why gold is still king

Why gold is still king

Why gold is still king

In the media these days we are hearing a lot about bitcoin and other forms of “cryptocurrencies”. One day Bitcoin is trading above $15,000 US and the next it is trading below $8,000 US. Many people think there is money to be made with Bitcoin; they believe it can be used in the same manner as Gold, but I will discuss next, here is why gold is still king.

Alternative investment

With distrust or a lack of confidence that stocks will still rise, stocks are sold and cryptocurrencies are purchased. Many believe if the stock market crashes, cryptocurrencies will rise. This alternative form of investment is growing more common. Some people are shying away from gold as the alternative investment but here is why gold is still king, but first we will explore how gold and cryptocurrencies are alike.

How gold and cryptocurrencies are alike

  1. Gold, like cryptocurrencies does not yield any income. No interest or dividend income is earned regardless of how long you have owned them.
  2. Both can be used as actual currencies in that goods or services can be bought or sold with gold or cryptocurrencies providing the parties involved can agree to what their value is.
  3. Speculation is inherent in both alternative forms because they are used as fear fighters; when people are fearful the markets will drop, money is diverted to gold or cryptocurrencies.

From this comparison it is evident that gold and cryptocurrencies are similar in many ways regardless, now let’s discuss why gold is still king.

Why gold is still king

  1. Gold is tangible, you can feel it, smell it, taste it, see it and hear it if it hits the floor. If the markets crash putting us in a depression would you want a tangible shiny object (humans throughout history have proven we value the shiniest of objects) or something you cannot see?
  2. Gold has been around for centuries and is much more stable than other forms of alternative fear investments. Check out the historical price history chart of gold here while you can see the historical price history chart of Bitcoin here.
  3. Gold is more actively traded throughout the world and is far less susceptible to fraud. When was the last time you heard of a major gold heist whereas a large Bitcoin heist was in the media only two months ago, check out the story here. Gold is dense and very heavy and unlikely to be stolen in large amounts. Someone cannot just hack into a bank and steal physical gold!

Taking action

Next time you hear the rave reviews and subsequent busts of Bitcoins and other cryptocurrencies, ignore it. Ignore the hype, focus on your life, not all the unwanted and confusing noise. The media portrays a Bitcoin as an actual coin because we do not know what else to think of it as and that is scary. If we cannot see something for what it is how does it really exist?

 

43-fast-easy-ways-save-money-today

43 FAST AND EASY WAYS TO SAVE MONEY TODAY

43 FAST AND EASY WAYS TO SAVE MONEY TODAY!

Saving, saving, saving. 43 fast and easy ways to save money today! Saving is extremely important because it gives us a financial base to do many things in life:

  1. Travel
  2. Retire when we want
  3. Having financial security for our family
  4. And so much more!

Many of us think that saving is tough and that it takes too long. We rather spend our money today for instant gratification. The truth of the matter is without debt, saving to do what we want in life does not take very long. The truth of the matter is saving is fast and easy! Here are 43 fast and easy ways to save money today!

Simple ways to save around the house

  1. Shut off lights not being used.
  2. Don’t leave the TV or radio on when not being used.
  3. Invite your friends over for a potluck, you supply the house and utensils and water, they bring the food!
  4. Take care of clothing and household items so they will last longer.
  5. Turn down the thermostat at night while you sleep and during the day when you are at work. Wear thicker clothing in the house to stay warm during the winter.
  6. Insulate your house, cover up patio doors that are not used during winter months with insulation.
  7. Seal windows and doors to eliminate drafts.
  8. Plant an edible garden.
  9. Use a simple cleaning mixture such as water and vinegar to clean the exterior of windows and siding instead of purchasing expensive cleaning chemicals.
  10. Use blinds and drapes to block the sun out your house to help keep it cool.
  11. Find a roommate and cut down on your rent or mortgage payment!
  12. Cut down on the the most expensive grocery items. Meats, dairy and convenience items such as granola bars are expensive. Substituting these foods with others such as chick peas, lentils and beans will give you the same, if not more, protein and contain a number of vitamins and other nutrients.
  13. When you feel like you need to eat try having a glass of water first and waiting 20 minutes. You may realize you simply needed hydration rather than food.

Simple ways to save on your vehicle

  1. Carpool to save on fuel.
  2. Use public transportation to save from purchasing a vehicle and insurance.
  3. Keep your tires inflated to the recommended levels so your car can travel efficiently.
  4. Make sure to keep your car regularly washed to prevent the buildup of salts and chemicals that encourage rust.
  5. Maintain your car with regular oil changes and air filter changes, remember your car has an engine and cabin filter
  6. Use a front window cover/reflector to block the sun on a hot day instead of blasting your AC.
  7. Keep your car in the garage to shelter it from harmful weather (i.e. hail).
  8. Use seat covers to protect the seat fabric from everyday wear and tear.
  9. Clean out and vacuum the inside of your car on a regular basis to reduce garbage that could cause stains and other interior damage.
  10. Use Rain-X Original Glass Water Repellent to save from having to use window washer fluid and from wearing down your window wiper blades.
  11. Get window and paint chips fixed immediately before you have to replace an entire window or repaint an entire part of your vehicle.

Simple ways to save on your daily spending

  1. Use reusable containers to store stuff and to drink water from.
  2. Try to buy items you would normally use on sale, buying items you do not need, even though they are on sale, does not help you save.
  3. Prepare your lunches at the beginning of the work week which saves you time throughout the week and decreases the amount of times you eat out.
  4. Reduce your expenditure on eating out by cooking meals ahead of time or eating out on discount nights.
  5. Ensure you’re maximizing your points systems (air miles etc) without overspending just to earn points.
  6. Do not go grocery shopping when you are hungry.
  7. Break bad habits; remove the temptation of impulse buys and other costly habits.
  8. Brew coffee at home you could just save yourself $1,784.85.

Simple ways to save on debt

  1. Determine if you can afford a purchase based on total purchase price and not just based on the monthly payments.
  2. Set up a repayment schedule and budget BEFORE incurring debt.
  3. Make accelerated payments on your debt, this reduces interest exponentially.
  4. Make a larger down payment on debt to decrease the overall amount you owe.
  5. Take advantage of anniversary payment options.
  6. Shop around and negotiate on mortgages, for a great read check out our Mortgage Talk series.
  7. Avoid auto loans, they generally carry higher rates of increase, if you can afford to borrow to purchase a car, try a home equity line of credit.
  8. Do not carry balances on your credit card, if you do not have enough cash to make the purchase don’t put it on your credit card.
  9. Set up a micro savings plan – automatic transfer of $1 a day to savings or paying down debt so that you can save and pay down debt without thinking about it.

Simple ways to save while making a difference

  1. Volunteer your time to a local charity or community organization instead of making a cash donation.
  2. Help elderly neighbours or those less mobile to and from the local store, to and from the park; even helping them carry groceries from their car is a great way to lend a helping hand.
  3. Sell unused household items, make some extra cash and have your stuff go to someone who needs it more than you do.

Bonus way to save

How Mr. Wonderful saves money every morning

How Mr. Wonderful saves money every morning

How Mr. Wonderful saves money every morning

Mr. Wonderful, Uncle Kevin, Kevin O’Leary saves money every morning just like you! We have been following Kevin O’Leary for many years, have read a number of his great books and have taken to heart a lot of his fantastic advice on money. You and him have at least one thing in common that is how you both save money every morning. Do you want to know how Mr. Wonderful saves money every morning like you?

Saving money every morning

Would you believe that you can save nearly $1,800 a year doing this one little thing in the morning? When I first heard how many of you do this I was surprised! 7 out of 10 of you do this! And it’s great!

What’s the one thing in the morning above all else? You would skip breakfast for this very thing! If you have not guessed it yet, it is coffee! Yes you save nearly $1,800 by drinking coffee every morning AT HOME. In our article How you are saving money every morning we determined a cup of coffee made at home costs $0.16 while Uncle Kevin determined the cost to be $0.20 (click the link to check out the video).

Coffee purchased outside of your home will cost you at least $1.79 and that’s a standard coffee, no mocha latte or anything fancy like that! If you drink two (2) cups at home you would save $3,600 a year and would save $5,400 with three (3) cups!

What can you do with $1,800?

The possibilities are endless with this money saved; have you even considered what you are doing with this money you didn’t even know you were saving?

Here are my top ways to use this money:

Increase your emergency fund

Increase your emergency fund with your coffee savings is a great way to keep yourself and your family protected when life happens. With a sufficient emergency fund you will not have to incur debt when life happens or use savings or investments to pay for the emergency. Increasing your emergency fund increases the amount of money you have.

Pay down consumer debt

Consumer debt carries interest rates of over 21% and it can take years to pay off the smallest of balances. By paying off this type of debt you are saving yourself a bunch of money and stress!

Pay down your mortgage

Your house and your mortgage for that matter are life’s largest expenses! Paying down these sooner will save you the most money and with more money you will have more freedom to do what you want like taking that well deserved vacation!

Take that nice week to two week vacation

You need to reward discipline and taking that vacation is a fantastic way to reward yourself! Be sure to save yourself money while on vacation as more money saved can mean more vacations!

 

Enjoy your coffee and remember you are saving money when you do! And now you know how Mr. Wonderful saves money every morning!

 

winter is coming

Winter is coming

Winter is coming

Winter is coming, for some winter is already here. The days are getting shorter, leaves are falling ever faster and we are already seeing record low temperatures for this time of the year. With winter coming, the colder weather upon us, it is time to keep ourselves warm.

The first thing that comes to mind is turning on the furnace! We also start to dress in layers and thicker ones as winter approaches. Some of us may also have automatic car starters to warm our cars up before driving. There are many more ways of getting and staying warm however not all of them cost the same. Today we are exploring how you save money while still staying warm as winter is coming!

Top tips for saving money while staying warm

Turning down the thermostat

Having your furnace run less often means more money in your pocket for that tropical vacation. Your house loses less heat at lower temperatures according to Ragsdale. Here you have a few options. First off you can turn down the thermostat for the entire winter, even by 1 or 2 degrees you can save. A second way is to have the thermostat lowered when you are sleeping and at work or school. Once again according to Ragsdale the savings having your thermostat at a lower temperature outweigh the additional cost of having the furnace work harder to heat up the house. Your third option is to lower the thermostat when you are away on vacation.

A word of caution here, do not lower your thermostat so much that you risk your pipes being frozen!

Wearing thicker and more layers

Clothing is great because it is a one time cost. If you are keeping your thermostat lower the entire winter, investing in some nice warm layers is great to stay warm and comfortable in your home. Likewise if your office is saving money the same way a nice warm and comfortable sweater at work goes a long way. Even a thin long sleeve sweater over top of a dress shirt is a great way to add a stylish layer and keeping warm!

Hats and socks are a great layer investment! You lose a lot of body heat through your head. Simply having a hat on will keep you warmer! Likewise people find themselves cold many of times and by simply putting on a pair of socks you feel instantly warmer. We have a lot of nerves in our feet, they sense when we walk across a cold floor. So protect your head and feet to stay warm this winter!

Invest in another blanket or thicker bedding

With the thermostat lower during the evening and us not moving (very much) during our sleep, we can lose a lot of heat. Sleeping with an additional blanket or under thicker materials will better retain your body heat throughout the night!

Adding insulation around the house

Do you have a patio door or large window that does not get used? Patio doors and windows are not as insulated as the house walls and are the number 1 area you lose heat. By adding foam board insulation like this to your door or window you will be increasing the heat retention of your home and will be saving you money.

A quick note on adding insulation; if your door and windows weather stripping have gaps or tears in them you should first replace the stripping. Having doors and windows airtight is the first layer of defense against the cold.

Replacing your doors and windows

If you realize your doors and windows need replacing try to get a door without windows and try to get windows with additional panes of glass.  Double or triple pane glass is more expensive however the cost savings can add up quickly especially if you are turning down the thermostat. If you are looking to do some home renovations this time of year check out Union Gas’ Home Reno Rebate.

Winter is coming and you want to be ready however not break the bank while doing so. Follow these winter is coming suggestions above, stay warm and save money!

Looking for other ways to save?

If you are looking for other ways to save check out these other great articles from us!

Saving money on vacation

6 ways to save with a roommate

37 fast and easy ways to save

Saving Money on Vacation

Saving money on vacation

Saving Money on Vacation

Saving money on vacation can be tough; vacations have many costs: there are flight costs, baggage fees, hotels, shuttle costs, food and other incidentals. With many costs and places to book flights and hotels it can be difficult to truly save on vacations. Here are some ways for saving money on vacation.

Travel with a partner

Two can live more cheaply than one is a famous phrase when talking about your everyday living. The same can be said about vacationing! Here are a number of ways traveling with a partner can save you money:

  1. Accommodations may cost less if you are booking a room that is not dependent on the number of occupants.
  2. Sharing luggage and traveling lighter is a great way to save. With discount airlines you have to bay for baggage and with going with less you save more! My friends and I utilized this strategy while travelling Europe; we brought less bags and shared the space!
  3. Sharing things like toothpaste, splitting the cost of a carbonated beverage, etc. can save you money!

Book early/booking last minute

You can save both ways here. In many cases it is much cheaper to book your flights and hotels early. Prices are lower earlier on as airlines and hotels want to book people well in advance. If you book at the last minute you will find yourself paying a lot more because the airlines and hotels know you are probably desperate at this point!

However sometimes booking last minute can reward you with fantastic deals. European airlines like easyJet and Ryanair offer some amazing last deals. I have heard of people buying a flight for 1 Euro! Talk about procrastination paying off!

Depending on where you are travelling and how you are travelling it is worth looking into whether you should book early or not!

Know the exchange rate

When travelling to different countries it is important to know how much things cost in your home currency. Prices in foreign currencies can be deceiving and at first glance something may appear cheap or too expensive. Converting to your home currency will put the price in terms you can relate to.

When comparing prices to what you are used to, it is important to recognize that the overall cost of things may be cheaper or more expensive than back at home. Many places have to import products from far away which you may expect the cost to you will be higher. Likewise if a country can import goods cheaper you may expect to spend less on goods.

Negotiate where possible

In some countries, not all, it is customary to negotiate on prices. Many Caribbean and Southern American countries are like this and many in Europe are as well. You may be able to negotiate a great price for clothing, food and souvenirs. Before you travel research whether it is customary to negotiate, five minutes on Google may save you hundreds of dollars!

Know how much to tip

Tipping is not customary in all countries. In North America a 15% tip is standard however in many countries tips are not expected or a much different rate than what you are used to. It is important to know before you travel what the expectation is; there is no need to add a tip onto a higher price that already has a tip factored in! If you had excellent service, of course, you can certainly pay for to show your appreciation but it is not necessary in all cases.

Shop around

Taking time to put in some research time investigating different flight, hotel and transportation options can go a long way. Not all prices are the same; there are many websites that let you find hundreds of travel options and they all claim to find the best price. Some may include things like breakfast or extended check out periods so it is important to compare and dig around for the best deal that works with your travel plans.

Top Tips Saving Money on Vacation

Plan ahead. Even if you plan on buying that plane ticket at the last minute plan for it! Be prepared, things can change at the last minute and it’s easier to change your plan than try to create one at the last minute.

Obtain knowledge. Do some research of where you are travelling and how you are getting there. Learning about the customs of the place, what prices are like relative to your home will do you well in your travels.

If you are looking for additional ways to save check out these 37 Fast and Easy Ways to Save!

is this how much you should have saved?

Is this how much you should have saved?

How much should you have saved at every age of your life? Have you thought about how much you should have saved by 20 years old? 25? 35? 45? Chasing after a certain dollar amount by age can be elusive. Is $1,000,000 enough? Would $1,000,000 be too much or is it not enough? Is this how much you should have saved?

Recently the Business Insider published an article on how much you should have saved by age. The article contains a table from Fidelity on how much you should have saved by age. Below is an example of such table:

AGE SAVING GOAL EXAMPLE: $70,000
30 1x salary 70,000
35 2x salary 140,000
40 3x salary 210,000
45 4x salary 280,000
50 5x salary 350,000
55 6x salary 420,000
60 7x salary 490,000
65 8x salary 560,000

Is this how much you should have saved?

Though this table at first appears to answer all of our questions above it is arbitrary. At the age of 65 your money problems will not disappear, you may not have enough to live on during retirement. With an expectation that you will live 10 years you will have $56,000 per year. With an expectation of living to 85 years old the amount of money per year is reduced to $29,000. Is that enough money to live on each year? It is a tough decision. The above table is interesting however not the end all strategy. What else do you need to consider?

Considerations

What else do you need to consider when determining how much money you should have saved at every age, especially your retirement age.

Pensions

Does work provide a pension? How much would you get each year? Will you be receiving a government pension as well? You will need to determine whether your pension(s) will be sufficient to fund your expected life style; consideration should be given as to whether having an additional pool of money is needed to supplement your pension.

Downsizing to build a savings

Selling your home and downsizing for retirement can put some well needed cash into your bank account. Many folks bank on selling their homes and downsizing for retirement. You can add tens of thousands to hundreds of thousands of dollars to your bank account depending on the market in which you sell your home and when you sell it. Moving to a smaller city/town where real estate prices are much cheaper gives you more money in your bank account.

Investing

Saving and investing early is a great way to get ahead! The power of compounding combined with starting early can yield you a lot more money then when starting later. You may not need to save as much later on because of the investment income being earned on your investments you build up early.

6 ways to save money with a roommate

6 ways to save money with a roommate

6 ways to save money with a roommate

Housing is one of life’s largest expenses. Mortgage payments or rent takes a heavy toll and requires a lot of your hard earned money. We may find ourselves in a home that is beyond our current needs however we do not want to downsize in anticipation of needing the space in the future. To save money in the meanwhile finding a roommate is an excellent idea! Here are 6 ways to save money with a roommate:

  1. Saving on rent

A two bedroom apartment is a great dwelling to split the rent cost in two! You occupy one room while your roommate occupies the other. Rent is shared (perhaps 50/50 or 60/40, depending on the size of each room) between the two of you.

  1. Saving on your mortgage

Just bought a house and have a few rooms available? Find a roommate or two and charge them rent! The rent you earn will decrease your net cash outflow.

  1. Saving on your mortgage 2.0

In larger and more expensive real-estate markets such as Toronto and Vancouver, many people cannot qualify to purchase a home because of how high the housing prices are. It is becoming more common for people to buy houses together, two incomes combined yield more purchasing power and qualifies the people to purchase these homes. The dual incomes also work together to make the mortgage payments affordable.

  1. Buy in bulk

Now there are two mouths to feed and now is a great time to make bulk purchases! Buying in bulk can save you money and the food won’t go bad because there are you and your roommate chowing down. Bulk Barn and Costco are two great places to buy your favourite foods and household items in bulk!

  1. Carpooling

Going somewhere? Your roommate and yourself may be heading to the same place (i.e. school, work) or at least the same area (i.e. entertainment district, business district). Take turns driving to and from these places to balance out the savings on gas.

  1. Things you never thought of

There are a number of other things to split on including: furnishing common spaces (best to have a written agreement on who gets what when you go your separate ways), sharing an unlimited metro pass when the other person is out of the city, borrowing clothes is another possibility for one off occasions (ladies: this saves you from buying a dress, men: it saves you from buying a sports’ jacket).

How the world has changed since July 12, 2017

How the world has changed since July 12, 2017

How the world has changed since July 12, 2017

On July 12, 2017 the Central Bank of Canada raised its key interest rate by 0.25%. This was a major concern to people, however we saw that the world kept spinning. Even though the world kept spinning there are a number of important changes affecting you. Let’s dive in on how the world has changed since July 12, 2017.

Interest rates charged from lending institutions (i.e. prime rate) like RBC increased by 0.25%.

What this means for you: Debt products like mortgages, lines of credit, etc. carry interest rates that are dependent on the prime rate. If you have a variable rate mortgage your interest rose by 0.25%; if you have a fixed rate mortgage your interest rate is still locked in until your term needs to be renewed.

A practical example:

Leveraging off the example from our Rent vs. Buy discussion on April 9, 2017

  • Home price of $450,000
  • 5% down payment of $22,500 for first time home buyers
  • 25 year amortization
  • 5 year term
  • Old interest rate of 4.64%
  • New interest rate of 4.89% (4.64% above plus 0.25% increase)
4.64% Interest Rate 4.89% Interest Rate Change
Monthly mortgage payment $2,495 $2,558 $63 increase
Total Interest Paid $304,039 $322,814 $18,775 increase ($751/annum)

In one day your mortgage now costs you an additional $19,000 or $751 per year! You can do a lot with that money especially if you invested that money: if you invested $751 per year for 25 years, at a 2% interest rate, you would have nearly $25,000 saved or $1,000 per year in simple terms!

If you are considering renting or buying you need to read Rent vs Buy: The Debate of a Lifetime and how to save on your mortgage especially now that the cost of your house just increased by $19,000!

Very low risk investing just got more attractive

The rate you earn on Guaranteed Investment Certificates increased with some above 2%. With Canada’s inflation rate cooling to 1.3% your real rate of return is now close to 1% which for very low risk investments is not too bad.

The Canadian dollar strengthen against the US dollar

You may be asking yourself how does one currency strengthen against another currency; in other words how it takes less Canadian dollars to now buy US dollars. Here’s how it works.

#1 – Central Bank of Canada increases interest rate

#2 – Low risk investment yield increases

#3 – Investors seeking low risk higher yield investments purchases Canadian dollars

#4 – Canadian dollar increases compared to other currencies because of higher demand

#5 – Canadians have greater purchasing power in foreign markets

 

How you can protect yourself from the negative results and capitalize on the positives

  1. Reduce your debt immediately!

Reducing your debt by making anniversary payments on your mortgage or lump sum payments on your lines of credit can take a huge chunk out of the interest you have to pay. Learn how to reduce your debt here.

  1. Consider moving money to capitalize on higher yields

If you have money sitting around in an every savings account not earning a lot, consider using GICs or other low risk investments to earn a higher yield.

  1. Now may be a good time to make foreign purchases

Canadian investors have historically not been able to capitalize on a strong currency meaning we always needed to spend more Canadian dollars to buy foreign currencies. In the past number of years, we have been cautioned from investing in the US because of the exchange rate, however it is now more affordable to purchase US dollars.

leveraging work travel for vacation

Leveraging work travel for vacation

Leveraging work travel for vacation

Everyone needs a vacation from work and the day to day grind. Leveraging work travel for vacation has many benefits including:

  1. Destressing (stress is known to cause many negative health consequences)
  2. Recharging your batteries so you feel motivated when heading back to work
  3. Reconnecting with family and friends which is important for social bonds

However going on vacation can be tough especially with a family. A staycation is good every once in awhile however we want to venture outside our homes and see a bit of the world. There is the obvious issue of money; flights and hotels are expensive and then how do you get from place to place? The costs quickly add up and you haven’t even left your house yet! So how can you get your family on vacation without breaking the bank?

A great way to go on vacation and save some money is to leverage off of work related travel to conferences. This practice is fairly common and allows for both work and play.

What is leveraging work travel for vacations?

Let’s say work is flying you out and putting you up in a hotel for a weekend for a conference. Instead of just heading there yourself and coming back as soon as the conference is over you have your family come and stay with you. After the conference is over you and your family stays there for a few extra days and hit up the beach, the closest theme park, do a little shopping and everything in between!

What are the benefits?

  1. Having the family vacation everyone needed to relax and destress
  2. Spend quality time with your family who you may get to see as much as you like
  3. Have fun exploring a new place or hitting up the go to family vacation spot
  4. Saves you money from a standalone family vacation

How does it save me money?

Because you are travelling for work, your employer would be paying your hotel costs, your travel to and from the conference and meals providing the conference did not already include them. So the cost of one entire person is covered!

You would have to pay the way for the rest of the family of course (i.e. airfare, hotel, food, excursions).

With the one person cost savings that may be enough to stay a few extra days or do something you normally would not do otherwise.

How to execute this strategy

Plan ahead – take a look at your upcoming conferences and see what there is to do around that time of the year. Talk with your spouse and your children about what they want to do.

Consider your spouse – Remember your spouse will be taking care of the kids all alone during the day while you are at your conference so get them on board ASAP! Perhaps one night you take the kids and let your spouse have a free night to relax on their own.

Other ways to save

If you are looking for other ways to save with children check out last week’s article.

How to save with children

How to save with children

We have talked about and discussed in length a couple of life’s largest expenses; your home and your vehicles. Now these expenses, especially your home is a very large expense, one that you will be paying for nearly a third of your life! Your home may cost you hundreds of thousands of dollars and it is a very tough choice, deciding which home to purchase.

However there is one unspoken about expense that may be larger than your home. This in life takes a lot of your time, countless hours of effort, your money at every step of the way and can be an emotional roller coaster. What is this expense you ask? Your children of course! The children that you love!

How much does a child cost

According to Moneysense.ca it costs over $250,000 to raise a child up to the age of 18! $250,000 is nearly half the price of the Canadian national average of a home and 18 years is over half the time you will be paying off your mortgage. Raising two children will cost you half a million! Raising a child is no easy task let alone two children and the financial burden is much higher. Can you afford to own a nice home and raise a family? All the while having the financial means to enjoy life?

Additional cost: post-secondary education

Not only is raising a child to the age of 18 expensive compared to other of life’s many expenses, there is also the rising cost of a post-secondary education.

According to Globalnews.ca the cost of one year’s tuition fees are over $6,000. With an average post-secondary degree of four years tuition alone climbs up to $24,000. With two children the cost is $48,000.

All in raising two children will run you $548,000!

You want to give the best opportunities to your children however, the financial strain does not make it easy. Not to worry there are many ways to raise a family without such a high financial burden.

How to save with children

  1. Don’t have children

Now hear me out for a minute. Many people don’t have children, they venture through life with their significant other and they are more than happy with that decision. Children are not for everyone and not having any can save you in excess of half a million dollars!

  1. Reuse, recycle and hand me downs

Reusing and recycling items with your children are great ways to save. Instead of throwing something out, clean it and reuse it another time.

Hand me downs are great! Whether it be clothes, toys, sports equipment, you can save a ton of money by having your second or third child.

  1. Quality over quantity

Reusing, recycling and hand me downs work great when the items are of good to great quality so don’t cheap out here! I remember using hockey skates that were used by older cousins and when I grew out of them I passed them down the chain!

Buying items like bicycles that your children can grow into means they will be using the items longer and you won’t need to buy some of these expensive items over and over.