China criticizes US steel anti-dumping measures + MORE May 18th

You’re out for dinner with friends and learn one of your best friends Sally has been recently laid off. You feel for her and hope she’ll be okay financially, but you learn that Sally was savvy and secured herself with a rainy day fund she set up specifically for these types of situations.

You like to think you’re financially savvy too; you’ve got a strategy with your financial advisor, an investment portfolio, read all the latest financial blogs and after some pondering, you think it might be a good idea for you to create a rainy day fund yourself. But the question is, do you actually need one?

Many financial institutions, books, and blogs recommend setting up a rainy day fund in liquid cash of 3 to 6 months salary to help you during times when your regular income is disrupted or major emergencies. Situations such as sudden job loss or unexpected home repairs can hit hard if you’re unprepared.

But that’s a lot of change to have sitting in an account. For many Canadians, saving to your RRSP & TFSA is already hard enough, now you also need a cash savings account? While it’s possible, for most it’s not realistic…

In our April 2016 issue of MoneySense, we introduced you to Lindsay Tithecott, a 29-year-old who is trying to pay down debt, build up savings and buy a larger condo. Throughout the year we’ll be giving her a financial challenge every two weeks to help her get her finances in tip top shape. She’s already been challenged to cut her fitness expenses as well as to determine if she should prioritize debt-repayment over saving. Lindsay’s third challenge was all about condo-buying and the various aspects associated with that process.
Challenge No. 3 — An update

Over the last couple of weeks, Lindsay has done some legwork and gone to a competitor bank to find out how large of a mortgage she’d need to purchase a two-bedroom condo in Kamloops, B.C. She’s also learned about the costs of CMHC mortgage insurance as well as large a mortgage she’d be eligible for.
Lindsay talked about her experience in the video below and then we had experts give her some clarification and advice…

BEIJING, China – China has criticized Washington for imposing anti-dumping duties of more than 500 per cent on Chinese steel amid mounting tension over complaints Beijing is exporting at improperly low prices to clear a backlog at home.
The Commerce Ministry complained Wednesday that U.S. regulators hampered Chinese companies’ ability to defend themselves during an investigation and imposed excessively high penalties. The duties announced Tuesday total 522 per cent.
The European Union launched its own investigation of Chinese steel exports last week following protests by steelworkers.
The Chinese government is in the midst of a massive effort to shrink its bloated steel industry. The Cabinet approved measures in April to support steel exporters with tax rebates and bank loans.
The post China criticizes US steel anti-dumping measures appeared first on Canadian Business – Your Source For Business News.

Don’t get conned into buying more car than you can actually afford the next time you’re at your local auto dealership. Troubling findings from the Financial Consumer Agency of Canada show that a growing number of consumers are purchasing bigger vehicles with larger extended auto loans exceeding the standard five years.
This is concerning because monthly payments on longer loans for more expensive vehicles are often roughly the same as those on shorter loans for economy cars. And since most consumers break their auto loans during the fourth year, they’re more likely to refinance debt into their next auto loan—something known as long-term negative equity.
The example below shows how someone who bought a $35,000 car, financed with a 4% interest rate loan over five years, would start accumulating positive equity—in which the car’s value becomes greater than its loan balance—midway in the fourth year. Meanwhile, someone who bought the same vehicle with the same rate over eight years is still $9,000 underwater halfway through year four and won’t start acquiring positive equity until the end of the seventh year…

ATHENS, Greece – Greece’s government is to submit its latest austerity measures bill to Parliament within the day, with lawmakers to vote on the package of tax hikes and reforms Sunday night.
The move comes ahead of a meeting next week of eurozone finance ministers who will discuss Greece’s progress in reforms required under its third bailout.
The new bill to be submitted Wednesday is expected to include across-the-board tax hikes, including raising the rate of consumer tax by one percentage point to 24 per cent and increasing taxes on fuel, coffee, alcohol, tobacco and hotel stays.
However, the government said it wouldn’t include a contingency plan that would automatically trigger extra budget savings if Greece misses certain targets. The government said that would be submitted as an amendment later “for technical processing reasons.”
The post Greek government to submit new austerity bill to Parliament appeared first on Canadian Business – Your Source For Business News.