Tag Archives: Gail Vaz-Oxlade

Apr 18: Best from the blogosphere

By Sheryl Smolkin

We’re back and there is more than ever to share with you! We took a two-month break, but our favourite bloggers were still hard at work. So we have lots of great stories to tell you about in the weeks to come.

The Liberal government’s first Federal Budget was tabled last month. It eliminated some measures enacted by the Conservatives and others will be phased out over time. On the Financial Independence Hub, Paul Phillips from Financial Wealth Builders gives a financial planner’s perspective on Budget 2016. One surprise he notes is the elimination of the tax deferral on fund switches within a mutual fund corporation.

The significance of not having a great credit rating may not hit until you apply for a credit card or mortgage and are either turned down or not approved for the amount you need. Blogging on Money after Graduation, Bridget Eastgaard discusses five easy steps to build good credit. Because 18% of credit reports contain errors, she regularly checks her credit report to ensure her student loan payments have been properly recorded, no credit cards were opened under her name through identity theft, and that companies have complied with her requests to close credit accounts.

Robb Engen is a well know blogger at Boomer & Echo and over the years he has shared lots of ideas about how to more effectively earn and save money. While he does not encourage calls from his office on evenings and weekends, he says it is a fair trade off because his employer covers his cell phone bill. In fact, he estimates that he has saved more than $9,500 over the last 12 years (144 months x $66 per month) because in a series of jobs over that period he has never spent a dime out of his own pocket on a cell phone plan.

As the balance in your RRSP grows over time, it can be hard to resist the temptation to tap into your nest egg in an emergency or just because you “need” something that is above and beyond your current budget. Retire Happy’s Sarah Milton gives three good reasons why withdrawing money from your RRSP before retirement is not a great idea.

And finally, personal finance maven Gail Vaz-Oxlade recently announced she has written her last blog. While we know from personal experience that blogging week in and week out can be challenging, her fans (myself included) will miss her consistently great advice. Fortunately, most of the archived blogs are timeless.

So for those of you who are considering buying a home this spring, we are linking to one of her better articles. She makes a great argument for spending a little time saving for a down payment rather than locking yourself into a mortgage payment that strangles your cash flow while you pay exorbitant amounts in interest and insurance premiums.

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Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Feb 1: Best from the blogosphere

By Sheryl Smolkin

In this space we typically provide links to interesting work by our favourite personal finance writers about topics ranging from money-saving tips to retirement savings to retirement lifestyle. But many of these prolific bloggers have also posted great videos on YouTube with helpful tips and tricks for people looking for ways to better manage their money.

So keeping in mind the old adage that “a picture can be worth a thousand words,” this week we identify a series of videos featuring pundits you already know well. While some of these videos are not new, they have stood the test of time.

Take a minute to watch at least a few of them, and let us know whether you would like to see more video content on savewithspp.com.

Sean Cooper is a pension administrator by day and a hard-working personal finance writer by night. Watch him burn the mortgage he paid off in 3 years and reveal his super saver secrets.

One of a kind blogs like How to get married for $239 by Kerry K. Taylor, aka Squawkfox have have been read by thousands of eager fans. In this video she discusses with the Globe and Mail’s Rob Carrick, How to stop wasting money.

In Life After Financial Independence as part of his Tea At Taxevity series, actuary Promod Sharma interviews author and former MoneySense editor Jonathan Chevreau about his post-retirement projects, including the Financial Independence Hub.

TV personality and personal finance guru Gail Vaz-Oxlade is interviewed on Toronto Speaks: Personal Finance about spending beyond your budget.

Studies suggest that 6 out of 10 Canadians do not have a retirement plan. Why is that number so high? Retire Happy’s Jim Yih shares a couple of theories about why it’s hard to plan for retirement.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Oct 26: Best from the blogosphere

By Sheryl Smolkin

As I write this, perhaps the most newsworthy item of the last week has been the election of the new Liberal Prime Minister Justin Trudeau. But it will be weeks and months before we know what impact the change in government will actually have on our day to day lives and the Canadian economy.

So today, we go back to basics and draw on the writings of many of our favourite personal finance bloggers and mainstream media pundits who day in and day out, produce articles that help us better manage our money.

The thought of being unemployed is terrifying, but the odds are it will happen to you or a close family member at least once in your lifetime. On Money We Have, Barry Choi writes about How to Prepare for Unemployment. He suggests that you have an emergency fund; a side hustle and that you improve your skills.

Gail Vaz-Oxlade tackles Parenting on a Budget. She says the trick to not letting kids’ expenses get way out of hand is to allocate a specific amount to each child’s activities and needs, and stick with the plan. Start by listing all the things your children do for which you must lay out some of your hard-earned bucks.

Krystal Yee has been vegetarian for almost two years now. She shares on Give me back my five bucks her one month experiment moving from vegetarian to vegan. She anticipates higher than normal grocery bills and that it will be tough to change her habits, but she is hoping that one month will turn to two months and the result will be a new lifestyle.

If you wonder where your money goes, you’ll enjoy The crunch years: Where the money goes by Matt McCleern on MoneySense. McCleern tracked every cent he spent digitally, over the last 12 years. He says transportation and daycare were real budget busters, but the best financial decision he ever made was to aggressively pay down his mortgage.

And in the Huffington Post, Pramod Udiaver discusses five major trends that will affect how you retire. They are increasing longevity; the lower return environment; fewer defined benefit pension plans; and growing health care costs.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

BOOK REVIEW: Wealthing Like Rabbits

By Sheryl Smolkin

I don’t often review personal finance books because it seems to take an inordinate amount of time to wade through yet another statement of the obvious just to glean enough cogent information to give readers a taste of what the book is all about.

But when I read accolades from the likes of Gail Vaz-Oxlade, Preet Bannerjee, Roma Luciw, Dan Bortolotti plus a whole bunch of my other favourite personal finance bloggers in the introductory pages of the book, I thought I’d better keep on going to find out what all of the fuss is about.

Author Robert R. Brown says Wealthing Like Rabbits is written to be a fun and unique introduction to personal finance and suggests that any book that includes sex, zombies and a reference to Captain Picard is “an absolute must read,” regardless of genre.

Brown starts out by asking how many rabbits there would be after 60 years if 24 rabbits were released on a farm on a great big island. Before providing an answer to this question, he introduces the need to save for retirement, although he doesn’t begin to predict how much you or I will need. His only conclusion is that “more is better” because it is better to be 65 years old with $750,000 saved than 65 years old with $75,000 saved.

Then he reveals that there would be 10 billion rabbits after 60 years and launches into a discussion of the history and key features of registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs). Subsequently he riffs about how many zombies there would be in England if France sent 100/week for 40 years.

If you are still with me, you may wonder — what is the point of all this?

Not surprisingly of course, it’s to illustrate the power of compounding, whether in relation to rabbits, or money or zombies. We learn that just $100/wk deposited in an RRSP earning 6% for 40 years will add up to a nest egg of $624,627.

But the positive and the negative impact of compounding interest are also very cleverly brought home in later chapters. I particularly liked the comparison of brothers Mario and Luigi who both had similar incomes and $100,000 for a down payment on a house. They went to the bank to find how big a mortgage they were eligible for.

Mario’s banker told him “he could afford” to buy a house for $525,000. Luigi told the mortgage specialist he needed $10,000 for closing costs and the $90,000 balance had to cover at least 20% of the purchase price of the house so the most he would be willing to spend is $450,000.

The story continues with Mario buying a 3,000 square foot home for $525,000. Luigi sticks to his budget and buys a 1,600 square home nearby for $350,000. Over 20 years, compound interest on the mortgage means that Mario ends up paying $807,538 for his house while Luigi only has to fork out $538,359.

Similarly, when it comes to debt, Brown illustrates that high interest credit card debt can quickly escalate if balances are not paid off every month. Even I did not realize until recently that if you miss your payment due date by even as little as one day, the interest-free grace period completely disappears. In fact you have to pay interest on the amount of each transaction from the date each and every purchase was made.

Brown also reviews the characteristics of a line of credit; a home owner’s line of credit; bank loans and consolidation loans. While generally he believes all of these can cause severe damage to your financial health, he recognizes that when handled properly, they each have their place.

But he draws a line in the sand when it comes to payday loans. Never, ever get a payday loan, Brown says.

He gives the example of Buddy who borrows $400 from a payday loan place because his furnace broke down. He is charged $21 for every $100 he borrows for just two weeks. Two weeks later he pays the payday lender $484. That’s 21% for only 14 days, which works out to 546% annually. And that’s only the beginning.

If Buddy can’t pay in two weeks the payday loan company will charge him an NSF penalty and continue to accumulate stratospheric interest rates on the whole amount. Further defaults mean he will likely be hounded both by telephone at home and at work day and night. The file may be handed over to an even more aggressive collection agency.

In the second last chapter, Brown offers a brain dump of financial tips (which he doesn’t call “Fifty Shades of Brown”):

    • Spousal RRSPs are cool.
    • MoneySense magazine is a great source of personal finance information.
    • Eat dinner at home. Then go out for a fancy coffee and desert to Starbucks.
    • Buy life insurance, not mortgage insurance from your bank.
    • Read Preet Banerjee’s book Stop Overthinking Your Money for the skinny on life insurance.
    • Use the noun“wealth” as a verb. So instead of saving $150/week in your RRSP you will be wealthing your money.

And finally, Brown’s parting words at the end of the book are “you’ve got to show up.” Put some money away for your future. Live in a house that makes sense. Be smart about how you spend your money. Spend less than you earn. Be comfortable living within your means. He says it really is that simple.

Wealthing Like Rabbits is funny and engaging and it hits all the personal finance bases. Regardless of whether you are a Millennial, a Gen Xer or a Boomer, you will find lots of tips on how to save more, spend less and still have a lot of fun along the way. 

The book can be purchased in hardcover for $16.95 and the epub and kindle versions are available for $7.99.

May 18: Best from the blogosphere

By Sheryl Smolkin

Over the last few weeks, the Globe & Mail has featured an interesting series on debt, and how it is affecting both individuals and the economy. If you haven’t been following it, take a look at some of the stories below:

A taste for risk: Looking into Canada’s household debt

In deep: The high risks of Canada’s growing addiction to debt

Are you drowning in debt? See how you compare to other Canadians

Laurie Campbell: Credit Canada CEO shatters debt myths

I particularly like Rob Carrick’s article There’s no such thing as good debt. Mortgages, investment loans and student loans have traditionally been characterized as “good” debt. Carrick agrees borrowing for each of these purposes can be a rational thing to do and you may end up wealthier as a result. But he concludes there are too many pitfalls today for any one of them to qualify as a no-brainer financial decision.

Big Cajun Man (Alan Whitton) on the Canadian Personal Finance lists several articles about the evils of debt among his personal favourites. In 2008, he wrote Debt is like Fat. He says that just like his weight gain occurred a little at a time over 14 years, if you are not careful, debt build up can occur slowly without your noticing it.

If you are facing a mountain of debt and don’t know where to start, take a look at How I Paid Off $30,000 of Debt in Two Years, The Blog Post I’ve Been Waiting to Write  and What a Year of Being Debt-Free Has Taught Me  by Cait Flanders, who blogs at Blonde on a Budget.

In 2013, Krystal Yee at Give me back my five bucks wrote  How do you fight debt fatigue?. Debt fatigue is a mental state that can happen when you’ve been in debt for so long that you think you’ll never dig yourself out of the hole you’ve created for yourself. She quotes financial expert Gail Vaz-Oxlade who often tells people on her television shows to try and make a plan to get out of debt in 36 months or less – because anything more than three years, and you’ll likely suffer from some form of debt fatigue.

And finally, in a guest post on the Canadian Finance blog, Jim Yih from Retire Happy wrote that Debt Can Be A Problem For The Baby Boomers’ Retirement Plans. He says baby boomers who are getting ready for retirement need to get serious about planning for the best years of their lives.  Part of getting serious is addressing debt head on and taking the necessary steps to develop good habits around debt. His five tips on how boomers can deal with the debt epidemic are: stop overspending; increase your income; get support; focus on you before your kids; and, take one step at a time.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Jan 19: Best from the blogosphere

By Sheryl Smolkin

If you max out your SPP contributions each year, you know your money is invested in an easy to understand balanced fund. However, when you top up your savings with contributions to either workplace retirement savings plans or your personal RRSP, it is often challenging to figure out how to invest your money.

On Tangerine Bank’s blog Forward Thinking, Preet Bannerjee suggests Parking your RRSP contributions to beat the deadline. The money just sits there, “parked” inside an RRSP as a low-risk investment until you’re ready to figure it out. Some people may not realize that investments inside an RRSP can be changed later.

In My 2014 (and final) Portfolio Rate of Return Boomer & Echo’s Robb Engen admits his dividend stocks did not match average market returns last year so he finally bit the bullet and sold “his babies,” replacing them with an easy two-fund solution.

With another take on passive investing, Holy Potato released his “Canonical Portfolio,” a simple recipe of four funds or ETFs for your portfolio. He presents a portfolio of four funds (bonds plus three equity classes) with a simple rule-of-thumb to determine the main split.

Sarah Milton specifically addresses the investment dilemma facing people saving in group retirement plans on Retire Happy. She presents 3 Investment options for passive group investors including guaranteed investments, asset allocation funds and target date funds.

And finally, Gail Vaz-Oxlade’s post How Do You Stack Up? refers readers to a tool on the Royal Bank website that measures how you stack up against your region and Canada in general when it comes to your income and net worth. Although it’s nice to get a benchmark of how you’re doing, she says that comparing your results to someone else’s means nothing if you aren’t dealing with similar circumstances.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.

Gail Vaz-Oxlade: Achieve financial literacy on mymoneymychoices.com

By Sheryl Smolkin

 

Click here to listen
Click here to listen

Hi, today I’m kicking off the 2015 SavewithSPP.com expert podcast interview series. I’m delighted that Gail Vaz-Oxlade has made time in her busy schedule to talk us.

Gayle is truly Canada’s money maven. She has worked in the financial services arena for 25 years as a writer, reality-television host, public speaker and corporate spokesperson. Over the last several decades she has published 15 personal finance books, four of which were on the best-seller list at the same time in January 2012.

She has also filmed almost 200 episodes of her television programs, Til Debt Do Us Part, Princess and Money Moron. In addition, she regularly blogs and answers questions from readers on gailvazoxlade.com.

But, what I’d like to talk to her about today is mymoneymychoices.com, an online financial literacy program she founded just over a year ago.

Welcome Gayle.

Hi, thanks for having me.

Q: So Gayle, how do you define financial literacy? How big an issue is lack of financial literacy in this country? 
A: The issue itself is huge because most people already know most of what they need to know but aren’t doing it.

Q: You describe mymoneymychoices.com as Canada’s first comprehensive financial literacy program designed to raise the money IQ of Canadians by drawing on community support, a solid financial roadmap and gamification for reinforcement. How did you come up with the concept?
A: I was actually between television shows. I had a big whack of time off and I read about an organization in the U.S. that that used positive peer pressure in order to change behavior. So I laid out this roadmap of everything you need to do in the order I think you need to do it in, to build a rock solid financial foundation.

Q: What are your goals for the program?
A: Really what I want people to do is stop saying “I don’t know where to start.” If you go to mymoneymychoices.com and register – it’s absolutely free – and you just take the steps as they are given to you in the program, then you will work your way to being financially healthy. I want people to come together in communities and support each other, teach each other and work together in order to increase their community’s financial literacy. 

Q: You say the first level is the hardest. Why?
A: In the first level, which I say has all the heavy lifting; you have to do your six-month spending analysis. You also create a debt repayment plan to get your consumer debt paid off in 3 years or less. You have to build a budget and you do your first net worth statement.  And very often I find that people don’t understand why the pieces are necessary. I say to people all the time, if you do the net worth statement today and it looks really bleak, it’s irrelevant, because it’s not where you are today. It’s how different it will be when you do it in six months for the second time.

Q: Do you have any sponsors or partners? Or, are you solely responsible for the development and maintenance costs of the site?
A: I would love sponsors to support us, but the thing is that, whenever you affiliate with anyone, typically what happens is they then have some say in what you do. And so I bore the costs of the development of the site myself and I set up the My Money My Choices Foundation, where I’m taking donations. In late 2014 I ran an Indiegogo campaign and raised $3,785.

Q: Is My Money My Choices, aimed at any particular age or demographic?
A: No it’s not. The reality is it doesn’t matter if you are 23 or 43. If you’re not aware of where your money is going then that’s the first place you have to start. If you’ve done all those things already you can just pick through those on the program until you get to the level where you are implementing something new for yourself. For example, it might be the level in which you investigate disability insurance and life insurance

Q: Give me briefly how the program works. I see there is a leader board and different prizes and levels.
A: The prizes are really icons. They are what you can use to show the world where you are and how you are progressing through the steps.

Q: What is the community element? From what I read on the website, you can’t do this on your own. You’ve got to be part of a tribe or a team.
A: You can do it on your own because anyone can use the roadmap. However if you are working within a tribe then what happens is you benefit from the support that comes along with that. When you have a whole community cheering you on, or kicking your butt depending on what you need that day, you’re much more likely to get back on the horse if you get bucked off.  That’s part of the purpose of the community.

The other part is that some people within a community are very good at some things and other people are very good at something else. And, when you bring it all together you create cohesion, together with process, together with management skills. When you bring all those things together you make it much stronger than each individual trying to do all the pieces alone.

Q: What role does the watcher play?
A: The watcher is the first guy to do the teaching. Typically the watcher is someone who has some money expertise whether it is official or not. And that person’s job is to help the first few people go through level one, and then guide those same people through the various other levels and encourage them to bring more people into the tribe so that they can become teachers and mentors to their own protégés. Ultimately, the watcher will manage the whole process and say “okay, this is how we’re doing as a community.”

Q: If a group of people want to get together and participate in your game on your website, do they have to have a watcher or does someone become a watcher because they are the first one who gets through the levels?
A: I’ll give you an example. I was invited to speak to a church community in Thornhill a few weeks ago, and I agreed as long as they set up a My Money My Choices tribe as part of the process. A gentleman named Emilio who is well along the way because he’s been following me for years became the watcher for that church community. He set up a Facebook page so people could communicate with each other. He made sure that there were books in the library so that the resources were available if people needed help making a budget or doing a spending analysis. He did all the administrative and support stuff to make sure that as people started coming into the program they didn’t get sidelined by small issues.

Q: That’s really cool. So it’s 23 levels. Can you give me some examples of what participants learn as they progress through the various levels?
A: Sure. The very first level, as I said is the hard one because what’s it’s laying the ground work for everything else. Once you’ve done level one you move on up to the point where you are putting process in place. You’re using a spending journal. You’re posting to your budget every single month. You know where your money is going. As you move up you also start allocating money to savings. You get your debt paid off. Ultimately, the reason there are 23 steps is because I don’t expect people to go from 0 to 100 in 12.2 seconds. It takes time.

Q: So you say you’ve had 8,000 people register on the website. How many of them have progressed through all the levels?
A: Nobody yet.  Because at the last level you are maximizing your RRSP, you have paid off your mortgage, you are maximizing your tax-free savings account, and you’ve got all your consumer debt paid off. This is a process. You are incrementally improving your financial position all the way along in very, very small steps.

Q: There are ways to earn extra points. What do you do with those points? What do they do for you? 
A: This is a very interesting phenomenon. One of the pieces of research shows that the points in and of themselves are what people want. They don’t care what the points translate into. It’s human nature. We like to gather things. We like to accumulate things. We measure our success in points. We like the point system.

Q: What kinds of things do people do to earn extra points?
A: It’s the idea that every time you post to your spending journal or push your spending journal to your cash flow budget you acquire more points. The reward system is based on action. If you are actively participating, you keep accruing points.

Q: Do you have any plans to changing or enhancing the program,?
A: I’m not going to touch the My Money My Choices program as it currently exists. I worked on it for about two years before I actually put it up. I think it covers all the bases. If people send me good resources to supplement it, I will add those resources over time once I have vetted them. But really, I don’t have to reinvent stuff if it’s okay and it’s working. What I want to do is use some of the Indiegogo money to create more of a presence on the internet that helps people find the program.

Q: You always seem to have dozens of projects on the go. Is there anything new and exciting still in the developmental stage you can tell us about?
A: I have a new book coming out in January 2016 called “Money Talks, When to Say Yes and How to Say No.” And that will deal with all the relationship side of money. How do you have those really difficult conversations that people just seem to be avoiding? Whether it is the conversation you have before you get married or the conversation you have with your parents because they keep hitting you up for money and you are dead sure they don’t have a retirement plan. So it’s all about having these difficult conversations and how best to position them.

Q: Thank you so much for taking the time to talk with me today Gayle.
A: Oh, my pleasure.

13Jan-GVO2

 

 

 

 

 

 

You can find out more about mymoneymychoices.com and how to play the game here. All of Gayle’s books are listed here and can be ordered from Indigo or Amazon.

The Dreaded B word: Budgeting

By Sheryl Smolkin

Everyone has their own system for handling the family finances, but if you are carrying expensive debt and always borrowing from Peter to pay Paul, you definitely need to do some serious budgeting. If you think you can’t afford to save for your children’s education or your own retirement, closely scrutinizing how you spend your money will help you to uncover ways to free up the funds you need to plan for the future.

Budgeting isn’t rocket science but it requires time and commitment. On her television show Til Debt Do Us Part personal finance maven Gail Vaz-Oxlade helps floundering families by putting them on a cash-only budget and dividing up into jars the amounts they can spend each week for each category, including debt-repayment and savings.

All nine seasons are available to watch online and there is more information and there are budgeting tools on her website.

Almost every personal finance blogger has done a series on budgeting and created budgeting spreadsheets you can download. For example, take a look at the Squawkfox budget series and tools. Retire Happy’s Jim Yih has also posted templates from his Take Control of Your Money workshop.

When my husband and I were first married, money was scarce and we budgeted quite carefully. Although we kept separate bank accounts, we did have a joint account for paying house expenses.

Once we had children our expenses increased but we also earned more. We still kept separate bank accounts, but each of us was responsible for specific expenses.

This ad hoc arrangement has worked well for us and for many years we have not had a formal budget. However, as we get closer to retirement, I realize that we will have only about 50% of our pre-retirement income. Therefore, it’s time to take a serious look at how we are spending our money now and how we will spend it once we are on a fixed income.

I can write off a portion of our house costs because I work from home, so I have a pretty good handle on these expenses. Most other expenditures like food, clothing, gas, car repairs, insurance, entertainment, travel, pet care, gifts etc. are charged to credit cards so we can accumulate airline points. It will take some time but it shouldn’t be too difficult categorize and analyze these expenses.

Finally, both of us withdraw cash at irregular intervals to pay for personal grooming plus lunches out and other miscellaneous expenses. These amounts are more difficult to track and we will have to make lists in our smartphones or find the right smartphone app to organize the information.

Once I get a handle on what we are spending now as compared to what we will have available to live on in future, I will track our monthly expenses as against income and projected income on a spreadsheet.

Some of our expenses will go down after retirement because we won’t have to pay professional fees and my husband won’t be commuting to work. We will also pay lower taxes and no longer have to save for retirement. Going down to one car or moving to a less expensive home are longer-term possibilities. But there is no doubt we will have to make compromises.

Whether you are just starting out or close to retirement, you may need help to create and stick to a budget. On the Canadian Finance Blog, Tom Drake discusses How to Choose a Fee-Only Financial Planner. If you are deeply in debt, the Saskatchewan Credit Counselling Society can help you consolidate your debts, develop a budget and get back on track.

If we had budgeted more carefully over the last 15-20 years we would have more to spend in retirement. But you can start right now. If you have used budgeting tools or resources that you recommend to others, let us know and we will share them in a future post.

June 2: Best from the blogosphere

By Sheryl Smolkin

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Summer weather has finally arrived in my part of the world, so fingers crossed that it lasts longer than a weekend! It’s certainly more tempting to head outside than comb the internet for interesting personal finance advice, but I have still managed to pull together some good reads for you when you finally get tired of reading lighter fare poolside.

In We Who Are About To Die, Etc, ex-banker Sandi Martin reminds us that in every relationship there is one spouse who handles the finances and one who does not. Therefore it is important to have a disaster plan plus a comprehensive list of passwords, bank account details and other important financial information easily available to both partners in the event that the unthinkable happens.

Mark Goodfield, the Blunt Bean Counter warns that just because you read personal finance blogs and have become a Do It Yourself (DIY) investor doesn’t mean you should also be Do It Yourself Accountants and Lawyers. He highlights some tax and legal mistakes DIYs often make because they have read general articles that just skim the surface of complex issues.

Tim Stobbs turned 36 this month so on Canadian Retirement: Free at 45 he shares 36 Lessons on 36 Years. My top 10 favourites are:

  1. Spend less than you earn.
  2. When in doubt, start saving. You can figure out the rest while you go.
  3. Keep your regular monthly expenses low and spend money instead on one off items.
  4. Savings shouldn’t stop you from having a life, It should help you have one.
  5. Don’t worry what others think, be yourself and you will be happier.
  6. Even when you fail, you still learn something.
  7. Live in the now when you can.  Embrace the moment.
  8. Remember to tell others you love them.
  9. You need 10,000 hour of practice to be great at something.  So start now.
  10. You always need to like one part of your job, if not find a new one.

The frugal trader on Million Dollar Journey once again tackles the million dollar question: How Much Do You Need to Retire in Canada? He says figuring out how much you need is pretty much a four step process:

  1. Work out a budget of expected expenses during retirement.
  2. Calculate how much the government will provide you during your retirement years. You can use the Canadian government calculator here.
  3. The difference between 1 and 2 is how much income from savings (and/or company pension) that you will need.
  4. Take the number calculated in step 3, and multiply by 25.  That is the amount you will need to have saved.  If you have other sources of income, like from company pensions or rental properties, then reduce step 3 by the other income amounts, then multiply by 25.

And finally, Gail Vaz-Oxlade discusses setting ground rules for boomerang kids. She says they should make a financial contribution to the household if they have a job even if you eventually give them the amount back to by a house. Otherwise they will get used to having a disposable income they can never hope to have again. The exception is if they are putting every extra payment into re-paying their student loans.

Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.