According to a recent Canadian Payroll Association survey, almost 60% of Canadians don't have sufficient funds to cover even one month's worth of necessary costs. Too many home owners are living on the edge of financial catastrophe, investing money that they should be saving. If you're finding it difficult to save, now's the perfect time to reassess your financial strategy, curb your spending, and improve your financial investment portfolio. Keep more of your money with these saving tips from the mortgage brokers at FamilyLending.ca.
Saving Strategies for Canadian Homeowners
Saving is much easier than you think. All it takes is a little financial understanding and foresight.
Money SavingTip # 1-- Pay Yourself
- Saving moneyis easy when you don't have to think of it. The mortgage brokers at FamilyLending.ca recommend establishing a cost savings or investment plan that immediately transfers money from your paycheque into your savings account. Not sure how much you should be saving? Start with 10% of your gross earnings. Whatever amount you select, make sure you don't spread yourself too thin.
Money Saving Tip # 2-- Get Rid Of Debt
- Customer debt can hurt your capability to improve your savings. Let's pretend that you're carrying a credit card charge of $1,000 plus 18% basic yearly interest. Every year, you're paying an additional $180 in interest charges. Pay off that debt and you've saved $180. That's the very same as investing $1,000 in something that makes an 18% return after tax. The more financial obligation you carry, the more money you squander settling high interest charges. Eliminate financial obligation and you'll automatically save more money.
Save Money on Your Mortgage
- Are you paying more than you need to on your mortgage? Refinancing your mortgage could save you countless dollars. The mortgage brokers at FamilyLending.ca recommend re-financing your mortgage if:
- Your mortgage rate is more than 2% higher than present rates, and you have less than 2 years until maturity. Keep in mind to constantly consult your mortgage holder to figure out if there's a charge for getting out of your current arrangement.
- You've built up enough equity in your house. The more equity you have, the most likely you'll have the ability to refinance and endure a variable rate mortgage. This kind of mortgage ususally offers a lower rate of interest, but your monthly payment may change. Talk to your FamilyLending.ca mortgage broker to see if this is an alternative for you.
Expect Ups and Downs When Investing
- It's no secret that excessive risk can injure your investment portfolio's growth rate, however so can sticking to ultra-safe investments that pay one percent or less. When reassessing your financial investments, ensure that:
- You're in it for the long haul. Do not chase after every market fad in hopes of making a fast buck. Research studies have shown that it's long-term discipline that provides the highest typical returns.
- You diversify with a healthy mix of stocks and bonds. An excellent guideline to stick to: the fixed-income holdings in your portfolio ought to equal your age. This is because as you grow older you'll want to be more conservative in your approach.
- Know when to offer. The financial experts at FamilyLendingFinancial.ca recommend that no holding needs to comprise more than 5-6% of your portfolio.
Required more help making senses of your money? Then contact the mortgage brokers at FamilyLending.ca. And always remember, our financial experts at FamilyLending.ca are here to help you save.