A Money Coach in Canada

Follow & Subscribe

If you’ve never gone, this weekend take time to check out the annual Eastside Culture Crawl. It’s amazing – you’ll poke into old industrial buildings you’ve never noticed and discover exceptional art — and handbags on sale by one artisan!

Chapters has this cool program this week only – each day, they feature an item for only $1. For today’s deal, click the logo below.

$1 Deals at chapters.indigo.ca

and as always, my favourite way to fly…

Cheap Flights at westjet.com
Seat Sale to Canada and the U.S. – Book WestJet.com and save!

and… don’t forget to check out 1oonWednesday for some awesome garage-sale deals on vintage stuff.

poppy.jpgA friend once posed the bizarre but intriguing question, “what would happen if funerals had the same status as sex in our society?” – ie., we were as obsessed with funerals as with sex. Magazine covers would feature gossipy photos of coffins. Our swear words would relate to death. People fantasized about various ways of dying.

The fact is, of course, that our culture minimizes all thoughts of our mortality – almost in inverse extreme to our obsession with sex.

What does this have to do with our money?

Well, as Steven Covey asks in his book The Seven Habits of Highly Effective People, if we were an observer at our own funeral, or celebration of life, what would we want to be known for? How would we want to have lived? Spent our time?

And I would include, “how would we want to have stewarded our money?” “How would we have wanted to spend it?” “What are our must deeply held values, and how linked are they to our wallets?”

On the weekend that includes Remembrance Day – remembering people who have died in wars past, leaving a legacy of free countries – we could, perhaps, take a moment to ‘remember ourselves’ and reflect on the brevity of our own lives. Then ask ourselves, In light of that, how do I want to live? How do I want to spend? What legacy do I want to leave?

I was tagged by personal finance blogger ‘wooly woman’

for the meme “What ideas did you have, prior to being 10 years old, about money that turned out to be totally and amusingly wrong?” – the meme initiated by Mr. Cheap (who as you can imagine has a lot of things to say about money!)

Given that I make a living from coaching people about money, you’d think I’d have a vast repetoire of goofy experiences toOrange Juice draw from for this … but alas, absolutely the only thing I can recall is that I thought orange juice was really, really expensive and for “rich” people. I have no idea where I got that idea – my mom would be horrified. Possibly it’s connected to having grown up in Yellowknife, where oranges were as exotic as guava in my mind.

So, NetChickMiss 604, John – any bizarre beliefs you had about money, when you were kids?

The wildly popular ZenHabits blog recently featured a Canadian professor (U. Guelph), Ian Newby-Clark an expert on habit change.

Habit change re: money is what my company, Your Money by Design, is all about … leaving us all with fatter wallets as a result, of course!

Here are his 5 tips, with my comments pertaining to money.

money-tree.jpg1. Work on 1 habit at a time. I couldn’t agree more. Many clients come to see me initially in a state of high anxiety, and are determined to do it all. At once. Get rid of their debt – now! fast! Start an ambition RRSP plan – I don’t want to be a bag lady, and I’m sure I don’t have enough! Oh, and go on a trip to Mexico in three months too! I desperately need a break! My role is to ‘hold the horses’ so to speak, and help

2. Create a plan and write it down. The plan needs to be sane, and it needs to be sustainable over the long haul. It starts with identifying where your net worth is at right now, and leads into where you want to be, financially.

3. Refine your plan. OK. So quickly getting rid of your debt while aggressively saving for your retirement and flying to Mexico next month may not be realistic. But you could go to Mexico, and move your debt to low-interest credit vehicles and set up your RRPSs with a reasonable monthly payment, and see how that works for a while.

4. Make mini-plans. How much will Mexico cost? What is your budget? Let’s open a high-interest savings account at Citizens Bank and start setting money aside.

5. Repeat! Repeat! Repeat! Welcome back from Mexico! You’re relaxed, refreshed and good to revisit your overall networth plan. Let’s start tackling the debt a little more aggressively…

you get the idea!

alexanderstreet2.JPGNone, assuming the property was your principal residence during the year. In other words, a property that was owned and occupied by you at any time in the year can be sold on a tax-exempt basis. The property can be a house, an apartment, a cottage, a mobile home, a trailer or a houseboat, and it can be located anywhere in the world.

Things can get a little more complicated if you own more than one residential property or if you decide to rent out your home.

In the first case, you should bear in mind that you can designate only one home as your principal residence each year. The most common scenario is that a taxpayer buys a new residence before the previous one can be sold. For tax purposes the taxpayer’s former home is considered the principal residence in the year it is sold and does not give rise to a taxable capital gain.

If you move out and choose to rent out your home, it can remain your principal residence for up to four years (and longer under specific circumstances) as long as you make an election to that effect in the year you start renting it out, you continue live in Canada and you do not designate any other property as your principal residence during this period. However, you still are required to report any rental income on your tax returns each year.

If you are contemplating selling more than one residential property, thinking about renting out your home or re-occupying a rental property, ask your accountant or tax advisor to help you navigate your options.


This post was donated by the inimitable Mindy Abramowitz, YMbD’s very cool accountant.  If you have a question about this post, or another accounting question, just ask!  We’ll respond in next Wednesday’s “ask an accountant” post.