Investing Returns Pave The Way To Financial Independence

INVESTING RETURNS 2

  KNOW WHAT YOU WANT NOW SO YOU CAN PLAN FOR THE FUTURE   Reaching financial independence, the point where your investments cover your lifestyle and then some, is the ultimate goal if you want to retire comfortably. And in a perfect world, you would like that to happen sooner rather than later. I have good news for you today: it is absolutely feasible if you put in the right amount of effort and dedication. Yes, even on a small budget. Take a look at the CBB household for instance. They’re worth over $800,000 and on track to pass the million dollar mark by this time next year. And as a faithful reader, you know Mr.CBB is just your regular guy, who started a bit above minimum wage 8 years ago. He has worked two jobs for years and carefully budgeting every cent to make sure his family is safe financially. Related: 5 Simple Rules We live By To Stay Debt Free There you have two of the three steps to financial independence: earning as much as you can, and spending as little as you can. The third part is where you can actually accelerate the process quite a bit: […]

Financing Your Kid’s Future With The Canada Child Benefit

financing your kids 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 […]

What to Expect With Little to No Retirement Savings : Our June 2016 Budget Report

What to expect with little to no Retirement Savings

UNDERSTANDING HOW RETIREMENT WILL AFFECT YOU NOW IS BETTER THAN FINDING OUT LATER WHEN TIME IS NOT ON YOUR SIDE.   If you’re tired hearing about how much money you should have in your retirement savings to live comfortable in the golden years and want to hide because you’re not part of this elite group of savers- you’re not alone. Company pensions, in particular defined pension plans are becoming a perk of the past and Canadians are left will few options when it comes to retiring without living the rest of their years poking through a tight budget. I’d love to retire early but since the birth of our son we’ve seen our life goals change significantly where we were content living mortgage free in our house and living happily ever after. Now we are talking about buying a bigger house to have more room for our son to run around along with an in-ground pool. That means we’ll need to save even more money if we hope to pay cash for the next house or face added debt of a mortgage loan once again. Related: Retiring Early Should Never Be Expected I received an email from a reader who […]

What Should Your Retirement Savings Plan Look Like? : March Net Worth Update 2016 (+2.27%)

Net Worth Update March 2016 CBB

WE WON’T KNOW THE FUTURE UNTIL WE GET THERE BUT WE CAN PLAN TODAY FOR TOMORROW, EVEN IF IT’S NOT GUARANTEED.   Our financial advisor told us once that our retirement savings plan was looking good for our ages even though we knew we had a long way to go before we’d feel any thrill of what is yet to come. It’s hard to get excited about financial freedom when you don’t really know what you will need. Most of my colleagues don’t often talk about retirement likely because we want to work and use our expertise as this is what we wanted to do with our lives. I remember when I was working in dead-end jobs or jobs I hated retirement sounded good every morning, before and after coffee. Retirement may not be a hot topic at work but I’m sure behind the scenes money is being saved for when the time comes to say hello to a new way of life.  I’m only a newbie on the block so I suspect some of the long-standing employees are making in excess of 6 figures a year and have a decent retirement savings plan. Even though a large income may […]

Let UFile Online Do The Hard Work at Income Tax Time (Review and Giveaway)

UFile Online Tax 2015

UFILE WITH A VIRTUAL ACCOUNTANT EXPERIENCE   As the first portion of the year starts we prepare ourselves to file our taxes for the previous year. I’m the guy who is in charge of filing our 2015 tax return for the family and this year I was lucky enough to review UFile Online. Today I’m going to share the results with all of you. With the income tax deadline of on or before April 30, 2016 (June 15, 2016 for self-employed) looming for taxpayers it’s time to finish up the 2015 year and file with Revenue Canada. Our 2015 income tax return has been completed and submitted. Now, we can relax and get on with life until next years tax season rolls around. I have learned a few things about filing an income tax return online this year with UFile and I hope you enjoy this review of what I consider to be one of the best tax return software for Canadians. When I came to Canada filing your taxes was all a little new for me since I had never filed taxes before. Filing your taxes for the year was unheard of as the tax system in the UK […]

This Simple Living Concept Allows Us To Save Thousands

simple living concept 2

MOTIVATE YOUR FINANCIAL VENTURES BY MOVING FORWARD   Simple living doesn’t mean that you can’t enjoy all the frosting that life has to offer in order to live a better today for an amazing tomorrow. You can! Just about everything we do today will in part affect the outcome of our financial future and some people worry about whether they have done enough to get them to the finish line. I’ve blogged for a few years now and ever since the beginning there has been one simple living concept that I have encompassed our entire financial path around because it works, a budget. The concept of budgeting for us revolves around this saying which I created years ago which is also pasted on our refrigerator door. It’s not about how much money you make it’s how you save it – Mr.CBB I received an email from a reader who is looking for some insight about investing and her financial future and motivation about not finding this blog earlier. Dear Mr. CBB, About 9 yrs ago I moved from Europe to Canada. It was always a big dream for me to live abroad and when I turned 30 I realized my […]

How Should We Budget $5000 of Discretionary Income?

HOW TO BUDGET DISCRETIONARY INCOME

PLAYING WITH SPARE CASH   Not many people can say they have extra discretionary income kicking about every month where they have to drum up ideas about how to spend it.  For those of you that do you can still manage that money with a budget if you want to stay on track with your financial goals. When Mrs. CBB and I paid off our mortgage in April 2014 it was a grand time for us. We managed to break down our mortgage into pieces and pay it off far sooner that we had ever dreamed of. The reason that happened was due to perseverance and a drive to be successful at whatever we did. I guess in a way we were pushing ourselves to earn more money but we knew in the back of our minds that it was all stepping-stones for our dream career roll. Now that our mortgage is paid we have lots of discretionary income which we just recently worked into our budget. Lots of people would be more than tempted to start spending money especially if they’ve hit it big time and the money is rolling in.   What is Discretionary income vs. Disposable Income? […]

How to get richer before you retire : The Saturday Weekend Review #109

The Saturday Weekend Review logo

RETIRE RICHER IF YOU CAN   No one wants to retire broke and if you don’t want to be that person there are things you can do to make you richer before retirement. How much do you need before you retire? Only you can answer that question because I don’t know what type of lifestyle you want to live or how much debt you will have etc. Talk to your financial advisor for clarification if you have one or make the call yourself.   It’s Your Money   It’s nobody’s business what you do with your money but your own. No one can tell you how to spend it, save it or invest it but you. Believe me when I say some people always stick their nose into the finances of everyone else but their own. I’ve always said that no one will care more about your retirement but yourself. If you believe that then you have already invested time into finding ways to make sure your retirement days are comfortably padded with enough cash to fund what you want and need to do. You earn the money, you do what you want with it. BUT…there will always be someone […]

When are you too old for Christmas gifts? : The Saturday Weekend Review #95

Christmas gifts

MAKING A CHRISTMAS LIST   I know it’s only one day after Halloween and I’m already talking about Christmas gifts and the upcoming holiday season but it’s for good reason. I was sitting at my computer the other day when my wife said that her sister emailed her to say she was putting together the annual Christmas exchange for the family. Now we budget our Christmas expenses each month as a projected expense so when it comes time to go out and buy Christmas gifts we have the money saved. Brilliant, I know but not everyone can do this. Christmas is one of the most expensive holidays of the year for most families especially those with children. What happens though when grandchildren come along? Should you really be buying gifts and having a gift exchange to the tune of $100-$150 per person when you are an adult? So many questions but something my wife and I talked about the other day. Now, don’t get me wrong we are not by any means saying we don’t want to participate in buying Christmas gifts but we question whether it’s worth the high price tag.   Christmas gifts with meaning   Here’s my […]

Saving for retirement on a lower-income

saving for retirement lower-income

EVERY DOLLAR COUNTS   Let’s face it, saving for retirement is tough work. I mean, the concept is not difficult for us to wrap our heads around but finding the money, putting it away consistently and not spending it is challenging stuff. I suspect this is the case because money is an emotional subject and it’s easy to become attached to it; we work hard for it and want to reward ourselves with it. Saving for retirement takes discipline. When you’re not relying on paycheque to paycheque for living expenses, saving some money should be easy enough. You also have options on where to put your money for retirement, into Registered Retirement Savings Plans (RRSPs), real estate properties, Tax-Free Savings Accounts (TFSAs), non-registered brokerage accounts and more. High-income earners are often advised to contribute to their RRSPs in their highest-income earning years, and rightly so. This RRSP account is optimized when you contribute money when your income taxes are the highest, so monies can be withdrawn in the future when you’re in the lowest (or lower) income tax bracket, presumably in retirement. Low-income earners probably shouldn’t follow this advice, and they probably need different financial advice altogether. Today’s post will […]

Reader Question:Do I Have To Share My RRSP With My Spouse When I Get Divorced?

Another reader of the Canadian Budget Binder blog asked the question, “Do I have to Share my RRSP with my Spouse When I get Divorced”? In Ontario there is the Family Law Act. In simple terms all property acquired after the date of marriage, up until the time of marriage breakdown is deemed to be the property of both parties. The ownership of the property is not a factor. So in short each person is entitled to 50% of the total family property. There are certain exceptions like the family home that was brought into the relationship or received as a gift or inheritance. However to keep things simple we will ignore this. RRSP’s, Stocks, Bonds, Pensions, are all subject to being included under Family Law. So if one spouse had a significant RRSP and the other nothing then the spouse with nothing would be entitled to 50% of the spouse’s RRSP. Note: the courts adjust the value of the RRSP down, by the amount of withholding tax that would be payable if the RRSP were cashed in. So the figure used is less than fair market value of the RRSP. To understand this fully the courts ask each person […]