personal finance
Posts about personal finance.
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Preparing for the Next Recession – A Guide For The Canadian Middle Class
As a CPA and Licensed Insolvency Trustee, I had a front row seat during the Great Recession of 2009 – 2011. I saw the devastating impact it had on the lives of ordinary Canadians. These were everyday people who were for the most part honest, hard working, and played by the rules. Yet they found themselves on the short end of the stick when the Great Recession started 10 years ago: some lost their jobs, some had their financial portfolios decimated, some lost their homes and quite a few experienced losing all three. It’s been over 10 years since the onset of the Great Recession and Canadians are more indebted…
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How Does a Credit Score in Canada Really Work?
Introduction In theory, a credit score should be quite simple – through an algorithm, you’re assigned a numerical score that determines your credit worthiness. The score is a weighted average of many factors, including but not limited to: Your payment history Your credit utilization rate, which is how much of your credit limit you have uses versus how much you have available to you Balance owing on your debts The length of your credit history Public records (such as bankruptcy) Number of inquiries into your credit file Different Credit Scores But the reality is not that simple. Here are the complicating factors: Each of the two major credit rating agencies,…
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Filing bankruptcy with gambling and substance abuse problems
A readers asks First and foremost I’m a gambling addict and also have problems with substance abuse. I have accumulated so much debt that I have fallen into a deep depression and I just beat myself up daily because I did it to myself. My debts: $3,000 of credit card debt, $11,000 line of credit, $11,000 in payday loans (the worst I know). I pay around $380 a month just on interest charges; pretty much my debts are not going away. I have personal loans from friends of $6.500 and a student loan of $5,000 – I haven’t made a payment since around 2008. I also have a payday loan…
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The Relationship Between Personality Traits and Financial Success
During my 20 years as a financial professional and business owner in Toronto, I’ve gotten to know some very successful people and not so successful people. Here are my observations about the former and the latter within the framework of the Big Five Personality Traits, namely (1) Agreeableness; (2) Conscientiousness; (3) Extraversion; (4) Neuroticism; and (5) Openness to Experience. Agreeableness: “Nice guys finish last” – in my experience, this saying is very true. The “difficult person” is usually going to come out ahead financially because he can negotiate more aggressively in his own best interest, be it a real estate deal, salary negotiation or business deal. He won’t be overly concerned…
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Tips To Save Money in Toronto
It’s no secret that living in Toronto can be expensive. Here are some tips that I’d like to share with you on saving money while having fun in Toronto: Toronto Eating Tips If you’re a carnivore, fresh meat is almost always cheaper (and healthier) than pre-prepared or frozen meat. You will always get more protein per dollar spent if you purchase fresh meat and take some time to prepare and cook it yourself. For example, if you like eating chicken, why buy frozen pre-cooked chicken breasts at M&M Meat Market when you can buy fresh boneless chicken breasts at Metro or No Frills? Why buy frozen hamburger patties when you…
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Should I Rent or Buy a Home in Toronto?
Introduction When you first move to Toronto, you’ll likely be renting your living space. But after renting for a few years, you’re going to ask yourself this question: is it better to rent or buy a home in Toronto? Maybe you want to purchase your own place for emotional reasons (“my very own place!”), financial reasons (“I want to build equity”), or maybe a bit of both. Why Rent When You Can Own? A major influence on your decision to rent or to buy may be the marketing you see from the real estate industry asking you the perpetual question: “Why rent when you can own?”. Makes sense, right? After…
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Love and Money Don’t Mix
When Your Spouse Gets You In Financial Trouble Throughout my career as a Licensed Insolvency Trustee, I have seen the following scenario play out time and time again (I’m using the terms “boy” and “girl” for the simplicity’s sake): Girl meets boy and falls in love. He’s not perfect – he could be irresponsible at times – but he makes her laugh and makes her feel good. Besides, she’s confident that she can make him change his ways. Boy wants to buy a new home or car, but has pretty shoddy credit and/or low income. However, that doesn’t matter, his girl loves him so much that she’ll co-sign the loan…
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Take Caution When Selling or Purchasing a Condo Assignment – GST/HST issues
There are significant financial risks in purchasing or selling a condominium assignment. We discuss the implications for the Assignor and Assignee.
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How to Live Rich When You’re 22
This article was written by Lisa Zamparo, a Financial Strategist and Chartered Professional Accountant. It was originally published at www.LisaZamparo.com. In my work as a financial strategist, people often ask if I would have done anything differently with my own finances when I was first starting out, knowing what I know now. While I don’t believe in regrets, I do think that I could have made some smarter choices along the way. Here’s some advice I would give my 22-year old self… or the real-talk I would give to a 22-year old client. 1. Start saving, like, right now. Even if you think you’re broke. When you’re first starting out, struggling to balance a…
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Tips for Successful Entrepreneurship
Why Do Entrepreneurs Succeed and Fail? Successful entrepreneurship – to many people, achieving this is a mystery. We’ve heard stories of penniless immigrants who came to Canada with nothing but a dream, but within a single generation accumulate a lot of wealth. How do they do it? Employee Vs Entrepreneur This is a mystery to the typical person who graduates with a post-secondary education and goes on to work in the labour force as an employee (i.e., most people!). This is because our educational system specifically trains its students to become employees rather than entrepreneurs. The Secret To A Successful Business So when we hear about these rags to riches…
