TIPS FOR RRSP

Hello everyone, I am back once again. I had already given you a few financial tips about investment and savings. This time I am going to give you some financial advice about RRSP. It is great feeling to share my views with all of you and I am very happy to help you.

Let us start with the topic. RRSP means Registered Retirement Savings Plan. It is simply the best way to reduce your taxable income. It is a great way of saving money for future. The growth of RRSP should be your first preference. Keep contributing to your plan. It is like watering a plant at early stage so that it can give you ripe fruits when it grows taller. The more you contribute, the more beneficial it will be more you once you retire.

If your current income level is not very high, try to go with contribute as little as you can. Marginal tax rate is very high. It increases the important of RRSP even more. There is no tax on RRSP until it is withdrawn. By the time you plan to withdraw you will be in the bracket of low tax payers. Moreover, you will not have to ask your children for money as RRSP will return you enough money to take care of yourself.

The longer you let your RRSP grow, the better it will pay off. Moreover, if you are resident of Canada, you are allowed to borrow money from your own account for any specific purpose. For instance, if you are planning to buy a house, you can borrow from your own account. It is the future plan you can have. I hope everyone found my tips helpful.

TAX-SAVING IDEAS

Hello everyone, hope all of you are taking advantage of my financial tips and using them to have more money in your pockets. Last time, I gave some tips regarding investment in stocks and bonds. Today I will give you more ideas about saving your money. We will focus on tax-saving.

We all know it is hard to earn money. But what is even harder? letting go a portion of your income in form of taxes. Almost everything on this earth includes tax. My point of saying is that one cannot avoid paying off taxes. One thing that can be done is reducing the amount of tax. Try to contribute more to your RRSP. Tax rules allow you to contribute up to $2000 to RRSP. By doing so, you can avoid paying tax on this very amount. Be sure to report all T-slips. One thing that you can do to save taxes is to spend less. Try not to spend your money on useless things. Not only it wastes the money, also you have to pay tax on every purchase you made. If you have children under the age of 19, try to invest your money on them. Not only it will lead to future advantages, also government charge very low tax on any investment make towards children. You should claim all medical expenses.  Also don't forget to claim your donations.

One must review the official tax law of their resident country, it will make you aware about the taxation system of the country.  Make sure all the taxes are paid on time in order to avoid extra penalties. Pay your tax wisely as it is used by government for development purpose. Using all of the ideas i shared with you, a decent amount of money can be saved. I will be back with some new financial tips next time.

STOCKS OR BONDS

Hello everyone, I am back with some new financial tips for all of you. Today, I am going to tell you about whether to invest in stocks or bonds. I hope all of you are taking advantage of my financial tips and using them to earn some money. Let us start with the topic.

Everyone of us want to earn money. In order to increase our money, we need to invest it. The two best options for investing the money are stocks and bond. But the question is, which one is better option? The answer of the problem can be found by analysis the various aspects of both options. A Stock is an ownership share in a corporation whereas a bond is a debt instrument created for the purpose of raising capital. If you are investing in stocks, you have the power to sell them anytime you want. On the other hand, bonds are the certificate of deposits which means you will only get your money at the end of maturity period. The most important thing which people want to know at the time of investment is the safety level of their investment. Bonds offer much higher level of security. You will keep getting your interest even if the company is facing poor financial period. However, if the company is having an outstanding year from profits point of views, you will not earn any additional benefit. Now, as you have enough information regarding the stocks and bonds, you should choose the best suited option. If I have to choose one of them, i will like to invest my money in bonds as they provide higher security toward returns. The picture below supports my choice.

CREDIT CARD DEBT

Hello everyone, I am back with my new post regarding personal financial tips. Earlier I shared my views on renting vs buying. Today i will give my views on credit card debt and will give you some tips about reducing your credit card debt. I hope it will be helpful for all of you.

Credit card were made in order to reduce the need of carrying cash. It was a facility provided to the people so that they can have some time for paying off their debts. But now it has become a huge problem for most of the people. As we don't have to pay the cash at the time of buy, people use to overspend the money. When the monthly bill arrive, they seem to have the trouble paying off their bills. The problem doesn't end here. Nowadays people carry loads of credit cards. They may look nice in your pocket but they create problem in the end. High amount of debt leads to problems like stress. Credit cards charge high interest rates which increases the expenses even more. Now the major concern is how to reduce the credit card debts. Here are some tips which will help you in solving your problem.

• You should try to keep only one credit card with low interest rate.
• Create an estimated monthly budget and cut off useless expenses.
• Make sure you pay the bill on time in order avoid further problems.
• If you are running out of money, make sure you make minimum payment.
• Try to save more money from your income.

BUYING OR RENTING

Hello everyone, this is my first post regarding personal financial tips. Today, I am going to tell you whether you should buy a house or you should rent it. I hope it will help you in making a good decision.

The answer to the question of whether to buy or rent is not as straight forward as it appears to be. In order to make a wise decision all the aspects of both options should be compared. The first and most important aspect is 'cost'. In case of renting a house, the cost is much lower than buying a house. When you buy a house, you have to pay large sum of money in the form of mortgage, property taxes. The cost of buying furniture and other utilities adds to expense. On the other hand, renting a house is cheaper as these expenses gets cut off. Sometimes, maintenance expense occurs but it happens in both cases. Other factor which will influence your decision is 'saving'. Before making your decision ask yourself, do you want to save money? Most of the people want to save money. In this case, renting a house will be a better decision because when you buy a house, most of the money is taken by mortgage and other expenses. However, if you buy a property it increases your equity. Moreover, you can rent a part of your house and use it as a source of income. Another factor you should consider before making a final decision is the duration of your stay. If you want to stay for a long period of time, buying is a better option. However, if you are planning to shift in near future, renting should be your decision. If you are a high earner, you should buy a house instead of losing your money in form of rent.

Your decision should be taken after considering the factors like cost. saving, income, duration of stay. Ask yourself what suits you best? Do you want to stay for long term? Do you want to build equity for your children? How much do you want to save? If you are planning to buy make sure you earn enough to pay high expenses. If not, it can lead to bankruptcy. Make the best possible decision according to your need. I hope you like my views and I will be glad if it helps you in making right decision.