This edition copyright 2019 Cormorant Books Inc.
Second edition, 2019.
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Disclaimer: Financial rates and regulations are constantly changing, so readers are advised to seek the advice of a financial professional to ensure that suggested strategies in this book are appropriate to their individual circumstances. All rates and calculations are current to September 19, 2018.
CPA Canada and the author do not accept any responsibility or liability that might occur directly or indirectly as a consequence of the use, application or reliance on this material.
The publisher gratefully acknowledges the support of the Canada Council for the Arts and the Ontario Arts Council for its publishing program. We acknowledge the financial support of the Government of Canada through the Canada Book Fund (CBF) for our publishing activities, and the Government of Ontario through Ontario Creates, an agency of the Ontario Ministry of Culture, and the Ontario Book Publishing Tax Credit Program.
A Canadians guide to money-smart living / Kelley Keehn.
Originally published: Toronto, on : The Chartered Professional Accountants of Canada, 2012.
Issued in print and electronic formats.
ISBN 978-1-77086-550-1 (softcover). ISBN 978-1-77086-551-8 (html)
I. Finance, Personal Canada.
I . Title.
Printed and bound in Canada.
CORMORANT BOOKS INC.
Contents
Introduction ...
ONE Money 101 ...
The Concept of Money Is Changing ...
Lifetime Earnings Really Add Up ...
Why? Why? Why? ...
Take Control of Your Money ...
Make the Effort ...
Life Is Not Elsewhere ...
Positive Decisions Are Empowering ...
.I Can Do This ...
.Spend Less Than You Earn ...
.Pay Yourself First ...
Prioritize ...
Dont Let Them Trick You with Numbers ...
Top Five Excuses for Not Getting Started ...
.I dont have time ...
.Im not smart enough ...
.My spouse will look after me ...
.I will be taken care of in my retirement by the government, my company pension, a lottery win, an inheritance, etc. ...
.Its too late for me to change ...
Banish Negative Thoughts ...
.Shame ...
.Guilt ...
.Embarrassment ...
Change Old Habits ...
TWO The Plan ...
What Do Apples and Sit-Ups Have to Do with Wealth? ...
A Comfortable Life Is the Goal ...
Everyone Needs a Plan ...
Pay Yourself First ...
Save a Percentage of Your Gross Income ...
Pay Your Monthly Fixed Costs ...
The Budget Diet ...
The Budget Diet Step : Track Your Spending ...
The Budget Diet Step : Categorize Your Spending ...
The Budget Diet Step : Crunch the Numbers ...
The Budget Diet Step : Trim the Fat ...
Budgeting Applications ...
Raising Questions ...
Getting Started: The Most Important Step ...
THREE Simplify Your Life: Manage and Declutter ...
Keeping Good Records Helps You Achieve Financial Success ...
Getting and Staying Organized ...
Step : Start a Filing System ...
Step : Monitor Your Electronic and Paper Mail ...
Step : Contact Information ...
Two Distinct Types of Records That Must Be Kept ...
Permanent Records ...
Temporary Long-Term Records ...
Temporary Short-Term Records ...
Records You Should Destroy ...
FOUR Important Financial Conversations ...
Talking with Your Spouse or Partner ...
The Six-Step Conversation ...
Step : What Are Our Goals? ...
Step : Needs and Wants List ...
Step : Where Are We Now? ...
Step : How Are We Going to Get to Our Goals? ...
Step : Make Changes ...
Step : Take Action and Get Help ...
Talking with Your Kids ...
Learn While You Teach ...
Talking with Your Parents ...
Talking with the Professionals ...
Important Issues to Discuss with Your Financial Planner ...
With Keith Costello, President and CEO of the Canadian Institute of Financial Planners
Important Issues to Discuss with Your Lawyer ...
With Yolanda Van Wachem of McLennan Ross LLP
Important Issues to Discuss with Your Life Insurance Agent ...
With Greg Pollock, President and CEO of Advocis, The Financial Advisors Association of Canada
Negotiating Outside the Family ...
Disputes ...
FIVE Understanding Your Mortgage ...
My Gut Reaction Test ...
Terminology ...
Mortgage ...
Amortization ...
Term ...
Variable-Rate Mortgage ...
Fixed-Rate Mortgage ...
Your Biggest Expense ...
Mortgage Payments ...
Canadian Home Ownership ...
Paying Down the Mortgage ...
Preparing to Buy ...
Insurance ...
Title Insurance ...
Homeowners Insurance ...
Mortgage (Life) Insurance ...
CMHC Mortgage Insurance ...
New Canadian Mortgage Rules ...
How to Buy a House ...
Using Your RRSP for a Down Payment ...
Contribute to an RRSP or Pay Down the Mortgage? ...
SIX Managing Your Cash, Credit Cards and Other Debt ...
Cash ...
Keep Some Cash in Your House ...
Household Debt ...
Rising Consumer Debt ...
Just Managing Your Debt Is Not Enough ...
Credit Cards ...
Always Carry a Major Credit Card ...
The Dangers of Department Store Cards ...
Just Applying for Credit Can Hurt Your Credit Score ...
How Many Credit Cards Should You Have? ...
Are Rewards Cards Worth the Hype? ...
Pros and Cons of Rewards Cards ...
Should You Worry about Fraud and Theft? ...
Lost or Stolen Cards ...
Credit Card Protection ...
Debit Cards ...
The Cost of Using Debit Cards ...
Emailing Money ...
Online Shopping ...
Other Debt ...
Loans ...
Line of Credit ...
Consolidation Loan ...
Leasing ...
Dangers of Consumer Debt ...
Get Some Credit Even When You Dont Need It ...
SEVEN The Importance of a Good Credit Score ...
Why Credit Is Important ...
Get to Know Your Banker ...
Check Your Credit Report Regularly ...
How to Get a Copy of Your Report ...
By Mail ...
Online Instantly ...
Understanding Your Score ...
What Does Your Score Mean for Your Credit Rating? ...
What Information Is on Your Report? ...