2 June 2014
By Sheryl Smolkin
Summer weather has finally arrived in my part of the world, so fingers crossed that it lasts longer than a weekend! It’s certainly more tempting to head outside than comb the internet for interesting personal finance advice, but I have still managed to pull together some good reads for you when you finally get tired of reading lighter fare poolside.
In We Who Are About To Die, Etc, ex-banker Sandi Martin reminds us that in every relationship there is one spouse who handles the finances and one who does not. Therefore it is important to have a disaster plan plus a comprehensive list of passwords, bank account details and other important financial information easily available to both partners in the event that the unthinkable happens.
Mark Goodfield, the Blunt Bean Counter warns that just because you read personal finance blogs and have become a Do It Yourself (DIY) investor doesn’t mean you should also be Do It Yourself Accountants and Lawyers. He highlights some tax and legal mistakes DIYs often make because they have read general articles that just skim the surface of complex issues.
Tim Stobbs turned 36 this month so on Canadian Retirement: Free at 45 he shares 36 Lessons on 36 Years. My top 10 favourites are:
- Spend less than you earn.
- When in doubt, start saving. You can figure out the rest while you go.
- Keep your regular monthly expenses low and spend money instead on one off items.
- Savings shouldn’t stop you from having a life, It should help you have one.
- Don’t worry what others think, be yourself and you will be happier.
- Even when you fail, you still learn something.
- Live in the now when you can. Embrace the moment.
- Remember to tell others you love them.
- You need 10,000 hour of practice to be great at something. So start now.
- You always need to like one part of your job, if not find a new one.
The frugal trader on Million Dollar Journey once again tackles the million dollar question: How Much Do You Need to Retire in Canada? He says figuring out how much you need is pretty much a four step process:
- Work out a budget of expected expenses during retirement.
- Calculate how much the government will provide you during your retirement years. You can use the Canadian government calculator here.
- The difference between 1 and 2 is how much income from savings (and/or company pension) that you will need.
- Take the number calculated in step 3, and multiply by 25. That is the amount you will need to have saved. If you have other sources of income, like from company pensions or rental properties, then reduce step 3 by the other income amounts, then multiply by 25.
And finally, Gail Vaz-Oxlade discusses setting ground rules for boomerang kids. She says they should make a financial contribution to the household if they have a job even if you eventually give them the amount back to by a house. Otherwise they will get used to having a disposable income they can never hope to have again. The exception is if they are putting every extra payment into re-paying their student loans.
Do you follow blogs with terrific ideas for saving money that haven’t been mentioned in our weekly “Best from the blogosphere?” Share the information with us on http://wp.me/P1YR2T-JR and your name will be entered in a quarterly draw for a gift card.