My Best Financial Tip

Credit Cards

Credit cards generally have very high interest rates compared to conventional loans

Some people use their credit cards and never pay interest, how you say – by paying the entire balance of the statement on or before the due date. Many Canadians today only pay the minimum required amount that is stated on their credit card bills, even though this practice usually ends in misery for the cardholder and puts unnecessary strain on their family. Credit cards generally have very high interest rates compared to conventional loans, for example – bank loans, lines of credit and car loans. Credit card interest can accumulate quickly at 28.8%, however when considering compound interest this increases the outstanding balance even quicker making the cardholder feel more anxiety and despair.

Here is a list of 10 things that you could do to not fall into the credit card trap. 

  1. Never pay credit card interest always pay the balance of each statement.
  2. Ask yourself this question before using your credit card, is this what I need or what I want.
  3. Never put automatic payments on your credit card.
  4. Leave your credit card at home when going out to shop.
  5. Never pay the balance late.
  6. Never exceed the credit card limit.
  7. Only have 2 credit cards maximum.
  8. Make sure keep the available credit low.
  9. Never let anyone use your credit card
  10. And if all else fails freeze the card in a block of ice and hope like hell the urge passes before the block melts.

In conclusion people have to look at a credit card as a tool and not a way of borrowing money. To minimize the dangers of hurting your financial health be aware of the 10 points above, also choose your credit card wisely some have annual fees and extra charges for the way you use the card.  My best financial tip is never pay credit card interest and always pay the balance on your statement every month on or before the due date.

Visit the Solutions Financial website for help in securing your Financial Security needs and obtaining your Financial Freedom in the future years to come.

Are you thinking about leaving an inheritance for your children and grandchildren?

Photo of Senior Couple talking to Insurance Agent

Senior Couple purchasing a Tax Advantaged Permanent Life Insurance Policy

You’ve worked hard to achieve a degree of financial success and have set aside non-registered investment funds as an inheritance for an adult child or a grandchild. You don’t want the tax burden and probate fees to reduce the legacy you’ll leave behind. Although you’re unlikely to ever need the money yourself, you’re concerned about the safety of your investments and having access to the funds should your circumstances change. Also, you’re in a high marginal tax bracket and are frustrated with paying significant annual taxes on the growth of these assets.

Purchase a tax-advantaged permanent life insurance policy with your adult child as the life insured and the designated contingent owner. Your grandchild (the child of the life insured) is named as the beneficiary of the policy. By transferring your non-registered assets into the policy, you’ll reduce your future annual tax burden. Funds invested in a tax-advantaged life insurance policy allow for accumulation of cash value inside the policy (within legislative limits), and you don’t have to pay income tax on this growth. At your death, because of certain income tax provisions applying to life insurance policies, you may transfer ownership of the life insurance policy to your adult child (who is the only life insured on the policy) without your estate paying any tax on the cash value growth. The transfer is also free of probate, executor and legal fees. Upon the transfer of ownership of the policy to your adult child, he or she will have access to the cash value in the policy while he or she is living. Alternatively, your adult child can maintain the policy to be passed on at their death to your grandchild as a death benefit, again without taxes, probate or legal fees. The cash value in the policy remains completely accessible and in your control while you’re alive. Contact Solutions Financial today and they will customize your life insurance coverage and match your investment goals with your risk tolerance.

All comments related to taxation are general in nature and are based on Canadian tax legislation, which is subject to change, and apply to Canadian residents. For the implications as they relate to individual circumstances, consult the appropriate legal, accounting or tax expert.

Money Market Rates – What You Should Know About It

Money market accounts are individuals’ savings accounts which the banks are providing. They’ll only permit certain amount of the withdrawals that have the greater stability requirements and generally have the higher rates. Understanding that you have the interest rates for the money market account may have significant effects in your savings. Money market rates might change yearly, and the overtime of the money market rates would have a vital role within your savings as well as the general the account management.

Your hard earned money market account is insured, like banks, using the Federal Deposit Insurance Corporation (FDIC). Although your own bank goes under, your hard earned dollars is still there. That is the reason why most money market account is important to people that’s looking for financial security.

Most of the money market rates are influenced by the returns that the bank will pay it’s customers but still earn profits. In other words, although the financially stable the financial institution will directly correlate using the money market price. In addition, banks costs and financial loans will modify the rates of interest banks’ sets on money areas.

The condition of our economy performs a large role in how much banks are ready to pay money market rates. The kinds of money market rates are relying on how low the needed amount of money you have to open up the money market. The lower the total amount you needed in advance for the money market accounts, the lower the rate of interest.

The easiest method to have a good money market account is as simple as searching at how low the actual rates of interest are. Furthermore, the most effective way to find rates of interest is as simple as searching at how financially stable banks are that provide the money market accounts. If you want to learn more, just simply go to this site http://www.Money-Market-Rates.Org.

Stock Investments: The Right Investments For Little Ones

Most folks invest, but a few choose to assist their youngsters break into the financial world of investments before they are fully grown. Doing so comes with a great deal of unique benefits, which include giving your youngsters the understanding that they will require to be able to be monetarily successful in the future. Whilst it can be extremely tough to invest with and for your kids, you can get several aspects that can be done to make the operation simplier and easier and even pleasurable. The finish objective is to educate and to show your young children about the economic world. Maintain these things in mind and see just precisely how far your son or daughter can make their cash go.

There are actually a large number of kid friendly stock options accessible that you simply can help your kids choose from. Anything like Sony, or other products that they’re familiar with, help make good choices. These choices will permit them to connect to the investment that they are making, furthering the lesson that you are attempting to teach. In the long run, it will be the fact that they can pick from businesses that mean something to them which will cement the understanding in their head and get them excited concerning the prospect of putting their cash away rather than spending it.

It may be the best idea to get a qualified broker to purchase shares on behalf of your kid. This is specifically true in case you are not well versed within the ways of investments in stocks. Make sure that you simply select a broker that’s willing to talk to your child and explain factors to ensure that they can comprehend it.

Remember, you don’t want this to be a bad experience, so do just a little research and find the broker that is correct for the scenario. You can find plenty to pick out from, so ask close to and look on the internet for ideas of where you may begin. Remember, finding the proper broker can help make all of the difference in the globe.

Investing is something that various individuals decide to get involved with, and one can find tons of details that your children can learn from the operation. It is an excellent idea to get them involved with investing early on, even if it only means buying a couple of shares of a organization that they’re well versed with.

Ultimately, you won’t only be setting up your young children for financial success, but you will probably be enabling them with understanding that they will use all of their lives, which can make the entire procedure well worth the effort that you put into it.