Canadian Personal Finance Blog

The Royal Bank published a report effectively saying, “Relax, it’s only a bump in the economy“, with a forecast that things economically will not be as bad as first predicted.

The full economic report by Craig Wright the Head Economist at RBC is actually a nice read, with a province by province break down of what the predictions for the coming few months might be.

Being a bit of an inflation zealot I did think the following paragraph is quite interesting:

The RBC report forecasts that Canada’s core inflation rate will likely trend higher this year though remain below the Bank of Canada’s two per cent target. Mitigating factors that have pushed the inflation rate lower, such as the impact of the rising Canadian dollar in 2007 and the retail discounting that Canadian companies have had to offer to compete for market share, will start to dissipate through 2008. By 2009, RBC expects the inflation rate to average close to the two per cent range.

This seems to imply that the rise in Gasoline price will either have subsided or have been absorbed into the economy (or maybe it might drop?). Interesting prediction, I don’t agree with it, I think it is an overly optimistic view.

For Ontario, a little more gloomy:

Ontario is labouring through its softest patch since the early-1990s recession.The provincial economy likely contracted in the first quarter and should
recover only gradually through the remainder of the year.

I think I agree with that sentiment as well.

It’s always important to read these kind of reports to understand the Macro Economy around you, even when you are someone like me who looks closer at the Micro-Economic conditions.

Happy 4th of July

To our American cousins and neighbours we wish a happy 4th of July, and hope you enjoy blowing things up and the Boston Pops.

According to the Fraser Institute Tax Freedom Day for 2008 was Saturday June 14th. This alleged end of you earning money for taxes means you have the rest of the year to pay for all your other expenses. Speaking as a highly taxed individual (no matter how much I bitch about over spending in my household Taxes by far out strip all other spending we do).

The institute even has a fun little tool to figure out when your specific Tax Freedom Day which was kind of cool to play around with as well.

This artificial celebration really means very little, except that most Canadians pay over 50% of their income in various taxes (if you simply count the number of days until this happy day). How can things change? Less Government spending might help, smarter spending might be nice too (get more from all the money I give you). Given I haven’t had a raise in 5 years, it would be nice if the government was forced to do the same rethinking on spending that my household has had to do (I mean government in the Generic across the board sense, not just the Federal or Provincial folks).

Enjoy earning money for yourself now (figuratively, if not factually).

Mortgage Rates on the Rise?

Thanks to last week’s non-cut by the Bank of Canada most of the major banks are raising their Mortgage rates in reaction.  Any debt vehicle that has a variable rate hasn’t changed that I can tell, but the banks seem to think rates will be going back up very soon, and they are reacting accordingly.  TD Canada Trust’s rates can be found here, Scotiabank’s can be found here, but remember all these rates can be negotiated, and if you don’t want to do that, go to a Mortgage Broker and get a better rate there.

Funny no one has lowered the Credit Card rates lately (sorry had to have a jab at one of my favorite topics).

For me, not much really. The official news release about the budget can be found here. The only highlights that affect me indirectly and directly are:

• $1.5 billion, three-year Skills to Jobs Action Plan, which really doesn’t touch me directly, unless of course I get laid off and want to learn a real trade, then it might.
• Lots of spending in the health area, which should touch me in some fashion ($40.4 Billion)
• $18.8Billion in Education grants for class size, since my kids are still in school that is a nice addition.
• “…$385 million over three years for an annual Textbook and Technology Grant that will help every full-time university and college student…”, that would help out because text books cost a BLOODY fortune.
• And there are no tax increases, which is good too, since I don’t like tax increases no matter what, I am funny that way.

Kind of ho-hum budget, some perks for businesses, but nothing much for me, but some useful infrastructure spending (mostly in Toronto) too.

Best of: Library our Frugal Friend

One of the best places to get any financial information is your local public library and I just remembered a post I did a while back about The Library Our Frugal Friend.

Given I am an unpublished author (well not really an author, but a writer), here is a great tip for you folks who want to READ and LEARN about Financial things:

GO TO YOUR LIBRARY!

Pretty simple. Here in Ottawa the one thing that amalgamation did do is create a large very well stocked Library (click on Go To Your Library to see their web site).

I take out Music CD’s, DVD’s, VHS Videos, and most importantly books. Pretty much any and all books I might mention here in this blog, I have taken out of the library (I can’t afford to BUY books, but I can afford to take them out, read them, and maybe jot down in a notebook the parts which I agree with, or think are a good idea).

Usually your local library membership is FREE (in Ottawa it is), and most are relatively cheap, and you get your money’s worth very quickly. In fact DONATE to your library to keep them up and running (heck, even Volunteer, they are usually looking for those too). Libraries are great resources for the CHEAP and FRUGAL!

Let me leave you with a Simpson point of view on the Library:

Homer: Now, who’s up for a trip to the library tomorrow? Notice I no longer say liberrie or tomorrie.