4 New Mortgage rules in Canada are coming!
The newest one actually starts today! Sorry for not giving you a better heads up, but hopefully it’s not too late to let you know about the changes that are coming/here. There are currently 4 new mortgage rules that will be coming into effect over the next few months.
Many people maybe wondering why change the mortgage structure? Well, I don’t really know either, let’s look at a few facts about our economy. Canadian household debt to disposable income has risen to 165.3%. This is just slightly less than the all time high of 165.4% in late 2015. Meanwhile housing pricing are going nuts in Toronto, Vancouver, Victoria and Hamilton. All of those cities’ housing prices have seen double digit growth over the past year. Vancouver is seeing a 22% increase! But even with all that, mortgage rates are the lowest they’ve been in a long time. Just like the USA in 2008!…oh wait…I think I see the issue now.
In case anyone doesn’t remember 2008, here’s a graph of the S&P 500 for last half of the year. It was MUCH worse for a lot of smaller companies.
Passive Income is the best income
Why is passive income the best income? Well first let’s break down what passive income is. Passive income is earnings derived from equity investments such as rental properties, dividends, enterprises, or limited partnerships that you are not directly involved with.
Basically you give someone money and they give you a small amount of money back for an indefinite amount of time. The time could be forever provided the equity in your investment doesn’t go to $0. Passive income can be derived from numerous sources, the majority of which are available to everyone with minimal efforts.
What are some common sources of passive income?
Passive income can come in many varieties. I’ll touch on a few of the most common ones Read more
5 Tips For Beginner Investors
Investing your money for the first time is a daunting task. Sure, it can sound pretty exciting; the idea of putting money away and watching it multiply over time would be appealing to anybody, and if you do everything right, that’s just what will happen. But to actually confront the strategies, challenges, and mental hurdles involved with setting up an investment portfolio is different than just imagining things going well. It takes a lot of diligent work, and to some extent there’s a leap of faith required.
But never fear. Millions before you have invested, and done so successfully. As a result there’s plenty of good advice out there for when you’re just getting started. What follows is by no means a comprehensive list, but these are five general tips that can help to get you in the proper mindset to approach your first investments. Read more
The biggest sports deal EVER?
I’m not sure how many of you would have heard by now as it was just announced on Monday last week but the biggest sports deal ever was officially confirmed after a few weeks of rumors in the industry. No it wasn’t the Taylor Hall trade or PK Subban trade, they’re pennies compared to this monster. The UFC, better known as the Ultimate Fighting Championship, was sold for a record sum of $4 BILLION dollars. Not bad for a 15 year run after a purchase price of $2 million back in 2001.
To put that into perspective, here are the top 5 most valuable sports franchises according to Forbes(caution, it’s a page per each franchise kind of list if you wanted to see the whole thing it’ll be a lot of clicking): Read more
Andddd here’s another one! The second quarter of 2016 is over and it seems like time is flying WAY faster than normal. There’s not a whole lot to talk about that happened in this quarter but there’s one major thing you may have heard of.
On May 3rd, my second home of Fort McMurray, Alberta was evacuated. Over the next few weeks 15% of the town was burned to the ground and the majority of the city had major smoke damage. I happened to be extremely lucky and wasn’t in town, was scheduled to fly back the morning of May 4th. Which is now starting to become a trend for me, avoiding major disasters by a day. In 2013 my other hometown of Calgary, Alberta had a major flood that caused billions in damages throughout the province only weeks before their biggest tourist attraction, The Calgary Stampede. Luckily, I wasn’t there for that either, flew out of town for 2 weeks the day before it happened and the evacuation order was lifted just before I got back. I’m like a disaster dodger and I really hope that trend doesn’t stop! Read more
Where does ISIS get its money? That doesn’t seem like a personal finance title at all!
Well you’d be almost right if that’s what you thought when you read the title of this article. Where does ISIS get its money is a topic that has been touched on by some news outlets and various pages across the internet. I recently listened to a podcast by Planet Money titled Auditing ISIS. At first when google play suggested it to me I thought maybe I wasn’t reading the title correctly, but it turns out at 31 years old I can actually read; writing is a bit more difficult, but that’s what this blog is for! Right? Read more
There’s tons of websites and guides out there to help you get rich fast. Well here’s another list for you to read, but it has nothing to do with getting rich quick, or even getting rich at all. Here’s 7 ways to NOT become a millionaire as if we NEED more help with that!
- Don’t take advantage of your employer matched GRRSP contributions – This is an instant return on your investment, but you probably don’t want to do it because it’s a hassle or the management fees from the designated broker might be a little higher than your own Canadian Couch Potato Portfolio and you can do better without their money weighing you down. Turning down a 100% return to save 1% is a sure fire step to ensure you do not become a millionaire.
- Don’t negotiate a salary – Employers are ALREADY offering you more then your last job AND they said that’s as high as they’ll go, so you don’t want to make them angry by asking for more. In my day to day work I’ve had the pleasure of interviewing and sending job offers to people and they almost never negotiate their salary. This is fantastic from my point of view because I just got an employee on sale for that project.
- Stay in one job miserable job – After all you should be thankful you have one right? Some say that if you stay in your jobs for more than 2 years you can make about 50% less than those who don’t. So that’s a pretty quick way how to not become a millionaire just by staying put.
- Don’t teach yourself about personal finance – They don’t teach us anything in school for a good reason, right? Public school boards totally have our best interests in mind when it comes to teaching us life skills. I constantly use Pythagorean’s theorem and dissect small animals at my job.
You’ll probably want to write down these books to make sure you never accidentally read them: The millionaire teacher, The Wealthy Barber Returns and well really just anything about money, don’t bother with it. School taught you enough, after all you came out of high school knowing how to file your taxes right?
- Keep up with the Joneses – They’re financing everything and so should you! After all it gives everyone the impression you’re doing so much better in life then they are and that’s how you want to live right? Leverage every purchase you make so the majority of your income is going to interest payments and while you’re at it make sure a few of those purchases are on credit cards. The quickest way to never be a millionaire is to always carry a balance from those designer goods on your credit cards so you rack up that 18-21% interest. If you’re paying enough interest each month that’s an excellent way to not become a millionaire!
- Invest in highly volatile stocks and trade with your gut – There’s people that study the markets and world trends for a full time job and they can’t predict how the markets will go, so trading with your gut is the best way to not become a millionaire, right? Just buy and sell as you see fit, you don’t need any training but if you’re going to take some training make sure it’s those from one of those get rich quick guys you might see paying models to promote on Instagram and on some YouTube channels. They’re definitely a scam, so they can certainly help you to not become a millionaire.
- Don’t learn from your mistakes and accept responsibility – Once filed for bankruptcy? It probably was just bad timing in the markets and will never happen again! Definitely repeat those same steps to ensure you’ll never become a millionaire.
3 ways I discovered how to reduce my taxes
I remember a few years ago I read this article online that I now cannot find. It was basically an explanation on how the rich pay much less in taxes as a percentage of their income. I didn’t think too much about trying to reduce my taxes at the time because I had recently graduated university, and was starting my new career in another province. I had too much to worry about before I could worry about trying to reduce my taxes…like getting enough income to start paying taxes. I thought that would be the best place to start! But I think it really stuck with me subconsciously because over the next few years I started to think of multiple “hustles” to help reduce my taxes as I felt this could be another avenue for retaining more money.
9 Great tax deductions for income properties
Tax season is just about over for everyone and I was able to get a pretty nice return thanks to my tax deductions for income properties. You may know by now that I have two income properties. If not, go and read about my first one which became an income property by accident. When you’re done there you can check out my search for a purpose bought income property. Go ahead! I’ll wait right here!
Why so many income properties?
Well besides the fact they can make you tons money in four different ways, any accountant (always helps to check with an accountant if you’re going this route, they can save you lots of money!) could tell you all about the tax deductions for income properties. Read more
So a year has gone by since my first Q1 update and basically since I started this blog. So I’ll be looking back at the entire year to see how I did with my goals. First a quick recap of the year.
I started this blog in the last few days of March in 2015. I started it with the intention of just getting a creative outlet in my life that I can share some thoughts and stuff on my trips and inspire people to start planning their financial futures a little better and earlier then most start to plan. That idea turned into more of a focus on personal finance since my personal life took a big turn and I wasn’t in a good place to talk about it, even typing this now is difficult.