As a parent, your first priority is always the well being of your child. But, what do you do when you need to save for retirement but you don’t have spare change because your child is draining you financially? It can be hard to consider your future when you need to look out for your child, but here are some tips to make it easier for you.
1. Lean on Tough Parenting When You Need Too
Most often parents lead by example, guiding their kids to making proper choices and trying to educate them on their future adult lives. However, there are different times in every child’s life where they drive their parents crazy and cost them money. Elementary aged children are always begging for toys and teenagers want cars, late curfews, and credit cards. Often kids who get everything handed to them stay more dependent on their parents for longer which sure can be expensive. Coddling kids usually will lead to less responsibility and more poor choices in their personal lives. Young adults who don’t have to fend for themselves often find destructive outlets with all their free time such as drugs and alcohol. In cases like this, adding safety nets like a device from Low Cost Interlock or setting up a drug monitoring program can help them grow up but potentially save you thousands on a dui or the high cost of rehabilitation.
2. Start Investing For The Future
Whether you have kids or not, you should always invest for the future, but especially if you do have kids, they are expensive!. Accruing savings over time is the only way to plan for retirement like investing in stocks and having retirement accounts like an IRA. Some people forsake this to give extra money to their children but don’t fall into that trap. Remember that once you retire, you won’t have much of a chance to make money like you can during your younger and career years, most Americans retire and live off a fixed income for the rest of their lives. Each time you give your kid money for groceries, rent, a car payment, or even something like a vacation it can eat into your potential savings. Obviously, most parents help their adult children out when they need to but make sure to think of yourself and your future too!
3. Save! Save! Save!
One of the smartest things you can do is save. Even if you can only save $5 a day, it will help you significantly in the future. Create a savings account that can’t be touched until you retire and you’ll find yourself very happy once you do retire. Save the money for emergencies during retirement. You will thank yourself in the future. Another option is creating a savings account directly for your child. If your child is making bad decisions, invest in their future. If you do not feel comfortable cutting them completely off, put money aside for them without them knowing. This will help them in the future and it would mean a lot to them, knowing that you invested in their future when they weren’t behaving in an acceptable way.
Regardless of your situation, there are ways to save and secure yourself during retirement. Do not let your children define the lifestyle you can have by soaking up all of your money in the moment. Think about the future and everyone will benefit from it.
To begin with, let’s think about the most basic way you can help yourself: by reading around the topic of personal finance in order to get an initial grasp. No-one’s going to say that personal finance issues are a walk in the park, but the mystery behind the figures and terminology can quickly disappear if you just put a little bit of legwork in. Pick one area of your finances that you’re having difficulty with, and then hit up Google; there’ll be many, many resources that explain it in layman’s terms.
Take a Course
The internet can also do a lot more than just explaining to you the basics, too. There are plenty of free courses in money management that’ll take you from complete novice to something of an expert in no time at all. You can take free and paid courses in a wide variety of financial matters, from the basics of budgeting all the way through to the best ways to invest your money. You are the best resource you’ll have, but you’ll need other people to help train your brain up.
Helping With Debt
Of all the issues that are related to money, none are as damaging as living with debt. It’s no wonder that many people are kept up at night, all thanks to that negative figure that they know they’ll eventually have to pay off one way or another. The path to being debt free is a struggle, as anyone who has made the journey will tell you. Go it alone, and it’ll and be all the more difficult. So instead, get debt counsellors to help you navigate your way through renegotiating your debts, coming up with saving plans, and so on. With their professional help – and moral support – you’ll be able to sleep much better at night!
The Big Investments
Of course, some financial matters can be troublesome, but temporary. If you have a credit card with $1000 of debt, then it’s unlikely to be stuck around your neck for too many years. The same can’t be said for buying a house. If you make mistakes there, then you’ll be living with a costly mistake for many years. As such, it’s best to solicit the services of a mortgage broker before proceeding with the house purchase. They’ll help you to ensure that you get the best possible deal. It takes the confusion out of the whole process and also means you can get on with other details full in the knowledge that the important stuff is being taken care of.
Financial Planner Help
Unless you’ve studied the subject for many years, it’s unlikely that you have the knowledge required to really make a watertight financial plan, both for the short and long term. But there are people out there who do have this knowledge, and they’re called financial planners or financial advisors. When it comes to making sure you have a financial future that works for you, there’ll be no one better than these kinds of experts.
Now, we know the idea of having a person to manage your finances on a daily basis might sound like a little bit unnecessary, but hear us out, because there are real benefits to using one. If you – or someone you know – is too old or simply too busy to manage their financial responsibilities, then you can get someone to be in control of it for you. They’ll do a whole range of tasks, such as paying your bills on time, make deposits, set up a budget, and a whole bunch more to make sure your finances are as straightforward as possible.
Everyone makes mistakes in life. That doesn’t mean they have to live with them forever, though. If you’ve made financial errors in the past, then you might be prevented from getting access to the kind of financial services you need to move on in life. That’s where credit repair companies come in. They’ll work to remove all the negative aspects of your credit score, which will make it much easier to get loans, mortgages, and so on in the future. Of course, they’re not capable of getting rid of every single negative aspect, but they will be good enough to raise your score at least a little.
So far, we’ve talked exclusively about personal finance matters. But if you own a business, then you have a whole other aspect of finance to think about – and like it or not, the success of your business will have a big bearing on your own money matters. When you’re growing your business, you want to be working on the aspects of the company that you have a natural talent for, not wasting time with accounts. As such, make sure you hire a good accountant, financial advisor, and a bookkeeper. They’ll keep everything in check, and offer advice about how and when to grow your business.
Ultimately, you should hire as many people as you think you need. Finances are confusing, but if they’re being handled by experts, then you’re unlikely to make too many mistakes. The key is to work with people you trust. If you have a good relationship with them from the front foot, you’ll be in a strong position to have a consistent, profitable relationship for many years to come.
Winter can be your chance to catch up on debt you accumulated over the summer, when you’re busy going on holiday and more likely to eat out or go shopping. The increased sunlight increases spending, and that means a lot of Canadians dip into savings or go into debt in the summer. When you know that you tend to spend a lot more in the summer, instead of adding to your debt to cover the costs, plan for it by saving through the winter.
For some, repaying their debt isn’t seasonal, but an ongoing process. A Consumer Proposal in Canada can help anyone who has become insolvent repay their debt in a reasonable time frame without forcing them to sell assets. Insolvency means that your income isn’t enough to keep up with your debt repayments, and it’s a financial crisis. It can lead to collection calls, garnishes on your wages, a bad credit rating, and mounting interest. A Consumer Proposal in Canada can get you out of that situation.
Consumer Proposals in Canada
Consumer Proposals in Canada are filed by a Licensed Insolvency Trustee, a federally regulated professional who advises you and handles filing for Consumer Proposals and bankruptcy in Canada. A Consumer Proposal in Canada consolidates your unsecured debts, i.e., the debts you owe that don’t have any collateral, like credit card debt, utility bills, payday loans, and debt consolidation loans. A Consumer Proposal immediately stops collection efforts from your unsecured creditors, including legal actions against you. In Toronto, Licensed Insolvency Trustees like David Sklar & Associates are available to advise you when you face insolvency. A Licensed Insolvency Trustee represents your interests and helps you draft a fair Consumer Proposal that your creditors will accept. They act as an intermediary between you and unsecured creditors to come to an agreement that will reduce your debt and make it easier to pay.
Consumer Proposal or Bankruptcy
When you’re insolvent, bankruptcy is also an option, but Licensed Insolvency Trustees in Ontario like David Sklar& Associates encourage clients to seek a Consumer Proposal first. Declaring bankruptcy can mean that you have to give up property, damaging the financial foundation you’ve built for yourself. A Licensed Insolvency Trustee can help explain the advantages of a Consumer Proposal over bankruptcy, but it’s important to seek out early on. When you notice that you’re struggling to keep up with debt payments, it’s time to seek help.
This winter, get the debt help you need and start rebuilding your credit rating and your savings. Cut out impulse buying and get back on track to financial success.
Left to your own devices, you may not handle your cash with as much poise as you had hoped for. If you’re tired of wondering why you aren’t saving as much as you want, it’s time you teach yourself how to manage your money like a boss. Check out these simple rules, and see how easy it is to keep your finances in check.
- Break down your budget properly
The foundation of your finances relies on a well-made budget. How you arrive at this financial plan differs from person to person, but experts recommend you do more than just compare your income to your expenses. While this is a great first step at understanding your finances, it doesn’t do enough to prepare you for the future.
Financial experts suggest you follow some variation of the 50–30–20 Rule. The original 50–30–20 Rule offered a way to organize your budget using three basic categories: your necessary expenses, savings, and fun money.
The first category should use roughly 50 percent of your income, so things like rent, utilities, and insurance payments take up most of your paycheque. The second category should use 30 percent of your income to create savings or contribute to investments, while the remaining 20 percent is your fun money—the cash you can spend on tickets to Ed Sheeran or that daily double double.
It was first used decades ago. Since then advisors suggest tweaking its percentage breakdown to account for wage stagnation, the rising cost of living, and inflation. Some recommend a 60–20–20 Rule, while others advocate a simpler 80–20 breakdown. The latter’s 20 percent goes towards savings, and the other 80 percent should cover every other expense.
Choose the one that best fits your finances.
- Pay off the right debt first
In September, The Globe and Mail reported Canadian household debt has risen to $2.08 trillion — a new record high. According to Equifax, that means the average Canadian owes $22, 081 in consumer debt, through lines of credit, student and payday loans, and mortgages. With statistics like this, paying off debt is a priority for most people.
Though it may seem like a good idea to tackle the biggest outstanding loan in your name, you’ll want to consider its APR first. When it comes to loans, size isn’t everything. Compound interest and other fees can increase how much you owe. Those debts that have high interest rates will generate more debt the longer you have it faster than those with lower rates.
Compared to student or auto loans, your credit cards and online payday loans have higher APRs. Your student loan can wait, especially if you qualify for repayment assistance. But if you’ve taken out a MasterCard or payday loan online, the government won’t help you repay these. While they may be the best options for eliminating debt in the face of a cash shortage, you should aim to repay them back quickly, before any other loan.
- Save enough for retirement
Being able to retire in comfort is a real concern for most Canadians but many aren’t sure how they can prepare for the future.
Financial experts recommend you save 10–12 times your annual gross income in preparation for your retirement. Making regular contributions into your savings account isn’t enough to get you there. Even the average high interest savings account barely covers the rate of inflation—which means you’re not earning the full purchasing power of your dollar.
If you want savings to work in your favour down the line, you’ll have to use specialized accounts and other investments to help. Speak with an advisor to learn about your mutual fund, RRSP, and tax-free savings account options. You’ll also want to investigate ETFs (or Exchange Traded Funds), stocks, or robo-advisors to see if these products will help you reach the recommended 12 times your income.
Teaching yourself any new skill will take time, effort, and determination. Mastering your finances is no different. It will be a challenge, but it’s one worth the work. Once you teach yourself the ropes, adding to the rules you’ve learnt here today, you can start managing your money like a pro.
Please make the first sentence: Many people dream of investing in real estate, but it is a difficult dream to achieve without investment property loans California. Real estate is quite expensive; in order to buy investment property, you must have a lot of money. If you don’t, your only choice is to borrow a lot. Many loans are risky and can land you in financial trouble if things don’t go exactly as planned. Investment property loans are a safe choice if you already own at least one real estate property. Of course, there are also other pros of an investment property loan with North Coast Financial.
Investment Property Loans are a Type of Hard Money Loan
A hard money loan is a short-term loan that uses a piece of real estate as collateral. When you secure hard money loans with a piece of real estate that is your primary residence, you can borrow up to 80 percent of the value of the property. And, you can use this loan to buy another property to use as an investment. If you already own an investment property and want to use it to secure an investment property loan, the maximum you can borrow is about two thirds of the property’s value. Otherwise, an investment property loan is just like any other hard money loan.
Investment Property Loans Are Quick and Convenient
The most desirable investment properties do not stay on the market for very long. An investment property loan can give you quick access to the cash you need to take advantage of an opportunity to invest. You can also use investment property loans to save your investment property from foreclosure.
An investment property loan is very much like any other hard money loan. The main difference is that it is especially for investment properties.