August Newsletter

Thursday, August 5, 2010 In this issue: Calculating Your Net Worth Tips For Increasing Your Cash Flow Collecting Your Rent - Online? Shawn Mooney (403) 945-8769 Current Rates: Terms The Bank Our Rates 1 Year 2.70% 2.54% 2 Years 3.45% 2.54% 3 Years 3.75% 3.50% 4 Years 4.24% 3.89% 5 Years 5.79% 3.89% 7 Years 5.15% 4.95% 10 Years 5.49% 5.20% The prime rate is 2.75% Next scheduled date for Bank of Canada rate announcement: September 8, 2010. Contact Info: AIRDRIE, Alberta (403) 945-8769 Visit my Website

Calculating Your Net Worth Canadians saw their net worth grow by 1.3% in the first quarter of this year, passing the $6 trillion mark, according to Statistics Canada. A large reason for the increase in net worth is the fact that more Canadians invested in real estate and equities in the first three months of 2010. Mortgages increased along with the additional investments, but consumer credit growth decelerated. Canadian debt-to-income ratios now sit at a record 147%, while debt-to-net worth ratios have remained largely unchanged, according to Stats Can. What's your net worth? If you're unsure, you can calculate it using Canada Mortgage and Housing Corporation's Net Worth Calculator. Tracking and mapping your net worth history, and posting specific financial goals, is a great way to ensure you're financially prepared to face challenges today and down the road. Tips For Increasing Your Cash Flow While we'd all like to see our mortgages paid off sooner rather than later, accelerated or lump sum payments aren't necessarily in the cards for everyone - especially if you've just started a family, or are having difficulties making the switch from being a renter to a homeowner. If you're not paying off your mortgage as quickly as you'd like, there are a few options available to you to help you increase your monthly cash flow: 1. Go no-frills. One way to save a bit of money on your mortgage payment is to go with the lower rate of a no-frills mortgage. If you're not using your prepayment privileges, why pay the extra interest? With a little discipline, you could always put your savings aside and use them for a rainy day. 2. Use your bank card to its full potential. Bank cards and credit cards today come with a vast array of incentives - including cash-back options, auto-saving options, and travel miles. My personal favourite is the Shoppers Drug Mart MasterCard that allows you to save a ton of dough on all of life's essentials. Sit down and think about what makes the most sense to you. If you're spending the money anyway, it couldn't hurt to see something for it. 3. Take a lesson in frugality. Welcome to the new era of coupon cutting. There are a variety of websites and enewsletters out there that are designed to keep you informed of the best bargains in your area. My favourite? Groupon.com. Every day you'll receive a deal to a local restaurant, gym, or one of a vast array of products in your city. Because hey - every little bit counts. While managing your cash flow is important, try to keep your mortgage top-of-mind - and pay it down whenever possible. After all, imagine how much cash you could free if you eliminated that pesky mortgage payment. Collecting Your Rent - Online? While virtually every other bill you can think of can now be paid online, high credit card costs force many landlords to continue to rely on paper cheques for their payments. While this likely worked in the past, today's renter is used to the convenience of online payments. US-based WilliamPaid.com positions itself as a solution to that problem. The company promotes itself as an online resource for renters and roommates, that provides flexible rent payment options, including the ability to pay rent with a credit or debit card. It also allows users to build their credit rating by reporting their payments to the credit bureau. While this service, or a similar one, isn't yet available in Canada, landlords aren't tied to paper cheques. More and more financial institutions - and bank account holders - are turning to email money transfers to pay their bills. To receive money via email, all a landlord would need is a valid email account. It might be something to think about when dealing with less-than-timely tenants.