Latest news with #personal finance
CTV News
19 hours ago
- Business
- CTV News
How to split finances fairly if you make more than your partner
Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial. Dual-income couples are now the norm, but incomes are rarely split 50/50. Whether due to career choices, child-care duties, or differences in gender, education and age, income gaps between partners are common. Despite this, unequal income between partners can create financial tension if the issue isn't handled thoughtfully. One partner may feel burdened, while the other feels guilty or less independent. To maintain harmony, couples should address both the emotional and financial aspects of their finances. Unequal incomes are common in Canada A 2024 Statistics Canada study found that women aged 25 to 64 working full-time earned about 70 cents for every dollar earned by men. These differences are often influenced by age, education, parental leave, or one partner taking a less demanding role for work-life balance. Different approaches to splitting finances No matter how much love you and your partner may share, the way you both handle your shared finances can often make or break your relationship. Recently, Alberta-based non-profit Money Mentors released its 2025 Love and Money survey, which revealed some interesting points: 47 per cent of participants admitted to arguing over money with their partner; and 10 per cent admitted that they have considered splitting ways due to financial stress. Overall, the study revealed that financial stress and arguments between couples contributed to higher rates of anxiety and depression, lost sleep, loss of patience, and reduced productivity and motivation at work - none of which are conducive to a healthy long-term relationship. To this point, the Financial Consumer Agency of Canada even has an official page offering guidance and money management strategies for couples. Below, I'll explore several common ways to divide expenses. 1. The 'everything combined' approach This method involves pooling all of the household income into a single joint account, where both partners share full access. From this shared account, couples will pay bills, save, invest and spend together, viewing the money as 'ours' rather than 'mine' and 'yours.' This approach is common among couples who view their finances as fully united, especially in long-term or married relationships. It simplifies day-to-day management by consolidating all cash flow into one place, and keeps both partners accountable to each other. However, if spending habits, personal debts, or financial priorities differ between couples, sharing a single joint account can lead to tension. For this method to work, both parties need to be able to trust each other, share financial values, and communicate. 2. The 'proportional contribution' approach Rather than splitting everything down the middle, the proportional contribution method involves each partner contributing a set percentage of their income toward shared expenses. This way, both partners contribute fairly relative to what they earn, rather than equally in dollar terms. For example, if one partner earns two-thirds of the household income and the other earns one-third, they would split rent, bills and groceries using the same ratio. This approach can alleviate the burden that the lower-income partner may feel with fixed costs. For many couples, proportional contribution strikes a healthy balance between fairness and independence. 3. The 50/50 approach In this approach, each partner contributes an equal dollar amount toward shared expenses like rent, utilities, groceries and subscriptions, regardless of their income percentage. Many couples who prefer financial independence favour this model, especially early in a relationship or when both partners earn similar incomes. The 50/50 model is simple to manage, as each party carries their fair share of responsibilities. It also allows each person to retain full control over their personal finances, savings and spending beyond shared costs. However, it may become unsustainable if one partner earns significantly less or finds themselves between jobs, or if new responsibilities such as a pregnancy, parental leave or caregiving to aging parents come into the picture. In this case, the lower-income earner might struggle to keep up with bills or have less disposable income left over, potentially creating stress or imbalance in lifestyle. How to start the conversation with your partner I believe that it's important for new couples to discuss their finances and expectations of each other early in their relationship. Unvoiced opinions and expectations (whether financial or otherwise) are often the things that erode trust, love and harmony the most. If you have a long-term vision with your partner, it's important that you're both on the same page and willing to grow together. Part of this involves being able to have open, candid and respectful conversations about your financial life. Rather than arguing about your finances or approaching financial conversations with judgment or anger, or waiting until you hit a boiling point, you should set aside time to discuss finances. Many of my married friends and clients have a scheduled 'meeting' every month or so where they sit down over dinner, at a cafe, or just at home and discuss their finances, goals and family budget, and talk about ideas and adjustments that can be made to keep them on track. For this to work, both partners should keep an open mind and be willing to listen to and understand each other. If you find it difficult to have money conversations or feel like you're stuck in a rut, working with a financial advisor can be a great way to start. A good financial advisor can help you analyze your goals, provide unbiased feedback, and create a strategy that works best for both of you. Final thoughts Many couples find that having a flexible approach that combines certain aspects of the methods above works best. For example, new couples may start off with separate 50/50 finances and gradually move toward combining finances or saving for shared goals together as more trust is built in the relationship. When it comes to sharing finances with your partner, keep in mind that no one method is 'right.' What matters is finding a fair approach that fits your lifestyle, values and goals as a couple.
Yahoo
2 days ago
- Business
- Yahoo
4 Ways You Can Leverage ChatGPT To Improve Your Finances
As ChatGPT grows more sophisticated by the day, so do the practical use cases for the artificial intelligence (AI) model when it comes to solving everyday problems — particularly concerns related to personal finance. Read Next: Learn More: So what can ChatGPT help you with when it comes to improving your financial health? From helping you craft a rock-solid budget to making sure you place your money in wise investments, AI tools have never been more valuable. ChatGPT Prompts Can Help You Create a Better Budget Plan According to Forbes, generative AI can be useful in helping you draw up an effective budget. Recommendations attached to the prompt Forbes recommended include making sure to identify and specify spending areas related to housing, groceries, transportation, etc.; providing tips on slashing expenses and optimizing spending in each area; producing a goal savings target on a per-month basis to achieve an annual savings nest egg; suggesting other tools, apps or platforms to track spending and income; and offering advice on handling any unexpected expenses that could show up. Financial experts frequently underscore the importance of having a sensible budget in place as the bedrock of fiscal health. That advice has proven timeless, so take advantage of every opportunity to create one, or strengthen your existing example. Check Out: Use ChatGPT as One Voice Among Many To Produce Investment Options (Due Diligence Required) And while Forbes was also quick to point out that ChatGPT shouldn't be relied upon as a source of unassailable investment advice — after all, the model retains a substantial capacity for error — its recommendations can nonetheless be taken as a worthwhile starting point from which to conduct your own guided research. Forbes suggested asking ChatGPT for 'a list of accessible, beginner-friendly investment options that I can consider and conduct due diligence on, with a focus on building wealth gradually before the end of the year.' It advised asking the AI to explain each option, as well as how much money is needed to utilize these strategies and any potential risks. However, it's vital to keep one thing in mind: Due diligence on your part remains necessary to avoid potential money pitfalls. Bringing a list of ChatGPT-provided investments to a credible and ideally accredited financial advisor can spur discussion, debate and a deeper examination into potential places to park your hard-earned cash to reap the greatest reward. Condense and Analyze Financial Articles for Easier Reading Don't have time to read a few dozen lengthy financial articles in order to get a picture of what's happening in the spheres of personal finance, business news and investment opportunities? No problem. ChatGPT is quite capable of scouring any number of reputable sources fed to it in order to provide concise and readable analysis. You could save hours of valuable time by allowing ChatGPT to handle the heavy lifting when it comes to breaking down concepts, news pieces and earnings calls, per DataCamp. Just be sure to double-check questionable conclusions and spot-check sources periodically to ensure the model isn't hallucinating or pulling facts from thin air. Translate Financial Jargon Into Plain English To Enhance Your Own Vocabulary Related to the above point, sometimes blog entries, news articles or financial reports can be laden with insider terminology that proves difficult to grasp. A quick ask to ChatGPT can end with fruitful results, whether one wants to know exactly what's meant by terms ranging from earnings before interest, taxes, depreciation and amortization (EBITDA) to return on investment (ROI), or from capital appreciation to liquidity. Improving your own vocabulary when it comes to the challenging financial lexicon gives you the tools to engage with educational materials on your terms — making you better-equipped to make wiser decisions when it comes to your pocketbook in the long run. More From GOBankingRates 25 Places To Buy a Home If You Want It To Gain Value This article originally appeared on 4 Ways You Can Leverage ChatGPT To Improve Your Finances Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
18 ChatGPT Prompts To Use To Increase Your Wealth
Though many people use ChatGPT like it's a search engine similar to Google, it can actually be used to simplify and streamline not only your finances, but also your life. Since the revolutionary chatbot was released for public use, many innovative strategies for utilizing it have been revealed. Also Read: Up Next: It's not just about being able to access artificial intelligence (AI) anymore; it's about discovering how to use this AI-powered resource to help yourself. Here are several ChatGPT prompts that you can follow to increase your wealth. Personal Finance Basics Asking ChatGPT to explain something like you're five can actually be beneficial when it comes to distilling complex financial topics. Rather than getting bogged down in the jargon and details, let ChatGPT assist you in developing a comprehensive financial plan that includes saving for retirement, buying a home or starting a business. If you're new to money management, let ChatGPT explain concepts to you so you can become more aware of how to navigate them and begin growing your wealth. Here are some prompts to put into ChatGPT to help get you started on your financial planning journey: 'How can I improve my credit score?' If you want to improve your credit score, you can have the AI bot help you out, so you know what steps to take next. 'How can I start saving money?' The chatbot can help you plan to start saving money for the first time if you're just getting started. 'How can I save money on my grocery bill?' The next step involves asking ChatGPT for specific help on saving money. You can ask for tips on saving money on your grocery bill or replace this category with every other spending area based on your lifestyle. 'How can I build wealth?' If you want a summary of building wealth, you can simply prompt the chatbot to explain the entire process to you. From there, you can ask specific questions based on anything that comes to mind. 'Can you create a budget for me?'Based on this prompt, the chatbot will ask you for relevant information, so you will need to gather everything. 'What are some effective strategies for paying off debt?' If you're at this stage, you can ask for various strategies to help you pay off debt. 'What are the best ways to save money on a tight budget?' If you're on a budget, you can ask for assistance in finding ways to save money. 'Help me save up for a home.' If you're looking to save up for a new home, ChatGPT can help you make a plan to prepare for this large expense. Learn More: Investing Advice Once you have the basics covered, it's time to get ChatGPT to help you with your investment strategy. Here are 10 more prompts to use to get you on the path to making informed decisions: 'I'm interested in learning more about investing. Where should I start?' This will help you get started, so you have some ideas for what to look into. 'How can I start investing with a small amount of money?' If you're looking to start from scratch, you can prompt the chatbot to help you figure out how you can make your money work for you. 'What are the possible risks and rewards of different investment options?' Before you start investing your money, you could gather insights on the risks involved, so you know what you're getting into. 'Suggest sectors worth investing in right now.' If you're not sure where to invest your money, you could gather advice on sectors and industries that could see some growth. 'Explain the basics of investing in cryptocurrency.' If you want to invest in speculative assets, you can learn about cryptocurrency, so you don't blindly get caught up in the hype. 'How can I invest in real estate with little savings?' If you want to invest in real estate, you can gather information on how to begin without significant capital. 'Evaluate the long-term performance of investing in stocks vs. mutual funds.' Once you start debating between investment vehicles, you can have ChatGPT evaluate their performance, so you can compare your options. 'Evaluate this investment option.' If you're ever stuck on a particular investment, you can share the details so the chatbot can analyze it. 'Can you help me develop a financial retirement plan?' If you want to plan for retirement, you can have ChatGPT share suggestions and details based on your age and situation. 'Suggest investment strategies for generating passive income.' Once you're ready to get to the next level of building wealth, you can look for suggestions on creating passive income to make money in your sleep. Just remember, as is the case with any investment advice you may receive, you need to assess your personal situation and always proceed with caution. It's always a good idea to consult with a human financial advisor, as well. Martin Dasko contributed to the reporting for this article. More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard The 5 Car Brands Named the Least Reliable of 2025 10 Unreliable SUVs To Stay Away From Buying This article originally appeared on 18 ChatGPT Prompts To Use To Increase Your Wealth Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Automotive
- Yahoo
6 Biggest Money Mistakes When Buying a Car, According To ‘The Car Mom' and Rachel Cruze
Buying a car, whether it's a first set of wheels or the latest in a long line of vehicles, can feel like navigating a financial minefield. In a recent YouTube video, personal finance expert Rachel Cruze sat down with Kelly Stumpe, better known as 'The Car Mom,' to discuss some major mistakes people make when they're buying a car. Read More: Learn More: Recognizing these six mistakes upfront can help make car buying smarter and less costly. Test Driving Too Soon One of the first red flags is walking into a dealership before being ready to buy. According to Stumpe, buyers often go in with no intention of purchasing and walk out with a new car because they got swept up in the sales experience. Her advice is don't bring a trade-in, don't bring a partner, and don't test drive until the budget and plan are locked in. People need to have that 'Walk away, I need to think about it' feeling, she explained. Car dealerships can often instill a sense of urgency to try to get people to buy, but thinking about the purchase ahead of time is beneficial. 'Remember that you are the one with the final say, always. If you're feeling steamrolled, don't be afraid to walk away,' Carol Pope, a staff writer and car insurance agent, told LendingTree. Be Aware: Letting Emotions Drive the Decision Cruze and Stumpe also warned against letting emotions override logic. A high monthly payment might feel justifiable at first when the car is new and exciting. But several years down the line, when the car is scratched, stained and no longer fun to drive, that same car payment can start to sting. Failing To Forecast Ownership Needs A car that works today may not work two or three years from now. Stumpe told buyers — especially parents — to think ahead. Family size, lifestyle and cargo space needs often change before the loan is even halfway repaid. Buyers who ignore that risk may end up in a vehicle that no longer fits and a loan they can't easily escape. Letting the Dealership Set the Budget In another YouTube video, Stumpe shared how often buyers let the dealership define what's affordable. She recommended flipping the process: decide on a payment first, then use a calculator to work backward and determine the actual vehicle price. When setting your budget, U.S. News & World Report suggested finding a car where your monthly payment won't be more than 10% of your take-home pay. Skipping Salesperson Research Stumpe also recommended buyers research the salesperson, not just the dealership. Instead of leaving it to chance, finding highly reviewed individuals in advance can make a big difference in avoiding pressure, upsells and financial missteps. For women especially, choosing who to work with can makes a big difference in feeling confident and respected during the process. Not Having an Exit Plan Long-term financing has become the norm, with many buyers opting for 72- or even 84-month loans. But most people want a new car well before that term ends. Stumpe cautioned that without an exit strategy — whether it's passing the car to a partner, selling privately or trading in — buyers often end up owing more on their car than the car is actually worth. More From GOBankingRates 10 Cars That Outlast the Average Vehicle This article originally appeared on 6 Biggest Money Mistakes When Buying a Car, According To 'The Car Mom' and Rachel Cruze
Yahoo
6 days ago
- Business
- Yahoo
The 'No Buy' trend is catching on — and leading to big savings
Sometimes, getting your budget on track starts with a detox to wipe the slate clean and build new habits. Many consumers have taken on no-spend challenges to put themselves to the test and see if they can go a day, week, or month without spending money. Others have taken it a step further and adopted a 'no buy' year to cut out unnecessary spending and focus on what matters. Here's what you need to know about No Buy 2025 and how to incorporate it into your life. This embedded content is not available in your region. What is No Buy 2025? No Buy 2025 is a personal finance trend in which individuals commit to avoiding non-essential (AKA discretionary) purchases for a set period this year, which could range from a few weeks to the full year. One example of this trend in practice is 'No Buy July,' where participants challenge themselves to avoid spending money for the full month. 'No Buy July is like a financial detox,' said Hanna Kaufman, CFP® at Betterment. 'For one month, you hit pause on all non-essential spending — think: takeout, impulse Amazon buys, new clothes — and focus only on what you really need.' She explained that it's a challenge that helps people reset their spending habits, get clarity on their financial priorities, and boost their savings without having to make huge sacrifices. But some people are taking it a step further and adopting the trend for the entirety of 2025. For example, a Reddit group dedicated to the no-buy challenge boasts more than 70,000 members who share their personal experiences and tips. Many of those who take on the challenge start by creating a list of rules for themselves that align with their lifestyles. This could include hard rules such as 'no new clothes whatsoever' or 'no new technology,' as well as rules that limit the frequency of certain purchases, such as 'yes to takeout once per month' or 'yes to one nail appointment every two weeks.' Others have posted online about having a 'low buy' year, which means they're limiting the amount of purchases they're making, rather than cutting out non-essential spending altogether. The ultimate goal: Spend less and save more in order to reach larger financial goals, from paying off debt to buying a home. Read more: How the 30-day savings rule can help you stop impulse spending and save more money Why it works You may wonder why creating a simple budget isn't enough. While it certainly can be for many, some people need the extra motivation that comes from a challenge. 'Challenges work because they give you structure with a finish line,' Kaufman said. 'You're not saying 'no' forever, just 'not now.'' Kaufman added that joining a no-buy challenge also helps you break longstanding habits, like reaching for your phone to shop when you're bored, because you have the time to ask yourself whether you truly need or want an item. 'Plus, there's a little psychology at play — our brains love a good goal, especially when there's a sense of community and accountability behind it,' she said. Read more: 5 psychological money hacks to cut spending and increase savings There's also the added bonus of having built-in accountability partners, be it through close friends, family, or global online communities that are all working toward the same goal and experiencing similar pain points and victories. If your budget has been off track and you're struggling to get your spending under control, embarking on a no-buy challenge can be a good way to reset and remind yourself of what's important. Up Next Up Next How to participate in No Buy 2025 If you're thinking of getting on board and joining in on No Buy 2025, there are a few steps you can take to set yourself up for success. Create your no-buy rules The spending parameters you set should be unique to your situation. After all, no one knows your spending habits and pitfalls better than you. What are your nonnegotiables? What can you afford to cut out? Be honest with yourself about what you absolutely need, versus what is simply nice to have. It's also important to be flexible. For example, cutting out all non-essential purchases completely may be demotivating after a while, whereas limiting your 'fun' purchases to once per week or month will make you feel less deprived and motivated to stick to your plan. Set a savings goal Having an end goal in mind can make it easier to stick to the challenge. Imagine what you hope to accomplish. Perhaps your goal is to pay off your car loan, save for a down payment on a home, or set aside enough money to start a business. Knowing your 'why' can help you avoid veering off track when things get difficult. Find free joy Just because you're avoiding spending money doesn't mean you have to deprive yourself of the things that bring you joy. 'Replace shopping habits with low-cost (or no-cost) fun: picnics, hikes, library runs, or finally watching that streaming series you've ignored,' Kaufman suggested. Keep track of your progress Watching your savings increase over time can be a constant reminder that your no-buy challenge isn't limiting you; it's helping you get closer to reaching your financial goals. Consider using a budgeting app or spreadsheet to track your progress over time, and whenever you're feeling deflated, you can remind yourself how far you've come. Forgive the slip-ups You're aiming for progress, not perfection. If you have a moment of weakness and end up splurging, use it as an opportunity to learn. Then get back on track. 'If you cave and buy a latte or a concert ticket, don't quit the challenge,' Kaufman said. 'Reflect, reset, and keep going.'
