Top commandants for your personal finance

Personal finance

You can make a lot of money if you do not know how to manage your money, you will encounter difficulties. To manage well your finances is essential to advance and not to be a simple average consumer or even worse to be prohibited from banking. First of all, you need motivation and willpower. If you are about to get your finances in order and optimize them, it’s probably because you have a plan in mind. You need motivation. This motivation can come from goals that you have set, such as becoming financially independent, leaving your comfort zone and going around the world next year., buy an apartment. Whatever your goals, do you find a reason or several valid reasons why you need to optimize the management of your finances. There are plenty.

Wages do not make wealth

Touching high pay every month does not automatically make you rich. Just as being paid more modestly does not necessarily make you poor. “All that matters is the proportion you put aside from your salary.” Your personal savings must follow the principle that they are worth more than your investments. “Pay yourself first before placing money”. The best investment decision would be to impose a high rate of savings. This provides a huge margin of financial security.

Save a little more each year

The trick is to increase your savings rate with every increase at work, for example. And the enrichment strategy will remain incomplete if you do nothing to improve your professional career. “Too many people are stuck in this state of mind that they cannot find a better job, take on more responsibility or earn a higher salary. It’s insane. Moreover, no one should think about retirement, but each of us should aim for financial independence. “The goal should not be to do everything to get out of the sun. But rather to reach a level where you no longer have to worry about money.

Money outflows or expenses

This corresponds to every transaction where you lose money. These are your current expenses such as rent, shopping, transport, telephone … But it can also be a week of vacation punctually or money that you spend on an investment or a credit that you repay for example. In short, it’s negative on your account.

Inputs of money or income

This is every time you make money. This is usually at your salary and is often fixed but can also be variable. If you are not in the rat race, you still have money entrances. In fact, the salary is a cash entry, but the money inflow is not necessarily linked to a salary. Example: interest of a stock market investment, rent of an apartment, income from an activity on the internet, sales of furniture you get rid of … In short, it is positive on your account.

The concept of assets and liabilities

Indeed, if you spend money to buy a consumer good whose value will diminish over time, it is not the same thing as buying for the same price a case of wine or a work of art whose value will increase. Yet on your bank account, you may have spent the same amount. Similarly, if you are lent money with a 5% interest rate and you earn money it is not the same.

Yet you will have the same money entry at the moment. You must know how to differentiate an asset from a liability. An asset is something whose value will grow or is likely to generate income. A liability is an expense whose value will decrease. The passive is ephemeral and easy, while the asset is patient and thoughtful.

The importance of savings

Saving makes it possible to build up capital. This capital will then finance any project. This can finance the acquisition of an asset or not. Simply saving is beneficial in the sense that it opens up possibilities and allows you to see each savings a little further. Be careful, saving is very useful for managing your finances, but keep in mind that saving is not an end in itself. Saving for saving is futile.

Establish a budget

To manage your finances, I advise you to establish a budget. Establishing a budget can be done very simply. You must avoid the gas plant and do something simple, clear and legible in order to appropriate it.

Here’s how to make a budget in a few steps:

• Take a sheet and a pen
• List all of your cash entries
• List all of your cash outings
• Define what is fixed and what is variable
• Set your savings goal
• Reduce variable expenses and limit unnecessary expenses
• If you want to deepen you can create categories (leisure, food, house, transport …)

Your budget should not be too restrictive

Be regular and go step by step. If you want to protect yourself into the future, you can establish a forecast based on the existing and accumulated savings. Be careful, saving does not mean living in deprivation all year long. Nothing is good in excess. It’s the same as with food. Rather than impose an ultra-restrictive diet and make a “yo-yo effect”, eat healthy continually giving yourself some pleasure from time to time.

Write all your sources of income

The first rule of debt management is to know your net income. You had to know how much money you make per month to know how to properly plan your expenses. The question you had to ask yourself is: how much income do you have and how much do they bring back to you per month?


Following your budget is important, but we do not want to spend too much time on it. Make permanent savings transfers at the beginning of the month then pay the rent or refund your monthly payment if you have a loan to repay. These actions there, you can do them at your bank.

You simply have to focus your purchases on the goods needed for life. Now, before buying, ask yourself if the product you are buying is vital. If you do not really need a product to live, do not just buy it.

To be successful in your personal finances, you must change your habit and start looking at your money from another angle. You had to write your different sources of income and especially how much each one of them brings you.

How To Manage Your Money: Is It Important?

Manage Your Money

Want to start saving a lot of money right away? One of the questions that afflict millions of families is how to save money every month and spend less money, in order to have more economic resources to set aside for the future or to invest in other activities.

Many times we focus on raising the salary: it is a race for those who take more money from their work without thinking that you can earn a lot simply with small measures that allow you to put aside several thousands of Dollars each year.

If you are tired of always asking the same question, maybe it is good to start reviewing how you manage your personal finances and inaugurate the year with a new mentality and a more pragmatic approach, which will allow you to relax, set up a healthy relationship with your expenses and get to next January with a more smiling portfolio. Thus it is recommended to you that you sit down once a week to analyze what you have in the box, report any entry and set financial goals. “If you want your financial life better, you have to spend some time with your money”. Let us know now how to manage money.

Simple Tips To Manage Your Money

Have you ever asked your parents to explain how to run a house? For example, do you know how much do services like electricity, heating and water cost each month? And how much does it cost to keep a car, shop, pay rent or mortgage? Remember that you also wax lyrical about these expenses, and if you’re going to live on your own you will be you in having to deal with. So you should know more or less how much they amount. Ask your parents to show you some bills and listen carefully as they explain how they set aside money to pay for them.


Better to spend more money on things that last over time, than a few on something you have to throw after some use. A speech that applies to everything from clothes to electronics, but above all to food, eating well also helps you in the future. You will spend less money to take care of your health.

Read a book on personal finance

Learning new strategies on personal finance, on how to save money and achieve the goals of your life, cannot do you good. Knowledge gives you the power to do everything in life, even to save money. It is possible to make those payments linked to the fixed expenses that we expect each month automatically so that we can devote our attention to the more flexible ones and avoid penalties for late payments.

Set goals

Be specific in setting your goals and reach them with determination and discipline. In the long run, you could lose motivation in your savings strategy, so it is good to trace every little achievement and progress, in order to always be pushed to continue on the path. In case of holidays, car damage and emergencies, you always need to set a goal.

Work more

Working more will help you understand the value of money and will take time out of making unnecessary purchases. But this strategy works only if you love the work you do. Social networks make you run into the profiles of people who lead luxurious lives that are not yours. Do not be tempted to imitate their standard of living to impress someone. Consider what your goals are and go straight to your way.

Track Your Expenses

Now that you have a clearer view of your revenue and expenditure streams, you can start building a budget. Budget is the first step to manage money effectively. Determine the amount you plan to spend each month, divide it into categories (food, transport costs, entertainment, but nothing too brainy) and challenge yourself trying to stay within the figure – a goal that you have set yourself. Moreover, cutting your expenses radically can be sustainable for a short time, and then it becomes annoying (and depressing).

Here are some other tips that can help you if you have a credit card.

• Write down your purchases and carefully compare your monthly statements to make sure that you’ve only been charged for the expenses you’ve actually made.

• Pay your bills immediately. If possible, make a total payment.

• Be very careful when transmitting your credit card number and expiry date on the phone or online.

• Do not use a credit card to easily get cash. Cash advances are usually subject to interest rates.

• Never lend your credit card to anyone, not even a friend.

How You Spend?

Now that you’re a little more aware of how you handle your money, try to set yourself goals by choosing in advance how to spend them from now on. Then make a list of the things you’d really like to spend your money on, and I recommend, do it by imagining being very rich and not thinking about your real possibilities at the moment. This is very important because you often tend to throw away money in things that give instant gratification rather than keep them for what really matters to you, and the result is that you feel poor because you can never afford what you really dream of.


So take the habit of sitting down once a week to check and take a look at your bank balance, keep your attention focused on your budget, if necessary, review your list periodically as your priorities change and keep the focus on your relationship with money, perhaps by reading some interesting book about it. Instead of being embittered for the money you do not have, why do not you learn to manage what you have? Perhaps to learn how to manage money, you are going to live on your own. But think, would you throw off a plane without knowing how to use the parachute? It is true that one could understand how it works while rushing to the ground, but it is much better to learn the basics of the use of the parachute before launching.

How To See My Credit Score And How

Credit Score

Every time you use credit, the lender assigns you a rating. This dimension consists of a number and a letter.

For credit the number varies from 1 to 9. A rating of “1” means that you make your repayments within 30 days of the due date. On the other hand, a rating of “9” means that you are no longer paying your debts, that you have submitted a consumer proposal or that you have declared bankruptcy.

The “I” refers to installment loans (for example, car loans);

The “O” refers to any type of open credit (for example, a line of credit or a student loan);

The “R” refers to revolving credit (e.g. credit card).

How is this score calculated

Calculated over the last six years, its true formula has never been revealed but we know the distribution of the financial information that is taken into account to calculate it:

35% – your payment history

30% – The amounts due

15% – the length of your credit history

10% – new credits

10% – the types of credits you have contracted

How to improve my credit score

Once you have done this calculation, you will get a rating from 300 to 900. Above 760, your credit score is considered excellent and it will be very easy for you to get credit, mortgages and loans for loans. Between 700 and 759, your score is very good and between 651 and 759 it is correct but the loan will cost you more. Below 650, your credit is considered bad and it will be very difficult for you to get credit after your bank. For the check my credit score this is a very important matter.

There are, however, a variety of techniques to apply to keep your score highest or improve it quickly.

Pay your bills on time

It may sound silly to say, but simply paying off your balance before the deadline can have an almost instantaneous impact on your credit score. If you pay online, do not hesitate to send your transfer three business days before the deadline so that your bank has enough time to process your payment.

Do not wait

The credit bureaus take into account the deadline for payment but also the date on which you received your invoice. The closer to this date you pay, the better your score will be. If you have the money, do not wait 21 days to pay your debt.

Do not exceed your credit limit

If your bank has granted you $ 2,000 credit limit then stick to it. Exceeding even $ 5 can have an impact on your score and can cost you a lot.

Avoid store credit cards

Several brands offer credit cards to their names however their interest rate is often much higher than that offered by banks (29% against 19% on average). In addition, they are often poorly viewed by credit bureaus.

Do not use all your credit

A good way to quickly increase your credit score is to not use your entire credit pool. If you can try not to exceed 50% of the amount allocated to you. The ideal is to use only 30% or even 10% if you want to achieve an excellent credit score.

Diversify your credit

In addition to the credit granted with a card, do not hesitate to take a personal loan, a mortgage or a loan for the car. Your ability to repay several different types of credits is taken into consideration when calculating your score

Check the errors

21% of Canadians have errors in their credit report. If you see one (late payments that were not your fault, an incorrect credit limit, accounts that are still marked as unpaid), call your credit bureau to correct them. These kinds of mistakes can penalize you.

Do not close old accounts

15% of your credit score is calculated taking into account the duration of your credit. This means that having a credit history for several years has an impact on your rating. If you have an old credit card, keep it. It will not cost you more and it will have a positive impact on your score.

Do not delay to find your next credit

Ideally, do not take more than 14 days when shopping for your next credit. The credit bureau will analyze the access to your credit history by the different creditors as one and the same request instead of several.

After reading these tips, you should know how to check your credit rating, order your credit report and improve your credit rating. That may not mean much to you, but your financial situation will be better.

Conclusion: what does my credit file contain

The slightest mistake in your file could taint your financial profile and have major consequences on your ability to borrow. Thus it is recommended reviewing your credit report each year for three reasons:

• To ensure that personal information has been updated.

• To verify the accuracy of the information indicated therein.

• To be certain that you have not been a victim of identity fraud.

Your credit report is neither more nor less your financial footprint. Your payment history, bank account history, and credit file inquiries are recorded. It is in your interest to know what is in it and to make sure that it remains accurate. What’s more, you can access it for free.

Prepare your Retirement Abroad

Retirement Factor

To retire abroad has become an attractive alternative that allows happy days to flow in countries where the cost of living is more attractive. In this article, you will came to know about some important retirement factor to consider before moving out as a pensioner.

In which country to emigrate

This is a crucial retirement factor because choosing a foreign country to retire requires lengthy preparation at a personal, financial, tax, etc. level. The choice of the country depends on each one and this according to their preferences and their budget.

A tip: to avoid a possible cultural shock too important resulting from a mis planned expatriation, it is advisable to learn about the culture, habits, climate, etc. country of his choice, but especially to go there for a few weeks before making the final decision.

How to collect your pension abroad?

At the level of the pension, the amount remains unchanged, whatever the country chosen. The formalities to be completed are very simple, because to receive his retirement in another country, it is sufficient to inform the National Old-Age Insurance Fund and the Pension Fund of his constituency of the change of residence. The regular sending of a certificate of residence to the Pension Fund will be necessary to collect his pension.

If there is a social security agreement between USA and the host country, the pensioner will only have to withdraw his pension from the local body responsible for old-age insurance which will serve as a liaison with the USA credit union. If this solution is not available, it is the USA fund where we have contributed that will send the pension directly.

To receive his pension, the retired expatriate can either open a bank account in his host country to receive the amount of his retirement, or collect it on his account in USA and make a transfer thereafter.

Retirement abroad, what about the tax benefit?

Living abroad is a good alternative for pensioners who wish to benefit from a reduction of the tax burden, because the change of address implies a change of tax domiciliation. As a result, the pension is no longer subject to CRDS and CSG. On the other hand, it may be subject to local taxation; which is more or less interesting, fiscally speaking, depending on the host country. It should also be noted that a social contribution of approximately 2.8% can be applied to the source.

If the retiree’s economic interests are in USA or if he stays there more than 183 days a year, the taxes will be levied in USA. If this is not the case, the tax will be made according to the tax convention linking USA to the host country. Attention, it is important to note that if no convention is in force between the two countries, the pension could be subjected to double taxation.

And health coverage

As for health coverage, which is often the main concern of pensioners wishing to reside abroad, it differs from one country to another. If the host country is part of the USA, the pensioner can benefit from local health coverage. Otherwise, he must pay a lump sum or a contribution equivalent to 3.5% of the amount of his pension with the CFE from abroad.

There are also insurances for retired expatriates who act as a supplement to the CFE scheme. In some cases, particularly in countries where the cost of medical care is high, these can be very useful. It must be taken into account that the CFE reimburses medical care based on the reimbursement rates of the USA Social Security. In many countries reimbursements from the CFE may be insufficient to cover all care. In addition, this type of insurance offers assistance and civil liability guarantees that are not covered by the CFE.

More information

• Preparing for retirement abroad – File from the Ministry of Foreign Affairs and the House of the USA

• Retirement abroad: the social cover varies according to the country on Capital

• Are you a retired expatriate or are you thinking of becoming one? Feel free to share your experiences or comments.

Conclusion: Diversify your savings

Saving for retirement is a retirement factor that must be considered in the long term. The best is to start young, investing his first premiums for example, then diversify his basket over his life. The classic behavior would be to invest in real estate as early as possible (between 25 and 35 years) up to 80% or 90%. The rest is to be invested in financial products such as stocks, bonds or life insurance.

As you age, you can increase the share of financial products and reduce the share of real estate that you acquired younger and that allows you not only to release a financial windfall but also to tax your income according to certain laws.

When the retirement age is reached, it is best to stop risky investments (equity type) to focus on life insurance and annuities of your real estate. This is described as “classic” behavior. If you have questions you may discuss it with the experts.