Why I Shouldn’t Have Bought A Car

Why I Shouldn’t Have Bought a Car

We all make mistakes. So why are money mistakes some of the hardest to admit to? Most people will readily admit poor relationship choices or clutsy incidents such as falling down the stairs (or in my case falling into Portage Avenue* for absolutely no reason). But are you hesitant to disclose your financial screw-ups? We often are. In my experience we seem to hold ourselves to a higher standard where money is concerned. It’s like we’re supposed to have some innate money management knowledge, and are embarrassed to admit that we don’t. So today I will tell you about what is probably my biggest money mistake.…

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Passive Investing Rules

Last week I wrote about the risk of inflation. My solution to this risk is an investing method called Index or Passive Investing. (I recommend reading the website Canadian Couch Potato for all the little details.) This method can provide a reasonable long term return on your investments (7-8%) with a variable risk of losing money. The chance of losing money is variable because it is related to your actions or inactions. Today I'll discuss some of the basic concepts of this method and provide some rules of passive investing to help minimize the risk. Rule 1 - Pick an appropriate Asset Allocation for your situation.…

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Inflation Risk

Risk is an unavoidable part of life. What comes to mind when you think about financial risk? Investing in the stock market? Overpaying for something? Losing your job? Being broke at retirement? In this post series I’ll discuss the ways you may be risking your money.  Being aware of these will help you make smarter choices when managing your money. Part One - Inflation Risk (or the risk of running out of money) When I first started working, almost twenty years ago, you could rent a one-bedroom apartment for around $400 a month. Now that cost has roughly doubled, with apartments easily going for $800…

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You Don’t Have to Put Zeroes in Every Line and Other Newbie Tax Mistakes

With tax season approaching, number geeks like me are sharpening our electronic pencils and itching to start number crunching. Sadly my taxes aren’t that complicated, so I have a lot time on my hands to reminisce about tax years of yore. I’ll review some of my past mistakes and misconceptions, and hopefully aid others new to the tax process. If you want more serious tax advice*, check out the Canada Revenue Agency’s official website. Apart from scads of articles and forms they have a video series and an online training guide if you want the most official information on tax…

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