Take Ownership

Take Ownership

OWNERSHIP.  Use this as your “mantra” for 2013 and you can experience a new way of living.

I am not talking about purchasing a new vehicle or a new home; I am talking about taking ownership of your personal finances.

What are your limiting beliefs or roadblocks preventing you from honestly embracing your finances?

Why are you highly successful in your work, but are unable to move forward to becoming debt free?

If you managed your business in the same manner that you manage your personal finances, would you be bankrupt?

Our values around money are well established by the time we are teenagers.  Our parents views and experiences around money shape our beliefs and attitudes towards money as well. Our values around money play an important role in how we currently deal with our finances.

So what are the roadblocks and patterns that are entrenched as adults causing us financial stress?

Fear:  When I sit down with clients for the first time there is always a hesitation and curiosity as we begin the process of reviewing all their financial information.  We discuss the details of paystubs, Credit Card interest rates, even money owed to the Cash Store.  When was the last time you took a clear look at your entire financial picture? To review everything you owe and to see exactly what you have saved for the future is a very powerful and enlightening first step.  Let’s call it a balance sheet for your personal finances.   Fear is stopping many people from taking this first step.  Fear that once you are aware you will need to hold yourself accountable and will need to make changes and sacrifices.  It is much easier to live in the land of Avoidance.

Avoidance: How are you avoiding dealing with your finances?  Are you writing post-dated cheques, taking a passive role in your finances, avoiding the government, overspending repeatedly at Christmas, buying “big ticket” items you can’t afford?  Review your last five years of spending and you will see the patterns emerge.  Are you setting yourself up for failure, by repeating patterns that you truly know are not helpful?

Money is one of those great relationship tests: it can be stressful talking about it and people may feel defensive.  Are you delaying discussing your finances with your spouse out of fear or because you think it is easier to avoid?

Take Ownership!  Develop a healthy financial plan with your spouse that is respectful of each person’s values around money.  Make it realistic both of you are right, now find a compromise.  Have a budget/plan in place that allows both of you to take responsibility and both of you to win.

Let 2013 be a new and successful financial year for you!  It’s Simple: Take Ownership

Laurie Lee

Goodcents Co.

 

 

 

 

 

What To Do With Your Christmas Bonus?

It’s that time of the year when employees start to receive their annual evaluations and employers start to pay out annual Christmas bonuses. Many people contemplate the payout options for their Christmas bonus and they often seek the advice of a financial advisor.

When clients ask me what they should do with their Christmas bonus my advice always depends on their individual budget, their average tax rate and their personal savings capacity.  However, regardless of your personal financial situation the options are always the same. Canadians usually have 4 different options to choose from when you are deciding what to do with your bonus.

Option 1: Put your bonus into your RRSP.  This is a very common bonus option for employees because it helps increase your personal savings (aka your net worth) and it may also give you an RRSP contribution receipt to declare as an income deduction on your annual income taxes.

Whether or not you receive an RRSP contribution receipt depends on how your employer chooses to pay out your bonus.  If the bonus is paid to you as part of your salary and it is contributed into your RRSP with after-tax money (meaning you already paid tax on the lump sum bonus amount) you will receive an RRSP contribution receipt. However if your employer is contributing the money on your behalf with pre tax dollars you will not receive an RRSP contribution receipt to declare on your income taxes.

It is very important to inquire about the RRSP options for your bonus before making a decision on whether or not you wish to contribute your bonus into your RRSP.

Option 2: Take your bonus in cash.  This is another very common option for employees who are receiving a Christmas bonus.  Having a lump sum of cash deposited into your bank account just in time for the holidays can be very helpful for all of your seasonal expenses.

If you chose to take your bonus in cash keep in mind that you may have to pay a substantial percentage of the gross amount in taxes; this could leave you with a significantly less amount of your bonus money after taxes.  However keep in mind that you may be able to recuperate a portion next year when you file your annual income taxes.

In Canada we have a progressive tax rate system. This means that Canadians do not pay the same percentage of tax on the first $10,000 of income earned at the beginning of the year as we pay on the last $10,000 of income earned at the end of the year.

You may be able to recuperate the difference between the tax rate paid on your bonus at the end of the year (i.e. your marginal tax rate which is the highest percentage paid on the last dollar of income you earned during the year) and your average tax rate. As an example if your bonus is $10,000 and you paid tax on it at a rate of 42% but your average tax rate is only 38% you should receive an income tax refund of $400 ($10,000 x 0.04).

Option 3: Chose a combination of the 2 options.  If you want the best of both worlds you can chose to take a percentage of your bonus in cash and you can allocate a certain percentage of your bonus into your RRSP.

Option 4: Defer your bonus and take it in January.  Depending on your personal income, your marginal tax rate and your average tax rate it may be beneficial for you to defer your bonus and take it in cash in the New Year. This of course is only beneficial if your marginal tax rate is substantially higher than your average tax rate.

What are you doing with your Christmas bonus? Tell me on Twitter @TKBlogs

Photo by meddygarnety

Money Magazine – Canadian Money Magazine in Canada for Canadians

Money Magazine
Money Magazine Cover

MONEY® Canada Limited, a 100% Canadian owned financial media company publishes its eagerly anticipated print offering – MONEY® Magazine.

 MONEY® Magazine is has been in existence for a number of years, and is picking up its momentum now as the Canadian financial markets prepare to enter their busiest time of year. Packed with feature articles from some of Canada’s best financial writers, MONEY® Magazine hopes to capture an audience among both seasoned investors as well as those new to the investing world. Experts in the realm of Canadian Money a most important and meaningful subject matter.

With Financial Literacy as its primary goal, MONEY® Canada Limited is proud to announce this newest edition of MONEY® Magazine. Reached for a comment in Richmond Hill, Ontario, Owner and Publisher, James Dean had this to say about the awaited issue, ‘We’ve worked very hard to provide real journalism, opinion, and insight from some of Canada’s best [writers]… we’ve got something for everyone in the this issue. Real Canadians can learn a great deal from our publication.”

In addition to the great news, reviews, and interviews published for the benefit of the readers, MONEY® Magazine is also pleasing financial advertisers with this new high-gloss, high definition full color magazine. The next issue of MONEY® Magazine comes out in January 2013. Advertisers are encouraged to call MONEY® Advertising for rates and bookings 416-360-0000.

 MONEY® Canada Limited is a publisher of financial content across all media. From websites and magazines, to books, blogs, and broadcast quality video, MONEY® is Canada’s premiere choice for financial services advertising, marketing, and promotion. Canadian Money Magazine and Money Magazine online are synonymous with the MONEY Newsletter and the MONEY Magazine full four color process publication.

More about MONEY® Magazine, can be found at Money.ca

“Gold is Money” timely article in MONEY Magazine

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Vancouver Olympics
Vancouver Olympics

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CANADIAN MONEY
CANADIAN MONEY

Canadian Money 1-800-789-1011 Money Canada Limited all about Canadians and all about Canada. In the worst economic times people tend to cut back on things that are luxurious and things that are too expensive.  MONEY is lucky to be one of a few recessionary proof businesses; in the toughest times when retirement portfolios hit all time lows and the entire monetary and financial system was near collapse, that’s when MONEY was regularly telling MONEY Members what not to do, was now switching gears to tell people what to do and saving up to 30% in anticipated losses. Get MONEY Magazine or exclusive Online MONEY Membership and save thousands especially in tough times.

You and Your Money®

You and Your Money
You and Your Money

Top keyword searches on the Internet are probably sex, love and money but we are only here to talk about “You and Your Money“.

As we begin our journey in describing every aspect of money possible I look to promote our business and philosophy in the best way possible. We now that the internet is exploding; computers are faster and cheaper and more and more people will have them as band with and security grow.  In Learning how to get better rankings for  money.ca and Money Canada Limited we may have to use some of our writing and editing prowess.  I have studied some key words in order to position our own key word of ‘MONEY’ at the top of internet search engines like Yahoo.ca, Yahoo.com, google.ca and google.com. MONEY.CA should join some of the top sites simply because its quality, content and presentation. We are simply promoting a well documented product, service and commodity as well.  Money is an important subject, at MONEY.CA for obvious monetary reasons. Sex for Love not Money…as we all know ‘sex sells’, also literary and literally; meaning that the greatest amount of look ups or searches done on the internet on search engines like Yahoo and google are in the following order…love than money than sex…love comes ahead of sex, but really sex is second to love, also noting that money is between love and sex, often this is typical  of love and sex because people do confuse sex for love and vice verse love for sex. That being said we I have shown you that the internet is as smart as the people who use it. There is an obvious play on words here, and they are meant playfully yet they are also meant to be significant in order to rank highly on search engines every where showing that as humans we might not always have our priorities right and we do enjoy the subjects of Love, Sex and Money. Our philosophy to get noticed maybe unorthodox but our target market is varied, and we would like to be where real people are in order to help them to determine their priorities and tell them about ours. We are promoting money, Canadian money and Canadian money services and products; we are promoting money education and creating wealth through many wonderful offers.  Join us to tell people the simple truth about money through our MONEY Magazine, MONEY Newsletter, MONEY ezine. Find out more on how you can participate in documenting this important subject of MONEY for the benefit of others.

Money Canada Limited

1-800-789-1011.ca Call Now – Easy to Remember – Hard to Forget

Tax-Free Money for What Matters to You

Budget 2008

Responsible Leadership
February 26, 2008
Tax-Free Savings Account

Canadians need to save for many different purposes over their lifetimes. Reducing taxes on savings can help.
That’s why the Government has introduced a new Tax-Free Savings Account (TFSA). It’s the single most important personal savings vehicle since the introduction of the Registered Retirement Savings Plan (RRSP).
The TFSA will allow Canadians to set money aside in eligible investment vehicles and watch those savings grow tax-free throughout their lifetimes. TFSA savings can be used to purchase a new car, renovate a house, start a small business or take a family vacation.
Canadians from all income levels and all walks of life can benefit.

How Is a TFSA Different From a Registered Retirement Savings Plan?
An RRSP is primarily intended for retirement. The TFSA is like an RRSP for everything else in your life.
Both plans offer tax advantages, but they have key differences.
Contributions to an RRSP are deductible and reduce your income for tax purposes. In contrast, your TFSA savings will not be deductible.
Withdrawals from an RRSP are added to your income and taxed at current rates. Your TFSA withdrawals and growth within your account will not—they will be tax-free.

Benefits of Saving in a TFSA
Because capital gains and other investment income earned in a TFSA will not be taxed, a person contributing $200 a month to a TFSA for 20 years will enjoy additional savings of $11,045 compared to saving in an unregistered account.

Responsible Leadership Budget 2008
Early Savings to Meet Many Needs
Canadians will also benefit by using the TFSA to start saving early for future needs and goals.

A Flexible Account for a Lifetime of Savings
Not everyone is able to save each and every year.

Those who cannot contribute $5,000 in a given year will be able to carry forward their unused contribution room to future years.

In addition, Canadians may want to use their savings— to buy a new car or a cottage, or start a small business— and the full amount of withdrawals can be put back into the TFSA in the future. Couples often save and plan together, so Canadians can contribute to their spouse’s or common-law partner’s TFSA, depending on the spouse’s or partner’s available room.