Financial Literacy Month in review

As we come to the end of November, we also wrap up Financial Literacy Month. This month was packed full of so many amazing and informative topics. We talked about how to maintain your credit score, growing your net worth, and mortgages for people that are self-employed!

Credit

In the beginning of the month we touched on credit scores. Credit scores are an important part in the home buying process. They show whether or not you are good at repaying your loans. They will also help determine the type of terms you are likely to receive. There are no quick fixes when looking to improve your credit score. Through dedication and hard work you will be able to improve it. By using your credit wisely and not exceeding your credit each month, you will learn to live within your means.

Making a budget and paying down your high-interest cards while still maintaining the minimum payments on other debts will help improve your score greatly. If you’re unable to make your payments on time, try to at least make the minimum payment or contact your lender is you think you will have trouble paying it. This will become very handy in January when your credit card bill has arrived, and you have to pay for all that December cheer. Use it as a way to improve your finances and boost your credit score!

Income

Later in the month we dug into mortgages for self-employed Canadians. Self-employed Canadians may have a few more obstacles in their path when looking to get a mortgage. The big difference is that self-employed will have to prove their income to any mortgage lender they apply to. Self-employed Canadians will have to show a little bit more documentation. Mortgage lenders will want to see at least two years of tax returns when assessing your documentation.

Did you know we had a workshop that went over mortgages for self-employed Canadians this month? David MacDonald CPA, and Michelle Murphy, from Genworth Canada, joined us for a workshop. We discussed qualifying for a mortgage, the importance of using a mortgage broker, and the ins and outs of your small business finances. If you missed the panel discussion and would like to learn more, check out our Facebook page to watch the recorded live stream!

Assets

To wrap up Financial Literacy Month, we dove into assets. Assets are a great way to boost your net worth and make some profitable investments towards your future. There are many different assets that can boost your net worth. The most common ones are owning your primary residence and by owning rental properties. Your net worth increases every time you make a payment on your mortgage!

Rental properties are a great source of immediate income as well as a long-term investment for when you retire. Rental properties will appreciate over time and you will build equity on the properties, which can be used to secure even more rental properties! Owning rental properties are an amazing way to help you build security for the future and will allow you more control over your assets.

As we head into the holidays, take time to discuss your financial interests with your family. While the topics may be delicate to discuss, the outcomes can be very positive and help family members deal with issues that could come up in the future.

If you have any questions about financial literacy month, or planning your finances into the future, Get in touch with us here!