Statistics and Traps Every Investor Needs to Know

Statistics and Pitfalls for Investors   In the second part of this two-part post on independent investing, we will look at 3 critical investment statistics and the 3 biggest pitfalls to individual investing. If you haven’t had a chance to read it yet, jump back to post one to learn about what investing on your own can do for you. When selecting between the various investment options there are a few key metrics or statistics that are important to keep in mind. These form the foundation for any good comparison between investment assets. Personally, I like to use the filter tool available through my online trading platform to sort by the statistics below. Doing so helps me gauge what appropriate values are and to immediately weed out the less attractive options. Metric #1 – Expenses & the Expense Ratio (Mutual Funds and ETFs)   Possibly the most important investment metric or statistic is the expense ratio. Expenses directly eat into your return each and every year. The expense ratio is the easiest way to determine how much extra you are paying to own an investment.  Any mutual fund or ETF will have a specific expense ratio that shows how much […]

How sleep deprivation causes us to spend more money? : The Saturday Weekend Review #90

TIME TO GET SOME ZZZ’S   There’s only so much coffee and tea that I can drink to keep me going before sleep deprivation takes over. Sleep deprivation effects can be serious whether you are behind the wheel of your vehicle, at work or doing something that could potentially cause an accident and injure yourself or someone else. There is also something else that lack of sleep may compromise and that’s your budget if you allow it to.   Sleep patterns   Not sleeping enough may cause you and I to spend more money because when you are tired you just want to go to bed and sleep which means saving money might not be at the top of the priority list. These days daytime sleepiness has found a place in my life even though previous to my new sleeping routine I was used to working long hours with odd sleeping patterns. Whether you have trouble sleeping at night due to insomnia, late-night work hours, illness or like us have a newborn in the house being tired can take its toll on your budget. Our sleep patterns are now in sync with our newborns sleep patterns which means we sleep […]

Unexpected expenses and savings: Our Budget March 2014

SAVINGS ARE IMPORTANT   We’ve talked about having emergency savings and the budget over the years here at Canadian Budget Binder and for good reason. You need savings for unexpected expenses that pop up. Savings whether a small amount or a larger amount are important not only to keep stress levels down but also so you aren’t creating debt. Debt is created because one doesn’t have the cash to pay for a service or product that they need. Just this month as you will read down a bit further we have purchased a product for our home and required emergency services which were paid from our projected expenses account. The reality is that things happen whether it’s this year or the next and being prepared for expenses with some savings in the bank is much better than creating debt. Some people as I wrote about the other day don’t mind carrying debt as they see it as a number on a piece of paper and others like us despise it. I don’t mean mortgages, student loans and car payments because the majority of people do carry debt to pay off some of the largest debts most people will ever have. […]

The power of plastic points

If you’re like most people, you probably have a wallet full of colourful plastic cards that are taking up space and making it harder and harder for you to close the clasp! If you look through them, you’ll likely discover that while some of these cards are useful credit and debit cards than a few are loyalty cards you just never use. It’s understandable how anyone can end up with such a collection. Practically every retailer offers a loyalty point scheme. At the time, it can be hard to think of a good reason to refuse and with a little effort, the points we collect with plastic can be worth it … as the following tips show.   Be selective of points cards   Before saying yes to every loyalty point card which is put under your nose, think about how often you shop in a particular store. Is it really worth the effort of filling out the application form? Think about where you would shop regularly even if you weren’t part of a loyalty scheme. Once you’ve identified these stores then take advantage of the schemes that they offer. One of our favourite shops to use a rewards points […]