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4 Basic Steps:To Find Hidden Investment Money

January 3rd, 2013 | by Martin Keane
4 Basic Steps:To Find Hidden Investment Money

Investing regularly is important. If you’re going to achieve your retirement and other financial goals, you should consistently contribute to your RRSPs, TFSAs and non-registered investments. “Paying yourself first” through monthly contributions is an excellent strategy to build an investment portfolio.

If you’re like most Canadians, however, you are not sure where to look to find the extra money needed to invest. There is a way – in fact, there are four good ways to perhaps uncover “hidden” money you alreadyhave, which you can use to start an investment plan on a regular basis. All it takes is a bit of smart money management using the strategies set.
1. Review your household budget

Carefully reviewing “how” your family spends its money and making changes can free up cash flow. Start by determining if expenses are essential, including your mortgage and utility payments, or if they are non-essential such as buying lunch at a restaurant every work day. Then ask yourself, what can I do differently? Small and simple changes like ensuring you turn off lights when you leave a room can make a major difference in how much money you have left to save each month.

2. Debt consolidation can increase you ability to invest

“Debt consolidation simply means paying off a number of higher interest rate loans or other high-cost debt by taking out a single loan at a lower interest rate for a consolidated overall lower monthly payment,” says Jane Olshewski, Manager – Financial Planning Programs at Investors Group. “You can choose to consolidate debts such as car loans, education loans, credit cards or lines of credit and benefit through a single,more affordable monthly payment which is lower than the sum of the many monthly payments you were making previously.” It can be an effective way to regain control of your finances, manage your monthly cash flows, free up money for other purposes and reduce stress. Additionally, any repayment plan that can allow you to move from simply servicing your debt balances to actually eliminating them is positive as well. If you own a home, you can also consider consolidating your debt using a home equity loan. Your loan is secured by your home at usually a much lower interest rate than you currently pay on most credit cards, which can often range from 19 percent to over 28 percent. By paying less interest monthly, you’ve created additional cash flow that can be used towards your retirement, other financial goals or paying down your principal.

Check out TWO more options for saving money below.


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