Thank you for joining the waitlist!
You’re on the list for early access!
We will contact you via email when we’re ready for you to start your self-directed financial plan. In the mean time here is a quick preview…
Check out our latest blog posts…
How To Immunize Yourself From Rising Interest Rates
Interest rates are going up and that’s putting a squeeze on anyone with debt. Whether it’s a mortgage, student loans, or a line of credit, you’re about to feel the sting of higher rates. We’ve had unprecedentedly low rates for almost 10 years now and forecasters have repeatedly called for higher rates, and it seems that they’re finally right.
The Bank of Canada just increased their rate again making this the 4th increase in the last 12 months. That increase means we’re being charged an extra 1% interest on variable rate debt versus last year. It also means any we’ll be charged an extra 1% on any new fixed rate debt. On a $350,000 mortgage that’s an extra $3,500 per year in interest charges or about $300 per month!
Rising interest rates impact all kinds of financial products. Variable rate mortgages, new fixed rate mortgages, lines of credit, home equity lines of credit and of course, student loans too.
Not only are we paying more for our current debt but rising interest rates also make it more difficult to qualify for a new debt too. Higher rates will decrease the amount of money you’re qualified to borrow. A household earning 80,000 per year will see their home buying budget decrease by $28,000.
There are a few strategies you can use to immunize yourself from the impact of higher rates, at least for a short period of time. From a few months, to a few years, to a decade, these strategies can help you avoid the sting of rising rates.
One Simple Budgeting Trick You Have To Try
Have you ever had a project that just seems to last forever? Or maybe a chore that seems to take all weekend?
You may have never heard of Parkinson’s Law but you’ve probably experienced it. Parkinson’s Law is when “work expands to fill the time available for its completion”.
Simply put, if you have 3 hours to complete a task then it’s probably going to take 3 hours. If you have 3 days to complete a task then it’s probably going to take 3 days. The work expands to fill the time you have available.
Parkinson’s law applies to finances too. Lifestyle inflation is a great example of this. You get a raise and your lifestyle expands to match it. You spending increases until you’ve used up all your raise. Not necessarily because you needed it, not even because you wanted it, but because it was available.
Another good example is lottery winners. Lottery winners expand their spending to match the amount of money they have available. Whether thats $1,000 or $100 million. Lottery winners are notoriously spendthrift and that might be due to Parkinson’s Law (among other factors).
Thankfully you can use Parkinson’s Law to your advantage and if you struggle with budgeting then this is one simple budgeting trick you have to try.
3 Tips For Setting Powerful Financial Goals
The problem with financial goals is that they’re not very tangible. They’re just numbers, they take time, they seem impossibly huge.
When it comes to intangible financial goals it’s very easy to push those goals onto your “future self”.
“That’s not something “Owen of Today” needs to worry about, “Owen of The Future” can figure it out.”
When making money decisions there’s always a bit of tension between your “present self” and your “future self”.
“Owen of Today” wants to make today the best day possible and doesn’t care much about the future, while “Owen of The Future” wants to think about the future, even if that means sacrificing a bit today.
“Owen of Today” wants to buy a motorcycle and ride around the countryside all afternoon, but “Owen of The Future” says we need to save for financial independence, RESPs, and a new roof.
Which version of myself wins? It all comes down to how well I’ve set my goals. Without a powerful financial goal “Owen of Today” will win every time, and that’s not very healthy.
Sometimes “Owen of Today” needs to win, and sometimes “Owen of The Future” needs to win, obviously there needs to be a balance. But without a powerful financial goal “Owen of Today” will win every… single… time…
Setting a powerful financial goal can make all the difference. Setting a POWERFUL financial goal helps you easily weigh decisions between your “current self” and your “future self”.