Make and Follow a Budget

By Lauren

Making and following a budget can either be very simple for people or can be really hard for people to do. Some people like to not follow any sort of budgeting and some like to make and follow a budget in their everyday life. Some advantages of budgeting include, knowing what your money is going to, how much you’re spending on items and it can keep you focused on your money goals or something you plan on buying but need to save up for. Some disadvantages of making and following a budget would be the commitment it takes, you have to really commit to doing this as it can be tempting to spend money at certain points. It also can take some time to get into the rhythm of following the budget you set for yourself. I think the whole “make and follow a budget” is more a rule than a myth. I wouldn’t say it’s a rule everyone needs to follow but for some people this can be really useful and helpful. I would definitely recommend people to make and follow a budget if they’re trying to save up for something or if they would like to spend less money than they already are. I think this can be really useful for people who need it and are planning on saving for something as it can also be a reminder to stay committed to get what you want in the end. Therefore I believe everyone who is worried about the money they’re spending or anyone who would better like to see where their money is going to should definitely make a budget and follow it.

https://www.payoff.com/life/money/5-simple-steps-to-create-a-successful-budget/
https://www.mappingyourfuture.org/money/budget.cfm

Mortgages (what will the house really cost)

By Lauren

If you’re at the point in time where you want to buy your first house then using the TD mortgage affordability calculator may help you out. When you first go onto this site it asks you where you’re currently living or where you want to live, after that it then asks you what kind of home you’d like to live in. The last few questions ask you about how much you make yearly, how much you spend on other expenses and then how much you spend on like cars, credit cards etc. After you have answered all of the questions it tells you that you may be able to buy a new home up to however much they think you can afford. At the bottom of that same page it tells you how much you would roughly spend on the mortgage payment per month, it shows you other housing costs, and how much remaining cash you will roughly have every month. This calculator really helps people who are just starting out, especially when buying their first home. I would definitely recommend this calculator to anyone buying their first house.

https://tools.td.com/mortgage-affordability-calculator/?cm_sp=:MICROSOFT:Affordability+Calculator+-+Generic+%2818_S_RL_RMO_AO_ACQ_EN_GEN%29:MORT:Mortgage+Calculator+-+Broad/

Mutual Funds

by Lauren

A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. Some investors may be retail or institutional. Advantages of mutual funds are that they provide economies of scale, a higher level of diversification, they provide liquidity, and they are managed by investors who are professional. Disadvantages is that the investors in a mutual fund must pay various fees and expenses. When you buy a mutual fund, your money is then combined with the money from other investors, which allows you to buy part of a pool of investments. For some people mutual funds may not be for them as there are multiple fees you have to pay, like sales charges, fees and expenses regardless of how the fund performs, even if the fund has a negative outcome. Also with mutual funds the fund’s holdings are only known to investors at certain points in time, which means you don’t have any influence or control over specific investment decisions made by the portfolio manager which some people may not like. Therefore if you’re interested in investing then I would recommend doing a mutual fund.

https://www.investopedia.com/terms/m/mutualfund.asp
http://www.globefund.com/centre/GettingStarted02.html
https://www.google.ca/search?q=advantages+and+disadvantages+of+mutual+funds&rlz=1C1GGRV_enCA751CA751&oq=advantages+and+disadvantages+of+mutual+funds&aqs=chrome..69i57.11246j0j4&sourceid=chrome&ie=UTF-8

Interview

By Lauren

I interviewed my grandma and asked her what her best ideas for saving money were and she told me a few ways she has saved money over the years. First she told me about how she knew what her priorities were and what she needed to actually buy over what she wanted. She said when she goes shopping she asks herself if she really needs it and will use it or if she just wants it. When she goes out and shops she makes sure to get exactly what she will need for the week or so. She also makes sure she doesn’t get more than she will need/use. By doing these things my grandma saves on a lot as she isn’t spending her money on stuff she doesn’t need/won’t use.  My grandma never invested money or anything like that as she just never really felt like she needed too. Basically my grandmas best ideas for saving money would be just making sure you’re buying what you really need over what you want and just make sure you aren’t over buying too much of something if you won’t use it all.

Grow the gap

By Lauren

The saving idea grow the gap is for people to grow the gap between what they earn and what they spend. The importance of this saving idea is to look more at what you’re earning and what you’re spending. Most people will try to earn more and spend less. Even though they may not notice lots of people spend less money every day, for example if you go to a restaurant and you see something you really want for $15 but you also notice a cheaper option for $10 even though it’s not what you wanted you still settle for it and go with that option which is saving you money. People also are saving a lot more on bigger things that include, houses, cars, etc. Basically this saving idea is just getting people to save up their money and when they do have to spend their money then it’s basically trying to get you to spend the least amount possible.  I think this is a good saving idea as lots of people already do it. I would definitely recommend this saving idea to people as its pretty simple to do.

http://podcast.affordanything.com/91-how-to-spend-less-earn-more-and-grow-the-gap/