Q: Should we find an accountant or just do our own accounting?

It depends. If you have a passion for numbers and know all the tax rules and how to file, go for it. But if you’re like most people I know, spending time on accounting isn’t high on your priority list. A good accountant can save you money and offset the cost of the fee they charge. Look for one the same way you would a financial advisor: Ask friends or colleagues for recommendations. Then comparison shop. I switched from a big-name, high-tower firm to a neighbourhood accountant and saved a lot in fees.

Q: How do we keep track of everything that’s coming in and going out?

Start by making a list of all your fixed monthly expenses (rent/mortgage, transportation, utility and cable bills, etc.). This will give you a clear picture of how much, or how little, you have leftover for other expenses. Next, jot down every daily expense for a week. Then add up those expenses and multiply by four. This will give you a good idea of how much you blow in a month. Oh, and if you think you’d prefer to use software tools, the big-box office stores sell a variety of packages that can do everything from tracking expenses to crunching income tax.

Q: What are the pros of starting an RRSP?

An RRSP (registered retirement savings plan) offers investors two advantages: 1) Money put into an RRSP reduces your income taxes. 2) It’s a tax-free way to save money for your future. The earlier you start, the better. Based on an interest calculator from a local bank, just $50 set aside each month grows to $48,739 over 30 years (calculated at a 6 percent interest rate). You can set up an RRSP at a financial institution and make automatic monthly or lump sum payments. There are all sorts of investment options with RRSPs. You can make cash deposits or invest in stocks, bonds or mutual funds. Talk with a financial advisor or bank rep to see what they offer.