How many accounts do you have? How many differenct banks do you bank at? What about credit cards, loans and investments? Spreading around your business is one thing but it can be tricky to manage. Fewer arrangements and relationships to manage will help to keep your money management simple. Here are some suggestions:

• 2 Major Credit Cards (different companies)
• 2 Bank Accounts: 1 chequing and 1 savings
• 1 ‘Hard to Access’ Savings Account: At a different bank or a money market account (low risk and accessible if you have to)
• Loans and Mortgages: At your main bank
• Investments: At your main bank (until the value warrants an advisor)

Choose your primary bank carefully because although the staff may turnover at an alarming rate, developing a relationship and maintaining a good history with a bank can work well in your favour later on. When it comes time to apply for your first loan or mortgage, they will be able to review your accounts and know how you have handled your affairs. It doesn’t mean you have to go into a branch anymore than you do now and can continue to bank on-line or through ABM’s. The majority of your financial stuff will be in one place and very easy to view on-line!

Now let’s talk about timing. It’s all about cash flow – when the money comes in and when it goes out. Half of the equation is probably out of your control as your employer will pay you at the same time as everyone else! The majority of employers pay biweekly (every 2 weeks) or semi-monthly (2 times per month) however some pay monthly or weekly.

Most of us try to manage our money into the middle and end of the month. Some bill cycles are set and difficult to change however for payments such as savings (monthly automatic savings) or loan and/or mortgage payments you often have several options. The key is to choose the payment dates that work best for you. Don’t be swayed by paying your mortgage biweekly if you are paid semi-monthly. You may be told you will pay down your mortgage faster by making biweekly payments but the trick is they are higher payments..you can do this just as well by setting semi-monthly payments a little higher. Whenever possible, match your payments with your pay.

Although this can get a bit tricky if you’re paid bi-weekly, it’s doable. Simply manage your money on 2 paychecks per month. 2 times per year you will get 3 paychecks .. best take the third and put it towards one of your goals such as vacation, RSP’s or paying down a debt!

If you took Making Your Money Management Simple – 1 to heart, you are now organized!

This post is about paying bills on time and in no time. Our household bills all seem to naturally fall due towards the end of the month. This is okay as I sit down once per month and set them up on-line for payment. Easy peasy lemon squeezy as the kids say. Read more »

Our lives are busy enough, who wants more administrivia? Keeping track of bills and money can be kept to a minimum with a few simple strategies. The next few posts will include suggestions and tips to manage bills, banking, investments and debts. Read more »

The nice weather is starting! There is still enough time to plant some seeds for your financial future. Here is a list of common financial goals:

• Purchase a home
• Purchase a new vehicle
• Annual vacations (or perhaps a big trip every few years)
• Retirement
• Pay down debt
• Emergency fund
• Kids’ education fund

The list above is in no particular order but covers many of the items on wish lists. Some of the items can be combined. For example, retirement savings can be used towards a home, education (yours), retirement and are there as an emergency fund if you really need it.

The key to turning your wish list into reality is to rank your list based on priority. If having no reserve or emergency fund keeps you up at night then that may be your first priority, likewise if your debts are hanging over your head it’s time to get rid of them. You may not be able to tackle everything on your list at the same time but start somewhere and by start, I mean put your plan into action. Calculate what you top priority item(s) will cost and set up the savings or payments to start towards them. Keep in mind what’s next on your list so that as more money becomes available, you know where to put it.

According to the calendar, spring is here. You wouldn’t know it from the weather we’ve been having but in Vancouver the flowers and trees are blooming.

Spring is an excellent time to set the path for your financial future because the holiday season is well behind us, income tax information is current and there is plenty of time to put plans into action before summer distractions!

It’s never too late to take control of your money and set your plans into motion. A few simple steps:

1. Decide what you want and when you want it
2. Review your current financial situation
3. Determine the actions to complete to make progress towards your goals
4. Complete the actions
5. Monitor your progress

Next post we’ll look at some common objectives and suggest what sort of a plan to put in place to achieve them.

In the last post, I suggested completing your taxes in stages. This post includes some tips around the details and making it a smooth process. We are reliant on others to provide much of the information that we need to complete our taxes and there are several ways to complete your taxes. Which do you use? Both of these points impact how we complete and file our taxes.

• Taking a quick look at last year’s taxes can refresh your memory with respect to what tax slips you will likely receive this year.
• There are specific dates that certain tax information/slips have to be sent by. If you know what documents to expect you can gauge when you will have all the information.
• Using a software to complete your taxes has a several benefits including pulling forward information to the next year so you don’t have to re-enter it, you can go back and forth to enter information you receive at different times and the software does all the re-calculations for you, most software has functions in place to ask you questions which prompt additional points you may not have thought of and submitting your taxes electronically is fast which means that you will get your refund faster!

Happy tax filing!

It’s that time of year again and taxes will be due before you know it.

It’s a rare breed that enjoys doing their taxes and even as an accountant I don’t look forward to it. I’ve found that if I break the job into smaller and more manageable tasks. It is easier to tackle the job for a couple reasons.

1. It’s easier to find smaller chunks of time in the week than 1 or 2 big blocks of time.
2. I can focus on the task at hand rather than become overwhelmed with all that needs to be done.

I break the job into 4 steps:

1. Gather and organize tax slips, previous years tax information and any other information required to file the tax return.
2. Complete the income portion of the tax return including RSP’s, child care deductions, self-employed income or rental properties.
3. Complete the expenses portion of the tax return including tax calculations (federal and provincial) and any balance owing or refund.
4. Review your tax return submission and file it.

Why wait? The sooner you submit them, the sooner you will receive your refund or avoid any penalties or fines for late submissions.

Do these 2 topics make you uncomfortable? If the answer is yes, do you typically procrastinate?

Why do the alarm bells go off in February? If all the media attention hasn’t brought it to your attention, the following might:

• You will receive most of your income tax slips in February
• The deadline to contribute to your Retirement Savings Plan (RSP) for deduction on 2012 income tax is the end of February

Retirement can seem so far away yet filing personal income taxes is one of those annual chores. They are related in 2 ways:

• RSP contributions made by the deadline can reduce your tax bill for 2012
• Income tax preparation is a good opportunity to review your financial situation now and plan for your future

RSP’s are one of few ways to prepare for your retirement. A government sanctioned program that has several benefits if you operate within the conditions. The benefits include:

• Deductions that can minimize your current income tax bill
• Tax sheltered earning
• Tax deferral (income tax payment rate applicable to your income level at withdrawal)
• Savings for you!

The point is, February almost over! If you think you may have a tax bill in your near future and have some funds to save in an RSP it can be worth doing a quick calculation now to learn how much to put aside to reduce income tax owing. The money stays in your pocket as opposed to going to the government.

February 14th was last week but we still have reminders around our home such as homemade valentines cards and a basket of spring plants that can be planted outside before long.

I was thinking about how everyone experiences the day so differently. My girls dressed themselves all in pink and were really excited to hand out valentines to their friends. I saw people carrying chocolates, flowers and cards. I know that restaurants are full, full, full and offer special menus. I also remember my ‘single’ Valentines days and getting together with friends to avoid the pressure.

Valentines is an occasion that is embraced by many and although I’m happy to avoid busy restaurants, I like the sentiment. I think it’s all about how we celebrate it. I loved the valentines from my daughters.

My husband came home with the spring plants (a gift from my Dad) asking excitedly how much I thought they charged for a bouquet of roses. Surprise! Quite a bit more than other days! Some people would cringe at the thought of paying more than regular price but isn’t it all about the value you receive? If you know you will make a special someones day by giving a bouquet of roses and you are prepared to pay the going price then isn’t that OK? Likewise if you choose to make a special someone happy by making them a cake isn’t it the thought that it important?