Personal Income Spending Flowchart (Canada)
Personal Income Spending Flowchart (Canada)
cross-posted from: https://lemmy.ca/post/694194
Steps for 🇨🇦 taken from reddit.
I think this chart is great, but really really complicated for someone new to this.
IMO, we should really try to work on 3 different charts : a very basic and simple one with the main steps for regular people, a standard one for people that are more interested in finance, and a hardcore one for tinkerers and optimizes...
EDIT: it should also be updated for the FHSA.
Not my chart (copied from reddit as I found it was a good overview) - feel free to take a crack at some new charts if you're up to it! Agreed, FHSA should be considered.
I’m surprised that paying off high interest debt is so low on the flow chart. I personally don’t know if it’s a good idea to follow this chart as it is.
Interesting take: how would you put it higher? IMO, almost all the previous steps (except the one about employer match) are related to living expenses, which are in my opinion more important than something that can be cleared through bankruptcy, so I don't see how that could move much higher.
I’d put it above a small emergency fund, which you need precisely to avoid bad debt. It hardly makes sense to set aside $1000 when you have $1000 in CC debt. I’d also put it above non-essential bills. That list is weird because I would consider cell phone and internet absolutely essential. But if it’s truly non-essential, like cable or a game subscription, I would cancel until I don’t have bad debt.
The employer match is actually maybe the only one I might keep, since you get an instant 100% ROI.