Now that you are married, have a couple of kids, a car, a house, credit card bills, and mortgage payments, you may be looking for ways to set a budget and track your spending. Budgeting software is a user-friendly way to keep track of your expenses and income and use the numbers to understand your spending. In essence, you input what you spend, what you owe, and what you make, and the software organizes it for you. Some types of software can bring all of your financial account together, either on your mobile device or online, automatically categorizing all transactions. This allows you to achieve your family’s financial and savings goals by setting budgets. The software automatically pulls all financial information and categorizes and updates it. You will find it easier to keep track of bills and can opt for bill remainders sent by email or to your cell phone notifying you of any upcoming payments. Having bill remainders sent on a regular basis helps you pay your bills on time. The software automatically adds bills, and you can manually add more bills.

The budgeting software will also help you to track investments and find ways to invest. This is a good tool for people who like a diversified, low-cost investment portfolio as well as those who prefer to have a customized investment portfolio selected for their needs and requirements.

Some people are hesitance to use such software because of security anxieties. For the software to access your transactions, you have to give it your online banking access code. It gives the software read-only access to your bank accounts. Security is not an issue in this case, and it is as good as what most financial institutions have in place. If you choose to use such software, the main problem is that you may break your cardholder’s agreement, with your bank holding you liable in case something happens to your account.

Apart from this, there are many other benefits to using budgeting software. The software can help you to come up with projections for the future and compares spending month-to-month and year-to-year, depending on what fits your style. In addition to setting a family budget, the budgeting software shows you how much money you will save by cutting back in some category. You can plan for recurring monthly expenses and one-time expenses. What is more, the budgeting software shows you how your spending habits and decisions affect your budget and how much you have left at the end of the year or month.

With the help of a budgeting software or finance management software you can reconcile and track transactions for different types of accounts – checking and savings accounts, cash, lines of credit, credit cards, etc. You can make use of user-defined expense and income categories, actual comparison reports vs. budget, budget projections, and more. Moreover, you can make use of a number of beneficial features to calculate net income, split transactions into budget categories and multiple accounts, and schedule transactions. Features also include charts and reports, transaction templates, and support for multi-currencies. Payee and category management is also simplified, and you can easily merge two payees or budget categories at any time. All this can be done with simple drag-and-click operations.

You may earn some money from your cottage property this summer if you don’t mind having strangers in your home. If you own a fully furnished lakefront cottage with a boathouse, you can earn good money by renting it. Some people are looking for a woodland-setting cabin instead; so, don’t get discouraged if you have a more rustic type of cottage. Plus, it all depends on how you advertise your property. If your cottage is located in a high-traffic area, you can market it as the ideal family getaway. If it is found in a more secluded area, you can present it as a great locale for romantic getaways or you can target the group of retreat-seekers. 

If you are unsure how to go about renting, you can use the services of a holiday rental website. Websites like this offer a 48-hour confirmation period after potential renters attempt to book some property. In this way, homeowners are given the opportunity to screen renters before they allow the booking to go through. Renters, on their part, should offer information about themselves.

Expenses are another important factor to consider. Many rental websites charge a fee to list cottage properties. Speaking of costs, you may need to hire a maintenance person and a cleaning service. Plus, you may have to invest in your cottage to enhance its decor. Don’t forget to move out family heirlooms and anything that is breakable or extremely valuable and scour big box stores and thrift stores for cheaper alternatives.

If your cottage is going to be a money-making venture, there are other factors to consider, including building maintenance, road maintenance, if applicable, taxes, and ground keeping. Other costs include licences, utilities, and monthly mortgage payments. You may want to create an emergency fund and set aside $4,000 or $5,000 in the event of any major surprises.

Insurance is an important factor to consider before renting out your property. There are different types of policies to look into. Some policies exclude damages caused by renters. Other policies allow renters for a short period or have specific conditions.

Once you factor in all costs, you should think of how much of the year you plan to rent your cottage out. This will help you come up with an estimate for the housekeeping costs, though they will also depend on cottage turnover. On the other hand, the initial calculations are helpful so that you can budget for a major cleaning twice a year and for a weekly cleaning. Divide the expenses into the number of weeks you will be renting out the property. This will help you decide how much to charge per night or week. Think of whether the number is realistic considering the location and the features of the property. You may want to find how much comparable properties are charging. If you target a specific niche, think of ways to make your cottage more appealing. You may want to extend the season of availability if the rent is a bit high.

Finally, while there are added costs, most properties rent for $1,000 to $2,000 a week and sometimes more. The return on your investment is worth the money and can be considerable. To this, try to get your listing up in January or February to get the most out of your investment. Many renters start looking for cottage rentals early in the year.

 As a resident of Canada, you are probably used to free, wide open spaces, and you hate clutter and confinement. It is understandable that you want to translate this sensation to your condo. Some people are very adept at making everything in a small space count, which is the most important aspect of making a condo appear more spacious. With others, it is just the opposite. They are capable of making even spacious, airy condos seem small and narrow.

Small spaces can feel unpleasant. However, there are specific designs that can make rooms look bigger and fool the eye. These designs and techniques include furniture arrangement, color, lighting, and more. You don’t have to take out a huge mortgage for a large condo, to feel comfortable, instead buy something smaller and follow the advice below.

We all know and sense the ways, in which colors affect our moods. Being artistic and unique is one thing, but nothing kills space quite like heavy and/or dark colors. Light colors make the room look bigger and brighter. Having a Bordeaux evening gown is one thing, painting your living room walls in this color is quite another. You are sure to have a “what was I thinking” moment that is going to spiral down into anger and depression before you finally settle on repainting. This is going to be a problem if you are working on a budget. What is the optimal option? Paint the ceilings in white to create the illusion of height. The white paint is normally less expensive, and the rooms will look more spacious. Go for soft blue and green hues and never forget that brighter rooms appear more inviting. If you really must have dark color, use it for the trim and borders. The trim and moldings, if painted light, will create the optical illusion of your wall appearing further back, which will make your living room look bigger.

One thing to remember is that poorly lighted, dark rooms look much smaller. You might want to combine functional lighting with accent lighting to make your condo appear more spacious. One way to do that is to place lamps at the corners of the room. Another idea is to hang lamps from the walls.

Another important element is furniture. Do you ever wonder why clunky, Victorian-era furniture simply disappeared from stores? If this is something you regret, stop reading at once. For some time now, multifunctional furniture has been the hallmark of excellence. Go for items like chests, which can be used as coffee tables, beds with drawers for storage, and such. Curvy, heavily ornamented furniture makes everything around it look small, so go for clean lines, folding tables, extendable furniture, and more. Another idea is to have a glass-topped table, which you can see through. A coffee table of this type appears to take less space, compared to a massive wooden table. Fold-up beds are a great idea, as long as they are easy to fold up. Place your largest furniture near the walls so you do not block up the open space in the middle of the room. Do not obstruct walking pathways or block the view into a room – this will make it look cluttered and tiny. Get carpets only if you have to – bare floors are much more attractive and make rooms look bigger. And they are bigger now; so, relax. Whenever you do any of these improvements, you will have a cozy condo unit that feels so at home.

Parents and experts are split when it comes to paying for performance. Some parents say children should not be rewarded for things they are supposed to be doing anyway, for example, getting good grades and doing work around the house. It all depends on family values. In some homes, school is considered a job, and children are rewarded for doing well (The Globe and Mail).

One interesting question is whether schools should reward children for performance. Some schools in the US have begun to reward children with class parties, iPods, and cash, in an effort to increase performance. The effect of monetary rewards was tested as part of the Learn and Earn Program at Creekside High and Bear Creek Middle, targeting students who barely met academic standards as well as those who performed below the mark in science and math. At the rate of $32 a week or $8 an hour, students who participated in the pilot program were given the chance to earn $480 during the school year. The amount a student earned was tied to participation and attendance. The Learn and Earn approach has proven to be beneficial. The study results suggest that offering financial incentives is a good strategy to motivate students to attend after-school tutoring sessions. The relationships that were formed in such a setting, with support and encouragement, promise success (AJC).  

So far, arguments point in favor of rewarding children in the family and at school. But some beg to disagree. Truly, the praise-and-reward strategy is hunky-dory, and there is plenty of evidence to support it. It is based on the studies of psychologists who discovered that dogs salivate at the sound of a bell, pigeons peck at colored buttons, and rats run maze – when they are controlled through rewards. Psychologists began to explore the possibilities of controlling humans by using the same principles. They were certainly excited to find out that rewards have the same effect on humans as they do on dogs, pigeons, and rats. The know-how developed by modern psychologists made it possible to manipulate children’s emotions, thoughts, and behavior. There is only one problem with this line of thinking. People do not care much about the quality of relationship they would have with a lab-rat. They are not worried whether rodents will develop their independence, sense of autonomy, and self-esteem. Humans are not concerned whether a rat will want to try better and bigger mazes after the researcher is no longer rewarding it with food pellets. This, according to some, is where the method of “reward, praise and reinforce” practically falls to pieces.

Then, when the jelly-beans and gold stars stop coming, the behaviors parents were aiming to reinforce tend to peter out. Kids who were raised to expect praise may feel frustrated and crushed if it does not come anymore. This can dampen perseverance, and evidence points in the direction of reward systems being ineffective in the long term (The Natural Child Project).

A new survey shows that 1 in 4 respondents belonging to the sandwich generation – persons who support both parents and children – expect to support their parents financially. And while some are able to help their parents, many Canadians are not so fortunate. Some 48 percent or almost half of those who support their parents aren’t financially well themselves. For 55 percent of them, supporting parents means delaying retirement.

So, when should you support your parents financially? Experts explain that this is a personal decision, especially if this means going in debt. There is a variety of factors to be weighed, for example: Will your parents go bankrupt or lose their home? Do they have serious medical problems? (Bankrate)

What about parents who do not fall on hard times due to an unexpected job loss, poor health, or disability? Obviously, most people, even those who weren’t raised in loving homes, will step in and prevent a parent from becoming bankrupt because of such circumstances. However, some parents are irresponsible and just live too high on the hog, with their children ending up paying the bill.

According to therapists and financial experts, the best way to determine whether to step in is to find out what fuels the overspending. You may be surprised, but some common causes are entitlement, addiction, and ignorance. Some parents are not good at financial planning and do not know how to handle their money. Entitlement is when parents feel they owe a slice of their children’s success. Finally, addiction is when parents’ overspending results from a compulsive need to buy, gambling, drug, or alcohol problems (MSN).

Even if this is not the case, there are some questions to ask and things to do. To begin with, it is a good idea to talk to your parents and discuss their financial future. Have they considered the option of selling their home? How much does it cost to live on a monthly basis? How much money do they have left? Answering these questions will help you make plans. Another thing to do is organize a family meeting. If grandchildren, in-laws, and siblings are involved, now it is the time to look at this as a family issue. Everyone can give valuable advice and input, helping you decide what to do. If having a family meeting is not an option, you may consider enlisting the help of a geriatric care manager, an elder law attorney, or a professional elder care advisor. Seeking advice is important. Input from a financial planner, tax advisor, elder law attorney, and estate planning attorney will save you unnecessary losses. Finally, you should ask yourself whether you are willing to help and be honest about it. Unresolved disputes, past resentments, and old hurts may have to be worked out so that your parents’ or parent’s last years are the best quality possible with existing resources. Even if your parents weren’t good parents, forgiveness will uplift you. Focus on the present, the past is gone now (Forbes).

Most people make the same home-buying mistakes, whether they are shopping for a lavish mansion or for a starter home. And today, with properties being sold within days of being listed, and even within hours, home-buyers are even more likely to make mistakes.

One common mistake people make is misunderstanding the role of the real estate agent. Real estate agents are, of course, friendly, and this a part of their job. While shopping for a home, buyers spend a lot of time with their real estate agent. However, it is important to understand that the agent is working for the sellers. If you are to buy a house in the United States, most US states require real estate agents to tell buyers this up front. Canadian home buyers are advised to pay attention to this because Quebec and several other provinces have not adopted disclosure requirements as of yet.

Another mistake is falling in love and thinking a house is just ideal. Even if this is what you think, do not share it with your agent or the seller because they can hold out for a high price. Wise home buyers are aware that there are many houses out there, and they are looking for the right house at a reasonable price. Even if you’ve found the house of your dreams, if you cannot afford to buy it, keep looking (Bankrate).

One way to find a fair deal is to compare the cost of homes in a particular area with the cost of the house you consider buying. Look at recently sold homes, the number of bathrooms and bedrooms they have, extra features and size, as well as the homes’ condition.

Picking the wrong community is one mistake that can cost you. Some of the areas are flat-out expensive, and you may want to look for a location that is more affordable. Of course, this does not mean that you should be looking for the cheapest locale. If the community is not good, you may find it difficult to sell the property, and you will be unhappy if you do not like the neighborhood. Read the local newspaper and ask around to find out how many resources the community offers, what the main issues are, and how it fares economically. Pay special attention to the schools in the area (that is, if you have children). Look for information on student/ teacher ratio, the percentage of children who go to college, test scores, etc. It pays to talk to students and parents as well (CNN Money).

Finally, one mistake many home buyers make is underestimating what they will be able to afford a month. It is not enough to factor in the home purchase price – there are fees, utilities, insurance, and taxes to consider. Apart from these, you may want to factor in the hidden costs, including homeowner’s insurance fees, escrow fees, appraisal fees, moving costs, and property taxes. Another factor is, of course, the cost of maintenance and repairs (US News).

Depending on the condition and age of your place, maintaining a house can be painfully expensive. This is especially true when it comes to unexpected repair works, be it a broken air conditioner, a leaky roof, or a cracked foundation.

One way to avoid unpleasant surprises is to look at the key components of your home. Think of when they will need to be replaced by determining the current age and life expectancy of each and every item. Estimate the replacement cost as well. Calculate the remaining life expectancies of all items and rank them according to remaining life expectancy. The next thing to do is plan for expected expenses over the next 5 years, watching for expense clusters, i.e. large amounts of money in maintenance costs over a short period of time (the Globe and Mail).

If calculations look too complicated for you, you can check how Romana King from Money Sense has come up with figures for small and large jobs over a period of 25 years. She divides maintenance costs into two categories: once-a-decade expenses and annual maintenance to keep little problems from becoming major issues. When it comes to regular maintenance, for example, the cost of testing faucets and changing filters is about $20 a year. Updating all plumbing, which is a one-time cost, costs between $4,000 and $10,000. By the same token, replacing door sweeps and the weather stripping around doors and windows (every one to three years) costs between $150 and $500. Replacing three additional doors, which is a one-time cost every 15 years, costs between $2,400 and $4,500. Repainting the exterior every 10 years costs about $3,000, while repainting a car garage every 50 years costs $15,000, and so on (Money Sense).

The Canada Mortgage and Housing Corporation also divides maintenance costs in two categories. There is regular maintenance and seasonal maintenance (fall, winter, spring, and summer). In summer, for example, homeowners should monitor humidity levels and avoid such that are above 60 percent. Humidity below 60 percent is maintained by using a dehumidifier. In addition, home owners should replace or clean ventilation system filters and replace or clean the air-condition filter, if necessary. They should clean rugs and carpets, and more. Seasonal maintenance during the winter includes cleaning or replacing furnace air filters and checking heat recovery ventilators every two months. The humidifier should be cleaned 2 or 3 times during the heating season, and the bathroom fan grille should be vacuumed. In addition, homeowners should vacuum smoke and fire detectors because spider webs and dust can interfere with their proper functioning. Finally, radiator grills on freezers and fridges should be vacuumed and drip trays should be emptied and cleaned.

While this may seem like a lot, it is important to follow good maintenance practices and inspect one’s home on a regular basis. Whether taking care of several tasks at once or a few at a time, it is a good idea to establish a routine and get into the habit of doing them. Having a routine makes home maintenance easier and not very time-consuming (Canada Mortgage and Housing Corporation).

Pawn shops have seen a twenty percent jump in pawns and sales this month as Canadians look for ways to make some extra cash. Store owners explain that this is not unusual, but increasing levels of debt make pawning more popular. Persons who want to take an emergency loan sometimes use holiday gifts as collateral. Thus, they exchange gifts for cash.

Part-owner of Nanaimo’s Stock Exchangers Alayna Gjelsten explains that people do not always get receipts on gifts, and they resort to pawn shops to sell them. She also notes that more people have started placing loans against smartphones, electronics, tools, and jewelry as to pay holiday bills.

People overspend during the holiday season and then need money to pay the bills, said Gjelsten. When clients repay their loans in 30 days, they can get their items back. If they cannot afford to pay back with interest, the pawn shop sells them. The good news is that this does not show on their credit history, adds Gjelsten (Canada.com).

Why do people resort to pawn shops to begin with?  According to assistant professor of marketing Cynthia Cryder at Washington University’s Olin Business School, the reason is that people make wrong decisions when it comes to paying holiday bills and getting rid of debt. Many people choose to close small debt accounts, even such with a low interest rate, and keep paying off large loans with high rates of interest. Research has confirmed this and in fact, participants in a study did not use low interest cards to repay loans with high interest rates (Consumer Affairs).

Paying high interest loans is one strategy to pay off holiday debt. Saving money to repay debt is another way to help you deal with holiday bills. One strategy is to pick an item, for example, a dinner out or a trip to the coffee shop, and cut it out of your budget. This helps save money and doesn’t change life very much (Life Inc). Other ways to deal with debt, apart from pawning useless gifts, include ignoring New Year Sales and unsubscribing. If you maxed out your credit cards, you shouldn’t be shopping even more. You may find deals galore, true, but the fact is that you will be spending money you do not have. Why not spend time with family and friends instead? If you were shopping online for the holidays, your email is probably full of reminders that this week only you can enjoy free shipping or get 50 percent off. While such deals may seem enticing, it is a good idea to get off these lists. You will find great deals in the spring when you’ve paid off your credit card debt and can afford to splurge a bit. Finally, you may want to make a list if you really need tech gizmos, household supplies, or new clothes over the next couple of months. Think of what you are willing to spend and on what and stick to the list. Do not purchase a plasma TV if all you need is a mike for your computer (Rate Supermarket).

A recent study examined the perceptions of clients with smartphone devices and traditional mobile phones in Canada. Customer satisfaction was measured across a variety of factors, including account management, network quality, cost of service, sales process, offerings and promotions and more. The study has revealed that overall satisfaction averages 648 on a 1,000-point scale while cost of service averages 551. In fact, this is the area with which clients seem to be least satisfied.

If you are one of these Canadians, and your phone bill is a huge drain on your income, you may be looking for strategies to lower it. At the same time, it should be noted that clients move toward more complex and sophisticated data requirements and phones, and this causes monthly costs to increase, explains J. D. Power and Associates’ senior manager Adrian Chung (Cellular News).

That said, there are ways to cut your monthly costs, and they come with pros and cons to weigh. One thing to do is bundle your services if you use a cell phone, landline, high-speed internet, and cable. This may be a source of savings if you choose to bundle them with one provider. There are two advantages to doing this. First, providers often feature introductory offers and customer rebates, which are offered to new clients. Second, you will have one bill to pay. There are some disadvantages as well, one being that you will have to sign a contract in most cases. Second, a higher rate may apply once the introductory offer expires, and hidden fees and taxes may apply.

Another way to cut your phone bill is to ditch the landline and use your mobile for all calls. This way, you won’t have your long-distance and local landline plan, but there are some advantages. First, there is one less bill to cover and second, you will be able to take all calls on the go. On the other hand, if your cell phone plan does not come with unlimited minutes, this can be rather expensive. Traditional phones offer better call quality than cell phones, which is another disadvantage to using a cell phone only. Finally, you will be off the grid if you miss to charge your battery. Cancelling the extras is yet another way to cut your phone bill. You can opt for a basic plan, which is not packaged with features like caller ID and call waiting. Then you can add only what you will use. You pay less and can customize your plan the way you want to (About.com).

There are other ways to cut your phone bills. For example, you can use calling cards and toll-free services for long-distance calls. Long-distance charges typically make a large portion of the phone bill. Toll-free number plans and calling cards feature great long-distance rates, which translate into substantial savings. It pays to look at your plan, however. Some plans come with monthly charges or minimum usage times or both. When all minutes are used up, you may be charged higher rates for replenishing your long-distance minutes (Bankrate).

For many Canadians, especially those who apply for a mortgage for the first time, this is the most frightening part of the entire home-buying process. It is about the substantial amount of money they are asking financial institutions to lend them. With this in mind, is it a good idea to use the services of a mortgage broker?

Certified financial planner Rona Birenbaum from Caring for Clients notes that it is recommended to consult a mortgage broker when renewing, refinancing, or buying a house. It is an efficient way to obtain a well-structured and well-priced mortgage. Instead of checking with a number of financial institutions, trying to negotiate with each one, it makes sense to use the services of a mortgage broker who will help with the entire home-buying process. Jessi Johnson, a Vancouver-based mortgage broker explains that brokers have experience dealing with all aspects of a mortgage. This includes finding out how much the client can really afford, choosing the right mortgage product, and offering advice on how to repay one’s mortgage loan faster (The Globe and Mail).

Obviously, it is important to find a good deal with a competitive interest rate, but many people do not know how to go about this. Over 50 percent of Canadians accept the first interest rate their financial institution offers, shows statistics by the Canada Mortgage and Housing Corporation. Not only do applicants settle for the first quote, but most of them do not use the services of a mortgage broker. This is unfortunate because there are other ways in which a mortgage broker can be of help. Mortgage brokers shop around for the best mortgage terms and rates in town and have access to a network of lending institutions. Among them are finance companies, credit unions, trust companies, major banks, and others. Lenders provide mortgage brokers with their interest rates regularly and even on a nearly-daily basis (Bankrate).

This is not all. Mortgage brokers review mortgage loans on behalf of clients a couple of times a year to see if the mortgage can be repaid faster and whether this is still the best financial product for them. It is unlikely that applicants will get these types of services from a financial institution. Persons who have little experience negotiating, have less-than-stellar credit, or are not sure what the right financial product is for them, are also advised to use the services of a mortgage broker. The major advantage of using a mortgage broker is that applicants do not have to approach financial institutions their selves, which is an undignified and laborious task. As a client, the applicant gives information about his earnings and assets, and the mortgage broker scouts the market for the best deals. 

Finally, it is a good idea to call a couple of mortgage brokers recommended by friends or people you trust. This is not a breach of etiquette, notes Mr. Savitt from the mortgage brokers’ association in our southern neighbor. This is one of the most important financial decisions in life, so why not see what everybody has got? (The New York Times)