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Welcome to the first topic in the Essential Series from the Amell Financial Series! This topic will provide an overview of what to expect from the Essential Series as well as what you should do if you want to improve your financial situation. As with all information found on the internet, we encourage you to do your own research and ask your own financial professional about the concepts and strategies contained within the Amell Financial Series. The information contained within the Amell Financial Series is the information we want our children to grow up practicing and implementing to give them the best financial start in their lives. We hope that it is of benefit to you as well!

Getting Started

No matter what a person’s age is or what their current financial situation is, there is always room for growth. Debt is not a life sentence. Age does not always mean that someone will never be able to retire. Not understanding finances or not knowing how to work finances is okay because the ability to learn is available! Through the Essential Series, the information needed to know how to create a solid financial foundation is available. The Essential Series covers topics such as:

• how to create a workable personal budget;
• how to calculate income and expenses and find the monthly cashflow amount available;
• how to assess whether a budget will work;
• understand credit and credit products that are available and how they can help personal finances;
• learn about options for paying off debt efficiently and effectively no matter how high that debt is and no matter how many debt products there are;
• how to analyze a personal budget and how to recognize and apply optimal financial strategies for that personal budget or financial situation;
• strategies and concepts that will allow money to make more money through investing;
• and much more!

Success within the Essential Series requires reading through the strategies and concepts discussed, understanding them, implementing them, and making them a habit. The Series should be read through numerous times to ensure the concepts and strategies are understood and properly implemented. Implementing small habits over time will ensure the habit is not only created but utilized and sticks. These habits will create a beneficial financial foundation, but keep in mind that it takes time to form habits and establish a routine. When you take your time going through the Essential Series you will not only create these essential habits and gain the required knowledge to understand your personal finances, but you will also ensure that you have not missed anything by reviewing concepts and you are giving yourself the time to create the habits you need to succeed. Just like analyzing a budget is essential to running an efficient budget, analyzing your understanding of the information contained within the Amell Financial Series and checking whether the concepts and strategies are being properly implemented is essential to financial success.

There is a general flow to the Amell Financial Series. The topics covered in the beginning, like how to calculate your income and expenses, are crucial for topics covered later in the Series such as how to create a budget and how to analyze your budget. This allows the framework of a budget to be established and then built upon. Once you are habitual about sticking to your budget, you will begin to see the funds that you can accumulate through discipline and consistently sticking to your budget. The Intermediate Series will help you learn how to use these funds to build more personal wealth. Throughout the Amell Financial Series, concepts and strategies are discussed, explained, built upon, and strengthened. This should build a strong financial foundation as the Amell Financial Series is worked through and provide the ability to capitalize on more advanced financial opportunities to achieve further financial success.

If at any point throughout the Amell Financial Series you have questions about your financial situation, feel free to provide general information in the contact forms at the bottom of each page and we can create a general video that anonymously explains the concepts and strategies a person in a similar financial situation could consider for their finances.

Learning should be a habit that is consciously focused on throughout life. This does not always mean going to College or University, but the key is allowing the mind to stay open so it can acquire new knowledge on a regular basis. When we acquire new knowledge and information, we should be verifying it to ensure it is factual. Be sure to complete your own research regarding concepts and strategies within the Amell Financial Series.

To begin the Essential Series, frequently used financial terms are defined below. There are buttons at the top of each page throughout the Amell Financial Series that can be clicked on to return to this page for reference. There is an audio version of the topic available at the bottom of each page. There are resources available within the resource section to provide further explanations, demonstrations, and a video format of the topics. We hope you enjoy the Amell Financial Series and that it helps others to achieve their financial goals and provides value to others!

To begin the Essential Series, ensure you understand the terminology below. The next topic covered is how to make a personal budget, so be prepared to access your financial accounts, list the types of expenses and expense amounts that are typically spent within a month, list yearly expenses, etc., so you can create an effective and workable personal budget!

Terminology

Appreciate/Appreciation: an increase in value. This could be due to restoration, improvements, increase in the economy or price, etc.

Budget: an estimation of the income and expenses within a specified period of time. We are utilizing monthly budgets, so this would be your estimates of your monthly income and expenses.

Cash flow: the amount of after-tax money, and after expense money that you have. This is the amount of money that you have leftover after you pay your monthly expenses.

Credit: This is the amount of money that a lending institution is willing to lend to you. There is interest associated with credit, so you often will have to pay back more money than you use through credit.

Debt: an amount that you owe and are under obligation to pay. Debts are any charges/outstanding amounts that are on your credit cards, lines of credit, mortgage, loans, etc.

Deductions: to take away from a sum or amount. This means the amount of money that is taken from your income for purposes of taxes, pensions, support payments, etc.

Deflation: a decline in prices related to a decreased amount of money available within an economy. This means that prices tend to be lower because there is less money available and circulating within an economy which causes the value of that economy’s money to increase.

Depreciate/Depreciation: a decrease in value. This could be due to wear and tear on the product, time, decline in price or the economy, etc.

Dividends: an amount of money paid to shareholders of a corporation out of earnings. This is the amount of money you earn for investing in a company that offers dividends. The amount you earn is based upon the amount you invest in the company.

Expenses: a cost or charge. Money that is leaving your bank account to pay for a good or service.

FHSA: First Home Savings Account. This registered account allows a first time home buyer or someone who has not owned a home in several years to save up to $8,000 per year (lifetime limit of $40,000) in the account to use for purchase of a qualified home. The growth within the account is tax-free and can be used in combination with the Home Buyers Plan. See my post all about the HFSA and how it could benefit you!

GIC: Guaranteed Investment Certificate. This is a product available from a financial institution that you can purchase and expect a return from. There are different types of GIC’s with varying interest rates, but you earn the interest from your purchase!

Gross Pay: See income

Income: the money or amount of money that you receive. Your monthly income would be the amount of money that you receive within a 4 week period or a calendar month. Gross income would be the amount of money you earn before taxes and deductions are taken and net income is the amount of money you have after taxes and deductions are taken off.

Inflation: a persistent, substantial rise in prices related to an increase amount of money circulating in the economy resulting in a loss of value to currency. This means that there is a large amount of money available to use within an economy which makes the value of the money within that economy worth less. Prices for goods and services tend to be higher during inflation.

Interest: The amount of money earned from investing or the amount of money paid for borrowing money. You can earn interest through investment products from financial institutions, or you can pay interest through credit products from financial institutions.

Invest: to put money to use by purchase or expenditure in something that offers a potential profitable return. This means putting your money into products like stocks, GIC’s, mutual funds, a business, an antique car, a house, etc. The goal of investing is to earn money from your initial investment or earn more money than the item initially cost.

Living within your means: this means to spend less money than you earn. If you earn $2,000 a month, then you will need to spend less than that per month to live within your means.

Retirement: the act of leaving one’s occupation permanently.

RRSP: Registered Retirement Savings Plan. This is a product available from a financial institution where you can save and invest for retirement by putting off taxes on your investment earning to a later date.

“Take Home” amount/Net Pay: the amount of money that you have left over after deductions and taxes are taken from your gross income amount. This is the amount of money that is actually given to you from your occupation or the government. See income.

Taxes: the amount of money the government demands you pay for its support or for specific services, properties, sales, etc. You pay taxes through the money you earn, the products you buy, and the services you use.

TFSA: Tax Free Savings Account. This is a product available from a financial institution where you can save and invest money and it is tax-free.

Listen to the audio version here!

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Video Link: https://youtu.be/KzQiRABVARk

Contact Us

If you would prefer to contact us and provide general information so we can create an anonymous video giving strategies on your general situation, please fill out the contact form below.

Disclaimer: The financial information contained within the Amell Financial Series relates to Canadian financial policies/capabilities in particular and we operate within Ontario. If you live elsewhere, we advise you to check with your provincial policies or your particular country’s policies by talking to a financial planner/advisor or tax consultant that operates where you live. The information contained within the Amell Financial Series is for informational purposes and does not constitute as financial advice.