Debt & Frugality

As Didi says in the novel (Findependence Day), “There’s no point climbing the Tower of Wealth when you’re still mired in the basement of debt.” If you owe credit-card debt still charging an usurous 20% per annum, forget about building wealth: focus on eliminating that debt. And once done, focus on paying off your mortgage. As Theo says in the novel, “The foundation of financial independence is a paid-for house.”

The 2-letter 4-letter Word

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Gignac - Headshot - 2013By Robert M. Gignac

Special to the Financial Independence Hub

One of the things I love about my job is that I get to have interesting and passionate conversations with North Americans regarding money, personal finance and fiscal responsibility. We all have a relationship with money – sometimes it is a good relationship – sometimes not.

I spoke at an event in Victoria, B.C. recently and during the Q&A portion a guest asked the following question: “What is the one biggest thing I can do to improve my financial situation?”

Now, I’m a firm believer that there is no single thing we do that makes us financially successful – it’s the repetition of a variety of little things, done over and over and over that make us successful. I could tell from the way the question was phrased and the rather emphatic index finger in the air as they asked the question – they were looking for “one thing.”

Looking for one big answer

While the silence seemed to hang in the air, an audience of 250+ waited for the answer. I took a sip of water from the glass on the table and hoped they were going to be happy with what I had to say: “There is no one “biggest” thing you can do – but – if you’ll humor me for moment – I’ll share with you what I think the one biggest word is? How’s that?” Continue Reading…

Millennial Blog Wrap: Cheap vs Frugal and Chronic Money Stress

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Beautiful young woman listening to music and having takeaway coffee outdoorsby Helen Chevreau, Hub Staff

This short and to-the-point post from Budget Bloggess is here to quell all our concerns about the millennial generation being frugal. Sure, the word ‘frugal’ may get some flack for its apparent likeness to ‘cheap’, but oh how different the two really are. If you were ever unsure as to whether cutting up your old t-shirts to use as dishrags qualified you as cheap, you can stop worrying. Thanks to Toronto-based Budget Bloggess for putting my mind at ease:  I’m not cheap, I’m frugal.

Have Your Latte

 We’ve probably all been told at this point in our financial journeys about the magical ‘latte factor.’ You know the one:  if we just save the $5 a day we would normally spend on our Starbucks, we’ll be rich before we know it. Of course there’s nothing wrong with this tactic. However, this new post from My Money Counts will definitely help us put that $5 in perspective when compared with the “4 expenses that will steal your savings.” Those being expensive car payments, having too much house, insane student loan debt, and of course, credit-card debt. It is a well-informed look at some of the most common and burdensome factors that contribute to young peoples’ savings struggles. And, if nothing else, it’ll make you feel a little less guilty about that double mocha frappucino!

 Chronic Money Stresses?  Continue Reading…

How realistic is it to live only on cash?

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Repak-Headshot
Steve Repak

By Steve Repak, CFP

Special to the Financial Independence Hub

If you are in debt, you have probably heard over and over again that you should quit using credit cards and stick to using cash exclusively for purchases (aka “cash-only” purchases.)

In a previous article I explained that for some people it actually hurts to break a large bill like a $20, so only using cash may help you get your spending under control. I wanted to share some of the risks and benefits of a cash-only lifestyle and also show that you can still get out of debt if you want to use credit cards.

If getting out of debt is your goal, there are three things you must do in order to succeed regardless of whether you use cash or credit:

  1. Spend less money than you take home each week
  2. Build an emergency savings
  3. Develop and follow a get-out-of-debt plan

Cons of using cash

Continue Reading…

Four secrets for overcoming Student Debt

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woman-570883_960_720By Barney Whistance

Special to the Financial Independence Hub

According to the Federal Reserve Bank of New York, 43 Million Americans have student loan debt. Recent graduates have the highest amount piled up, roughly $35,000 each, which means that monthly payment installments are around $350 – money that could be put to better use elsewhere. Here are the best ways to get rid of student debt, without even having to pay it.

1.) Be helpful. Volunteer opportunities are a great way to positively affect your larger community, while also helping pay down your debts. Volunteering also creates lots of tangible and intangible benefits. Find opportunities that will waive off your student loans, while you’re serving the community.

Some of the organizations where serving will help you waive your student loans are AmeriCorps and Peace Corps. They not only help you get your student debt waived, but they also pay you a modest living stipend and health benefits as well. If you are willing to join AmeriCorps or Peace Corps only to get your student loan waived off, make sure you qualify for their specific types of student loan waivers.

Other options include ZeroBound and SponsorChange:  both programs that connect donors with recent graduates to help pay down their loans while volunteering. Taking advantage of the Military Loan Forgiveness Program, part of the Public Service Loan Forgiveness program can also pay off debt while providing excellent long-term career opportunities.

2.) Work it out. Certain professionals qualify for a 100 per cent loan waiver through the Federal Perkins Loans Program. Continue Reading…

Millennial Wrap: Budgeting while living abroad

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The Hub’s Millennial blogger teaching ESL in Hong Kong

By Helen Chevreau

Hub Staff

As a millennial living abroad, I am constantly discovering new challenges that I’m supposed to overcome with a smile and a positive attitude. Creating and keeping to a budget while I’m on the other side of the world, it turns out, is one of those challenges.

I suppose this is really a challenge that every recent graduate is facing — whether at home or away. When the learning curve is so steep in every other aspect of life, though, it can often be a bit more difficult to feel financially stable while abroad.

How to budget in expensive Hong Kong

After teaching english at a learning centre for a year, I’ve now begun volunteering for a grade 2 class at an international school here in Hong Kong, where the kids are learning about how to use similes in poetry. As I was sitting in class listening to the children share their similes, I found myself envisioning a poetic simile of my own.

Depositphotos_10524892_s-2015 Continue Reading…