By Sheryl Smolkin

Your child is heading off to college or university out-of-town. While many students live in residence for a year or two, after that they may prefer to rent an apartment or share a house with others. So in addition to budgeting for rent and utilities, your child may have to buy everything from furniture and dishes to pots and window coverings.

As the parent of two children (now adults) who moved out during their university years I can tell you from experience that less is always more. We bought far too many pieces that were either too breakable or too heavy when my daughter got her first apartment and in subsequent years she abandoned items that were too impractical to move to the next place.

Based on our experience, here are some suggestions on how to furnish a functional student apartment on the cheap.

1. Bed: The bed is the one item you should probably buy new and spend the most on. Because of bed bugs and other hygiene issues Goodwill and other charitable groups won’t even take used mattresses. Futons, hide-a-bead sofas and fold out foam couches are possible options for studio apartments.
2. Garage sales: Generally it is preferable to buy most of what you need in the city where your offspring will be studying, but garage sales can be goldmines for small appliances, dishes and cutlery. Stay away from less essential, once trendy items like fondue pots and electric yoghurt makers.
3. Desk: Anything from a kitchen table to an old door on four legs can be used as a desk. Some students are most productive on their laptops lying in bed or on the floor surrounded by piles of research. However, a student who is going to be spending long hours on a computer may avoid repetitive strain injury with an inexpensive ergonomic work station and chair which are usually available at a reasonable cost from stationery and department stores.
4. Former tenants: Former students who are moving on may be happy to sell dressers, tables and chairs and other essentials for a small amount just to get rid of them. This may not work out in cases where former tenants graduate in May and new students only take over the apartment later in the summer.
5. Online purchases: There always pages and pages of listings for used furniture on Craig’s List and Kijiji. Make sure you measure the space you have before you buy items like sectional sofa or upholstered arm chair that won’t fit in the elevator or through the door of the apartment.
6. Storage: When my son moved into a room at a co-op house at University of Toronto, the first thing we notice is the lack of storage space. So we headed out to Canadian Tire for a self-assembled wardrobe for his clothes shoes and other paraphernalia.
7. Window coverings: Window coverings are important for privacy, particularly if the window is close to the street or on a lower floor. They also keep in the warmth in winter and block early morning light. Inexpensive roll blinds can be cut to size and purchased at most hardware and home décor stores.
8. IKEA: You can buy anything from kitchen supplies to furniture to lighting solutions at IKEA. Unfortunately IKEA does not have a store in Saskatchewan but items can be ordered online from their catalogue and delivered. Keep in mind that this self-assembled furniture is often not durable and typically will not survive multiple moves, Also, if pieces are missing or broken (which can happen), it is a lot more difficult if you can’t just run over to the store to get what you need.
9. Locks: One of the apartments my daughter rented in Montreal was broken into. The most valuable thing she had stolen was her CD collection and fortunately our home insurance covered the cost of replacing it. These days students have computers, tablets and other assorted expensive electronics. If the landlord will allow it, you may want to replace the existing lock with a Medeco Deadbolt or other similar high security lock.

And circling back to the theme of “less is more,” remember that after graduation, the whole apartment of furniture and other stuff could end up in your garage or basement for an indefinite period. But the upside is you can always “pay it forward.”  The summer before my son headed out to grad school in Vancouver, I sold a whole garage full of his stuff to my personal trainer for her college age daughter who was furnishing her first apartment!

By Sheryl Smolkin

And before you know it it’s almost the middle of August. I haven’t seen any coloured leaves drifting down…yet. But already the days are getting shorter. This week we feature interesting blogs from top bloggers who kept on writing even when many of us were on vacation.

In GetSmarterAboutMoney.ca, Caroline Cakebread shares 5 ways to tap your home for cash in retirement. They are: sell and rent; sell and downsize; become a landlord; rent out your home  temporarily; and, get a reverse mortgage.

If you are in your 50s and starting to get really serious about planning your retirement, take a look at Rich at any age: In your 50s by David Aston, Romana King and Julie Cazzin on MoneySense. They suggest that you get a ballpark figure of what you will need; max out your savings; and then, pick the right moment.

Are you still agonizing over whether it makes more sense to save in an RRSP or a TFSA? Then take a look at RRSP Myth – Retirement Income Has To Be Lower For RRSP Benefit by Mike Holman on MoneySmart. He gives interesting examples to illustrate that even where income in retirement is a bit higher than in the earning years, RRSPs will likely still save you some taxes or at worst – won’t save you any tax, but won’t cost you anything either.

Mr. CBB gives advice to a couple with $5,000/month of discretionary income on Canadian Budget Binder about buying their first home. He says they should talk to a financial advisor about retirement savings and life insurance; figure out the size of mortgage they can afford on one income; factor in home maintenance costs before they buy; and understand how to be prepared for emergencies.

Dan Bortolotti writes on Canadian Couch Potato about Calculating Your Portfolio’s Rate of Return. Rate of return calculations fall into two general categories: time-weighted and money-weighted. If a portfolio has no cash flows (that is, the investor makes no contributions and no withdrawals), both methods produce identical figures. He says the key point to understand, therefore, is that any differences in reported returns come about as a result of cash inflows and outflows.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

The 2015 Sanofi Canada Healthcare Survey reveals that virtually all health plan members are positive about their current health plans but almost two-thirds of employees responding to the survey would like the opportunity to spend their benefit dollars on programs that are more tailored to the needs of their family. 

Ninety-four percent of plan members are positive when describing the overall quality of their health benefits, with 58% describing them as very good or excellent. This result has been consistent since the Sanofi survey first posed the question in 2006. 

Similarly, 93% of respondents believe their health benefit plan meets their needs and 56% of this group judge that it does so extremely or very well. Health benefits also continue to be an effective means to attract and retain employees, as 77% of respondents say they would not move to a job that did not include health benefits (rising to 80% in Manitoba/Saskatchewan and decreasing to 66% in Quebec). 

When asked which statement most closely describes their plan, 77% of plan members selected “a traditional plan that defines what is covered and the levels of coverage” and 23% selected “a ‘flex’ plan that allows them to choose levels of coverage.” When then asked which type of plan they prefer, 64% of members opted for the less-prevalent flex plan and 36% opted for the traditional plan. 

A separate survey of plan sponsors indicates that 32% offer flex plans. Larger employers (more than 500 employees) are more likely to do so at 50%, followed by mid-size (34%, 101–500 employees) and smaller employers (18%, up to 100 employees). 

Plan members, meanwhile, are consistent no matter the size of their organization. Approximately two-thirds said they prefer a flex plan over a traditional plan. 

“Plan members see great value in having a health benefit plan, but they also want to have a voice in decisions around what is covered. That’s a huge challenge for plan sponsors, but perhaps this is an opportunity and the time is right to make change,” says Susan Belmore-Vermes, director group benefits solutions, at Health Association Nova Scotia. “The question is, how do we as an industry create a strategy to redesign plans that are decades old for many of us?” 

Plan members’ high satisfaction levels can also contribute toward a sense of complacency in benefits management, warn members of the advisory board. As a result, change is generally a response to “burning platforms” rather than evolving needs. 

“Plan members are telling us there’s a desire for flexibility and personalization, and the timing is right because we’re seeing greater differences between the generations and we have this great ‘bulge’ of baby boomers in the workforce right now. The ‘one-size-fits-all’ approach of traditional plans doesn’t really suit this reality,” says Marilee Mark, vice-president, market development, at Sun Life Financial. 

As well, plan members’ changing needs do not necessarily point to added costs for the employer. “For example, there’s a growing interest in getting access to resources and education,” says Mark. 

Board members also point to a potential sleeping giant: chronic disease. “Chronic disease in the workplace is very prevalent and employers are not paying attention to it. We can’t wait for it to become a burning platform,” notes Carol Craig, director of human resources, benefits and pensions at TELUS. 

When plan members were presented with seven possible new benefit offerings, they said they would most likely use onsite screening with a healthcare professional to determine personal risks for chronic diseases (45%) followed by on-site immunization for infectious diseases (40%) and coverage for fitness/yoga classes (34%). 

Plan members also reported using paramedical services (i.e. massage therapy, physiotherapy, chiropractic services) an average of 7.3 times in the last year, the second highest rate of utilization after prescription medicine (9.5 times).

By Sheryl Smolkin

Every week in this space we offer examples of some of the blogs and personal finance articles we believe represent the Best from the Blogosphere. That’s why we were interested in a list recently published by LSM Insurance of the Top 50 Canadian Personal Finance Websites using various online metrics described in the accompanying article.

Here are several blogs (as opposed to mainstream media outlets) that made the list, and the “most shared content” that helped them get there.

Tom Drake at the Canadian Finance Blog was #10 on the list. How to Calculate Your Credit Score For Free has been a perennial favourite. Drake says that it’s actually fairly easy to see where you stand when it comes to your credit score. All you need to do is visit this credit score estimator and fill in the fields. Once you have done so, the calculator will tell you what range your score falls into.

Young and Thrifty was ranked #13. Sean Cooper helped to put this blog over the top with his guest post How to Achieve Findependence at Age 31. His three step approach is to achieve mortgage freedom by renting the top floor of his house and living in the basement apartment; have multiple income streams – by day he is a pension analyst, and by night he is a financial journalist and landlord; and, frugal living. You can see his own blog here.

The 24^th spot went to Mo Money Mo Houses where How Can She Afford That? She Can’t, That’s How generated considerable interest. Jessica Moorhouse says people may appear to be more affluent than you are because they have big houses or fancy cars, but if they are in debt up to their eyeballs, it’s all an illusion. In order to maintain a lifestyle in the black, her parents had to live frugally. They only bought what they needed and lived fairly simply. To this day, that’s how she still lives her life and that’s why she is also not in debt.

At #30, Nelson Smith on Sustainable Personal Finance got the blogosphere buzzing when he wrote about Living in a Shipping Container – really! After their life is over making trips across the ocean, shipping containers are often auctioned off to the highest bidder. Sometimes these high bidders are businesses looking for cheap storage options. Or, if you want to get really crazy, you can build a house with them. Before you poo-poo the idea, Smith says that you can check out some pictures of houses built from storage containers in his blog post.

And rounding out the list at #50, Nancy at Money on Trees questions whether Netflix is really all you need. As a first time home buyer with little discretionary income, she says she simply cannot afford to spend $80 a month on satellite or cable. What she really misses are sports but even these are becoming more accessible as major events like the 2014 Sochi Olympics and CBC’s Hockey Night in Canada are streamed online. We have also been watching many Pan Am events online this summer and displaying then on our “smart” television which has a bigger screen.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

I don’t often review personal finance books because it seems to take an inordinate amount of time to wade through yet another statement of the obvious just to glean enough cogent information to give readers a taste of what the book is all about.

But when I read accolades from the likes of Gail Vaz-Oxlade, Preet Bannerjee, Roma Luciw, Dan Bortolotti plus a whole bunch of my other favourite personal finance bloggers in the introductory pages of the book, I thought I’d better keep on going to find out what all of the fuss is about.

Author Robert R. Brown says Wealthing Like Rabbits is written to be a fun and unique introduction to personal finance and suggests that any book that includes sex, zombies and a reference to Captain Picard is “an absolute must read,” regardless of genre.

Brown starts out by asking how many rabbits there would be after 60 years if 24 rabbits were released on a farm on a great big island. Before providing an answer to this question, he introduces the need to save for retirement, although he doesn’t begin to predict how much you or I will need. His only conclusion is that “more is better” because it is better to be 65 years old with $750,000 saved than 65 years old with $75,000 saved.

Then he reveals that there would be 10 billion rabbits after 60 years and launches into a discussion of the history and key features of registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs). Subsequently he riffs about how many zombies there would be in England if France sent 100/week for 40 years.

If you are still with me, you may wonder — what is the point of all this?

Not surprisingly of course, it’s to illustrate the power of compounding, whether in relation to rabbits, or money or zombies. We learn that just $100/wk deposited in an RRSP earning 6% for 40 years will add up to a nest egg of $624,627.

But the positive and the negative impact of compounding interest are also very cleverly brought home in later chapters. I particularly liked the comparison of brothers Mario and Luigi who both had similar incomes and $100,000 for a down payment on a house. They went to the bank to find how big a mortgage they were eligible for.

Mario’s banker told him “he could afford” to buy a house for $525,000. Luigi told the mortgage specialist he needed $10,000 for closing costs and the $90,000 balance had to cover at least 20% of the purchase price of the house so the most he would be willing to spend is $450,000.

The story continues with Mario buying a 3,000 square foot home for $525,000. Luigi sticks to his budget and buys a 1,600 square home nearby for $350,000. Over 20 years, compound interest on the mortgage means that Mario ends up paying $807,538 for his house while Luigi only has to fork out $538,359.

Similarly, when it comes to debt, Brown illustrates that high interest credit card debt can quickly escalate if balances are not paid off every month. Even I did not realize until recently that if you miss your payment due date by even as little as one day, the interest-free grace period completely disappears. In fact you have to pay interest on the amount of each transaction from the date each and every purchase was made.

Brown also reviews the characteristics of a line of credit; a home owner’s line of credit; bank loans and consolidation loans. While generally he believes all of these can cause severe damage to your financial health, he recognizes that when handled properly, they each have their place.

But he draws a line in the sand when it comes to payday loans. Never, ever get a payday loan, Brown says.

He gives the example of Buddy who borrows $400 from a payday loan place because his furnace broke down. He is charged $21 for every $100 he borrows for just two weeks. Two weeks later he pays the payday lender $484. That’s 21% for only 14 days, which works out to 546% annually. And that’s only the beginning.

If Buddy can’t pay in two weeks the payday loan company will charge him an NSF penalty and continue to accumulate stratospheric interest rates on the whole amount. Further defaults mean he will likely be hounded both by telephone at home and at work day and night. The file may be handed over to an even more aggressive collection agency.

In the second last chapter, Brown offers a brain dump of financial tips (which he doesn’t call “Fifty Shades of Brown”):

• Spousal RRSPs are cool.
• MoneySense magazine is a great source of personal finance information.
• Eat dinner at home. Then go out for a fancy coffee and desert to Starbucks.
• Buy life insurance, not mortgage insurance from your bank.
• Read Preet Banerjee’s book Stop Overthinking Your Money for the skinny on life insurance.
• Use the noun“wealth” as a verb. So instead of saving $150/week in your RRSP you will be wealthing your money.

And finally, Brown’s parting words at the end of the book are “you’ve got to show up.” Put some money away for your future. Live in a house that makes sense. Be smart about how you spend your money. Spend less than you earn. Be comfortable living within your means. He says it really is that simple.

Wealthing Like Rabbits is funny and engaging and it hits all the personal finance bases. Regardless of whether you are a Millennial, a Gen Xer or a Boomer, you will find lots of tips on how to save more, spend less and still have a lot of fun along the way. 

The book can be purchased in hardcover for $16.95 and the epub and kindle versions are available for $7.99.

By Sheryl Smolkin

Barbecuing is the obvious alternative when you don’t want to cook inside and heat up the house on a hot and muggy summer day. But feeding a crowd can get expensive if you entertain frequently or if there always seems to be a gang of hungry teenagers foraging for food in your fridge. This week we feature blog posts that have useful tips for cheap and cheerful summer barbecues.

First and foremost you need a grill. Barbecue Bible’s Steven Raichlen offers 8 questions to ask yourself before buying a grill or smoker. How much can you afford? Charcoal, gas, wood-burning or other? How many people will you be cooking for? What foods do you enjoy grilling or smoking? Is portability important? These questions and others will influence your purchasing decision.

Real Simple has 10 Money-Saving Ideas for a Summer Barbecue. Some examples are:

• Skip the porterhouse steak in favour of a great flank steak.
• It’s super easy to make do-it-yourself rubs and sauces.
• Maintain your grill properly so it will last as long as possible.

In 7 Tips for Hosting a Low-Budget BBQ Readers Digest says don’t stress about impressing your guests with an elaborate menu. Instead of trying difficult recipes, serve simple dishes that you know they will like. Plus, if the kids at your barbecue are picky eaters, your uncomplicated menu is bound to please them.

Tiphero says the way to have a cheap and successful barbecue is to make the most of the meat you purchase by serving skewers. It breaks up the meat with some veggies to make for a nice, filling snack on a stick. Skewers are a great presentation and work wonderfully for portion control.

And finally, Stockpilingmoms gives 7 tips to a fun and cheap BBQ. What about a hot dog or bratwurst bar? Grab hot dogs, bratwurst or sausages for less than a steak, chicken or burger would cost.  Pick out regular, wheat, onion and poppy seed buns.  Offer different fresh or grilled veggies, relish, chili, and all your favorite condiments for a fun spin on a typical barbecue.  Let everyone build their own dog mixing and matching classic flavors to create a new favorite.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

Have you noticed that your most recent pay cheque is higher than usual? That could be because you have paid the maximum in Canada Pension Plan (CPP) and (EI) Employment Insurance Premiums for the year. 

The total amount you must contribute to CPP in 2015 is:

($53,600 [maximum earnings] – $3,500 [basic exemption]) x 4.95% = $2,479.95 

This amount is matched by your employer.

Similarly, the annual Employment Insurance (EI) maximum earnings are $49,500 with an employee contribution rate of 1.88%. Therefore the maximum EI contribution you have to make this year is $930.60. Your employer must remit 1.4 times the maximum premium you pay up to $1,302.84.

These annual maximum CPP and EI contributions apply to each job you hold with different employers. So if you leave one job during the year to start work with another company, your new employer also has to deduct EI premiums without taking into account what was paid by the previous employer. This is the case even if you have paid the maximum premium amount during your previous employment.

Also, if you have several part-time jobs or a part-time job in addition to your full time position, your secondary employer is also obligated to withhold CPP and EI premiums based on your earnings regardless of how much your primary employer is deducting. If as a result, you over- contribute to either program, you will be credited with excess when you file your income tax return for the year.

That means if you earned $50,000 in the first half of the year, by early July your pay will go up by 6.83% or about $131.45 per week. If your annual salary is lower, your “Withholding Tax Freedom Day” will occur a little later in the year. But whenever it kicks in, it will feel like you suddenly got a healthy raise.

So what are you going to do with your windfall? How about joining Saskatchewan Pension Plan (SPP) and setting up a monthly deposit equal to the amount you would have paid to the government?

Depending on your income level, you could easily contribute the $2,500 SPP max in the second half of the year. Beginning January 2016 you could elect to continue contributing at a reduced level throughout the coming year. Or in the alternative, you could take a break until later in 2016 when you have again paid the maximum CPP and EI to start saving again in SPP.

A key feature of SPP is that how much you contribute and when is completely up to you. You can change your method or level of contribution at anytime.

 Choose from any of the following methods:

• by mail (A contribution form is required )

• in person or by telebanking at your financial institution

• by phone using your credit card (1-800-667-7153)

• online from this website

• directly from your bank account on a pre-authorized contribution schedule (PAC)

Contributions to SPP are permitted up to an annual maximum of $2,500, subject to your  available RRSP room. And because SPP contributions (like contributions to an RRSP) are tax deductible, if you are making regular contributions, you could file a Form T1213 Request to Reduce Tax Deductions at Source so your employer remits a lower amount of income taxes during each pay period.

That means that while you can not only build a retirement nest egg in your SPP account once you no longer have to contribute to the CPP and EI programs, you will actually have more disposable income every month.

By Sheryl Smolkin

This week we focus on travel and interesting articles by writers named in Canada.com’s list of 11 Canadian travel bloggers sure to inspire. Included below are excerpts from Canada.com’s profiles of several of these bloggers.

From kicking it with grandchildren to strolling solo in some of the more sought-after destinations in the world, travelling granny Evelyn Hannon shares her tips and tricks for women’s excursions on her web site, Journey Woman. In Test Your Travel Insurance IQ she presents a useful quiz for readers who may not fully understand the reasons for and potential pitfalls of travel insurance.

Founder of I Backpack Canada Corbin Fraser writes about destinations, activities and adventures from the perspective of an independent backpacker travelling throughout the country. Insider travel tips, inspiring videos and more can be found on his Canada-specific travel blog. 4 Valuable Tips for Moving Across Canada is a useful resource if you are trying to figure out how to get you and your stuff from one part of the country to another as cheaply as possible.

Canadian couple Dalene and Peter Heck chronicle their full–time travel experiences which began in 2009 on Hecktic Travels. After selling everything they owned, they hit the road. Being together 24-7 for several years straight is a great litmus test for any relationship. But it’s one they’ve clearly survived, because their adventures continue. They answer some of the most frequently asked questions about how to travel long term and speak to the biggest rewards in this travel lifestyle.

If you’ve ever wanted to just pack a bag and go on a trip by yourself, then read Janice Waugh’s work on Solo Traveler Blog to get inspired. If you are tired of flying economy and being kicked in the back by the child behind you for the whole trip, you will be interested in her blog Best Seat on the Plane According to Your Needs and Budget. She says some planes are definitely more comfortable than others, so choose a booking engine that gives you details on the aircraft scheduled for the flight.

And finally, using the most efficient ways to convert to local currency when you travel outside the country can save you big bucks, says Barry Choi in his guest post The 5 Best Currency Exchange Options For Travellers on the Financial Independence Hub. According to Choi, using ATMs is the generally the best currency exchange option to get cash at the lowest rate. ATMs are everywhere and the best part is they only charge the spot rate of the day plus 2.5%.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

By Sheryl Smolkin

You are expecting a new baby and the house feels too small. Your kitchen and bathrooms look shabby and you want something more up-to-date. You need a home office. 

In all of these circumstances you may be tempted to sell your home and buy a new one that has the features your family needs. However, when you consider the costs of moving and what you can get for your money, you may decide that renovating makes more sense. 

But everyone knows someone who has experienced a renovation nightmare. The project that was supposed to take two months stretched to six. The $50,000 budget doubled. The contractor disappeared before finishing the job. 

The more planning and care that goes into the renovation in advance, the better your chances of having things turn out to your satisfaction. Here are some tips from the Canadian Consumer Handbook[1] that can help you hire the right people to do the right job properly.

1. Scope of the project: Make a detailed list of what you want to accomplish. Any contractor you hire will base their quote on your specifications. If the scope of the project changes or you request extras, the renovation will cost more and take longer.
2. Permits: Check with your municipal building inspection department to find out which permits you’ll need before you start work (this is not your contractor’s responsibility unless that is spelled out in your contract) and check which inspections you’ll have to arrange part-way through or when the project is finished.
3. Find a contractor: Ask friends, relatives, neighbours and local business associations for recommendations. Talk to at least six prospects and interview three. All subcontractors or tradespeople like plumbers or electricians should be certified. Contact your local Better Business Bureau or business association to see whether any complaints have been filed against firms that you are thinking of hiring. Ask for and call references.
4. Get quotes: Provide each supplier with the same specifications so you can compare apples to apples. Ask for a written estimate of all costs including labour, taxes and any extra charges. Paying cash “under the table” for a job is not a better deal. If you pay cash you have no warranty, no recourse for poor workmanship and the added risk of liability if an injury takes place on your property.

The Contract

Make sure you and your contractor have a written contract. Don’t sign it until you have fully reviewed it, are satisfied with all the terms and are sure that the contractor is capable of meeting your needs.

Ask the contractor to include a detailed description of the work to be done. Get him to list specific information about products, manufacturer, size and colour of materials and equipment to be installed.

It is a best practice to even include product numbers for items such as carpet, tile, countertops and hardwood floors etc.. The more details that are contained in the contract, the less room there is for error.

The contract should include the following information:

• The type and amount of work to be done.

• Who is to complete the work (including a list of any subcontractors and who is responsible for their payment and when).

• Who is responsible for ordering and paying for materials.

• Who is responsible for permits.

• The total cost.

• What percentage is the deposit  and whether it seems reasonable.

• The start date and date of completion.

• Who is responsible for clean-up afterwards.

• The business and GST/HST number of the contractor.

• The name and address of the contractor and your name and address.

 

For more information on what to do when hiring a contractor, visit the Get It In Writing website, run by the Canadian Home Builder’s Association.

Surviving your reno

Hiring the right contractor and nailing down the cost and the duration of the project can help facilitate a successful renovation, but don’t forget other practical considerations.

Can you still live in part of your house while the other part is being renovated? If not, you may have to factor in a short-term rental for your family. Will your neighbours be inconvenienced because workers are parked on your street day after day? Talk to them to be sure they understand what you are doing and ask for their patience.

Be prepared for surprises. If your current home is not compliant with building codes, unexpected structural work like rewiring the house or removing asbestos from the walls may be required. In these situations you will have to either come up with more money or re-think the scope of work you can afford.

Finally, take heart. A renovation is a little like having a baby. Once the project is finished and you have a beautiful home addition to show for it, the birth pangs will quickly be forgotten.

ALSO READ: Consumer Tip – Contractors, Saskatchewan Ministry of Justice and Attorney General

[1] Produced by the Federal-Provincial-Territorial Consumer Measures Committee

By Sheryl Smolkin

Back from two weeks of vacation and back in the saddle! While it’s hard to get re-establish anormal routine, it’s not difficult to find many interesting personal finance stories and blogs to share with you because all of our favourites kept on blogging when I was away.

On Boomer & Echo, Robb Engen wrote about The Evolution of Loyalty Cards. Scanning weekly flyers and clipping coupons is a great Canadian tradition but he says that like the landline telephone, VCRs, and analog TV – coupons and flyers are on their way out. Retailers are moving online and developing smart phone applications to get more personal with their offers.

In Is Paying Down a Mortgage Underrated? on Our Big Fat Wallet, Dan says the real value of paying down the mortgage isn’t the interest savings. With rates as low as they currently are, the interest you save will likely be minimal. He suggests the best approach for anyone looking to use extra funds to pay down their mortgage is to consider a ‘hybrid’ approach – using the money to reduce the mortgage and then putting more money each month towards investing.

Blond on a Budget’s Cait Flanders has finally finished her year-long shopping ban. In a herculean 6,000 word blog The Year I Embraced Minimalism and Completed a Yearlong Shopping Ban she explains why she did it and how it changed her life. Flanders says, “There is nothing I need right now that could make my life better than it already is and that’s a great feeling to end this year-long challenge with.”

Globe & Mail reporter Ian McGuigan agrees that accumulating wealth is a challenge but he says that “decumulating” it can be trickier still. In a recent article he refers to the paper Making Sense Out of Variable Spending Strategies for Retirees written by Wade Pfau, a professor of retirement income at American College in Bryn Mawr, Penn. McGuigan notes that spending only 4% a year works out pretty well if you don’t want to outlive your money. It also keeps your spending at a constant level, in after-inflation terms. However, it’s not so good if you’re interested in being able to live as well as possible in retirement.

Guess who’s saving for retirement? The kids  reports Adam Mayers at the Toronto Star. While we often point the finger at young people as having limited interest and understanding of their personal financial affairs, Sun Life finds that’s not so. Younger workers know a good deal when they see one and like all smart consumers they’re snapping it up. Only 40% of those in their 40s and 50s are taking full advantage of matching Registered Retirement Savings Plan or pension money in plans Sun Life administers. On the other hand, 90% of those in their 20s (presumably new employees) are opting in.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.