Do you still have those dreams where you’re in school and you’ve missed or made a huge mistake on an important test.

Sorry to make you anxious, but you’re actually still being tested, possibly without you realizing it. Every time you borrow money, use your credit card or pay a bill, you’re being evaluated by Canada’s financial system.

Your grade is your credit score.

And every time you apply for a loan or a credit card, the financial institution involved can look up that credit score and use the information to decide whether to loan you money or not, and at what interest rate.

Some experts are saying the credit score was not originally intended to play such a huge role in loans but was intended to just provide one piece of information about a borrower.

Behind the numbers

So, what goes into determining your credit score?

• Your bill payment history, noting when you are late for things like utility and cell phone bills, and credit card bills.
• Any bills that have gone into collection.
• The amount of credit you’re using — your debt load.
• How much credit you have available.
• How much credit activity you’re been using lately.
• How long you’ve had your accounts.

The players

Canada’s two major credit-reporting agencies are Equifax Canada and TransUnion Canada. These organizations both collect credit information and distribute it to banks and lenders, but also to consumers.

Using your personal information, you can quickly access your credit score online from these companies, paying a minimal fee (about $25). Or, you can have your report mailed to you for free.

What the numbers mean

The Canadian agencies use a numerical system to give your credit score. Basically, they rate you with a number between 300 and 900 (or thereabouts), the higher number indicating a lower lending risk.

So, getting a score of 700 puts you in an average range, meaning you’re likely to get loans at decent rates.

Why check?

Most people look up their credit score when they’re about to apply for an important loan like a mortgage and want to know how it’ll go. Seeing your score can help you better understand what potential lenders are telling you or are about to tell you. It also allows you to see your information and possibly correct any problems or work towards improving your credit score.

Also, credit experts suggest you check your score to ensure there are no errors and that there’s been no fraud on your account. Is this paranoid? Maybe. But if you’ve lost your wallet recently or you have suspicions, checking your score will for certain reveal to you if anyone is using your personal information to borrow money.

Will you check?

Some of us dread hearing the truth about ourselves, and the truth about our credit past is no exception. If you know all is well, perhaps checking won’t be a big deal. Maybe you’ve had rough times and don’t want to know that others remember.

Still, it’s good to know this information is available to you when you need it. Check when you’re really ready to see how you did on this one, important test.

The countries richest CEOs earn 189 times what the average Canadian does. According to the Canadian Centre for Policy Alternatives the average annual salary in this group is $8.38 million. By the time you read this, Canada’s top-100 earners have been paid in two weeks what it will take most of us 10 years to make.

“The gap between Canada’s CEO elite 100 and the rest of us is growing at a fast and steady pace, with no signs of letting up,” says economist Hugh Mackenzie, who authored the report.

I promote saving for a rainy day and being financially fit, but admit I feel a little downtrodden when I hear the disparity of incomes in Canada. How can I tell someone who makes a decent living at $80,000 a year and supports their family, to diligently save for retirement and have an emergency fund, when there are people who might work in the same building as us making almost 200 times.

When it comes to saving, we just need to remember that our salary, like most other things in our life, is relative to our surroundings.

No Matter What You Earn: You Have To Save

We can never live beyond our means. If we make $3500 per month or in the case of Canada’s riches CEO’s Close to $700,000 per month the same principals apply. Save 10 per cent in your emergency fund, save 10-15 percent for retirement and have at least 3 months of surplus in your bank account to pay your month-to-month bills.

So, if the CEO of Bombardier lost his job today he could survive with the same lifestyle for 3 months as he looked for a new job.

Am I Too Rich to Save?

Recently I was invited to speak at a personal finance event held by ING Direct. The topic was the state of savings in Canada.  After the event a well dressed older lady asked me, “when can I just stop saving and start spending?”

I had never thought about this sweet dilemma before. She went on to explain that she has assets worth a few million and another million in the bank and now she wants to spend without shame. I asked her if she wants to leave an inheritance to her children, she replied “no way,” my kids are financially secure they don’t need my money.

It had me pondering the idea if we’re ever too rich to save? The answer is no! Savings is part of our life -  all our life.

Save In the Good Times… for the Bad Times

You only have to pick up the latest Hollywood Gossip magazine to find proof of what not saving can do to you. There’s always some story of one used to be rich and famous person who’s bankrupt. Imagine they had bought one less house in Beverley Hills or one less one-of-a-kind luxury car. Maybe giving all his friends Rolexes for Christmas was a bad idea. If they had been more careful when times were good, they would be much better off today.

We all have a responsibility to protect our future if we expect to live the same lifestyle, or even improve it in the future. We have to spend relative to what we make.  It can be frustrating to hear about Canada’s richest making 200 times the average Canadian, but that doesn’t mean you should destroy your chances of being financially secure.

No Matter The Salary The Rules Are The Same

Here is my message to all Canadians even the richest CEOs. Always have enough money in your rainy day account to get you through 3 months of bills and living expenses. Save for retirement, even if you’re already retired. Never put anything on a credit card that you can’t afford to pay with cash. Only go into good debt, like a mortgage or education. Extras like vacations, clothes and going out for dinner with friends must always be paid in cash. Never spend money this month anticipating paying it off with money you’re making next month.

Simple rules no matter what your salary.

After a long night of holiday fun, we often end up with a hangover the next morning. And after a long season of spending and indulging, we often develop a hangover of a different kind. This one shows up on your credit card bill and hurts, but in a different way.

You really don’t want that debt following you deep into 2012. You have things you want to do this year, and one of them is not stressing over money. Here’s some suggestions for getting rid of your holiday debt as fast as possible.

Consolidate

If you owe on your credit card, or multiple cards, transfer your debt to a product with low interest. That may mean a line of credit, or a low-interest balance transfer credit card. Putting your debt in one place allows you to make a plan for paying it off, and every percentage point counts when you owe, so really shop around to get a good rate.

Get on a system

Do a budget and figure out how much you can pay down your debt each month or week. Call your bank and have them take the money out of your bank account automatically. Keep your eye on your balance, of course, so you can call the bank and cancel a payment if you really need to. But avoid it: live on a budget so you can make that payment and get rid of the debt fast.

Ignore New Year Sales

What a clever marketing tool! In the days after most of us have cashed in on gobs of stuff, we are seduced into shopping even more. What do you really need this time of year? Even if there are deals galore, you’re still spending, and probably spending on wants, not needs. Stay home and hang out with friends or family instead.

Unsubscribe

If you’ve purchased things online for the holidays, you probably now have an email inbox full of reminders that today only you can get 30% off or free shipping. These deals are so very enticing. You need to get off these lists. The deals will be there again in the spring when you’re flush and you really do need to stock up again.

Make a list

If you truly need new clothes, household supplies or tech gizmos over the next few months, make a list of what they are and what you’re willing to spend. Stick to your list and don’t buy a new TV when all you need is a set of headphones. Set a time limit for your budget if you are finding it super tough to adhere to.

Find stuff to do

In the cold new year, it’s tempting to amuse yourself with nice dinners and movies at the theatre. Think of some cheap activities that will pass the winter: dinner parties, ice-skating, long walks, rented movies or trips to the library.

With a good plan in place, the expensive holiday season will soon pass. And you’ll be able to look ahead to a 2012 free of worrisome debt.

RateSupermarket.ca challenges Canadians to get financially fit in 2012

TORONTO, December 29, 2011…Millions of people commit to getting in shape for their New Year’s Resolution, but RateSupermarket.ca is challenging Canadians to get financially fit as well.  Canada’s rate comparison website for personal finance products urges consumers to tackle their personal debt and grow their savings in 2012.

“Getting healthy and starting a new hobby are all great resolutions for the New Year,” says Kelvin Managroo, President of RateSupermarket.ca.  “But given the current global economic situation and forecast for low growth over the next few years, the best thing Canadians can do in 2012 is pay down debt and grow savings.”

Here are RateSupermarket.ca’s top tips to get you started in the New Year:

1) Get Real About Your Debt

First things first, how much debt are we talking about here?  With automated payments coming out of your account, it’s easy to lose track of the total amount you owe.  Start by making a list of all your debts and their respective interest rate charges.  This includes balances owing on your credit cards (don’t forget the store cards), your student loan, line of credit, car loan and your mortgage.

2) Pay off Your Highest Interest Debt First

Sort your list of debts from highest to lowest in terms of interest rates.  Tackle the debt with the highest interest first.  This is likely to be your credit card debt which can have interest rates of 19-22 per cent.

In order to start paying this off you need to do 2 things: 1) STOP racking up more debt and 2) Make a BUDGET and stick to it.  Allocate a minimum of 10% of your after tax income to paying off your debt.

3) Build Equity in Your Home

By building equity in your home, not only are you paying off your mortgage faster, but you end up saving a ton of money in interest fees.  It’s also a great way to reduce your risk exposure when interest rates eventually increase.

Start by switching your monthly mortgage payments to bi-weekly rapid payments.  When you pay every 2 weeks instead of every month, you can save over $13,000 in interest over the life of your mortgage (assuming a $200,000 mortgage amortized over 25 years).  Then try to shave a year or two off of your amortization period when it’s time to renew or refinance, especially with today’s low mortgage rates.  Finally, take advantage of lump sum payment privileges and make an annual payment against your mortgage principal.

4) Be a Smart Shopper

Savvy shoppers save money.  Compare the market and take advantage of offers that can help you pay off debt faster or grow your savings more quickly.

If you have an outstanding credit card balance that you can’t get on top off, consider moving it to a low interest balance transfer credit card.  There are cards out there offering 0 per cent interest on balance transfers for up to 10 months, which enables you to pay down the balance rather than paying interest.

If you’re looking to build your savings, go with a provider that doesn’t charge fees, and always make sure that the interest rate, on products like high interest savings accounts, are competitive.  Take advantage of government incentives and top up your RRSPs and open a TFSA.

5) Get Some Expert Advice

If you feel like you’re in over your head and that no amount of budgeting can help you pay off your debts, then speak to a credit counsellor.  There are many not-for-profit agencies that can help you put a plan in place to get you back on the right track.

“With a little bit of planning and a whole lot of discipline, we can all become more financially fit in 2012.” says Mangaroo.

About RateSupermarket.ca (http://www.ratesupermarket.ca/)

RateSupermarket.ca is the largest impartial rate comparison service for personal finance products in Canada.  Founded in May of 2008, their easy to use comparison engines provide much needed transparency into the Canadian financial market and allow visitors to quickly find the best rates.  Over 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards, savings account and GICs.

RateSupermarket.ca Lists Ways Canadians Can Save On Credit Card Debt

TORONTO, December 13, 2011… With the holiday season in full swing, and more and more consumers pulling out plastic to fund their celebrations, RateSupermarket.ca has created their five top credit card tips to help Canadians save money before, during and after the holidays.

1) Get old debts under control

Are you still struggling to pay off LAST year’s holiday gifts, let alone this year’s?  If you have a large outstanding balance on your credit card, make a point of getting it under control.  Look into transferring the balance to a card that offers a low introductory rate on balance transfers, i.e. a 0% balance transfer credit card.  This means that more of your payments will go towards paying off the balance and not just the interest.

2) NEVER just pay the minimum

If you have $1,000 owing on a credit card and only pay the minimum amount each month, it will take you almost 10 years to pay it off and cost you an extra $1,056.70 in interest – yikes!  Make sure you’re paying more than the minimum interest owing each month.  And, if you regularly forget to pay the balance on your credit cards, set up an automatic payment from your bank account to your credit card, so you don’t get stuck with extra interest charges.

3) Look at your bill

You may be happy shopping for your niece or father in-law, but you’re probably not interested in buying a gift for the guy behind you in line at the store, or a scam artist on their computer overseas.  Regularly view your credit card statement online to make sure you actually bought what you’re being charged for.  Christmas is a busy season and fraudsters are on the move.  Also, pay attention to any admin or extra fees such as credit card insurance.  Don’t get caught paying for something that you don’t use or want.

4) Don’t use your credit card to take out cash

Interest charged on cash advances is typically in the area of 19% – 22%.  If you need extra cash, look into a line of credit or a small loan through your bank instead.  If you have a good credit history, interest rates on this type of a loan can be as low as Prime + 1% (Prime currently sits at 3% for most banks).

5) Ask for a lower interest rate

You don’t get what you don’t ask for.  If you’ve built up a good credit history with your current provider, there is no harm in calling the company to ask for a lower interest rate, especially if you intend to put more on your card this month than usual.  You may need to threaten to cancel the card and take your business to another low interest credit card provider before they take action, but it may be worth it to lower your interest rate.

“The holiday season is an important time to look at your credit card debt and spending habits”, says Kelvin Mangaroo, President of RateSupermarket.ca.  “But really it’s about putting in place good credit card practices that will help you save money year round.”

About RateSupermarket.ca (http://www.ratesupermarket.ca)

RateSupermarket.ca is the largest impartial rate comparison service for personal finance products in Canada.  Founded in May of 2008, their easy to use comparison engines provide much needed transparency into the Canadian financial market and allow visitors to quickly find the best rates.  Over 1.5M Canadians have turned to RateSupermarket.ca to save money on their mortgage, insurance, credit cards and GICs.

In a perfect world, we’d all owe no money, and have gobs of savings sitting around.

But we do not live in such a world. According to surveys, the average Canadian owes $1.47 for every $1 of their disposable income. Yikes!

The main culprits? Buying homes beyond our budgets (and fancying them up with pricey renovations) and spending too much on a daily basis. That overspending tends to happen on our credit cards. The high interest rates on these cards often turns small debt into a never-ending headache.

The Credit Card Facts

There were an estimated 37 million debit cards and 72 million credit cards in circulation in Canada in 2009. We spend more than $260 billion annually on our credit cards in Canada. Credit card debt in this country is hovering around $78 billion at any given time.

Yesterday you read Melanie’s blog about avoiding credit card debt, but what should you do if you’re already in over our head? Here are some suggestions:

Consolidate

Talk to your bank about moving your credit card debt onto a line of credit, or even a small loan. Make sure the interest rate is low (ask, and ask again if you’re getting the lowest rate, and don’t be afraid to shop around and tell your bank you’re doing so!) and make sure that the limit on your line of credit is not very high. Why? If you have $10,000 you can borrow, you just might borrow it! Transfer your debt onto the line of credit and set up monthly or even bi-monthly automatic payments to get rid of the debt in as short a time as possible.

Go Down to One Card

You do need a credit card to live, but you don’t need five! Chop up your store cards and get yourself down to just one card so you can track all your purchases and not get trapped in a debt-transfer vicious cycle.

Get a Better Card

If your credit card use is a problem, get yourself onto a single card that helps curb those problems. Find a low-limit card with a low interest rate and no fees. Yes, some cards do offer you great rebates on travel and gas and the like, but those aren’t for you if spending is an issue. If you do get a new card, read the fine print carefully and make sure your interest rate will stay the same over time. Talk to the company and ask about your credit limit to make sure it does not get increased unless you ask.

Keep a list

For some, simply cutting up the credit card is a good idea. But for most of us, we need that little baby to make certain kinds of purchases and it’s just not practical to get rid of it entirely. Instead, put some controls on your use. Perhaps keep a list (on paper or electronically) of every single thing you buy on that card. Keep the list in visible sight at all times (maybe near your desk at work or in the kitchen) so the bill at the end of the month is never a surprise.

Find your weaknesses

Keeping track of what you buy on credit helps you see where your spending goes awry. Perhaps you buy nice dinners out and don’t notice how chunky those bills are. Maybe you are an online shopper who gets excited every time another email hits your inbox reminding you about 30% off and no shipping. Tackle those spending habits by limiting how much you go out and unsubscribing from the deal emails.

But perhaps the best way to deal with credit card debt is to change how we view these buying machines. They’re not a gateway to get everything we want to make life easier. They’re merely a tool and one that can help us manage our finances, or mismanage them.

As Christmas nears, most of us are shopping for the perfect gift for friends and family. The perfect gift, however, sometimes costs more than we can afford.

At Christmas time, it’s perfectly acceptable to get extravagant and spend more than we make. Many of us justify the debt we rack up on our credit cards by saying we’ll pay it off later. Besides, we really only have to pay the minimum payment, right? And that’s a payment most of us can handle. But what most people don’t think about is just how much that gift is really costing them in the long run.

What is the Minimum Payment?

Each month, when you receive your statement in the mail, there are various numbers to look for. If you paid your previous month’s bill in full and there is no interest carried over, then your minimum payment will be $10. If there is interest carried over, your minimum payment will be the total calculated interest (your interest rate, multiplied by 365, divided by the number of days in the billed month) plus the $10. 

The Flat Screen TV Example

Take this situation, for example. I decide to buy my partner a flat screen TV for Christmas. I can justify my purchase because the TV is currently deeply discounted. If I buy it later, it will cost me an additional $150. I could put it on a credit card offered by the retail store, but their interest rate is 29.99% – a little too steep for me. So I put it on my regular credit card instead, thinking that I’ll pay it off over the course of a year. After all, my credit card’s interest rate is 19.99% – 10% lower than the retail store’s rate.

The TV, with taxes included, costs me $500. I pay for it and go home, impressed with my awesome find. At the end of the month, my statement arrives in the mail. Since there was no debt on my card beforehand, I am only expected to pay $10 by the given date, which I do.

The following month, the minimum payment is a little higher at $18.05. That’s like 5 fancy coffees at Starbucks. No big deal. I got this. I pay the $18.05, sit back and enjoy my TV. At $17.89, my bill in the following month is even less. Nice; I like this. I make the payment and wait for the bill to arrive in the following month.

Are you seeing what I’m seeing? If each month I only pay $10 plus the interest, I’m really not paying that debt off very quickly. In fact, at this rate it will take me 9 years to pay off the TV. On top of that, by the time it’s all said and done, I’ll have paid an additional $583 in interest, making the total cost of the TV $1,083. Not much of a savings, when you think about it.

Tips to Avoid Credit Card Debt

1. Put the cards away. Pay with cash so you can see just how much you’re spending. This also means that you’re only buying what you can really afford.
2. Curb your spending. Make a list. If it’s not on the list, don’t buy it. This should help you control impulse buying.
3. Think twice before you swipe. Do you really need that item, or do you just want it? Here’s what I do. If I see something I really want, I evaluate why I want it, then I walk away. If I’m still thinking about that item an hour later, then I can go back and look at it again. If I’ve forgotten about it, it likely wasn’t important. Nine times out of ten I completely forget about the item. 
4. Come up with a plan. Avoiding debt is so much easier with a plan. Make sure that everything you put on your card you can pay off in full by the end of the month.  If you wont be able to pay it off, and it’s a purchase you really need to make, consider using a line of credit, which will come with a much lower interest rate.
   

Cash may claim to be king, but the smart money is on using credit. As long as you don’t carry a balance, using credit cards for your purchases can entitle you to numerous benefits ranging from discounts, to free holidays and even cold hard cash.

Provided you pay your balance in full every month – thereby avoiding all interest payments – the interest rate charged is really a moot point. Instead, when shopping around for a card, focus on the tangible rewards.

Rewards few know about

I bet you didn’t know that the main provider of your plastic has their own rewards program.

That’s right, Visa, Mastercard and American Express all have their own incentives to entice you to use their product. Unfortunately, they’re not as well known as the standard cash back and reward options so users may be missing out.

Here’s a rundown of some of the perks you may be eligible for with three of the most popular credit card brands out there.

Visa

Regardless of the type of Visa card you hold, you’re eligible for a variety of deals for using it at select retailers. There’s a dedicated website, www.visaperks.ca, which lists discounts on dozens of items in 15 categories ranging from Books, Musics, and Movies to Women’s Fashions.

You can save up to 75 percent on magazine subscriptions, get 10 percent off of online purchases at New Balance, and you can even save on travel. (If I had known about this site a couple months ago, I would have saved $50 when we booked our family vacation at Flight Centre – rats!)

And if all that online shopping’s made you hungry, you can save $20 on an order of groceries from GroceryGateway.com, or take 25 percent off the bill when you order in from any of the hundreds of restaurants on JustEat.ca.

American Express

Like the others, American Express also offers a variety of cash-back, travel, and retailer-specific cards so you can reap the rewards that you most desire. But they also have a unique incentive that allows their customers to jump the queue.

Amex’s Front of the Line program offers cardholders a chance to purchase tickets to concerts or make reservations for events like Toronto’s twice annual Summerlicious and Winterlicious restaurant extravaganzas before the general public can.

Amex even buys blocks of tickets for popular shows so while others are frustrated trying to get through the TicketMaster lines, cardholders can get access to seats through a special subpage on the site: www.ticketmaster.ca/americanexpress.

Finally, if you travel a lot, you may find it’s worth splashing out $500 in annual fees for the company’s AeroplanPlus Platinum Card. Among the many incentives included are a dedicated express line when checking in at airport security and complimentary access to more than 500 VIP lounges at airports around the world once inside.

MasterCard

MasterCard has also mastered the art of specific retail partnerships. If you do a lot of driving – and fretting about the cost of gas – you might want to sign up for a Petro-Point MasterCard.

Shop at Shopper’s Drug Mart frequently? Then opt for the Shoppers Drug Mart MasterCard and earn Optimum points on every purchase.

And, like their bank accounts, PC Financial offers a no-fee MasterCard that also includes a chance to earn free groceries via their PC Points program. Sign up for this card like I did and, periodically, you’ll get a newsletter in the mail that includes coupons for bonus points for buying specific products, spending a set amount on a single visit, and even discounts on purchases using the card at other retailers like Chapters. (I recently combined this promo with my Chapters’ iRewards card to stock up and save 20 percent on books, magazines, and some gifts from their toy and houseware sections.)

Finally, to compete with the Amex Front of the Line program – and capitalize on its popular “priceless” advertising campaign – MasterCard has recently launched Priceless Cities, where cardholders can get discounts, freebies, and exclusive access to items – like Toronto Maple Leafs’ tickets.

Observing Financial Literacy Week is a great idea. But there are 51 other weeks in a year where you should also be concentrating on how to reduce costs, save money, and improve your investments for the future. Here are five areas to focus on.

1. Minimize your cost of borrowing

It’s almost criminal the interest rates some credit card issuers charge for outstanding balances. With the federal Bank of Canada holding its benchmark interest rate steady at 1 percent, it’s a wonder how they can justify charging 30 times that amount – or more.

But what’s really astounding is how many people pay that amount by carrying debt on their high-interest credit cards. You should always pay your credit card bills in full to avoid these charges. If money’s a little tight occasionally, use a low-interest line of credit to pay the bill(s) off, starting with the most expensive debt first.

If this becomes a recurring problem, consider setting up a meeting with a credit counselor. Then grab a pair of scissors and chop up those overcharging charge cards.

2. Reduce or eliminate punitive fees and charges

There are numerous reasons why you should always pay your bills on time, including preserving your credit rating and to avoid having debt collectors hounding you. But most importantly on a day-to-day basis is to avoid the penalties – often on top of interest – that utilities and other companies you receive regular bills from will charge. (As with credit cards, you should establish a line of credit to have funds available for those times when your money’s in short supply.)

And rather than squandering any of the minimal interest your bank account earns every month – and likely more – on various fees for withdrawal, ATM use, Interac usage, writing a cheque, and so forth, shop around for a no-fee account or one that offers a reasonable flat-rate that would cover your typical banking activities.

3. Invest for the future

Every year, as winter winds down towards spring, the ads for Registered Retirement Savings Plans (RRSPs) bloom. And with good reason. The financial institutions obviously want your business. But Canadians are keen to reap the tax-savings rewards of planning for their future: every dollar invested in an RSP is deducted from your annual income when calculating the income tax you owe (provided you don’t exceed your personal limit.)

But while RSPs are the most popular and well-known means of saving for the future, there are other options. A newer federal program is the Tax-Free Savings Account (TFSA). These operate similar to an RSP but, instead of upfront tax savings, any income they earn is tax-free.

Of course, both can be effected by volatile stock markets. For a truly balanced portfolio, you should also consider more stable investments like bonds and Guaranteed Investment Certificates (GICs).

Finally, if you have children, open a Registered Education Savings Plan (RESP) account to save for their post-secondary education and, regardless of income level, you could be eligible for up to $500 a year in grants. (Lower income families are also eligible for additional Canada Learning Bond grants.)

4. Track your expenses to develop – and follow – a workable budget

It’s impossible to save for the future without knowing how much of your income you’re actually spending. If you haven’t already done so, create a personal expense tracking plan. The more detailed the better. After just a few weeks – better yet, months – you’ll quickly see areas where you could realistically cut back on expenditures, and put that money into savings. While it can seem cumbersome initially, once you get in the habit – and reap the benefits of seeing your savings grow – it’ll become second nature.

5. Pay attention to the news

While you don’t need to comprehend all the details of the scrolling business ticker at the bottom of your favourite 24-hour news channel’s screen, or analyze the daily ups and downs of gold and the dollar, you should be conscious of how big-picture financial events can impact your finances.

A global decline in construction will ultimately lead to a decline in the value of those mineral and resource stocks you’ve invested heavily in. Closer to home, a major new development or infrastructure program can increase nearby property values. Good if you’re looking too sell; bad if it means your property taxes will go up.

And here’s a tip for anyone with a variable rate mortgage. That influential 1 percent Bank of Canada rate will inevitably go up, and the various institutions’ lending rates – including for variable mortgages – with it. If you’re a risk-averse person when it comes to investing, you should monitor those regular Bank of Canada announcements and have a plan for how high you’re willing to let it go before you lock in to a fixed-rate mortgage.

Years ago, I made a big holiday mistake. I bought a computer in November. What? Seemed like a good time to buy, as I needed it.

Then I got my credit card bill in December. Right around the time I was hitting the mall buying up gifts for my nieces and nephews and other family members, plus dropping insane amounts at the grocery store for holiday events and baking. I don’t buy a lot of booze, but at that time of year I find myself in the liquor store a whole lot more often than normal.

I was really scrambling that year. (I should note I’m a Mac girl and those computers were not cheap back then; still aren’t.)

Don’t be duh like me this year. It’s mid fall and the perfect time to start gearing up for those extra holiday expenses.

(Even if you don’t celebrate Christmas, you’ll be dropping  more coin in December. That’s because other religious holidays fall at this time of year too. Plus, office parties, extra gatherings, you name it, will call on your wallet.)

Save

If you have a savings account you rarely use (most of us do), set up a regular deposit into that account starting now to build up some money in time for your big holiday spends. Simpler still, put a jar at your back door and pop a $20 into it every time you go to the bank machine. Yes, it’s a bit late to sock away much this year, but do it to get into the habit for next year.

Put off purchases

The stores are full of yummy fall treats this time of year. Resist. If you see a sweater you like, send a photo of it to your partner and move on. You can’t escape certain basics this time of year (getting coats and boots for yourself and the clan, for instance), but avoid buying when there are other choices. Visit the library instead of buying a new book. Borrow a clothing item from a friend for the next party you attend. Take your boots in to get fixed instead of buying new ones. And please, don’t get a new fridge, car, computer, TV or anything else huge until that January credit card bill has long been paid off.

Start your list

If you know what key people on your shopping list will want this year, write it down and start hunting for deals. Keep on top of discounts at your favourite online retailers and browse sites like flyerland.ca for sales on toys, tools, clothes and electronics. Find some inexpensive wines with good reviews and stock up.

Talk to your pals

Make agreements well in advance of the holiday season to stop exchanging gifts with certain friends, family members and coworkers. Work with other parents at your child’s school to chip in for a larger gift for teachers, so you’re spending just $5 instead of $20 (and he gets something cool like a large gift certificate instead of a mug).

Make stuff

A day or two making cookies, candies, chocolates or jam could be spun out into numerous hostess or other small gifts through the holidays. A homemade card, if done with care, is better than a cheap gift for a coworker or neighbour.

Cheap out

Spend a little quality time in some low-quality stores and see what you can score. If you get your holiday cards at a dollar store, who will ever know? Find your wrapping papers and stocking stuffers at discount stores too.

Above all, think about your January self when you do your holiday errands this year. Make sure that credit card bill isn’t out of hand, that you don’t regret some of your extravagances this year so you can have a calm, peaceful 2012.