Jun 042013
 

The world of personal finance can be so complex that it cannot be accurately represented with any rules or strict guidelines. This is why it’s so hard to give financial advice. Unless we know absolutely everything about someone else’s finances and personality, it’s nearly impossible to give them proper guidance and tell them what they need (not want) to hear. We can be as honest as humanly possible with our sincerest suggestions, but to think that we know what’s best for them especially if we haven’t been in their shoes, may be a bit vain. SoΒ I believe there is simply no such thing as universal rules when it comes to financial management. Every time we come across one of those “Top 10 Rules to investing,” or “…to get out of debt,” or “…to plan for retirement,” or whatever else, we must look at it as only rough guidelines, and nothing more πŸ™‚

The golden rule is that there are no golden rules.Β  ~George Bernard Shaw

Rules are meant to be broken anyway. I break generally accepted personal finance “rules” all the time, like choosing to pay high bank fees instead of keeping the minimum balance in my account, or buying a car when I still had student loans, or using consumer debt to buy a $2,250 souvenir, or not having an emergency fund, or agreeing to purchase a property when I have no savings. Lately I decided to carry a $5,000 credit card balance, which is arguable another no no in the personal finance community, except I think I can be forgiven this time because my interest rate is only 1.9 percent πŸ˜€

13_06_transferbalancejpg, break all the rules, credit card balance transfer

Once in awhile I get these cheques from my credit card lender, TD. I can use them to spend on anything I wish. This was my last chance to get in on the deal because after this month they will not be sending out any more of these blank cheques :*( Β With no time to loseΒ I wrote $5,000 on one addressed to myself πŸ™‚ and deposited it into my CIBC account. This works out perfectly because I need money for my farmland downpayment so by happenstance I’m now $5,000 closer to buying that property πŸ˜€ There IS a 1% transfer fee, so I paid $50 for this service but I think it’s worth it in the end πŸ™‚

Following mainstream rules like credit card debt is bad, but student loan debt is good, will limit our options to raise capital and create wealth. By being more agnostic to what others say and focusing on our own situations we can achieve so much more πŸ˜€ There’s no such thing as rules, only suggestions.

If I’d observed all the rules, I’d never have got anywhere.”Β ~Marilyn Monroe

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Random Useless Fact:Β 3 – 4 cups of green tea each day can boost your metabolism by 4% which burns 50 to 100 extra calories a day.

Jul 122011
 

1. Make more money than you spend. Continue saving and investing.
2. Make sure your career is interesting and fun to you relative to other jobs. Passion leads to skill which leads to good pay regardless of what industry you choose.
3. Pay off high interest debt, and consolidating your debt.
4. Borrow money to make money. Take advantage of low interest rates. It’s hard to find anyone who has invested in real estate or the stock market indexes for decades and have lost money consistently.
5. Keep your investment fees low to maximize returns. For example consider buying ETFs instead of mutual funds, especially if you live in Canada.
6. Don’t get divorced.
7. Don’t spoil your kids. Support them emotionally, but let them learn the meaning of gratification through hard work by themselves. They will thank you one day when they become independent, and will not feel entitled to ask you for money when you retire.