Posts Tagged ‘Personal Finance’

There’s a fascinating link between psychology and money that tries to explain how we think and behave when it comes to saving, spending, and investing. It was Meir Statman’s book, What Investors Really Want, that first opened my eyes to behavioural biases and how to make smarter financial decisions. Later, it was Carl Richards’ The Behavior Gap that showed the…

One way to determine your financial creditworthiness is to know your credit score and how it is calculated. You can get free credit reports from Canadian credit reporting agencies such as Equifax and TransUnion once a year, but they do not include a credit score. Until recently, you either had to pay for this information…

Two decades ago, Thomas Stanley and William Danko set out to interview wealthy people for their best-selling book The Millionaire Next Door. They started out in the affluent neighbourhoods on streets dotted with extravagant homes with luxury vehicles parked out front and in-ground swimming pools in the backyards. They were shocked to find out that the…

It’s an age-old financial dilemma. Should you use your extra savings to pay down the mortgage or contribute to your RRSP? A simple answer is to compare the expected return from your investments to the interest rate on your mortgage. In today’s low rate environment, where mortgage rates sit well below 3 percent, many assume…

Someone who is just starting out in life, or a beginning budgeter, may wonder how they should be allocating their money. Here is a general rule of thumb to consider when budgeting. Where should my money be going? Begin by recording your net income and your expenses, and track your spending. Then divide your expenses…

Next to buying a house, raising children is a large ongoing expense for couples. Often both are experienced at the same time. If you’re renting a one-bedroom apartment, the upcoming birth of your child brings out the desire for a 3-bedroom house with a big yard. I understand that not everyone wants kids, of course,…

Charitable giving is often an important part of a sound financial plan. In fact, philanthropy is one of the top four characteristics of wealthy people (the others are – spending wisely, investing for the future, and having multiple streams of income). Many people have a cause they care deeply about – specific charities, research organizations,…

I was 19 years old when I first started investing. I diligently set aside money every paycheque, starting with $50 every two weeks and eventually increasing that to $200 per month, to save for retirement inside my RRSP. Sounds like I was off to a great start, right? Wrong! Even though my intentions were in the…

It can get expensive when you’re dating. Going out to a fancy restaurant, movie and overpriced bars for drinks afterwards can really do a number on your finances if you do it often. Do you: Really need to maintain an image of having plenty of money? Always dress to the nines on a date when…

I embraced the tax free savings account with open arms when it was first introduced back in 2009. I made the maximum $5,000 contribution in 2009 and again in 2010. My TFSA game was strong, indeed, as I invested those funds in Canadian dividend paying stocks and quickly turned $10,000 into $15,000. But then I…