Category

Investing

Category

One of the most important things to understand about personal finance is the impact of interest rates. It plays a role in how quickly you can pay off debt but also on how fast your money will grow. If you’ve ever carried high-interest credit card debt, then you’ll know how punitive it is. And on the flip side, if you’ve ever left a sizable chunk of money in your chequing account, you’ll know that it will earn you pennies. Tracking and understanding the interest rates you are paying or earning can make a noticeable difference whether you are paying off debt or trying to grow your money. Interest Rates on Debt Unless you’ve received an interest-free loan from your very wonderful family, debt is not free. Sure you get access to money you might need, but it’s going to come at a cost. And depending on the type of debt…

Have you ever sat through a family dinner and had to listen to your parents curse the stock market? Mmhmm, me too. If they are anything like my parents, you won’t hear about how the markets are responsible for their comfortable retirement, but you will hear about how the markets are going to put them in the poor house. Flair for the dramatic? Maybe. But they aren’t entirely wrong. Down markets aren’t great for people who are nearing or in retirement because they don’t have time to recover. However, that’s not me. And I’m guessing it’s not you either. Investment advice for millennials is different. We still have time on our side, and that means down markets are actually a good thing! Don’t Believe Me, Here’s the Math! Let’s break it down by the numbers so you can see what I’m talking. Here’s the scene: we have two hypothetical 30-year-olds…

If you are new to the personal finance universe, there are a few things you will learn. First, it’s basically the same as the Marvel Universe. There’s a lot of infighting and family drama, but at the end of the day, we all just want to save the world. Totally the same thing. The second thing as that we are mildly obsessed with phrases like net worth and cash flow. So what do those mean? Why are they important? And why are PF bloggers so hooked on tracking them? Net Worth vs Cash Flow: The Official Definitions To understand why they’re both important, you first need to understand what they are. Both are metrics for measuring your money, but they are for very different things. Net worth is the number you come up with when you add together all your assets and subtract all your liabilities. It gives you an…

I’m an avid reader. I read every night before bed and listen to audiobooks when I walk to work, talk the dog out or clean the house, and there’s not much better than curling up with a good book on a Sunday afternoon. I’ll read just about anything (except fantasy, not my thing) but I have a particular interest in keeping up to date with books on money; especially Canadian personal finance books. I love finding something that tackles the topic of money in a fresh way and isn’t just a regurgitation of the same old advice. The one problem I have with books on money is that they are so often focused on the US. I get it. It’s a way bigger market. But it also means us Canadians can have a hard time seeking out books that don’t talk about 401k’s. Sure, most of the advice can cross…

If you’re still procrastinating about making an RRSP contribution for the 2018 tax year, then it’s time to get moving. The deadline is this Friday, March 1st. It’s a weird rule that’s only applicable for RRSP’s. Instead of running by the calendar year, you always have the first 60 days of the following year to make your contribution count. And trust me when I tell you that if you’ve been procrastinating, you are not alone. Now you know when you need to make your contribution, but do you know if an RRSP is the best option for you this year? The RRSP Advantage Ask just about anyone the biggest advantage of an RRSP contribution, and they’ll likely say the tax refund. And yes, that’s a nice perk, but it’s not the number one reason you should be using your RRSP. You don’t pay tax when putting money in (hence the…

Investing is not my favourite topic, you guys know that. However, I’m a money blogger and investing is a vital part of managing your finances. The last couple of months have been loony-tunes when it comes to the stock market. December sucked, January didn’t. And that’s precisely why I had an itch to talk about investing now. Investing risk and market volatility are one of the main reasons I hear for people not investing their money. I get it, watching the value of your portfolio take a nose dive is terrible. Saving vs Investing Saving money is great. In fact, it’s more than that; it’s essential. But saving money is not investing. Saving money is the act of setting money aside for the future. Investing is attempting to grow that money, so you have to save less of it in the long term. Saving a million bucks is very cool,…

I always find this time of year tough to talk about money. Many of us (me included) are caught up with seeking out deals and buying gifts, and the last thing we want to consider is how to better our finances. December can be a hard month on anyone’s wallet. It’s for sure one of our spendiest months of the year. This year is a travel year for us, so that’s an extra $1,000 in the holiday budget for flights. Add on presents, Christmas parties, and other events; we’re looking at almost $2,000 of expenses this month. Yikes. I love Christmas, but not that price tag! And I know we’re all caught up in the Christmas spirit, but it’s important not to let the year end slip away without doing a quick check-in with your finances. Here are a few tasks to add to your to-do list that will set…

Sometimes I wonder how it’s possible I ended up blogging about personal finance. There is so much of it I find incredibly boring! I don’t like math, I like the results of investing but the process is a drag, and I would way rather spend money now than save it for later. Stick with me though…I don’t think it’s a bad thing. In fact, I think it’s relatable. I might be in the minority when it comes to personal finance bloggers, but outside of our community, there are a lot of people who lack an interest in money. They have more exciting things to worry about than budgeting and investing. And that’s ok, but lack of interest is not a good excuse for not having your shit together. There are plenty of shortcuts you can take to make the money part run smoothly while you live your life. For me,…

There’s no quick win when it comes to getting rich. And don’t even come at me with that ‘but you could win the lottery’ BS! It takes time to pay off debt, create good budgeting habits, and build your investment portfolio. That’s just life, but it doesn’t exactly encourage good behaviour. Spending money gives you instant gratification. You see people around you doing things you want to be doing (hello imposter syndrome!), and it’s hard to feel like you’re missing out. Saving money doesn’t give you that same instant boost. Sure, it will be great when you’re retired, but that’s SO FAR AWAY. The hardest part of your journey towards financial independence will always be the beginning. You’re motivated and ready to jump in with both feet, but you probably don’t have the high income or the pre-existing investment base to fuel instant returns. It’s slow, and that motivation can…

Saving money is a big deal. It sets you up for success and can build confidence in all aspects of your life. But how do you know where to start? Are you supposed to be using a bank account or are there better options available? In Canada, we have RRSP’s and TFSA’s that each have unique advantages for saving and building your wealth. RRSP’s are designed for long-term retirement savings. Contributions are subtracted from your income and can give you a tax refund. Then your money grows tax-free until you start withdrawing it in retirement. TFSA’s give you a lot more flexibility and can be used for a variety of savings goals. You don’t get the tax refund, but you do get the tax-free growth with none of the withdrawal penalties. Today we’re going to focus on TFSA’s and how to ensure you are choosing the TFSA investment options that give you the…