You’ve decided to buy your very first home in 2017. You’re about to start looking for houses on the market. Let’s review your decision to ensure that you’re in fact ready for this step. Continue reading
Here’s a strategy to maximize your savings that requires minimal effort over a two- to three-year cycle.
Sophie Sylvain recommends using the savings ladder, a strategy to maximize your savings that requires minimal effort over a two- to three-year cycle.
Here’s an example based on an annual income of $55,000. You can do the same thing with a smaller amount.
- 2013: You invest $3,000 in Capital régional et coopératif Desjardins (CRCD).
- 2014: You put your $1,350 provincial tax credit in your RRSP (45% credit) right away.
- 2015: Your RRSP contribution gets you a tax refund of about $518, which you put into your TFSA.
Result: The $3,000 investment is now worth $4,868, not counting the return on your investments.
CRCD shares too risky for you?
Start building your ladder with a $3,000 contribution to your RRSP, then put the tax refund ($1,151) in your TFSA. In two years you will have $4,151.
Slight variation: Instead of contributing to your TFSA, put it all in an RESP to take advantage of government grants.
To find out more about savings, visit https://www.desjardins.com/ca/personal/savings-investment/.
Gilles Drouin | Journalist
Five fun ways to help your preschooler learn about money.
It’s never too early to help them make sense of money.
If your kids can count, they can start learning about money. At this young age, a great way to teach them is through multisensory experiences that include lots of play, songs, and arts and crafts. Here are five fun ways you can engage your little one in lessons about dollars and cents: Continue reading
Start preparing a safety net for unexpected expenses.
Your washing machine breaks. You have a leaky roof. You lose your job. Your child gets sick.
No matter how well you plan, you simply can’t predict if and when unexpected expenses are going to arise — and inevitably they will. Your pay cheque may only go so far towards covering costs, and you’ll want to avoid going into debt or dipping into your retirement or long-term savings.
So what can you do to prepare?
Start saving now.
Open a separate savings account for emergencies, and get into the habit of depositing a weekly or monthly amount, even if it’s just $10 or $15. That may mean one less meal out, but it will add up over time. A great way to get started is to set up automatic savings. Once you’re in the habit of automatically setting money aside each month and adjusting your spending habits, you can gradually increase the amount. Continue reading
There are some projects, such as buying a house, that cannot be turned into reality over night. In addition to having to consider a number of factors, you must also be able to save sufficiently, all the while ensuring that the financial repercussions do not affect your lifestyle.
Whether you’re dreaming of a trip around the world, purchasing a new car, retiring under the sun, or acquiring a second home, your project must begin with a plan!
Advice… from the comfort of your home
Financially, it’s always wiser to save sufficiently to avoid having to rely on financing to accomplish your life projects. However, there’s no denying that in some instances, such as buying a home, it is quite difficult – and often, impossible – to save all that you need to pay it all in cash.
This however doesn’t mean that saving is futile. By saving as much as possible, you thereby minimize both your future monthly payments and the interest that accumulates on your loan. In turn, this will free up some considerable room in your budget.
But how and how much should you save? Continue reading