3 things to never do in a grocery store

1. Don’t choose items from the Middle Kingdom

Items placed at eye level catch your attention first. Retailers are wise to this and typically place the most expensive items front and centre on the middle shelves.

For better prices, shift your focus: check out the top and bottom shelves. Similarly, the middle aisles are usually the ones filled with convenience foods and packaged goods. Stick to the perimeter of the store for your fruits, vegetables, meat, fish and fresh bread. Venture into specific middle aisles only on an as-needed basis. The common tactic of strolling up and down every aisle just to see if there’s anything you need is a recipe for overspending.

2. Don’t give in to the kid factor

When confronted with a toddler meltdown, you might be willing to buy anything just to stop the madness. Kids of all ages (spouses, too, occasionally) can be a challenge in grocery stores.

They distract you from your list and the prices of the items you are choosing. They get impatient, leading you to start throwing items in your cart just to get the job done. And sometimes they throw their own highly processed, over-priced favourites into the cart as well.

If you can, try to shop without the kids until they are at an age at which you can make the trip an educational and interactive experience, teaching them about food choices and price comparisons.

3. Don’t shop when you’re hungry

It’s incredible how a craving for Doritos can sneak up on you. You leave the office or finish up at the gym and you stop at the supermarket to look for ideas for dinner. By the time you get to the checkout, you’ve got all the ingredients to make a heap of baked nachos, a frozen pizza and duck à l’orange with crème brûlée for dessert. Plus two new kinds of breakfast cereal and a box of fat-free chocolate coconut bars. Hungry much?

When you’re starving, everything looks good and just the suggestion of a certain dish can stimulate an instant craving. If you find yourself stuck having to go to the supermarket on an empty stomach, grab a (lower-priced) energy bar to munch on while you shop — you can pay for it with your other groceries.

Monthly Home Budget Considerations

Whether you are buying your first home, trading up to accommodate a growing family, or even downsizing, one of the most important things you must do when house hunting is create a monthly budget. A budget is simple to put together and will help you avoid financial headaches in the future.

In order to create your budget, the first thing the experts will recommend us to do is make a list of all our current monthly obligations. Start with items that will likely continue after we have bought the house, such as credit card payments, student loan payments, car payments, retirement saving contributions and so on. Now add in the discretionary spending such as the latte we get every few days, the dining out with friends and the money we are setting aside for a vacation. Are there things that we are willing to give up that would free up some cash to put towards the mortgage? After looking closely at our own budget, how much do you have left over, and how much of that are we comfortable putting towards a mortgage payment?

At this point I think it’s important to introduce the term "Total Debt Service," or TDS for short. This number is the result of dividing all our monthly obligations by our gross (before tax) income.

Here is an example of a TDS calculation: Assuming the gross monthly income is $6,000 (before tax) and the monthly expenses include:

$1,500 Mortgage payment
+ $400 Property taxes & Utilities
+ $200 Credit card bill
+ $400 Car lease payment
= $2,500

Total monthly obligations $2,500/$6,000 gross monthly income = 41.6%.

TDS is important because it determines what we can afford, and lenders use this number to qualify us for a mortgage as well. Technically, the lenders has a limit of 40%, but generally the cut off point is 42% to 44%. If you are applying for a mortgage and your TDS is higher by a per cent or two, be sure you can back it up with an excellent credit score and a down payment of at least 20%.

There are a number of online calculators at your disposal and they will help to determine the maximum mortgage payment we can afford. Now ask ourselves, do we want to max out on your mortgage payment? Most online calculators do not have space to put your morning coffee in or your gym membership or the tickets you bought for TIFF. The reality is that most of us will have to sacrifice some of the fun things in life to own a home, but don't let your mortgage payment control you.

First Time Home Buyer Reality Check - Affordability

As I mentioned in my September Net Worth Udpate, I am planning to start my property hunt for the first time. So, first question comes into my mind is, "what can I afford"?

There are two types of costs in buying a home -- the initial down payment and the ongoing monthly mortgage payments. The largest one-time cost is the down payment.

When purchasing a home, there are also many one time costs and monthly expenses that I will need to budget for in addition to the expenses that I have while renting.

One-time Expenses:

Property inspection (optional), due at time of inspection
Legal fees, due at the time of closing
Legal disbursements, due at the time of closing
Property survey (sometimes provided by seller), due at the time of closing
Mortgage interest adjustment (if applicable), due at the time of closing
Home and property insurance, at closing and ongoing
Moving expenses, due on the date of move

Monthly Expenses:

Mortgage payments
Maintenance/Condominium fees
Property and content insurance
Property taxes
Utilities

10 Ways to Cut Your Moving Costs

Moving can be a very chaotic and expensive task, one that needs to be accomplished very carefully. A move carried out in haste can bring about several unnecessary problems. Almost everyone looks for cheap movers. After all, most of us want to save on out of pocket expenses but there are several disadvantages of selecting cheap movers. There are professional moving companies, who offer competitive rates that are easily affordable by everyone. However, there are certain techniques or methods of preparation that can also help you minimize your expenses.

When planning your moving budget, it is very important to keep a check on the outflow of cash. This will make you better prepared to understand the unnecessary expenses. Create a budget template in Excel or Microsoft Word—this will make your calculations easier.

Decide if you will hire a professional moving company or you will do it yourself. If you are hiring a mover, collect quotes from at least three different professional moving companies and include the highest quote in your budget.

Check all the items that you are moving. This will help you evaluate if you need more insurance because the default insurance offered by movers might not be sufficient for you. Along with added insurance, find out if you require extra services.

Because of rising fuel costs and a shortage of drivers, the cost of a full service mover has risen in the past few years. Anything you can do yourself—even if seemingly small—will help cut your moving bill and give you extra money to spend on other relocation costs (like the pizza and beer for after your move).


1. Reduce your load. Get rid of household items that you no longer need. Hold a garage sale and leave books with friends, the local library or sell them to a used bookstore. Anything you can't sell, give to a local charity. Weight equals money. The less weight, the less money. It's that simple.

2. Pack it yourself. Packing services performed by the mover are expensive and could amount to 25% of the moving cost. Even if you don't want to pack it all yourself, you can always do a partial pack, and have the movers handle the rest. For example, items that are nonbreakable such as linens and bedding can be packed easily without the risk of damage. Every box you pack yourself is money in your pocket.

3. Save on packing. Luggage and carrying bags are perfect for packing sheets, towels and clothing. Also, the bottoms of wardrobe boxes are great for bulky, lightweight items. Be wary of packing tips that might save you money initially but won't protect your stuff, for example, using newspaper instead of bubble wrap. Sure, it might save a few bucks, but in the end, is breaking something worth it?

4. Drive your own moving truck
Using a full service moving company is extremely expensive. You can rent your own truck and hire movers to help load up and unload.

5. Recruit help from friends or family
If you have friends or family in the area, getting them to help you load up and/or unload is a blessing, because it saves time and money. If you’re going to recruit help, make it a fun event. Order some food, and make it a moving party.

6. Avoid the busy season. If you are using a full service moving company, avoid June, July, and August as these are the most expensive months to move because of demand for moving services. Also, try to plan your move during the middle of the month—rates are higher at the beginning and the end because of the large number of apartment leases with month-end dates. If you can be flexible with your move-in times, you can also save money because the moving company can combine shipments.

7. Get organized. Time is Money. Color-code boxes according to the room they belong in so they all end up in the same place, saving time for both you and your mover.

8. Avoid storage costs by moving into your new property immediately and make sure that you have payment ready for when the truck arrives. Any delay could result in storage-in-transit fees if your things have to be stored until they can be unloaded and after the move is paid in full.

9. Make sure you are insured. Your existing homeowner’s insurance policy might cover your move so you don't have to buy additional moving protection.

10. Your move may be tax-deductible. Keep all receipts and visit the Canada Revenue Agency's website for specific details about which moving expenses you can claim, or consult a professional accountant to maximize your tax return.

5 Steps to Prepare Your Holiday Spending

Whether it's planning for Christmas, Hanukkah, a big New Year's Eve Bash, or a pricey winter vacation, the time is now to get your finances in order to avoid debt and regrets that can lead to the holiday blues. The season of gift-giving and fellowship too often creates the spirit of giving far beyond what you can realistically afford. However, if you start now you can be holiday guilt- and debt-free with the new year. Here are five ways to stay on track.

1. Make a list and check it twice. Record everyone on your gift-giving list and be sure to check it twice. Set recommended amounts and then keep track of spending along the way. Recognize that over-spending in one area means that you MUST reduce costs in another...a notion that is easier said than done when you're in the throes of the holiday spirit. Check your list for necessities and consider changing the amount of a gift if your budget is looking tight. Remember, it really is the thought that counts!




2. Create Expectations and stick to your budget. OK. You've got your magic budget number. But, unless everyone is willing to stick to it, then the target is for naught. The key is to communicate with family members and begin planning now to avoid last-minute weaknesses and over-buying.




3. Use cash. Nothing will keep your spending in check better than using cash. Overspending becomes obvious because your cash will only go so far.People often spend 3 to 4 times more when using credit!Again, take your lists with you when you shop, stay within the dollar range you set for everything you have on your list, and pay cash for all holiday purchases.hen your cash is gone, stop shopping!




4. Don't wait until the last minute. Start thinking about gifts and menus and activities, and everything holiday related early (well... NOW!). Give yourself time to comparison shop, catch holiday sales, and find the best deals. If you have something in mind, and the price is right, get it now. Don't wait and run the risk of it being out of stock, and then you'll have to scurry around to find a substitute and could wind up spending more. The closer it gets to the holiday, the more hectic its likely to get. Avoid the stress and pressure that comes with waiting until the last minute and causes you to overspend.




5. Write down what you spend. Write down the amount you spend on each and every thing, regardless of the money source: checkbook, credit card, debit card, cash, or gift cards. No matter where the money comes from, it all counts toward how much you're spending overall. When you write down everything you're spending in black and white, and keep a running tally, it's a lot easier to recognize when you're getting out of control and need a spending reality check.

I hope you find these holiday spending tips helpful. If you use some of them, or all of them, be sure to let me know how they worked out for you!

Also, don't forget to share these tips with your friends, family members, and associates so they can stay out of holiday spending trouble too!