Jun 032018
 



KramerBank

I’ve been banking with BMO for nearly a decade now. I opened a BMO bank account because my PC Financial bank wasn’t able to process an international cheque (Australia). When I moved to the USA I was forced to close my PC Financial account because they didn’t support non-residents of Canada. Luckily I never closed that BMO account and they do support non-residents. I’ve also had a BMO credit card for over a decade (but I’m replacing it soon)

Me trying to deposit an Australian cheque

Now that I’m back in Canada I’ve been exclusively using my BMO bank account. In the USA I banked with Chase. After using and American bank I am completely shocked at the state of Canadian banking today. I’m speaking primarily as a BMO customer but my understanding is most of the big banks are similar. Let’s go into some of the reasons I’m done with BMO:

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Mar 202018
 



I’m always on the lookout for interesting ways to save money. Unfortunately giving up luxuries like lattes or alcohol is normally the only way. Typically there is a linear relationship between money saved and quality of life. Meaning quality of life increases as spending increases. Buy the nicer car and be more comfortable, go to the more expensive restaurant and eat better.

Fortunately the world is not so predictable, or fair. There are numerous exceptions to the spend-more-get-more trend. You simply need to re-frame money saving opportunities to highlight their benefits. For example, take alcohol (and recreational drugs in general). For the low price of $9/drink you get reduced inhibitions and a generally fun time. But what if you ordered water instead? Well, aside from being that jerk at the bar who doesn’t spend money, you’re likely to have a similar amount of fun. People who have fun tend to make those around them have fun.

Beyond fun I like to focus on health. Alcohol is not healthy (Wow great insight I know). Even one drink per day has been linked to increased cancer risk, especially in women. Also vomiting, stomach aches, and hangovers are good enough reason for me to reduce alcohol consumption.

For me, the financial and health benefits of abstaining outweigh the fun of consumption. This attitude has the added benefit of sounding morally superior to all my alcoholic friends!

Remember when I took that wine making class and forgot how to drive? That's because you were drunk!

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Sep 132015
 

Imagine that instead of buying that expensive thing that you can probably live without, you took your money and invested it instead. Depending on your age and investment skills I’d say over a lifetime that money could easily triple. For example:

$10 invested for 25 years at 7% return = (10*1.07^25) = $54.27

Which in today’s dollars is $36.81. Lets round it down to a conservative $30.

This means that a dollar saved today will became three dollars in 25 years with proper investing. This isn’t anything new, we all realize that compound interest multiplies your cash like rabbits. So I’m going to draw the opposite parallel. Spending money is like murdering those rabbits. Not only do you murder that rabbit, but you murder all future offspring of said rabbit. This is the part most people choose to ignore (the spending part, not rabbit murdering. I don’t condone murdering rabbits unless you are really hungry). Every spent dollar is one that can’t be put to work making more dollars. Continue reading »