It’s common sense that you pay extra for convenience but sometimes buying quality or local doesn’t cost more. A few shopping experiences over the last week has given rise to some gems.

Here are some smart shopping tips:

• High-end salon promotion: Buy $100 of products (I bought bulk shampoo & conditioner – lasts the year) and receive a $50 gift card for services (= next hair cut).
• Buying at your local butcher: Excellent quality and half the price of the larger grocery store.
• Farmer’s market or farms: It’s fruit season and some local farms sell in bulk. Blueberries freeze easily and may cost less than 1/3 bought in season.
• Season end clearances: Especially kids clothes! Clothing for next summer can be purchased at deep discount. Just don’t forget you bought it!

Here’s to smart shopping.

How much do you budget for food each month?

A simple question but the response ‘it depends’ is based on the following:

• Are you a household of 1 or more?
• Adults, teens and/or kids?
• Do you eat at home on a regular basis?
• Do you take your lunch?
• Do you eat prepared/packaged foods or make your own?
• What quality food do you buy?
• Do you plan your food shopping?
• Do you buy on sale?
• How much do you throw out?

When I ask others what they spend on food (eat at home/prepare at home only) for a family of 4 with young children the range is great from $750 to $1,600 per month.

Do you include eating out or separate it out? Important to know when reviewing what’s been spent compared to the budget. A single person can eat for $150 per month (men eat more!). Entertaining and higher quality food require a bigger budget.

The trick about a food budget is to be knowledgeable about what is nutritious food and to be adaptable if it’s time to trim the budget. Eating simply doesn’t cost much.

The first plus is that it’s a summer day in a not so summery Vancouver! It’s the end of July and finally a good day to go to Granville Island water park. The kids had a ball and free!

It took a little effort to bring some food and drink which serves 2 purposes…food on hand when the kids get hungry (20 minutes after arrival) and not having to travel into the market for food to get it.

As we were trekking back up the hill to home for a nap, we did promise the kids ice cream later in the afternoon! In the budget.

Here are a few more summer fun ideas for summer fun that don’t blow the budget:

• Parks, water parks, swimming pools + picnic
• Beaches, lakes, rivers + picnic
• BBQ with friends – everyone brings something
• Camp out in the backyard
• Camping
• Hiking
• Bubbles & water guns
• Bike riding
• Day trips – A 2 hour driving radius affords a lot of options without the overnight stay

Enjoy! Mr. Sun is finally out.

It’s never fun to get the credit card bill especially if it shows a huge balance, more than you can pay. A feeling of dread.

If you’ve had enough of feeling this way, it’s time to take action and deal with it. There’s no easy solution but small steps can make a big difference. Here are some ideas:

• Stop using the card. Put it away, cut it up – remove temptation
• Inquire about a reduced interest rate
• Make at least the minimum payment by the due date*
• What extra payments can you make? $20, $50, $100 per week adds up.

Keep it simple, make it easy on yourself.

* Pay the minimum payment required within the dates set out on the bill and your credit rating will be in good shape.

Who wants to think about budgets during the summer? Especially now that the weather has finally taken a turn for the better. Time to enjoy summer fun, weekends away, holidays, bbq’s, weddings and parties.

The trick is to put enough in your budget to cover the bills so you can skip into the fall with a light step.

Read more »

The short answer is anything between a few hundred (think City Hall, you and your spouse-to-be and a bouquet) and tens of thousands. The range is huge and the costs are driven by the number of guests and your vision.

Here are some examples of typical wedding expenses:

Meal & Drinks: $100 per person ($50 food & average 5 drinks per person) = $12,500
Rings: $1,000 (not including an engagement ring)
Dress & Accessories: $1,500
Suit Rentals: $200
Licenses & Other Official Payments: $200
Photography: $1,500
Flowers: $600
Incidentals: $500
Gifts: $1,000

It doesn’t take long to get to $20,000+!

Protocol is that the bride and groom pay for their wedding party’s attire as well for accommodation for out of town guests. Not many do these days however do give nice gifts and host an extra event for out of town guests.

A honeymoon is often a rest well needed after planning a wedding ($5,000).

The best gift you can give yourselves is a well thought out budget and a plan for how to save and pay for it rather than borrowing the funds and spending months or years paying for the wedding.

Congratulations if this is you!

It doesn’t take long to switch your thoughts to wedding planning. There are a lot of hats to wear when arranging the big day and it can get a little overwhelming…..project manager, PR representative and psychologist to name a few.

Weddings are big business and it doesn’t take long to realize that there can be a higher ‘wedding price’ for items such as flowers,cakes,dresses etc.

Here are some questions to answer:

• What kind of wedding do you & your fiancé want?
• What kind of experience do you want to give your guests?
• What will it cost?
• What resources do you have to pay for it?
• What does life look like after the wedding (honeymoon & regular life)?

Here are some tips to help manage the money side of the wedding plan:

• Chat with your fiancé about what you would both like on the big day – number of guests, size of wedding party
• Get some estimates for typical expenses
• List the various expenses in detail & note when payments are due
• Write down what amount you have to put towards the wedding cost
• If your parents have offered to contribute, find out how much it will be and if they have any expectations in return – such as a group of guests
• Decide what you really want and what you won’t miss
• Be creative – there are lots of ways to have what you want without paying top dollar
• Figure out how much you need to have to cover the wedding and honeymoon.
• Convert it to a monthly number and work it into your budget.

Wedding cost varies greatly however a typical wedding will cost $20,000. This may not sound like a large amount however if you pay for it after the wedding, it’s monthly payments of about $450 per month for 5 years……

Think about how awesome it will be to enjoy your wedding and honeymoon without worrying about the bills for years later. What a great start!

Next post will include some of the costs.

Keeping within budget can be tricky and is an art. Here are some ideas:

Food Cost – One of the highest monthly expenses. Minimize waste with a plan, reduce the number of times you purchase meals out with a menu plan and leftovers for lunch.
• Plan a weekly menu
• Include meals for dinner that will make leftovers for lunch
• Make a list and go to the groceries once
• Buy in bulk for high use items
• Buy on sale

Banking Charges – Interest, monthly fees, transactional fees and NSF fees can add up quickly.
• Call your bank to find out what monthly flat fee plan is best for you
• Avoid using other banks’ ATM machines
• If you have a habit of ‘going over’, apply for overdraft protection (be mindful of how often you use it, typically the interest charge is very high)
• Be mindful of how much money is in your account before you write a cheque

Other Monthly Bills – Utilities, cable, Internet and telephone
• Turn the lights out, turn the heat down at night and while you’re at work
• Contact your cable/Internet/telephone company and inquire about the monthly cost of these services if they’re bundled
• Would you benefit from a long distance plan?

Large, Annual Expenses – Car and home insurance, professional and membership fees
• Set up an automatic monthly transfer to your savings account so the funds are there to pay the bill when it’s due. Many organizations offer monthly payment plans…but at a price!

These are just a few…What tips and tricks do you use to stay within budget?

The variable and short term rates look so attractive! The question is – Can you sleep at night? How long do you plan to stay in your home? Answering these questions will help you decide what term to choose.

Mortgage rates don’t always change when lending rates go up or down but often they do. This can be very stressful because even a small change in rates can mean a huge change in payments. It is unlikely your income will increase at the same pace. This can result in a serious cash crunch. Read more »

It’s a simple question, but there isn’t always a  simple answer. It really depends on 2 things:

1. How much of a down payment do you have?
2. What mortgage payments can you afford?

A bank will use additional criteria to evaluate whether they will lend you money to buy a home including calculating your net worth, checking your credit rating and evaluating your earning stability (cash flow). They will also evaluate the property you choose.

Many banks will work with you to pre-approve you for the maximum amount you qualify for based on the above. It’s a straightforward process. You complete a financial application, provide proof of employment/earnings and proof of the down payment.

In order to be comfortable with taking on the long term responsibility of a home however there is some research and number crunching you can do:

1. How much will is cost to complete the purchase transaction? You will pay legal fees, appraisal costs, property tax adjustments and purchase taxes – these amounts can  add up.
2. How much will it cost to operate the type of home you’re looking at? Condo fees, utilities and property taxes are a few of the monthly expenses you might expect.
3. What will it cost you to maintain the property in terms of repairs and upgrades?
4. Incorporate all these costs into a budget – can you afford it?
5. Have you got a little set aside in case something goes wrong? A big repair, lost income etc.?

It is worthwhile to go through this process before you buy a new home so that you can focus on negotiating a good price on the right property rather than on whether or not you can afford it.