If your idea of taking care of your finances runs to making sure your rent and credit card bills are paid on time, you might be considered financially illiterate, but don’t worry, you are not alone. Millions of Canadians are in the same position and have little to no idea what they should be doing about their finances, let alone where to find helpful personal finance guides that can help them. Here are some of our favorite personal finance tips for you to consider:
Now That You Have a Car
When you are ready to buy your next car, be sure to use the latest car buying guides (there are several excellent guides online) to learn what you should look for, take the time to do your homework first. There are guides that cover every new vehicle on the market including their good and bad points. Decide if buying a new or used car is a better choice. Make sure you know about your financing options and all costs of ownership such as maintenance, operating costs, and insurance.
Ready to Buy a Home
Before are ready to buy your first home, it is vital that you take the time to learn about mortgages, how to house hunt successfully, down payments, insurance, and of course any renovations that need to be done. Did you know that mortgage anniversaries are the best time to take a look at your mortgage, there are many ways you can reduce the amount of interest you end up paying? Location plays a major role in the resale value of your home. For example, a home located near a sewage treatment facility is going to sell for less than the same house situated close to schools.
About Those Credit Cards
It can be tempting to cancel an old credit card when you get a new one with better terms. Most of us have little desire to add another card to our wallets as this adds not only to the hassle but can also increase your debt load if you don’t close out the old account. Be careful about canceling an existing account, it may or may not affect your credit score. If you like to travel, why not have a credit card that offers travel rewards. Using this type of card can help you realize your dream trip faster.
Then There Is Insurance
Homeowner’s insurance, do you need it? While homeowner’s insurance might be expensive, it can pay for itself in one claim. What if a tree falls on your house or someone falls and injures themselves on your property? The right insurance makes sure the costs don’t come out of your bank account. Life insurance, can you live without it? Most young people fail to buy life insurance, mostly because at that age they feel invincible. While you might not worry about it during your younger years, there will be a time when you should consider buying coverage to protect your family should anything happen. Auto insurance, what affects rates? Many things affect the rates you pay, including tickets. The more serious the ticket, the more significant the impact it is likely to have on your auto insurance rates.
At some point, you and your partner are going to have to have “the talk” about personal finances. While not all couples merge their finances, most choose to do at a point in time that works for both of them. There is no set timeline for this; each couple will know when the time is right. Consider a “financial contract” such as a prenuptial contract to protect both of you should your relationship break up. At first, this might not seem like a good idea, but as your financial situation improves, you may find such a contract to be in your best interests.