Tag Archives: retirement planning

Tips to Avoid My 5 Personal Money Mistakes

Depressed and stressed university student. CREDIT: Janine Wiedel/Getty Images

Finances can be confusing to many young Canadians across British Columbia–and stressful, I know this personally. It is never easy admitting mistakes we might have made in the past, especially when it comes to your money and spending–but it is the only way you can really transform for the better. Now, it is common to make money mistakes in your 20’s and 30’s, and even sometimes into your more mature years–definitely if it’s about investments gone awry. Hopefully our tips we share with you here will help you to avoid any and all types of financial blunders throughout every phase of life. It would be helpful, wouldn’t it?  Please read on for some of the most common, and easiest financial mistakes people make daily.

Financial Mistakes That Are Totally Avoidable

Remember, there are unique financial mistakes for different phases of life, some more critical than others even. For example, when you’re 18 you don’t think much about how you’re spending money, but it can have an impact. However this isn’t as detrimental as it would be when you’re at the age of saving for retirement. Something to think about, right–because really, you’re never too young to start saving. Let’s look a bit closer at what works and what doesn’t and how you can stay ahead of the financial game!


Mistake #1 Why are you trying to keep up with all of your friends? You don’t need to splurge and spend money like a crazy person just to look cool, this isn’t high-school anymore! Looks can be extremely deceiving, so don’t fall into the trap you’re trying to avoid.

Mistake #2 Lose the reckless attitude about managing your money because you’re young. It’s all too common. You think that you don’t have to worry about managing and saving your money properly because you’re just a college student. Well, think again. Developing the right mindset about money when you’re young helps you better manage it when you REALLY need to!

Mistake #3 Don’t go into credit card debt! Too many college students go into debt to pay for college, or to get by while a student. Many creditors take advantage of young people during this time, so try your best to avoid credit cards and other high interest loans. These money mistakes can have long-term consequences.

Mistake #4 Don’t spend too much on a car! Going into large debt for a car can be a college students biggest mistake. If you can save the money for a good running vehicle, a few years older, it will be the best solution for you. This will help you avoid the stress of making a car payment month after month.

Mistake #5 An inability to start a budget can cause financial stress when you don’t need it. You’re never too young to begin keeping track of what you spend and where your money goes. You should plan and document all of your transactions, finding ways to mend holes and begin putting money aside for that possible rainy day.

Stanford University students listen while classmates make a presentation to a group of visiting venture capitalists during their Technology Entrepreneurship class in Stanford, California March 11, 2014. Stephen Lam/Reuters (UNITED STATES - Tags: EDUCATION) - RTR3QTMX

Saving Or Investing: What Is Right For Canadians?


You have to weigh what is going to give you the best return for your financial future.  If you have a great job, good benefits, and an excess in funds, perhaps investing some of that excess is right for you.  However, if you work a traditional job and have very little left over after bills and other necessities–saving that extra might be the smarter choice.  60% of Canadians appear to be saving more for their retirement, in comparison to others who are choosing investing.  Remember though, some Canadians don’t have enough money left over to do much of anything with, but this can be changed too.

BlackRock, a well known global investor recently polled 2000 Canadians and 52% of those saving for retirement were between 25 to 34 years of age.  Older Canadians are saving for retirement as well, but out of these groups, none are really saving wisely, or seriously weighing in on investment plans.  When it comes to investing, it seems that a lack of investment knowledge is the problem.

Below, you’ll find various considerations to make when it comes down to choosing to save or invest.  It is important to point out that age is one of the primary reasons for so many Canadians not going the investment route.  It is seen as too risky.  However, if you invest in what you know, what you’ve researched, and what seems almost certain to give you a return–you’ll find this is the wise decision!  The below tips will possibly help you find some solid footing when you’re debating what is right for you.

Tips To Help Canadians Make The Right Financial Choice

Red car over a lot of dollar bills

  1.  A middle-class Canadian couple should begin by crunching their numbers and determining what it is they are going to need to have a comfortable retirement.  If they are already in the income bracket of $42,000 to $72,000 should easily be able to invest and still have a nice nest egg for retirement at the same time.  So, again, beginning to analyze finances is the first tip that should dramatically make a difference.
  2. Weigh in on low interest rates and consider inflation!  These are critical key factors when you’re trying to choose between saving and investing.  What is going to give you the better return, and what is going to secure your retirement comfortably?
  3. You do need to consult with a financial adviser if you’re not meeting your target goals!  Too many think it would be a waste of time, but the fact is only 38% of Canadians utilize a financial adviser, which is a huge mistake.  This is especially true when looking at the economic disappointments so many feel burdened by.
  4. Pay attention to your personal economy!  This is often overlooked–more to the point, commonly overlooked. The economy can tell you a lot about what direction to go in financially.  So, think about your job, your earnings and where you want to be in 20 years!

Are You Ready To Retire Or UnRetire?

Is retirement edging ever so closer for you?  The facts are rather simple here.  Researched case studies and surveys across Canada are finding that there are more Canadians who are ill prepared for retirement and who are on the fence about retiring versus un-retiring.  There are some Canadians who would prefer to work as long as they can, which is quite acceptable.  More to the point, there is a mass amount of Canadians who simply can’t afford to retire, so they look into what is now known as: unretiring.  For over half of Canadians, unretirement seems to be the major possibility, because not all have had the ability to save the way they needed to.


According to the latest statistics, 32% of Canadians will be working part-time when they hit 66 and an average of 28% will be working full time.  This includes Canadians within British Columbia and Quebec as well. The bigger question lies in whether or not Canadians are waiting to retire because they don’t want to rest and relax (who doesn’t want that), or because they simply have to keep working to make ends meet? There appears to be more Canadians who are concerned about having enough money to last through retirement.  Living past one’s life expectancy is definitely a reasonable concern to many individuals.

Research is showing that almost 50% of Canadians who are currently retired have this type of financial anxiety, and 46% more say they won’t be able to retire as they’d planned.  According to the newest research put out by Angus Reid, while Canadians should have plenty to look forward to in their golden years, more have the looming worry of shriveling finances on their mind–and going back to work to compensate seems the logical answer for most.  If you plan on retiring you should have a primary and reliable way of financing that retirement.  Let’s look at some areas to consider before retirement age.

Planning For And Financing Retirement:  What Works?


Why is there so much anxiety over retiring in Canada and why are 74% of Canadians anxious about retirement even though they aren’t at that point yet?  Much of this is due to a lack of planning for retirement, economic downturns and dependency on government programs by many too.  In fact 57% of Canadians have stated they plan on financing their retirement through government pensions, but these can be slashed, sometimes forcing Canadians out of retirement. The located survey information listed below shows how numerous Canadians are currently planning to prepare for retirement, some not so reliable and which could be pushing many to working past retirement age.

57% of Canadians plan on funding retirement through Government pensions

53% of Canadians surveyed have invested in employee pensions for retirement

13% of Canadians have made wise investments with high ROI’s to fund for later life

11% of Canadians fund retirement through inheritance funds or through other forms of support

A sad 6% of retiree’s have no other option other than to sell assets to fund retirement and pay for expenses

Ensuring you’re reasonably prepared for retirement would be wise, and having investments you can rely on to ensure you have secondary revenue is simply smart.  While you don’t have to retire at 66, it makes sense some people might want to.  Make sure you establish a retirement plan early on so you won’t have the anxiety and stress many future retiree’s are currently confronting.