Unimor Capital Corporation

Category: News

Reduce Your Household Waste

Reducing household waste has been on the top of our agenda this year because we noticed that we have far too much garbage leaving our house each week. If you just stop for a moment and think about ALL of the containers in your kitchen that should make you want to consider reducing household waste. I know that’s sort of how it went down for us when we began cleaning out our kitchen using the Konmari method of organization last week.

Every cupboard we opened we found more and more plastics, containers, bottles, bags and general junk that couldn’t be recycled that we knew would end up in our landfill. It’s amazing what you learn about the way you live when you become mindful of what is happening around you. Too often we are so busy with work, parenting and life that we race through our day and forget about other things that matter such as our environment.

Reducing Household Waste is Next Level Generation

More than ever in Canada we need to consider reducing household waste which may seem a bit harsh on the budget at first, but you’ll find that over time it’s not as pricey as you may think. I’ve compiled a list of ways we plan to target reducing household waste in our home and we hope that you consider adopting some of the same practices. Keep in mind that reducing household waste is a process so you can’t expect it to happen over night nor are you expected to be perfect at it, nobody is. As much as someone wants to say they’ve bagged the environment thing from all aspects I’m doubting that is a reality. What is real is doing our part to reduce, reuse and recycle what we have as a community, country and world-wide. Let’s have a look at what we came up with. I’m excited and I hope you are to join us on this journey to reduce household waste.

Water Bottles: Another part of our plan for reducing household waste is to stop buying plastic water bottles and enjoy water that comes from our taps, which for most, is perfectly safe to drink. Just because companies like Nestle Waters Canada offers 100% recyclable water bottles that doesn’t mean the bottles end up being recycled. More and more bottles keep showing up in our waters and that should be a warning to consumers that we need to rethink our mindset about reducing household waste.

Straws: We don’t use many straws in our house, but when we do, up in our cupboard was a huge container of plastic straws. Not anymore! We are replacing them with stainless steel straws and biodegradable paper straws.

Reusable Containers: Using reusable food storage containers instead of plastic baggies is a big deal to us, especially now that our son goes to school. We purchased affordable bento-style lunch boxes from Amazon for our son that seem to be working well and they come in various colours. His school was asking parents to eliminate sending packages and plastic baggies to school and to opt for bento lunch boxes if possible. There are also reusable silicone baggies you can buy that are a reusable option as well just eliminating them. Another option is to buy glass or stainless bowls with silicone bowl covers to store leftover food or even to freeze foods for later use. Just remember you won’t be able to eliminate everything but sourcing the better options is better than doing nothing at all for our environment.

Reusable Shopping Bags: You can now buy reusable shopping bags and reusable produce bags that you can bring along on your grocery shopping trip. What I love about them is that you won’t have plastics to dispose of and they are cost-effective.

Beeswax Wrap: I found this brilliant product by Abeego wrap after one of the parents at my son’s school mentioned that she uses it at home in place of plastic wrap. The best part is that Abeego is self-adhesive so just you just use the pressure and warmth from your hands to shape and mold the product around whatever you are wrapping. It also comes in various sizes and although the price point may seem high at first you have to think long-term with products such as this as well what goals you plan to achieve from reducing household waste. When you are done with it you simply wash it in cold water along with biodegradable dish soap and hang it to dry.

Parchment Paper & Foil: Another great tip is to use silicon mats instead of parchment paper or foil when baking and I can attest to how well they work since we have about 4 of them.

Eco-Friendly Cloths: Using organic, bamboo reusable kitchen towels that are absorbent is a great option to eliminate paper towels if you prefer to go that route. You can also use old shirts to make cloths by cutting them up, which I’ve done many times. There is also a great company called Norwex, that sells fantastic reusable cloths that have silver woven in for superior cleaning capabilities. They can be pricy, but you’ll have them for years to come, so it may be worth the investment.

Bulk Grocery Shopping: You may not agree with prices when it comes to bulk grocery shopping at places like Costco, but there are lots of deals to be had. As a grocery expert we shop started shopping at Costco a couple of years back and do not regret the decision. Buying products in bulk from Costco reduces the amount of packaging that you bring into your home plus you can still use coupon apps and credit card rewards for added savings to your grocery budget.

Shopping at places like Bulk Barn is another great option because they allow you to bring in your own reusable containers instead of having to take more from the shop. They often have specials and coupons that will help to reduce your budget costs even further. Buying your spices in bulk is far better because you have the option to buy as much or little as you want, thus wasting less.

The Bottom Line

This is where I say ‘do what works for your family and lifestyle’ but you should also consider the impact to our environment now and for the future of our children. Every little bit of reducing household waste is a part each of us owes to the world we live in. It’s a beautiful place so let’s keep it that way!

~ Adapted from Canadian Budget Binder

May 1, 2020
Before Spending Your Emergency Fund, Ask Yourself These Questions

We get so used to thinking of our emergency fund as cash we shouldn’t touch. It can feel wrong to actually spend that money. But the financial situation that’s cropped up as a result of the COVID-19 pandemic makes now a perfectly legit time to tap into your reserves. Honestly.

Your individual circumstance, however, may leave you questioning whether it’s really okay to be spending your emergency fund. Maybe you have a spouse who is still working or enough money in the bank to stretch a few weeks longer.

Here are four questions to ask before spending your emergency cash:

Is this expense a need?
This is a pretty obvious question but one that’s vital to consider. When you use your emergency fund to replace lost income, you can’t spend like you used to. Ask yourself: Is this expense necessary for my survival? If not, it’s not worth draining your rainy-day fund for. That may mean pausing your cable service or taking a break from tithing so you can eat, stay healthy and keep a roof over your head.

Are there resources to help with this expense?
In response to this financial crisis, various organizations and companies are providing assistance to those in need. Banks are waiving overdraft fees and adjusting payment plans on loans. Many credit card and mortgage companies are letting customers defer payments. Food banks are trying to distribute more food. Utility companies are vowing not to shut off service for those who can’t pay. Any assistance you’re able to get will help stretch the money in your emergency fund.

Do I have cash outside of my emergency fund?
Before you start spending your emergency fund, look at other money you can use first. If you have money saved up for a summer vacation or holiday gifts, use that cash. If you have more money than usual left in your checking account because social distancing eliminated your entertainment spending, spend that. Hold off on using your emergency fund until you’ve exhausted other viable options. Avoid pulling money from your retirement accounts.

Can I get what I need for less money?
Your emergency fund will only stretch so far. Be smart about what you spend by looking for cheaper alternatives. Buy store-brand products instead of name-brand to save money on groceries or shop at a store that offers lower prices. Even if those aren’t your normal habits, think of them as a temporary belt-tightening. Reduce your utility usage to help lower your bills.

April 1, 2020
5 Reasons to Open an RRSP

A Registered Retirement Savings Plan (RRSP) is an account, registered with the federal government, that you use to save for retirement. There are a number of benefits to saving in an RRSP.

1. Contributions are tax deductible.
You claim your RRSP contribution as a deduction on your tax return. For example, if you’re in the top tax bracket in Ontario, every $1,000 you contribute reduces the tax you pay by approximately $535. And if your income is lower in a year, you can carry forward the deduction for your contribution to a future year when your income may be higher. That way, your tax savings are greater when you’re in a higher tax bracket.

2. Savings grow tax free.
You won’t pay any tax on investment earnings as long as they stay in your RRSP. This tax-free compounding allows your savings to grow faster.

3. You can convert your RRSP to get regular payments when you retire.
You can transfer your RRSP savings tax free into a RRIF or an annuity when you retire. You’ll pay tax on the regular payments you receive each year — but if you’re in a lower tax bracket in retirement, you’ll pay less tax. Make sure your RRSP fits into your overall financial and retirement plan.

4. A spousal RRSP can reduce your combined tax burden.
If you earn more money than your spouse, you can help build their tax-free savings by contributing to a spousal RRSP. Retirement income will then be split more equally between the two of you — which may reduce the total amount of tax you pay.

5. You can borrow from your RRSP to buy your first home or pay for your education.
You can take out up to $25,000 for a down payment for your first home under the Home Buyers’ Plan (HBP). You can also take out up to $20,000 to pay education costs for you or your spouse under the Lifelong Learning Plan (LLP). You won’t pay any tax on these withdrawals as long as you pay the money back within the specified time periods.

February 1, 2020
New Year, New Financial Goals

[vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″ shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_link_target=”_self” column_shadow=”none” column_border_radius=”none” width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][vc_column_text]The start of a new year is the perfect time to reflect on what you want to improve in your life and to create plans to make it happen. There is a good chance that you’re already thinking about resolutions like going to the gym more, eating healthier and volunteering with local organizations.

But what about financial resolutions? The beginning of the year offers the opportunity to focus on what’s going on with your money. With the right plan in place, you can stick to your financial resolutions and end the coming year in a better place than you started it.[/vc_column_text][/vc_column][/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″ shape_divider_position=”bottom” bg_image_animation=”none” shape_type=””][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_link_target=”_self” column_shadow=”none” column_border_radius=”none” width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][nectar_icon_list animate=”true” color=”default” direction=”vertical” icon_size=”small” icon_style=”border”][nectar_icon_list_item icon_type=”numerical” title=”List Item” id=”1579034774653-5″ tab_id=”1579034774654-4″ header=”Save More Money” text=”Not surprisingly, the top financial resolution is to save more money. There are nearly countless ways to go about this — you can increase your RRSP contributions, set up automatic transfers to a high-yield savings account and cut back on unnecessary spending. You can also use a credit card to your advantage. Many of the best credit cards offer competitive rewards and statement credits that can earn you cash back, points or miles that can be used to offset purchases.”] [/nectar_icon_list_item][nectar_icon_list_item icon_type=”numerical” title=”List Item” id=”1579034774701-7″ tab_id=”1579034774702-2″ header=”Improve Your Credit Score” text=”If you have a less than stellar credit (scores below 650), make it a priority to raise this year. You can improve your credit score in several ways, including paying your bills on time and in full (which may include setting up autopay), paying off debt, limiting how many new accounts you open and cutting back on spending. It’s important to regularly check your credit report so you can spot fraud early and ensure the correct information is reported to the credit bureaus (Experian, Equifax and TransUnion).”] [/nectar_icon_list_item][nectar_icon_list_item icon_type=”numerical” title=”List Item” id=”1579034774729-8″ tab_id=”1579034774730-5″ header=”Create a Personal Budget” text=”For some, a budget can feel constricting, but tracking your spending can be a useful tool to help you understand where your money goes each month. A clear budget can help you set guidelines for what you can afford to spend and help you identify areas where you could cut back. Start by writing down all your fixed expenses, such as rent/mortgage, cell phone, groceries and savings. Then you can see how much money you have leftover for flexible expenses, such as restaurants, clothing and entertainment costs. Looking at your credit card statement can be an easy way to see all your purchases in one place.”][/nectar_icon_list_item][nectar_icon_list_item icon_type=”numerical” title=”List Item” id=”1579034774759-5″ tab_id=”1579034774760-9″ header=”Pay Off Credit Card Debt” text=”If you’re struggling with credit card debt, you’re not alone. In fact, about 61% of Canadians have a credit card and cardholders carry an average balance of $6,194, according to Experian. So, it’s not surprising that so many people are looking to pay off credit card debt in the new year. If you have credit card debt, consider consolidating it on a balance transfer credit card, which offer no interest for up to 21 months. Consumers who can pay down debt on their own ought to consider payoff methods like paying off your highest debt first (called the debt avalanche method) or paying off your smallest amount of debt first (debt snowball method).”][/nectar_icon_list_item][nectar_icon_list_item icon_type=”numerical” title=”List Item” id=”1579034774781-9″ tab_id=”1579034774781-5″ header=”Start an Emergency Savings Fund” text=”Nearly four in ten Canadian adults have no emergency savings. If you’re one of those people, now is a good time to set a goal to build your emergency fund. With an emergency fund available, you will reduce the risk of going into debt trying to cover unforeseen expenses, like a flat tire or medical bill. Consider setting up automatic transfers to a savings account. With this strategy, the money is ‘out of sight, out of mind’, reducing the chance that you will be tempted to spend it. Even having as little as $500 to $1,000 saved can keep a family from falling on hard times, according to an Urban Institute study. So, don’t feel like you need to have three-to-six months’ worth of expenses saved immediately. Start small and keep adding to your emergency fund throughout the year.”][/nectar_icon_list_item][nectar_icon_list_item icon_type=”numerical” title=”List Item” id=”1579034774811-8″ tab_id=”1579034774812-4″ header=”Boost Your Retirement Savings” text=”Saving for retirement is one of the most important aspects of preparing for a sound future. Many Canadians worry that they may never retire, so it makes sense to consider your own retirement prospects in the coming year. Consider opening an RRSP account and make automatic weekly or monthly contributions. Much like starting an emergency savings fund, you may not notice a small amount missing from your weekly pay cheque, but it will add up over time and provide you with some peace of mind in the future.”][/nectar_icon_list_item][nectar_icon_list_item icon_type=”numerical” title=”List Item” id=”1579034774842-9″ tab_id=”1579034774842-6″ header=”Cook More at Home” text=”You might be surprised at how much you spend on eating out each week. Once you add that expense up, you might decide that it makes more sense to cook at home. Cooking at home is cheaper, healthier and it builds a useful skill that everyone should have. Consider putting those savings toward paying down debt or building up your emergency savings fund.”][/nectar_icon_list_item][nectar_icon_list_item icon_type=”numerical” title=”List Item” id=”1579034774862-10″ tab_id=”1579034774863-5″ header=”Boost Your Income” text=”Sometimes, it’s less about savings and cutting back and more about increasing your income. There’s no substitute for making more money. Consider looking for ways to start a side hustle, get a promotion, or even look for a better job. You might need to update a certification to qualify for a higher pay or advancement, but that could be worth the cost if it comes with a pay hike. Find different ways to increase your revenue streams so you aren’t entirely dependent on one income source. Not only can that strategy help you make more money, increase your savings and reach your goals, it can also provide some protection if you lose your primary job.”][/nectar_icon_list_item][/nectar_icon_list][/vc_column][/vc_row][vc_row type=”in_container” full_screen_row_position=”middle” scene_position=”center” text_color=”dark” text_align=”left” overlay_strength=”0.3″ shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_position=”all” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_link_target=”_self” column_shadow=”none” column_border_radius=”none” width=”1/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” column_border_width=”none” column_border_style=”solid” bg_image_animation=”none”][vc_column_text]Bottom line: think about what you want from life in the coming year (and in the future) and set resolutions that can help you make the most of your financial resources. Remember that these goals are designed to help you live your life better, however, don’t forget to spend some time enjoying the here and now as well.[/vc_column_text][/vc_column][/vc_row]

January 13, 2020
Why These Homeowners Needed a Private Mortgage
Most of us don’t give much thought to private mortgages. We are vaguely aware they exist, but perhaps have the impression they are mortgage solutions for financial derelicts, but that is not true. Often, they are needed when bad things happen to good people.

Private mortgages and B-lender mortgages are the fastest-growing segment of the Canadian mortgage industry. One reason is because it’s much harder to qualify for an A-lender mortgage now than at any time in recent memory. High home prices, in major cities particularly, result in large mortgage requirements, and the mortgage stress test can put qualification out of reach for homeowners who previously had no such concerns.

In addition, there are several situations people find themselves in which are not attractive to regular mortgage lenders. These problems require solutions, but a different type of lender needs to step forward and help the homeowner get on track. Let’s look at three such situations.
- This homeowner has too many debts, and his credit score is low. Notwithstanding lots of equity in his home, the banks have said no.
- These homeowners are in the middle of a consumer proposal. The doors to the banks are firmly closed, yet they need to finance a car purchase, and they would like to improve their monthly cash flow.
- This homeowner has large CRA debt. Banks and other A-lenders do not like refinancing to pay off CRA debt.
1) Too Much Debt and Credit Score Too Low
This person has been living proud and mortgage-free for several years, but meanwhile has racked up credit card debt that just won’t go away. At first, people believe they can manage it, but the crippling high interest rates of 19.99% or more makes it difficult. And when the cycle starts, they tap into other available credit to pay off the credit cards that are giving them a problem. He has a nice town home with no mortgage, but $115,000 of unsecured debt and a credit score of 557. The minimum monthly payment on the credit card debt was not much less than his take home pay from his job.

The Solution
We could see his credit score would zoom upwards once all the debts were cleared and no remaining balances. A private lender would be happy to lend a new first mortgage on very favourable terms. An annual mortgage interest rate of 5.99%, and a mortgage fully open after three months. This means as soon as he is ready, he can refinance to an A-lender without penalty. And when that happens, all the ugly credit card debt will be scrunched up into a mortgage at roughly 3% interest, with a monthly payment of around $500. This is a game-changer compared to the $3,000 per month or so he was paying before.

2) A Consumer Proposal
These homeowners both have decent jobs and more than $200,000 equity in their home. Three years ago, they both had to file a consumer proposal after a new business venture failed and left them with lots of consumer debt.

They reached out for three reasons:
1. Their bank, which holds their first mortgage, has told them they will not offer a renewal in late 2020.
2. Their car lease is expiring in January 2020, and they want to exercise the buy-out option. They are being quoted high interest rates on a car loan.
3. They are finding it tough, paying $1,300 each month towards the proposals, on top of their car payment, mortgage, taxes and utilities.
The Solution
The solution here is a one-year, private second mortgage for around $60,000. Interest-only payments at a rate of 12%, and the monthly payment is only $600, which is half of what they are paying now on their consumer proposal.

This small new mortgage will pay off their proposal completely and allow them to buy the car when it comes off lease. After their proposal is paid off, they can rebuild their personal credit histories. In late 2020, when their first mortgage matures, they won’t have to worry about the renewal. They can refinance both mortgages into one new mortgage with a different lender.

3) CRA Debt Problem
This homeowner only owes $70,000 on his first mortgage, but he had neglected filing corporate taxes for a few years, and now owes CRA a significant amount of money. There was a judgment against him for $49,000, which had been registered as a lien against the family home. And another one looming for $133,000. He had also accumulated a large amount of unsecured debt. If you are self-employed and owe a lot of money to CRA, your borrowing options are very slim in the world of conventional mortgage lenders. Occasionally, homeowners have tax debt that is so large it cannot be readily paid. The result is a debt that can’t be negotiated away, with a creditor you can’t afford to ignore.

The Solution
The solution was either going to be a very large, disproportionate private second mortgage at a high interest rate (close to 12%) or to refinance the small first mortgage to a new private first mortgage at only 6.99%.

He decided to take the first mortgage approach; paid off the CRA liens and all other personal debts. As a bonus, the lender allowed him to partially pre-pay the mortgage payments in advance, so that the monthly payment for the new mortgage would be roughly what it will be when they refinance down the road – avoiding payment shock. He contacted Equifax Canada to confirm the tax liens had been cleared and waited for his credit score to climb, unencumbered by a high debt load. Sure enough, it all came to pass, and now he is refinancing the private mortgage into an A-lender, only six months later.

These are three scenarios why a person may need a private mortgage, there are many other reasons. It is important to remember that a private mortgage is a short-term solution to get you out of a tough financial situation. It does not mean that you’ll be black-listed in the world of mortgages.
December 5, 2019
The 10 Best Ways to Save Money on Holiday Shopping
Christmas is right around the corner, and you had better be prepared. Making sure that you have what you need for everyone on your list can be a challenge — and it can also be expensive. If you want to avoid breaking the bank this holiday season, here are 10 tips to help you save money on Christmas shopping:
1. Stick to a Budget
  First off, set a budget and stick to it. Figure out how much you have to spend on your Christmas shopping. Then, make a list of those you need to buy for. If you have a list of what you want to get each person, it will save you time and keep your spending on track.
1. Buy Inexpensive Stocking Stuffers
  Don’t go overboard on stocking stuffers. It’s tempting to buy every little gadget available, but you need to watch out. You might not be keeping track of the little things you buy, and they can add up. This is a great chance to be frugal by shopping for little gifts at the dollar store and including some candies, nuts and mandarin oranges.
1. Set Up a Gift Exchange
  You can cut down on shopping for extended family by setting up a gift exchange. As your siblings grow up, get married and have children, your Christmas shopping list gets longer. It can get out of hand unless you change the way you do things. Draw names and each person will only buy for the one person whose name they drew. Everyone gets a gift and you all save possibly hundreds of dollars. It’s a winning situation and can be a lot of fun.
1. Shop the Early Sales
  One of the best things you can do when it comes to the way you save money on Christmas shopping is to look for sales. Shop early if a decent sale comes along. Not only will this save you money, but it can save you the hassle of crowds as Christmas gets closer.
1. Shop Online
  Once December gets advanced enough, the traffic and the crowds become unbearable. Another way to avoid crowds and save money is to shop online. You can often find products cheaper than you do in the store, and you don’t have to battle with others. However, you do need to keep an eye on shipping costs to ensure you really are getting a deal. Check for promo codes and sites that offer free shipping on holiday purchases.
1. Save on Shipping by Ordering Early
  To save money on shipping, shop soon to give you time to use many sites’ free shipping options. The closer to Christmas, the more you’ll need to pay for priority or express shipping. This is also the case when you are sending presents to friends and family. If you must pay for express or overnight shipping to get your gifts on time, you’ll pay so much more money.
1. Stay Away from Extended Warranties
  During the holiday shopping frenzy, it’s hard to make decisions, and easy to say yes to whatever someone suggests. However, you need to be on your toes at check-out if you want to save money. Avoid extended warranties on your purchases. If an item is defective, it’s likely to have issues within the standard warranty’s time frame. Don’t spend extra money for coverage you probably won’t need.
1. Buy Discounted Gift Cards
  There are plenty of places to buy discounted gift cards. If you aren’t sure what to get, look for an experience. Discounted gift cards can provide you with a face value that exceeds what you actually pay. This can be a way to look like a hero and save money.
1. Consider a Bonus Gift Card from a Restaurant
  Want to save money on your own dining experience? Some restaurants have been enticing people to buy gift cards by including a bonus gift card. You might not save money on your immediate Christmas purchase, but you can save money on a future meal. That can be worthwhile. Additionally, you might be able to use the bonus card as a white elephant gift or a stocking stuffer. While this can be a great deal, check out the bonus card as it may have an expiry date.
1. Keep the Gift Receipts
  Finally, make sure that you keep all your receipts in a safe place since items may be broken or clothes might not fit. While some stores will accept returns without a receipt, it will be at whatever their lowest price has been on that item, so you might not get full value for it. You will also need your receipt if you want to make a claim using your credit card. Many credit cards offer extended warranties and protection against theft or returns. If the store won’t take it back, you might be able to get money through your credit card perks — but you’ll need the receipt.
With the right planning and a little savvy, you can save money on Christmas shopping every year and get the right gift for each person on your list.
November 15, 2019
The TFSA Limit is Being Raised

It’s official, the TFSA dollar limit will be increasing to $6,000 in 2019. TFSA’s have been extremely popular among millions of Canadians, many of whom will welcome the upcoming ability to sock away extra funds in their TFSA’s come 2019.

The TFSA was first introduced in the 2008 federal budget and became available to Canadians for the 2009 calendar year. The initial TFSA dollar limit of $5,000 had risen to $5,500 for the past few years. Under the tax rules, starting in 2016 and for each subsequent year, the annual TFSA dollar limit was fixed at $5,000, indexed to inflation for each year after 2009, and rounded to the nearest $500 to make the annual limits easy to remember.

Each fall, the Canada Revenue Agency announces the indexation increase for the following calendar year. The “indexation factor” for 2019 was calculated by taking the percentage change in the average monthly Consumer Price Index (CPI) data as reported by Statistics Canada for the 12-month period ended September 30, 2018 relative to the average CPI for the 12-month period ended on September 30, 2017.

This week, the CRA announced the 2019 inflation factor to be 2.2%, which is the rate used to increase the federal tax brackets from 2018 to 2019 and most federal credits. Combined with prior years’ inflation, it was enough to push the TFSA dollar limit for 2019 to the next $500 which is why it will hit $6,000 for 2019.

Unused contribution room can be carried forward to future years such that the cumulative limit for someone who has never contributed can be as high as $57,500 today. In other words, if you were at least 18 years of age in 2009 and resident of Canada throughout that period and have never opened a TFSA before, you could contribute the entire $57,500 to your TFSA today. In honour of the TFSA’s upcoming tenth year anniversary, let me share with you three reasons why Canadians have embraced their TFSA’s.

It’s really, truly tax-free.

While you contribute to a TFSA with after-tax dollars, once the funds have been contributed, they grow tax-free, for life. In other words, all income and gains, whether realized or unrealized, will never be taxed while in the plan and the TFSA funds may be withdrawn tax-free, at any time, for any reason.

And because TFSA withdrawals aren’t considered to be income, they don’t negatively impact income-tested benefits and credits, like the Guaranteed Income Supplement, Old Age Security payments or the age credit. Even upon death, the entire fair market value of your TFSA can be received by your estate tax-free. And if you name a successor holder or beneficiary on your TFSA, the assets can flow directly to the named successor holder or beneficiary without going through the estate, which could mean potential savings on provincial probate fees or estate administration taxes.

If you name a successor holder, who can only be your spouse or partner, the TFSA will continue to grow tax-free and your surviving spouse or partner steps into your shoes and becomes the new TFSA holder. Alternatively, if your spouse is the beneficiary of your TFSA, she can transfer the entire FMV of the TFSA upon your death to their own TFSA without using any of their own TFSA contribution room, thus prolonging the tax-free income and growth in the plan.

You can contribute at any age.

To contribute to an RRSP, you must be 71 years of age or younger and you must have ‘earned income’. Contrast that with the TFSA in which there is no age limit and no earned income requirement. One popular strategy that has emerged is for seniors, who are required to withdraw a prescribed minimum amount annually from their RRIF at age 72, to re-contribute any after-tax withdrawals not needed to fund living expenses back into a TFSA for tax-free retirement accumulation.

You can re-contribute your withdrawals.

Finally, keep in mind that any amounts withdrawn from your TFSA can be re-contributed, beginning the following calendar year, without using up TFSA room. This is something you can’t generally do with an RRSP as you must have available contribution room, based on earned income, to re-contribute amounts withdrawn.

October 1, 2019
Before You Make a Budget
You’re ready to start a budget — awesome! You’re probably feeling excited and ready to get your money in order. But here’s the thing: It’s super easy to give up on budgets. They can get complicated and require some maintenance. So before creating your budget, take these simple steps to set yourself up for success:

1. Track Your Spending

Sometimes it feels like each paycheck disappears into thin air. The money lands in your account, you revel in your balance for one day, then you pay your monthly bills and it’s gone!

That’s why it’s so important to track your spending. Before you even start a budget, you’ll want to get a clear idea of where all your money is going each month. There are plenty of ways to do this: good old-fashioned check book balancing, pen and paper or checking your accounts each day. Get yourself used to keeping tabs on your spending by using an app like Mint.com. This will help you better understand what your fixed expenses are each month and where you might be overspending.

2. Set Yourself a Few Fun Goals

Because budgeting can quickly become a dreaded chore, you’ll want to set yourself a few goals to keep you encouraged. No, these don’t all have to be boring financial goals, like paying off student loans or starting an emergency savings. Although those are great, work at a fun goal, like a road trip or cruise. Then, hold yourself accountable by setting up a separate savings accounts and have money automatically come out of your chequing account. You probably won’t even miss that small amount each week, but over time, it will contribute to your goal.

3. Bundle Your Debt Into One Bill

One of the trickiest parts about budgeting is keeping tabs on all your monthly payments, especially if you have debt. Rather than making four different credit card payments each month and logging them in your budget, make life easier for yourself by combining them under one umbrella. It will be much easier to budget with one, easy-to-manage monthly payment.

4. Find Easy Ways to Cut Back Big Bills

Building a budget will force you to take a good hard look at your monthly expenses. Ask yourself: Am I paying too much for any of these non-negotiables? The answer: Probably. Start with a bill that’s super easy to cut — car insurance. Yeah, there’s no getting around it, unfortunately. But to get the best deal, you’ll want to compare rates twice a year. Sometimes you get complacent paying your bills, but there’s usually ways to save or haggle for a lower price. Cable/internet is another good example, if you call, chances are there’s some kind of promo they can offer.

5. Pick Your Go-To Budgeting Method

Yes, there are budgeting methods — plural — but before you panic, we recommend using the 50/20/30 budgeting method for its simplicity.

Here’s how it works:
- 50% of your income goes toward essentials
- 20% goes toward financial goals
- 30% goes toward personal spending
Of course, you’ll want to play around with this, but keeping these base-line percentages in mind will help you figure out how to allot your money for the month.
September 3, 2019
Thinking of Buying Your First Home?

Contribute to your RRSP so you can borrow tax-free!

If you’re planning to buy your first home anytime soon, you may be able to take advantage of a helpful federal government program. This enables you to withdraw money you’ve already contributed to your registered retirement savings plan (RRSP) and use it towards anything related to your home purchase, including your down payment, closing costs or real estate fees. The key is that the funds must be in your account at least 90 days before you can withdraw them under the Home Buyers’ Plan (HBP). You can withdraw up to $25,000 ($50,000 per couple) from your RRSPs tax- and interest-free to buy or build a qualifying home for yourself or a related person with a disability.

If you don’t have money set aside for your RRSP, don’t worry, because you can get a loan from your bank in order to make your contributions. You can contribute up to $26,930 or 18% of your annual salary… and, you can also top up going back to the first year of your working career. You may have noticed these details on the bottom of your notice of assessment (NOA) each year.

The only exception to the first-time buyer requirement where you can take advantage of the HBP is if you have a disability or you’re helping a related person with a disability buy or build a home. You must be able to prove that the new home is a better fit for the needs of the disabled person than his/her current home. You’re considered a first-time homebuyer if you didn’t occupy a home that you or your current spouse or common-law partner owned in the past four years.

The HBP requires you to repay all withdrawals to your RRSP within 15 years. You’ll have to repay 1/15^th to your RRSP each year until your HBP balance is zero. If you don’t repay the amount due for a year, it must then be included in your income for that year. Repayments don’t affect your RRSP deduction limit. You can still contribute to your RRSP and designate that amount as a repayment under the HBP, even if your RRSP deduction limit is zero.

February 1, 2019
6 Simple Rules of Decluttering
When it comes to getting more organized, one of the key elements must be decluttering your life, home, and activity schedule. However, the very idea of getting rid of personal possessions strikes fear into the hearts of many. Do you feel this way? As with any other process, it often helps to have some basic, simple to follow rules in place. Consider these six rules of decluttering to help you take steps toward living a clutter-free life.
1. Bring Less Home
This is the most important rule to set before you even begin to purge items. You need to determine and make a sincere effort to bring less stuff into your home. There’s no point in putting forth the effort to declutter if you undo all your progress by buying more stuff. Setting a mindset to shop with intention is the first step to clearing out the clutter for good. Remember, is this item you are about to purchase a need, or is it just a want?
1. Document Your Nostalgia
Nostalgia and memories are powerful emotions that can lead you to hold onto clutter. An effective compromise is to digitize your prized possessions. You can scan the images of things like certificates or kids’ artwork into your computer and organize them into folders. For three-dimensional pieces like trophies or prom dresses, take a photo of the item to add to your digital keepsakes. Often, it’s the memory of the event attached to the item that holds the greatest nostalgia, not necessarily the physical item itself.
1. Start Small & Simple
One way to gain momentum in the declutter process is to start with the easy things. Begin boxing up items that don’t hold much emotional attachment. Doing so will lead to a sense of instant accomplishment and provide motivation for you to keep going. Especially when the decision-making becomes tougher later. This will be the motivation for cleaning the tougher areas of your home. Start with doing a 15-minute session, as you clean an area, make your 3 piles: keep, give away or sell, garbage. As you declutter, you can also ask yourself “why” you have kept this or that. This will help you in the future when you are tempted to bring other things home. Remember the clutter didn’t appear overnight—so don’t beat yourself up over reversing the process.
1. Lose the Duplicates
Another relatively easy decluttering task involves getting rid of unnecessary duplicate items. So, take a moment to go through your home and gather up all your duplicate articles of clothing, dish sets and books. Then sort through them, keeping only your favorite colored piece or the one that is in the best condition. You will free up space very quickly this way. Remember, you don’t need to be a squirrel keeping piles of things everywhere.
1. Ditch the Guilt
An empowering decluttering strategy is to get rid of things you’ve been holding onto out of guilt. It doesn’t matter how much you paid for that stylish coat if it’s not being used, and unwanted gifts are something else you should part with immediately. The decision of whether to keep them is yours, so holding onto these items out of guilt is just weighing you down.
1. Put Things in Their Place
Another way to bring organization and order to your home is to make sure all your possessions have a designated place. Once they have an assigned place, remember to always return them there. Knowing where stuff belongs makes it easier to keep everything tidy and lowers the chance of clutter becoming a recurring problem.

These 6 rules aren’t the definitive last word on clearing out the clutter in your life and home. They also won’t remove all the difficulties from the process as you learn to part with items. Hopefully, though, they will serve as guidelines to help you begin your own decluttering journey.
January 7, 2019