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Spending Habits for Canadian Millennial Professionals

Hi All,

In today’s post, I am going to discuss “Spending Habits for Canadian Millennial Professionals”.

My top 3 tips for Spending as a Canadian Millennial Professional are:

1. Only spend on what you need

How do we spend money only for what we need? We dedicate the majority of our funds to necessities.

By spending only on what you need the majority of the time, this will put you in the best position to borrow funds in the future.

2. If you don’t have the money save for it

If you don’t have the money available for what you need save for it.

Saving for what you need versus taking out more money on your credit card and lines of credit will show your lenders excellent repayment history.

Credit is available to those that adhere to financial discipline.

You must be disciplined with your finances and keeping your credit score high to be able to borrow money in the future when the need arises.

The best way to keep your credit score high is to use your credit products seldomly (only when needed) and use your savings and cash the majority of the time for purchases.

3. Spend less than you make

The final tip for Spending Habits for Canadian Millennial Professionals is spending less than you make.

Spending less than you make now is easier said then done, but it will allow you to do more in the future.

Keeping your spending to a minimum below your overall income is very important to your financial future.

Being disciplined with your spending will allow you to invest more of your money to what truly matters to you.

By spending less than you make you will be able to save for:

-Your education

-A vacation

-A Wedding

-Building your own business

-Buying your first home

-Home renovations

Summary

I hope you all enjoyed this post on Spending Habits for Canadian Millennial Professionals.

I feel that this particular topic for my blog post/video series will be very beneficial for Millennials.

Financial literacy is often the last thing people would like to think about but it is essential for your financial health and well being.

Being more educated in your financial decisions will help you be better equipped to make the right choices when the time comes.

If you enjoyed this post, please comment, rate, and subscribe and stay tuned for my weekly blog posts, youtube videos, and podcast episodes.

Cheers,

 

Alex

Content Schedule:

Blog Posts– Wed & Fri each week

Podcast Episodes- Mon each week

Cheers, Alex

Blog:

https://alexandermuir.com/blog/

Podcast:

https://anchor.fm/alex-muir757

Find Me on Social:

https://www.facebook.com/Alex-Muir-Marketing-521328441531919/

https://www.instagram.com/a.muir757/?hl=en

https://www.linkedin.com/in/alex-muir-b55a44149/

https://www.youtube.com/channel/UCkW1z-RObDp8VPJ0NWego-Q?view_as=subscriber

DISCLAIMER:

All information provided by Alex Muir is of a general nature and is spoken from Alex Muir’s personal experiences, and personal opinions on the topics related to fitness, health, and education only. No information is to be taken as medical or other health advice pertaining to any specific health or medical condition. You agree that use of this information is at your own risk and hold Alex Muir harmless from any and all losses, liabilities, injuries, or damages resulting from any and all claims.

Saving For Canadian Millennial Professionals | Financial Ed Series Ep.2

Hi All,  In today’s episode, I am going to discuss “Saving for Canadian Millennial Professionals”.  

My top 3 tips for Saving as a Canadian Millennial Professional are:  

1. Set aside 10% for Saving

How do we set aside enough for saving? We make sure that when our paycheque comes in we have 10% or less of our money automatically deposited to a savings account of our choice.  

Preferrably, a Tax-Free Savings Account or Registered Retirement Savings Plan.  These particular accounts will help your $$$ grow tax free either in the short term or the long term depending on your financial goals.  

My personal recommendation on what account to use? Utilize the Tax Free Savings Account the most. This account you don’t get penalized for taking your money out when you need it, and it can grow tax-free while you have $$$ within the account.  

Things to save for in your TFSA:  

College Tuition 

Buying Second Hand Vehicle 

Vacation 

Pet 

The above are just a few examples of things people save for in a TFSA. The reason I don’t recommend an RRSP right away is you get penalized in the short-term to take the money out.  

An RRSP is still a great vehicle to save your money and grow it tax-free, its just not a wise choice in the short-term. RRSP’s are meant for long term saving for things like:  

Retirement 

Down Payment on a House or Condo 

RRSP’s are beneficial for long term saving and also help you save on your taxes at the end of each year. By contributing to your RRSP, you can deduct a percentage from your income taxes each year.  

Once you contribute some funds to the RRSP before the end of the tax year, you can get this money back from the goverment to help you continue to save even more.

2. Don’t Just Save  

Don’t just save for the sake of saving. Saving is meant for you to either invest your money or spend it. Just saving money will not do anything.  

Save for something specific within 5-10 years like some of the examples mentioned above.  

We are in a low interest rate market in Canada and have been for many years now. People don’t make any interest just having money in their savings account.  

It’s what you have within your savings account that helps you make interest and truly grow your savings at a steady pace.  

Some investments to have within your savings account:  Index Fund-Investing in a portfolio of stocks that tracks an index like the S&P 500, Dow Jones, or NASDAQ and is passively managed to help you save on fees Stocks-Investing in different stocks within your TFSA, RRSP, or Investment Savings Account Mututal Fund-Pool of Investors $ put towards a certain type type of fund with several different types of stocks within them

3. Open a No Fee Bank Account  

The final ingredient for your saving money is opening a no fee bank account.  

No Fee Bank Accounts are becoming very common now adays. By saving on banking fees, you will be able to put more of this money to saving for the things that you want.  

Some people pay up to $150 a year in banking fees and that is crazy! That money is better in your pocket than the banks.  

The key with saving is minimizing your fees and expenses overall. Having a bank that charges you no fees or little fees will help you with your finances in the long run.

Video source missing

Mortgages for Canadian Millennial Professionals

Hi All,

In today’s post, I am going to discuss “Mortgages for Canadian Millennial Professionals”.

My top 3 tips about Mortgages are:

1. Find a great Mortgage Advisor

In order to find a great mortgage advisor you should search for ones at banks and through mortgage brokers.

If you can get approved through a bank, this is the best case scenario and when you go to renegotiate your mortgage in the future sometimes banks are easier to stay with since your already with them.

Mortgage brokers are very flexible, less stringent, and will most likely be able to find you some excellent rates. They shop around through other banks and brokers for the best rates.

Banks are good when you are with them but sometimes their rates are a little higher than mortgage brokers since they are only getting rates for their clients through one institution. Also, they are more stringent and are much harder to get approved through.

2. Shop around for a great rate

By doing your own research and finding where the best rates are, this will save you a ton on your entry into the housing market.

Like tip number one above, you want to use your current mortgage advisor through either a bank or broker and get them to shop for the best rates for you.

As far as being competitive, its going to be tough to get lower rates than mortgage brokers since they shop around for their clients by getting rate quotes from hundreds of different lenders.

The banks can only compete amongst themselves for great rates for their clients since they are the only lender. Occasionally there rates could be lower than the mortgage brokers if other banks have dropped their rates first.

3. Utilize your savings for down payment

Saving for your down payment can be done in a variety of ways. Most people have a portion of their earnings from a non-registered savings account, Tax-Free Savings account, Registered Retirement Savings, Stocks, Index Funds, or Mutual Funds or Gifted Funds from a family member or friend.

I utilized my bank stock from working at the bank as the majority of down payment as a first time home buyer. When you apply for your pre-approval, banks prefer dealing with someone that has down payment mostly in cash.

If you are using your down payment in the form of a loan or line of credit, keep in mind this debt is added to your overall debt for when the banks or mortgage brokers calculate your debt to service ratio.

The banks and mortgage brokers use a risk assessment that has several areas they look for in great mortgages:

  1. Great Repayment History
  2. Good or Excellent Credit Score
  3. Good or High level of Income
  4. Low Level of Debt 35% or less of your overall income

Summary

I thank you all for watching and hope you gained some valuable insight into how to handle the unexpected that life can throw at you sometimes.

If you enjoyed this video be sure to like, comment, and subscribe to see my upcoming weekly content on my blog, youtube, and podcast. Let me know in the comments section your thoughts and what kind of content you would like to see next.

Content Schedule:

Blog Posts– Wed each week

Podcast Episodes– Mon each week

Cheers,

 

Alex

Blog:

https://alexandermuir.com/blog/

Podcast:

https://anchor.fm/alex-muir757

Find Me on Social:

https://www.facebook.com/Alex-Muir-Marketing-521328441531919/

https://www.instagram.com/a.muir757/?hl=en

https://www.linkedin.com/in/alex-muir-b55a44149/

https://www.youtube.com/channel/UCkW1z-RObDp8VPJ0NWego-Q?view_as=subscriber

DISCLAIMER:

All information provided by Alex Muir is of a general nature and is spoken from Alex Muir’s personal experiences, and personal opinions on the topics related to fitness, health, and education only. No information is to be taken as medical or other health advice pertaining to any specific health or medical condition. You agree that use of this information is at your own risk and hold Alex Muir harmless from any and all losses, liabilities, injuries, or damages resulting from any and all claims.

Budgeting for Canadian Millennial Professionals | Ep. 1

Hi All,  In today’s episode, I am going to discuss “Budgeting for Canadian Millennial Professionals”.  

My top 3 tips for budgeting as a Canadian Millennial Professional are: 

 1. Dedicate 50% of your Paycheque for Bills  

How do we set aside enough for bills? We make sure that when our paycheque comes in we dedicate the majority of it to our bills.  Unexpected expenses can arise month to month but by being more prepared we can ensure our living costs are covered.  Living costs like:  Rent Food Internet Hydro Now personal expenses will vary from person to person but keep in mind that it is a good practice to reserve 50% or more if you need to for your bills.  

2. Dedicate 30% towards your Wants  

After you have set aside the majority of your post tax income for your bills and your account is not left short, you may then dedicate the next portion of your money towards your wants.  Now for your want money, I would still be conservative for how much you spend in this category but give yourself a 20-30% threshold for “fun money”.  By fun money I mean the money you can use for:  Going out to eat Seeing a movie Buying new clothes Buying a new book Going for a weekend adventure The above are just some examples for fun money options but again these will vary from person to person.  Each month, everyone will want to do different things outside of work. Fun money, as I like to call it, is a good verb for it because these activities are usually fun.  By allowing room in your budget for fun money, you will be more inclined to stick to your financial goals and this helps you feel good.  

3. Dedicate 20% towards Investing  

The final ingredient for your overall budget, is investing.  Investing is the final piece in your budget because you need to ensure you have your bills taken care of first.  Second, you enjoy some of your budget with some fun money spending on things you enjoy doing or experiencing.  Lastly, you dedicate a small percentage of your budget let’s say 20%, towards some sort of investment for your financial future.  Some investing options could include:  Stocks Real Estate Building your own Business Summary  I hope you all enjoyed this post on budgeting for Canadian Millennial Professionals.  I feel that this particular topic for my blog post/video series will be very beneficial for Millennials.  Financial literacy is often the last thing people would like to think about but it is essential for your financial health and well being.  Being more educated in your financial decisions will help you be better prepared to make the right choices when the time comes.  If you enjoyed this post, please comment, rate, and subscribe and stay tuned for my weekly blog posts, youtube videos, and podcast episodes.  Cheers,     Alex  Content Schedule:  Blog Posts- Wed each week  Podcast Episodes- Mon each week  Cheers, Alex  Blog:  https://alexandermuir.com/blog/  Podcast:  https://anchor.fm/alex-muir757  Find Me on Social:  https://www.facebook.com/Alex-Muir-Marketing-521328441531919/  https://www.instagram.com/a.muir757/?hl=en  https://www.linkedin.com/in/alex-muir-b55a44149/  https://www.youtube.com/channel/UCkW1z-RObDp8VPJ0NWego-Q?view_as=subscriber  DISCLAIMER:  All information provided by Alex Muir is of a general nature and is spoken from Alex Muir’s personal experiences, and personal opinions on the topics related to fitness, health, and education only. No information is to be taken as medical or other health advice pertaining to any specific health or medical condition. You agree that use of this information is at your own risk and hold Alex Muir harmless from any and all losses, liabilities, injuries, or damages resulting from any and all claims.

Video source missing

Loans & Lines of Credit for Millennials

Hi All,

In today’s post, I am going to discuss “Loans & Lines of Credit for Canadian Millennial Professionals”.

My top 3 tips for using Loans & Lines of Credit as a Canadian Millennial Professional are:

1. Determine what you need the money for

How do we determine if a loan or line of credit is right for us? We make sure that we know what we will need this money for.

Unexpected expenses can arise every now and again. With the help of a loan or line of credit people can pay off an expense like:

  • A new vehicle
  • School Tuition
  • A trip
  • A wedding
  • Consolidate exisiting debt
  • Renovate your home

Now the above are just a few examples. The main thing to keep in mind is that loans are a one time installment.

This means that once you borrow the money you need and the amount is used up, you will need to re-apply for another loan if you need additional funds.

In most cases, you can borrow up to $50,000 for a loan since loans are unsecured that is the max that the majority of banks set for their loan amounts.

Conversely, a line of credit is a very nice option since you can reuse the funds as much as you like. You don’t need to re-apply if you need additional funds, you would just ask to increase your line of credit.

2. Determine the type of debt you can afford

After you have determined what you need the money for, now we need to figure out whether a loan or line of credit is the best fit.

Now for loans you pay a fixed or variable rate of interest based on your credit score, repayment history, and level of income.

Lines of credit you only pay interest on the money that you use and the interest is determined based on your credit score and the going rate for the bank you applied through which is also known as the bank’s prime rate.

3. Determine if a Loan or Line of Credit is right for you

The final step of my top tips is to determine if a loan or line of credit is right for you. Not all credit products are treated equal. Loans are a one-time installment and can only be applied for once at a time. If you only need to borrow funds once and awhile loans are a great fit.

If you wish to borrow funds on an ongoing basis or just want some funds available for emergency sake a line of credit may be a great fit. You only pay on the balance you use and if you have good credit, repayment history, and level of income you will be in a good position to borrow the funds you need.

The main lesson to keep in mind about credit products is financial discipline. If you don’t need the funds for something important or for emergency sake, only utilize cash. The less debt we carry, the richer we become.

Summary

I hope you all enjoyed this post on budgeting for Canadian Millennial Professionals.

I feel that this particular topic for my blog post/video series will be very beneficial for Millennials.

Financial literacy is often the last thing people would like to think about but it is essential for your financial health and well being.

Being more educated in your financial decisions will help you be better prepared to make the right choices when the time comes.

If you enjoyed this post, please comment, rate, and subscribe and stay tuned for my weekly blog posts, youtube videos, and podcast episodes.

Cheers,

 

Alex

Content Schedule:

Blog Posts– Wed each week

Podcast Episodes- Mon each week

Cheers, Alex

Blog:

https://alexandermuir.com/blog/

Podcast:

https://anchor.fm/alex-muir757

Find Me on Social:

https://www.facebook.com/Alex-Muir-Marketing-521328441531919/

https://www.instagram.com/a.muir757/?hl=en

https://www.linkedin.com/in/alex-muir-b55a44149/

https://www.youtube.com/channel/UCkW1z-RObDp8VPJ0NWego-Q?view_as=subscriber

DISCLAIMER:

All information provided by Alex Muir is of a general nature and is spoken from Alex Muir’s personal experiences, and personal opinions on the topics related to fitness, health, and education only. No information is to be taken as medical or other health advice pertaining to any specific health or medical condition. You agree that use of this information is at your own risk and hold Alex Muir harmless from any and all losses, liabilities, injuries, or damages resulting from any and all claims.