MONEY TALKS

Cash-flow gripes and how to deal.

ELLE (Canada) - - Money -

“I DON’T MAKE ENOUGH MONEY TO SAVE.”

This is the bud­get­ing equiv­a­lent of the “my dog ate my home­work” ex­cuse. If you in­vest even $10 a week—a.k.a. one glass of wine—from the age of 18, you’ll have $100,000 (as­sum­ing a 5-per­cent rate of re­turn) by the time you’re 65. It’s never too late to start: Pick up this habit at the age of 35, and you’ll have $35,000. Or try this hack from Toronto-based per­son­al­fi­nance ex­pert Preet Ban­er­jee: Take 10 per­cent of your pay­cheque and set up an au­to­mated trans­fer into a sav­ings or in­vest­ment ac­count. “The worst thing that can hap­pen? Af­ter a cou­ple of months, you re­al­ize you can’t make it work and you now have a few hun­dred dol­lars saved. The best-case sce­nario is you find you don’t miss it.”

“IF I HEAR ONE MORE PER­SON TELL ME I NEED TO MAKE A BUD­GET, I’LL GO OFF.”

Cringe at the thought of item­iz­ing ev­ery last latte? Ban­er­jee sug­gests work­ing back­wards: Think about your prior­ities— like shel­ter, food, day­care, gas—and make sure you have enough money for these first. Add 10 per­cent of your in­come to this fig­ure for sav­ings, and make sure that what­ever is left over doesn’t get to zero by the end of the month. But, he warns, this still re­quires some scru­tiny of your fi­nances. “Un­less you’re will­ing to sit down and go over where your money has been go­ing, you’re never re­ally in con­trol of your cash flow.”

“I DON’T WANT TO LIVE IN MY PAR­ENTS’ BASE­MENT UN­TIL I’M 40 SO I CAN AF­FORD TO BUY A HOUSE.”

When did we start equat­ing be­ing a grown-up with own­ing prop­erty? Yes, a home can be a great in­vest­ment, but Alex Avery, au­thor of The

Wealthy Renter, ar­gues in his book that if you have enough dis­ci­pline to in­vest (in the stock mar­ket) your

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