Q: After we’ve made all our credit card payments at the end of the month, we have nothing left. Any suggestions for saving some dough?

A few years ago, my husband and I added up the amount racked up on our eight credit cards and quickly figured out why those payments chewed up any extra cash. We took a hard look at our income and expenses and made several adjustments. To hold on to some cash, I recommend the following: (1) Meet with a loans officer at a bank and consolidate all of your debts into one monthly payment plan. The interest saved on double-digit credit charges will offset the bank fee by hundreds of dollars. (2) Keep only one low-interest-rate credit card for each of you. (3) Get into the habit of using cash or debit for any gas, clothing, gifts or impulse buys. Use your credit card for emergencies only, not for everyday spending!

Q: Any safe guideline for spreading investments among cash, stocks and bonds?

Historically, stocks (a.k.a. “equity investments”) outperform over the long haul. The younger you are, the better position you’ll be in when it comes to reaping the rewards of equities. But you need thick skin for stock investments because they’re more volatile than cash and bonds. Reduce risk by sticking to companies with a good track record. A balanced investment mix for young investors might consist of 50 percent bonds, 30 percent Canadian stocks and 20 percent U.S. or international stocks. Short-term money market investments, such as treasury bills (T-bills) or bank guaranteed investment certificates (GICs), fall under the safe haven of cash.

Q: How much do we need for a down payment on a home?

According to Maria Racanelli, vice-president of personal banking at BMO Bank of Montreal, a down payment can be as low as 5 percent. Mortgage Rule of Thumb: Before you buy a home,
speak to a mortgage specialist. After all, a house is the biggest investment you’ll ever make. As a general benchmark, Racanelli says no more than 32 percent of a couple’s gross monthly income should be spent on housing costs, including mortgage payments, property taxes and, in the case of condos, maintenance fees.

Q: We want to go on a great vacation. What’s the best way to save up for it?

• Open a separate savings account for vacation money only; add to it every month.
• Pack loonies and toonies away in a “holiday” piggy bank. It adds up quickly!
• Cut down on cash-sucking habits (e.g. make your lunch instead of buying it; rent a video instead of going to the movie theatre).