We’re feeling all inspired to ditch our stuff and simplify our lives after binging on The Minimalists documentary on Netflix. If you don’t know what we’re talking about or haven’t watched it yet, you know what your plans are tonight. Get on it. Here’s a nice little recap in the meantime. Basically they’re challenging consumerism, and the concept of being attached to our “stuff.” We can all relate to the feeling that if we buy ____ it’ll make us feel good/happier/better. And, that’s actually a huge factor keeping people in debt. The average Canadian owed $21,348 in consumer debt in 2016—that’s a 2.7% increase over the past year. We’ve been socialized to feel like there are things we “need” to be happy. But when ‘The Minimalists’ (Joshua Fields Millburn and Ryan Nicodemus) started decluttering and letting go of stuff that didn’t add value to their lives, they started feeling freer and happier. A super cool quote from the film that resonates with us: “Love people, use things. The opposite never works.” (so frameable. 🙌 ) Our Do More, Spend Less concept is all about that same notion:
The Mogo Blog
So, you overspent and overate. Your finances are feeling as tight as your fave pair of jeans. You said you’d stick to your holiday budget but then you found the new Snapchat Spectacles on eBay and obvi needed to buy a pair for your bae—okay, and maybe one for yourself too. You blew it. But instead of commiserating in a pool of self-loathing and anguish (so dramatic), face your spending hangover head on with our New Year's money remedies. No, we’re not going to recommend ‘hair of the dog.’ (Sorry.) Over the next few weeks, we’ll hook you up with our easy-to-follow spending tips to help get you back in the black, and on track to ball out in 2017. And by ball out, we mean spend and save like a responsible adult. 😜 First up: NY Money Remedy #1: Consolidate credit card debt (AKA) How to break the credit card debt cycle with an installment loan. !(/content/images/2017/01/mogo_new-years-hangover_2017-1.jpg) You had every intention to keep your holiday budget in check. You made a list, checked it twice, and even scaled back your other spending leading up to December. But then that
We got some hot money tips from finance experts across Canada. 🔥 💸 We asked them... What’s your #1 finance tip for millennials and young Canadians? From mortgage advice and budgeting, to credit card and financial planning tips, their answers could help you get on track this month and on to a financially healthier 2017. Nice. “” My number one tip hands down is to get help, and get qualified help. You don’t pay a personal trainer $80 a hour to watch you on the treadmill. You know that having pro can help you identify blind spots and fast-track your path to financial success. It’s never too early (or late) to engage with a Certified Financial Planner. You can find one at FindYourPlanner. Kelley Keehn | Author, personal finance educator and the consumer advocate for the Financial Planning Standards Council. | Kelleykeehn.com “” Know your credit score. Keeping tabs on your score is a good way to gamify your financial fitness. It will keep you mindful about not racking up debt, and a good score can save you money in interest. If you understand how to get a good credit score, you are less likely to abuse credit, like many people do
With the new mortgage rules coming into effect across Canada, you might be wondering what that means for you—and whether you can still enter the market. One of the new rules applies a stress test to borrowers, which means you need to qualify at a higher rate when you have less than 20% as a down payment. Before these new rules, mortgage borrowers who took a 5-year fixed-rate mortgage only had to qualify for the mortgage payment based on the interest rate they were getting. Now with the new rules, you’d have to qualify for a rate at the Bank of Canada’s 5-year fixed posted rate, which is currently 4.64%. The new rules aim to make sure that if interest rates ever go up and are much higher than they are today, homeowners will still be able to make their payments. But the result is also an approximately 20% decrease in the amount of mortgage money available to borrowers. !(/content/images/2016/10/mogo_credit-score_mogomortgage_img2.jpeg) One factor that you can focus on that is within your control to maximize your affordability: your credit score. A higher credit score could result in a higher
Let me tell you a tale… quite possibly a familiar one in your own life. So, Topshop has their annual sale on, which of course I have to hit up. I spot the highly coveted Olivia Palermo bomber jacket which of course just happens to be the last one left and is in my size. I head to the register, bomber in hand, ready to take home my fashion find. As I reach for my wallet, the salesperson tells me I’ll get 15% off if I sign up for the store credit card and use it today. I’m all like, sweet I’ll take it. I charge the $141.33 to my new store credit card, and head off into the sunset. !(/content/images/2016/08/mogo_credit-score-late-payments-image-1.jpg) The next day (being the responsible adult that I am) I transfer $140.00 from my bank account onto the store credit card. I’ve got it covered right? A few weeks later, I get a statement in the mail from the store, which I immediately throw in the trash without even opening it. In my mind, I’ve taken care of it. Next month, the same thing happens.