Top 3 Money Mistakes Couples Make

Now money mistakes happen. Have you committed one of the big three?

http://ca.finance.yahoo.com/video/top-3-money-mistakes-couples-212620429.html

Update: The embedded video kept breaking so I replaced it with a link.

Thanks to Yahoo Finance and their #MoneyMinute, even though its actually 3 minutes.

Source: http://ca.finance.yahoo.com/video/top-3-money-mistakes-couples-212620429.html

Tax Tips in Canada

Oh boy, its here again. Tax season. This can be a difficult and stressful time for some people, but it doesn’t have to be. That is why we have good people like Daniel Foster looking out for you in the tax world. He has 4 great tips on how to save some extra money on your taxes this season.

Although no one  enjoys paying taxes, it is every Canadian’s  civic duty to do so. Federal tax rates range from 15 percent on the first  $40,970 of income to 29 percent on amounts over $127,021. Provinces and  territories also collect additional taxes. A number of steps will help you  minimize your federal tax liability.

Declare Tax Credits

Public transit users are eligible for a tax credit of up to  $100.

The Canada Revenue Agency provides a wide range of credits for taxpayers. One  example is the Home Renovation Tax Credit (HRTC). If you purchase home  improvement materials or hire someone to fix up your  home,  and you spent between $1,000 to $10,000, you qualify for the HRTC. The credit  pays for 15 percent of the cost, up to $1,350. Another popular credit is the  Child Disability Benefit (CDB), available to families with a child younger than  18 who has a severe physical or mental handicap. It covers up to $2,044 of  care-related expenses. Credits are also available for caregivers and public  transit users. New credits take effect every year, and some expire. Unlike  expenses, tax credits subtract directly from the amount you owe–so if you owed  $10,000 in taxes and declared $2,500 in credits, you’d only pay $7,500. Check  the status of a tax credit with the Canada Revenue Agency (see Resources) or a  tax professional before filing.

Highlights From Finance Minister Flaherty’s 2014 Federal Budget

 Hey everyone! Courtesy of the Canadian Press here are some highlights from Canada’s 2014 budget announcement by Jim Flaherty! I bolded some areas of interest at the civilian level!

Not listed: Commitment to 5mbps internet speeds across Canada. Good news for all you members of rural Canada and people with lower end internet packages!

Some highlights from Finance Minister Jim Flaherty’s 2014 federal budget

OTTAWA – Some highlights of the federal budget delivered Tuesday by Finance Minister Jim Flaherty:

— The budget is close to balance, with a $2.9-billion deficit and a $3-billion contingency fund.

— Flaherty forecasts revenues of $276.3 billion and expenditures of $279.2 billion.

— The government makes clear it will balance the budget next year by cutting program spending and reining in public service compensation costs.

— The budget proposes to make retired federal public servants pay half the costs of their health-care plan, up from a quarter now. This would raise annual payments for a retired individual to $550 from $261.

Three Personal Finance Tips For Soon To Be College Graduates

Scott Day of Michigan State University has 3 great finance tips for upcoming grads!

I just recently bumped into an old friend that I had not seen in a while. He has a “soon-to-be college graduate.”  We started talking about today’s tough job market, and he asked if I have any advice that I might be able to pass on in personal finances for this particular age demographic. I quickly put together a three-point elevator speech that could be explained by a concerned parent in a short period of time, and here are the highlights:

1. Next time your soon-to-be graduate is at a book store getting a cup of coffee, meeting with a group of friends or studying, ask them to pick up a book or two on personal finances that is directed at their age. If they can buy it, great, but even if they skim through it for a half hour at a time, over time, this will get the ball rolling that will help them set themselves up or success in what might be a very stressful time in their lives. Since they are already in learning mode this would be just a little “value added” to a well-rounded college education.

5 Money Questions You Should Ask Before Tying The Knot

About to tie the knot? Mary Schwager of GalTime.com wrote a great piece to help give you some advice on how to manage your money.

You know this one: Struggles, arguments and disagreements about finances are among the most common reasons couples break up. If you are a saver and your love is a not-so-better half when it comes to spending money, that can be a recipe for relationship disaster.

How do you know what you’re getting into before you say “I do”? Money expert and financial adviser Margie Baldock, author of The Mother Lode Manifesto, says when it comes to your financial health, selecting the right partner is the most important decision you can make. “The wrong partner, financially speaking, can mean a life of stress, struggle and strain. It is no wonder, then, that 80 percent of divorce is believed to be based upon money disputes.”

Baldock recommends you not walk down that aisle until you’ve asked, discussed and are satisfied with how your partner answers these very important five money questions:

Should You Skip the RRSP Contribution and Pay Off Your Mortgage First?

There are more than a few ways to get yourself to retirement. RRSP’s are a great investment, but so is clearing your debt before you stop earning a regular income. So what should you focus on? Thankfully The Globe and Mail has a great article to help you decide.

The big push is on to convince Canadians to load their extra cash into registered retirement savings plan (RRSP) investments before the Mar. 3 deadline. But though it may seem as though contributing is the only option when it comes time to decide what to do with the money, it’s not.

Many financial planners, accountants and other experts suggest there’s an even better way to work toward a well-heeled retirement down the road: Pay off the mortgage first. And do it as fast as you comfortably can.

That’s exactly what Rock Lefebvre, vice-president of research and standards for the Certified General Accountants Association of Canada, in Ottawa, did when he was younger. Rather than invest in stocks, bonds or mutual funds, he developed a financial strategy that meant paying off his mortgage early. To this day he still advises that most people eliminate consumer debt and then go on to tackle mortgage debt before investing.