Real Estate

Canadians added an incredible $127-billion to their savings in the first half of the year

  • Last Updated:
  • Sep 19th, 2020 10:32 am
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Nov 5, 2018
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I’m saving most of my money and de-leveraging. I really don’t like having debt. It’s fun at first, but there is nothing like freedom.
I do not need approval, I do not need friends. I do what I want.
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Oct 7, 2007
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CondoMan98 wrote: I’m saving most of my money and de-leveraging. I really don’t like having debt. It’s fun at first, but there is nothing like freedom.
Good on you!

This is an important life lesson. I think that the words "debt" and "freedom" are almost antonyms. Many people don't realize that even at low interest rates, they are still shackled to financial obligations that have to be repaid. Heck, even if one has an interest-free loan, they still are obligated to pay it back. And there is no escaping this which weighs on a person and affects future decision-making, opportunities and peace of mind.

I think if you were to ask most people that paid off their mortgage if they would take a more expensive home by adding more mortgage, they would decline and opt to stay where they were are.
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choclover wrote: Good on you!

This is an important life lesson. I think that the words "debt" and "freedom" are almost antonyms. Many people don't realize that even at low interest rates, they are still shackled to financial obligations that have to be repaid. Heck, even if one has an interest-free loan, they still are obligated to pay it back. And there is no escaping this which weighs on a person and affects future decision-making, opportunities and peace of mind.

I think if you were to ask most people that paid off their mortgage if they would take a more expensive home by adding more mortgage, they would decline and opt to stay where they were are.
I think leverage is a powerful tool in creating wealth, but eventually the principal MUST be paid, whether the interest rate is 1% or 5%.
I do not need approval, I do not need friends. I do what I want.
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May 3, 2020
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Isostar wrote: Is this during the same time of the 180 billions deffered mortgage payments?
As you are one of those that deffered mortgage payments, did you invest the money or put in savings?

P.S. still scratching my head on how they calculated those 127 billions... links to articles from the original one and after 4 articles, still nothing yet...

lol they likely polled the banks.. most of the banks had 'record' deposits last quarter, and that will likely continue this quarter.
Except the part they don't tell you is the part you just figured out for yourself!
They have 180 billion in mortgage deferrals..... lloll
So the off-set makes total sense.

Will be interesting to see if job losses accelerate. Those savings can turn to losses really quick.
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Dec 13, 2016
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choclover wrote: Good on you!

This is an important life lesson. I think that the words "debt" and "freedom" are almost antonyms. Many people don't realize that even at low interest rates, they are still shackled to financial obligations that have to be repaid. Heck, even if one has an interest-free loan, they still are obligated to pay it back. And there is no escaping this which weighs on a person and affects future decision-making, opportunities and peace of mind.

I think if you were to ask most people that paid off their mortgage if they would take a more expensive home by adding more mortgage, they would decline and opt to stay where they were are.
You are just kidding yourself by playing brain games.

You will always be a debt slave one way or another. Smart people will be taking more debt and getting rich.

I know I would if I was back in Canada.
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BiegeToyota wrote: You are just kidding yourself by playing brain games.

You will always be a debt slave one way or another. Smart people will be taking more debt and getting rich.

I know I would if I was back in Canada.
Yup exactly.
I hold $30k in debt @ 3.7%
But i have double that in a tfsa that returned 40% this year on the market. All from buying good stocks when things when to shit in march. I saw a stock market blood bath , but i saw it as a opportunity. Best year of my life investing.
I could have been a weiner... and paid off my debt. But if i did that... i wouldn’t have earned that $24k in gains.
Half in there are earning dividends tax free. So that easily covers the 3.7% interest from the loan.
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Oct 7, 2007
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BiegeToyota wrote: You are just kidding yourself by playing brain games.

You will always be a debt slave one way or another. Smart people will be taking more debt and getting rich.

I know I would if I was back in Canada.
No, not really.

Two questions:
1. How do you define "rich"?
2. How do you define "quality of life"?

We all get only one life. How we choose to live it, and what we strive to get out of it, is up to us.

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