Winning may not be everything, but it sure feels good. Just ask anyone who has put their finances back on track and who is sticking to a budget.

There is no official award for that. But there are tons of rewards. Like not having to stew about the weight of your piggy bank every single day. Like not feeling anxious about a bill collector being on the other end of the cell ring you’re hearing. Like living well and treating yourself and family to little luxuries while actually being able to realize your longer-term hopes and dreams.

I mention winning today only because we have received word at Credit Canada that For the Love of Money has been nominated as one of the country’s top ten personal finance blogs by the folks at The Globe and Mail, Canada’s national newspaper. For the newspaper’s feature Best of the Blogs 2011, Globe financial reporter and editor Dianne Nice had, well, nice things to say about For the Love of Money. 

Says Dianne: “Laurie Campbell, of the not-for-profit Credit Canada, is the lead writer for this humorous blog that aims to ‘improve everyone’s financial savvy.’ I love the pull-yourself-up-by-your-bootstraps tone of the articles, which are geared toward those who tend to overspend.”

We are of course honoured to be selected by Dianne, as fine a journalist and editor as you will find in this country. And we are pleased to be nominated by Diane among four other financial bloggers. Here are the others that were included in Diane’s list:

• “Gail Vaz-Oxlade: You’ve got to love the no-nonsense approach of well-known TV host and author Gail Vaz-Oxlade. Her personality is all over her blog, which features great tools, including Gail’s Guide to Building a Budget.”

http://gailvazoxlade.com/blog/

• “RetireHappyBlog: Run by Jim Yih, a financial expert with 20 years of experience in the industry, the Retire Happy blog is full of practical tips for retirement savings but also has hundreds of personal finance articles on a range of topics from children’s allowances to taxes.”

http://retirehappyblog.ca/

• “Canadian Couch Potato: Educational and amusing, Dan Bortolotti, an award-winning personal finance journalist, writes a great blog for those who hate high mutual fund fees and want to learn more about do-it-yourself investing through index funds and exchange-traded funds.”

http://canadiancouchpotato.com/

• “Money Smarts: Mike Holman, author of The RESP Book, has worked in the Canadian financial industry for almost two decades and is the go-to guy for answers about registered education savings plans, but his blog touches on all things personal finance, from discount brokerages to energy sales scams.”

http://www.moneysmartsblog.com/

For the full story about all the blogs nominated by the Globe, go to  http://www.theglobeandmail.com/globe-investor/2011s-best-of-the-blogs-nominees/article2007165/

Meanwhile, we have no intention of resting on our laurels here at Credit Canada. There are many people in this country who need instruction about the benefits of winning.

Oh Canada! Land of angelic bankers and borrowers! Your love of the line of credit is well documented but what about your love of the RRSP loan? An RRSP loan is used specifically for your retirement plan often with the goal of getting enough of a tax refund to pay off some of the loan balance or to reduce the amount of tax payable.

What a great idea, right? Wrong! A loan is a loan and it must be paid back with interest so, like any loan, you need to be sure that you can afford the repayments. Whilst borrowing to save may sound like a great idea it really is contradictory in terms. If you are considering an RRSP loan you need to ask yourself why you are borrowing to save. If you’re borrowing because you can’t afford to save then forget about it! Since the deadline for this year has come and gone it’s a good time to start thinking how you can avoid an RRSP loan next year.

When you ask about an RRSP loan at the bank they’ll say “duh winning! Max out!” because the person you’re talking to has targets to meet. Every situation is different but please keep in mind that RRSP season is to your bank what Christmas is to the retail world. Like any advice you need to weigh up the pros and cons for your own situation. If your tax refund is going to cover every single cent you’ve borrowed and you know that you’re disciplined enough to actually use your refund to pay your loan balance then go for it. But what if your refund doesn’t cover the loan balance? Your retirement loan then becomes another bill that needs to be paid at the end of the month and if you’re struggling as it is then your ‘savings loan’ can turn into a big regret fast.

Some people use an RRSP loan as a way to force themselves into saving for retirement but why not just set up a direct payment from your chequing account to your retirement plan every payday? This is a great way to not only save in a more manageable way without a loan but it also allows you to purchase securities at a range of different prices throughout the year rather than a lump sum purchase at tax time. This can save you some money. Do some research on ‘dollar cost averaging.’

I’ll be doing my taxes this weekend so if any of you out there have any tips on how to maximize your return please let us know!

I was raised by a single mother of three who instilled a fierce need for independence in me. I’m not the “I buy my own rings and shoes” kind of independent woman but the kind who is a conspiracy theorist and relies on no one but herself for anything because no one else can be trusted!

My quest for independence has not resulted in me crushing all men in my path, a la Madonna, but rather an all consuming, irrational fear of being vulnerable and dependant as a senior. I’m probably the only thirty year old who has experienced sleepless nights worrying about my Power of Attorney for Financial Affairs and Power of Attorney for Health Care getting together and plotting against me just to get their hands on my tiny estate…trust no one!

In my quest to retain independence as a senior I save more than I can afford for retirement. This may not appear to be a bad thing but I’ve put myself in a vulnerable position unintentionally by having nowhere to go but my credit card in case of emergency. My RRSP is the last place I’ll want to go due to withholding tax and inevitable bamboozling at my next tax filing since the withdrawal would be calculated as income and taxed to within an inch of its existence. What’s a girl to do? Until recently the only thing to do was ask the Universe not to send me emergencies but now the answer is to get a Tax Free Savings Account!

The basics:

• Contributions are NOT tax deductable.
• Neither income earned within a TFSA nor withdrawals from it affect eligibility for Federal income-tested benefits and credits, such as Old Age Security, the Guaranteed Income Supplement, and the Canada Child Tax Benefit.
• Investment income earned and withdrawals are tax free so no need to fear next years tax filing!
• You can contribute up to $5000 annually and if you withdraw funds the amount can be added to your contribution the following calendar year.

Of course the mantra of a conspiracy theorist is “it’s too good to be true…” but in this case I must admit it really is true. In an ideal world you would contribute to a TFSA as well as your RRSP but who lives in an ideal world? When faced with either a TFSA or an RRSP contribution a very general rule of thumb would be to consider your needs for an emergency fund and your income in relation to the tax deduction offered by an RRSP.

So, throw your hands up at me momma Rogers.  With this TFSA that I’m rockin’ I can continue to “depend on me” well into my retirement even in case of a financial emergency!

In an era of historic consumer debt, here is encouraging news that comes to us by way of a survey from the Canadian Imperial Bank of Commerce (CIBC). For 2011, debt repayment is the number one financial planning priority of Canadians.
 
Also near the top of this year’s money management list among citizens of the Great White North: wage earners have their minds set on retirement planning while retirees are focusing on managing day-to-day spending and budgeting, according to the CIBC poll.

Coming in the wake of revelations by the Bank of Canada and Stats Canada that consumer debt in the country has reached epic proportions, this new information brings warmth to my heart during these cold winter days.
 
If action accompanies attitudes revealed by the CIBC poll, we can look forward to some easing of debt in households across the land.
 
Let’s put the good news into detailed demographic perspective. While debt repayment is a priority with Canadians aged 25 to 44, financial planning and saving are of greatest importance among the 45 to 64 crowd. Meanwhile, those 65 and older are principally concerned about day-to-day spending and budgeting.
 
This all makes sense. And it’s all good. The young ought to be getting their ducks in order debt wise. Middle age folks should certainly be concerned with investments and savings during their prime years as income earners. And the grey crowd, well, they’re smart to keep close daily tabs on the gold of their golden years.
 
Along with the welcome news comes sound advice from CIBC’s Victor Dodig, the bank’s executive vice president of retail distribution and wealth management. He notes that debt repayment and savings need not be viewed as mutually exclusive activities. They can share a dynamic relationship in smart money management.

Many Canadians look at debt without looking at savings, or they look at savings without looking at outstanding credit balances. By examining both, a new outlook can present itself.
 
For instance, Dodig says it may be wise to consolidate all debt into one package with a lower interest rate or one that meets a repayment schedule. This may provide more room to grow savings. He also notes if the interest rate on savings is low, it may be better to take those funds and use them to pay down debt. Simply put, it is wise to explore financial game plans that put both sides of the balance sheet into perspective.
 
Applying financial smarts of this nature only bodes well for a future that, I think we can all agree, is sorely in need of good news on the debt front.

This may seem a little unusual, but this week I’m here to promote what technically might be called my competition. I want to tell you about a very special online space dedicated to personal money management – moneyville.ca.

I don’t really view the site as a competitor, more as a friend really, since any good works supporting financial literacy at large are warmly welcomed by me and by all of us here at Credit Canada.

I can tell you that moneyville.ca offers what is probably the most comprehensive set of blogs in Canada relating to financial literacy. Moreover, moneyville.ca is much more than blogs. It is a Web site chock full of news, ideas and tidbits concerning the whys and wherefores of how to handle your money.

Frankly, given its range and scope, I’m envious of the site. But hey, it’s powered by the Toronto Star – through torontostar.ca - with plentiful resources in the form of knowledgeable writers and editors trained in the field of journalism. As a not-for-profit agency since 1966, we can’t quite compare our literary resources to those of the Star. 

What a feast moneyville.ca offers for those who want to sit at the table of financial literacy.

Let’s take a quick tour shall we.

Hit the site’s home page and instantly you are greeted by an excellent feature titled Saving: 10 things you need to know. It’s an informative read full of practical ways to fatten your piggy bank. And I can tell you the writer of the article knows whereof she speaks, because after 20 years in the business of credit education I know whereof I speak.

Now, cast your eyes to the navigational banner across the top of the home page and you’ll find other pages dedicated to everything from budgeting, saving, borrowing and investing, to retirement, insurance, taxation, and real estate. As you hit each navigational title, pops ups appear providing you a choice of articles relating to each page’s particular subject area.

It’s good stuff for readers on the go.

Of couse, there’s a button on the banner for blogs, too, and moneyville.ca offers the best of the best. Some of Canada’s premier financial writers and experts are found here in blogs that include:

Moms on Money  – Featuring Toronto Star reporters Rita Trichur and Madhavi Acharya-Tom Yew, who are moms on a financial mission.

Bryan Borzykowski – An excellent writer who has worked at Canadian Business, PROFIT and MoneySense magazines. His blog is about investing, the economy and markets.

On the Money – Featuring Adam Goodman, who was raised in Toronto and spent the first 26 years of his life spending every dollar he made. One day he asked: Why?

Me and My Money – Feauring my good friend Alison Griffiths who has assisted us at Credit Canada with Credit Education Week. Alison looks at family finances and offers solutions to common problems. Her Moneyville.ca  focus is investments, pensions and retirement.

On Your Side – Featuring Ellen Roseman, who has been writing about personal finance and consumer issues for most of her career. She is the author of several books and a Toronto Star business writer.

Bucks ‘n Bytes – Featuring Marc Saltzman, a personal technology evangelist who enjoys helping people save money and simplify their lives. His blog is about smart technology shopping.

20-Something & Change – Featuring Vancouver blogger Krystal Yee, a self-confessed shopaholic since college who managed to turn her financial affairs, and her life, around.

Now, that’s quite a stable of talent by any estimate. But wait! Like those informal ads say on TV, there’s more!

Check out Twitter Ville for chat, Moneyville Community (with guest appearances), Featured Tools and Guides (financial news and tips you should know), Financial Calculators (look into your credit score; stay on top of your cash flow). And there’s more, including links to money saving Torstar sites.

My advice is, if you’re in the market for financial wisdom, visit moneyville.ca, and go to town.

Of course, you should keep visiting FortheLoveofMoney.ca, too, not to mention CreditCanada.com.

Happy blogging.

For many of us, it’s not January but September that qualifies as the start of the new year in Canada. Come the end of the Labour Day weekend, there’s a feeling the whole world is getting back into gear. Schoolrooms, boardrooms and businesses come alive; social and cultural events start ramping up; hockey season gets underway – and on and on. It seems we’re all full of enthusiasm to take on new challenges and to get stuff done.

Given the mood of the moment, I can think of no better time to put personal finances in order. With the right tools, it isn’t difficult. As a matter of fact, we make it easy at Credit Canada thanks to a bevy of online money management tools that can help you fine tune your life. The tools cover everything from setting budgets and tracking spending patterns, to analyzing mortgage payments and planning for retirement – plus much more.

Join me now for a closer look at each of the tools, which can be accessed anytime at www.creditcanada.com.
 
Piggy Pal – Your Money Tracker

PiggyPal is a true friend when it comes to managing money. Track your daily spending habits online or through your mobile handset while you’re on the go. Click here.
 
Piggy Pal Challenger

A fun, interactive game that tests your money management knowledge. Click here.
 
Benefits of Spending Less

A few reductions in your personal budget can free up money for investments. Here’s a calculator that shows you how to lay a new nest egg. Click here.

Budget Tracker Booklet

A pocket-sized booklet that helps you track monthly spending so you can budget intelligently. Click here to download the booklet.

Buy or Lease Calculator

Is it better to lease or to buy a car? This calculator offers answers that can put you in the driver’s seat to savings. Click here.
 
Debt Calculator

With this tool, you’ll discover how much interest you’re actually paying a creditor over the life of a loan. Click here.

Home Budget

Get your house in order with a calculator that helps you determine where your money is going. Click here.

Mortgage Rates

A tool that helps you compare mortgage rates from big banks, credit unions, specialty lenders and mortgage brokers in one search. Click here.

Mortgage Comparison Calculator

With this tool you can sort through monthly payments, fees and other costs associated with getting a new mortgage. Click here.

Mortgage Payoff

This calculator shows you how much interest can you save by increasing your mortgage payment. Click here.

Rent or Buy?

Should you rent or should you buy your home? This calculator helps you weed through fees, taxes, and monthly payments. Click here.

Retirement Planner

With this tool, you can lay the groundwork for a retirement plan. Click here.

RRSP Loan Calculator

Use this calculator to see how a RRSP loan could help you with your retirement savings plan. Click here.

Savings Calculator

Learn how even a modest but consistent savings strategy can work wonders. Click here.

Savings Goal

A tool offering you the big picture on the financial results of your savings plan. Click here.

Shopping Quiz

Test yourself with this shopping quiz to see if you have financial blind spots and are in need of credit counselling. Click here.

Student Budget Calculator

A calculator specifically designed to help students understand their expenses and income while attending a university, college or other full-time educational institution. Click here.

So that’s the kit. Feel free to use any or all of the above items anytime. And please share them with family and friends if need be. After all, the beauty of these tools is that you don’t have to worry about returning them to the box.

I came across an interesting article by Andrew Allentuck in today’s National Post that is worthy of sharing.  We all need to be aware of how our golden years of retirement can be very stressful when debt is a part of the plan.

For James Kennedy, a federal civil servant before he retired, and his wife, Jane, who retired from the Calgary civil service, the golden years have become a series of tough compromises. Both 59, they live in Qualicum Beach, B.C., a five-minute walk from the Strait of Georgia on Vancouver Island. They enjoy the mild weather, long walks on the beach and their beautiful home.

Trouble is, a lack of employment income combined with debt stalk the good times they thought they would have after they left their careers.

To read the full article click here.

Your golden years should be just that.

Last week John McCrank of Reuters provided an interesting report about what it’s like to retire in Canada. If it’s any solace in these tough times, McCrank tells us we are considerably less stressed out about retirement than Americans. In fact, he says the reality of retirement is far closer to expectations in Canada than it is to expectations in the United States.

McCrank is not just cranking out a general observation. His findings are based solidly on a recent TD Bank Financial Group survey, which showed that, “In Canada, 70 per cent of retirees say their post-working life is exactly, or mostly, what they thought it would be … In the United States, that number falls to under 50 per cent.”

Frank McKenna, Deputy Chairman at TD and former Canadian Ambassador to the United States, tells McCrank tough times have not hit Canada with the same brute force they have hit America. The recession, unemployment and stresses on housing markets have been much less severe here at home.
 
Well, I say thank heaven for that. But there is another matter I would like to introduce to the discussion. Namely, while it’s reassuring to know that lots of current Canadian retirees are getting along well, what about the many millions of us who have not yet retired? What for example might the future hold for the big wave of baby boomers who will be coming into retirement soon?
 
Among this group, those who have dutifully saved money over the years through smart, solid investments such as RRSPs will fare well. Those who have not managed their money intelligently might have to seek support from family and/or friends, and even look forward to extended years of work.
 
That can take the gleam off of anyone’s golden years. Indeed, I hate to be a party pooper amid positive news about Canadian retirees, but it would be remiss of me not to point out that for a number of years now far too many Canadians have been boxing themselves into financial corners. Through 2009, consumer debt in this country continued to be widely disproportionate to our ability to comfortably sustain the burden.

At Credit Canada, we see the results of this gap in the many desperate souls who seek our help through the credit counselling and debt management programs we offer. I can tell you that stresses associated with unwieldy debt loads are increasing dramatically these days. So we are redoubling efforts to educate people about the whys and wherefores of smart personal money management, and that includes saving for the long term.

As we like to say, retirement ought to be the best paying job in the world. But it takes wisdom, and real effort, to make it so.
 
McCrank performs what amounts to a public service when he points out, “Respondents on both sides of the border – 32 per cent in America and 28 per cent in Canada – said one of their biggest mistakes in planning for retirement was that they didn’t start saving until they were over 40 years old.”

He goes on to quote Patricia Lovett-Reid, senior vice president at TD, on what it means to spend wisely in life.

“It’s all about living within your means. It’s not about keeping up with the Joneses, because they are broke,” says Lovett-Reid, who notes “the biggest challenge when planning for retirement is keeping or getting debt levels under control. The other key is to make a back-up plan, and that means saving early and saving often.”

Now there is advice that’s as good as gold.