Day To Day Financial by: Jaibaz Mangat
Investing Money
Interest terms & Types
Principal Amount: The amount of money you start with/money you are investing with.
Compound Interest:Interest that is calculated on the previous amount of interest earned
Simple Interest:Interest that is calculated on the principal amount each term
Where you can Invest
Savings account
Land & Property
Stocks
Dividend stocks
Cryptocurrency
Rental properties
Today's Interest Rates
Interest rates in savings accounts
Interest rates in bigger banks across Canada range from 0.1% to 0.75% with a balance of $10,000 or more
Smaller banks around Canada can have higher rates at 1% to 2% for lower amounts of money
Income
Average income across Canada
In 2020 the government of Canada recorded that an average family in Canada made around $55,700 which was a 3.3% decrease from the year before
According to Stats Canada in 2019, the average Canadian household spent $68,980 yearly on expenses
Income from Stocks
According to Stats Canada 41% of Canadians don't own stocks
According to researchers, an average Canadian has a 10% return on long-term stocks, as the average Canadian invests $5,000 yearly the return is $500
You can buy,hold and sell stocks. With the right education about stocks you can know when to sell and
Spending Money
Spending on Cars
The average Canadian spends $1300 a month on an average Canadian car of $40,000
The average Canadian spends around $8000 a year on gas if they fill up once a week
Spending on Houses
An Average house in Canada has risen to $820,000 with a 3$ mortgage interest rate with 20% down payment
Spending on Food
The average Canadian spends $300 on groceries
Spending on Luxuries
An average Canadian spends $5000 a year on vacations and luxuries
Appreciation & Depreciation
From 1990 to 2021 the Canadian dollar compared to US dollar has changed from $0.75 to $1 to $0.5
When the economy is in a recession state the prices to purchase are higher than income which makes a reset in the economy
All item depreciate once they are used, a $100,000 car can depreciate to $80,000 once used for 2 years as it has kilometers driven on the engine
Borrowing Money
Interest Rates
Credit Card;20%
Mortgage rates: 6%
Loan Rates:4%