Ever wondered how much money you should have saved up based on what you earn? It’s a question I’ve been mulling over lately, especially as I plan to launch my own startup. Financial experts throw around a lot of ratios and formulas, but I wanted to break it down into something practical. Imagine this situation: earning $4,000 a month ($48,000 a year) while spending $5,000 a month. Yep, this situation is in the red right now, but let’s use this …
Category: Investment
This is not financial advice. Investing is a powerful way to grow wealth, but it has complexities. Different types of investments offer varying levels of returns, risks, and efforts. By understanding the characteristics of each investment type, you can align your financial goals with the right strategies. Let’s dive into a detailed breakdown of common investment options and their features. 1. Business Ownership (BIZ) Starting or investing in a business offers some of the highest potential returns but comes …
This is not financial advice. Real Estate Investment Trusts (REITs, pronounced “reets”) offer a unique opportunity to invest in real estate without the hassle of managing physical properties. As a bridge between traditional real estate ownership and the stock market, REITs allow investors to earn passive income while diversifying their portfolios. In this post, we’ll explore the pros and cons of investing in REITs and how you can build a balanced portfolio that leverages both Canadian and American markets. What …
Investing in the financial market can feel overwhelming initially, especially when trying to decide between stocks, ETFs, and mutual funds. Here’s a simple breakdown of the key differences to help you make more informed decisions. Stock Definition: A stock represents ownership in a specific company. When you buy a stock, you become a partial owner of that company and share in its profits and losses. Key Features: High risk and high reward: Your investment’s performance depends entirely on one company’s …
Recently, the weakening Canadian dollar (CAD) against the US dollar (USD) has raised concerns for many investors. As of December 10, 2024, the USD/CAD exchange rate is 1.4167, marking a 4.32% increase over the past year. This article explores how one might consider diversifying investments to combat inflation and currency depreciation. Note: This is not financial advice—just personal curiosity and exploration. Understanding the Current Economic Context Currency fluctuations can erode the purchasing power of savings and investments. When a …
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