Avoid Over-Diversifying Your Mutual Funds

While investing in mutual funds, do not diversify too much.

Already Diversified Enough

By definition, a mutual fund is already diversified!

Indeed, the fund manager buys different titles with money invested by all shareholders of the fund.

Some specialized funds are a little less diversified but in general, mutual funds are a well diversified investment vehicle.

Limit Yourself to a Couple Funds

It is not necessary to select a large number of funds for your portfolio. Three or four different funds should be sufficient to meet your needs. In some cases, a single fund may do a great job.

Shop Around and Negotiate Your Credit Conditions

Always Worthwhile to Negotiate

It may be interesting for you to shop and negotiate loan or credit line conditions with a few different financial institutions.

On your mortgage, for example, a difference of only 1% will save you tens of thousands of dollars in interest before you finish paying your home.

Consult Several Institutions

Avoid being lazy and get information elsewhere. At worst, negotiate with your regular institution to obtain the best possible terms afterwards.

Carefully Choose Your Life Insurance Agent

Nowadays, with the multitude of products that are offered to us, it’s difficult to make wise choices. We would like to blindly trust our life insurance agent, but that could be one of the most serious mistakes that could be made. In addition to being expensive, that kind of mistake could really place your family in a precarious situation.

Make Your Own Analysis First

There’s no magic formula for choosing a good life insurance agent. You should start by making your own reflection and by determining by yourself your life insurance needs. Your life insurance agent should only validate your analysis and help you choose specific products tailored to your needs.

Choose Products According to Your Needs and Not Your Capacity to Pay

Simply Use Common Sense and Better Judgment

This may seem obvious but in finance or life in general, many do not use common sense or they often demonstrate bad judgment. Is it because they are eager for easy solutions or quick profits?

Too Good to be True

Then, if it sounds too good to be true: it’s probably not true! I'm not saying that opportunities to get rich or to improve our lives do not exist. But, I’m only saying that these opportunities rarely come from a stranger, who writes you an email telling you that by giving him some money, you will obtain ten times more...

You Know What Works for You

Systematically Use the Small Tasks Method

Simplify All Tasks

Want to be better organized; one of the first things to do is to adopt the Small Tasks Method.

This method consists of bringing all your tasks into a relatively simple level by breaking down too complex tasks into several smaller and easier to accomplish tasks.

The effectiveness of this method, simplistic at first glance, has been proven over time. Its psychological effects on motivation and productivity are undeniable.

Mysteriously, it’s more interesting to have accomplished 10 tasks out of 40 than 1 out of 4. You have the impression of having completed more.

Learn About RESPs If You Have Kids

In Canada, governments really entice you to save for your children’s education. Especially if you are a low-income family, you must take advantage of all this free money.

Let’s start by looking at the Registered Education Savings Plan (RESP). Although the RESP is a bit complex, it can be pretty interesting for most families.

Here are some highlights of the RESP to help you get the most out of it:

Contributions Not Tax-Deductible: RESP contributions are not deductible from your income tax, contrary to those of an RRSP (Registered Retirement Savings Plan).

Grant and Bond: Instead, governments pay incentives to the RESP in the form of grant and bond.

Tax-Free Growth: money can grow tax-free while in the RESP.