I’m not sure what it is, but I love reading about other peoples’ personal finances.
Maybe it’s because talking about our personal finances is somewhat taboo.
Or maybe it’s because I’m a personal finance geek and I love to see how other people organize their financial life.
Whatever the reason, I love learning about another person’s finances.
Because I know there are other personal finance “voyeurs” our there I thought it would be fun to share a bit myself. In this blog post I’m going to give you a glimpse at my own personal finances and share my family’s budget for 2018.
Three times a year my wife and I sit down and review our financial plan. We go over our investments, our asset allocation, our income and our expenses. We make small changes and tweaks to ensure we stay on track with our overall financial plan. Having a solid budget is an important tool for achieving your financial goals.
So, without further delay, here is my family budget for 2018.
Financial stability is so important. Having your finances in order can be a huge stress relief. It lets you focus on the important things in life. Even small financial changes can have a big psychological impact.
Unfortunately, financial stress is the number one stress factor in our lives. This is especially true for young people.
For young people, personal finances cause more stress than family, health, or work. We obsess over our finances weekly, daily, over even hourly.
There are many aspects to consider when building a financially stable life. Things like budgets, emergency funds, maintenance funds, saving rates and debt reduction.
It also takes motivation. You need to have a goal in mind. This provides you with the motivation to make changes to your daily routine.
Building a financially stable life is possible. Any financial situation can be improved. There are just a few things to consider…
Where are you in the financial planning life cycle? Are you a student? Single? In a relationship? Do you have a young family? Maybe a growing family? Perhaps you’re entering retirement or maybe you’re starting to consider your legacy for the next generation.
The financial planning life cycle is a quick way to visualize the different financial needs a person will experience throughout their life.
Depending on where you are in the financial planning life cycle your financial needs will change. The financial needs of a university student are vastly different from a new retiree.
Knowing where are you are in the financial planning life cycle will help you anticipate your future financial needs and ensure you’re setting yourself up well for the future.
Knowing where you are in the financial planning life cycle will also help you ensure you’re not skipping anything today.
There was a great personal finance question from a user on Reddit the other day that basically asked if it was even worth saving money in your 20s. The user asked r/PersonalFinanceCanada “is it even worth saving money while you’re young?”
This is a GREAT question. The quick answer is YES!
There were few good responses that covered the three main reasons why saving now, even on a lower income, is still the right thing to do.
Let’s review the three reasons why saving while you’re young is so important…
Children are expensive. There are the obvious expenses like day care, clothing, food and diapers. Then there are the not so obvious expenses like owning a larger home or a larger car.
For low and moderate income earners, there is a special benefit called the Canada Child Benefit (CCB) that can help offset some of these expenses.
The benefit starts at a maximum of $6,500/year for each child under 6 and $5,400/year for each child between 6 and 17.
These amounts get reduced as soon as a family’s taxable income passes $30,000. For someone with two children under 6 the benefit disappears entirely once the family income crosses $207,000.
Because the child benefit gets clawed back for each incremental dollar in taxable income. It works essentially the same as a tax rate. Except its effect is slightly hidden.
A lot. That’s how many.
Last year 64% of millennials said that they feel stressed about their finances!*
Financial stress impacts us more than any other stress factor. More than our family, more than our health, more than our job, we stress about money the most.
This isn’t too surprising.
Money is at the center of everything we do. Without money, we can’t survive. In the past, it was possible to get by without money. You could barter, trade, do it yourself. But in the 21st century that’s not realistic. Are you going to build your own smart phone? Everyone needs money.
Because everyone needs money everyone is at risk of feeling financial stress. But it doesn’t have to be that way. Here are five ways to reduce your financial stress.