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What income and down-payment do you need in order to buy the average home in a major Canadian city? The average detached house in Canada costs $503,301 and you’ll need a down-payment of $25,330 and a household income of at least $85,000 to buy it. But the average isn’t representative of most Canadian cities. The table below lists the minimum down-payments and approximate household income you need to afford the average detached house in Canada’s 25 largest cities: About the numbers I tried to find the average price for a detached home for each city, but when I couldn’t, I used the median house price instead. Please note that you will be able to find houses in your city that are priced higher and lower than the average/median prices listed in the table above. That’s how medians and averages work. House prices are changing dramatically each month in some of the cities listed above, […]
Net worth is the simplest and most useful measure of your financial health. It’s a single number that reflects exactly where you stand. Over time, it tells you if you’re improving your finances, or setting yourself up for failure. But how do you calculate net worth? The simplest way to understand net worth is the following equation: Net Worth = Assets – Liabilities When you take everything you have, and subtract everything you owe, you’re left with your net worth. However, you should declare assets and liabilities within reason. Your assets are not everything you’ve ever bought — items like clothing or home decor might have been expensive when you made the purchase (maybe you even called it an “investment piece”) but these generally don’t count as assets. Likewise, you might have a really big cellphone bill this month, but because you’ll be paying it off within a month, it’s not really a […]
Last year, I read Choose Yourself by James Altucher. It’s a wonderful book. He’s a bit nutty, but most of what he said reinforced my own nutty ideas about self-employment, entrepreneurship, and finances so I’ve been a big fan ever since. In one chapter, he talks about having a scarcity or abundance mindset, and how that affects your finances. Scarcity and abundance in terms of financial perspectives was not something I’d seriously pondered before, but now it’s something I think about often. I want to encourage you to think about it as well! Your perspective influences the way you think about and manage your money, and can mean the difference between believing you are broke or having everything you need. What is a scarcity mindset? A scarcity mindset is the persistent belief that you do not have enough. When it comes to your finances, a scarcity mindset manifests itself as feeling you cannot afford to live the […]
Being properly insured is part of having your finances in order. Insurance will protect you and your family far better than an emergency fund in the event of a disability, critical illness, or death. Nevertheless, it’s something many young people neglect. In recent weeks, a handful of readers have approached me with questions about cash-value life insurance. I’m not sure if it’s increasing in popularity, or you simply don’t become a target of insurance salespeople until your late-20’s and early-30’s. Regardless, there seems to be an increasing trend of insurance policies being pushed on millennials. As you might already know, I’m highly mistrustful of financial salespeople and products. I am wary of financial advisors that push high-fee investments. I loathe mortgage brokers that get people into debt in order to come up with their down-payments. And I deeply dislike insurance agents that wrangle people into expensive policies. If you want to know what […]