A Money Coach in Canada

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Grrrrrr.  I’ve been losing my grip on the investment scene the past few months and completely missed that Dollarama went public (ie. folks like me and you can buy shares in it).

It opened at $17.50/share and went up to $19.26 in its first few hours of trading – in other words, a number of people think it’s worth buying and swiftly drove the price up.

I continue to be pessimistic about the fundamentals of our economy (essentially, Canadians are fuelling our gross domestic product by deepening our personal household debt to an all time high (or low!); 58% of Canadians surveyed last winter said day-to-day living expenses is what is deepening their debt), which informs my choices of investment —  I’m looking for businesses that cater to people sensitive about their budgets.  This means a business like Dollarama is Of Interest to me.  And I missed the news!

Over this weekend I’ll do some investigation into Dollarama’s financials and let you know what I find out, and if I decide to invest.  Any opinions, readers?

About the Author

Imagine if Canadians were known for being all over their money. Engaged. Proactive. Getting out of debt. Savvy. Saving. Generous. Nancy wants to help. Nancy started her own journey with money over 15 years ago, and formed her company “Your Money by Design” in 2004 to help others along the same path. It’s not the usual financial advising/investment stuff. It’s about taking control of day-to-day finances –managing monthly cashflow effectively, spending appropriately, getting out of debt, saving. If you're ready to take control over your finances, pop by her business site, YourMoneybyDesign.com


  1. brad

    Setting aside the question of whether buying individual stocks is a wise investment strategy (for me, personally, I prefer to buy funds and spread the risk, but I suppose I’d buy a few individual stocks with “funny money” that I wouldn’t mind losing if the stock value dropped to zero), I guess the thing that would put me off investing in Dollarama and other “cheap” stores is that they encourage the consumption and production of poor-quality made-in-China stuff that generally doesn’t last and ends up costing you more in the long run because you have to replace it.

    Of course, many people can’t afford to wait a couple of years to save up for a nice set of pots and pans that they can keep for a lifetime: they need something now. So in that sense these Dollarama-type stores fill a useful niche and make stuff available to people who truly cannot afford to buy good-quality products. My parents bought me my first set of pots and pans at a Dollarama-type store, and while they were lousy they did tide me over until I could afford to replace them with decent cookware that I’ve been using now for more than 20 years. Dollarama and similar stores also allow you to save a few bucks on throwaway items like paper plates and plastic flatware, paper napkins, party goods, etc.

    But despite being generally frugal, I tend to avoid these stores because I’d rather do without something until I can save up to buy a better-quality version that I won’t have to replace.


    nancyzimmerman Reply:

    @brad You’ve seriously given me pause to think. In fact, I’m surprised at myself – that I didn’t flag that. Given how many times I encourage all of us to forgo Cheap Crap investing in this may not align with my values. The one thing is, as you pointed out, sometimes, it’s what enables someone to “get by” until their finances start looking up.


    Oct 13, 2009

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