Take control of your finances with these budgeting tips for young adults + MORE Nov 28th

As you start your career and earn a living, you’ll have to figure out how to manage your money on your own. It’s not uncommon to look at your bank balance and wonder where all your money went, even though you just got paid. That’s why you’ll want to create a budget.

According to an RBC poll, more than 80% of young adults believe financial stability is central to their overall happiness. Luckily, getting started is surprisingly easy. And the more you do it, the easier it gets. The poll also found that when young adults engaged in their finances, they are more likely to be confident in their ability to save (83%) and invest (60%). 

To help you have more control over your money, we go over the importance of budgeting, how to build and maintain a basic budget and the different financial tools you can leverage.

Why is a budget important? 

Creating and maintaining a budget is a powerful financial tool with many benefits. For one, it identifies your sources of income (when you have incoming money) and your expenses (when the money goes out of your account), usually on a monthly or yearly basis…

Franchise founder Nathalie Smith still remembers seeing the blissful expression on guests’ faces when they left the spa where she swept the floors and answered the phones. Years later, she was thrilled when she heard of a way to give people the same kind of feel-good, big-reveal moment: lash extensions. When she had saved up enough from her property management business—and with the help of some technical classes she took in her spare time—she opened her own eyelash salon in a small, third-floor unit in Toronto. The project grew to a six-location franchise in the GTA, now called MYNC (pronounced “mink”), “where guests socialize while getting pretty in a wink.”

North American franchise Blo Dry Bar acquired MYNC in October. Now, Smith is preparing to launch MYNC nationwide. She continues running MYNC as brand president, supporting new franchisees. Smith believes that you can turn passions into proceeds when you pursue a career that you truly love. Read more of her biggest takeaways on managing money and growing your wealth…

I have a house I was renting in the past and now want to move into as my primary residence. Is there a length of time that I need to live in it to ensure capital gains will not apply on my death, or will capital gains apply based on the years it was rented?

Also, if I co-own this house with a colleague (not spouse/partner), is it automatically assumed to be “joint tenancy” or is it assumed to be “tenants in common” if it is not specified (i.e. the title just shows the two names)?

—Debra

Capital gains when moving into a co-owned property

When you have a change in use for real estate you own, Debra, you are considered to have sold it and then reacquired it immediately. The transaction is considered to have taken place at the fair market value for the property, so you cannot assume an artificially low value. This generally results in a capital gain if the property has appreciated. If you have claimed depreciation (as capital cost allowance), the previous claims are brought into income in that year (known as recapture of capital cost allowance)…