"Real Estate Bits - 2"

February 2005

Money Matters...

Presented By: Nino Pasquariello - Manager - Scotiabank

(416) 932-3034

E-Mail: nino.pasquariello@scotiabank.com

What's your Latte Factor?

Being creatures of habit, we all have our routines. Some of us like to start each day with a luxury coffee. Others grab a bottle of water, or pick up a magazine in the afternoon. Leaving the office to get a takeout lunch is a routine for many. It's pretty clear that most of us spend little amounts throughout the day without giving it much thought.

What if, instead, you were to take those five or six dollars and save for your future? You'd be surprised how quickly those amounts add up. In 25 years, you'd have almost $50,000 just in savings, and that's before interest.

Bestselling financial writer David Bach, author of numerous books including The Automatic Millionaire(tm)*, refers to this approach as the "Latte Factor." The idea here is not to deny ourselves things that bring us pleasure. Rather, it is to identify those expenses that may not actually add value to our lives, and then start putting that money aside for what is financially important to us - such as saving for a comfortable retirement.

Bach takes a common-sense approach to financial success. In his view, becoming rich is not about making a lot of money - quite often, as he points out, the more we make the more we spend. Nor is it about choosing the right investments, or even scaling back our larger purchases. What, then, is the key to financial success?

The trick to getting ahead financially, according to Bach, is watching the small stuff - those little spending habits that we'd probably be better off without. The sooner we can take that saved money and invest it in our futures, the better off we'll be financially.

If all this sounds too easy, that's the point. Bach believes that most of us already earn enough to start saving and investing -. that we are all, in fact, richer than we think. By taking care of the little things today, we won't have to worry about the bigger things tomorrow

Discovering your Latte Factor

So, how do we go about finding the money? As a start, track your expenses for a few days to get a better idea of where your money goes (but don't worry - this simple exercise is not about following or living within a budget). Then ask yourself if you really need to spend that much on coffee, bottled water, magazines, chocolate bars, parking, and the like - whatever your unique Latte Factor may be.

The next step is to start eliminating the inessentials - the things that you personally can live without - without denying yourself the things you enjoy. You probably have your own ideas on how to go about this, but here are a few to get you started.

· Coffee. Instead of buying that expensive morning coffee, have one at home before you leave.
· Bottled water. The filtered office water is a good switch.
· Afternoon candies/goodies. Why not bring them from home?
· Eating out at lunch. Resolve to brown bag it a few days a week.
· Daily newspaper. Try scanning the headlines online for what you're interested in.
· Cigarettes. For health reasons alone, it makes sense to stop, but at the very least cutting back will also save you money.

While you're at it, why not consider how you can find small savings on your larger regular expenditures? Reducing some of these may help you find even more money.

· Driving to work. Gas, maintenance, and parking can all add up. As a start, try public transit for a few days each week. At the same time, ask yourself if your family really needs that second car.
· Phone/cable/Internet access. Do you have different providers for each? Combining these services with one company might save you some cash.
· Cable, digital, or satellite television. Do you actually watch all those extra channels? Can you save by moving to a different package or bundle?
· Cell phone. Competition is fierce. Shop around for a plan that truly reflects your needs and your usage.
· Health club memberships. Do you make enough use of the gym to justify the costs?
· Banking. Maintaining a minimum monthly balance might allow you to save on service charges.

Next step - make it automatic So, you've discovered your own Latte Factor and found ways to cut back on those unnecessary expenses. What next? Again, it's nice and straightforward: Take the money you save and invest it. So, if you've decided that you can save $5 a day, commit to having that money ($150 a month) deducted automatically from your bank account and directed into the investment of your choice.

Making it automatic is one of Bach's principles of financial success. It recognizes that budgeting and following a financial plan are not things that most of us are inclined to do comfortably and on a consistent basis. That's why setting up a plan for the money you discovered through your Latte Factor - and making the plan automatic - is so important. After a while you won't even notice the changes in your spending habits, but you will notice that your savings are now working for you.

Tip: To get the maximum potential from your savings, direct the money into your registered Retirement Savings Plan (RSP). That way, it compounds in a tax-sheltered environment. For example, let's assume that you invest your $5 a day (that's $150 a month) at a modest 6% return. After 25 years, you'll have more than $100,000 - just by changing a few little spending habits. And as a bonus, you'll get a tax deduction for your RSP contribution.

It doesn't matter how large or small your income - by making use of the Latte Factor idea, you can start to build real wealth and freedom. Take a few moments today to get started. It could be one of the best financial moves you make.

Regards,

Nino.

"Tricks Of The Trade"

"Help - We Need More Room!"

"Canadian House and Home" recently listed these top ten home renovations compiled from an on-line survey they conducted. A solarium - landscaping - a fireplace - a hot tub - hardwood floors - a garage - another storey or extension - a pool - a family room - an ensuite bathroom."

There's no question that these renovations will add value to most homes, as well as being a welcome addition for the homeowners. However if you're at maximum capacity in your home now, a hot tub or new landscaping may not be your number one priority.

We Canadians are "renovation" crazed individuals and if you absolutely love your home and its location, and a move to a larger property is not in the cards right now, these ideas may help you to maximize the space in your current home:

• Enclose and winterize a front porch to add space to your main living area. This can also be a great place to add a small, convenient main floor powder room.
• Do the same thing with a back porch to add a breakfast nook to a small kitchen. If you can afford it - you may renovate your kitchen and add a family room if the lot allows such an addition. When you do the addition make sure the foudation is strong enough to carry the weight of a second floor addition if you decide, at a later date, to add a second storey to the addition on the main floor. Get a professional opinion here.
• Finish the basement. Before you dive into this project - decide if you're going to lower the floor or live with the existing basement height. It can be messy work, but if the current height is limiting, it can make an enormous difference to the outome, if you lower the floor. Get a professional opinion here too - don't invite some friends over with sledge hammers and the promsie of a pizza at the end of the afternoon. This is the foundation of your home - an important element of the structure of the house, so treat it with care.
• Finish the attic or third floor of your house. This area of your home can be a perfect space to make a family room/home theatre, master bedroom with ensuite, nanny suite, play room for the kiddies or a guest area when friends and family come to visit.
• Re-visit the current use of rooms in the house. Maybe your kids would enjoy sharing a room, thus freeing up a bedroom for another use. Bunk beds are a great way to make a smaller room more functional.
• Use built-in desks to free up space and add an armoire for extra storage in a bedroom or an upper or lower hallway.
• Add a winterized garden shed to your back yard to free up space in the basement. There are great designs available and you can make a shed an integral part of your landscaping.
• With any renovation project speak to 2 or 3 contractors for costs, ideas and opinions. Be sure you understand if a building permit is required. Have a signed contract with your tradespeople, check references and have a look at some of their completed projects before you sign on the dotted line.
• Then sit back and think about how your exciting renovations are going to improve your home!

Rosemary ...

Okay, Okay - Here's "The Joke"

A fireman was working on the engine outside the firehall when he noticed a little girl next door. She had a little red wagon with small ladders hanging off the sides and a garden hose coiled tightly in the middle. She was wearing a firefighter's helmet and the wagon was being pulled by her dog and cat. The fireman walked over to take a closer look. "That sure is a nice fire truck", he said with admiration. "Gee, thanks", said the little girl. The firefighter took a closer look and noticed that the little girl had tied her wagon to the dog's collar and the cat's testicles. "Little Partner", said the fireman, "I sure don't want to tell you how to run your rig, but if you were to tie that rope to the cat's collar, I think you'd be able to go faster". The little girl thought for a moment and then replied, "You're probably right, but then I wouldn't have a siren".

Guest Columnist

Tzabia Siegel

"The Food Coach"

WebSite: www.foodcoach.ca E-Mail: info@foodcoach.ca

(416) 826-6530

5 - Step Strategy For Losing Weight And Keeping It Off

(while gaining energy and peace of mind)

Do You Yearn:

• To lose 5 to 100 pounds or more.
• To be fit and healthy.
• To have an abundance of energy.
• For more peace of mind.
• For a deeper connection to your body.
• For greater self-respect.

• Tired of trying a variety of diets and/or supplements to lose weight - none of them providing sustainability.
• Not only wanting to lose weight, but committed to doing so.
• Ready to change your relationship with food and Self.
• Looking for expert guidance.
• Ready to be held accountable to your commitment to be your healthiest Self.

Please E-Mail or call me to have your questions answered or to set up a no-obligation and complimentary
40 minute personal coaching session (416) 826-6530.

Tzabia Siegel, BAPhEd, CHN

Regards,

Tzabia.

Ask An Expert?

These are just some of the professionals who can help you with your home ownership concerns. If you subsequently choose to establish a business relationship with any person/company then you should be sure to define the specific details of the relationship or business contract before you proceed.

• Ask A Lawyer?
• Ask A Painter?
• Ask A Surveyor?
• Ask A Designer?
• Ask An Accountant?
• Ask A Tradesperson?
• Ask A Home Inspector?
• Ask A Financial Adviser?
• Ask A Colour Specialist?
• Ask An Insurance Broker?
• Ask An Interior Decorator?
• Ask A Web-Site Designer?
• Ask A Kitchenware Retailer?
• Ask A Landscape Designer?
• Ask An Employment Lawyer?
• Ask A Banker/Mortgage Broker?
• Ask A Firecode/Retrofit Specialist?
• Ask A Garden Sculpture Specialist?
• Ask A Basement Waterproofing Specialist?

The above article(s) provide information that is of a general nature only and is never intended to be a substitute for advice specific to your particular concern. No one should act upon such information without appropriate advice and/or consultation.

Business Referrals:

Client & Networking referrals are the foundation of a successful real estate agent’s career.  Over many years in this industry I have enjoyed the confidence & repeat business of my clients.  I appreciate your on-going support and want you to know that I will always look after friends & colleagues you refer to me with professionalism, care and respect.

Please Call Me With Any Real Estate Questions.
I'm Always Here To Help!

Rosemary Wright

Sales Representative - Sutton Group-Bayview Realty Inc.

Bus: (416) 483-8000 Fax: (416) 463-0159

Web-Site: www.rosemarywright.com

E-mail: mail@rosemarywright.com

Direct Page: (416) 582-1216

This newsletter is never sent unsolicited. If you wish to be removed, please reply to this e-mail with the words: "Remove from Newsletter" in the subject line or call me at (416) 483-8000 to request removal.

The intent of the newsletters - "Real Estate Bits " & "Real Estate Bits -2" is to provide information to you regarding real estate. Personal details such as your name, contact information and address are never revealed to anyone without your consent. In accordance with the new Privacy Act, your consent must be given (either implicitly or explicitly) to receive these newsletters. If you do not want to receive my newsletters - please notify me. My newsletters are not intended to solicit Buyers or Sellers who are currently under contract with any Broker.

The information and opinions contained, statistics and articles are courtesy of TREB, CMHC or other individuals or companies and are believed to be reliable, but their accuracy is not guaranteed. Sutton Group-Bayview Realty Inc. and Rosemary Wright accept no responsibility whatsoever for any loss arising from any use or reliance on the accuracy and timeliness of the information contained herein. Every endeavour is made to ensure accuracy. These newsletters do not render financial, legal, accounting, home inspection or professional advice. They are for general educational purposes only. They do not offer do-it-yourself advice. We encourage you to always contact the appropriate professionals or specialists to address your individual needs.