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.”

Helping love ones in their financial crisis

Posted By Jonathan Chevreau | April 4, 2015

By Peter Christopher,

Special to the Financial Independence Hub

It’s disturbing to see loved ones undergoing financial hardships at any time of year, let alone during Easter. It may feel like you’re going through a monetary crisis yourself.

The hard reality is that while most of will want to help friends or family members get out of a financial hole, we may be reluctant to do so at the expense of leaving our own finances in a more precarious condition. So it’s good news that there are reliable ways to guide your friends and/or family members to identify resources that could get them back on the track.

Lend them a hand

It’s often difficult to know where to seek help. To make things worse, constant strain can negatively affect thoughts and skill to solve problems. A good way to help a loved one in financial distress is to put them in touch with a center within their community. These centers may be able to help with housing, food, medical services and more.

Some communities may also offer such assistance online. Visit local community centers, houses of worship, schools and libraries to collect information on where to get help. Continue Reading…

Weekly Wrap, Easter edition: finding purpose, Declaration of Financial Independence & more

Posted By Jonathan Chevreau | April 3, 2015

By Jonathan Chevreau

Since it’s Easter weekend and Passover begins tonight, I thought we’d dedicate the Hub’s weekly wrap to more spiritual matters or at least view personal finances through a spiritual lens.

We’ll start with this essay from Peter Grandich: A Biblical Perspective on Matters of Finance. As Peter noted in an email to me, “We know that matters of finance are the second most talked about topic in the Bible.”

One of five “Religious Personal Finance” blogs flagged on the Hub’s Top Blogs tag is Out of Your Rut. It recently ran an intriguing piece entitled 10 ways to be rich without being wealthy. Continue Reading…

7 tips to achieve a Findependent Life

Posted By Jonathan Chevreau | March 31, 2015

By Good Nelly,

Special to the Financial Independence Hub

Are you dreaming about a financially independent (aka “findependent”) life free of debt?

What do you mean by “Financial Independence?” Before you start working towards achieving “Findependence,” ask yourself: What does this mean to you? Do you dream of a life in which you can spend your time as you want? Does it mean a rich and varied lifestyle you wish to have? In short, you need a vision, depending on which you can plan your action.

Here are seven tips to achieve a financially independent life:

1.) Make yourself disciplined

Thoughts of a Former Whiz Kid

Posted By Jonathan Chevreau | March 29, 2015

By Peter Grandich,

Special to the Financial Independence Hub

“And you will know the truth, and the truth will set you free.” — John 8:32

As I begin my 32nd year in and around the financial arena and soon shall celebrate my 59th entrance onto the stage of one of the magnificent creations of the Master of the Universe, this former Wall Street Whiz Kid (who doesn’t deserve to be called a whiz kid after making and losing millions more than once) has never been more concerned about the economic, social, political and spiritual state of the U.S.A.

While it was nice to receive accolades over the years for forecasting many major tops and bottoms in several different markets, I thankfully concluded no one except Almighty God knows the future and portraying oneself as some soothsayer is an insult to Him and mankind. (Not being able to hit the side of the barn in the last few years as a Soothsayer had something to do with it, also.)

So my comments here are that of just a private citizen, speaking aloud and still caring about this thing called the human race.

My first boss and the man who gave me my start as a stockbroker back in April 1984, said to me on my first day in the office (I think only half in jest), “Peter, don’t do three things if you want to be successful in this business. Don’t talk about politics, religion and other men’s wives.”

While I still believe he was joking about wives, he was deadly serious about politics and religion. The underlying theme of his message was, “sell products, not personal opinions.” Continue Reading…

Are low interest rates punishing savers? Hardly!

Posted By Jonathan Chevreau | March 26, 2015

By Robb Engen, Boomer & Echo

It’s easy to see how savers feel punished in today’s low interest rate environment. You have to look hard to find a daily savings account that pays more than one per cent.

Fixed income investments aren’t much better, with 5-year GICs barely touching 2 per cent. All of this means parking your short-term savings will do little more than keep up with inflation – you’re treading water, at best.

Rates have fallen steadily for a quarter century

We’ve seen a steady decline in rates for the past 25 years – around the time when the Bank of Canada adopted its inflation-control target to preserve the value of money by keeping inflation low, stable, and predictable. In January 1991, the overnight rate was 10.88 per cent, the interest paid on daily savings was 9.66 per cent, and inflation ran at 6.9 per cent. By 2002, the overnight rate fell to 2.25 per cent, daily savings interest dropped to 1 per cent, and inflation held steady at a now familiar 1.4 per cent.

So should we long for the days when GICs paid 10 per cent or more? Are low rates really punishing savers? Hardly. Continue Reading…