As a parent, you’re constantly thinking about the future. Facing big financial obligations like retirement savings and helping your children through university require forethought and a savvy approach to finances. Here are several tips that can help you make the most of the pay-check you get now so that you can have an improved outlook for the future.
Many homeowners view their mortgage as a burden, but there are ways that you can make it work for you. Administrative and other fees make up a sizeable portion of Canadian mortgage rates, so when negotiating a mortgage contract with your lender, first find out if you can request that the seller of your home pay for some of these fees. Also, approach negotiations on your home’s price with a creative tactic in mind. If you’re planning to talk the seller down from the asking price, consider asking him or her instead to pay off points on your mortgage. One point is usually worth one per cent of your home, and each point you purchase reduces the interest rate that you will have to pay on that mortgage. By taking this approach to negotiations, you can invest more in the future financing of your home than aiming for an initial money grab. You should also consult with your lender about the best type of mortgage for you. If you plan on expanding to a bigger home within a decade of moving into this one, you may save money by signing with an adjustable interest rate on your mortgage. However, if you are planning on spending the rest of your life in the home that you are currently purchasing, this may not be such a good idea.
The most valuable piece of advice for saving on credit cards is to pay on time. Credit card companies have been known to increase their interest fees, sometimes by double, when consumers pay late. This could make it even harder for you to pay off your cards and fall further into debt. If you have more than one credit card, consider transferring the bulk of your balances to the card with the lowest interest rate. This will help you avoid a costly fee for just carrying your balance. However, make sure that you are aware of how long that low interest rate will last so that you can pay off that balance before a new rate takes effect. And if you are considering applying for a new card, by far the best kind of credit card to get is one that is issued by a credit union. These cards usually offer membership perks as well as significantly lower interest rates and no fees.
Finding better insurance deals is a great way to save money, but you should always make sure that you’re not doing it at the cost of vital protection. If you need auto insurance, home insurance, and life insurance, try to use the same company for all three policies. Combined packages usually come at a discounted rate, so you could end up saving on three necessities. Also, talk with your insurance agent to see if there are any lifestyle changes you can make to lower your premiums. Life insurance is usually less expensive for non-smokers, for example, and homes with security systems are seen as less of an insurance risk for companies. While you’re searching for discounts, you could also inquire into special rates for members of certain organisations. Members of popular groups that are recognised nationally or internationally, such as AARP, may qualify.
Overall, the takeaway from your financial planning should be to adapt a proactive attitude toward research and decision-making. You can find more information on mortgage rates in Canada with ratesupermarket.ca. Also, financial experts in every field, from insurance to personal finance, can give you more tips on little-known ways to save money.