Author Archive for: Advisorsavvy

Rising costs, inflation, and endless desires to attain comfort drive us on a quest for the secret formula to financial freedom. That’s where Grant Sabatier’s 7 levels of financial freedom came in — a roadmap to assess your finances and improve them so much that you can experience financial freedom.Empowering, right? Yet the road there is intimidating. The goal is to feel confident, independent, and secure in your ability to cover your bills, achieve financial goals, and, most importantly: enjoy your life.But how can you overcome high living costs, exorbitant debt interest, and everything else eating at your wallet day and night? We’re here to tell you that whether you’re looking to pay off debt, save for a vacation, or build wealth, financial freedom is within your reach. A great starting point is hiring a financial advisor to help you lay out your finances, budget, goals, and strategy. But for now? We’ll walk you through a few principles for financial

If you’ve ever wondered how market prices are determined or how a product’s supply matches its demand, there’s an answer. The laws of supply and demand shape almost every interaction in the consumer market.You might be thinking this isn’t relevant to you as a personal finance connoisseur, but aggregate economics actually affects all of us. When there are shifts or fluctuations in supply and demand, it trickles down to our individual wallets. Everything is interconnected, so understanding how something works at the top can help you make decisions at the bottom. In this article, we’ll explore these laws of supply and demand and understand how they affect the different players in the market. How do you explain supply and demand? Supply refers to the ability of the market, or better yet, the producers, to manufacture a good or service. Demand refers to the quantity of commodities consumers are willing and able to buy at a certain price. Supply and demand

In Canada, we’re fortunate to have access to an array of shared services and benefits. One of these benefits is the GST/HST credit. In a nutshell, the GST/HST credit is provided to low to moderate income families to offset the cost of sales taxes. If you’re anticipating your credit, but don’t know when it’ll hit your bank account, read on further. We’ll cover everything you need to know about GST/HST payment dates below. What is the GST/HST credit? The GST/HST credit is a benefit offered by the Government of Canada to low to moderate income families. The reason behind the benefit is to help those lower income families offset the cost of sales taxes in Canada. GST stands for ‘goods sales tax’ and HST stands for ‘harmonized sales tax’. Depending on where you reside in Canada, you’ll be charged one or the other. For instance, Ontario has HST, but Alberta has GST. The rates and taxable supplies are governed at

Many Canadians agree the cost of living in Canada is expensive. This is true if you rent or own your home. However, owning a home and putting money towards a mortgage is generally favorable because you can establish and build generational wealth that way. The question becomes, what is the average cost of a home in Canada? We will answer this question in the article below, including highlighting all costs involved in home ownership and other characteristics of the Canadian housing market. What is the average price of a house in Canada 2023? As of March 2023, the average cost of a home in Canada was $686,371, according to the Canadian Real Estate Association. This is down 13.7% since last year. Below are the averages by province and territory: Province/Territory Average Cost of Home % Change Since Prior Year British Columbia $960,067 -11.7% Alberta $446,263 -4.6% Saskatchewan $321,400 -0.6% Manitoba $338,022 -11.2% Ontario $881,946 -16.4% Quebec $471,460 -3.6% New Brunswick

Ever buy those scratch card crosswords at the subway? You’re not the only one. The odd time you might win a cheeky $20, which you exchange at the stand like nobody’s business.But how much do you need to earn before it is somebody’s business? Say you win $1,000 or $100,000, or even $1,000,000. At which point does the government get involved, and how much do you owe in taxes?And are lottery winnings taxable in Canada? Of course, you can find out this answer and much more in the average financial advisory meeting. That’s why Advisorsavvy exists — to connect you with financial advisors and improve your wealth, financial habits, and future. But for now, we know you just want Cole’s notes. Keep reading to understand lottery winning tax laws in Canada. What happens when you win the lottery in Canada? If you win a hefty lottery amount, a few things will happen. First, you’re allowed to celebrate. Take your family away

Paying off a mortgage early in Canada can be an immense financial milestone for many. After all, the journey of fully owning a home can take a lifetime. However, early repayment on a mortgage isn’t as simple as paying the balance. Often, banks have certain conditions surrounding early repayment. In addition, there are considerations for your credit score and other aspects of your personal finances. In this article, we will answer these important questions. Then, suggest tips to help you avoid making the common mistakes related to paying off a mortgage early in Canada. What are the Pros and Cons of Paying Off a Mortgage Early? At surface level, paying off a mortgage early in Canada might seem like a great idea. But there are some drawbacks to consider too. While making this payment and getting it off your chest may be tempting, is it the best for you? Below, we consider some pros and cons of paying off a

Gross income vs net income in Canada is often not the same number. So what is the difference? At a high level, gross income is the total amount you earn before taxes and other source deductions. Whereas net income is the amount you earn after accounting for taxes and deductions. Understanding the differences between these two terms is important because it can affect other areas of your personal finances. In addition, taxes are quite high in Canada so gross income vs net income in Canada can be radically different. Ready to learn more? Continue reading! What is the usual difference between gross income and net income? As we mentioned earlier, when you earn money, some deductions occur before you take home what’s left. These deductions could be taxes, benefits, union dues and so on. For the purposes of this article, we’re referring to employment income. Usually self-employed individuals are paid gross income and it’s their responsibility to track and remit

For most, maternity leave is a time to focus on your child’s first year of life. This is often demanding, especially for new parents. In addition, many cherish the time away from work and other adult obligations to focus on this new milestone in their life. But with that said, everyone navigates parenthood differently. Some may be motivated to make money, possibly out of necessity. Alternatively, it could be a way to stay in touch with the “real world” and not become insular during maternity leave. In this article, we’ll explore how to make money on maternity leave in Canada. This will include the limits surrounding earning money on maternity leave and ideas on how to actually bring in some extra dollars. Continue reading to learn more! Can I earn money while on maternity leave in Canada? The answer is it depends. If you are not claiming maternity or parental benefits, then you are free to earn as much money

Financial freedom is one of the most talked-about topics. We all joke about winning the lottery tomorrow and what we would do with all that money. What most people certainly wouldn’t do is go to work! Sadly, many have yet to experience true financial freedom. But maybe if they knew the 10 steps to financial freedom, we would all be living our dream life. If you’ve always dreamt of a kind of life where you don’t have to worry about money or go to work to pay the bills, it’s absolutely possible. Financial freedom is beyond a nice theory. Anyone can achieve it by taking the right steps. In fact, part of achieving it is learning the correct definition of financial freedom, which we will also explore in this article. Do you want to become financially independent? We’ve shared the 10 steps to financial freedom in this article. Continue reading to learn more! What is financial freedom? Before we explore

The past few years have been tumultuous for Canadians in more ways than one. Inflation has been a phenomenon that individuals and households across the country have experienced. But what exactly are the different types of inflation? Turns out, inflation isn’t a simple formula and there are a variety of ways to measure and assess it. For instance, it can be understood using principles of supply and demand, but it can be measured using the Consumer Price Index (CPI). Ready to learn more? Continue reading to understand the ins and outs of the various types of inflation. What is inflation made up of? Inflation is defined as an increase in the prices of goods and services that households commonly buy. For instance, food, gas, and childcare are captured in these types of goods and services. On the contrary, deflation has the opposite effect. It is defined as the decrease in the prices of goods and services that households routinely buy.

The fluctuating global economy has made the issue of recession vs depression relevant. It is important to make a clear distinction between these terms. This will help determine how a country’s economy stands against other nations.Below, we will first analyze the concept differences between recession vs depression. Then, explain how to identify and navigate them. If this is something you’re interested in, let’s start! How is recession different from depression? The first thing to note about a recession is that it is an economic downturn. It triggers a country’s Gross Domestic Product (GDP) to run in the negative, usually over several quarters. This results in lower employment rates and unstable prices for longer than a few months. A depression, on the other hand, is a prolonged version of a recession that brings about more harmful effects. It typically arises whenever a country’s GDP suffers a sharp decline which continues for a prolonged period of time, normally over numerous years. Then,

As the popularity of cryptocurrencies continues to rise in Canada, so does the need for efficient reporting of tax on crypto. Using the best crypto tax software in Canada can be a valuable tool in helping individuals and businesses. Crypto tax software helps you keep track of your crypto transactions, plus any gains or losses. Also, you can calculate your tax liability and generate accurate tax reports. With so many options available, choosing the best crypto tax software in Canada can be a daunting task. Pricing and the ability to handle multiple types of cryptocurrencies can all play a role in the decision-making process. In this article, you will discover the best crypto tax software available in Canada. By the end of this article, you can make an informed decision about the best software to use for your needs. Crypto Taxation in Canada: A Brief Overview Cryptocurrency is a relatively new technology. For this reason, it took a little while

Wondering how to survive inflation and all the challenges that come with it? Then you’re in the right place. About 40 percent of the world’s population is burdened with rising inflation. In addition, Canada’s inflation rate is currently 5.9%, as of January 2023, which is well outside of the usual 2% benchmark. If you’re one of the people burdened with inflation, don’t worry! We’ve got you covered with seven pro tips. You might be asking yourself, what happens when your favourite pizza that was $1 becomes $3.50? Or what happens if the cost to fill your tank is astronomically more expensive than it was a few years ago? What’s more? How do you keep up with mortgage payments when interest rates are rising to cool inflation? These and many more questions may plague you, especially when you have a family to care for. If there’s any chance these thoughts have crossed your mind, worry not. This article will guide you

In Canada, there are three main sources of income available to Canadians in retirement: Canada Pension Plan, Old Age Security (OAS) and of course, Guaranteed Income Supplement (GIS). You can plan to take advantage of this benefit, or tell your parents and older relatives about it so they can partake. If you aren’t sure about the details of Guaranteed Income Supplement in Canada, we’ve got you covered. Everything you need to know can be found below. What is the Guaranteed Income Supplement in Canada? The Guaranteed Income Supplement in Canada is a government benefit added to the Old Age Security program. It is only meant for older Canadians with low incomes. What’s more? Suppose your spouse is deceased, you still have an opportunity to enjoy the GIS benefit. The two allowances for spouses under the GIS benefits include: Let’s look into both briefly. Allowance Benefits Allowance benefits are for those whose spouses or common law partners are currently receiving the