Clarity Personal Finance

I'm happy to share that I've added some letters to my name - AFCC or Accredited Financial Counsellor Canada. The AFCC is a financial counselling designation and is a nice compliment to the CFA.

The CFA designation is a source of pride for me for its challenging exams and because it's an investment-related designation.

The AFCC certification focusses on financial planning, debt management and counselling.

Next up is the gold standard of financial planning - the Certified Financial Planner (CFP) designation. I'm still a ways away from this one due to the extensive hours of experience required but I'm moving in the right direction, having already taken all of the courses required.

Keep on learning, moving forward, and challenging yourself!

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Owning a home isn't required to build wealth and financial stability. You can do that as a renter - in spades!

You might feel like you've missed out on the housing boom, but the stock market has performed as well (and even a bit better) than Toronto house prices over the long term.

Home owners are locked into a ton of non-negotiable expenses (mortgage, property taxes, maintenance...) but as a renter, you've got more financial flexibility.

People who own a home often have most of their net worth tied up in it. It's a big bet! Saving and investing allows you to diversify and get easier access to your money.

You can read more in my blog post "No house? No problem."

https://www.clarityonyourmoney.com/post/no-house-no-problem

The new First Home Savings Account is expected to be available on April 1st. It's been awhile since Canadians got a new tax-sheltering tool and this is a pretty good one.

The FHSA gives you both a tax deduction up front AND tax-free withdrawals. Kind of a mash up of the RRSP and the TFSA.

There's lots to learn about this account so if you're saving for a down payment - or are even considering maybe saving for a down payment - check out my blog post. Don't miss out!

https://www.clarityonyourmoney.com/post/welcome-fhsa
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The stock market isn't for short-term investing.

Watching your investments daily will only increase your stress, since half the time they will go down in value.

Check your statements annually, and 68% of the time you'll feel good.

Check every 10 years, and 88% of the time you'll have made money.

And if you check every 20 years, it's almost certain that you'll have made money.

www.clarityonyourmoney.com

Anyone who knows me knows I love spreadsheets.

I create financial plans and strategies for people using spreadsheets.

This is an important reminder that spreadsheet plans will be imperfect. They can guide you, but they don't have all the answers.

Things change: markets, interest rates, life situation, you...so many factors.

A plan is meant to send you on a path. You need to keep checking in to make sure the path is still going in the right direction.

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The stock market has never been more accessible. Mutual funds and ETFs gives investors with even small amounts of money instant diversification. Online brokers provide direct access to markets without needing a financial advisor.

With so many ways to get invested, there's no reason to procrastinate.

You can invest in mutual funds with your bank, a financial advisor, or an online broker. If ETFs sound like the right fit, get yourself an account with an online broker like Questrade, WealthSimple or your bank's direct investing platform and buy them yourself.

You can read a lot more on all of these topics on my blog:

https://www.clarityonyourmoney.com/blog
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This article was written by a guy who was a bond mutual fund manager himself. This thinking also applies to stocks.

"Many bond managers in the past, and perhaps even now, insist they can achieve a significantly higher rate of return than their benchmark, fully justifying their fees.

"These managers and their marketing people should know better."

The message? Don't try to beat the market. Just own the overall market with ETFs or index mutual funds.
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This year I combined my book learning about financial planning with my real life learning.

Talking with people about money and delving deep into their finances has taught me a lot. Here are five things I learned this year:

1. People want to talk about money - they just need the right person to talk to.

2. People are uncertain about their finances - and uncertainty causes anxiety and inaction. It's better to know where you stand.

3. People are confused. It's hard to apply knowledge and facts about personal finance to their own situations. (Tip: A financial coach or planner can help!)

4. Dealing with banks is a PITA.

5. The state of the economy matters. Inflation, interest rates, jobs...they have a real impact on people.

Read more in the Clarity blog: What I Learned This Year.

https://www.clarityonyourmoney.com/post/what-i-learned-this-year

If you're confused, uncertain, and annoyed with your bank, don't worry: you're not alone.

Money is only one leg of our happiness stool, but whether we like it or not, it’s an important one. Is there something you can do this year to feel better about your finances in 2023?

Reflecting on the past year and setting a few goals for the coming year can help you figure out what you can do to feel happier financially.

Here are my suggestions for thinking about your money for 2023:

1. What went well for you money-wise this past year? Don’t look only at the numbers, but also consider whether there was a financial habit you adopted or whether you took action to organize your finances.

2. How do you feel about where you are financially? Are you feeling confident about how you're spending, saving and investing? Do you have nagging concerns to address?

3. What specific actions do you want to take this year with your money? Do you want to get invested properly? Track your spending to see where your money goes? Organize your finances by consolidating and simplifying? Learn about how your pension works? Figure out what to do with your TFSA?

www.clarityonyourmoney.com/blog

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Over-spending for the holidays is so easy to do.

There are so many expectations and societal norms about what Christmas should look like.

If you'd like to feel better about opening your credit card statement this January, focus on spending money on the things that really make the holidays special for you, and cut back on the stuff that doesn't.

Read more in my blog post "In for a penny, in for a pound."

https://www.clarityonyourmoney.com/post/in-for-a-penny-in-for-a-pound