Mostly speaking to people that live on the line of being overdrawn, which inevitably leads to being overdrawn/paying interest instead of waiting/building up a cushion of money which some people just can't do, the ex wife was great at keeping us in the red or as close as possible until very shortly after she was gone and I was literaly awash in money … no problem!
How much do you know about financial independence?
Got some ticker symbols to look at? I like yield and I have dry powder that's been waiting for a pullback…
rei.un
riocan is historically pretty cheap right now. 5.5% yield with pretty good upside too.
Why do you need a book keeper to check if you cheat? Willpower?
Bookeeper is for the wife's business, but she keeps an eye on the finances. Rule is no plastic except for emergencies. I guess the idea that someone is watching the books means going of the reservation means having to answer questions. You probably know that if you are married, it takes good financial habits from both to live within your means. I know couples where one of them has put the whole family in massive debt from their habits. It takes everyone to get onside (including kids - its part of your parental responsibilities to teach them that).
Minimum monthly balance - get it and maintain it (if you are in a bank with fees).
You should have an emergency fund anyways.
The way mine works, I now save $11.50 a month on bank fees and a further $150 on my MasterCard each year (I get a hella good kickback on points now).
This equates to +/- 6% return annually (counting the fees saved and minimal interest earned - doesn't count the value of the points I get on my card).
What bank is that? When I last looked at CIBC the return of having the minimum deposit was under 1%. I think it usually makes sense to just have an LOC for emergencies as there is no maintenance cost. As long as you are disciplined to not use it unless needed.
My problem is our banking is spread out, I use CIBC, wife is at Scotiabank and we use an RBC Avion for points. I'm going to shop all our banking around (and hopefully get a sweet deal from RBC) once the wife is done school and we need to convert the LOC to a term loan.
$3500 stagnant in a chequing account saves me $14.95/month banking fees at BMO. Thats 5.1% I'm saving annually.
Yeah, yeah, I know there are free banks available.
Rule is no plastic except for emergencies.
Not always the best strategy. If you have a low- or no-fee card with points or cashback, then maximize purchases on the card. Pay everything you can with the card to accumulate points/$$.
The trick is to never carry a month-to-month balance (thus avoiding the rapacious interest fees) and use the card only for planned purchases, ie., things you would have bought anyway without the card. Your expenses don't increase, but you get the points. You can even use credit card at most supermarkets now, so a normal grocery trip becomes points in the bank.
Business expenses are especially great … no cost to you, but often the purchases are large. I've averaged over $2k per month this year on business travel … all paid back to me as chargeable expenses, but I get the perks from the CC as well.
When one person suffers from a delusion, it is called insanity.
When many people suffer from a delusion, it is called religion.
only time I don't use the card is if the vendor offers a lower price for cash or if they just don't take credit cards at all.
Plastic is just another way to spend your money while some people think of it as more money and those people should never use plastic the banks make lots of money off of these people
you can set it up so your card balance gets paid automagicaly so you never have to think about it
I married 2 women who spent every penny I made and then some
What bank is that? When I last looked at CIBC the return of having the minimum deposit was under 1%. I think it usually makes sense to just have an LOC for emergencies as there is no maintenance cost. As long as you are disciplined to not use it unless needed.
My problem is our banking is spread out, I use CIBC, wife is at Scotiabank and we use an RBC Avion for points. I'm going to shop all our banking around (and hopefully get a sweet deal from RBC) once the wife is done school and we need to convert the LOC to a term loan.
BMO. I have a black (coloured) air miles Mastercard. I use it for 90% of all purchases. I'm rolling in air miles and use them for 2 to 3 flights within Canada every year.
Not always the best strategy. If you have a low- or no-fee card with points or cashback, then maximize purchases on the card. Pay everything you can with the card to accumulate points/$$.
The trick is to never carry a month-to-month balance (thus avoiding the rapacious interest fees) and use the card only for planned purchases, ie., things you would have bought anyway without the card. Your expenses don't increase, but you get the points. You can even use credit card at most supermarkets now, so a normal grocery trip becomes points in the bank.
Business expenses are especially great … no cost to you, but often the purchases are large. I've averaged over $2k per month this year on business travel … all paid back to me as chargeable expenses, but I get the perks from the CC as well.
DING DING DING! We have a winner!
I'm about do a major house reno. It will net me 10,000 airmiles.
http://www.moneysense.ca/debt/credit-cards/best-cash-back-credit-cards-of-2015/
http://www.moneysense.ca/debt/credit-cards/canadas-best-credit-cards-of-2015/
When one person suffers from a delusion, it is called insanity.
When many people suffer from a delusion, it is called religion.
Stuff we didn't have to pay for because of Air Miles (2 credit cards, exclusive for all spending but mortgage):
-Fancypants kitchen stand mixer/meat grinder/food processor (all in one!)
-rotating composter
-a dozen Whistler ski tickets
-vacuum cleaner
-magazine subscriptions
-flight to Ottawa for two
-two way radios
But best of all, $600 of Investorline vouchers that now give a 2.9% dividend and tax free capital gains.
However, I refuse to pay a penny in fees or any interest to a credit card.
Set up an investment account with your local bank (RBC, BMO, etc). I use Questrade.
Questrade, really? My co-worker was talking about Questrade so I checked their site out, to me it screams ripoff. I mean even their name sounds cheesy?
Questrade, really? My co-worker was talking about Questrade so I checked their site out, to me it screams ripoff. I mean even their name sounds cheesy?
I got the same vibe, and prefer to have my long term holdings with a long term institute. However, Questrade is quite popular with the online DIY crowd. Free ETF purchases, but I'm sure there will be a catch when you want to cash out.
http://www.moneysense.ca/invest/canadas-best-discount-brokerages-2015/
Shit, sorry, that article is for subscribers only.
Questrade, really? My co-worker was talking about Questrade so I checked their site out, to me it screams ripoff. I mean even their name sounds cheesy?
Nope, it's legit. I haven't used it but have heard of lower service levels than other online brokerages. I use CIBC, they lowered prices on trades to $6.95 flat fee a year or two back and I assume all the big banks have followed by now. I am very low volume on transactions anyway since I'm an ETF only long-term guy.
re: credit card rewards, the wife and I purchase absolutely everything on VISA (RBC Avion) for the points. I will buy a $1 pack of gum with my card if I can. We never carry a balance and just use a prime rate LOC if we don't have free cash flow to cover the bill. The key here is obviously having a robust family budget/forecast so you know exactly how much is spent where, and how you are paying for it as well as how much you are saving/investing/earning returns. This requires a bit of effort.
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