Savings Tips About Retirement from Grandma Opens Our Eyes : August Net Worth Update 2015 (+1.44%)

THERE WILL ALWAYS BE AN END   The last place the wife and I expected to discuss savings tips for retirement was in a retirement home with her grandmother by our side. The kicker is sometimes you don’t even have to say a word to understand what someone is trying to say or feeling. While visiting my wife’s grandmother after almost 13 years in a retirement home we learned that saving for retirement doesn’t necessarily mean you’ll be living the high-life. Our emotions and actions speak louder than words and in this case it was clear that grandmother’s past words were surfacing in my wife’s mind. Her grandmother has Alzheimer’s disease and although she does have days where she talks there are days she says nothing at all. She’s been heard saying she’s waiting to visit the marble stone. In other words, she’s waiting to die. Although it’s heartbreaking to hear she’s lived a long, long amazing life,nearing 100 now. She never went with-out but with that came hard work and plenty of financial planning. My wife and I said that we are either going to die before we make it into a retirement home or we will spend our […]

Why you shouldn’t feel guilty about saving money : July Net Worth Update 2015 (+2.29%)

MONEY ISN’T EVERYTHING   It has always been hard for us to say no to our friends and family when the money wasn’t in the budget to do certain things. Saving money certainly does come with its ups and downs. Whether it would be taking a weekend getaway with family or spending more at Christmas on gifts we always stood our ground. There have been times we felt guilty that we didn’t participate in certain activities but money doesn’t grow on trees. Sometimes I believe that feeling guilty about money started when I was a young boy. When I earned my allowance I wanted to spend it when I could in moderation. Anytime I did want to spend money my mother or father would guilt me into saving it,”One day you will understand son”. As a child you feel guilt but in reality my parents were only teaching me money lessons. I think over the years now that money has become a guilty pleasure of ours. We’ve since learned to embrace our finances because if saving money is on the menu that means dessert is just around the corner (goals). You can eat your dessert first (debt) but it may […]

How financial management led this man to pay off $20,000 of debt : June Net Worth Update 2015 (+0.22%)

YOU ALWAYS HAVE A CHOICE   When it comes to financial management of your money there is no excuse about not knowing why you are in debt, besides the obvious. Calculating personal net worth is a controversial topic in the personal finance world only because everyone calculates their worth a little different. Some people may add liquid assets such as “stuff” they have acquired over the years as well vehicles and their primary residence. Others may not.   Financial management starts now   Whether you hire someone to manage your finances or you do all the leg work and management yourself you know that this task never ends. Money will always be a mission on the monthly “To-Do List” no matter how rich or poor you are. It’s been years now that my wife and I have been calculating our estimated personal net worth but we never quite gave much thought to the motivational aspects of knowing “What am I worth?”. What I mean is how taking charge of our finances have influenced our mindset. Financial management of our assets and liabilities didn’t come into play until we bought our first house together after we were married BUT we could […]

Senior shares trick to save money for retirement in three words : April Net Worth Update 2015 (+1.14%)

EMOTIONAL CONNECTION TO MONEY   We all want to know money saving secrets and this past week I learned something from a witty senior that will help you save money, although it may not come as a huge surprise to you. Do you feel stress coming on when you have to dip into your savings? We do at times because we aren’t getting any younger and know that life as a senior citizen can be difficult especially if you don’t have the funds to back up the lifestyle you need or want to live. There are people who are happy living from the Canada Pension Plan which is by the way max $1065.00 (2015) a month at age 65 but will it really be enough? Jim Yih at Retire Happy says, “Don’t count on the maximum” either when he talks about how much CPP will pay us in retirement. You would think with $120,000 savings that we have in the bank that it would be easy to spend money but it’s not especially after you know it may decrease your overall net worth and set you back a bit from attaining your retirement goals. This is why we budget and […]

Why personal net worth numbers interest people : March 2015 Net Worth Update (+1.48%)

THE COST OF HAVING NET WORTH   Your personal net worth may be more important to other people than it is to yourself depending on who you are. In the CBB house we have tracked our net worth for a couple of years now and it’s more of an indication of our financial health. It helps us to answer questions that we have regarding the way we save and spend our money. Are we improving our personal wealth using the tools and knowledge that we have or do we need to follow a different path?  This is what runs through our minds when we pull the data every month to share it with all of you. So far, we’re happy about how far we’ve come although growing our savings and retirement fund will require dedication to our budgeting system and how we apply it to daily living.   Personal Net Worth Fuels the Fire   If your passion is personal finance knowing your numbers is critical to your success. Without knowing what your personal net worth is it’s hard to make financial decisions that may increase that number. You have to spend money or invest money to “make money” and […]

Building our dream house could mean another mortgage : February 2015 Net Worth Update (+1.99%)

WE DON’T ALWAYS GET WHAT WE WANT   The mortgage is gone, vanished, disappeared and you own your house but now you want something more. Do you stay put, sell or build your dream house? This is the burning question at the back of our minds lately. Let me explain more. When I bought my first home at 21 my dream house always included large rooms because space came and still does with a premium price-tag. If you’re like me you enjoy having space BUT not everyone NEEDS a large space to get on with daily living. Every day we read about people who live in a tiny house and find ways to make it work for them. This type of living is NOT for everyone. Your dream house compared to someone else’s idea of a cool house will ALWAYS be different because our needs are not the same. We tend to focus on things in life that will help us to meet or exceed our needs especially if settling is NOT an option. Dream house living for some people may simply be…living in any type of house rather than an apartment or vice-versa. You might be the person who […]

What would you do with $100,000 in savings? : January 2015 Net Worth Update (+2.53%)

SPEND MONEY TO MAKE MONEY   If you are new to Canadian Budget Binder welcome to our monthly Net Worth Update post. I’ve posted our losses and gains for the past 3 years and this is the start of year 4 for us. This year however will be much different for us as we have some decisions that we should make with the $100,000 in bank savings which we have accumulated. At first you might think that’s a large amount of extra cash to be kicking about but as you will see by the end of this post that number will dwindle down in size with our projected expenses. There’s not going to be as much as you think by the time I’m done chopping down the pile. It was never out intention to keep long-term savings in the bank of this amount but in talking with a banking representative it’s certainly not uncommon. What I mean is keeping more than $100k in one bank account which is not necessarily the smartest thing to do. If you think about it money has to sit somewhere until it is invested. Some people have no intentions of doing anything with their money […]