Category Archives: Personal Finance 30

Your Choice Blog #2

The article I found was called ‘6 Steps To Better Budgeting’. In this article it teaches you how to budget better and in the most benefiting way. The six steps to better budgeting include: 1)Track your expenses, every time you purchase something whether it is one dollar or fifty dollars it is always important to write it down. 2)Think ahead, you know that Christmas is coming therefore you should put some extra money away for unexpected gifts. 3) Budget for savings, try to save as much money as you can.4) Build a buffer. 5) Project cash flow, make a projection of your household after-tax income over the next few years. Factor in expected wage increases, but be realistic and be sure to account for any increase in taxes that would result. 6) Cut expenses until cash flow is positive.

This article is written from one’s perspective. It is written by someone who thinks these are the most useful tips as far as budgeting goes. I think this information is accurate because if someone was to do all these tips I can almost guarantee they would be successful with their budgeting. Although, I have not tried these tips before, reading what they are and what to do it seemed to me that it would work.  The purpose of this source is to teach people how to properly budget their money and become successful in doing so.

This article relates to me because I will soon be starting to make a budget sheet because I have lots of expenses that I need to start saving up for. I also will have many things that I have to buy coming up, such as gifts. Therefore,  I need to plan out how much I am going to spend and how much I am going to put away with this months income. This article relates to personal finance because we spent a whole unit talking about budgets and the importance of budgeting. We also did a major project on budgeting. It is very useful, especially if you have lots of expenses you need to pay for. I think it is important for everyone to know how to budget their money.


Source: http://www.investopedia.com/partner/quinstreet/articles/personal-finance/112414/6-steps-better-budgeting.asp

Your Choice Blog #1

The article I found is called ‘Why Holiday Shopping Can Drop Your Credit Score Quickly’. This article talks about how during the holiday season it is easy to spend more money than you can afford. People tend to use their credit cards more around this time of year for convenience. While customers get excited about the holiday season they tend to forget about paying bills. Unfortunately, some people find that they have more payments on their credit card than they can afford. So they miss payments and their credit scores go up. Creating holiday debt that cannot be responsibly managed can result in late payments that will remain on a person’s credit report for seven years, potentially lowering the credit score and limiting access to future credit. This is a tough season to not spend an excessive amount of money.

I think the information in this article is accurate because it is so easy to spend more money than you want to on Christmas presents and if you can’t afford or miss credit payments your credit score will increase. People need to make budget sheets for the holiday season because without one, it is more likely that you will spend more than you can afford. The purpose of this article is to let people know that they need to be smart and safe when spending money or using their credit cards in the holiday season. It is completely fine using your credit card as long as you are paying it off on time.

This article doesn’t apply to my life yet, once I get a credit card it will. It taught me that I need to plan out what and how much I am going to spend and make sure I can afford everything I plan on buying. It also taught me that I need to always pay off my credit card by the due date in order to not get a ‘bad’ credit score. This article relates to personal finance because throughout the semester we learnt all about credit cards and credit scores. We learnt how to budget our money and the importance of them as well as the importance of paying off your credit card by the due date. I found this article not only useful but very relatable to what we are learning in class.


Source: http://www.mainstreet.com/article/why-holiday-shopping-can-drop-your-credit-score-quickly

First Nations Taxation Blog

I found an article about First Nations Taxation by apihtawikosisan. In the article he gave lots of information about who and why some First Nations have to pay taxes and some don’t. The tax exemptions that do exists are only linked completely to the reserves. So non-Status Indians, Inuit, Métis, and most Status Indians living off reserve, don’t get any tax exemptions at all. For those who do not have to pay taxes it only applies to the goods that are purchased off reserve and are delivered to the reserve by the retailer’s official agent are tax exempt.  If a Status Indian wants to transport goods back to the reserve, then legally they are not exempt.  Taxes on meals, movie tickets, and a host of other things that couldn’t conceivably be brought back to the reserve are also not tax exempt. Services provided on reserve are tax exempt.

I do agree with this article because everyone just gets the wrong impression of First Nations because of the fact that some of them do not have to pay taxes on some things. The fact that only the First Nations living on a reserve get this tax exempt is more reassuring because in that case it is only fair. Most of the time, those who live on the reserve have little, if not no money. Those who are eligible to pay taxes should. It is something that everyone has to do. I feel as if this has changed my point-of-view on First Nations because most people judge or consistently complain about them because of this whole taxation situation. I have nothing against First Nations and I 100% agree with this article.

I think that the First Nations should have a chance to make it more clear with the public about who, why and how some of these people don’t have to pay taxes because in my opinion a majority of people either don’t know any of this or they just assume that they don’t have to pay taxes. It is more so a stereotype than anything. It isn’t fair to those First Nations that do pay taxes and do pay for everything everyone else does are getting judged because of what people are thinking/assuming about them. Again, I completely agree with everything this article had said.


Source : http://apihtawikosisan.com/2011/12/first-nations-taxation/

Investments Blog

When you hear people talking about investing, a million things may run through your head. Does it mean saving money? Does it mean spending money?. To me, investing means putting your money to work. In other words, it is a different way of making money.

As I grow up, I have always been taught that the only way you can earn or make money is simply by working. That is not always the case. You can invest in different ways such as stocks, bonds, mutual funds, real estate or making their own business. People make investments to make money without having to work for the money. They also invest because they want to increase their personal freedom, sense of security, and the ability to afford things they want in life. That being said, investing is not gambling. Gambling is putting money at risk by betting on a certain outcome with the hope that you might win money.

Saving there is no risk because it is your money. More so used for short terms. Savings still allows you to access your money. As for investing you are more likely to lose your money than it is to save. When you invest, you also have the opportunity to earn more money than when you save.  An example of saving, is if you were to put your money if your bank to save for a car than nobody else but you, can touch or take that money. An example of investing, is giving someone money for a bond, then they would only have so long to pay you back. By investing your money, you’re putting a risk to lose your money.

It is important to save and invest money when you are young because than you can save money for needs you want later in life. For example, postsecondary, a car, a house, etc. While you’re young you should learn about money and how to use it properly for when you are older you know how to invest and save for the real world. Also, if you save while you’re young, when you’re older you will be able to have extra money for needs you need to have in life.

Critique the Statement Blog – Online Shopping

In today’s society, a majority of people enjoy online shopping, not only because you can choose through a more variety of things but because it is generally cheaper. Online shopping is convenient because you don’t need to drive around or try things on. You can easily visit there website and find the product you’re looking for. Online shopping can be a good thing because when you go into a store, most of their popular product is in the back. They do this because then you have to walk through the whole store and look at there other product before seeing the most popular product. Shopping online avoids fewer traps.

Shopping online can also be very bad. That is because you could go through a lot of difficulties just to get your product. For example, your order could be sent somewhere else or your product could show up in the wrong size. When shopping online you also don’t have an option to ask someone how the product fits, what it is made out of, etc. Regardless of the situation there are also risks you have to take.

Some tips when you are going to shop online is check out sellers, meaning locate and write down numbers that you can contact if there is a problem with your transaction or bill. Try to contact the owner of the product if you have any questions regarding what you are purchasing. To help with online shopping check out reviews on the website. Make sure you are 100% sure that this website is legitimate. When you are done with your transaction, make sure you record or print off all information including the product description, terms of the sale, price, online receipt, and all emails given. Think about everything you are filling out before doing so. Just in case it asks for personal information. Online shopping can be just as convenient as it is unsafe.Be smart and safe with all the decisions you make.

Source:

Online Shopping | StaySafeOnline.org. (n.d.). Retrieved December 5, 2014, from http://www.staysafeonline.org/stay-safe-online/protect-your-personal-information/online-shopping

Pursuit of Happiness Blog

Throughout the movie, Chris went through many ups and downs as far as finance go. He struggled paying for rent, paying for his needs (which are water, food, shelter,etc.) Chris and his son had to spend nights in the bathroom at the subway station. Chris had struggled trying to make his son happy. His wife had left him because the two of them were struggling more than they should have been.

Chris overcame his financial challenges by getting a job. He tried his hardest, stayed faithful and never gave up. He worked for what he wanted and needed. He saved his money the best he could. He worked and was grateful for every penny he had. It showed us that there is so much in life to be thankful for and that we are beyond lucky with everything we have. He stayed patient and didn’t ever give up. He tried his hardest all throughout the movie to make money in any possible way he could.

He was different than the other employees because he had a time schedule. He let them know about things he did that could affect the business. Such as, low in income, homeless, single parent, etc. He was honest with them which showed the business a lot and it showed them how much of an amazing man he was. The other employees all had lots of money, all white, all dressed super fancy.

I don’t think the business treated Chris any differently than anyone else because the colour of his skin. Some people gave him a harder time, but for the most part I found everyone was treated equally.

This movie taught me that I have so much in my life to be thankful for. An amazing family, a house, being able to get an education, a job, food, more than I could ever imagine. Chris showed me that you can do anything whether you are rich or poor and that you should never give up because the minute you do, you lose everything. I would watch this movie again because it was so heartwarming.

Discussion question – Unit 5

Budgets are important for teenagers because while we are young we should learn how to properly save and invest in money for when we are adults, we will know how to properly save our money.  It helps you learn the difference between your needs and wants. Creating a budget can also decrease stress because you won’t panic when you only have a limited amount of money in your bank account. It is also important to start saving your money while you are young to save up for important things in life. For example, post-secondary, a house, a car, etc. making a budget can help you do so.

Discretionary income is the amount of an individual’s income that is left for spending, investing or saving after taxes and personals necessities( such as food, shelter, and clothing) have been paid. Discretionary income relates to spending because it is the money that is left over after all your monthly income. Discretionary spending is an important part because people will only spend money on things like travel, movies and consumer electronics if they have the funds to do so. Some people will use credit cards to purchase discretionary goods. Discretionary income can relate to savings because it is the money that one has left over could be used towards saving for something in the future.

Tips for a well-rounded budget include, account for every dollar, focus on what really matters(your needs and wants), prioritize your debt, track your budget using a strategy that works for you, give yourself some extra money(just incase) and adjust your budget as time goes on.