When I was growing up, my parents taught me all of those little things that any young lady should know: How to sew a button, clean a house, how to cook, and so on. I thought they had covered everything, but they left out the one of greatest importance - money.

 

My brother tried to make money - but I do not think this is what Dad had in mind.....

Personal finance can sometimes seem exasperating and complex, but it doesn't have to be; learning and applying some basic principles will make your life much, much easier.

Spend Less than You Earn. This may seem like a bit of common sense to many, but it really is an issue when it comes to trying to save money. The term "Champagne Taste on a Beer Budget" comes from this area of finances.

Pay Yourself First. Throw out the dreaded "family budget" for this simple reason: It doesn't work - if it did we'd all be doing it and we'd all be rich. As long we all save a percentage of our pay each month, what the rest is spent on really doesn't matter.

Saving Money is a Positive Habit, not a Negative Burden. Parents who save money have children who save money, as long as the parents make a positive impression when it comes to the savings part.

Credit & Debt. Don't try to keep up with the Jones'. (I grew up in a house where everything had to 'appear' perfect). Pay off credit cards before other debts, credit scores can affect more than interest rates. Keep your credit card balances below half of the credit limit and always pay credit card bills on time. Not including mortgage debt, consumers owe close to $80 billion in credit card and line of credit debt in Canada.

So it's obvious right? If you are more in control and aware of your spending and saving habits you will be okay. Well, that's not the whole story. In order to do that, you need a source of income. It's easier to spend money than it is to save it and it is simpler to live with what you have than to try and plan for the future. 
That's why everything has to start with you. You need to develop a plan that will support you and your goals, values, dreams and personality. 

If you are going to be successful, it won't be because everybody thinks you are, it will be because you have set your own goals and taken real, practical steps to make them happen. You will not be doing anything particularly amazing, other than you will know who you are, what you want and how much you need to achieve it.

Do not let money rule your life and do not put your life on hold waiting for money. It is a tool you can have work for you, so that you can live the way you want. Your objective is to create individual financial peace and independence because all of your financial decisions and strategies which reflect your own unique lifestyle desires. Financial freedom is living your life the way you want to live it.

 

 

 

As of January 1, 2009 the new tax free savings account (TFSA) will be available to all Canadians aged 18 years and older. This is another great place to build a secure nest egg - and keep all the growth for yourself! You'll be allotted new contribution room each year....  $5000 to start - and any unused contributions will be carried forward to future years.  

  

Pam's Real Estate Investment Corner
 
Education is the key to Opportunity    
 
Some of you may have noticed that my company name has changed from Carpe Diem Real Estate Investments to Seize the Day Real Estate Investments. Whether we're speaking Latin or English the meaning is the same and I feel it is particularly appropriate today.

 
Last month we talked about the changing markets, the fear that continues to drive the crisis further and the general feeling of gloom that prevails as we change so abruptly from a free wheeling, (free-spending) bull market over to the restraint and caution of a bear market.
 
It is a fact that some of the largest fortunes have been made during times of financial crisis, JP Morgan and Conrad Hilton built their fortunes buying up Real Estate during the depression. I believe that education is the best way to protect yourself and prepare for this new cycle we have entered.
 
Last month I was at a Fast Track to Cash Flow event here in Nanaimo. There were about 200 people in attendance. It seemed the common theme was that most were worried about their investments and financial independence and they did not know what to do. Be it stocks, mutual funds, pensions, RRSP's or house values, the common thread was they were suffering losses and they were looking for alternatives to diversify their portfolio, in fact, 25% of the attendees owned their own homes outright. People who have ready access to cash (Home Equity Lines of Credit converts to TAX FREE cash) have incredible buying power in a time when most people are frozen in fear.  

I am president this year of the NWBN and I would like to invite all you women to the Nanaimo Womens Business Network Annual Gala Christmas Dinner. I am very excited about the event this year.

Our special guests are the amazing and very talented singer "Elizabeth Ryan" and the very entertaining "Lounge Lizards" .

Place: The Nanaimo Golf & Country Club

Time: 5:30 Networking - Dinner - 6:30

Cost: $30 members / $40 non-members

Please click on link below and register to attend. Look forward to seing you there! www.nwbn.ca/events.asp