November is Financial Literacy Month, an initiative by the Feds to improve financial awareness among Canadians. A number of bloggers recently published their best financial tips. Many of you are already financially successful and many are just starting out. Let's hear from the ones who've been there and done that. What is your single best financial tip?
A friend of mine was telling me how it took almost her entire family to convince her brother-in-law [recent immigrant], that he could not afford the house that he was entertaining buying. The reason why he had been in a rush to buy, was because co-workers had convinced him that it could be done based on his salary/down payment amount [because they had done it too].
Anyhow, he ended up agreeing with his family, but consoled himself by buying an expensive car instead. :rolleyes2:
On October 30th, I celebrated my 3rd year as a DIY investor, so I have not personally been doing it that long [others have done it for me], but my single advice, especially for the 20+ group, would be to start investing & paying debts early; the latter could be your best investment of all!
I expect a lot of the advice here is going to be similar. One thing I will offer that is not directly 'financial advice' but can definitely have a big impact on one's financial future is to make a point with networking with people. I made it a new years resolution of mine to try to be more proactive in meeting people and building connections that might be useful in the future, and to invest more energy into strengthening the relationships that I already have. As a bit of an introvert this is a challenge for myself but I think it is important.
I guess a corollary to that would be, figure this stuff out early enough in life so that you don't inadvertantly choose a partner with whom you are financially incompatible.
I made quite a nice return off of my previous mutual funds. That statement is very subjective and does not apply in all situations or to all investors.
My advice would be to have discipline. If you don't have it, you'll never succeed no matter what you do.
Harold and MG: yours are good ones. Most of this type of advice is self evident that everyone is aware of but not many follow. Really not very useful as a result.
Start saving early in life ,no amount is too small.I remember my first RSP contribution was $25 a month.
Tip #2 never co-sign a loan for anyone and if you need a cosigner you cannot afford what you are trying to finance!
Hmm... one that hasn't already been mentioned yet...
When you're young, (and have little savings) the biggest threat to your household's welfare (aside from profligate spending habits) is the loss of you and/or your spouse's ability to earn income. Don't ignore long-term disability insurance and accident insurance, particularly if you are offered these through a workplace benefit package.
My best tip: don't be lazy. Learn as much as you can about managing your financial affairs. It's probably one of the single most important life skills in determining your long term success. It's worth investing some time.
Always be vigilant and lookout for scams, don't fall for get rich quick schemes. If something sounds too good to be true, it almost certainly is. Remember the saying "a fool and his money are soon parted" (I think that was a movie).
Don't sweat your investments when you are young. Leave them on auto-pilot. Focus on advancing your career. Your career is your most important investment.
Stop drinking. (and this is coming from a bartender!)
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