Financing Your Kid’s Future With The Canada Child Benefit

Here’s Hoping The New Canada Child Benefit Will Be A Boost For RESP’s   Paying for your kid’s post-secondary education is going to be expensive.  Like.  Really, really expensive. I have a 6-year-old so I think about this a lot. Tuition and books will run you about $7,000 today. But when you add some more on to account for the requisite buses and beers, that number jumps to at least $10,000 – and that’s if they live at home with you. Tack on a modest 3% inflation rate to that, to project 15 years out, and you’re looking at $16,000 a year, for probably four years.  That’s a total of $64,000. Breathe. Just breathe. The $64,000 question:  Is the Canada Child Benefit part of the answer? This is, quite literally, the $64,000 question. And it is better to ask it – and ideally answer it – as soon as possible to give you as much time as possible to save. Perhaps the new Canada Child Benefit will help. The Canada Child Benefit, or CCB, is a new program aimed at helping families with the cost of raising children today and into the future. The cheques (or direct deposits) arrived in […]

Man uses hourly wage to spend less and save $5000

SAVE $ THE WAY THAT WORKS FOR YOU   Should you use your hourly wage as the deal breaker for potential purchases? Every so often I meet people who have something to say about finance and it just so happens that I find these people like magnets. First thing to remember is that what you earn is not what you net. In other words if you make minimum wage you aren’t taking home $11/hr after various taxes. Same goes to those who earn a salary, you’re in the same boat. This is common knowledge though right? If so why are so many people in debt? Whatever you net is the money you get to play with in your budget. It’s amazing how many people forget about using the concept “Spend less than you earn” even though it’s fairly straight-forward.   Mr.CD meets Mr.CBB   While we were doing some shopping in Burlington last week I was feathering through the CD’s which were on sale for 50% off. It was an amazing deal for new release CD’s and other CD’s that I normally wouldn’t pay full-price for. It was pretty busy so space was limited and we were all elbow to […]

Finances are like moon phases: February 2014 Net Worth update (+1.25%)

WATCHING INVESTMENTS GROW   Like moon phases, our finances including Net Worth is constantly changing and this month is no different. There will always be ebb and flow in everyone’s finances, sometimes purely by the choices we’ve made. In the CBB household we didn’t have an awful lot left over as spare cash from last month as we had city taxes and pet costs leave the bank. However, there was positive news on the finance front in the form of yet another increase in the exchange rate due to the falling dollar. This increase has led to our UK funds exceeding the total of what is left to pay on the mortgage and with quite a chunk of money left over.   Moon phases   We are definitely moving into our Waxing Gibbous phase where our finances and what we have set up are starting to fall into place. The Full Moon phase will be when our mortgage is paid off and we can move on knowing that fact that we will be carrying zero debt. In the very near future we have to decide what we will be doing with the spare cash that is left over once the […]

Time to get serious with numbers: Our budget Feb 2014

CRACKDOWN HAPPENS NOW   The numbers in this months budget update were a bit scary for us as we just made it with a bit left for our savings account. It truly is more about how much you spend when it comes to the final numbers. Although we earned a bit more this month with my new job the money went just as fast. We did have to pay property taxes which took just over $900 but that money came from the projected expenses account. When that big bill comes due we’re happy the money is ready and waiting. For others they would rather not deal with any more numbers than they have to so a portion of their city tax bill comes off their mortgage payments each time they are paid. That seems simple enough although I’d rather keep our money in the bank to earn some interest rather than it sitting in someone else’s bank account doing the exact same thing. Do you pay your own city taxes or do you have a portion paid each time you pay the mortgage?   Where the money went   This month was a particularly busy month for our budget and […]

Dating, career, life and true love: The bundle exposed

By: Katrina Dealing With What Life Hands You We all want our dreams to be bundled up into some sort of fairy tale of a life but who are we kidding, no one has the perfect relationship, career, family all bundled into one. I always dreamed of one day having the perfect family, a couple of kids and a hardworking husband whose family meant the world to him. While we all know life doesn’t always go as we hope it will and it’s without a doubt that we must deal with road bumps along the way. Divorce is an emotionally and mentally draining experience and if you’ve been through it once it’s not likely something you want to experience again. Healing and picking yourself up from the emotional roller coaster of a divorce takes time and when kids are involved it can be even harder to see the light at the end of the tunnel. Dating I’m sure others will agree that being a single mom or a single dad makes dating interesting and harder to do especially when you work full-time and are sleep deprived. Going on that first date after divorce is not always easy because there is […]

Financial Independence may only exist once we get there

A World Where Anything Is Possible I won’t lie and say that I have never thought about what financial independence in my life would be like, because I have. Not everyone allows their mind to wander into the future or an imaginary place where dreams can come true, or at least if for only that moment they are. It takes us to a happy place where our world is a capsule in time that we create and where we feel safe, cared for, loved and at peace with the world. Come dream with me Lay down in a comfortable quiet space, draw the blinds, close your eyes and come dream with me for a moment. Follow me gently to another place where I can script the next chapters of  my life, in my mind. There are times when I’ve spent the winnings of a Lotto Max lottery that I fictitiously won in my head because it seemed more visual than it ever would be. A dreamer I am, that is me, yes, especially with the odds of winning with my eyes open, back on planet earth. As I silently engage your thoughts with mine and walk you through my journey […]

A Beginners Guide to Early Retirement

Early retirement is simply the process of retiring before the standard retirement age and often refers to retirements that start decades before the typical age. An early retirement aims to provide the maximum free time during our best years of life. After all, what is the point of saving bucket-loads of money for retirement only to be too old and frail to use it properly? My aim in life is to rapidly save enough money to allow me to permanently retire from paid employment. This is not to say that I won’t continue to work after I reach the point of financial independence, just that I won’t have to. The process for doing this is to drastically reduce expenditure so that you can save a large percentage of your salary (50% or more) for your early retirement. The very basic steps are: Live on 25% of your salary Invest the 75% Reach the point at which passive investment income exceeds expenses and Retire early! They are the steps and they are easy to articulate and difficult to argue with, but incredibly challenging to implement well. Let’s start with common objections at this stage: I can’t live on 25% of my wage! […]