4 Common Money Beliefs That Damage Your Marriage

j0309372In July, my husband and I tied the knot.

And like any couple, we wanted to start our marriage out on the right foot.

So partly because of the requirements of the church under which we were married, and partly because it’s good practice, we took part in pre-marital counselling – or what the church calls “marriage prep”.

In marriage prep, we learned about some of the biggest challenges in marriage. These challenges test your partnership and if you don’t already have a strong foundation can weaken your bond with one another.

Many of these challenges are brought on by beliefs that we hold because we don’t know any better. Or because we see our parents hold these beliefs and attitudes, and we pick up on them. Or just because we’ve been exposed to beliefs like this over and over again in our culture.

No matter how these beliefs are adopted, they undeniably damage a marriage.

So do you hold any of these beliefs?

1. If Only We Had Enough, We’d Stop Fighting…

Have you ever thought that if only you had enough money, you’d be happier, less stressed out? That your marriage would magically get better, and you’d stop fighting?

Because you wouldn’t have anything to fight about, right?

Well, not necessarily.

If you’re already arguing about money, having more of it won’t switch the argument stream off. It will just shift the tension to another area of your marriage. 

Why? Because money isn’t really the issue, usually. More often there is something underlying the money arguments.

For instance, if you are frustrated with your husband’s spending habits, the underlying issue may be that you have conflicting goals.

If you argue about purchases made in secret, the underlying issue is trust.

Work on both earning more money and working on the underlying issue behind your arguments.

2. We Shouldn’t Fight About Money

We’ve all heard that money is the number one cause of divorce in North America.

So it stands to reason that you shouldn’t fight about money with your spouse, right?

Since it leads to divorce, it sounds like the last thing you should do.

But that’s simply not true.

Arguing about money is not evil. It’s how you navigate money as a couple that can break down a relationship. 

You are two different people. You aren’t the same, so you are going to have different attitudes, goals, and beliefs. It’s only healthy to have differences. There isn’t one couple alive that is always on the same page about money.

You just need to be able to work out the issues in a productive way.

Because if  you just sweep the issues under the rug? They’ll fester like a wound, which is far more damaging than a healthy debate.

3. We Aren’t Partners if We Don’t Have Combined Finances

When we were about to get married, I was told by more than one couple that if we didn’t combine our finances completely, we weren’t in a partnership.

How could we go about being married if we didn’t share everything: money and all?

While my husband and I did combine our finances, I don’t subscribe to the idea that you’re not partners if every single aspect of your lives aren’t intertwined.

This is like ridiculously arguing that if you don’t have the same name as your kids you aren’t a family.

Assuming a marriage isn’t as strong just because finances aren’t completely combined is an indication of an insecure marriage.

So if you want to do things a little differently, do whatever works for you and your spouse.

You’re no less married if you don’t follow the herd.

4. It’s Tit for Tat

Before J and I got married, I unfortunately believed that everything should be equal.

Meaning, if I spent $40 on a dinner out with a friend, he should spend $40 on something that he wanted, and vice versa.

So when he went out and bought a new speaker for his truck, I’d think “OK, now what should I do with that extra $100 of spending money?”.

Luckily, I have snapped myself out of this silly mindset.

You’re partners in crime, not competitors. And there’s nothing that will drain your bank account more quickly than this “tit for tat” attitude.

Some couples battle this by allocating a portion of their discretionary spending to each member of the couple, like an allowance. Some just spend as it comes up an don’t take a tally.

However you deal with it, remember that you’re not in a race to drain your bank accounts.

 

Nobody is perfect, especially in marriage. And sometimes, the best we can do is to recognize these attitudes in ourselves and try to fix them.

So next time you find yourself thinking any of these things, stop and remind yourself of the damage these beliefs can cause.

How I Got Started with Investing

investing in canada etfs tfsaSo many Canadian women are chatting about investing right now, and I think it’s an incredibly important conversation to have.

Karen from Makin the Bacon (who used write here!) wrote a two part series where she interviewed female investors to get their perspectives on why more women don’t invest. I provided a quote and very much enjoyed the rest of the interviews on the site as well.

Then my friend Cait from Blonde on a Budget posted about her investing journey, which made me think a bit about my own and how I got started in investing.

1. Investing Within A Tax Free Savings Account

I got my start in investing when the Tax Free Savings Accounts opened in Canada.

Unfortunately, I lost some investing time (and therefore money) by starting my TFSA in a high interest savings account instead of investing the money.

Because my money was with Tangerine, I still made around 2% at that time, but the smarter thing to do would have been to invest the money in a mutual fund or ETF.

I caught on in early 2013, however, and moved my TFSA  into a Tangerine Tax-Free Investment Fund Account. This allowed me to make greater returns, making my money work harder for me.

(If you’re Canadian, I would highly recommend Tangerine for chequing, savings, and investing – sign up with my Orange key 35611511S1 and we’ll both get $25).

I started with a Tangerine Balanced Income Portfolio, which has a management expense ratio (MER) of 1.07% and an average rate of return over the past year of 12.03%.

After while, however, as I began to increase my income and learn more about investing, my risk tolerance increased as well. I realized that I’m young and have no reason to hold back so much on risk, so I transferred the funds I’d already invested in my TFSA into a Tangerine Balanced Growth Portfolio. The average return over the last year is 15.49% with he same MER, so my money has been working even harder for me.

2. Investing Within My RRSPs

When I was 21 and in my third year of school, I started my first RRSP.

I was taking a business finance course, but my professor insisted that we should be considering saving for retirement. I knew that this was the case (after all, I’d already been blogging about personal finance for awhile at that point), so I decided to start saving what I could.

I started with $25 per paycheque – so $50 per month, plus any “found” money I could muster.

I was paying for school as I went through it at the time so it was slow moving, but I followed the same model as my TFSA.

I started with the Balanced Income Portfolio before deciding to change to the Growth Portfolio.

Before I graduated, I landed a regular job from my internship, and therefore made a lot more money. I was able to invest up to $200 per month at that point in my RRSP, and $100 into my TFSA.

I still had to pay for my courses, so when I graduated, I upped the ante even more.

My job had a pension, so while I continued investing in my TFSA and RRSP, I wasn’t as aggressive as I could have been because a portion of my income was automatically invested in the Municipal Pension Plan.

3. My Favourite Investments

When I graduated from school, I became interested in continuing my learning about personal finance and began some serious self-learning about different investments within Canada.

I read some books, blog posts, and picked the brains of many investors I knew, and decided to begin investing in dividend-paying ETFs – exchange traded funds.

I slowed my contributions to my Tangerine RRSP and TFSAs and, after a lot of research into investing platforms, started a Questrade account.

I find it really easy to use, it’s low cost, you get free ETF trades, and you can open up an account easily (instead of the rigamarole you must go through if you are using TD e-Series, for example).

(If you sign up for Questrade with my affiliate link I get a small kickback – which will be reinvested in ETFs. Plus, you’ll get $50 in free stock trades which is a nice bonus.  Just click on the link here to sign up for an account).

I invest in several Canadian dividend paying ETFs, including:

  • Vangaurd’s FTSE All Cap Index ETF – VCN.TO
  • FTSE Canadian High Dividend Yield Index ETF – VDY.TO
  • FTSE Canada All Cap Index ETF – VCN.TO
  • BMO Canadian Dividend Fund – ZDV.TO

I invest in ETFs within my TFSA. So my TFSA is split between Tangerine’s Growth Portfolio fund and ETFs within Questrade.

4. The Plan Moving Forward

Moving forward, my investment plan is simple:

1. Invest my RRSP savings in the Tangerine Growth Portfolio

2. Invest my TFSA savings in Questrade ETFs

3. Re-invest dividend income into Questrade ETFs (this is called DRIP – Dividend Re-Investment Plan)

4. Continue to learn and grow as an investor and try new things!

I’ve considered investing in individual stocks based on the companies in the sustainable ETF funds, however, my individual stock investing experience is limited to a few American stocks.

 

Do you invest? If so, how did you start?

4 Insanely Simple Ways to Make Passive Income in 2015

ideas for passive incomeThis post is an updated version of the 2014 version about passive income ideas.

You know it’s possible to make passive income.

And you want to start making more of it.

But you don’t know where to start. There is so much information out there, and it’s all a bit confusing.

But 2015 is the year that you are committed to conquering the passive income itch.

And I’ll help you make that happen.

In this post, I’m going to show you how I make more than $900/month in passive income.

There are many ways to make passive income, but coming up with passive income ideas can be difficult for one reason: mental blocks.

Mental blocks may include lack of knowledge, the idea that the topic seems complicated, and risk adversity.

In reality, you just need to take the plunge.

Here are a few ways that I make passive income, as well as some popular methods that others use.

Passive Income Idea #1: Peer to Peer Lending

Is Peer-to-peer lending still controversial?

I can’t imagine how – it’s simply lending money to a peer (or an individual/group of individuals) instead of a bank or credit union.

The ethics of banks are questionable to begin with, so many people want to get funding from a peer instead.

For you, this is an amazing opportunity to make passive income.

The main income model from a bank is lending. Whether that’s through credit cards, business loans, or personal loans, they cash in.

And you can, too.

One of the only legitimate ways to do this is to sign up for a P2P (peer-to-peer) lending plaform.

The most popular lending platform is Prosper.com which will connect you as a lender to borrowers, and as a borrower to lenders, and make it all possible.

The link to Prosper is an affiliate link and if you decide to do P2P lending with my affiliate link, it will give me a small kick-back – which I will use to buy ice cream (ha.. ha..)

Passive Income Idea #2: Investing

Okay, I know you’ve heard of investing.

But if you still haven’t taken the plunge into the investing world, you are missing out.

And so many people are scared of this income generating machine.

But you shouldn’t be!

Tell me: how is it normal that we “invest” $50,000 in a 4 year degree for a career we aren’t sure we’ll love, yet shut down at the thought of investing $1,000 in an ETF and turning that into a compound interest generating machine?

If you do your research and invest intellegently, you can make a substantial amount of money in interest.

Historically, the average return when it comes to investing is around 9-10%, which is 9-10% return – absolutely passively.

Just START. Stop procrastinating. Read a book on investing, and then stop making excuses.

Open an account with eToro – this is the coolest platform becuase you can actually look up other Traders on eToro, see their returns and copy their portfolios with their OpenBook feature.

Then, start by investing $100.

Passive Income Idea #3: Monetizing a Blog

Blogging is, in and of itself, not passive. You have to write articles, comment on other posts, format, learn search engine optimization, have a presence on social media, etc.

Even so, if you are a hobby blogger and are already blogging, you can monetize your blog by adding Google Adsense or affiliate marketing.

I’m not a huge believer in ads by any stretch of the imagination, but I make some decent money by recommending products that I actually stand behind.

And if you want it to be truly passive, hire a team of writers and/or virtual assistants and let it generate money.

Passive Income Idea #4: Become a Landlord

This is definitely not 100% passive, but inreality, nothing really is.

As a landlord, you are at the beck and call of broken appliances, rowdy tenants and the whims of the market. Unless, of course, you are smarter than that (but who can really vet their tenants that well?)

Renting a room out in your house is the most passive, or convert a floor or separate building on your property into a suite.

 

See, it’s not that hard to make passive income. You just have to DO something.

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