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www.thefreepress.ca
THE FREE PRESS Thursday, January 9, 2014
After Christmas money-matters of what your expenses were over the holidays. Next, put together a recovery plan. What can you do to pay off all your debts? Start by cutting out any unnecessary exp e nses. Cups of take-out coffee and re staurant meals, lottery tickets, video rentals, weekend getaways in a hotel, and many other nonessential expenses can be avoided for a few weeks. Beware of impulsive shopping — avoid temptation by leaving your credit cards at home. Take stock of all your expenses if you’re stressed out about your post-holiday credit card balance.
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re your post-holiday credit card statements keeping you awake at night? Has your generosity emptied your savings account? Don’t panic! With a bit of discipline it is entirely possible for you to quickly rectify your financial situation. The most important strategy for getting things back in order is to not bury your head in the sand. Face your fears, get out the calculator, and take stock of your debts. Once this process is completed you should have an accurate picture
The best way to keep your expenses under control is to establish a budget. Calculate your income and your fixed expenses, and then determine the monthly amount you can afford to put towards reducing your debts. If you think you’ll be unable to pay them all off before the end of this year, then you’d better make an appointment to see a financial advisor. Feeling stressed out about debts incurred over the Christmas holidays can really weigh heavily. Make the most of the situation by reviewing all your expenses, and try to stay positive. Easing off on spending could very well do your bank account a world of good!
Five tips to help you stick to your budget
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rawing up a budget is great, but you have to be able to stick to it. Here are five tips to help you keep your good resolutions. 1. Set an objective. You’re more likely to stick to your budget if you have a precise project in mind. If you want to put some money aside to buy a house, put a picture of your dream home on the fridge or use it as a screen saver. Do the same thing for any project close to your heart. 2. Pay cash. Does your budget really allow you to spend $225 per week? Pay everything in cash and leave your credit cards at home. It’s much easier to limit your spen ding when you can see your money disappearing right before your eyes.
3. Organize your papers. Sort out your papers every week. A few minutes are enough to sort bills and documents and take note of your expenses. Don’t wait for the pile to grow into a mountain! 4. Plan ahead. Create a “just in case” fund and only use it in an emergency. Any unexpected expenses, such as the water heater springing a leak or your car breaking down, will be easier to deal with and won’t shake up your financial stability. 5. Reward yourself. Treating yourself once in a while is your just reward for sticking to your budget. A good meal out, a show, a fashionable new sweater, or a ticket to a game is a great way to motivate yourself to keep up the good work.
Do you have enough home insurance?
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erhaps your aunt has recently left you some jewellery in her will, or maybe your CD collection has grown to an impressive size. Or, it might be that you’ve finally decided to purchase the ultimate in road bikes. The question is, are the contents of your house worth more than they used to be? If so, you should check your home insurance coverage. It’s possible that the value of your assets is worth more than the amount your insurance company would give you in case of a fire, theft, or other disaster.
There are set limits in all home insurance policies. A limit is the maximum amount of money you would receive if you were the victim of theft, fire, or other type of da mage. While certain assets are only subjected to limits if stolen (jewellery, furs, collectables, bicycles, CDs, DVDs), ot her possessions have limited coverage no matter what type of claim you file, such as animals, software, and banknotes. If you don’t know what limits are stipulated in your home insurance policy, be sure to contact your insurer. You can increase your coverage to an appropriate level if
you believe that an asset is worth more than the va lue indica ted in your policy. Whether you rent or own your home, you should always take the time to make an inventory of your as sets be fore taking out a home insurance policy. At the same time, you could also take photographs or make a video of the objects you value. Not only will this inventory simplify the process if you have to file a claim, but you’ll also be able to identify all the assets that need to have their value increased in your Take the time to draw up an inventory of your assets before taking out a home insurance policy. insurance policy. Think about it!
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