10 Financial lessons to share with friends chair zumba workout

One cool trick I learned was to bump up that percentage in tandem with a salary increase each year. So, for example, let’s say you earn $50,000 and saved 5 percent of that amount ($2,500). Then you get a 4 percent raise in the new year, so now you make $52,000. Well, don’t just continue saving $2,500 – bump that up to $2,600 to stay in-line with your 5 percent savings rate. 5. Invest wisely

The easiest way to get started with indexing is with an all-in-one balanced fund. Tangerine has a great line-up of low cost balanced mutual funds to choose from. There are no account fees, no minimum account size and once you’re set up the funds are virtually maintenance-free. Management expense ratios (MER) on these funds are 1.07 percent, or about half that of most bank mutual funds.

Finally, you can strike a balance between low cost and minimal effort by choosing a robo-advisor to manage your investments. You’ll get a similar low cost, broadly diversified portfolio of index funds. Just add new money regularly and the robo-advisor will automatically rebalance your portfolio for you. Chairman of the joint chiefs of staff instruction expect to pay about 0.70 percent in fees.

Maybe it’s in our polite canadian nature to just accept the first offer that comes our way. But we’re leaving money on the table when we don’t ask for a better deal. How good of a deal can you get? That depends on whether you’re negotiating for a higher salary or just trying to save a few bucks on your cable bill. Just remember the answer is always no unless you ask.

This article prodded me to take a look at my investing/savings/financial history. We are a retired couple- 80 and 76. I do the finances in our family, as my husband is hopeless and has very little interest. It was interesting to look back and evaluate myself against your points. I hope people reading this can become more determined to stick to their plans, as I am looking backwards instead of forwards. Sorry if this seems too long.

Credit card debt: this is the area in which I am most proud; the only time I have ever carried a balance was back in the 60s, when my christmas cash was stolen, and I had to put the gifts on my card. In those days it took 2 months to pay off and I didn’t breathe until it was. Absolutely, keep credit card debt to zero; otherwise you are wasting your money.

Track spending: I have been tracking our spending up to my ears. It was necessary to juggle all the bills, the mortgage, the post-secondary education savings on one paycheque. Over the years, the tracking has become more refined; categories changed; now I am tracking retirement spending. What a relief. Yes, it’s sometimes a pain in the butt, but it keeps you on the right path to meet your goals.

Save a percentage of your income: I didn’t save a large percentage as most of the savings were slated for specific purposes and for 10 years I was a stay at home mom. I tried to keep it around 10%. Upon becoming empty-nesters, the percentage has actually gone up to 30% (we live very simply). Rocking chair emoji although life may interfere with your goals at times, just keep on meeting at least your minimum percentage of savings.

Invest wisely: here is where we ran into difficulty. We kept the retirement savings in ‘safe mutual funds’ for many years; when we did try to invest the excess funds, we did NOT know what we were doing, so we ran to our bank’s financial advisor. We lucked out as he was very knowledgeable, sensitive to our situation and taught us some valuable lessons. (yes, we were put into bank mutual funds, but the lessons came from his explaining the whys of the moves). When he retired a few years ago, I have taken these lessons and applied them to further investing, now that our retirement funds have turned into rifs. Learn all you can while you can.

Get a better deal: another area in which we fall down. Living in northern ontario, we are somewhat limited in cable, phone service and so on. Also the older we get, the more set we are in our ways- example, hubby likes his golf channel so we won’t be changing our cable lineup any time soon. Do your research, but be aware that you may have to accept some limitations and do some compromising.

Avoid buying too much house or car: we purchased our house from my father; the house has been in the family since the 1930s. It was great when we were young and energetic- our own 3 bedroom apartment and 2 separate apartments. Now, I see it as an albatross- way too big, don’t want to deal with tenants. Cherished memories photography butler pa however, we would pay as much in renting with no parking and no private laundry room as we are paying right now to maintain the house. Someday, we will have to move. We used to buy used cars as my husband traveled over back roads for his job. When we did buy a new one after retiring, we paid cash. Buy within your budget and circumstances.

Simplify your finances: I have never been a credit card or bank account chaser. We ended up having our accounts in one bank with whom we were satisfied. Now, we are one of their preferred customers, so sometimes loyalty pays off. I have chosen our 3 credit cards based on what we use- PC points because we only have 2 grocery stores in this town, canadian tire to get a discount on gas (also in our town), and a fairly vanilla visa as a backup card. Make your cards and accounts work for you.

Save on the big things, spend on the things you enjoy: this message is not very applicable for us these days. Going from a disciplined tight saver, I am now loosening up and considering drawing down our investments to make things easier for our children when dealing with the estate. Note: the estate will NOT be in the millions. I am now working on a draw-down plan to free up some cash so we can fly out east to visit one daughter more often. As long as I hold myself in and don’t spend the money frivolously… this is when I am so happy that we were tight in the early years; we can now enjoy the fruits of our labours. Reply