Credit-Free Christmas in 5 Steps!.

General Steve Marshall 20 Dec

The holidays are a beautiful time of year, filled with sparkling lights and delicious meals and overplayed tunes.

As much as these celebrations bring us joy and harmony, they can also bring us stress. This is particularly true when it comes to your finances! This year, aim for a credit-free Christmas! With a little planning, there are a few ways you can make sure your holidays are stress and credit-free.

MANAGE YOUR EXPECTATIONS

Do you remember how last year made you feel? Were your holidays refreshing? Or did you find them draining and you are still trying to figure out how to pay off your bills? In fact, most of us want holidays to be energizing and provide a feeling of togetherness, which comes down to more than just spending money. Deciding your expectations for the holidays, makes it easier to work towards things that create that result – and avoid things that don’t! 

WHAT ARE YOUR GOALS?

What is your goal for the holiday? Are you looking to plan an extravagant black-tie party or more of a low-key celebration? Maybe you just want to hang out with lots of family and friends (and food!)? Or perhaps you would like to get away for the holidays? Share your thoughts with your family and make a decision that works for everyone. Talking about the holidays ahead of time puts everyone on the same page with no surprises.

CREDIT-FREE CHRISTMAS WITH A BUDGET 

Once you have decided what your expectations and goals for the holiday, create a budget that works for you. Take a look at your monthly budget and determine what you have available. Whether you put money aside each month to tackle your list, or pick up a few items per paycheck, a little planning can go a long way to creating a credit-free Christmas! After you create your budget, you will want a list of everything you need. Not just individual gifts! Also make sure to take stock of any decorations, baking or food items, clothing or event tickets that you may need to invest in. 

YOUR CREDIT-FREE CHRISTMAS STARTS NOW!

As someone who grew up with a mom who started holiday shopping in June, I know a good budget and early planning makes a difference. Instead of lumping your entire holiday budget into a couple paychecks, try shopping for gifts and cute decor all year long. Not only will this help you feel more organized, but it can help you manage your budget as well. Planning ahead and giving yourself more time allows you to scoop up incredible deals throughout the year (cue seasonal clearance sales) which means you can spread your budget even farther – without going over! 

DON’T FEAR HELP

credit-free Christmas

The holidays are a time where we are supposed to share experiences and support each other. If you are hosting a big holiday dinner this year, don’t be afraid to ask your family to bring appies or drinks. If you are buying gifts for friends, set a limit or challenge everyone to make something by hand! Homemade gifts can often feel more special and it creates a fun exchange for you and your friends. There are many incredible ways to reduce stress and help get others involved so that the holiday is perfect for everyone.

BEYOND THE SPENDING

It is easy to get caught up in the consumerism and expectations of the holidays. Is dinner perfect? Did you buy enough gifts? Did you invite everyone? Is everyone happy? But don’t forget yourself in your efforts to please others. 

Even though the holidays can feel hectic, it is important to celebrate YOU and be grateful for what you have – even if you weren’t able to check off all the boxes. Life happens, but the most important thing is that we live it while we can. This is also helpful for children as I am sure most of us would prefer our kids grew up grateful and happy, instead of in-debt and stressed due to preconceived notions of what holidays should be.

Your holiday is just that – YOURS. Spend it whichever way brings you the most joy and the least amount of stress on your pocketbook.

5 Expenses Most Canadians Don’t Expect in Retirement.

General Steve Marshall 30 Nov

According to a recent CIBC poll, nearly half (48%) of retired Canadians stopped working sooner than they expected. The result is that many retirees have saved less for retirement than they planned, making unexpected expenses all the more stressful once the income tap has run dry.

But you know what they say, preparation is the best protection against the unexpected. And with that in mind, here are some unexpected expenses that many retired Canadians experience that you might want to plan for.

Home maintenance and upgrades

Just like with our own bodies, homes require ongoing care and have unexpected breakdowns. That’s why it’s important to do regular check-ups and budget for the unexpected, as well as the expected.

Whether it’s replacing the roof, furnace, or appliances, or upgrading your home to be more accessible as you age, it’s important to plan ahead for how you will cover the costs of keeping the home you love safe, beautiful, and suited to your needs. Luckily, there are options like the CHIP Reverse Mortgage that can provide the funds to help you take care of your home without making monthly payments or affecting your OAS or CPP.

Personal and family emergencies

It’s sad to say, but most people at some point in their lives will have to deal with a sudden emergency. Whether it is needing to travel to see a family member who has had an accident or become ill, or people you love who may need some financial assistance during a trying time. The costs of dealing with such an emergency can be as draining on your finances as they are on your emotions.

Many financial institutions and advisors recommend setting up an emergency fund with 3-6 months salary. Of course, this means you would need to plan ahead and set up the fund before retiring and adding to it when possible in retirement. You can use the emergency fund calculator from Practical Money Skills Canada if you need to get started.

Frauds and scams

Between January 2014 and December 2017, Canadians lost more than $405 million to fraudsters. What’s more, these criminals largely target elderly citizens, with $94 million of that sum coming from Canadians aged 60 to 79. And with the growth of the digital age since then, there are now more opportunities for fraudsters than ever before.  

No one expects to get scammed, but many retirees experience significant financial hardship due to fraudulent crimes. To help you avoid, detect, and report fraud, HomeEquity Bank has recently launched Catch the Scam, a series of online classes led by Frank Abagnale, the former conman whose life inspired the Leonardo DiCaprio film Catch Me If You Can. Frank now works as a consultant with organizations including the FBI to help tackle fraud, forgery, and embezzlement. Watch Frank’s Catch the Scam video series to see how you can avoid Canada’s most common scams.

Living longer than expected

While a long life is truly a blessing and something to celebrate, Canadians are living longer than they ever have. One result of this is that some of the financial advice being given today may not account for the realities of tomorrow. Of course, any retirement plan needs to begin with when you plan to retire, and end with how long you can realistically expect to stay retired.

Many Canadians are realizing that they will live longer and experience higher health costs toward the end of their lives. In order to be fully prepared, it’s important to over-plan to ensure you are fully covered for the (extra) long term.

Investment losses

While everyone understands that investments have a cycle with peaks and valleys, toward retirement most people tend to shift towards safer assets such as government bonds and Guaranteed Income Certificates (GICs) – but there is always a level of risk for any investment. Make sure your investments align with the risk you’re willing to tolerate, and that you have a way to get extra funds if needed. For instance, a reverse mortgage is an ideal option for many 55+ Canadians, since it’s tax-free, unlocks up to 55% of their home equity, and requires no monthly mortgage payments.

Contact your DLC Mortgage Broker to find out more about how the CHIP Reverse Mortgage can help you prepare for the unexpected in retirement.

Author: Agostino Tuzi
Post Sponsored by HomeEquity Bank