{"id":116485,"date":"2022-11-29T07:59:02","date_gmt":"2022-11-29T12:59:02","guid":{"rendered":"https:\/\/canadianbudgetbinder.com\/?p=116485"},"modified":"2024-12-18T06:05:04","modified_gmt":"2024-12-18T06:05:04","slug":"what-personal-financial-decision-has-positively-transformed-how-you-live","status":"publish","type":"post","link":"https:\/\/digitalskyweb.co\/canadianbudgetbinder.com\/2022\/11\/29\/what-personal-financial-decision-has-positively-transformed-how-you-live\/","title":{"rendered":"What Personal Financial Decision Has Positively Transformed How You Live?"},"content":{"rendered":"\n

<\/span>Estimated reading time: <\/span>8<\/span> minutes<\/span><\/p>\n\n\n\n

Making good personal financial decisions <\/strong>takes more than saving money and finding deals.<\/p>\n\n\n\n

The Canadian economy is struggling, and residents aren’t sure of the future.<\/p>\n\n\n\n

Related:<\/strong> Canadian banks may downgrade economic forecasts but not confirm the recession. <\/a><\/p>\n\n\n\n

We’re already experiencing increased pricing on housing, groceries, utilities, petrol, clothing, and everything else in between. <\/p>\n\n\n\n

These are the days Mrs. CBB and I forecasted when we made decisions that would impact our lives. <\/p>\n\n\n\n

At this point, we are thankful that we stuck to our financial commitment of zero debt.<\/strong><\/p>\n\n\n\n

I was lying in bed scrolling through Reddit Personal Finance Canada<\/strong> when a question caught my attention. <\/p>\n\n\n\n

A Reddit user <\/strong>asked, “What personal financial decision positively transformed how you live?”<\/strong><\/p>\n\n\n

\n
\"What
What Personal Financial Decision Has Positively Transformed How You Live?<\/figcaption><\/figure>\n<\/div>\n\n\n

I replied to the question but, seconds later, realized that it wasn’t just one decision that changed our lives; it was many.<\/strong><\/p>\n\n\n\n

Today, I want to answer the Reddit question in more detail and hope you might share how personal financial decisions transformed your life. <\/p>\n\n\n\n

1. Understanding Basic Finance<\/h2>\n\n\n\n

If I could turn back time, I’d want to learn more basic finance before I turned 30. <\/p>\n\n\n\n

I had just turned 30 when I moved to Canada and was still investigating personal financial paths.<\/p>\n\n\n\n

Moving out on your own and into the real world is an eye-opener, and I don’t mean living off-campus. <\/p>\n\n\n\n

Although going to University did help me understand spending and saving, it didn’t prepare me for home ownership and the years to come. <\/p>\n\n\n\n

The thing about personal finance is that you can only predict because there is never a certainty. <\/p>\n\n\n\n

Basic Finance 101<\/a><\/strong>, in our eyes, revolves around banking, savings, budgeting, debt, and investing. <\/p>\n\n\n\n

Frugal living is one thing, but understanding the layer underneath saving money is another. <\/p>\n\n\n\n

You won’t learn this overnight because it comes with experience, but you can read about it. <\/p>\n\n\n\n

That’s another reason I read other reputable personal finance blogs: because I want to learn. <\/p>\n\n\n\n

Just as you are here to learn from our experiences, I draw on experiences from bloggers who have experience in what I lack. <\/p>\n\n\n\n

Investing and dividend income comes to mind from my buddy Mark at My Own Advisor<\/a><\/strong>. <\/p>\n\n\n\n

He’s a wealth of investing information, and we virtually met many years ago.<\/p>\n\n\n\n

Personal financial decisions will continuously improve when you are educated on the topic. <\/p>\n\n\n\n

Take time to initiate a trip to the library to read a few personal finance books, follow reputable investment bloggers, and don’t forget to ask questions. <\/p>\n\n\n\n

2. Budgeting <\/h2>\n\n\n\n

When I answered the Reddit question<\/strong>, I submitted that paying our mortgage off was our best personal financial decision. <\/p>\n\n\n\n

In reality, only one part of a whole led to us being able to do so.<\/p>\n\n\n\n

Without understanding finance and creating our Excel budget, we would not have quickly become debt-free.<\/p>\n\n\n\n

Not everyone agrees with using a budget, but that’s okay because we track our money differently. <\/p>\n\n\n\n

I’m not going to argue whether a budget is a financial bible, but I can say that without it, we’d still have debt. <\/p>\n\n\n\n

3. Saving Money <\/h2>\n\n\n\n

Thankfully, we took the initiative to save money in our 20s<\/a><\/strong> and were curious about how to save even more.<\/p>\n\n\n\n

By 2010, we were knee-deep in extreme couponing in Canada with the big binder in tow. <\/p>\n\n\n\n

Our stockpile of products has dwindled over the last 12 years, but we are still using products we got free or near-free using coupons. <\/p>\n\n\n\n

Isn’t it wild how some products have lasted this long?<\/p>\n\n\n\n

Most products are razors, shaving cream, shampoo\/conditioner, lip balm, floss, and dishwashing tablets. <\/p>\n\n\n\n

I remember paying $0.50 for a whole box of dishwasher tablets; we didn’t own one. <\/p>\n\n\n\n

We convinced ourselves that when I remodeled our kitchen, we would install one, and the tablets would come in handy. <\/p>\n\n\n\n

Well, I still haven’t renovated our kitchen, but eventually, we will, and yes, I will install a dishwasher. <\/p>\n\n\n\n

My wife jokes that if I don’t get a move on, the dishwasher will change and will no longer accept the tablets. <\/p>\n\n\n\n

She’s probably correct, like always. <\/p>\n\n\n\n

Take advantage of all ways to save money, using the Flashfood App<\/a><\/strong>, cash back<\/a><\/strong> options, coupons<\/a><\/strong>, or rewards cards<\/a><\/strong>. <\/p>\n\n\n\n

There are definite advantages to living a frugal life before and after the debt is paid in full. <\/p>\n\n\n\n

4. Found A Financial Advisor We Trust <\/h2>\n\n\n\n

Yes, we pay an advisor fee, but the price has been reduced to a 1% Management Expense Ratio<\/a> since we have over one million dollars in our portfolio<\/strong>.<\/p>\n\n\n\n

It may seem like lots of money to someone who invests independently, but it’s a fair price considering what one can lose without investing knowledge.<\/p>\n\n\n\n

We’re fortunate to have built a strong relationship with our financial advisor, someone my wife worked with before she was laid off. <\/p>\n\n\n\n

She already knew he was a dedicated advisor, always on time, and made an effort to do yearly review callbacks.<\/p>\n\n\n\n

5. Paid Off Our Mortgage<\/h2>\n\n\n\n

We bought our house in 2009 when the economy took a nose-dive along with house prices. <\/p>\n\n\n\n

I had told Mrs. CBB that now was the time to ditch the basement bedroom rental<\/a><\/strong> for our first home. <\/p>\n\n\n\n

Finally, after looking at countless homes for sale, we settled on one that we could afford on one income. <\/p>\n\n\n\n

With the second income, we would invest and pay our mortgage quickly. <\/p>\n\n\n\n

Although we had a bump in the road with health issues, we crushed our $265,000 mortgage in just five years. <\/a><\/strong><\/p>\n\n\n\n

I’d have to say that was one of the best personal financial decisions we would make to allow us to live the way we do today. <\/p>\n\n\n\n

We’re still a frugal couple and invest quite a bit more money, but we enjoy life without financial worry.<\/p>\n\n\n\n

Tip<\/strong>: Don’t rush into the housing game until the timing is right, and purchase a home on one income if possible. <\/p>\n\n\n\n

If we had to do this again but to buy and sell our home, we’d wait until house prices dropped.<\/p>\n\n\n\n

In the meantime, we would save as much as possible to knock out another mortgage-free home.<\/p>\n\n\n\n

6. Investing In Our Retirement <\/h2>\n\n\n\n

We sought financial advisor help because neither of us is confident about investing. <\/p>\n\n\n\n

I think we poured our heart and soul into the budgeting aspect of personal finance, and the investing side is slowly piquing my interest. <\/p>\n\n\n\n

You don’t want to make a big mistake with your investment money if you lack confidence in what you’re doing. <\/p>\n\n\n\n

Starting with Questrade<\/strong> and their Questwealth portfolio is what I’ve been toying with and reviewing for all of you. <\/p>\n\n\n\n

https:\/\/canadianbudgetbinder.com\/2013\/05\/16\/working-towards-a-debt-free-lifestyle-in-8-steps<\/a><\/p>\n\n\n\n

7. Working Together As A Team<\/h2>\n\n\n\n

Without saying, if you are married or plan to marry, you must work as a team. <\/p>\n\n\n\n

There has never been a time during the 16 years we’ve been married that I’ve made a big purchase without discussing it with my wife.<\/p>\n\n\n\n

We discuss the decision together when money is to be spent, invested, or saved. <\/p>\n\n\n\n

Knowing that we have a personal financial mindset<\/a><\/strong> is critical to keeping debt outside the door.<\/p>\n\n\n\n

Once someone in the relationship veers in a different financial direction, money problems<\/a><\/strong> can arise. <\/p>\n\n\n\n

Whether it’s a husband spending too much money or a wife spending cash behind her husband’s back, it all comes from the same pot. <\/strong><\/p>\n\n\n\n

8. Side-Hustles (Earning Extra Money)<\/h2>\n\n\n\n

Over the years, side hustles have helped us save more money to pay the mortgage<\/a><\/strong> before we were 40. <\/p>\n\n\n\n

We have all contributed to our financial success from focus groups and earning cash for hosting international students<\/a><\/strong> to blogging<\/a><\/strong>. <\/p>\n\n\n\n

I must admit that we had the mortgage paid by the time this blog earned money.<\/p>\n\n\n\n

There were mistakes I made blogging<\/a><\/strong> early on, which contributed to that, but it’s not uncommon to now earn thousands each month<\/strong>.<\/p>\n\n\n\n

Putting yourselves out there and searching for ways to make extra money is essential. <\/p>\n\n\n\n

We would look on Kijiji for focus groups and sign up with local companies that needed people for a study. <\/p>\n\n\n\n

For example, the University needed a couple to do a three-year marriage study, which paid well.<\/p>\n\n\n\n

If I remember correctly, it was $350 each for the first visit and $100 each for a quick interview and questionnaire the following two years. <\/p>\n\n\n\n

Newspapers are also an excellent source for finding focus groups and other studies conducted in your area for cash. <\/p>\n\n\n\n

Personal Financial Wins and Losses<\/h2>\n\n\n\n

There will always be lessons learned regarding your financial wealth and health. <\/p>\n\n\n\n

You’re not alone on this journey; we all have to walk it somehow. <\/p>\n\n\n\n

If you’ve learned anything from our experiences today, please take budgeting seriously. <\/p>\n\n\n\n

None of this would have been possible without budgeting and the mindset to achieve financial freedom<\/a><\/strong>. <\/p>\n\n\n\n

Today, we live a life free from financial stress, all thanks to being frugal and tracking our money.<\/a><\/strong> <\/p>\n\n\n\n

It has nothing to do with how much money you earn; It’s about how you save it. <\/p>\n\n\n\n

I’ll probably have that saying engraved on my tombstone. <\/p>\n\n\n\n

Discussion: <\/strong>What Personal Financial Decision Has Positively Transformed The Way You Live?<\/p>\n\n\n\n

Please leave me your comments below. <\/p>\n\n\n\n

Thanks for stopping by, and please subscribe to CBB for weekly updates from me, Mr. CBB. <\/p>\n\n\n\n