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Setting Resolutions for a Financially Healthy Year

Before the clock strikes midnight on New Years, we typically already have a list of resolutions that will help us in the upcoming year. Why not focus a few of these resolutions  on bettering your financial situation? Let’s get you thinking about some of these resolutions that could get 2020 started on a financially stable foot.


Every year you probably set yourself a resolution or two. “I’m going to read at least one book every month!”, “I’m going to eat healthier!” or “I’m going to get active!” That’s awesome, but have you ever considered what financial resolutions you could be setting?

If the goal is improvement (which it always is) why not set out to improve your finances, too? Doing so might even help you meet some of your other goals because those fresh veggies and gym memberships to fulfill your other resolutions don’t always come cheap.

We’re all at different stages in our lives and priorities are going to be different for everyone and will vary as your lifestyle change. Here are some examples of financial resolutions you may want to set for yourself this year. See what makes sense for where you’re at right now.

  • Pay down your debt – set a percentage or dollar figure goal if it’s too much to tackle in a single year
  • Save for a down payment on a house, condo, or cabin
  • Save for two month’s rent plus damage deposit and moving costs in order to rent an apartment
  • Become more financially literate – read books or articles, or speak to a financial expert
  • Save 10% of your income every single month
  • Teach your kids about money
  • Make a budget and stick to it
  • Improve or start working on your credit score
  • Earn more income
  • Save to buy that expensive thing you want upfront – like a big vacation, new car, or renovation
  • Donate a set monthly amount to a cause or charity that you love
  • Figure out how much you really need to retire, and work out how to get there
  • Start an emergency fund
  • Make your money work harder – if you’ve been crushing goals you might be in a place to start investing for bigger returns than your current savings account offers

All of these are really just some basic ideas to get you thinking about what financial resolutions you could set this year. Remember that your goals should always be SMART – Specific, Measurable, Achievable, Realistic and Timely.

Yes, Couponing is Still a Thing!

Lady Gaga, Kristen Bell, Hilary Swank, Kourtney Kardashian and me. What do we all have in common? The love of a good deal through couponing! Couponing has come a long way from sitting around the Sunday paper with your grocery list and your scissors risking a paper cut, which is still a 100% legit option and something I do every so often. Now, you can find coupons for restaurants and services and experiences and tons of different options to get a great deal and try new things that fit your lifestyle.

Want to try new things and pay less? Here’s how you can keep up with the Joneses while paying like the Smiths!


Daily Deals – why pay more for something you’re going to do anyway?

Do you remember when Groupon first came out and then every day after there was another site launching that offered daily deals or group discounts? At the end of it, in Canada, 33 different sites had been launched. Of those, there are still 5 that are not only existing, but going strong! And why? Because people love a good deal! I’ll admit it, I sometimes forget about Groupon but then when I rediscover it, it’s a gold mine. This past year, I’ve gotten huge discounts on restaurants, massages, wrapped canvas prints, scent diffusers and much more. It was great, because I was already planning on paying for these things, but because of the deals I got, I was able to save money and do even more than I expected. Another great thing about these programs is that you can check them out online or just download the app, so you can find deals on the go.

Tip: Know what you want to buy friends and family, or yourself, as a gift? Planning a date night? Need to get a massage? Planning on spending money on anything? Check if there are any Daily Deals first as flash sales typically offer a higher discount since they are only offered for a limited time!

Trying New Things – it’s all the rage

Another great thing to use Daily Deals for is to find new experiences or things to do where you live or when you’re travelling. I recently went to Las Vegas, and because of Groupon, we saved money on shows, discovered new restaurants and spent a lot less than we thought we would. This meant we had some extra money for the outlets, where we used a coupon book, of course, to score even better deals. Using a Daily Deal is a great way for you to find out about events going on and get ideas for things to do when travelling to a new place, all for a discounted price!

Moving to a new place? Daily Deals can even help you meet people! When I moved to Australia, I didn’t know anyone. Fortunately, a few of the daily deal sites had group meet up events sponsored by local pubs. Not only did I get to check out a new place, I got to make a few friends too.

Supporting Local – discovering hidden gems in your backyard

Wherever you live, I’m sure you have some great, local businesses that you don’t even know about, or haven’t visited lately. When new businesses, or even those who’ve been around for a while, are looking to increase business and get their name out there, many will advertise on Daily Deals. Purchasing a deal will allow you to not only save some money, but maybe discover your new “favourite place”. Looking at Groupon today, you can find deals for spa services, rock chip repair, boot camps, tastings, oil changes, scavenger hunts and hundreds of others that are local to your community. Chances are good if you want to check something new out, or there’s something you have to do, like get an oil change, there’s a daily deal for you!

Here are some of my favourite daily deal sites:

Groupon https://www.groupon.com/

WagJag https://www.wagjag.com/

Living Social https://www.livingsocial.com/

Tip: It’s not a good deal if you wouldn’t normally spend money on it. I know first-hand how exciting it is to see a great sale and how tempting it can be to purchase it (just ask my very full closets) but if you’re just buying it because it’s a good deal, it’s not worth it. Although it’s possible to sign up for emails from these sites, and generally I would encourage it, you need to make sure that whatever you’re spending still fits into your budget.

To find out some great tips when entering into the world of extreme, or just every-so-often, couponing, check out this site!

Honey – can we coupon?

Sometimes finding the right coupon can be time consuming and tedious. A simple way to save money on things you are already shopping for is to download an extension for your browser that scours the internet for discount codes on products you are already looking at. For instance, an extension named Honey has saved me so much money when I’m online shopping on things like soccer cleats, headphones and even dog food by finding me coupon codes to apply at checkout.

There is no better feeling when shopping than getting to the checkout counter and the person at the till says “This is actually on sale for an additional 20% off!” This extension pretty much does the exact same thing for you!

Whether you’re looking for a gift, planning date night or looking to try something new, hopefully you’ve gotten some ideas how to find a great deal and save some money. Now we’d love to hear from you, what’s the best deal you’ve scored? Let us know in the comments below!

Top 5 Strategies to Pay Off Your Debt

Believe me, I know – if you’re in debt, whether it’s big or little, getting started on paying it off can be overwhelming. Here are my top five strategies to get you started and moving in the right direction and tackle that debt. Find a strategy that works for you and stick with it!


1. Pay off your most expensive debt first

If you have one particular debt with a super high interest rate, try making that debt your priority. You’ll need to maintain minimum payments on your other debts, but really putting everything you can into your most expensive debt will help to make your overall future debt less. The power of compound interest means that this debt has the possibility to grow the fastest, so eliminating it first is a solid step in the right direction.

2. Pay off your smallest debt first

This is a strategy for when you really need a win to get you motivated. By maintaining minimum payments on all of your debts and focusing on the one that will be the fastest to pay off, you’ll quickly get a little victory to keep you moving forward with the rest of your debt repayment plan.

3. The cash diet

Especially if you can get yourself into trouble with a credit or even debit card, the cash diet is a strategy where your budget becomes absolute law. You plan your budget (give our budget calculator a try), then take out cash to see you through a set amount of time like a week or the whole month. Once the cash is gone, that’s the end of your spending. It’s helpful to break up the cash into your individual budgets for things like groceries, gas, or pet expenses.

4. Use a tool to track your spending

If you’re struggling to find the money to pay off your debt, knowing exactly where all of your money goes is an important first step on finding room in your budget. Use our spending analysis tool or there are lots of great free apps that you can hook up to your bank account and credit cards that will track and categorize every transaction. Maybe you’ll realize you’re spending $30 a month on subscriptions you don’t even use, or that your grocery budget is way more than you thought it was. Knowledge is power, and with detailed knowledge of your spending, you can build better habits and cut out excess. For recommendations on how much of your income should go to which areas of your life, check out our how much money should I spend blog.

5. Ask for help

The burden of debt is worse if you’re suffering in silence. Talking to your friends, family, partner, or trusted mental health professional about how you want to start tackling your debt can help to make the stress more manageable. You can also talk to a financial expert, like one at Conexus, on your best path forward, and they can even help you refine your game plan. You can also talk to your creditors. It’s worth a phone call to see if any of your creditors are able to lower your interest rates, especially if you’ve been keeping up with minimum payments.

Debt is personal, so any strategy for tackling it that will work for you is the right strategy!

What debt strategy have you found success with? Let’s talk about it in the comments.

A woman is making an online purchase and is holding her credit card in her hand and entering her credit card number

The Real Cost of Carrying a Balance on a Credit Card

Do you know what it actually costs when you carry a balance on your credit card?
We’ve broken it down and even have a tool to figure out how long it might take you to pay off your balance.


Balance is a good thing… right?

Sometimes because of unexpected costs or not enough planning, you end up carrying a balance on your credit card. But what, exactly, does it cost when you don’t pay your credit cards in full each month?

Let’s start by defining a few important terms when it comes to credit:

Principal – The amount you originally borrowed. Yes, anything you spend on your credit card is borrowed money.

Interest – What your credit card charges you for the privilege of borrowing money. This is usually presented as an annual percentage rate.

Compound Interest – Interest that is added to your principal … which is then charged interest. Interest on your interest is how credit card debt can stack up so quickly.

Minimum Payment – The smallest amount of money you can pay in order to keep your credit card and not damage your credit score.

Credit Score – This is essentially a measure of how good you are at fulfilling your financial commitments. A good credit score can help you buy a house or a car, get a loan, start a business, or even get you better interest rates.

Interest grows your debt

Let’s use an example. Say you’ve got $1,000 on a credit card with a 19% interest rate. That’s not bad, right? $1,000 isn’t that much at all, and 19% is a pretty standard interest rate. So, let’s say you put $20 each month toward paying off that debt, which is an approximate minimum payment. Do you want to know how long it would take to pay that balance off? More than eight years! And what would it cost you? About $997, which is basically doubling your debt load! And that’s with only paying off your principal with no additional borrowing.

With compound interest, every dollar you leave on your credit card ends up costing you more and more. It’s a powerful thing that can be used to your advantage when it comes to saving, but that’s another blog post.

The example above is just that, an example, but you can use our repayment calculator to help you figure out exactly what your debt might cost you.

A credit card can be good

There’s an obvious solution here, right? Just don’t get a credit card!

Well … it’s not quite that simple. In order to build credit, you need to use credit. So, if you hope to own a home one day, or even get a car loan, you’ll have to work to build your credit. The best way to do this is to use your credit card and pay off the entire balance each month.

Some good tips on using credit with care are:

  • Keep your credit limit sensible
  • Use credit cards for recurring payments that are a regular part of your budget
  • Plan for larger purchases
  • Use credit cards to build good credit within your budget, not as a tool to spend more than you earn
  • If you can’t trust yourself with your cards, leave them at home

See how long it’ll take to pay off your credit card balance

Credit is an important part of your financial life, but carrying a balance, or not managing it well can lead to a struggle with debt. Try our repayment calculator and remember that debt is something that can happen to any of us, so never be embarrassed to talk about it.

Did you learn something about credit cards? Are there other questions you still have about them? Let’s talk about it in the comments.

Couple reviewing how debt stacks up against other Canadians

How Does Your Debt Stack Up?

Let’s have a look at debt in Canada.
How much do people owe on average? How does it break down by age group?


Debt

Almost all of us have it, and most of us are worried about it. How does your debt compares with the rest of Canada and Saskatchewan?

What Canadians owe

Let’s start with the big picture. On average, Canadians carry about $22,000 in non-mortgage debt.

That’s everything like credit cards, lines of credit, loans, car payments, and student loans.  Now the bad news – that number spikes to nearly $24,500 in Saskatchewan. That’s like an entire part-time job’s yearly income worth of debt.

To put it another way, according to Statistics Canada, many Canadians owe $1.74 for every $1.00 of disposable income they have.

Canadians have a lot of debt.

Gen X are the most in debt

Good news for Millennials though, it’s Gen X that’s bearing the biggest debt load right now! People aged 35-54 on average have more than $10,000 of consumer debt alone, while those aged 18-34 have way less at about $5,600. People aged 55+ are sitting in the middle with an average consumer debt of around $9,000. And this is all just consumer debt, or the debt that comes from buying stuff, not investing in anything like a home or your education.

One of the major factors in Canadian’s debt is probably pretty familiar to you – income is staying the same or even going down, while costs of just about everything keep rising.

D*bt happens

Whether your debt is at, above, or even below some of these averages, the real takeaway here is that struggling to stay in the black is a Canadian experience. The first step in tackling your debt should be to talk about it. In fact, one of the main reasons that it’s believed Millennial consumer debt is as low as it is right now, is that that generation has been taught to be more debt averse than others to the point that many are delaying or even rejecting home ownership.

Keep an eye out for our upcoming blogs about the real cost of a credit card balance and our top tips for paying off debt.

So, how did you stack up? Does your debt load make you feel stressed, or are you feeling a little better knowing that so many other Canadians are struggling with debt too? Let’s talk about it in the comments.