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The challenge in covering the ongoing story of high household debt levels in Canada is finding something fresh to say. A story that appears in June issue of The Walrus magazine manages to pull this off. The headline says "Canada's Middle Class is on the Brink of Ruin," which is hardly a new message. We've been hearing similar warnings for years now.
The original part of this article is a comment from Laurentian University economist Louis-Philippe Rochon on why we're borrowing so much. He puts it down to economic anger – we're working harder and not getting ahead. So we resort to retail therapy, funded through borrowing.
This observation will resonate if you caught the details of the latest jobs and wages report. "Across the spectrum of white-collar jobs in Ontario, there was a decline in earnings among managers and professionals in health, law and natural and applied sciences," my colleague Rachelle Younglai reported. "Senior managers for example, were paid, on average, $53.54 an hour in April compared with $58.29 a year ago."
The most basic message of personal finance is to live within your means. It's much easier to follow this advice when your means is increasing every year through rising pay.
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When to sell your old furniture
Thoughts on the best time of year to sell things like furniture, baby gear and cars. A master strategy for monetizing the junk in your basement using Kijiji, Craiglist and such.
How to save money while travelling
A blogger gathers up some of the best posts from other blogs on budget travelling. Among the topics covered here are doing Disney on a tight budget, finding flight deals and visiting one of my favourite cities, New Orleans, on the cheap.
Just try and find a roommate in Toronto if you're older than 35
Elle Gallagher, 59, is having a hard time finding a roommate. A story of agism and expensive housing markets. Apparently, no one wants to share a place with people older than 35.
Looking for a house in a neighborhood with top schools?
Prepare to pay a whopping price premium. In Toronto, the gap could be as much as $800,000.
CPP and OAS versus U.S. social security
An accountant's detailed comparison of how these programs compare in terms of both benefits and the money you contribute while working.
Today's featured financial tool
Ratehub.ca claims its online mortgage comparison tool is the first to reflect mortgage policy changes that have affected the cost of borrowing. Rates will now vary according to factors like size of down payment and mortgage amount.
Ask Rob The question: "Could you discuss holding a portfolio with large unrealized capital gains? Is this a serious investing flaw? Starting in 1983, I invested in Canadian bank shares."
The answer: "You may find this blog post of interest – a financial adviser pushes back against the reluctance many people have to sell an asset – stock, mutual fund or rental property – because they'll have to pay capital gains tax."
Do you have a question for me? Send it my way. Sorry I can't answer every one personally. Questions and answers are edited for length.
What I've been writing about
- How dividends came to dominate our investment portfolios
- The 2017 ETF Buyers' Guide: U.S. and international dividend funds
Featured Video
An argument for millennials to think twice about home ownership.
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