The recession, depending on where you lived in Canada, was tough for many, but I think opened our eyes to one's true needs vs. wants. I was proud of the many articles and conversations eliciting chats about watching our spending, cutting back or what I like to call, "intelligent frugality". Apparently though, the lessons were short lived.
According to the Globe & Mail this morning, CIBC economist Benjamin Tal said, "As of February, household credit was up by more than 7 per cent from a year earlier – more than three times faster than income growth.
The debt-to-income ratio, as a result, hit a record 147 per cent in December, and is accelerating at the fastest rate since the mid 1990s." Here's the full article: http://www.theglobeandmail.com/report-on-business/economy/debt-will-bite-consumers-report/article1520029/
Consider this the next time you're thinking of buying something on credit that you don't absolutely need - how long do you want to be a slave to your lender? When I was in the financial industry, I'd ask my clients a question: What does more money, less debt mean to you? Of the thousands of answers I received over the decade I was in the biz, the answers varied (more vacations, putting the kids through school, being able to retire, etc.), but there was one common theme as I questioned further. Every root answer was the same - freedom.
So, if we all want more freedom - what money can buy - why then, do we continue to fall prey to financial slavery?
Thursday, April 1, 2010
Tuesday, March 30, 2010
Is this a good time to lock in or refinance your mortgage? (from the Globe)
In case you missed yesterday's mortgage rate hike announcement (by three of Canada's banks), check out the Globe at:
www.theglobeandmail.com/report-on-business/mortgage-rate-boost-signals-rock-bottom-era-is-over/article1516497/
Also, there's an interesting forum with many thoughtful points on the fixed vs. variable debate at:
www.theglobeandmail.com/globe-investor/forums/globe-investor-1_personal-finance_this-good-time-lock-refinance-mortgage/?plckFindPostKey=Cat:e528746c-3414-401a-b14b-50247e3bdf01Forum:726cb897-65e7-4529-a1da-c5192c9aa85aDiscussion:cc7f909c-5c02-4956-b7c8-b98ab2b316dfPost:24b2cdda-159a-44e7-b70b-39586574d225
www.theglobeandmail.com/report-on-business/mortgage-rate-boost-signals-rock-bottom-era-is-over/article1516497/
Also, there's an interesting forum with many thoughtful points on the fixed vs. variable debate at:
www.theglobeandmail.com/globe-investor/forums/globe-investor-1_personal-finance_this-good-time-lock-refinance-mortgage/?plckFindPostKey=Cat:e528746c-3414-401a-b14b-50247e3bdf01Forum:726cb897-65e7-4529-a1da-c5192c9aa85aDiscussion:cc7f909c-5c02-4956-b7c8-b98ab2b316dfPost:24b2cdda-159a-44e7-b70b-39586574d225
Saturday, March 27, 2010
Mortgage basics - understanding fixed vs. variable rates
With all the mortgage options these days, you as the consumer have more flexibility than ever. But with choice can come confusion and the importance to fully understand the terms and definitions.
Someone last week told me they could get a 5 year mortgage for 2.75%. That's sort of true.
Right now, a five year fixed, using RBC and BMO as an example, you could lock in at 3.95%. It's a fixed rate and no matter what happens to interest rates, you're guaranteed the same rate for five years; thus the term "fixed".
Here's where it can be a bit confusing. You can have a five year "term" with a variable rate. Basically, if you chose this option, your interest rate would float with prime (right now 2.25% plus or minus the deal you get from your bank) and if interest rates increase or decrease, your rate also increases or decreases. The five years in this example pertains to not being able to leave that bank or change your options (some banks do allow you to lock in your variable rate - some options don't). However, your rate is not fixed in this example. Plus, there's "closed" or "open" terms. The latter means that you could fully pay off your mortgage, move it or change it without penalty - but you'll pay a higher term to do so.
So back to my friend's comment - yes, you could get a "five year mortgage" for under 3%, but remember, that rate would not be "fixed".
Make sure to read the fine print and understand what each term means before signing on the dotted line. Still confused? Check out your bank's website. All the big lenders have fantastic sites with explanations of their products, calculations, comparisons of options and more.
Check back shortly and I'll discuss the advantages and disadvantages of fixed vs. variable rate mortgages and how to choose which is right for you.
Someone last week told me they could get a 5 year mortgage for 2.75%. That's sort of true.
Right now, a five year fixed, using RBC and BMO as an example, you could lock in at 3.95%. It's a fixed rate and no matter what happens to interest rates, you're guaranteed the same rate for five years; thus the term "fixed".
Here's where it can be a bit confusing. You can have a five year "term" with a variable rate. Basically, if you chose this option, your interest rate would float with prime (right now 2.25% plus or minus the deal you get from your bank) and if interest rates increase or decrease, your rate also increases or decreases. The five years in this example pertains to not being able to leave that bank or change your options (some banks do allow you to lock in your variable rate - some options don't). However, your rate is not fixed in this example. Plus, there's "closed" or "open" terms. The latter means that you could fully pay off your mortgage, move it or change it without penalty - but you'll pay a higher term to do so.
So back to my friend's comment - yes, you could get a "five year mortgage" for under 3%, but remember, that rate would not be "fixed".
Make sure to read the fine print and understand what each term means before signing on the dotted line. Still confused? Check out your bank's website. All the big lenders have fantastic sites with explanations of their products, calculations, comparisons of options and more.
Check back shortly and I'll discuss the advantages and disadvantages of fixed vs. variable rate mortgages and how to choose which is right for you.
Sunday, March 21, 2010
Spring Clean Your Household Finances With Host Kelley Keehn
Production Heats Up On RTR Media's Burn My Mortgage For Corus Entertainment's W Network
Spring Clean Your Household Finances With Host Kelley Keehn's Top Tips
Producers Casting For Families in the GTA
TORONTO, March 18 /CNW/ - Burn My Mortgage is a high-energy, action-packed, half-hour television series about making your hard-earned money go further. Hosted by Kelley Keehn, one of the country's most respected and widely-quoted financial experts and authors (CBC and CNBC contributor, quoted in Oprah magazine), the series is set to debut in fall 2010 on W Network.
"The series is best described as "home finance' meets the "Amazing Race", explains executive producer Kit Redmond. "Kelley Keehn and sidekick Chad Bisch lead the featured family through a series of entertaining challenges. Families discover how to knock years off their mortgages and save hundreds of thousands of dollars on interest payments."
Producers RTR Media are currently casting for families located in the GTA. Visit www.wnetwork.com/BeOnTV. Each family that follows the rules and successfully completes the challenges receives a head start savings reward of up to $5000.
Host Kelley Keehn, author of six books including She Inc., The Woman's Guide to Money and The Prosperity Factor for Kids, offers up her top three tips to effectively "spring clean" household finances:
1) As with dieting, tracking your finances is the most important first step to a fiscally refreshed spring! Try my 30-day "Anti Budget". Track every dollar your family spends and at the end of the month, see where you can trim the fat. No need to forgo the lattes or weekend cocktails, but what about the $100 a month magazine subscription or the $50 in ATM fees? A library card is a great way to get the kids involved while still being able to access the latest DVDs and CDs for free!
2) Check credit card and bank statements regularly. Go online; it's a safe and effective way to check your purchases. Make a record of when each statement generally arrives. This could be a red flag that someone is redirecting your mail and possibly committing identity theft. Don't recognize that insignificant purchase on your credit card statement? Give the company a call - that too could be an early sign that your information has been stolen.
3) Seeing double digits? Take a look at your credit cards and if you're not consistently paying them off each month, call the credit card company to negotiate a better rate. Points cards are a great tool to get rewards fast, but not if you're carrying a balance. Generally these have a high annual fee and steep interest rates. Consider the lower rate, no frills cards that most banks offer if you're not paying your cards off each month.
Spring Clean Your Household Finances With Host Kelley Keehn's Top Tips
Producers Casting For Families in the GTA
TORONTO, March 18 /CNW/ - Burn My Mortgage is a high-energy, action-packed, half-hour television series about making your hard-earned money go further. Hosted by Kelley Keehn, one of the country's most respected and widely-quoted financial experts and authors (CBC and CNBC contributor, quoted in Oprah magazine), the series is set to debut in fall 2010 on W Network.
"The series is best described as "home finance' meets the "Amazing Race", explains executive producer Kit Redmond. "Kelley Keehn and sidekick Chad Bisch lead the featured family through a series of entertaining challenges. Families discover how to knock years off their mortgages and save hundreds of thousands of dollars on interest payments."
Producers RTR Media are currently casting for families located in the GTA. Visit www.wnetwork.com/BeOnTV. Each family that follows the rules and successfully completes the challenges receives a head start savings reward of up to $5000.
Host Kelley Keehn, author of six books including She Inc., The Woman's Guide to Money and The Prosperity Factor for Kids, offers up her top three tips to effectively "spring clean" household finances:
1) As with dieting, tracking your finances is the most important first step to a fiscally refreshed spring! Try my 30-day "Anti Budget". Track every dollar your family spends and at the end of the month, see where you can trim the fat. No need to forgo the lattes or weekend cocktails, but what about the $100 a month magazine subscription or the $50 in ATM fees? A library card is a great way to get the kids involved while still being able to access the latest DVDs and CDs for free!
2) Check credit card and bank statements regularly. Go online; it's a safe and effective way to check your purchases. Make a record of when each statement generally arrives. This could be a red flag that someone is redirecting your mail and possibly committing identity theft. Don't recognize that insignificant purchase on your credit card statement? Give the company a call - that too could be an early sign that your information has been stolen.
3) Seeing double digits? Take a look at your credit cards and if you're not consistently paying them off each month, call the credit card company to negotiate a better rate. Points cards are a great tool to get rewards fast, but not if you're carrying a balance. Generally these have a high annual fee and steep interest rates. Consider the lower rate, no frills cards that most banks offer if you're not paying your cards off each month.
Thursday, March 11, 2010
Finding a hidden gem to call home - Cambridge Suites Hotel Toronto
Recently I began the search for a hotel sponsor in Toronto for an extended stay. Hotel choice is always important for the overall success of a trip for business or pleasure, but when it is your home for months at a time- there are many things to consider.
In the greater Toronto area alone there are over 183 hotels and over 36,000 hotel rooms. I was determined to find the ideal hotel and room for my stay. Initially, when I set out to find my ‘home away from home’, I had planned on approaching one of the larger hotel chains I have stayed at on previous trips to Toronto for possible sponsorship. Then I started asking myself some key questions and my thoughts dramatically changed.
Location, Location, Location- When you are in a ‘foreign’ city the location of your residence is second to none. It's essential not to have to travel across town to meetings, appointments, shipping, for entertainment etc as it wastes time and adds stress. This can also be very important if you have a significant other, friend or family member traveling with you so they do not feel stranded at the hotel during the day.
Service- When you are staying at a hotel you have expectations. For example, cleanliness, and friendly, accessible, accommodating staff. This is the expectation, when it is surpassed, you become a loyal customer.
Amenities- It is important to make sure the hotel of choice has the amenities that are important to you. For example for business trips to have Internet access and any other technology necessary, or for the health conscious individual an adequate fitness facility as well as access to convenience health foods.
When I was browsing through hotel options Cambridge Suites (http://www.cambridgesuitestoronto.com/) kept coming up. I was skeptical at first never hearing about them before, I was not sure of their reputation despite being an avid business traveler. I was on their website and the more I learned, the more I was impressed. The location was great, they offered extended stays, the amenities I desired, but still I was not convinced.
I started reading the tripadvisor (http://www.tripadvisor.com) reviews to get a better sense of the hotel. To my amazement the general manager had taken the time to respond to each comment made, good or bad- an indication of great customer service.
My office approached them for sponsorship, still slightly hesitant. The result surpassed all my expectations. The general manager and the director of sales and marketing were quick to respond, professional, accommodating, enthusiastic and a pleasure to work with.
Within days the deal was negotiated and I, my staff and family was welcomed with open arms to my home away from home.
I'd highly recommend that you check out this lovely hotel on your next visit to Toronto.
In the greater Toronto area alone there are over 183 hotels and over 36,000 hotel rooms. I was determined to find the ideal hotel and room for my stay. Initially, when I set out to find my ‘home away from home’, I had planned on approaching one of the larger hotel chains I have stayed at on previous trips to Toronto for possible sponsorship. Then I started asking myself some key questions and my thoughts dramatically changed.
Location, Location, Location- When you are in a ‘foreign’ city the location of your residence is second to none. It's essential not to have to travel across town to meetings, appointments, shipping, for entertainment etc as it wastes time and adds stress. This can also be very important if you have a significant other, friend or family member traveling with you so they do not feel stranded at the hotel during the day.
Service- When you are staying at a hotel you have expectations. For example, cleanliness, and friendly, accessible, accommodating staff. This is the expectation, when it is surpassed, you become a loyal customer.
Amenities- It is important to make sure the hotel of choice has the amenities that are important to you. For example for business trips to have Internet access and any other technology necessary, or for the health conscious individual an adequate fitness facility as well as access to convenience health foods.
When I was browsing through hotel options Cambridge Suites (http://www.cambridgesuitestoronto.com/) kept coming up. I was skeptical at first never hearing about them before, I was not sure of their reputation despite being an avid business traveler. I was on their website and the more I learned, the more I was impressed. The location was great, they offered extended stays, the amenities I desired, but still I was not convinced.
I started reading the tripadvisor (http://www.tripadvisor.com) reviews to get a better sense of the hotel. To my amazement the general manager had taken the time to respond to each comment made, good or bad- an indication of great customer service.
My office approached them for sponsorship, still slightly hesitant. The result surpassed all my expectations. The general manager and the director of sales and marketing were quick to respond, professional, accommodating, enthusiastic and a pleasure to work with.
Within days the deal was negotiated and I, my staff and family was welcomed with open arms to my home away from home.
I'd highly recommend that you check out this lovely hotel on your next visit to Toronto.
Sunday, January 24, 2010
PC vs Mac - which computer should you buy?
If you've read my latest book, She Inc., you know too well my rant on the Mac vs. PC debate and my long-term support of the latter.
My "cool" friends jeer at the fact that I still use a PC, constantly sending me those Mac commercials with the out-of-touch, geeky, PC spokesperson. I've never had a reason to switch and quite frankly, the thought of learning an entirely new operating system, the Mac language and more, evokes great buying trepidation.
However, I'm also a fan of the power of 3's - third time's a charm, three strikes, you're out - and pondering the latter, my PC's on it third strike. My six year-old baby, my laptop, has lived far beyond his expected years with three replace hard drives, mucho memory and yet he still can't play a YouTube video without stalling out and having the fans kick into overdrive.
That's strike one. Strike two, he had a virus that rivalled the H1N1 for computers. With two weeks at the repair shop, reinstalling all of his software (which took days for my assistant to fully find - you'd be surprised how much software one accumulates over six years), and much cost, I must admit that the ridicule of my Mac friends has worn on me (Mac apparently doesn't have the virus issues that PCs do). Lastly, I've heard nightmare stories about operating Vista, and with such a change in operating system if one does buy a new PC, I think I might make the Mac leap yet.
Cost is a huge consideration as the Mac laptop I'm considering as a cool $1,000 plus over that of a PC comparison.
Here's a great blog that I found detailing the advantages and disadvantages, cost and otherwise of PCs vs. Mac - http://hubpages.com/hub/LaptopDilemnaMacorPC .
Happy shopping and leave me a post with your thoughts on the PC vs. Mac debate.
My "cool" friends jeer at the fact that I still use a PC, constantly sending me those Mac commercials with the out-of-touch, geeky, PC spokesperson. I've never had a reason to switch and quite frankly, the thought of learning an entirely new operating system, the Mac language and more, evokes great buying trepidation.
However, I'm also a fan of the power of 3's - third time's a charm, three strikes, you're out - and pondering the latter, my PC's on it third strike. My six year-old baby, my laptop, has lived far beyond his expected years with three replace hard drives, mucho memory and yet he still can't play a YouTube video without stalling out and having the fans kick into overdrive.
That's strike one. Strike two, he had a virus that rivalled the H1N1 for computers. With two weeks at the repair shop, reinstalling all of his software (which took days for my assistant to fully find - you'd be surprised how much software one accumulates over six years), and much cost, I must admit that the ridicule of my Mac friends has worn on me (Mac apparently doesn't have the virus issues that PCs do). Lastly, I've heard nightmare stories about operating Vista, and with such a change in operating system if one does buy a new PC, I think I might make the Mac leap yet.
Cost is a huge consideration as the Mac laptop I'm considering as a cool $1,000 plus over that of a PC comparison.
Here's a great blog that I found detailing the advantages and disadvantages, cost and otherwise of PCs vs. Mac - http://hubpages.com/hub/LaptopDilemnaMacorPC .
Happy shopping and leave me a post with your thoughts on the PC vs. Mac debate.
The costs of professional teeth whitening
It's all the rage. Every magazine tells us, men and women, that a brighter smile is the quickest way to shed years off your face. But what's the cost?
As an avid coffee drinker and occasional red wine drinker, I've used teeth bleaching for years. Unfortunately, I lost my teeth trays some time ago and thus had to start the search all over again for whitening options. Here's the skinny on glowing teeth without breaking the bank (especially if you don't have a dental plan - although, I'm not sure most would cover whitening):
As an avid coffee drinker and occasional red wine drinker, I've used teeth bleaching for years. Unfortunately, I lost my teeth trays some time ago and thus had to start the search all over again for whitening options. Here's the skinny on glowing teeth without breaking the bank (especially if you don't have a dental plan - although, I'm not sure most would cover whitening):
- Whitening strips. I opted for the professional whitening strips (as opposed to those at the drug store) which cost about $100 for a 30 day package. Personally, I found them messy, annoying to use with minimal results. I stopped half way through with a box full of these strips left. I suppose if you've never used traditional teeth bleach, you might find the effects noticeable, but too lengthy of a process for me.
- In office whitening systems. I found a dental clinic offering ZOOM in-office system for $299, which has come down dramatically from it's $600+ price tag some years ago. I also found some clinics quoting $1,200 plus for in office whitening so be diligent in shopping around. If you opt for this option or similar in-office systems, be prepared to have your teeth cleaned first (I called around and this cost can vary from $200 - a whopping $600). Also be prepared for a great deal of pain (although short-term) if you have sensitive teeth. The dental office I used also sent me home with enough touch up gel for many more applications plus, customized teeth trays.
- Take home options. If the pain and cost of in-office sessions have you questioning a brighter smile, shop around for custom fitted trays and take home gels. I highly recommend this option over the store bought trays as you likely don't want the harmful bleach leaking out into your system and you'll have whiter teeth quicker.
- Bleach doesn't work on stains. Lastly, I learned that whitening systems are not aimed at treating stains. So, your least costly and pain free solution might be to drop in for a quick polish touch-up at your dentist's office.
Smiles!
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