Investing - October 2023 Tax and Money Tips

Photo by Precondo CA on Unsplash

Hi everyone,

It has been a few months since I last wrote a newsletter. In this current season of life, I have been prioritizing other things besides work. I will try to publish my monthly newsletter again.

2023 Tax Season was busy. It seems like things are going back to pre-Covid - lots of people travel, public transportation is back to full ridership, and some people did not see the urgency to get their taxes done, yikes .... Canada Revenue Agency (CRA) is also getting more active in requesting receipts from individual taxpayers, to confirm items as claimed in tax returns. If you are my client and you need assistance with responding to CRA, your fee generally includes 20 minutes of my time to respond to CRA assessment.

Let's get to this month's money tips. 
1. If you would like to start investing but don't know where to start, may I recommend that you start by tracking your expenses? You need to ensure that you're spending less than your income and that you have an emergency fund. Money that you use for long-term investment should be money that you can afford to lose or money that you don't need until your goal time. There are lots of spreadsheets out there to help you keep track of your expenses. Or you can use an old-fashioned notebook and pencil. :) Contact me if you'd like my version of spreadsheet.

2. A (previous) co-worker lamented that she lost her money because the market was down. She instructed her financial advisor to sell all of her investments and convert it into GIC's. Oh no! When you see the market down and you have a loss on paper, it is a loss on paper only. You don't experience the loss unless you sell your investment and realize it. The same applies to gains. If you would like to invest for the long-term and you can't bear to see the ups and downs, don't check your investment often. Check it periodically. If you have an advisor, consult him/her. Oh, and don't invest using money that you will need for your day-to-day expenses.

3. Here's a trick I use myself to make an extra investment without earning more income. Sometimes I don't feel like cooking and I want to buy a take-out. When I know I have food at home and I can eat at home, I try to resist the urge to dine out or buy a take-out. Let's say I wanted to eat a combo meal from McDonald's, but I managed to save $15 by eating at home, then I'd take the $15 and buy $15 worth of McDonald's share. So I invest in the company (becoming an owner) instead of spending $15 (becoming a customer). :)

Those are my 3 tips for October. Follow me on social media such as YouTube   Instagram   Facebook   LinkedIn   Twitter if you would like to see more tips.

Happy (Canadian) Thanksgiving everyone! May we be grateful with what we have.