Author Archive for: Veronica

You’ve likely heard of the term equity, but what does it mean when it’s negative? In basic terms, negative equity occurs when the value of debt is greater than the value of the asset attached to it. As you can imagine, negative equity can be problematic and can impact other areas of your personal finances. If you’re ready to learn more, continue reading to understand what negative equity is and how you can resolve and avoid it. Negative Equity Defined Negative equity is defined as a financial situation where the value of an asset is less than the debt against it. In other words, it’s the opposite of net worth. A common example is with car loans. If you buy a new car with a loan, the car can depreciate rapidly. As a result, the value of the car could drop lower than the balance owing on the loan. However, negative equity can occur with any asset that has debt

Inflation has wreaked havoc on all of our wallets recently. With rents, interest rate hikes, and even the price of groceries skyrocketing, you may wonder if anywhere in Canada is affordable to live anymore — much less enjoy a night out or any sort of entertainment.Should you resign yourself to a no-splurge, no-fun social or family life for the foreseeable future? We’re here to share how you can still have fun while being smart with your money. In this article, we’ll explore 10 cheap things to do this summer in Canada. But before we get into our list of cheap things to do this summer, consider seeing a financial advisor. It’s like extra padding you could use to protect you from getting jerked around by high costs and shallow budgets. Sometimes, we just need a little perspective to plan our budgets — for both necessary expenses and fun expenses. Don’t worry; you can still hit up the movie and buy

In the last few years, something called the vacant home tax has arrived in Canada. As the name implies, this tax is incurred when someone owns Canadian real estate, but it is unoccupied for the bulk of the year. This is another cost property owners have to consider. Fortunately, it’ll only apply if your property is vacant for most of the year. If you live in your home, or rent it out to someone else, then this tax won’t apply to you. Ready to learn more? Everything you need to know about vacant home tax in Canada can be found below. What is vacant home tax? As the name suggests, it’s a tax that arises on homes which are unoccupied for extended periods of time. It’s also being referred to as the empty home tax or underused housing tax. At the time of writing, the vacant home tax is only in effect at the federal and municipal levels in Canada,

At a high level, tax efficiency is the process of paying the least amount of tax possible without breaking any laws. Obviously, we are not advising you to commit tax evasion! Much of this boils down to understanding how taxation works, then acting in a way that minimizes your tax burden. Given that taxes are quite high in Canada, it’s likely that most individuals and families are interested in improving their tax efficiency. Continue reading to learn more about tax efficiency in Canada and how you can apply it to your own personal finances.Furthermore, you can enhance your tax efficiency at any age, which we’ll explore below as well. What is Tax Efficiency? Tax efficiency is the culmination of processes and behaviours executed to pay the least amount of tax while still maintaining compliance with the law. A decision is tax efficient if the tax obligation arising from it is less than an alternative decision. Naturally, we all want to

Tax season is just around the corner! As you gather your documents and prepare your tax software, you are likely thinking about how much you’re going to owe. Or maybe you’ll be one of the lucky Canadians who receives a refund! While preparing for tax season, you might be curious about the combined federal and provincial tax rates. Normally, these are expressed separately which makes it a challenge to estimate and visualize how much tax you owe. In this article, we’ll explain the basics of personal tax brackets and rates in Canada, all combined tax rates, and how you can use this information to enhance your personal finances. An Overview of the Canadian Tax System Canada’s tax system is progressive, sometimes called graduated. This is a fancy way of saying the more money you make, the more tax you will pay. In many ways, having a progressive system is advantageous because it equalizes the wealth of a nation. Although, the

It’s something that is on everyone’s mind right now: what is a recession in Canada? There has been tons of talk about inflation, soaring housing prices, lay offs, and much more about the health (or lack thereof) of our economy. As Canadians, we all want to make sure we are making the wisest investments and consumer decisions in our current economic environment. Unfortunately, there are times when an economic downturn can occur – often referred to as a recession. After all, what goes up, must come down! Let’s take a closer look at just what defines a recession in Canada, how it affects individuals and investors alike, plus ways you can prepare yourself for such an eventuality. Continue reading to learn more! What is the definition of a recession? A recession is defined as a temporary period of economic decline. Trade and other gainful activity slows during a recession. In other words, people lose their jobs, experience a decline or

In modern day society, money is a valuable tool that allows us to achieve life’s greatest objectives. Avoiding personal finance may limit you from being able to buy a home, retire, start a family or go to school. For this reason, personal finance should be considered, including income, spending, saving, investing and debt. In this article, we’ll explore what is personal finance and why is it important. In addition, we’ll cover the basics of personal finance and some tips and tricks to get you started on your journey. What is personal finance? Personal finance is a broad term that encompasses the process of managing your own money at the individual or family level. This includes activities like budgeting, earning income, paying for living expenses and debt, building an emergency fund, investing, obtaining insurance coverage, retirement planning and much more. Personal finance can also be defined by the knowledge, tools and tactics utilized to manage your money. What is a personal

Do you want to watch film and TV show content that follows real financial events or stories inspired by the world of finance? Look no further! We’ve compiled a list of the 10 best finance TV shows and films based on authenticity and unique stories within the financial world. Ready to enjoy a blockbuster with some popcorn tonight? Continue reading to find a film or TV show that suits your taste. What makes a good finance TV show or film? Given that TV shows and films are artistic creations, the answer to this question can vary depending on who you ask. However, we’ve based our list on authenticity and unique stories within the financial industry. In our opinion, a good TV show or film gives insight into what it’s like to be a part of the finance industry for someone who’s an outsider whether it’s real or fiction. Related Reading: How to Invest in Mutual Funds in Canada 10 Best

With tax season just around the corner, it’s important to understand the different types of tax returns in Canada. Each tax return has a different purpose as well as varying inputs to calculate your tax liability. To understand more about which tax returns you need to file and when, continue reading below. What are tax returns in Canada? Tax returns are annual, quarterly or monthly forms used for tax compliance and payment. Inputs, such as income and expenses, determine your tax liability or refund. Most Canadians only file taxes on an annual basis, but it depends on your unique circumstances. Taxation is typically the largest source of income for the government, including in Canada. Financial data and taxes are collected by the government using tax returns. How taxes in Canada work In Canada, taxes apply at the federal and provincial/territorial levels. Before calculating tax, you must determine your taxable income which is the sum of your income less any deductions

Ever avoided looking at a credit card statement after the holidays? Or ignored your skipped TFSA contribution, again? You’re not the only one. Finances and mental health in Canada go hand in hand. Plus, financial stress translates into a host of mental health issues and daily struggles — and money avoidance is only one of them. Doctors have found links to anxiety, depression, and even psychosis when people experience immense financial turmoil. Tack on inflation, rising mortgage interest rates, and skyrocketed grocery bills? Even the middle-class 9-5er is going to feel some strain. Unfortunately, financial stress only worsens if you don’t deal with it. But if you want to avoid the mental health issues that come as a result, building awareness is a great place to start.In this article, we’ll explore the relationship between money and mental health in Canada, as well as how you can take action when you have the money blues. Stats at a glance: How finances

Life’s busy, but we make time for the odd doctor’s appointment — a health check just to make sure we’re alright.But what is a financial health check? A financial health check is similarly essential, yet easy to forget about. Think of it like a check-up on your financial life, from debt and income to spending and budgeting. Here’s a small example: You have a solid roster of streaming and food delivery services to pick from, but you might pay for subscriptions you don’t use as much anymore. Today’s average consumer underestimates their subscription spending by $133! A financial health check would help you catch that before you go years without realizing it. Today, we’ll cover the ins and outs of a financial health check, what to look out for, and how to improve your financial health. What is included in financial health? Financial health encompasses the state of every aspect of your finances. This includes debt, income, credit score, investments,

If you’re approaching retirement, estimating and forecasting monthly retirement income is important. The amount of income you expect to receive impacts your lifestyle in retirement. Many Canadians will receive the Old Age Security, or OAS for short, benefit. Normally this benefit comes into effect when Canadian citizens reach age 65. But how do you determine the amount you’ll receive? In this blog post, we’ll explore what exactly OAS is, the eligibility requirements when it comes to receiving OAS benefits, and how to calculate OAS in Canada. Continue reading to learn more! What is OAS? Old Age Security (OAS) is a pension program run by the Canadian government that provides monthly income to seniors over the age of 65 who meet the requirements. To qualify for Old Age Security, applicants must: To receive full OAS pension payments, applicants must have lived in Canada for at least 40 years after turning 18. Otherwise, applicants will likely receive a partial benefit. The Old

If you’re like most people, you probably don’t want to work forever. If you’re considering ways to invest in your future and retirement, a pension plan is the best option to consider. Pension plans are a long-term investment strategy worth exploring. While they may seem complicated at first, a well-planned pension can provide the financial security required for retirees in Canada to enjoy their golden years without financial stress. In this blog post, we’ll take a look at some of the best pension plans in Canada. By the end, you’ll have a better idea of what pension plan is best for you! What is a pension plan? A pension plan, or fund, is any program or system that provides retirement income. Unfortunately, retirement is expensive and it takes a lot of resources to finance it. This is from both the individual and institutional level. However, it is important that we consider our elder generations and ensure they can live comfortably

Every life event requires time, money, and financial planning to tie everything together.A life event could be anything from buying a home to getting married and starting a family to partaking in a dream vacation. But here’s the thing: your Excel budget sheet isn’t enough to adequately cover financial planning. Plus, personal financial planning looks different depending on your generational status. Don’t know where to start? Keep reading — we’ll cover personal financial planning for baby boomers, millennials, Gen Z, and Gen X. The goal is financial freedom, and personal financial planning helps you get there.Learn more below! What is personal financial planning? Personal financial planning is creating strategies and plans to align your financial scenario with your life goals. It covers everything from day-to-day budgeting, savings targets, investments, real estate, debt management, and long-term desires. Why is learning about personal financial planning important? Learning about personal financial planning promotes overall well-being. For instance, Forbes tells us that financial health

Income varies greatly from person to person in Canada. According to a 2020 study by Statista, the median household income in Canada was $96,220. However, this number can be deceiving as it does not account for the vast wealth and poverty that exists across the country. Some earn well below this amount while others earn well above it which can skew the data. So what is the average annual income in Canada? In order to get a better understanding of how average Canadians fare financially, we need to take a closer look at the data. Read on to learn the ins and outs of average annual incomes in Canada! What is the average annual income in Canada? The average hourly wage for a Canadian household was $36.28 in 2020 for a full-time employee. When you multiply that by 8 hours, the average daily wage comes to $290.20, or weekly it’s around $1,451. Therefore, the average bi-weekly salary is about $2,902

Financial security is important at any stage of life, especially retirement. One of the financial benefits Canadian retirees rely on is Old Age Security (OAS). However, there is a clawback to consider which may reduce the amount of OAS money you receive. So, what is the clawback for OAS? In simple terms, the OAS clawback is a tax that applies when recipients of the benefit surpass a certain annual income threshold. Read on to learn more about the OAS clawback, how it might affect you and what amount of tax you can expect to pay. What is Old Age Security (OAS)? The Old Age Security (OAS) pension is a government-provided monthly income for seniors. To be eligible for the OAS pension, individuals must be 65 years of age or older and legal residents of Canada. The OAS pension is not means-tested, which means that it is not based on the applicant’s income or assets. Rather, your age and residency are