Enki
Active member
I'm pretty sure we all have some sort of debt. Be it student loans, bank loans, car loans, cell phone bills :blush2: . Many of us also have a lot of money committed towards rent, mortgage, car loans, insurance, hydro, etc.
So how can you kill this cycle of negative returns? How can you become a millionaire?!?!
ITS EASY!
All it takes is 10 min to set it up, and you're done!
Heres how...
-----------------
If you currently have online banking, you're well on your way. If not, go to your nearest branch and open one. Its easy, its fast, its convenient, and you don't have to worry about bank hours (unless you want to make withdraws and deposits of course). Once that account has been set up, you move on to the next step.
Now, open up a mutual fund or an RRSP with your bank. I like mutual funds, but RRSPs are just as good if you don't plan on taking your money out too early. Keep in mind, some banks allow you to take your RRSPs out early for a large purchase (ie a home) without a penalty, but will expect you to return the money back into it before it will accumulate interest again.
With the Mutual Fund or RRSP now open, decide how much you will deposit per month. Start small! Start at $50 a month (a cup of Tim Horton's coffee a day). Set it, and forget about it! Don't worry about your mutual fund or your RRSP, it will grow on its own!
Now, the harder part. Bills, and how to get rid of them! (I use the term "harder" loosely)
This too is actually very simple.
Because now you have online banking, set up all of your bills online. Its very simple to do you can always contact technical support for assistance and they'll gladly help you. When you have done this, set up your pre-authorized payments.
What are they?
You tell the bank to deduct $X from your bank account on any given day of the month for however many months you want. So for instance, say you have a student loan owing $5000. You tell your bank to deduct $200 a month (or whatever you choose) every second Thursday for one year.
You set it, and forget about it!
Now, you no longer have to worry about making your payment to the loan since the $200 is going there right away! You can do this for just about anything! Credit Cards, mortgages, hydro, etc.
You may be thinking, "Hey, Riza! All we've been doing is paying our bloody bills! How is that making me richer?!"
Remember that $50 you had already set? Thats how!
The best part is yet to come!
Say you paid off a credit card bill and you had been paying $50 a month towards paying it off. You now have an extra $50 a month in your bank account, doing nothing! Take half of that and throw that in your Mutual Fund or RRSP. You now are saving $75 a month (PLUS INTEREST). The other $25, use it to accelerate the payment of another bill like your student loan. Now you can pay $225 a month towards that! Once thats done, you now have $225 a month sitting around doing nothing! ADD to your contributions!
You will see how quickly you can make money. You can see it grow, right before your eyes!
For this to work, you also need to be reasonable. You need to understand you are committing a lot of money a month towards this and the key in all this is realizing what you earn a month. The more you earn, the more you can throw into either debt payments or Mutual Fund/RRSP growth. If you earn a lower wage, you may not have the resources available to put away $300 a month! But, it does not mean you cant do it!
Instead of paying $50 a month, put down $10. Instead of paying $200 a month towards a loan, put down $100. If you see that you still have a lot of cash on hand, then raise those numbers up a bit. Set it up so that you can enjoy your life now, but also, be a millionaire when you retire!
Hope my advice helps! If I can find some charts online with the numbers to back me up, I will post them here as well!
Lets all become millionaires
I'm well on my way! I hope you will be too!
So how can you kill this cycle of negative returns? How can you become a millionaire?!?!
ITS EASY!
All it takes is 10 min to set it up, and you're done!
Heres how...
-----------------
If you currently have online banking, you're well on your way. If not, go to your nearest branch and open one. Its easy, its fast, its convenient, and you don't have to worry about bank hours (unless you want to make withdraws and deposits of course). Once that account has been set up, you move on to the next step.
Now, open up a mutual fund or an RRSP with your bank. I like mutual funds, but RRSPs are just as good if you don't plan on taking your money out too early. Keep in mind, some banks allow you to take your RRSPs out early for a large purchase (ie a home) without a penalty, but will expect you to return the money back into it before it will accumulate interest again.
With the Mutual Fund or RRSP now open, decide how much you will deposit per month. Start small! Start at $50 a month (a cup of Tim Horton's coffee a day). Set it, and forget about it! Don't worry about your mutual fund or your RRSP, it will grow on its own!
Now, the harder part. Bills, and how to get rid of them! (I use the term "harder" loosely)
This too is actually very simple.
Because now you have online banking, set up all of your bills online. Its very simple to do you can always contact technical support for assistance and they'll gladly help you. When you have done this, set up your pre-authorized payments.
What are they?
You tell the bank to deduct $X from your bank account on any given day of the month for however many months you want. So for instance, say you have a student loan owing $5000. You tell your bank to deduct $200 a month (or whatever you choose) every second Thursday for one year.
You set it, and forget about it!
Now, you no longer have to worry about making your payment to the loan since the $200 is going there right away! You can do this for just about anything! Credit Cards, mortgages, hydro, etc.
You may be thinking, "Hey, Riza! All we've been doing is paying our bloody bills! How is that making me richer?!"
Remember that $50 you had already set? Thats how!
The best part is yet to come!
Say you paid off a credit card bill and you had been paying $50 a month towards paying it off. You now have an extra $50 a month in your bank account, doing nothing! Take half of that and throw that in your Mutual Fund or RRSP. You now are saving $75 a month (PLUS INTEREST). The other $25, use it to accelerate the payment of another bill like your student loan. Now you can pay $225 a month towards that! Once thats done, you now have $225 a month sitting around doing nothing! ADD to your contributions!
You will see how quickly you can make money. You can see it grow, right before your eyes!
For this to work, you also need to be reasonable. You need to understand you are committing a lot of money a month towards this and the key in all this is realizing what you earn a month. The more you earn, the more you can throw into either debt payments or Mutual Fund/RRSP growth. If you earn a lower wage, you may not have the resources available to put away $300 a month! But, it does not mean you cant do it!
Instead of paying $50 a month, put down $10. Instead of paying $200 a month towards a loan, put down $100. If you see that you still have a lot of cash on hand, then raise those numbers up a bit. Set it up so that you can enjoy your life now, but also, be a millionaire when you retire!
Hope my advice helps! If I can find some charts online with the numbers to back me up, I will post them here as well!
Lets all become millionaires
I'm well on my way! I hope you will be too!