Thinking of Locking in Those Investment Returns? Think Twice.

Taxes, Commissions, Reduced Yields, and more.

investing

I was talking to my parents and sister the other day about investments casually one weekend afternoon. They remain interested in how I’m doing and financial health is of obvious importance to them for themselves and their children.

“Make sure when you make a good enough gain, you sell it. Otherwise you haven’t made any money,” my mother confidently told me.

My sister agreed: “Yeah, I don’t hold anything really long term. Once I’ve made maybe a few grand, I’ll sell and then just buy it again later.”

At first blush, their strategy makes sense, right? Make your gain official, buy it again, rinse, repeat. But there are obvious problems with this approach, problems that would erode your long term gains.

So let’s talk about that in the context of a fictional case study.

Continue reading “Thinking of Locking in Those Investment Returns? Think Twice.”

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September 2018 Financial Update

A deceiving month.

September

September was a deceiving month, one that I guess is me deceiving myself into believing, I saved more than I did.

Let me explain: this month I spent $1658.59, for an incredible 74.49% savings rate… yet my net worth only went up $704.09. For reference, the month before my net worth jumped over $13,000!

So what happened? I went on vacation and I spent roughly $3000. Why is it not factored into my monthly savings rate? Because I tally vacation spending into my year-end figures, not month-to-month. Reason being is that vacation expenses might create some outliers and inconsistent month-to-month data for the purpose of analysis.

More on the vacation on a future post (it was British Columbia, which was beautiful, by the way…)

Continue reading “September 2018 Financial Update”

Things I Never Cheap Out On (Part 2)

cheap

Last week I talked about something very anti-frugal: the concept of purposely cheaping out on things as opposed to buying high-quality and potentially long-lasting things.

However, there are just some no-go things when it comes to spending money, where I will spend obscenely larger amount to get the highest quality I can. Some of these items are just basic common sense, whereas others you might think are a bit borderline – I’ll let you decide.

Continue reading “Things I Never Cheap Out On (Part 2)”

Things I Purposely Cheap Out On (Part 1)

And there is something about drugs in here, I promise.

cheap.jpg

Frugal folk are all about quality. That means buying things of excellent quality and workmanship because they know it’ll last longer or taste better than the cheap stuff. It’s simply a matter of ROI – why buy something for $1 that might break any minute when you could spend $10 and keep it for life?

However, we all have our vices when it comes to cheaping out on things. And personally: I cheap out on quite a few…

Continue reading “Things I Purposely Cheap Out On (Part 1)”

The S&P 500 is at all-time highs. Should you sell?

Short answer: No.

Screen Shot 2018-08-30 at 9.47.56 PM

Index investors have much to be pleased with, particularly those who bought American.

The S&P 500 has rocketed to all-time highs in recent weeks with NAFTA negotiations trending positive and solid corporate earnings. At the same time, journalists, investors, and regular people alike are all talking about how the bull market is on its last legs.

“Be careful. You should sell. I don’t think there’s much room left to grow,” said a colleague to me as we chatted personal finance. We were talking pensions casually when the conversation shifted to ETFs and index funds (he is all in on real estate, by the way…).

As he walked away, I smirked, but I had a second guess moment: what if he was right?

Continue reading “The S&P 500 is at all-time highs. Should you sell?”

August 2018 Financial Update

My best month yet.

August 2018

The final month of summer came to a close and with it some below average spending amounts coupled with a three paycheck month and a surprise cheque (more on that later…). It’s months like these that make me smile!

Savings came from reduced spending with my girlfriend out of province for the month and reduced entertainment expenses. When the outdoors are so nice, the amount of free activities to partake in is incredible!

Overall, I spent $1,874.58┬áthis month for a solid 80.78% savings rate, which is the highest I’ve ever had in a month.

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Buying Lunch is Killing Our Wallets.

How I went from every day food court guru to weekend batch cooker.

lunch

Mm… Food. There’s nothing that makes me happier than eating a delicious meal that makes my taste buds happy, my stomach feel satisfied, and my energy levels feel replenished.

My favourite meal of the day: Lunch. Trust me, I got nothing against breakfast, brunch, dinner, or dessert. It’s just the timing of lunch is so perfect. It’s really the only meal you can look forward to consistently every single day of the week. Breakfast you’re probably super groggy when you make it, dinner you just want to get over with at the end of the long day, and dessert is fun, but just an indulgence.

But lunch. It’s the one that signals: “BREAK!” It’s the perfect excuse to go for a walk, sit in the sunshine, and recharge the brain and body. Plus, it’s also one of the few meals you might be able to cheat in your favourite fast food meal without anyone else really knowing.

Continue reading “Buying Lunch is Killing Our Wallets.”