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 5 Best Currency Exchange Options For Travellers

Posted By Financial Independence Hub | July 8, 2015

By Barry Choi

Special to the Financial Independence Hub

You’ve booked your flights, your itinerary is set and now all you need is some local money. Getting foreign currency is easy but choosing the right method could save you a ton of cash.

Here are the best currency exchange options for travellers:

1. Using ATMs

Using ATMs is the best currency exchange option to get cash at the lowest rate. ATMs are everywhere and the best part is they only charge the spot rate of the day plus 2.5%.

Your home bank might charge you an additional $2-5 for using a foreign ATM but this fee can sometimes be waived, depending on your account status. Don’t forget to call your bank and let them know you’ll be travelling; otherwise they may block your card on suspicion of fraud. If the fee won’t be waived, just max out your daily withdrawal limit each time to avoid making excessive trips to the ATM.

To find out which foreign ATMs are affiliated with your bank, check the back of your debit card and look for the PLUS (VISA) or Cirrus (MasterCard) symbols. When you’re overseas, search for ATMs with the matching networks and you should be fine. Both VISA and MasterCard have ATM locators so you can find the right ATM before you even take off.

Not only is using ATMs the cheapest way to get money, it’s also the safest way since you’ll never be carrying large amounts of cash. Note that internationally, 4-digit pins are the standard for ATM cards so change yours before you depart if it differs.

2. Credit cards

Weekly Wrap: Happy Financial Independence Day! Eternal Truth # 7 completes series

Posted By Jonathan Chevreau | July 4, 2015

By Jonathan Chevreau

Financial Independence Hub

To all our American readers, the Findependence Hub wishes a happy Independence Day, or as we like to say around here, Findependence Day.

Bloggers are fond of building posts around the July 4th celebration, and this year several are using the phrase Financial Independence Day. For instance, Forbes.com just published a blog titled Financial Independence Day for Millennials.

In fact, a year ago, Richard Eisenberg of Next Avenue and Forbes.com did just that, writing a similar piece entitled How to Declare Your Financial Independence. And he did make an explicit reference to Findependence Day, more on which below.

This weekend’s Motley Fool Money podcast is titled Declare Your Financial Independence.

And a few days ago, the Energy & Capital Site alos used the same phrase in an online commentary: Financial Independence Day. However, the piece merely outlines 55 trading rules and doesn’t get into the topic the way the Hub does.

The trend is clear and it seems from our vantage point that the next logical step is to use our contraction and call it Findependence Day! It’s not exactly a new term any more: the original book bearing that name was published in 2008 (more about which below).

So for those for whom the term may still be unfamiliar,what exactly is Findependence?

It’s simply a contraction for Financial Independence.

And Findependence Day? That’s the day you achieve Financial Independence. Continue Reading…

Grexit and Findependence

Posted By Jonathan Chevreau | July 3, 2015

By Jonathan Chevreau,

Financial Independence Hub

Thus far, the Hub has not commented directly on the ongoing crisis in Greece. Since we’re in something of a pause mode until the Referendum on Sunday, it seems as good a time as any to venture into this issue.

I am as transfixed as anyone by the images of Greek pensioners lining up almost daily for their 60-euro ATM infusions. Those who follow my Twitter feed — which also runs to the right of the Hub’s home page — will know that probably every second tweet or retweet concerns Greece in some way.

The world’s major newspapers and broadcast media seem to me to be doing a more than adequate job in reporting on this crisis. For instance, in Thursday’s Financial Post, Gluskin Sheff’s David Rosenberg wrote a useful piece about Why he still isn’t worried about Grexit. And the cover story in this week’s just-published The Economist nicely lays out the possible near future in Europe’s Future Lies in Greece’s Hands.

There’s little point in adding to the discussion if I can’t provide some unique perspectives. I’m no expert on Greece so I cannot: I’ve never even visited the country, although last fall we were right next door in neighbouring Turkey.

I can say that I’ve not made any changes in our family’s investments in response to this ongoing drama. I briefly owned a tiny position in a Greece ETF in 2014, thinking the worst was over but jettisoned it for tax-loss selling purposes late in 2014 and it will be a long time before I’m tempted to re-enter that position. If ever.

Cash is the furthest thing from Trash right now

Why millennials should use multiple streams of income as their emergency fund

Posted By Robb Engen | July 2, 2015

By Robb Engen, Boomer & Echo

Special to the Financial Independence Hub

Millennials need to develop an entrepreneurial spirit in order to succeed in today’s economy. Gone are the days when you could graduate debt-free, get a job with a stable employer, work for three decades and retire with a healthy pension.

Today’s workers change jobs every four to five years, and they’re no stranger to layoffs due to budget cuts and downsizing. Full-time continuing employment has been replaced by year-to-year contracts, meaning there’s little chance of latching onto a pension. A good health and benefits package might even be a stretch.

A traditional emergency fund meant setting aside 3-6 months worth of expenses to get you through a long period of unemployment. In real terms that meant having $10,000 – $20,000 cash sitting there earning next to nothing in interest.

Building multiple income streams

But a better way for Millennials to combat the threat of job loss – or job uncertainty – is to build up multiple income streams outside their traditional day jobs. Continue Reading…