Are you one of those investors for whom things just seem to always work out well? Getting superior long term returns seems to take little effort. Whatever strategy you use seems to eventually work. You don’t spend much time or effort, yet most of the time you are feeling quite confident about your investments.

Or are you the type of investor who always seems to struggle? It seems everything you buy goes down right after you buy. When you finally sell, they take off. And the investments you hold long term mostly underperform.

We have often encountered both these types of investors. Struggling investors are far more common. They usually have trouble believing that many investors outperform with little effort. Those that find investing effortless just shake their heads at the frantic activity of struggling investors. This applies to both professional and amateur investors.

Why is it that investing is so easy for some and for others it is always a struggle?

We have found that the biggest reason for this difference is an underlying belief system of successful investors. This belief system tends to result in effective behaviour. The success of the investor tends to result more from their behaviour than from the specific investments they own.

From our years of experience, we can usually get a good idea of how successful an investor is just from talking with them and identifying their belief system, even if we know nothing about their investments.

There are 3 main principles that tend to make up the belief system of successful investors:

1. Faith

The single most important characteristic of successful investors is faith. This includes faith in the markets, in the future, in our free enterprise system, in the ability of good companies to grow their profits, and in humanity.

Successful investors tend to have this confidence and optimism. They see how much humanity has progressed in recent history and tend to see their optimism as realism. They don’t know how things will turn out all right – they just know that they will turn out all right.

This faith tends to give them a long term focus. They don’t need to keep searching for some great investment, do all kinds of transactions or get into the latest fads, because they are confident that their investments and the markets will perform well over time. Whenever their investments are down, this same confidence allows them to just see it as an opportunity to buy more. They tend to get good advice or choose their investments carefully, but then hold them a long time.

How can they outperform so easily? All you need to do to outperform is to own high quality investments for the long term and generally buy more whenever they are down. That’s all! The markets produce a good return over time and so should your investments if they are high quality. At least twice each decade, there will be a significant down market, which is your opportunity to invest more at lower prices. This alone means your return will be higher than the investment itself.

This is usually done with high quality mutual funds, broad index funds, or a well-chosen, diversified portfolio of stocks. We do it with “All-Star Fund Managers” that have all beaten their indexes long term and that we believe are the world’s smartest investors available to us.

Whichever specific investments they have, successful investors tend to have a calm confidence in their investments. The reason this is so important is that one of the single most important factors in investing is to stay invested and keep investing at market lows.

Many investors will make decent returns during a bull market, but then make the #1 mistake in investing by selling after the market tanks and losing years of growth. By selling, they miss the inevitable recovery. This #1 investing mistake is a direct result of not having faith.

Confident investors know that market declines happen, but since the markets have historically risen about 70% of years, declines are never probable. They are never focused on avoiding the next 20% down tick; but rather on being invested during the next 100% up tick.

Meanwhile, struggling investors tend to have a general anxiety about investing, a fear of losing money and a general pessimism resulting from their lack of faith.

They are constantly searching for the right investment, the right time to buy and sell, and use charts to try to market time effectively. They tend to believe that recent trends will continue and tend to “follow their gut”. Most of their information is free information from the news, internet, or other investors. They are always concerned about the “apocalypse du jour” (next crash, Peak Oil, deflation, inflation, etc.), anxious about missing opportunities, scared of losing money, and usually have a grossly exaggerated view of how risky the markets are. They are often “performance maniacs”.

Their lack of faith leads them to many behaviours that tend to reduce investment returns, such as frequent trading, market timing, performance chasing, trend following, lack of diversification, and most significantly, getting caught up in bubbles or selling after a crash.

The key point is that because successful investors have faith in the markets and their investments long term, they focus on participating effectively in the long term market growth. Struggling investors, with all their activity, end up trying to outguess random stock movements.

* This article is based on our personal observations over the years and the writings of Nick Murray, a retired advisor that I consider to be a mentor. Much of our investment philosophy is based on his principles.

Ed Rempel is a Certified Financial Planner (CFP) and Certified Management Accountant (CMA) who built his practice by providing his clients solid, comprehensive financial plans and personal coaching.  If you would like to contact Ed, you can leave a comment in this post, or visit his website EdRempel.com.  You can read his other articles here.

Popular Posts:

• Canadian Discount Brokerage Comparison
• Top 6 ways to Save on Auto Insurance
• High Interest Rate Savings Accounts
• MBNA SPG Credit Card Review
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

Dividend investing can mean a couple things. It could include investing for yield or dividend growth. Investing for yield is simply basing purchase decisions on the dividend yield of the stock. The higher the percentage yield, the better. The Dogs of the Dow strategy comes to mind for this one. In my opinion, basing investment decisions on yield alone is a dangerous game. More times than not, an abnormally high yield simply means an unsustainable dividend. When the dividend payouts become too much for the company to carry, dividends are typically cut dragging the stock price with it.

Investing for dividend growth is making purchase decisions based on the history of growing dividend payments over the years.  Although the initial purchase yield may be lower, it’s a great strategy for buy and hold investors as it gives raises to loyal shareholders over time.  Buying and holding dividend growth stocks is more in alignment with my beliefs and is one of the key components in my dividend investing strategy.

Having explained the two strategies, I use a combination of the two when making purchase decisions.  I narrow down the list of strong dividend companies based on a history of dividend growth, but only make my purchase when that particular stock reaches a yield threshold.

How do I determine the yield threshold?  By going back through the history of dividend payments and figuring out the average yield over the years.  Once that is determined, I usually pick a yield that is above average which then can be converted into a target stock price.  From there, I can watch the market (or use alerts) to indicate that it’s time to pick up a new position.

The Process of Finding Dividend Stocks to Buy

1. Pick your stocks. Find strong dividend stocks with a history of increasing their dividends over the long term.  A great place to start is the dividend achievers list.
2. Calculate the average yield. Do your research and figure out the average stock yield over the past 5 or more years.  One tool for this is Yahoo Finance historic prices tool.  You can select “dividends only” which will list dividend distributions over the past several years (depending on the stock).  Another way, which may be easier, is to use BigCharts.com and select “Lower Indicator” to be “Yield”.  It will graphically show you what the yield has been in recent history.
3. Pick your buy point. Select the yield at which you would be comfortable purchasing and convert that into a stock price.  For example, if Royal Bank’s average yield over the past several years has been around 3.5%, I may pick a buy point of 5% yield.  The current dividend is around $2/share which would equate to a target buy price of $40 ($2/0.05).
4. Use stock alerts. As we are all busy people, it’s a challenging task to keep your eye on the market which is why I use stock alerts.  There are various ways you can do this such as MSN money alerts, an Excel spreadsheet (with stock addin), or even a Google Spreadsheets (built in stock price functionality).  MSN Alerts are prehaps the most convenient if you are a MSN messenger user.  The spreadsheet option can provide more details, but requires that you check the spreadsheet periodically for buy signals which may or may not be convenient.

Although not overly detailed, that’s a fairly comprehensive overview on my dividend picking process.  For those of you who are fairly new to the blog, here my most recent dividend portfolio update.

I know there are a good few hardcore dividend investors reading this, do you have anything to add?

In a future post, I will put more details into how I use spreadsheets for stock alerts.

Popular Posts:

• The Smith Manoeuvre – A Wealth Strategy – I
• The Smith Manoeuvre – A Wealth Strategy – II
• Canadian Discount Brokerage Comparison
• Top Cash Back Credit Cards in Canada
• Child Care Tax Credits
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

Making a Dinner List

This might seem simple, but a dinner list is a key step in organizing the food you eat. We keep our list on the fridge and it normally goes two or three weeks into the future. The advantages of making such a list are:

• Organizes grocery shopping, less trips to the store and less food waste.
• More varied menu as you can ensure you don’t fall back on old staples, and can try a new recipe every week or two.
• By putting healthy choices on the list you are more likely to eat them.

Example: Writing a dinner list for the next two weeks. Take stock of what you have in the fridge, freezer and pantry, make a note of any eating out arrangements and then fill in the blanks making sure you make use of what you have in stock. Now write your grocery list based around what you’ve decided to eat.

If you are not big on cooking at home and are thinking this doesn’t apply to you, then think again. Eating out is not only costly, it is generally not good for your health. Fast food, obviously, is bad for you, but even food in decent restaurants is not the best. Ever wonder why restaurant food tastes so good? It is because it isn’t good for you; you are certainly eating more sodium and fat than you would be with a home cooked meal. The key to eating well is to eat food that is tasty and relatively healthy. If you are interested in money then presumably you want to be around to spend it in the future, so think about the quality of the food that you feed your family.

If you throw in a few healthy choices then don’t feel guilty about your less healthy choices. Aware that we eat too much meat, we try and make one day a week vegetarian; similarly, we try and alternate fish and meat throughout the rest of each week.

For most people, dinner is the main meal of the day, but you can, of course, make lists of breakfasts and lunches depending on your lifestyle.

Setting a Grocery Budget

Setting a budget for groceries is a very effective way of saving money, and you won’t even notice a difference in what you eat.

If you don’t already have a grocery budget then spend at least two months tracking every penny spent on food for your household – if you’re really into it you can break it down into different categories; set up a spreadsheet and go wild. Once that is done you can decide upon a suitable figure for your monthly budget.

Combined with a dinner list, a budget is a powerful tool. No more last minute decisions about what you are going to have for dinner, decisions that involve a quick $40 run to the store.

Armed with your dinner list you can do a “big shop”, knowing that what you will buy is going to be eaten, thus eliminating waste. You also won’t mind when you see the total at the checkout because it is covered by your budget.

As you get towards the end of the month you might find that you’re running out of budget money. This is when you can get creative with the food you have left, or “eat the freezer” (see next item). Once you’ve got the hang of budgeting, you will make sure you save enough for perishables needed at the end of each month.

Some months are more expensive than others, and you can fine tune your budget to cater to this. We buy fruit in the summer which we freeze, so we try and save $10 a month from September to June to cover this expense. December is a big month for food so you might want to bump up the grocery budget a little for that month. Any leftover money can be carried forward to the next month, and if you build up a big surplus then you can give yourself an extravagant treat.

Use your Freezer

Most people use their freezer to store food that, more often than not, will end up getting thrown out; this is a really expensive way of wasting food and energy. Do not be one of these people; keep your freezer full and organized, and make it earn its keep.

Whether you have a separate freezer or one as part of your fridge, here are some tips on making it work for you.

• Make an inventory of what’s in your freezer before making a dinner list.
• Make sure you eat foods before they get old by adding them to your dinner list.
• Do not let items get buried and forgotten.
• Label and date items which aren’t obvious.
• “Eat the Freezer” towards the end of the month when the budget is running low or the freezer is full of goodies.

Other Tips

• Scan the flyers in your local paper, and if you’ve room then bulk buy items on sale. Only buy items that you need and you know will keep.
• Use coupons wherever you can for items you regularly buy; coupons are free money.
• Comparison shop for items you buy regularly. The prices of meat, fish and dry goods, for example, can vary wildly.
• Buy in bulk and wrap items in meal-sized packs for freezing. This works well for meat and fish.

Combining a dinner list, a budget and efficient use of your freezer can simplify your life. You’ll know every morning what you’re having for dinner so take out what is necessary from the freezer and it will be thawed by the time you get home. A friend of mine found himself on the phone to his wife every day as he drove home, arguing about what they were to have for dinner. Each conversation inevitably led to a trip to the store; and such shopping trips are rarely money savers. My friend is now a little more organized, and finds the few minutes his family takes to prepare a dinner list is saving him time and money, and cutting down on arguments with his wife!

Remember not to be too hard on yourself. The aim of the above is to save a little money and time, and to eat a little better. Be flexible and change items on your dinner list according to your mood or what’s in the fridge. If you go over your budget don’t sweat it.

Being better organized with the way you eat and shop will mean less time spent grocery shopping, some light relief for your pocketbook, and maybe even a healthier lifestyle for you and your family. You’ll also be doing the planet a favour by driving less, wasting less, and making better use of your freezer. Remember that in North America we waste more food than anywhere else on the planet. Not only is this shameful, it is also a huge waste of money and resources.

Happily married and childless by choice, Rigbee lives in the Okanagan in BC. He enjoys gardening, cooking and learning about retirement and estate planning. When not thinking of ways to retire before 55, Rigbee works as a web site designer and can be found at Seahorse Solutions.

Popular Posts:

• How capital Gains Tax Works
• How Dividend and Interest Income Tax Works
• Registered Education Savings Plan (RESP)
• Top Cash Back Credit Cards in Canada
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

This has recently changed however with a new bill introduced for employment insurance for the self employed.  This bill extends to maternity, parental, sickness and compassionate care leave for the self employed.

According to The Telegram, here are some of the details:

..entitled the Fairness for the Self-Employed Act, would provide the following:

Maternity benefits of up to 15 weeks for mothers, beginning up to eight weeks before the expected birth date.

Parental benefits of up to 35 weeks for biological or adoptive parents while they are caring for a newborn or newly adopted child; they may be taken by either parent or shared between them.

Sickness benefits of up to 15 weeks for those unable to work because of sickness, injury or quarantine.

Compassionate-care benefits of up to six weeks for those who have to be away from work temporarily to provide care or support to a family member who is gravely ill with a significant risk of death.

The article goes on to state that the self employed individual would have to pay the same premium as a salaried worker.  However, I assume that the business would have to cover the employer portion of the EI premium.

For example, the maximum insurable earnings for 2010 is $42,300.  The employee rate is 1.73% ($731.79) with the employer rate being 2.422% ($1024.51).  If a self employed person were to opt into the employment insurance program, I would suspect that they would have to pay the full 4.152% or $1756.50 per year.

Another important point is that self employed individuals can also opt in or out of the program at the end of any tax year unless they have claimed benefits.  If they have claimed benefits, they must continue to pay EI premiums as long as they are self employed. Depending on how long term the business is expected to last, paying the premiums can get expensive.

I may be 100% self employed someday and it’s always comforting to know that there is a safety net out there.

What are your thoughts on employment insurance for the self employed??

Popular Posts:

• The Smith Manoeuvre – A Wealth Strategy – I
• The Smith Manoeuvre – A Wealth Strategy – II
• Canadian Discount Brokerage Comparison
• Top Cash Back Credit Cards in Canada
• Child Care Tax Credits
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

Is my hand-drafted will valid? @ Thicken My Wallet

How to Find a Good Deal @ Five Cent Nickel

Portfolio Rebalancing Experiment @ Michael James

10 Steps to Declutter and Simplify Your Finances @ Cash Money Life

Carnival of Personal Finance #230 – New Site Edition @ Canadian Finance Blog

Corporate Security Or Freelance Freedom? @ Frugal Dad

Book Review: Understanding Wall Street @ Canadian Capitalist

Bought a Few Stocks Today @ Sun’s Financial Diary

Consumer Protection @ Four Pillars

how to manage money @ Brip Blap

Hitting 6 Figures Income at 28! @ Financial Blogger

Reverse Mortgages for Seniors @ Money Smart Life

Rules of Thumb That Will Kill Your Retirement Dreams @ Canadian Dream

What is a Dividend Reinvestment Plan? @ My Dollar Plan

Not All Cheap Houses Are True Bargain Homes @ The Digerati Life

Why the Google Admob Acquisition is Important to Me @ Lazy Man and Money

Avoid a Financial Holiday Hangover This Year @ Generation X Finance

Popular Posts:

• Canadian Discount Brokerage Comparison
• Top 6 ways to Save on Auto Insurance
• High Interest Rate Savings Accounts
• MBNA SPG Credit Card Review
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

I asked myself recently, “What do I really believe about money that may be keeping me from living my life to the fullest?”

Things I know for sure:

1. Time plus growth equals wealth. The miracle of compound interest makes mathematical sense. Saving 10-15% of your income invested for long term growth slowing and incrementally over your working years may be the boring path to financial success but it works.
2. Spend less than you make. Live below your means.
3. Paying yourself first and automatically makes saving nearly effortless.
4. Debt hinders cash flow. Save up for what you want. Pay cash when possible.

My limiting beliefs about money:

1. Money equals security and security brings happiness and contentment.

Studies have been done to show that as long as needs are met and people have a little bit more to do with as they wish, happiness does not exponentially increase with wealth. In fact studies of lottery winners seems to suggest the opposite might actually be true. The key to being secure is having enough money and a little bit more for financial margin.

2. Thinking and talking about money is wrong. It should remain personal and private.

I’m a fairly frugal person but most people in my life wouldn’t know. They might be surprised to learn how frugal I really am. Most of our frugal choices affect only us. We live in a small house, drive one car, rarely eat out, make food from scratch and buy and sell on Kijiji. Yet I almost never tell people about our financial choices except to say we choose to live simply because it gives us the freedom to a live a more balanced life.

I still find it difficult to talk about money without fearing that others will think I’m cheap, shallow and without class. Yet, as I open up more with more people about financial issues, people are beginning to open up to me. Just recently I was at a conference and began a conversation with someone about the some of the struggles of living on a variable income. At the end of the conversation, she said, “I’m so relieved you talked so openly about this. Money is such a taboo subject for so many people. I really needed to talk about this but I didn’t want to be the one to bring it up.” I know that talking about money isn’t wrong but every time I still feel a bit vulnerable and exposed.

3. There are a limited amount of resources in the world. The more I have, the less someone else has.

I’m stuck on this one. I know somehow it isn’t true but I can’t seem to talk myself out of it. I can tell myself that if I had more I could give more and do more, but I confess it’s this limiting belief that holds me back the most.

Money is more than coin and paper currency. It carries with it themes of power, prestige, security, value, net worth and self worth. There are things about money you may believe that aren’t true and could hinder your financial success.

Have you asked yourself the same question: What do you believe about money that may not be true and could be holding you back in life?

Kathryn works in public relations and training for a non profit. In her off hours, she volunteers as a financial coach helping ordinary Canadians with the basics of money management. Her passions include personal finance and adult education. Kathryn, along with her husband and two children live in Ontario.

Popular Posts:

• Canadian Discount Brokerage Comparison
• Top 6 ways to Save on Auto Insurance
• High Interest Rate Savings Accounts
• MBNA SPG Credit Card Review
• Child Care Tax Credits
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

I’ve been a do-it-yourself DRIP investor for almost a decade.  I started as an undergrad and over the years have refined my DRIP investment systems and strategies.  If I were starting now, I would begin my research with the following ranking of Canadian DRIP programs.  For information on enrolling in a DRIP, see my step-by-step guide on commission-free investing.

I have given the most weight to discounts, followed by history of dividend growth, the size of the minimum amount optional cash purchase and finally yield.  Why these criteria?  First, getting a discount to purchase stock that already costs you nothing in commissions is just like getting free money, and since it’s reinvested, all the better.  Second, Since most DRIP’ers are long-term buy-and-hold investors, dividend growth is going to be one of the surest factors in the success of your investment.  Finally, yield is informative regarding today’s purchase of the stock, but is also the least reliable indicator since it is merely an effect of the stock’s current price and in itself may not signify anything long-term.

I have also specifically chosen to limit the list to DRIPs that have no, or very low, minimum amounts for optional stock purchases.  That means this list does not include any DRIPs that require $250 or more for a minimum stock purchase.  This is my own judgment call, since most regular DRIP investors have been known to invest smaller amounts more regularly through dollar-cost-averaging rather than large lump-sums.

Top 12 100% No Fee, No- (Or Low) Minimum OCP Canadian DRIPs

With Discounts

1. Bank of Montreal (TSX: BMO) – up to a 5% discount on reinvested dividends; excellent, regular dividend growth. No minimum amount for optional cash purchases.
2. Enbridge (TSX: ENB) – 2% discount on reinvested dividends, excellent dividend growth with yearly increases; NO MINIMUM.
3. TransCanada (TSX: TRP) – 3% discount; consistently and reliably raise their dividend yearly; $50 minimum.
4. CIBC (TSX: CM) – 3% discount; usually increases dividend twice a year, except throughout this last financial crisis; $100 minimum.
5. Bank of Nova Scotia (TSX: BNS) – 2% discount, excellent dividend growth, which has seen twice yearly increases for the last three years; $100 MIN.

No Discounts

1. TransAlta (TSX: TA) – TransAlta used to maintain the same dividend for years with no increase, but that appears to be changing, with an increase in 2008 and again in 2009, surprisingly, despite the credit crisis.  No minimum.
2. Emera (TSX: EMA) – This electricity generation company consistently raises its dividend and there are modest growth prospects for the company, as well. $25 minimum.
3. BCE (TSX: BCE) – These days analysts seem to buy BCE not for its growth prospects, but just for the yield. The stock shows some growth of dividends; these were not increased yearly between 2001-2006, but have been since then (save the period during which the Ontario Teacher’s Pension Plan was in the process of taking them over).  The dividend was last increased August, 2009. No minimum.
4. Telus (TSX: T) – Between 2002 and 2005, Telus did not increase its dividend, but since 2006 there has been yearly dividend growth. $100 MIN.
5. Suncor (TSX: SU) – Suncor is another top-notch Canadian company, but the stock has a low yield.  Because of its potentially greater growth prospects right now, I’d rank this one slightly above IMO, despite the higher minimum.  Dividends are increased somewhat regularly, with the most recent increase being September 2009. $100 minimum.
6. Imperial Oil (TSX: IMO) – Imperial Oil is an excellently run company with great assets, but like Suncor, has a low yield.  Dividends have been raised somewhat consistently over the years, with it looking a bit better in the last five or so. $50 minimum.
7. Bell Aliant (TSX: BA.UN) – Similar to BCE, little growth is expected in this stock itself, but investors like it for the distribution.  After 2011, it will convert back to a corporation and might see a small dividend cut.  There has been modest distribution growth, but no more is expected before 2011.  $25 MIN.

This list is by no means a complete list of all Canadian DRIPs, but these are undoubtedly some of both the biggest and most popular plans.  These stocks are frequently discussed in programs on BNN and also comprise some of Canada’s largest companies and employers.  You can invest in U.S. DRIPs, too, but the process is a bit more complicated and requires you to have an American bank account or a chequing account drawn on U.S. dollars in Canada.

If a company you like isn’t on the list, it is probably because it does not have a DRIP (in the full sense of both free direct purchase and dividend reinvestment), or, as with many of the income trusts, the minimum monthly or quarterly required amount for purchase is high, such as $500 or even $1000 in some cases.  I have tried to make the list as up to date as possible, but if you notice an error, please let me know.

Best DRIPs For Your Money

The best bets for DRIPs, assuming you like the companies as long-term investments, are the top 5 that also have discounts on the reinvestment of their dividends.  Why pass up “free money”?  That being said, companies change their discount offerings based on the market, so it is not uncommon to see reductions, increases, or even suspensions of the discount.

If you’re new to DRIPs, start your research with this list.  You might also want to check out the guide I wrote on how to get started in commission-free, fee-free investing for more specifics on how to enroll.

This article is a guest post from Clare, a self-taught DIY investor and founder of MoneyEnergy, a Canadian personal finance and investing blog.  Clare also writes for Personal Dividends.  You can subscribe to her RSS feed here and follow her on Twitter.

Popular Posts:

• How capital Gains Tax Works
• How Dividend and Interest Income Tax Works
• Registered Education Savings Plan (RESP)
• Top Cash Back Credit Cards in Canada
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

So it’s Friday afternoon and I’m lined up (with my family) to get the H1N1 vaccine for the toddler. After the 5.5 hour wait (yes hours), I decided to drop my family off at home and run a few banking errands at the nearest BMO branch. After making the various bank transactions, I headed home to settle away for the night.

The next morning, I decide to do some online banking so I instinctively head to the counter top where I always leave my wallet upon entering the house. However this time, it’s no where to be seen.

“No worries, it’s around the house somewhere” I said to myself.

With that, I went to the possible wallet locations such as my jacket, office, laundry and even searched through the kids toys. Still no where to be found. As I knew that I used my wallet the evening before, there were very few options as to where it could be.

I’d like to say that I’m a positive person, but a feeling of panic started to well up in the pit of my stomach. I started to assume the worse. What did I have in the wallet? Who do I need to call to cancel all my credit and debit cards? Which bills use automatic payment via credit card? What about my prepaid mastercard? ID’s, MCP and cash!

While in the midst of my melt down, the phone rings and it’s the police! Luckily, an honest person found my wallet on the ground outside the BMO branch and brought it to the police station after they couldn’t get in touch with me via phone. When I went to pick it up, I was thankfully given the contact information of the samaritan which I used to offer a small reward as a token of my appreciation.

Although my missing wallet situation worked out, what if I wasn’t so lucky? Here are some ways you can mitigate the catastrophe in the case of losing your wallet/purse:

1. Keep non essential cards out of the wallet/purse – For example, if there are credit cards or bank cards that you don’t use often, or even store cards that are seldom used, keep them at home.  I am an air miles collector, but I keep my air miles number in my cell phone but the physical card at home.
2. Record all essential information – Credit/bank card numbers, expiry dates and customer support numbers. Keep it all recorded and in a safe place.
3. Use a Service – There are services out there that keep all your card numbers in once place and make the cancellation/renewal phone calls for you.  However, this service can be replaced by simply keeping track of all your information yourself.

Back to the original question, have you lost your wallet or purse before?

Popular Posts:

• Canadian Discount Brokerage Comparison
• Top 6 ways to Save on Auto Insurance
• High Interest Rate Savings Accounts
• Top Cash Back Credit Cards in Canada
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

Seems that there was quite a bit of interest in the book “Super Trader” as there were numerous entries.  Out of all the entries, 3 were randomly chosen as winners of a free copy.  Here are the winners:

1. Linda
2. Jeff W.
3. Desmond C.

Top 5 Posts of October 2009

1. How Alternative Minimum Tax (AMT) Works - With the big hype about the tax efficiency of dividend income, the AMT makes sure that the government gets their share.
2. Prepaid Credit Card Comparison - After receiving a generous prepaid credit card as a gift, I wrote a review discussing the merits and pitfalls.
3. Tips for buying and selling on Kijiji - Staff writer Kathryn discusses some tips when doing business on Kijiji.
4. Why Don’t Financial Planners Plan Finances -  This article lists various reasons why financial planners don’t create basic financial plans for their clients.  What do you think?
5. Creating a Frugal Halloween – Even though Halloween has just passed, here are some great tips for Halloween in future years.

Top Referrers

1. Canadian Capitalist
2. Canadian Money Forum
3. The Globe and Mail
4. Four Pillars
5. Frugal Dad

Top Comment Contributors

• cannon_fodder
• Four Pillars
• Ms Save Money
• Canada Deals
• Kathryn

Popular Posts:

• Canadian Discount Brokerage Comparison
• Top 6 ways to Save on Auto Insurance
• High Interest Rate Savings Accounts
• Top Cash Back Credit Cards in Canada
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

Canadian consumers that did redeem coupons saved over $134 million dollars.

This sounds like a lot of coupons redeemed, but when you calculate the amount of unredeemed coupons it is astounding.

With an average face value of $2.02, the amount of unredeemed coupons is approximately $7 billion dollars.

Some reasons why Canadians do not redeem coupons?

Coupons are not for all consumers. There are several reasons why consumers do not use them.

Cutting them from magazines or newspapers, printing them from various websites like, Grocery Alerts , or sorting them from the mail is time-consuming. It takes time and effort to clip coupons and organize them. Having to carry them to the store is too much of a hassle for many shoppers, whether they save a few dollars or not. Most consumers could not be bothered.

Another possible reason why some Canadians might not redeem coupons is that they might spend more money. A coupon’s purpose is to entice shoppers to try a new product. Some consumers are brand loyal and do not wish to switch brands to save some money. The discipline required to not spend additional money may be lacking from some shoppers.

Coupons are typically for name brand products for items such as Tide and Sunlight. If a family on a budget and needs to choose between Tide when using a coupon and the store’s private label brand, the final price could show that the private label brand is cheaper even if the coupon is redeemed. Therefore, using a coupon would not be beneficial

When I was a teenager and went grocery shopping with my mother, I always saw the people that redeemed coupons and I perceived them as being “cheap.” The possible embarrassment or being labeled as “poor” or “cheap” is why some people don’t use coupons. The stigma attaching to using coupons probably still remains, especially at long lines at the grocery store when someone is trying to redeem double coupons.

Some Canadians still redeem coupons

However, the recent recession has changed the general public’s mind when it comes to redeeming coupons. In tough economic conditions, families are forced to stretch their budgets further. This includes redeeming coupons on everything from oil changes to clothing stores to laundry detergent.

Thanks to the Internet, several grocery stores (Real Canadian Superstore, Save-on-Foods, Safeway Canada) have added coupons to their websites and new websites have propped up to aid in gathering more coupons.

The fact that more and more merchants are offering coupons shows the demand for them.

Final Thoughts

Personally, I carry a grocery coupon binder (just a simple tupperware container), that organizes all my coupons into different categories for easy redemption.

I have had terrible experiences at stores explaining that they do not accept photocopied coupons and when you inform the cashier that they came from a retailer’s website or from our website, it does not make a difference. Speaking with the manager at the local Save-On-Foods if the coupon came from the retailer and that it has a valid bar code, a valid expiration date, and a valid Canadian redemption address they typically redeem the coupon. This is something to look out for if a cashier or merchant ever refuses to take your coupon. Just explain that the printed coupon has everything they need to redeem.

It is not a lot of money saved typically, but I do find the coupons add up when you combine them when an item is on sale.

Here is a recent transaction.

This copy of the receipt shows that I saved 75 cents off the Glad Wrap. This does not sound like much money, however, since the item was on sale at $2.99 using the coupon saved me an additional 25% off the sale price.

How do you tend to use coupons? Do you find them more hassle then the savings?

* – http://www.couponscanada.org/index.html

Author’s Bio: The author is Steven Zussino, Founder of Grocery Alerts Canada (http://www.groceryalerts.ca/) – Home of grocery deals and money saving coupons. He enjoys personal finance and saving money in beautiful Victoria, BC.

As Baby FT was born in 2008, I assume the projections for the cost of University will be fairly close to what the article states.  As we started an RESP in 2008, will it be enough to fund Post Secondary Education?

We decided to use the RESP program which allows up to 20% of your (after tax) deposit annually will be matched by the government, up to $500 per year.  So to max out the government grant, $2500 would need to be deposited annually.  Investments can grow tax free within the account, but withdrawals will be taxed in the hands of the student which shouldn’t be a problem as they typically make very little income at that stage.

With regards to the RESP investment strategy, we decided to with the TD e-series to index the portfolio over the next 17 years or so.  The plan is to gradually reduce our equities exposure as the withdrawal period closes in.  We deposit $2500 lump sum annually with the government depositing $500.  This results in $3000 in new cash every year to invest with.

My assumption is that the portfolio will grow 5% annually after inflation which, after 17 years of growth, will result in a portfolio size of approximately $88,000.  This is not too far off the $100k required IF our child decides to live at home during University years.  If moving away is the plan, then I the difference will have to be made up somewhere.  Whether it’s student part time work, student loans, or if Daddy needs to open up his wallet once again – a plan needs to be put in place.

The issue of who should pay for post secondary education is a well publicized.  Some believe that post secondary education should be the child’s responsibility while others feel the bill should be covered by the parents.  I’m in between the two camps.  I managed to pay my way through school without student loans by working part time, choosing a degree that had paid work terms, staying at home and living frugally.  However, even that (and RESP money) may not be enough in the future with rising tuition and living expenses.

My initial thoughts (which may change over the years) are that we’ll cover all education expenses, but baby FT will be responsible for living expenses.  The amount that baby FT will have to come up with will depend whether or not they want to live at home.  If the kid(s) decide to live away from home, then they’ll most likely need to fund their living expenses on their own (or a portion of) though part time work, loans (eligible if using RESP?), or scholarships.

Who knows, if we can ingrain a good savings habit in them early, then perhaps they’ll have some cash to cushion the blow.

What are your thoughts on the rising cost of tuition?

Popular Posts:

• Canadian Discount Brokerage Comparison
• Top 6 ways to Save on Auto Insurance
• High Interest Rate Savings Accounts
• MBNA SPG Credit Card Review
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

While we were there my son got very sick. We took him to the local clinic where they admitted him and tried for hours to insert an IV into his veins without success. It was one of the most difficult things I’ve had to watch. How could I put my son through this? What kind of parent was I to put my child’s life at risk because of my work?

He screamed until he was worn out and still he got sicker. He was losing fluids faster than we could get them into him. His veins were too small to insert the IV. The nurse matter-of-factly told us that he was going to die. In truth, she said, “When he dies, may I have his portable crib?”

We knew we had to get him off the island to save his life. We had health insurance that included emergency medical evacuation. We needed to get approval. We called and the person on the phone asked to speak to a the doctor in charge. After a lengthy conversation, our health insurance provider told us that the doctor on staff had the situation under control and didn’t think we needed to be medically evacuated. Our coverage was denied.

We could see our son was fading. We knew we didn’t have time to wait for the morning ferry and begin the 18 hour journey back to mainland. He was dehydrated. His sunken eyes were rolling back in his head. He couldn’t lift his head. He was too sick to cry.

It was at that point that we decided money no longer mattered. We called directly to our supervisor and ordered our own medical evacuation. I said to Brian, “I don’t care if this costs a million dollars. I don’t care if we’re going to be in debt for the rest of our lives. Our son is dying and we need to get him off this island now.”

A small plane was called. The local people and some of our colleagues worked at quickly filling in potholes in the dirt road. The local people stood along the road as the plane landed to keep the stray dogs and pigs from running out onto the road. A plane hadn’t landed on that island for as long as anyone could remember.

It was an hour flight to Manila where we were taken to an excellent hospital. We ran into the emergency room with our son in our arms, barely conscious and fading fast. They took him from us and immediately inserted a special pediatric IV. They told us if we didn’t get there when we did, he would have only had hours left to live. He stayed in the hospital for 5 days. They never could find the cause of what made him so sick.

In the end, when the organization we work for heard our story, they covered all the costs of the medical evacuation. They knew we made the right choice.

Later, as my son was recovering in the hospital, I began to think of the incredible people we’d left behind on that remote island. These were people that took us in, fed us, housed us, cared for us, advocated for us, cleared the road and helped us when we needed it so desperately. Yet, if it had been any of their children that had faced the same situation, their child would have died. They simply didn’t have the money.

It makes me sad that access to money is what saved my son’s life. There came a point when money didn’t matter and I would have be willing to pay anything. I know I made the right choice to do whatever it took. It seems unfair that I had a choice many people never get.

Have you ever been in a situation where money didn’t matter?

Kathryn works in public relations and training for a non profit. In her off hours, she volunteers as a financial coach helping ordinary Canadians with the basics of money management. Her passions include personal finance and adult education. Kathryn, along with her husband and two children live in Ontario.

Popular Posts:

• The Smith Manoeuvre – A Wealth Strategy – I
• The Smith Manoeuvre – A Wealth Strategy – II
• Canadian Discount Brokerage Comparison
• Top Cash Back Credit Cards in Canada
• Child Care Tax Credits
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

For me,  I will most likely keep the existing HELOC balance (and portfolio) but use the freed up cash flow to invest with instead of increasing the investment loan.  Perhaps it’s my conservative side coming out, but why leverage if cash is available to invest with?  I may, on occasion, dip into the HELOC balance to invest in opportunities that require large amounts of cash, such as an investment real estate transaction.

As that is my tentative plan, the question now is, how should I structure my accounts?

Ideally, to keep it simple (I already have too many investment accounts), I would like to add to my existing leveraged portfolio, but with new cash.  However, mingling regular cash with a leveraged investment loan may get messy with regards to the tax deductibility of the investment loan.  So I sought out a tax expert, Tax Guy with my concerns.  Here is what he came back with:

Co-mingling cash contributions to your leveraged investment account “may” affect the deductibility of interest. Provided you can track each cash contribution, the worst case scenario would be a proportional split of the interest.

Example:

Assume you have fully paid off the instalment portion and end up with a HELOC of $200,000 and a portfolio valued at $300,000. At the beginning of the year, you place an additional $10,000 of cash in the brokerage account. The account earns 7% for the year and has a FMV of $331,700 at the end of the year.

The interest you can deduct should be in proportion to the amount of the account you have funded with the loan or 90.4%.

Again his would be a worst case scenario (provided you can always track each dollar). Best case scenario would that the CRA would allow you to deduct the full interest from the HELOC although this would get messed up if you decide to take funds out of the account. Withdrawals would most definitely affect interest deductibility.

I would recommend you use a separate brokerage account for cash investments and keep it separate from your leveraged investments.

The idea of tracking every non-borrowed dollar deposited into the leveraged portfolio does not appeal to me, so I will have to resort to using an existing non leveraged, non-registered account or opening a brand new stock brokerage account.  If you’re a tax expert, I’d like to hear your take on this as well.  For those of you who are using the Smith Manoeuvre strategy, what are your plans once the installment portion of your mortgage is paid off?

Update: After many questions in the comments, Tax Guy revised his explanation:

Assume you have fully paid off the instalment portion and end up with a HELOC of $200,000 and a portfolio valued at $300,000. At the beginning of the year, you place an additional $10,000 of cash in the brokerage account. The account earns 7% for the year and has a FMV of $331,700 at the end of the year. At the end of the year, you take out the $10,000 and use it for a personal expense.

Prior to the withdrawal, the HELOC funded 97% of the account. This proportion would be preserved following the withdrawal but the same proportion may affect the amount of interest deducted. Thus only 97% of the HELOC interest would be deductible.

Popular Posts:

• How capital Gains Tax Works
• How Dividend and Interest Income Tax Works
• Registered Education Savings Plan (RESP)
• Top Cash Back Credit Cards in Canada
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

As well, the exclusive discount variable mortgage rate offered to MDJ Readers ends on Nov 1, 2009 (Sunday). So if you are in the market for a mortgage, P-0.25% is as good as it gets these days! See here for details.

Great Bull or Bulls–t @ Canadian Money Forum

5 Reasons To Dump Your Strict Budget @ Frugal Dad

How effective are dividend stocks in downturns? @ Thicken My Wallet

Money Management Software For The Desktop: YNAB 3 Review @ The Digerati Life

One More Reason to Avoid Labour-Sponsored Funds @ Canadian Capitalist

Wokai: Support Chinese Small Businesses through Microfinancing @ Sun’s Financial Diary

Socially Responsible Investing @ Four Pillars

What if You were Required to Share your Finances? @ Lazy Man and Money

Take it Like a Man or Invest Like A Woman? @ The Financial Blogger

how to keep a customer happy @ Brip Blap

My Bad Money Habits @ Canadian Dream

Finding the Value in Money @ My Dollar Plan

Commodity Trading Advisors @ Where Does All My Money Go

Bond Fund Investing @ Money Smart Life

Pension Reform Promised Soon @ Michael James on Money

How to Save Money for Christmas in a Short Amount of Time @ Generation X Finance

Popular Posts:

• Canadian Discount Brokerage Comparison
• Top 6 ways to Save on Auto Insurance
• High Interest Rate Savings Accounts
• MBNA SPG Credit Card Review
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

For a short while after graduating from University I worked at a collection agency. It was not a lot of fun when I was told by supervisors and trainers to be harsher on customers and threaten them as needed. Not surprisingly I left the agency fairly quickly, but I learned a lot from the inside. I learned the laws as well as how agents manipulate these laws.

Should a situation arise where you have to deal with a collection agency I hope the following tips can help you through this awful experience.

Educate Yourself

The first thing you need to do is educate yourself. What can a collection agent say or do? When can they call? What are your obligations? Understand your rights as well as your responsibilities.

In Canada collection agencies are regulated by provinces, although most have similar laws, some details will vary. Here is the collection agency act for Ontario. In the US they have the Fair Debt Collections And Practices Act.

Do Not Ignore

If the unfortunate happens and you do end up having an account in collections, do not ignore the calls and letters. Ignoring the issue will not get you anywhere, talk with the agent and try to find an appropriate solution for your financial problems. If it’s in 3^rd party collection, the agent will have some discretion over the account.

Keep Record

Keep a record of everything you do and every conversation you have with the collection agency. If you mail a letter ensure it is registered and always ask them to send you everything in writing. Have phone conversations recorded, although you may need permission for this, it can go a long way when needed. Always ask for the persons full name and ID number, write down the time and date of the call.

What Collection Agencies CANNOT Do

Here are a few things the collection agency cannot do:

• A collection agency may NOT contact you until six days after they have sent you a written notice. The notice should include all the following information: The name of the ORIGINAL creditor, the balance owing and the name of the collection agency.

• They cannot contact you before 8am and after 9pm during the week and before 1pm and after 5pm on Sundays.

• They cannot contact you more than 3 times in a seven-day period regarding the same debt.

• Disclose any information to anyone else but you, they cannot say it is a collection agency calling or in anyway reveal that you owe money. This also applies to voicemails; they cannot reveal any details on a voicemail.

• If you feel that the agency has violated any of the above rules or in anyway has harassed you record the date, time and details of the event and contact your consumer protection agency.

When speaking with a collections agent be professional and try to solve the issue rather than trying to avoid it or get in a fight.  Remember they are just doing a job.

Once an account is with a collection agency you can no longer solve the matter with the original creditor so do not try to contact them. You will only give yourself more headache and create confusion.

This is a guest article by Ray, the owner and primary author of Financial Highway, where he discusses investing, saving and practical money management concepts. You can check subscribe to his RSS feed or follow him on Twitter.

Popular Posts:

• Canadian Discount Brokerage Comparison
• Top 6 ways to Save on Auto Insurance
• High Interest Rate Savings Accounts
• MBNA SPG Credit Card Review
• Child Care Tax Credits
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

Halloween is here once again, it’s hard to imagine where time goes.  It seems that the more we age, the faster time passes.  

This year, we expect a lot of trick or treaters ringing our doorbell as our street is now fully developed (with street lights and everything!).  I’ve heard rumour that there are over 200 kids in our immediate area, so I guess it would be a good idea to be over stocked with treats than under prepared.  In terms of treats, we typically do the chips and bar thing, like Kathryn, we purchase our Halloween treats from Costco. 

Nothing too scary to report in Octobers net worth summary.  Most of the growth is due to steady savings and some portfolio growth.  I did see a fairly signifant correction in my non-registered account as a speculative stock I own took a dive. 

With regards to liabilities, if you take a look at the mortgage balance, you’ll see that it’s within striking distance of being completely paid off.  I’m actually in a bit of turmoil with regards to what I’m going to do with the large HELOC space available.  Should I continue to use the HELOC to invest with?  Or should I use the increased cash from the previous mortgage payment to fund my investments?  Or perhaps a combination? 

Assets: $ 470,500 (+0.99%)

• Cash: $4,500 (+0.00%)
• Savings: $16,500.00 (+22.22%)
• Registered/Retirement Investment Account: $73,800.00 (+2.22%)
• Pension: $27,700.00 (+0.73%)
• Non-Registered Investment Account: $16,500.00 (-4.07%)
• Smith Manoeuvre Investment Account: $51,500.00 (+3.00%)
• Principal Residence: $275,000 (+0.00%) (purchase price)
• Vehicles: $5,000 (2 vehicles) (-16.67%)

Liabilities: $85,500.00 (-1.61%)

• Tax Liability: $3,000 (-0.00%)
• Principal Residence Mortgage (readvanceable): $29,200.00 (-4.89%)
• HELOC balance: $53,300 (+0.19%)

Total Net Worth: ~$385,000.00(+1.58%)

• Started 2009 with Net Worth: $309,950.00
• Year to Date Gain/Loss: +24.12%

Some quick notes and explanations to net worth questions I get often:

The Cash

The $4,500 cash are held in chequing accounts to meet the minimum balance so that we pay no fees (accounting for regular bill payments). Yes, we do hold no fee accounts also, but I find value in having an account with a full service bank as the relationship with a banker can prove useful.

Savings

Our savings accounts are held with PC Financial and ING Direct. We usually hold a fair bit of cash in case “something” comes up. The “something” can be anything that requires cash such as an investment opportunity that requires quick cash or maybe an emergency car/home repair.  We also need cash to cover any future tax liabilities.

Real Estate

Our real estate holdings consist of a primary residence plus a rental property. The value of the principal residence remains valued at the purchase price despite significant appreciation in the real estate market that we’re in.  I will most likely be adjusting the value of the home come the new year.

Popular Posts:

• How capital Gains Tax Works
• How Dividend and Interest Income Tax Works
• Registered Education Savings Plan (RESP)
• Top Cash Back Credit Cards in Canada
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

Employees who feel valued are more likely to stay long term with an organization. A basic paycheck does little to motivate people to go the extra mile. A little positive feedback motivates people and reduces attrition rates. Most of these ideas have little financial cost and yet companies have the potential to save a lot of money by not having to hire and train new people, having workers who consistently work harder and who are loyal to the organization.

Here are a number of different currencies.

Financial Remuneration

This is basic pay. It’s my agreed upon wage. It’s very motivating in terms of keeping my job but doesn’t go much beyond that. It absolutely needs to be there for most people. If you work in non-profit, you may have a number of volunteers. It’s especially important to pay your volunteers with a different kind of currency if you have any hope of keeping them long term.

Financial Bonus

A financial bonus can be tied to company profit or individual effort. It’s a monetary bonus on top of a regular salary. Sadly, regular yearly expected bonuses become much like regular salary. Unexpected bonuses or bonuses that individuals can work towards can be a great way to increase morale and motivate employees.

Token Bonus

A token bonus is a small gift that recognizes an employee’s effort. This might be a gift certificate, a book or in the case of RIM employees, tickets to a U2 concert! It doesn’t have to cost much but recognizes effort in a tangible way. I know of one large company whose employees make signifiant salaries. Yet the weekly meeting where one outstanding employee receives a $20 gift certificate to a local restaurant, has been a huge motivating force.

Public Verbal Recognition

Public verbal recognition occurs when a supervisor publicly recognizes employees. It may be in front of one or two other employees or in a larger group meeting. This is the one that is farthest from what motivates me. I have a supervisor who does this regularly and I’m often embarrassed to be publicly recognized. I don’t like being the centre of attention. For others, receiving public recognition is key to feeling valued.

Private / Written Recognition

I confess. This one is my currency. During an interview when an employer brings up remuneration, I’m often tempted to hold up a sign that reads, “Will work for appreciation.” All it takes is a one line e-mail that says, “Well done”, “Good job on the presentation”, “Keep up the good work”, and I’m good to go for months. I thrive under authentic feedback.

Positive Formal Review

For some, receiving a positive formal review makes all the difference. It’s a formal tangible document that becomes part of that person’s employment history. It shows quantifiable areas of success and growth.

As an employer, it’s important to figure out what it is that motivates your employees and helps them to feel valued and appreciated. One of the best methods is to try them all and see what works. Don’t be surprised when different people are motivated by different currencies.

People are discouraged in these difficult economic times. I’ve heard from many recently that morale is low in their organization. Remunerating people in their currency is a great way to increase morale and encourage employees. It doesn’t have to cost a lot but the dividends are priceless.

What’s your currency?

Kathryn works in public relations and training for a non profit. In her off hours, she volunteers as a financial coach helping ordinary Canadians with the basics of money management. Her passions include personal finance and adult education. Kathryn, along with her husband and two children live in Ontario.

Popular Posts:

• Canadian Discount Brokerage Comparison
• Top 6 ways to Save on Auto Insurance
• High Interest Rate Savings Accounts
• Top Cash Back Credit Cards in Canada
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

Trading has been a hobby of mine for the past few years and I must admit that the ability to consistently trade profitably is a challenge.  This book is written by a well known trader who goes over some of the psychological barriers of trading which he believes is perhaps the largest obstacle that traders, or aspiring traders, face.

About the Author:

According to the book:

Van K Tharp, Ph. D., is an internationally recognized consultant and coach to traders and investors, as well as the founder and president of the Van Tharp Institute. He is the author of multiple bestselling books on trading and investing, including Trade Your Way to Financial Freedom, Safe Strategies for Financial Freedom, Financial Freedom Through Electronic Day Trading, The Definitive Guide to Position Sizing and The Peak Performance Course for Traders and Investors.  Tharp is a popular speaker who develops and presents workshops for trading firms and individuals around the world. He has published numerous articles and has been featured in publications such as Forbes, Barron’s, Market Week, and Investor’s Business Daily.

About the Book

As I mentioned above, this book really focuses on the psychological side of trading instead of technical.  It talks about creating a system for yourself starting with eliminating limiting beliefs, developing a business plan/trading system and position sizing.

This book is not for you if you are looking to learn about charts and technical indicators.

Here is what Super Trader consists of:

Part 1: Working on Yourself:  The Critical Component That Makes It All Work

Part 2: Developing a Business Plan:  Your Working Guide to Success in the Markets

Part 3: Develop a Trading System That Fits Each Market Type You Plan To Trade

Part 4: Understanding the Importance of Position Sizing

Part 5: More Ideas for Producing Optimal Trading Performance

Final Thoughts

This book is for someone who is serious about taking their trading to the next level.  Tharp believes that a successful trader isn’t one who knows all the technicals of trading but someone who has mastered the psychology of trading and using a sound business plan.

Want a Free Copy?

McGraw-Hill was generous in offering Million Dollar Journey readers the chance to win 3 copies of the book.  The details are below:

1. Sign up for the new MDJ Money Tips Newsletter for an entry.

Sign up for the Million Dollar Journey Money Tips Newsletter absolutely free. We respect your privacy – your information will never be given or sold to third parties. As well, you can unsubscribe at any time.
Name:
Email:



2. Follow me on twitter to receive an additional entry.

• Only those with a North American mailing address may enter (publisher rules, sorry).
• Contest will end Sat 5pm EST Oct 31, 2009 and the winner announced shortly after!

Once upon a time, discounted variable rate mortgages were the norm. However, the credit crisis in 2008 changed all that, and actually pushed variable rates well above prime rate.

With the economy starting to come around (supposedly), and global credit easing, variable rate mortgages are getting cheaper again.  Just recently, the big banks started offering variable rates at prime which is a great improvement over the prime + 1% they were offering at the peak of the crisis.

However, you probably aren’t satisfied with paying prime on your mortgage, you want a discount off prime.  Until now, that hasn’t been possible.

Our friends and blogger colleagues at Canadian Mortgage Trends have a special offer exclusively for Million Dollar Journey readers.  They are offering a variable rate mortgage at Prime – 0.25%!

Overview:

*  Canada’s lowest variable rate (as far as we know!)
*  From the country’s most reputable lenders
*  15-20% lump-sum pre-payment options
*  Optionally increase payments up 15-100%
*  Lock into a discounted fixed rate at any time without cost
*  Available readvanceable line of credit (80% LTV maximum)

This is a limited time offer which expires November 1, 2009.  If you are in the market for a mortgage, you can read about the details here.

Weekend Links

Try an auction for savings @ Canadian Money Forum

CPI: How Many Negatives Make it Deflation? @ Canadian Personal Finance Blog

why McDonalds is a good investment @ The Money Gardener

How Much Does Raising A Child Cost? @ Canadian Finance Blog

Living Will @ Financial Highway

Money Tip: Keep a one page account summary @ Canadian Capitalist

Financial Peace Through Planning @ Five Cent Nickel

5 Recent Examples of Consumer Food Price Inflation in Second Half of 2009 @ Money Energy

Popular Posts:

• Canadian Discount Brokerage Comparison
• Top 6 ways to Save on Auto Insurance
• High Interest Rate Savings Accounts
• MBNA SPG Credit Card Review
• Questrade Review
• Are Hybrid Vehicles Worth it?
• Tax Free Savings Account (TFSA)

Copyright 2009 MillionDollarJourney – All Rights Reserved

This week is all about tips for buying and selling on Kijiji or Craigslist:

Use photos

It’s extremely easy to post photos. You don’t even have to register to post an ad with a photo. It lets people see what your selling and clearly shows the the state of the item.

Post a price

I don’t even contact a seller who says ‘please contact’. Just tell me what your price is. If I can’t see it in person, I’m not about to start negotiating a price.

Price reasonably

We have had tremendous success selling anything we’ve posted on Kijiji really quickly. Usually it’s sold within hours of posting an ad. We’ve sold everything from wagons, winter coats, bedroom sets and even a piano.

Before posting I do a search for similar type items and put the price at just a little bit under. So for example, when selling the wagon, I did a search for the same one and found 4 of them for sale for $40. I posted ours for $35 and it was gone within the day.

Do your research

My husband has been keeping his eye out for an American made Fender Stratocaster. He saw one recently that seemed like a reasonable price. Then when he read the fine print, he realized it was a low end model and the person was in fact selling a used one for more than they go for new! Be honest with what you post and do your research to make sure you’re getting a good deal.

Look outside your own city

When looking for our bedroom set, we set a budget, saved some money and then started looking. We knew we wanted something in solid wood and we were hoping for a four poster bed. We checked regularly and still found nothing. Finally we expanded our search to surrounding cities. Immediately we found the perfect set 100 km away. Even with the cost of renting a van to pick it up, we still came in $250 under budget and we found exactly what we were looking for.

Check frequently

Checking regularly is the key to finding exactly what you want. The good stuff goes fast. My brother-in-law furnished his entire cottage from Craigslist. It’s gorgeous. It doesn’t look used. It looks like something out of a magazine and suits the cottage perfectly. He said he did it by checking every morning and every evening. He had a list of what he was looking for. He knew his budget and he kept checking.

Use the search feature

Trying out Kijiji the first time can seem overwhelming. There are thousands if not hundreds of thousands of items posted. If you type in exactly what you’re looking for and define the parameters a bit, you’ll only see the types of ads you want.

Stay safe

Use a generic e-mail address, not one with your name in it. Don’t post your address online. I don’t even post my home phone number. I usually let interested buyers contact me by e-mail at which time I give them my address and phone number. I don’t want someone looking me up and showing up at my door without notice.

A friend learned this lesson the hard way after she posted her daughters dance shoes online. Within the hour a man showed up at her front door saying he just looked up her last name and tracked her down by the google map on the site. He needed those shoes now! Ever since, she switched to her generic e-mail that doesn’t contain any personal information. There are some weirdos out there but there are also ways you can protect yourself.

Make it readable

f u wnt me 2 buy wot U r selln, plz uz real wrds. I don’t want to have to use google translator to figure out your text speak. Explain what the item is. State your price. Use some descriptive words. Explain how you’d like to be contacted. Use spell check.

Use Kijiji Etiquette

• Once someone has said they are coming to purchase your item, give them a time limit and edit your add title with the letters PPU at the end. This stands for “pending pick up”. If the person is a ‘no show’, you can remove the PPU.
• Normally we get anywhere from 1-10 replies to our ads. I write to the first one and explain they were the first to reply. They give me a time. I explain if they aren’t there with an hour of the time they stated, I will offer it to the second person. I also contact the next people in order and explain that they are next in line and will be contacted if the first person doesn’t show. It’s irritating to reply to an ad an hear nothing back.
• As soon as the item has been picked up an paid for, delete your ad.

Using Kijiji or Craiglist is a great way to get good stuff for a great price. It’s also a great way to sell the things you no longer want and get some money for it!

Do you have any additional tips that I might have missed?

Kathryn works in public relations and training for a non profit. In her off hours, she volunteers as a financial coach helping ordinary Canadians with the basics of money management. Her passions include personal finance and adult education. Kathryn, along with her husband and two children live in Ontario.