Cash flow management starts with knowing where exactly your money is going each month. Almost half of Canadians are not prepared for financial emergencies, with 53% relying on their next pay cheque. More than one-third (35%) would take out a small loan or use a credit card to deal with an emergency. Is this you? (Statistics from financial poll conducted by Leger and Refresh Financial)
We can help you get back on track by incorporating cash flow management strategies that will help you to re-prioritize your financial spending. By completing our Personal Financial Review (PFR) and listing all your current lifestyle expenditures, you will be able to identify where your major expenses are as well as any hidden spending.
Manulife Advantage Account - APPLY ONLINE
It’s convenient, straightforward, and should take you no more than five minutes to complete.
A little can do a lot to help keep your financial plan on track. Even your bank account should be designed to make your money work harder. Would you like to make every dollar earn more and stop paying bank fees?
Stop paying bank fees
The Advantage Account can meet your daily banking needs too. In fact, you can bank for FREE.** When you keep just $1,000 in the account, fees for everyday transactions will be waived. This account has no monthly fee either.
Bank with Manulife Bank online, on your mobile device, or by phone. You can also get cash whenever you need it, from Canada’s second largest bank machine network.
Manulife Bank offers a truly flexible bank account that does the work of both a high-interest savings account and chequing account in one – the Advantage Account.
Looking to save on mortgage interest AND pay off your mortgage sooner?
You can with Manulife One banking:
• save thousands in interest
• be debt-free years sooner
• enjoy financial flexibility; and
• simplify your everyday banking
When buying a home, the actual purchase price will, of course, be your major expense but you do need to be aware of the additional expenses you will have. Some of these are one-time expenses and others are ongoing. You should summarize those expenses to ensure that you do not over-extend yourself.
Here is a budget worksheet that can help you estimate your one-time and ongoing costs of home ownership.
The Federal Child Support Guidelines describe which parent is responsible for how much support for children after a divorce. The guidelines are designed to divide support fairly between the parents and consider various factors such as:
The number of children
Annual income of the paying parent
Custody arrangements (sole, split, joint)
If you were legally married, you are subject to the federal Divorce Act. If you weren’t legally married, you are subject to provincial or territorial law. Both the Divorce Act and provincial laws are very concerned with the welfare of children and the courts will not approve a separation agreement or a divorce until there is adequate support for the children. Typically, that support will be shared between the parents.
The guidelines do not have to be followed if the parents can show the court that their own arrangement is more beneficial for the children. To calculate hypothetical child support amounts based on your gross income, number of children and province of residence you can use this convenient Government of Canada Child Support Table Look-up.
Other things to consider include personal tax credits and deductions, child-care expenses and deductibility of legal fees.
Termination & Severance
When you leave your job, you may receive a termination and/or severance pay. When your departure is involuntary every jurisdiction stipulates how much notice you must receive. Commonly, the company will pay you in lieu of actually working through the notice period. This termination pay is considered employment income for tax purposes.
In BC, click here to learn more.
A retiring allowance is a payment from your employer either in recognition of long service or as a payment due to involuntary job loss. Retiring allowances include severance pay and unused sick leave credits but do not include unused vacation pay or termination pay (in lieu of your notice period
Severance pay is a calculated payment amount that an employee may be entitled to when they are unwillingly terminated from their employment. Severance can be extremely helpful to get you through a time when you do not have other income.
Sole Proprietor Financial Checklist
Operating a company as a Sole Proprietor is a challenging and, hopefully, rewarding experience. Our office can provide assistance and guidance about running an efficient business. Take this opportunity to review your situation and consider asking yourself the following questions.
What is the best way to finance the company?
What regulatory requirements am I facing?
What should be included in a comprehensive budget?
What are the implications of hiring employees?
How can I receive income from my company?
What sort of insurance coverage do I need?
How will my company affect my retirement and estate plans?
How will my company be taxed?
Budgeting as a Couple
Things to consider regarding budgeting as a couple:
Create a family budget in order to meeting long-term financial goals.
Understand each other’s attitudes towards financial management . Here is a link to a quiz you and your spouse can do together.
If married (or are planning to), consider how your current and future assets will be owned by you and your spouse. (Joint Tenancy with Right of Survivorship (JTWROS) or Tenancy in Common.
It's easier to manage one joint account. For example, it's easier to keep track of household bills. You can avoid deciding who pays what bills.
You may be able to save on banking fees if you have fewer accounts.
You may be able to earn a higher interest rate if you combine your bank-held savings.
You may be able to pay off debt faster if you combine your resources.
One spouse may feel they have an unfair burden if they contribute to paying off the other's debts or if one spouse spends more than another.
If one partner must pay child or spousal support, the other spouse may not want to share in those costs.
Sometimes it's harder to balance a cheque book when two people use the same account.
If one person oversees the account, and something happens to him or her, or to the relationship, the other partner may find sorting out the banking difficult.
If the marriage ends, both partners will need a credit rating to get credit in the future.