategies such as breast feeding, cloth diapers (where reasonable), and making your own baby food, you may discover that your at-home salary is not a whole lot less-and may even be higher (gasp!)-than your working income used to be.
Another option might be to work part-time. Your employer may be ecstatic that you would like to continue some of your responsibilities from home. Another advantage to this arrangement is that the percentage of your home you set aside for work can be deducted from your income tax. And be sure to set aside a home space that is just for work-home and office functions work better when they’re separated physically from each other.
The decision whether or not to return to work is much more than one based solely on income, but finances are a good place to start thinking about it.
Vanishing Careers
Finding a new career today may be a challenge for some. For others, it may prove downright overwhelming. As demographics and technology continue to change, so do the working industries. Many of the jobs that were common ten or 20 years ago have disappeared or simply no longer exist. Some companies have gone as far to combine several different job areas into one responsibility as it is considered to be more efficient.
The following is a list of jobs that, for the most part, no longer exist. They may take you down memory lane, or may act as a guide in the event you are seeking a new career. Either way, these once sought-after jobs are either completely abolished or on their way out.
Door-to-door salesmen were once in high demand. They sold everything from frozen food to household products, knives and vacuum cleaners…even encyclopaedia sets. Since most households now have two working adults, there’s no longer anyone to sell to.
The milkman. Remembering the days when ice, milk and other dairy products were delivered straight to your door. With the vast array of products to choose from combined with high rates of theft, this service is no longer in high enough demand.
For the most part, secretaries have been replaced by technology. The once highly sought after secretary who was responsible for their boss’s correspondence, via steno pad and shorthand, is no longer found in an office. Instead, most bosses do their own communicating through email and cell phones and have assistants who co-ordinate schedules and keep things organized.
Gas jockeys can still be found but in diminished numbers. The once very popular after-school job has been replaced by, well, us, as auto drivers tend to pump their own fuel now. Combined with self-serve lanes and the convenient pay-at-the-pump machines, it’s only a matter of time before gas jockeys are a missed service. Especially when it’s minus thirty.
Used to buy candy or put towards a new toy, money from a paper route was not bad coin for many kids. The day of the paperboy (or girl) has gone. Newspapers have not disappeared even with many readers switching over to online versions of their morning news, but subscribers now find their newspapers have been delivered in the wee hours via adults with cars.
Placing a phone call once required a switchboard operator. The friendly human voice that would ask for the name and number of the person you would like to call has since been replaced with the self-serve system. Customers are now prompted to ‘Press 1 for…’ or just speak into the phone to access the service or person you are looking for via voice recognition.
So many of the jobs we once relied on for both work and for the service, have slowly died out for various reasons. Technology has come a long way in replacing many of these human-placed positions. It can prove intimidating to others who feel left behind by the technological advances.