Embedded Files
4 Options for your money
spend it (like on bills, expenses, entertainment, upgrades, toys)
Save it (short term saving for things you want in the near future like a new phone)
Grow it (long term savings for the lifestyle you want way in the future like retirement, world travels, etc)
Give it Away (there is more to life than personal wealth. Charity, kindness, empathy and thoughtfulness enrich our lives like money can not)
Financial check-up
Do you have a chequing account? With what institution?
Do you have a savings account? How much?
Time to open a back-up set of accounts (chequing and saving)! With what institution?
1.Spend it!
Smart Cash Flow Management
On payday, put money aside for bills...even if they are not due until later in the month!
Set up automatic savings transfers on payday
Set aside non- monthly expenses (these are the yearly expenses you pay only once a year...home insurance, car insurance, property tax, taxes, Christmas/birthdays, etc...) Divide the annual cost by the number of paycheques per year and set that slice away each payday.
The remaining money from each paycheque can safely be spent or saved and you'll know you're OK.
By doing this, you'll ensure creating a good credit score!
2. Save it!
Savings comes before investing!
Do you have an EMERGENCY FUND?
You should have a pot of money in savings that can give you access to 3-6 months of living expenses (or minor surprises...like a big car repair bill ($3000), a lost week of work ($2000), or a house repair ($5000)
OK, so now you've had some consistent income, and you're paying your bills, and can afford transportation (and food). AND you still have some extra! Great work!
Now What?
OK, so you're set every month to pay for all your current and annual bills, you've got an emergency fund...
Do you still have money left over? Great!!
4. Grow it!
What do you want this money for and when?
Short Term: 1-2 years (like a car, tuition, a new phone)
*Put this money into a savings account or a cashable GIC...it won't grow much but is safely there when you need it!
Long term: 5-30 years (house, new car, a big trip, future and retirement..."to be rich one day")
Responsible Long Term Future Saving
Investment Funds (money making you more money!)
Short term investments: want it liquid
Long term investments: this is where risk/rewards come in...
You gotta know yourself! are you willing to be risky?
If NO, then invest conservatively!
If YES, then you can invest with more risk
Risk means the instability. This is the idea that your money might not all be there in the future (think gambling). Are you OK if it isn't a sure-thing the money you invest will be there in the future?
TFSA's
RRSP's
FHSA's
Stocks
ETF's
Mutual Funds
Bonds
What is inflation and how does it affect investments?
Anthropic IPO
Tesla IPO
Space X IPO and potential merger with Tesla
IPO= initial public offering, a primary market to raise capital once. Then secondary markets are the individual trading of these stocks based on market valuations (fluctuate with time and performance)
4. Give it away!
Assignment!
Math 11 Banking and Investing.docxGoogle Sites
Report abuse