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What’s Important About Money to You?
2009-09-22 12:30:00
“It ain’t the heat; it’s the humility.”– Yogi Berra It’s not about the money. What is your real inner motivation for how you handle money – how do you spend it, and how and why do you save it? Having talked to thousands of people about their money, we have found that money is very emotional for people. How you handle it reveals what is really important to you – your core values. Think about it – what’s important about money to you? The answer should be an emotion that is your inner driving force. Based on the book, “Values Based Selling” by Bill Bachrach, we have asked the above question to thousands of people. Here are some of the most common answers to this question that people have told us in the last 15 years. Some of these values may seem to overlap, but if you focus on how they feel, you will see that each feels very different. You may have several core values, but you will understand yourself and your relationship to money best if you know ...
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Creating Super Human Kids
2009-09-21 12:30:00
As our toddler is approaching the 2nd year of life (terrible twos?), we have been contemplating various school systems and activities. We have thought about educational day cares, Montessori schools, ballet, Karate, piano, French immersion, swimming, soccer and the list goes on. Stepping back and looking at the big picture, I have to think about what is the purpose of all these extra curricular activities. I’d like to think that we doing what is best for our children. However, if you look a bit closer, are we simply training a super human kid? Are we, as parents, compensating for what we didn’t have as children? Perhaps we want our offspring to look better than the next kid? In addition to the purpose of over stimulating our kids, these extra curricular activities are big business and can cost a lot of money. For example, I just found out that our area is about to get its first Montessori school which is a new age way for toddlers to learn. I’m all for optimal learning...
More About: Kids , Human , Super , Creating

Sucker Rally, Monavie, Debt Free and More
2009-09-18 14:43:00
Canadian Money Forum has a great thread questioning if this is the greatest sucker rally in history. A fellow blogger, Lazy Man, is facing some legal issues when he wrote about Monavie being a scam.  Apparently, the meta keywords he used in the post are trade marked, but I really don’t see any grounds for a law suit. Five Cent Nickel asks Why Do You Want To Be Debt Free ?. Canadian Capitalist explains the retire your ride program. Flexo gets back to basics in explaining that financial success requires active decisions. Get Rich Slowly has a great article on How to Overcome Procrastination. Bargaineering lists 10 Tips to a Kick Ass Resume. Danielle Park thinks that the current market is overpriced in “only fools rush in“. Popular Posts: Canadian Discount Brokerage Comparison Top 6 ways to Save on Auto Insurance High Interest Rate Savings Accounts MBNA SPG Credit Card Review Child Care Tax Credits Questrade Review Are Hybrid Vehicles Worth it? Tax Free Savings Acc...
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Don’t Be Afraid of Finances – Just simplify them
2009-09-17 12:30:00
One of the primary reasons why people don’t like managing their finances is because they find the task confusing and tedious – this is mainly because their personal finances are complicated. I find that people tend to complicate their finances when it’s not necessary to do so, they have bank accounts with several banks, their brokerages accounts are all over the place, their investments are overlapping, etc. If you find yourself in a financial maze, I suggest you take a couple of days or maybe a weekend to find the way out of the maze and simplify your finances. Once you have your finances simplified managing money will be much easier and not so mystifying. How to Simplify? 1. Close Unnecessary Bank Accounts. There really is no need for having more than just one checking account, if you have multiple banks accounts consider closing all but one. If you are married than you may have more than one bank account, the best option for married couples is to have one joint ac...
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Small Business Banking Account Comparison
2009-09-16 12:30:00
As I mentioned in a list on the steps in setting up a corporation, obtaining a business bank account is a good idea.  The reason being is that the customers can pay you via company name instead of personal name.  As well, it helps during tax season when business income/expenses are separated from personal income/expenses. I’ve discovered that most small business bank accounts are expensive.  The big banks really try to scrape every penny out of business owners via business products, it’s almost nauseating.  Thankfully, I own shares in most of the big banks which helps calm my stomach. The small business accounts offered by the big banks really vary in terms of cost and features.  I went through the lowest cost accounts possible (I don’t like bank fees) and what they offered. Generally speaking, all the banks offered both a set monthly fee plan where you get so many transactions per month in addition to offering “pay as you go” plans. As of August 2...
More About: Business , Small Business , Banking , Small , Comparison

8 Ways to Simplify Christmas
2009-09-15 12:30:00
Christmas is one of those topics that people feel strongly about. If you love how your family does Christmas, great. Keep it that way. If you’ve been wanting to make some changes, this is the time to do it. Summer is over. Most people haven’t started their Christmas shopping yet. You want to talk to your family before they start making Christmas plans. My extended family is steeped in tradition. Changing anything is nearly impossible. When Brian and I moved overseas for nearly 5 years, our family understood that we weren’t going to be there Christmas morning. When we returned, it was expected we do the same thing we’ve always done. We wanted to make some changes and one of those changes was simplifying the whole season. One of the best ways to save money at Christmas is to simplify. For us it meant buying less stuff for fewer people. Our purpose wasn’t to save money although in the process we did. Our purpose was to create the kind of Christmas we wanted to ha...
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Lessons Learned from the Dragons Den (Shark Tank)
2009-09-14 12:30:00
If you’re anything like me, you’re glued to the TV when an episode of Dragons Den or Shark Tank is on. For those of you unfamiliar with the show, it’s a show where entrepreneurs “pitch” their ideas to venture capitalists (dragons/sharks) in the hopes of walking away with some money and new partners. Season after season, it seems that entrepreneurs on the show do not learn from the mistakes of those before them.  Here are some of the lessons learned from The Dragons Den (or Shark Tank for US residents) 1. Know the value of your business – The number 1 mistake that entrepreneurs make when approaching venture capitalists is putting a crazy valuation on their business.  There are some entrepreneurs who put insane multiples of annual sales on their company worth usually based on “emotional” value.  Do the research and find out the accepted multiple of sales/profits for your industry. 2. Be prepared to give up 50% of your business &ndash...
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First Home, Budget Spreadsheets, Gold and More
2009-09-11 12:30:00
Canadian Money Forum has an interesting discussion on what to offer on your first home. Lazy Man and Money has a resource of 60 free budget spreadsheets. Money Energy lists the Biggest Canadian Gold Stocks. Frugal Dad lists 3 Ways to Smooth Out Big Expenses. Canadian Capitalist has some advice for users of the discontinued program MS Money. Sun’s Financial Diary updates his net worth for August. Canadian Dream writes about gut feelings. The Digerati Life compares money management between men and women. Four Pillars has an explanation on how to hitchhike. Brip Blap tells us to take small risks. The Financial Blogger has some tips on commercial financing. Money Smart Life suggests to save money by selling your car. Thicken My Wallet has some practical job skills that everyone should have. My Dollar Plan explains how to make your home more energy efficient. Where Does All My Money Go lists some affordable renovation finishes. Generation X Finance writes about job skills and perfo...
More About: Home , Budget , Spreadsheets

Taking Baby Steps Towards Financial Goals
2009-09-10 12:30:00
I’ve received numerous emails from readers asking about how challenging it is to achieve their financial goals because of various circumstances.  No matter the situation, there are two ways to look at it, either the good or the bad of the scenario.  Focusing on the positive will help motivate and perhaps lead to progress, while focusing on the negative will simply dig the hole deeper.  Seems like pretty common sense stuff, but it can be challenging in practice. Do you have major credit card debt?  Seems impossible to get out of it?  Simply focusing on quickly paying off a $50k debt pile may seem unrealistic, and it probably is.  The key, in my opinion, is to take baby steps towards the end goal.  Can you budget so that you have more cash flow to put towards the debt?  How about consolidating to reduce the interest rate?  How about paying off the smallest balance first to keep you motivated?  Set smaller goals towards the larger goal and soon the larger goal will be i...
More About: Baby , Financial , Goals , Taking

Canadian Bank Accounts for Kids
2009-09-09 12:30:00
A few years ago we took the kids down to our local RBC and signed them up for a Leo Account. I did some online research to find out which Canadian bank offered the best bank accounts for kids. They were all so similar that no single bank was a clear winner. The only incentive at the time was with Royal Bank who offered a bank tour which ended in the vault. There each child would find 5 loonies in a safety deposit box to start out their accounts. I was really impressed with the level of service we received. The kids were treated like VIPs through the whole process and they came out feeling valued and excited to start their financial journey. When I began doing the research for this post, I was disappointed to find Royal Bank had discontinued this incentive. I even called them directly to confirm that they no longer offered it. If I were choosing again today, I would choose one of the banks that offered unlimited debits. Debit use isn’t a huge issue yet for my kids but I’ve...
More About: Kids

Setting up a Corporation
2009-09-08 12:30:00
It’s been a long time coming, but I finally overcame procrastination and put my online business under a corporation. As it’s been mentioned before, incorporating has many advantages for a small business such as: Tax deferral Optimized family tax planning via dividend sprinkling Capital gains exemption should the business be sold Litigation protection These benefits come at a cost however, which is why the cash flow needs to justify the added cost of a corporation. For us, the added cost was well worth the value a corporation provides. What are the added costs? Cost of incorporation – If you do it online, it may only cost around $300 or so.  However, I had a lawyer incorporate for me which ended up being around $1000 after it was all said and done. Cost of an Accountant – From the quotes that I’ve received, a simple corporation should cost about $800-$1000 to file every year.  However, to file the small business in previous years, the cost was arou...
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Best of Million Dollar Journey: August 2009
2009-09-04 12:30:00
Top 5 Articles for August 2009 Currency Exchange – Getting the Best Deal – This was a popular article that was featured in “The Globe”.  With CAD/USD exchange rates relatively low, some of us may be considering buying some USD to hold or spend.  The article explains various methods to lower the cost of currency exchange. The Trouble with Rewards Points – Are there ethical concerns regarding using rewards points?  Kathryn goes through some scenarios where she uses her points  to squeeze the maximum value out of them. ING Direct Review and $25 Referral (Orange Key) – I recently opened an ING direct account to take advantage of the $25 freebie when depositing $100.  Check out the article on how to get your $25. Flipping Houses for Profit – Real estate investing has been an interest of mine ever since graduating from University at which time I bought my first house.  One strategy of real estate investing that has peaked my interest as of ...
More About: Journey , Dollar , Million

Converting a Principal Residence into a Rental Property
2009-09-03 12:30:00
A real estate situation that I hear about often are people considering keeping their first home as a rental while moving onto their second personal residence.  The upside is obvious, if they do it right,  they get to keep an appreciating property along with the potential extra cash flow that rent brings in. The Basics As real estate investing is attractive partly due to the tax benefits, there is a tax rule that some people miss when converting their existing property into a rental. If we take a step back for moment, CRA rules state that if money is borrowed to generate income, then the interest is tax deductible.  This applies to rental real estate as well.  As the rental mortgage (investment loan) is used to generate rental income, all interest charged on the mortgage is tax deductible in addition to other rental property expenses such as property/water tax, insurance and utilities (if you pay for them). The Problem All is well a good, but the devil is in the details.  For mo...
More About: Rental , Property , Principal

MBNA SPG Credit Card Discontinued?
2009-09-02 12:30:00
It’s official folks, with great disappointment MBNA Canada has officially discontinued its popular Starwood Preferred Guest (SPG) Credit card (thanks to Nabeel for the heads up). For those of you who are fairly new to the blog, the MBNA SPG credit card is my favorite credit card and I use it for every purchase possible. When points are redeemed prudently, the return on money spent can be upwards of 6%. Here is the official news from flyertalk: As of August 31, 2009 SPG will no longer offer the SPG MasterCard from MBNA in Canada. SPG is creating an exciting new credit card that will be announced soon on spg.com. You will continue to be able to earn Starpoints and receive benefits as you normally do through February 28, 2010 on your current SPG/MBNA MasterCard. Sometime between March 1 – March 30, 2010, MBNA will send current SPG/MBNA cardholders a new MBNA credit card and the account will automatically transition to that new credit card. It will not, however, earn Starpoint...
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Money and Dating: Finding Someone with Similar Financial Goals
2009-09-01 12:30:00
I had two serious relationships in my 20s, both of which ended in some part because of money incompatibility. When I saw the red flags I had to ask myself, “Can I accept this person as they are, including their money management skills for the rest of my life?” In both cases the answer was a clear ‘no’ and I knew it was time to end the relationship. I am a huge believer in accepting people as they are and never having an agenda to change anyone. When I saw the red flags I mentioned my concern. When I realized we were on different money planets, it was time to move on. Here are some things to look for when dating and to be careful about yourself. 1) Be wary of stinginess I wanted to find someone who was practical and good with their money, someone who hated debt as much as I did but valued generosity and wasn’t afraid to spend as long as they had the funds to pay for it. I did not want someone who was stingy. I went out with a guy once who bought me flowers at a roadsi...
More About: Money , Dating , Financial , Goals

August 2009 Net Worth Update (+1.70%)
2009-08-31 12:30:00
Welcome to the Million Dollar Journey August 2009 Net Worth Update . There’s not a lot to report this time as not a lot has happened in the month of August.  The markets continue to edge upward but we are closing in on the volatile September and October months.  Do you expect a significant market correction coming soon?  Or do you think that their may be a smaller correction but continue on with the upward trend? With regards to savings, we did well this month sticking to the game plan.  One of our financial goals is to save a percentage of our income regardless of how much our income increases.  The cash is either used for RRSP/TFSA contributions, mortgage pay down, or a general cash account. Speaking of mortgage pay down, we have done well this year chipping away at the balance and we should meet our goal of eliminating our mortgage in early 2011. Assets: $457,350 (+1.07%) Cash: $4,500 (+0.00%) Savings: $13,000.00 (+30.00%) Registered/Retirement Investment Account: $69,...
More About: Net worth

Weekend Reading – August 28, 2009
2009-08-28 12:30:00
Canadian Money Forum has a sticky post on excel based financial calculators (written by Cannon_Fodder) Canadian Capitalist discusses Rogers recent fee hike. Generation X Finance has some Moving tips. Intelligent Speculator explains why Why Apple (AAPL) will be almost impossible to stop Money Smart Life has tips on preventing college student identity theft. Four Pillars talks about scams during tough economic times. Brip Blap has a series on lying in the workplace. Canadian Dream explains the average return fallacy. Frugal Dad has some advice in his article Happiness For Others Comes From Contentment With Yourself. Financial Blogger lists 5 Tricks to Get The Power of an Effective Schedule. The Sun’s Financial Diary exclaims “We Sold Our House!” Thicken My Wallet overviews The limitation of relying on advisor designations. Lazy Man and Money explains Budgeting with the Envelope System. Where Does All My Money Go has Great Expectations. The Digerati Life has an articl...
More About: Reading , Weekend , August

Flipping Houses for Profit
2009-08-27 12:30:00
I’ve mentioned before in a book review that I was, at one point, very interested in flipping houses for profit.  What do I mean by flipping houses?  It means to purchase houses that need cosmetic (or more) work selling for well under market value, upgrade them, and sell them for profit (hopefully) in a relatively short period of time.  Sounds pretty easy in theory, but flippers can get way over their head if they don’t know what they are doing. From reading a few books on flipping, watching various flipping TV shows and speaking with local investors,  it seems that one critical step is running the numbers as accurately as possible before purchasing the property to ensure that the project is financially viable.  The profit on a flipping endeavor is made when you buy which perhaps makes it the most important step.  That is, the lower the purchase price of the house itself, the higher your potential profit margin. The Process Evaluate the House – Once you find ...
More About: Houses , Profit , Flipping , Flipping Houses

The Trouble with Reward Points
2009-08-26 12:30:00
I love reward points. I collect PC (President’s Choice) points, Shopper’s Drug Mart Optimum Points and Airmiles. Recently even Sobey’s started offering points and I got one of their cards too! Shopper’s Drug Mart makes very little off of me, so much so that I’ve begun to question the ethics of points. Just last Saturday, on double point redemption day I cashed in 40,000 Optimum points for $100 worth of free stuff. My trick? I read the flyers, only buy what’s on sale at a lower price then I could get it anywhere else, buy what’s on my list and only shop there on double point days. Then I cash in my points on double point redemption days. Just this morning I picked up a brand new ‘pay as you go’ PC Mobile LG Rumour cell phone. They were offering $10 off in groceries when purchasing a new phone. My old 2004 model had a dying battery and I’d been looking at them for a while. I ‘paid’ for the phone with PC points and picked up a large can of coffee and s...
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How Canada Savings Bonds and Canada Premium Bonds Work
2009-08-25 12:30:00
A reader emailed me asking about my thoughts on Canada Savings Bonds . Basically, she has been withdrawing a portion of her paycheck every two weeks to purchase some CSB’s, but really doesn’t know how they work.   Most of the details can be obtained from the official CSB website, but I will dissect the info and summarize the main points. So lets get down to the basics. What is a Canada Savings Bond (CSB) or a Canada Premium Bond (CPB)? The Canadian government offers both CSB’s and CPB’s once a year and can be purchased within a certain date range (Oct -> April).  These bonds are very similar to a GIC where they provide a guarantee on the capital invested with various options on redeeming. The difference between the CSB and CPB is in their rates and when you can redeem them.  Of course, the greater the redemption restrictions, the higher the interest rate. Here is the official definition of a CSB: A Canada Savings Bond (CSB) is a safe and secure investm...
More About: Work

Hybrid vs. Gasoline Vehicle Comparison - Are Hybrids Worth it?
2008-06-09 11:30:00
With record high gas prices due to the price of oil, I’m sure that most car owners out there have major concerns over their gas usage. Over the past 10 years, the cost of gasoline has grown 250%! This got me thinking, with the newer “gas friendly” hybrid cars/SUV’s out there now, do the premiums ...
More About: Hybrid , Hybrids , Vehicle , Gasoline , Worth

Best of Million Dollar Journey: May 2008
2008-06-06 11:30:00
Most Popular MDJ Posts for May 2008 1. The High Cost of the Manulife One Mortgage The advertising for the Manulife One mortgage is deceiving, especially the online calculator. If you are contemplating whether or not to get the M1 mortgage, then read over the article and you’ll see why it can be the more ...
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Airline Fuel Surcharges
2008-06-05 11:30:00
With the price of oil and gasoline at all time highs, it was only a matter of time before industries start charging extra. One sector in particular, airlines, have been particularly hit hard by the high price of oil. If you plan on traveling by air this summer, looks like you’ll be paying ...
More About: Fuel , Airline

How to Open a TD e-Series (e-Funds) RESP Account
2008-06-04 11:30:00
A couple of readers in the RESP Strategy thread requested that I write about my experience opening a TD e-Series /e-Funds RESP account as it seems to be a popular choice for low cost index funds. Canadian Capitalist has already written about this topic, and pretty much sums up what is required. I will ...
More About: Open , Account

Fundamental vs Regular Index Funds/ETF?s
2008-06-03 11:30:00
I explained how fundamental index funds work, and how they can outperform regular index funds. But how much do they outperform by? Are they worth the extra MER premium compared to regular index ETF’s? Does the strategy of indexing based on fundamental factors instead of market capitalization really work? Hopefully, this article ...
More About: Stock Investing , Regular , Index , Fundamental , Funds

Fundamental Index Funds/ETF?s - The Basics
2008-06-02 11:30:00
After meeting with Preet Banerjee (the blogger behind WhereDoesAllMyMoneyGo) over coffee, I picked up a few tips and some new investment ideas. What really caught my attention during our get together was, not only his fancy suit, but the mention and explanation of fundamental index funds/ETF’s. What are Fundamental Index Funds /ETF’s? Fundamental Index Funds/ETF’s are index ...
More About: Basics , The Basics

More Weekend Reading - May 31, 2008
2008-05-31 11:30:00
Lazy Man and Money announces Two Years of Lazy Man and Money. Within the announcement, he confesses that he’s had thoughts of calling it quits. I think that a lot of consistent bloggers face burnout at one point or another. The Digerati Life writes about a family friend who purchased an extremely risky $1 ...
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Another Giveaway, Cheap Books and Weekend Reading - May 30, 2008
2008-05-30 11:30:00
$25 Amazon/Chapters Gift Card Giveaway It seems to be a pattern as of late that we start off the weekend with a giveaway. No, it’s not a book this time, but a $25 Amazon or Chapters gift card/certificate. What is this contest from? Readers who sign up for free online cash back discounts under my affiliate ...
More About: Books , Reading , Weekend , Cheap , 2008

May 2008 Net Worth Update (+3.12%)
2008-05-29 11:30:00
It’s the end of month financial checkup! Lets see, where do we start? On the income front, my wife finally started getting her maternity benefits along with the monthly UCCB payments. Even though the benefits are much less than her regular paycheck, they help take some of the pressure off. On the expense side of ...
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Smith Manoeuvre Portfolio - May 2008
2008-05-28 11:30:00
Time again for the monthly Smith Manoeuvre Portfolio update, May 2008 edition. I asked during the last update whether or not I should keep these monthly portfolio posts going, or if I should space them out a bit. I think that most of you enjoy these posts, but some may find them boring. ...