If you are just starting out, it’s easy to get off on the wrong foot. Being late for school will get you a detention, but being late for a bill will give you a much bigger headache.
Reaching adulthood means a lot of things: being able to sign contracts, voting, and getting tons of credit card offers in the mail. With minimum payments being as low as 1% of the total balance, it can seem like you have found the land of milk and honey once and for all.
For many people, it takes them a lifetime to escape the trappings of credit card debt. Of course, credit cards are not the only thing that determine your credit score, but they are usually the largest pitfall for most people. For people who struggle with credit card debt, most of them don't get past those hurdles until they reach their fifties.
Will you buck the trend?
Instead of getting taken by credit card companies, your money can be working for you with an investment plan. When you are young, the future can seem far away, but a few dollars can make a bigger difference than you realize. Just $50 per month can become $7,900 in 10 years with a modest 5% annual rate of return. If you run the numbers again with a $500 per month contribution, you get $79,000*. However, if you put it off for 5 years, you are only left with $35,000. That’s the price of procrastination.
Budgeting
For the book The Millionaire Next Door, researchers asked the question, 'Do you know how much your family spends each year for food, clothing and shelter?'...
Buying a Home
Buying a home is often viewed as the single most significant financial event in the life of a Canadian family...
Buying Insurance
There are several different types of insurance services that young adults should consider from property insurance, to car insurance, health benefits and life and other insurances...
Financial Plan
Many people will offer you advice on which investments to buy. But there's more to your financial life than your RRSP. Estate taxes, income taxes and education funds for your children are just some of the other...
Managing a Credit Card
Excessive debt is the biggest stumbling block between most people and their financial success...
Tax Free Savings Account
The TFSA is a registered savings account that allows taxpayers to earn investment income tax-free inside the account. Contributions to the account are not deductible for tax purposes, and withdrawals of...
*The rate of return listed is for illustrative purposes only. Actual results will vary, perhaps to a material degree.
