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Jan 18, 2012
Budgeting
Shelter
The shelter expense for family budgets is one of the most misunderstood categories of all. Why? Because we are told we have total control over the choices available.
The first and second issues are inseparably linked: availability and affordability.
Availability
Where do you live? Actually, the questions is, “What geographical location do you reside? Are you in a remote community, a large urban centre, a rural setting? These situations dictate price and availability.
In larger urban centres there may be appear to be more choices but vacancy rates determine availability as market conditions (supply and demand) affect house prices.
In other words, urban centres tend to be more complicated. Where you live may depend upon the need for schools, access to public transit or the worksite.
Now that we are finished this short summary of issues we do not fully control, we move on to affordability.
Jan 18, 2012
The 5 Year Lock-In is Back
The Bank of Montreal’s January 12th 2012 media-attracting announcement of 2.9% interest for a 5 year mortgage sent a few shivers up and down my central nervous system. Why? Because I remember all of those locked in mortgages in the early 1980s – where people rushed to get locked in at extremely high rate mortgages at 18% or more because of fear.
Fear is a great motivator. Especially when it is disguised as a great opportunity to protect yourself from something bad like interest rate hikes – just lock-in now for 5 years.
Dec 21, 2011
Merry Christmas
It’s that time again. I’ve already wished the Canadian banks a Merry Christmas. I’ve also been ringing the warning bells about Christmas spending. Let me now wish everyone else the very best for this wonderful season. Merry Christmas. Thanks for listening.
Let me leave you with a special letter written by a friend who reaches out to his adult daughters.
Dear ___________, ______________
When I was young we used to sit down and write long letters at Christmas, especially to our families. It might be to our mother or father, a sister or brother, a cousin, aunt or uncle. Many of these letters took many days to construct because to write something was much more difficult than to say it, and we would dig deep into our hearts to say what we really wanted to at Christmas.
Dec 15, 2011
Twas the Night Before Default
Twas the night before default, when all through the bank vault,
Not a super committee was meeting to bring it to a halt.
The cookie jar was empty and the cupboards were bare,
No presents from St Nicholas just tidings to beware.
Parents and children were sleeping in their rented beds,
Can I have my vision back danced in their heads.
And mamma cried in her handkerchief, where did all the money go?
Down the chimney, down the drain, out the window and into the snow.
When out on the lawn a bailiff made such a clatter,
I sprang from the bed to see what was the matter.
He hooked up the car, the boat, the trailer in a flash,
See what happens when you run out of cash.
The sun don’t shine on a mountain of debt,
Promises, promissory notes and bills all unmet.
“What will we do?” said the debtor to St. Nick.
Hope Hope Hope, stop borrowing, that’s the trick.
To the debtors of the world, Merry Christmas and Happy New Year!
Do not finance this season of good cheer.
Cut up the credit cards, count your pennies and don’t be late.
Get an action plan that will finally clean your slate.
Dec 14, 2011
Looking Back
It’s that time of year again when we do some reflecting. What should we remember or what should we forget? Looking back presents an opportunity to learn from the good and the bad. My list for 2011 begins with the Tsunami in Japan.
- Tsunami in Japan
- HST Gordon Campbell and Christy Clark March 2011
- The Federal Election
- The Royal Wedding: Kate and William
- Death of Osama Bin Laden
- Death of Jack Layton
- Debt Debt and More Debt
- Debt Crisis #1 Greece
- Debt Crisis #2 The US hits the Roof (Debt Ceiling)
- Debt Crisis #3 the Europe
- Debt Crisis for Canadians?
- Occupy Wall Street
Dec 12, 2011
WARNING - SCAM ALERT! Fraudulent use of our name!
Beware anyone using the services of a website www.billermanservicesinc.com. Solutions Credit Counselling Services is NOT - I repeat NOT in any way affiliated with this website or this company. We have written to them today to demand they remove any and all reference to our firm.
We recommend anyone visiting this website use extreme caution – they are FRAUDENTLY using our name and the name of our Association.
If you have provided this website with any information we recommend you contact your bank and your credit bureau immediately to request they monitor your accounts for suspicious activity.
Dec 6, 2011
Debt Crisis Inflation and Merry Christmas
Kelly Sinoski reported in the Vancouver Sun in November that municipal spending was up 46% over the last 10 years in British Columbia according to the Canadian Federation of Independent Business. Although no direct reference is made to debt this piece of news gives a bird’s eye view of how governments throughout the world have been struggling – and it begins with expenses, or more specifically uncontrolled expenses.
We normally think of inflation as being separate from taxation. Even inflation as reported by governments excludes certain items that have volatile price movements, most notably food and energy. These are big ticket items for consumers as are direct and indirect tax increases.
The above report noted that municipal revenues from sales of services — everything from parking fees to business licences — have more than doubled over the decade. Interesting how municipal revenues become uncontrolled expenses for consumers.
This begs the question - what are uncontrolled expenses? Is an uncontrolled expense for a consumer a tax increase from government(s)? What are uncontrolled expenses for governments? Who’s in control here?
Dec 6, 2011
Are You Having a Black White or Red Christmas?
I noticed the Christmas music hit the air waves in November. It seemed a bit early this year. Usually December gives us a full month of Christmas carols to enjoy. Of course Black Friday, the day following the US thanksgiving celebrations, is now considered the beginning of the Christmas shopping season. And, what a day that was.
According to a report from CBC news on November 28th, a record 226 million shoppers spent $11.4 Billion on Black Friday, November 24th 2011. On-line sales were up from $648 Million to $816 Million, and, for the month of November, online sales totaled $12.74 Billion.
Dec 1, 2011
Should kids be rewarded with money?
This is a million dollar question. The Globe and Mail brought the familiar topic up in November. As I read the article I couldn’t help thinking about Pavlov and his famous experiments on conditioning behaviour. Money has been widely accepted as a positive reward, but how money influences human behaviour is a little more complex than ringing a bell to get a dog to salivate or getting kids to act in a certain way by waving a dollar bill in front of their noses.
The Globe and Mail article gives a few examples how money can be a motivator like paying kids $20.00 for every A they received on their report cards. They admit the experts and parents are split on whether paying for performance is a good idea.
It was at this point when I couldn’t take it any longer. What experts are they talking about? Psychologists? Social Workers? Bankers? Credit Counsellors? Who was the study group? Where did they live? What were their income levels? Occupation? Age?
Nov 29, 2011
Inflation Up Bank Account Down, Debt Up
You wouldn’t believe how sick of chicken I am. I’ve been craving spaghetti and meat balls for several months now, but each time I reach for a package of hamburger, ouch! It’s $10 for two little hockey-puck sized pieces. I’ve tried to pick the package up and put it into my basket but frugality wins every time. I just can’t spend so much on so little.
I experience this price revulsion everywhere I go in the grocery store or when I fill up the gas tank. Bread. Coffee. Transportation. It seems to me that the inflation rate, announced this week at 2.3%, is so small compared to the prices stamped in dollars and cents on the stuff we really need on the store shelf or at the gas bar.
Statistics Canada’s November report confirms this feeling of being knocked out by the grocer and gas station attendant as food and energy prices were actually up 18.2% and food up 4.3% from October 2010. Wages certainly haven’t matched these increases as Statistics Canada reported in August 2011 that average no-farm payroll employees increased a meagre 1.9% over the year, the lowest growth rate since November 2009.
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