Some banks require customers to open a chequing account when they open a line of a credit. The objective is to gain the sweet recurring revenue from the monthly fee of the chequing account. Some people use line of credit as an emergency fund. The interest rate is so high, so the cost of borrowingContinue reading “That darn monthly fee again!”
Category Archives: Budgeting
Do you need overdraft insurance?
Someone asked me whether it is necessary to buy overdraft insurance that costs $5 per month. It is a very nice recurring revenue for the bank with very high profit margins. The bank doesn’t need to do anything and just collect money. Once, I was charged $40 insufficient fund fee because I made a mistakeContinue reading “Do you need overdraft insurance?”
Inflation? Whose fault is that?
Bank of Canada said the way to fight inflation is to raise interest rate to crush demand. It sounds like people have too much money in their pockets, so the central bank needs to make it harder for them to buy stuff. Some even blame the covid relief fund. Perhaps they should talk to thoseContinue reading “Inflation? Whose fault is that?“
Two levels of household budget
The higher level and the lower one with more details. One key objective of household budget is to estimate whether we will have savings or deficits before the next paycheque comes in. This way, we can plan. If we have extra money left, we can save for emergency fund, pay down debt, contribute to retirementContinue reading “Two levels of household budget“
$20 bank fee per month!
If you are still paying the bank fee, perhaps you could consider whether to switch to a no-fee bank account from an online bank whose overhead cost is much lower than the brick-and-mortar ones. I just heard $20 per month for a chequing account with one of the big five banks in Canada. The feesContinue reading “$20 bank fee per month!“
Stress from following the financial plan
The financial plan is a living document. It is not supposed to add more emotional burden but to manage the risks and alleviate future anxiety by guiding us to achieve our goals. Most of our life goals need a solid financial foundation. Here is an example. She already has a financial plan set up forContinue reading “Stress from following the financial plan“
Lying flat
This is a new popular phrase in China to describe a lifestyle or attitude of the youth. They opt for simple living with minimum consumption while taking low-paying odd jobs when necessary. They don’t date, plan to get married, have children, or buy a house because the financial burden is unbearable. Even if they canContinue reading “Lying flat“
Single lady financial literacy
The first key is to have enough emergency fund. Being single has its benefit which is loads of freedom, but the flip side is that it lacks a teammate. You can lose your job, so you need to have enough rainy-day fund. That should be the second. The first and foremost should be financial literacy.Continue reading “Single lady financial literacy”
$310K to raise a child
Almost a third of a million dollars to raise a child excluding college cost. Let this sink in a bit. So interesting to quantify this labor of love. 😊 Please do the financial planning before having a child. It takes a village to raise a child. In the big city, there is no village toContinue reading “$310K to raise a child”
Couple finance – big age gap
If a couple has big age difference such as 10 year or more, they might want to watch out for the dual goals to balance paying off mortgage and saving for retirement. Here is a hypothetical case as an example. The husband is the bread winner and in his late 40s. The wife is 15Continue reading “Couple finance – big age gap”
Worthfy Financial Literacy Counselling 