Archives for December2012

Minimize Expenses With Essential Grocery Shopping

The weekly trip to the grocery store is a good litmus test for determining one’s budget and surplus. People will usually shop for groceries up to a certain limit, and even during times of self- indulgence, rarely will they spend more than 20 or 30 dollars over their budget. There are of course small ways by which people can save up a dollar here and there when going out shopping.

The grocery list is a good place to start. As with anything in life, if it’s not written down, it’s probably not that important. A grocery list helps people stick to their budget, and makes the shopping experience more efficient as there’s a clear goal for the shopper to see.

Some families purchase a particular item or brand every week. There are times when these can be purchased on sale or at wholesale prices, cutting down expenses in the long run. Coupons can also give amazing discounts when used regularly.

Food items such as vegetables are best purchased frozen as they can be stocked for longer periods. For fresh food items such as fruits, these are cheapest and more nutritious when they are in season.

At home, remember to store all of these items efficiently. The worst way to spend money is to buy items that only spoil because of neglect. Thus, only purchase items when they are absolutely needed.

Grocery Bill: How to Keep it Under Control

 

Want to reduce your grocery bill, but finding it challenging to bring it under control? Let me share a few simple but effective tips with you.

First and foremost, prepare a list of grocery items that you would require for one week. The list should cater to five meals consisting of different food items such as salad, vegetables, rice, fish and meat. Here you might also include the food that you want to take to your work. The variety in the food items provides you with a balanced diet and prevents your extra spending from eating outside food. The meal plan and the list hold the key to the majority of your saving, so take time to prepare them with thought and care.

Visit the grocery shop on Sunday or Monday every week with this list in hand. Avoid visiting the store when you are hungry, too filled up or emotionally unrest. Better still, try to shop online. This helps you substantially by preventing unnecessary purchase happening through temptation.

Always check the expiry date of the item you purchase. The expiry date should always be after the date you intend to use the item. In this way, you can save money which goes waste when we discard the unusable food items.

Purchase containers of different sizes and label them to store extra food items for later use. Sometimes you can cook food in large quantities and store it in these containers for consumption on another day, thus saving both cooking time and fuel.

 

How Mortgage Length Affects Annual Payments

 

Over the past few months, changes in residential mortgage terms are affecting how ordinary homeowners pay for their own home loans. The most recent change is with regards to the length of an average mortgage. Previously, a typical home loan would cover a period of 35 years. Today, it has now been reduced to 30 years. While five years doesn’t seem that long, it can increase a homeowner’s monthly payments by as much as $100 per month.

This increase isn’t such a big concern, especially for those who are already living within their means, but it might be hard for households who are already living on a budget. For those haven’t yet put down their first payment on their new home, they have the option of borrowing from their Registered Retirement Savings Plan. As of now, the limit is $25, 000 from each spouse. This means that the total possible down payment for those who qualify with their RRSP is $50, 000.

Couples who have a Tax- Free Savings Account are also able to take up to $15, 000 in contribution amounts. This can be doubled if both spouses are co- signatories. For those who already have their mortgage going, many banks and cooperatives can offer advice to these homeowners on how it will affect their bottom line. Some of these institutions will even offer some form of debt restructuring if the homeowner is unable to cope with the new change. The new mortgage term will therefore not be as detrimental as some people make out to be.

 

Improving One’s Portfolio Without Financial Advisors

 

Building up a financial portfolio isn’t easy, which is why many banks and financial institutions have created financial advising positions to help their clients with their money. In today’s digital age however, building a good portfolio is possible without resorting to these advisors.

The idea of engaging a personal portfolio without expert advice might seem backwards, but it can be more rewarding because most financial advisors stick to the middle path; invest in less risky ventures with little returns. They also advocate the buy and hold strategy which might not be aggressive enough for most people.

This isn’t to say that an ordinary investor should let go of his advisor immediately. It can take several months or even years before he can become confident enough to tackle his finances on his own. In the meantime, he should schedule regular meetings with his financial advisor to learn as much first- hand information as he can, and look up the market’s trend on his own.

The investor can then try investing a smaller amount and see if his instincts pay off. Of course, in this market, knowledge and patience pay off better than instinct, so it’s always best to do thorough research beforehand. This is the key to getting more dividends in the long run without resorting to middle- of- the- road financial advice.