The Bottomless Cookie Jar

A credit card is like a bottomless cookie jar. With easy access to credit, there’s no reason to wonder when the treats will run out, and you are never disappointed. Want a new outfit? Just stick it on a credit card. Want to have dinner with a bunch of friends? Desperately in need of a sunny vacation to beat the winter blues? There’s room on the card and that’s just what it’s for, right?

When credit became a commodity, lenders started hiking limits and offering incentives to take on more cards. People started behaving like greedy children, gobbling cookies without a thought to the tummy ache that would eventually follow. Now Canadians are spending almost 1.5 times what they make every year. Talk about lack of self-control.
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Master the Cards

According to recent data released by Moneris Solutions, Canada’s largest debit and credit card processor, spending through its debit and credit card machines in last year’s fourth quarter rose 5.8 per cent compared to 2010’s. It seems Canadians loosened up a bit for the holidays. It’s ok to splurge from time to time, but with the uncertain economic times, living within your means is not only wise, but essential. That means finding the right credit card for your lifestyle. Depending on your qualifications, you may have a beefy buffet of plastic to pick through, or, your selection may be as lean as a vegan menu. So how do you decide? We’ve asked three credit card connoisseurs to track down the perfect pieces of plastic to help you live within your means.
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Raise the $teaks of Personal Finance

Years ago, the late Paul Newman, he of the stunning blue eyes and insouciant stare, was asked if he’d ever been tempted to stray from his wife, actress Joanne Woodward. Newman simply smiled and said, “Why would I go out for hamburger when I have steak at home?” With apologies to Newman, I’m borrowing his comment and applying it to the investment universe: If you can have investment steak at home, why would you bother going out for ground beef?

Exchange traded funds (ETFs) are prime meat for your portfolio, while actively managed mutual funds are, for the most part, ground beef. ETFs give you a lot less fat for the money. Not only are they cheaper – the management fees (MERs) start as low as 0.07 per cent and most are under 0.5 per cent compared to the MERs of Canadian mutual funds which average 2.5 per cent annually – but they also produce a better result. Read more