5 Tips to Reduce Heating Costs.

When it comes to the winter season, it can be easy to go overboard when it comes to heating – but there is a better way! With a little awareness – and the right preparation – heating your home this winter won’t have to cost you a fortune. To help you save, we have put together a few helpful tips to reduce heating costs:

1. Inspect Your Heat Sources – Regardless of whether you rely on a fireplace, gas or baseboard heating, it is always a good idea to have all heat sources inspected for efficiency.

2. Check Your Fireplace – It is recommended to keep your fireplace damper closed, unless there is a fire burning. Otherwise, it is the same as having your window wide-open during the winter! For those of you with a fireplace you never use, now might be a good time to plug and seal the chimney to keep warm air from escaping.

3. Manage Your Thermostat – As tempting as it is to turn your heat all the way up in the winter, proper thermostat management will help you save costs in the long run. A thermostat with a timer is a great option to help you save this winter. Turn it on earlier so the room heats up in time for use, instead of cranking the heat when you need to get warm quickly and have it turn off 30 minutes before bed or before leaving the home. If you find you are chilly at night, a safely positioned space heater and closed door is a far more inexpensive choice.

4. Close The Door – To keep your heating system from working too hard, close doors when rooms are not in use. This prevents heat transfer in and out of vacant rooms, and will ensure the space you’re currently using remains warm and cozy.

5. Be Mindful of Drafts – Checking for drafts is another important way to reduce heating costs. If you notice any issues, using a weatherstrip or caulking to seal doors and windows is a relatively inexpensive fix that can have a huge savings impact on your heating bill.

Published by DLC Marketing Team

Last month, I went over some helpful tips to establishing your credit, as a new person to the game. This month, I would like to go over how to continue increasing your credit score. If you did not read the previous entry, you can find it here. 

To briefly go over what was discussed before, if you are new to establishing credit, a good way to go about it, is to start by getting yourself a credit card!  Once you have your card, start using it for your mundane purchases. Such as, grocery shopping and things like that. Ideally, you want to be spending money from your credit card, that you already have access to in your own personal banking account. Then pay off that balance right away with the funds from your bank account. This, in turn will eventually strengthen your credit score. This is because you should be receiving high points, for the biggest hitting categories. Those categories are payment history and utilization. These two categories take up 65% of your overall credit score! 

Now that we are all caught up, how can we continue to strengthen our score, in regards to applying for a car loan, or a mortgage, for example?  To start, you will want to be working at the same job for at least a few years. The years you have working at your current employment does not so much effect your credit score, but it does play a factor in the decision-making process of if a lender is willing to lend.

Now that you’ve had some practice in using your one credit card to build your score, it’s now time to tweak your strategy a little bit.  It is time to get yourself another credit card! When your credit is being pulled, to see if you qualify for products, it is important to have at least two trade lines, with one of them being a major player. For example, two major credit cards should do the trick. Like Visa, and Mastercard. 

Now that you have two credit cards, you want to apply the same principal you did with the first card, to both. However, here is where the tweak will come in. Instead of paying off the cards right away, after using them to make a purchase. What you will do first is run up at least 30% of each card. Sounds fun right! You’ve earned it at this point, time to go spending!  So, for example, if your card has a balance of $500, then you will not want to go passed the available balance of $350. You only want to spend $150 of that $500 balance, this is 30%. Once both cards are at 30% of the balance, just continue to maintain good payment history. Be sure to make your minimum payment every month, and on time! This is key, to building good credit. This cannot be stressed enough. Be sure to make your monthly payments and make them on time! Other than that, just make sure your cards do not go over 30% of the balance, and you are sitting pretty!

This, in combination with your working history, will help you secure that car loan, or mortgage in the future!  Again, I hope that this can serve as a great tip for young adults trying to establish credit.

“But Kris, I’m not a young adult trying to establish credit. I am wanting to re-establish my credit!”. I hear you! Have you endured some rough times, which is putting your credit score lower than what you would like? Unable to get approved by the banks? This happens more often than you think. Which is why I am originally posting these blogs targeting young adults. So that they would have an easier time navigating credit, than we did. But do not worry, hope is not lost for us either! If you are trying to repair your credit, try getting yourself a Capital One credit card. Capital One can in most cases offer credit cards for those who are primarily looking to re-establish their credit. Once you have your Capital One card, just apply the same principals mentioned above. Keep your balance at around 30%, and make sure to pay your monthly payments. This should help with re-establishing your credit. 

Capital One Credit Cards for Establishing and Repairing Credit 

Published by Kristopher Reaves 

Life Hacks for Good Credit?

This month, I would like to talk about the importance of credit, especially when it comes to getting approval for a mortgage.  If you are new to the credit game, then I hope these tips will help you get a head start to financial stability!

Typically, a lender will look at three factors when deciding to offer you a commitment letter.  The better things look, the better chance you have that they will lend you the funds for a mortgage.  If you guessed that credit is one of these factors, then you are absolutely correct!  The three factors are the following:

• Credit – Your Beacon Score/Credit Score
• Collateral – The property being financed
• Capacity – Your ability to afford the mortgage payments

The reason we are covering credit, is because it can be the easiest to establish for a young adult, and also can be the primary indicator for if a lender is willing to lend.

Generally, around the time you hit the age of 18, you may start seeing some credit card applications in your mail box.  Or, you may have sought out your own credit card, through your bank.  In either case, this is the start of your credit journey!  Keep in mind that a credit card is different from a debit card through your bank.  You can only build credit with credit.  Once you have your shiny new credit card, it’s time to go out and be a big spender right!?  Not exactly.  This is one of the main mistakes young adults make when establishing credit.  Believe me, I know.  I just had a talk with my kids about this exact subject.

The best thing you can do, is to use your credit card when you know you have funds to pay off the balance.  For example, let’s say you have $50 in your bank account, and you want to order a pizza.  No problem, go ahead and order that pizza!  However, use your credit card to pay for that pizza.  Then immediately pay off your credit card with the funds from your bank.  This way, you are only spending money you actually have access to.  Grocery shopping is another great trick for this.  Most people budget for grocery shopping.  So, typically you know how much you have to spend.  When you go grocery shopping, spend that budgeted amount using your credit card, then pay it off immediately from your bank account.

“But Kris, why would I do that, instead of just paying for everything out of my bank account?  That is a few extra steps just to get to the same results!”, I hear you saying!  Well, not quite.  The important difference is that you’re building your credit.  The way that your credit score is calculated is dependent on a few different categories.  I am not going to go into detail about each category, but suffice it to say, that Payment History, and Utilization, takes up over 60% of your credit score!

The payment history indicates how well you are at making your payments, in regards to credit.  You never want to make a late payment.  Always pay before the due date.  The utilization indicates how much available credit you have access to.  For example, if your credit card allows you a balance of $500, and you currently spent $400, then your utilization for that card will be high, because you’re using the majority of that $500 credit limit.

So what you are essentially doing by using this trick, is keeping your payment history in good standings, while also keeping your utilization down.  This in turn will start to increase your credit score over time.  With a really good credit score, you should have an easier time securing a mortgage, a car loan, anything that requires someone to pull up your credit report.  It’s that easy!  Get your credit card, try to stick with just one card to start.  Use that card to purchase items that you already have money in your bank account to purchase.  Then pay that card off immediately from the funds in your banking account.  Also keep in mind to make your monthly payments that your particular card has, and make those payments before the due date.

I hope that this can serve as a great tip for young adults trying to establish credit.

Published by Kristopher Reaves

4 Methods to Melt Your Financial Stress

If you lost your job tomorrow, would there be a list in your head right away of things you could do to hang on or would you just be at a complete loss?

Financial knowledge will allow you to better assess your options and create a plan without getting overwhelmed. However, even with the best laid plans and all the financial literacy in the world, it’s impossible to completely eliminate financial stress — so how do you cope?

1. Have a clear picture of your financial situation.
Do you know your average monthly spend? Do you know how much you owe, the interest rate on your debts, and how much you pay each month in interest charges? Have you ever tracked and categorized your expenses to identify areas (car? dining out? home improvement?) where you could cut back if required?

Avoiding these questions is understandable because the answers may lead to some hard lifestyle choices but turning a blind eye to your real situation will only lead to never-ending financial stress. You need to clarify your situation, collect and analyze your data, and then start creating a plan of attack.

2. Accept your mistakes.
Move on from any emotional reaction and learn to live with any poor financial decisions from your past. Regret and anger won’t make that beach vacation you took on your credit card disappear! That beach vacation is long gone, just focus on your plan to channel more money towards paying for it!

If you need to pass on a night out with the gang because you want to put that $75 towards your card, then just come out and tell them. More than 50% of Canadians live paycheque-to-paycheque, so you won’t be surprising anybody!

3. Set small, achievable financials goals to bolster confidence and measure progress.
If you have credit card debt, try adding $100 to your monthly minimum credit card payment. If you have no credit card debt, open a TFSA and contribute a $100 a month. A hundred bucks might seem like a modest amount, but it is a realistic goal that will get you started and will help a lot more than you think.

Did you know that a $100 monthly deposit into your TFSA ($1200 year) from age 18 to 65 with will grow to almost $400K based on historical stock market returns?

Adding $100 monthly to the minimum 3% payment on a $5K credit card debt will cut the time required to pay off the balance from 251 months down to 38 months and save you $4500 in interest charges!

4. Get inspired and stay motivated.
Follow a personal finance YouTuber or blogger that you really connect with, hang a goal chart or progress tracker on the wall, talk with a friend or relative who has the same issues and work together — there are lots of methods and resources available to help you, even with a limited budget.  It’s critical to maintain a positive attitude and don’t beat yourself up — there are plenty of others in the same boat!

The ultimate goal is to completely eliminate financial stress by building passive income, so you don’t have to go to work everyday to pay the bills. Achieving this goal will take time and there is bound to be some stress along the way. Learn to cope and stay focused on your goals.

For powerful personal finance education and training with immediate results, check out the complimentary livestreams each week from Enriched Academy. View the schedule and sign up for upcoming sessions on their events page.

Published by DLC Marketing Team

Top Vacation Locations in Canada

Thinking about taking a holiday this year but not sure where to go? How about checking out our own backyard! Canada has some incredible vacation locations and parks that are worth checking out:

Sunshine Coast, British Columbia: Considered a local paradise, the Sunshine Coast is a gorgeous and laidback area northwest of Vancouver with dozens of beaches. Home to several resorts and hotels, the Sunshine Coast is the perfect getaway spot! Learn more at sunshinecoastcanada.com

Whistler, British Columbia: It is not surprising Whistler would be on our list. As Canada’s most famous ski resort and a great destination, it’s a popular location! Perfect for outdoor and nature lovers, bikers and hikers and general vacationers, this is the perfect spot to adventure or relax. With dozens of hotel options, you can stay right in Whistler Village and close to the action! Learn more at www.whistler.com

The Canadian Rockies World Heritage Site: Of course, Canada is well-known for our Canadian Rocky Mountain Parks. Complete with Kootenay and Yoho National Parks, the World Heritage Site is an incredible destination. Stay in Banff, Golden, Canmore and explore the world around you! Learn more at www.worldheritagesite.org/list/Canadian+Rocky+Mountain+Parks

Banff and Lake Louise, Alberta: As some of Canada’s most awe-inspiring mountain destinations, Banff National Park and Lake Louise were sure to make their way onto our list! Enjoy electric blue glacial lakes, wildlife, waterfalls and more during your trip. With several hotels and resorts in Banff, you’re sure to find a great spot to hang your coat after your day of adventures! Learn more at www.banfflakelouise.com

Drumheller And The Alberta Badlands: If you haven’t been before, Drumheller and The Alberta Badlands are worth a visit to experience unearthly landscapes and dinosaurs!? Home of The Royal Tyrrel Museum of Paleontology, Drumheller is like stepping into the past. Stay in Drumheller and experience the incredible landscapes that the badlands have to offer! Learn more at https://traveldrumheller.com/hiking-in-the-badlands

Niagara Falls, Ontario: A jewel of Canada, Niagara Falls are very well-known and should be on every traveler’s list! With various attractions including water cruises, wineries, casinos, and more, there is always something fun to do in Niagara Falls. From entertainment and romance, this is a sure win for any traveller! Learn more at niagarafalls.ca

The Muskoka Lakes, Ontario: The Muskoka Lakes were once given the title of “Best Trips” by National Geographic and continue to remain a top destination for anyone wanting to get away! With some newly added accommodations, this once closed in location has been opened up for anyone to enjoy! From basking and boating on the lake to shopping and eating in the various villages around the area, this is sure to make for a great vacation! Learn more at www.muskokalakes.ca/en/index.aspx

Quebec City, Quebec: A beautiful location filled with our heritage, Quebec City is marked by French-Canadian character and European sophistication with incredible architecture and rich history. Famous for their delish poutine and iconic Chateau Frontenac, Quebec City is a world-famous destination for anyone wanting to soak in some culture. Learn more at www.quebec-cite.com/en

Fundy National Park, New Brunswick: We couldn’t have a top vacation locations list without including the beautiful Fundy National Park. Nestled in the beautiful Canadian Atlantic of New Brunswick, this park offers incredible outdoor opportunities from kayaking to camping. With several additional historic sites dotted around the park, there is tons to see! Stay in the Village of Alma or along the coast to maximize your experience. Learn more at www.bayoffundy.com

Cavendish Beach, Prince Edward Island: Backed by dunes and rolling hills, Cavendish Beach is the last stop on our list. With beautiful beaches and the historic Green Gables Heritage Place, Cavendish Beach is one of the best places to visit in Canada. Linger by the water and explore the town of Cavendish! Learn more at cavendishbeachpei.com

Now that you know of some of the most beautiful locations in Canada, it’s time to pack your bags and get travelling! Enjoy!

Published by DLC Marketing Team