If you've read any of David Bach's books you're already very familiar with the concept of paying yourself first. To explain what this means I'm gonna paraphrase from one of David's books, Start Late, Finish Rich.
Here's a quick thought, if you took your Canadian $5,000.00 tfsa and doubled it say every two months with this strategy, you would have over $300,000.00 by the end of the year. I kid you not! Breathless... we reach for the calculator and do this: $100,000 - (30,500 + 30,000 + 35,400 + 1,600) = $2,500. At this point it is not uncommon to see your Myles Rempel life, at least your worldly belongings, flashing before your eyes. You might be thinking "all that money passing through my hands for this?". Sorry, there's more... In early 2009, I was shocked to see how the recession was eating into my rrsp savings. People I knew were facing the prospect of deferred retirement because of their losses. What could I do? I had two choices: keep losing money and worry, or (deep breath) take the plunge into home ownership. When we attempt to "retire" at any age we need to do something. And if you're going to live another 40 to 50 years it's going to cost plenty. From a financial perspective it looks like we had best plan on croaking by the age of 70 or face an embarrassing evaporation of rrsps, and poverty. Finances aside, most of us will likely be working at something during our graying years, mentally, physically, emotionally and spiritually. When you have these squared away you can calculate what you have left. This amount should be split, not equally, between savings and personal spending. Earlier you wrote your savings goals, calculate what is reasonable each month to save. 21. When buying appliances, buy the highest efficiency possible. Look for the energy star symbol. Sometimes depending on where you live, rebates are available to encourage their use. Even if you are buying used, do some research into the model and model number to find out if it's high efficiency--double savings! It is not inappropriate if you validate the financial integrity of the person you are going out with. Make sure that they are projecting their real financial status and capability. Avoid persons who pretend to be someone they are not. If you sense any hint of dishonesty in your date, then you have to move with extreme caution. If you are dealing with a person whose life is being funded by bank loans and credit cards, then it is best that you take them off your list of potential dates. This is especially so if the person intentionally keeps mum about their financial situation. One of the requirements of running a home business, is the ability to conduct business transactions. First of all, you will need a business banking account. You will also need system for handling transactions with your customers, including a method for refunding payments, when necessary. There are online pay systems, such as Paypal, that you can use for this. However, if you need a more fine-tuned solution, you can also hire a freelance software developer, to create a system that is tailored to your needs. making money, rrsp mortgage, first time condo, home business needs
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