When you can't afford much for Christmas it is easy to feel down and let it get in the way of having a great holiday with your family. This year, if you find that you just don't have the money in your budget to do everything you wish you could, take time to appreciate what you do have and make the most of Christmas anyway.
Focus on the Meaning
The most important part of coping with a tight budget during the holidays is to really focus on the meaning of the holiday. Christmas is a time of celebration for all and a time to turn our focus from our busy lifestyles to our friends and family that mean so much to us. Focus more on how you are spending your time than how you are spending your money and find the joy in the little things.
Find Fun Freebies
Find fun free things to do that will build lasting memories. Many libraries will offer great free Christmas story times, activities, and parties. The local schools will all have performances going on that you can visit and support loved ones. Going and viewing Christmas light displays, singing carols, and building snowmen are all great ways to spend time together making Christmas memories without spending money.
Get Crafty
Save money and make your holiday decorations at home with salt dough ornaments, paper snowflakes, and fresh cut evergreen branches. This is a charming way to decorate for the holidays while building great family memories that will last a lifetime.
Create family-centered traditions like watching Christmas Movies while sipping homemade cocoa or reading Christmas books before slipping off to bed on a cold winter night. Your traditions can be anything you already have the supplies to make happen without spending any money.
Wrap Everything!
For children when unwrapping gifts is the most exciting part of the holiday try wrapping everything even the smallest stocking stuffer. This will draw out the fun part for children even when you don't have a lot under the tree.
Focus on Others
Turn your focus on helping others. So often it is hard to see past our own struggles and misfortunes. By taking time to help others in some way you are helping your family learn to look at your holidays with thankfulness for all the things you do have while helping make Christmas a little brighter for others at the same time. Even if volunteering with the needy at your local soup kitchen or food pantry is not an option you can perform random acts of kindness for others.
I'd love to know your ideas for frugal holiday memory making. Let us know in the comments below!
The end of the year is rapidly approaching. A new year is the perfect time to fix any financial mistakes you’ve made, and any bad spending habits you may have to set your family and your budget on solid ground for the upcoming new year. If you’re like most people, you may not know how to begin fixing those issues. These 10 frugal tasks you need to do before the end of the year are a great place to start.
10 Frugal Tasks to Do Before the End of the Year
Do a financial audit
If you’ve never done a yearly financial audit, now is the time. To do one, download all of your bank statements for the year. Go through each one and make a list of the unnecessary expenses you had. Total them up. This will allow you to see just how much money you wasted this year hopefully making it so you can fix it next year if need be.
Reconciling Your Checking Account
These days most people don’t write checks, which means they also don’t reconcile their checking accounts. This is a bad idea because you can easily miss fraudulent transactions, wasted money and more. If you haven’t done it recently, make certain you reconcile your checking account before the end of the year.
Find new ways to reuse things to save money
Reusing something instead of throwing it out is a great way to save money. Before the year ends, find ten or so new things you can reuse to save. Doing so will set you up to start the new year saving instead of spending. This post, 25 new uses for old things, is a great place to start for ideas!
Try Menu Planning
If you’re not already, give menu planning a try before the end of the year. Not only can it save you time, but it will also help you save money on your grocery bill. It doesn’t matter whether you plan for a month or a week. Anything will help if you’re not already doing it. In our family, I have incorporated a 20 meal rotation for dinners. Kids are picky, so this ensures most of the meals will be enjoyed by everyone because I have picked favourites for the rotation.
Try Freezer Cooking
Along with menu planning, give freezer cooking a try before the end of the year. It saves time, money and stress for you! The easiest way I have found to start freezer cooking, is to made a big batch of dinner one night and freeze the leftovers. Spaghetti sauce and taco meat are some of my favourite leftovers to freeze.
Once a Month Grocery Shopping
Part of the reason you may be having trouble saving on groceries is because you’re in the store more often than you need to be. That’s why it is important to give once a month shopping a try before the end of the year. When you’re in the store less often, you spend far less money. Once you try it, you’ll very likely never go back.
Budgeting
Another major issue most people have with their finances is not making a budget. If you’re not currently making one each month, give it a try before the end of the year. Make sure you stick to it for at least one month. I think you’ll be quite surprised by the changes you see. The Budget Planner that I have made is a great way to get started with budgeting.
Cut Unnecessary Subscriptions
As you’re reconciling your checking account, be sure to keep an eye out for any unnecessary bills you’re paying each month. This usually happens in the form of a subscription. If you haven’t used it in the past 30 days, you do not need to be paying for it.
Work on Cutting Utility Bills
Aside from groceries, utility bills are one of the highest expenses a family can have. Before the end of the year, take the time to work on lowering them. Put your lights on timers. Fix any leaky faucets. Cut your shower time by 90 seconds. You would be surprised at how much savings those little changes can really add up to.
Get Your Car Tuned Up
Car maintenance is very important to keep your car from becoming a money pit. Before the end of the year, be sure it gets a tune up. This includes an oil change if needed, tires rotated, battery checked and other routine tasks. By keeping it maintained, you’ll set yourself up for a new year with a great running car.
So there you go. 10 frugal tasks to do before the end of the year so you will be well on your way to a more financially secure future! What's the first thing you are going to work on?
Today, I'm going to start out with a few points about the benefits of budgeting. For those of you that already have a budget set up, this may be confirmation that it is a good thing, but for those of you that don't have a budget, it may present some points that will give you the push to get started.
A Budget Will Help Identify Where your Money is Going
First and foremost, a budget will allow you to identify where exactly your money is going. You'll see just how much is going towards bills, clothing, entertainment and everything else you spend your money on. This is important to know if you want to gain any sense of control over your finances.
A Budget Will Help you to Control Your Money
Once you have identified where your money is going and you make a budget, you may be some hard choices to make at first. Maybe you realize you need to move to a more affordable house. Or maybe you discover that drinking a Starbucks latte everyday is keeping you from taking your dream vacation. It can be hard to accept that you can’t have it all. But once you get past that point and realize that by cutting a few expenses here, can allow you to spend more over there, budgeting doesn't seem so bad. It allows you to prioritize what is important to you, and then live by those priorities.
A Budget Will Help Guide you in Planning Financial Goals
A budget is a plan. A plan for where you want your money to go. Say you want to do a bathroom renovation next winter. Unless you plan to set aside money every month, you won't be doing that renovation. (Unless of course, you take on debt.) Without a plan, the money can too easily be spent on $100 trips to the mall. Having a budget helps you to plan and stick to your financial goals you hope to achieve.
A Budget Will Help you Prepare for Emergency Expenses
Having a budget will allow you to allocate money to an emergency fund for those unexpected situations that are bound to arise in your lifetime. A broken furnace, vehicle repairs, or an unexpected trip to visit an ill relative, to name a few. When you don't have a budget, it's easy to forget about those extra expenses that will most likely arise at some point in the year.
A Budget Will Help Give you Peace of Mind
Having a budget is what ensures you'll have enough to pay your expenses. Since you've set aside money for your day to day expenses, annual property taxes, income tax, emergencies and what ever else you know is necessary in your life, there's no need to stress or loose sleep.
A Budget Will Help you Feel Less Guilty about Spending Money
Once you start budgeting and tracking your finances you might find that you feel less guilty about spending money. Knowing that you have set aside $75 a month for clothing, for example, you don't have to feel badly about spending it all or a portion on a pair of shoes that you fell in love with. When every dollar has a purpose, you can feel much better about spending in general.
Having a budget is freeing, because you make the plan. It’s customized to your needs and wants. It’s also not set in stone. If you find that you miscalculated when you set the food budget, readjust. That’s the beauty of it. It’s your budget. Your money, working for you!
What are some other benefits of budgeting? Do you have any stories to share about how budgeting "saved" you?
If you have ever watched any home decorating show you have probably seen the amazing homes showcased. It's easy to get caught up in the fact that your home might not look so professionally done. However, you can have a beautiful home that is stylish and done on a budget! With nearly any budget you can make your home stylish and welcoming. Also keep in mind that simple, timeless decorating is typically what looks the best in any home.
Paint
Purchasing paint is fairly inexpensive and can change-up the look of any room. If you are ready for a change and don't have a lot of money, consider painting. Even just painting an accent wall can turn any home from dull to very hip and stylish! Don't be afraid to try out different colors. Most paint stores will give you little amounts of paint to take home to try out.
Rugs
One way to bring drama or simple coziness to a room is by adding rugs. However, you don't have to go out and pay for expensive rugs. In fact places like Amazon, Wayfair, Walmartand Home Sense are all great places to find very large and beautiful rugs on a budget. Try to pick out a rug that adds color as you can find other accents based off of the colors in the rugs. If your rug has some red and purple in it, look for red and purple throw pillows for your couch.
Lights
Lighting can make or break any room. You want to make sure you have the right amount of lighting for tasks and ambiance. Don't be scared of trying out different lamps. Adding some pretty lamp shades, stand up lamps or even recessed lighting can turn your room into a stylish one.
Wall Art
There are different price ranges when it comes to wall art. You can really dig into the bank account and hit up a gallery or you can go the more budget friendly route. Look for wall art at garage sales, discount stores and even at your local mall. You can also just make your own wall art with family pictures blown up onto canvas. Or, make a beautiful printable and frame it. Wall art is an area you can really get creative since it isn't permanent.
Decor
Using decor to bring some style to a room is easy and affordable. In fact just adding in some simple things like throw pillows, inexpensive curtains, candles and plants can really liven up any room. You can find these items at second-hand stores, garage sales or re-purpose what you already own.
How are your creating your stylish home on a budget?
This post is a sponsored post by Sun Life Financial written By Brenda Spiering. See my disclosure policy here.
Saving for retirement is likely one of your top financial priorities. But did you know that how you save can be nearly as important as how much you save? Choosing the right retirement savings account can have a huge impact both on how much money you save and how much tax you pay. So, how do you choose the best type of account?
How to choose the right retirement savings account
When to choose an RRSP
When it comes to saving for retirement, RRSPs (Registered Retirement Savings Plans) are pretty hard to beat. Contributions are tax-deductible, investments grow on a tax-free basis within the plan, and RRSP funds aren’t subject to tax till they’re withdrawn from the plan.
If you expect your current income is going to be greater than your income in retirement, an RRSP is a great option. It will provide you with a tax deduction that can help reduce your current income taxes. Plus, if you’re in a lower tax bracket when you draw the money out, it can help reduce the overall amount of income tax you pay.
When to choose a TFSA
TFSAs (Tax-Free Savings Accounts) are a great retirement savings account option if you’ve maxed out your RRSP. While you won’t get to claim your contributions as a tax deduction, the investment growth is tax-sheltered and there’s no tax payable on withdrawals.
The fact that withdrawals from a TFSA are not subject to income tax also provides an advantage if you expect your income in retirement to be greater than your current income, since TFSA withdrawals do not reduce income-tested benefits like old age security benefits. Also, unlike RRSPs that you can no longer contribute to after Dec. 31 of the year in which you turn age 71 (or, in the case of a spousal RRSP, the year in which your spouse turns age 71), you can continue to contribute to a TFSA as long as you wish.
How much can you contribute?
Both RRSPs and TFSAs have contribution limits. In the case of RRSPs, you can contribute up to 18% of your previous year’s earned income up to the maximum limit set each year by the Canada Revenue Agency (CRA) ($26,230 for 2018), plus any unused contribution room carried forward from prior years.
Since 2016, the annual maximum contribution limit for TFSAs has been $5,500, however, you can also contribute for any past years in which you didn’t contribute, back to 2009 when TFSAs were first introduced. If you’ve never contributed before, you’re currently eligible to contribute a maximum of $57,500.
A great way to determine how much you need to save for retirement is to use a Retirement Savings Calculator. It can help you set an annual savings goal based on your current age, expected retirement age and desired income in retirement. Plus, it can show you the impact of contributing to different types of retirement savings accounts.
Kids are not immune to money talks and they can understand finances and the value of money at a much younger age than many parents realize. Some experts even think that a child’s views on money is set by the time they are 10 years old, some as young as five or six. How you talk about money in front of them, and how you set the example for budgeting and saving is very important to how your child will form their own opinions about money.
This means if you want to start teaching your kids to budget and save, it’s never too early. There are some steps you can take when they are still very small, and then the money lessons can grow with them as they get older. We’re going to look at a few ways to help kids understand budgeting and saving.
Here are some ways you can teach kids to budget and save
Use a Piggy Bank
For younger children, use a money jar or piggy bank. Let them see the money they are saving and have a visual of it as it's growing. Since many people do nearly all their finances digitally now, it may be difficult for a child growing up in this generation to really understand money that they never see.
Set an Example
You know those little eyes are always watching so show them how you budget and save. If you’re not already doing it, create a plan and get started. If you’re already doing it, but they just don’t see it, let them be involved in the process. Talk to them about the household budget. Explain what you’re doing when you go shopping together for groceries. Make talking about money, budgets and saving with your children an ongoing conversation in your household. This is how they learn.
Show Comparison Costs
For older kids, you can start showing comparison costs. “That video game costs as much as a new pair of sneakers”, for example. Or you can give them a commission, rather than a typical allowance. Pay them based on chores they do around the house and increase it based on the number and complexity of the chores they do. This will also teach the value of a dollar, the importance of working for and saving for what they want.
Teach them about Credit Cards
Explain how credit cards work. In addition to explaining that credit cards aren’t just “free money”, you also need to explain how easy it is to get in debt and why credit cards are dangerous. Explain what responsible use is long before they are old enough to have their own. Also, show by example.
Now that you have these ideas on how to teach kids to budget and save, you’re ready to start applying them. If some or all of them don’t work for your family or your kids, that’s okay. Just use the ones that do work, or make modifications to these suggestions so that they do work for you! If you're looking for even more tips and advice, check out Money Smart Kids by Gail Vaz-Oxlade or Smart Money, Smart Kids by Dave Ramsey. Both books are highly rated!
What are some ideas that you have successfully used with your kids? Let us know in the comments below!
