Quick Tip: How to spend your next $1,000
Danny Bell, Premiere Mortgage
The Right Order for Your Money
1. Build a 3-month buffer
Before investing or making extra mortgage payments, save 3 months living expenses.
If you spend $5,000/month, save $15,000.
2. Pay off high-interest debt
Start with:
Credit cards (20%+ interest is brutal).
Then lines of credit.
Then car loans (a depreciating asset), student loans, etc.
It’s hard to build wealth with high-interest debt working against you.
3. Build a 6-month emergency fund
Next, strengthen your savings by putting 6 months of expenses into a savings or TFSA account.
Car breaks down?
Roof leaks?
Job changes?
Use savings, not credit. That’s comfort and control.
4. Invest for the future
Once your foundation is stable:
Maximize RRSP, TFSA, RESP, and employer savings programs.
Save for future goals and lifestyle plans (new car, vacations, home renovation).
This is where money starts working for you without lifting a finger! Set up auto-payments to make it easy.
5. Then, focus on paying down the mortgage
Once your high-interest debt is gone, savings are healthy, and investing is on track, use mortgage pre-payment options to pay down the mortgage faster.
Remember: Housing is a necessary expense. A mortgage is a strategic tool to help manage that cost. Focus on a payment that comfortably fits your budget. Your future self will thank you.
Reach out anytime:
https://www.dbmortgages.ca/
