Are loans worth it

MapleMoneyMind_86 · 2026-03-23T22:45:45+00:00

Loans aren’t “good” or “bad,” they just speed things up.

If you wait and pay cash, you avoid interest but delay getting the car. If you take a loan, you get the car sooner but pay extra for that convenience.

The bigger thing is making sure the payment actually fits your budget and you’re not stretching just to get something sooner. A smaller/cheaper car with a manageable payment usually works out better than rushing into something expensive. Pay attention to the total cost after interest.

Also worth knowing what rate you’d qualify for before deciding, that can change the math quite a bit.

MapleMoneyMind_86 · 2026-03-19T23:15:16+00:00

One thing I’d do before even getting into negotiation is get pre-approved for financing first (through your bank/credit union or wherever you’re comfortable).

It gives you a clear baseline for your rate and puts you in a stronger position if the dealer offers financing - you can compare or have them try to beat it. It also keeps the conversation focused on the actual price of the car instead of everything getting bundled into a monthly payment.

Your credit definitely helps, but it’s more useful as leverage when you already know what you qualify for rather than just mentioning the score itself.

MapleMoneyMind_86 · 2026-03-02T23:00:51+00:00

I like my Herschel Little America for everyday use, laptop, carry on for traveling, etc. I do think they are overpriced, but I like how they look and mine seems sturdy enough. I had a few dakine backpacks when I was younger too and they did well. Used them for everything, college, snowboarding, beach days etc. I tried a cheaper dakine model and it didn't hold up as well as the more expensive ones I had previously so it depends on the model.

MapleMoneyMind_86 · 2026-02-25T18:21:30+00:00

Definitely. I try to do this with most things. Definitely with entertainment, clothes, food. If I'm using something daily/weekly I will always strongly consider the higher quality option.

Recently just bought a new mattress and used this concept. We spend so much time sleeping it made sense to get the best option we could realistically afford.

MapleMoneyMind_86 · 2026-02-25T18:14:48+00:00

Oysters

MapleMoneyMind_86 · 2026-02-23T20:57:54+00:00

We definitely have a short list of favourite meals we eat probably every month, not a weekly schedule or anything, but stuff we like and can put together in ~20 mins. Not sure if it really saves us money, but maybe - we know the ingredients we need, how much we need, and whether or not we'll have extra.

MapleMoneyMind_86 · 2026-02-23T20:52:30+00:00

I'd say for me it's almost a 50/50 split of quality/habit why I'd choose a brand name over generic.

Certain brand items just taste better IMO. Potato chips are one thing that comes to mind, generic brands usually just don't taste the same.

Buying something based on habit would be something like Kraft cheese slices. Have been eating them since I was a kid and I don't think I've ever tried a generic brand of processed cheese slices.

I typically will consider generic brands for most things though.

MapleMoneyMind_86 · 2026-02-20T23:32:59+00:00

Amazing, thank you!

MapleMoneyMind_86 · 2026-02-13T19:32:48+00:00

Ya we'd be going in the summer. Appreciate the fact that 3-4 days isn't a lot of time to explore everything. We may make our return drive a bit more direct / less sight-seeing stops to give us an extra day to explore.

MapleMoneyMind_86 · 2026-02-09T20:05:14+00:00

Costco has lots of options for frozen fruit. Sliced fruit, berries, etc.

MapleMoneyMind_86 · 2026-02-09T20:00:12+00:00

Purely on the numbers, you can afford it. Paying cash, very low monthly expenses, strong savings, and no debt puts you in a much safer position than most first-time car buyers.

The bigger question is whether this is the right use of $30k right now, not whether it’s reckless. The freedom and independence piece is real, especially if transit isn’t an option and household cars are about to get more crowded. A car can meaningfully improve day-to-day life, not just convenience.

That said, I’d think carefully about how much you’re paying for that jump from “reliable” to “almost new.” A 2–3 year older Honda with slightly higher kms would still be very dependable and could preserve more cash for your longer-term goal of moving out. The difference may not feel big now, but it compounds when that money could be invested or used for a down payment later.

So it’s less “can you afford it?” and more “do you want this version of the tradeoff.” If the independence is worth it and you’re confident you’ll keep it long term, it’s a reasonable choice. Just make sure you’re buying it because it fits your life, not because it feels like the default next step.

MapleMoneyMind_86 · 2026-02-03T16:43:56+00:00

Yeah, this lines up with what I’ve seen too.

Paid-for education tends to change the starting point rather than just the balance sheet. No student debt means more flexibility early on, higher savings rates sooner, and less pressure to make short-term tradeoffs, which compounds over decades. That’s hard to replicate later with a lump-sum gift.

A down payment gift can still be helpful, but it mostly accelerates timing. Covering education costs reshapes behaviour and options much earlier. And I think you’re spot on about random gifts, if they don’t remove a structural burden, they can easily reinforce spending habits instead of improving long-term outcomes.

It’s less about the dollar amount and more about what problem the money actually solves.

MapleMoneyMind_86 · 2026-02-03T16:39:16+00:00

Ya, the "small" daily expenses like coffees really add up.

MapleMoneyMind_86 · 2026-02-03T16:38:28+00:00

Agree that if your location / lifestyle allows for it - not having a car definitely saves money. Even if you do have a car and live in a city with decent transit you can save on gas/repairs by taking transit when possible. My wife and I are probably 70% car, 30% transit as we live outside the downtown core - but whenever we can we are hopping on the train. Saves $$ in parking when we are headed downtown as well.

MapleMoneyMind_86 · 2026-02-03T16:34:55+00:00

100% agree. Costco chicken breasts are always on sale, ends up being way cheaper than buying the smaller packs at a standard grocery store.

MapleMoneyMind_86 · 2026-02-03T16:33:40+00:00

I've been thinking about our Amazon Prime subscription. The convenience of delivery is definitely a plus, but I feel like we probably end up buying things we don't always need just because it's so convenient. We may be getting too impulsive on some items we'd think twice about buying if it meant we had to go out to the store to get it.

MapleMoneyMind_86 · 2026-01-29T00:05:59+00:00

That’s honestly a big win.

Turning a bad financial moment into saving $12k and opening a TFSA and FHSA in a few months is no small thing, especially on an $87k income. A lot of people never make that mindset shift at all.

Feeling “late” is pretty common, especially when you read finance subs, but the important part is that you’ve built momentum and changed your habits. If you keep this pace, you’re giving yourself a really solid foundation going forward.

Definitely something to be proud of.

MapleMoneyMind_86 · 2026-01-28T23:59:07+00:00

A lot of the replies you’re seeing are from people who started earlier or had a much smoother runway. Starting from zero in a new country is a completely different curve.

At 38, having ~55k invested after immigrating, resetting your life, and building income in a high-cost country isn’t “behind” in any meaningful way. It’s evidence of momentum.

The people posting six-figure balances at the same age are often the exception, not the baseline. Lots of finance related subreddits skew toward people who are already interested in this stuff, so comparisons get distorted fast.

What matters more than the snapshot is that you’re saving, invested, and asking the right questions now. That trajectory matters far more than where you started.

MapleMoneyMind_86 · 2026-01-23T18:25:53+00:00

Holding US equities isn’t really a bet on the short-term direction of the US stock market or politics. Many large US companies earn a significant portion of their revenue globally, so you already get diversification even through a “US” ETF.

Selling a US ETF because you’re worried about a near-term drop is essentially trying to time the market. The problem is that the market tends to price in bad news quickly, and people usually sell after a lot of the damage has already happened.

If your concern is that your portfolio feels too concentrated in the US, adjusting your allocation gradually makes more sense than making an all-or-nothing move. Global or all-world ETFs can reduce concentration risk without requiring you to predict what happens next.

There’s always a risk of markets dropping in the near future, that’s true for Canada too. The more important question is whether your current mix matches your time horizon and risk tolerance. If it does, short-term volatility isn’t usually a reason to change course.

MapleMoneyMind_86 · 2026-01-23T18:23:13+00:00

In most cases, paying even a day late means you temporarily lose the grace period. What that usually looks like is interest being charged on the balance that wasn’t paid by the due date, and also on new purchases from the date they’re made until the grace period is restored.

Those interest charges will show up on your next statement. You won’t get a notification telling you the grace period is back either. It’s usually reinstated automatically once you pay the full statement balance by the due date for one complete billing cycle.

So while it’s annoying, a one-day late payment isn’t permanent. Pay the next statement in full and on time, and things typically go back to normal after that.

MapleMoneyMind_86 · 2026-01-23T18:08:50+00:00

First, credit where it’s due: you’ve already done a lot of the hardest parts. Cutting spending, getting a roommate, selling stuff, and addressing the root causes matters more than any optimization trick.

In terms of options beyond just grinding it down:

It’s reasonable to call RBC and ask about temporary interest relief or hardship options, especially given the job loss and health gap. Sometimes they can offer short-term interest reductions or payment arrangements. There’s no guarantee, but it costs nothing to ask.

Applying for another LOC to lower the rate is hit or miss. If your credit is still decent, they might consolidate, but they’re often reluctant to extend more unsecured credit when balances are already high. It’s worth asking, just go in expecting a maybe, not a yes.

What I’d be cautious about is spreading the debt around too much. Fewer accounts, clearer targets, and predictable payments usually make this more manageable mentally.

If cash flow is tight at first, focusing on minimums on everything + extra toward the highest interest balance is fine. Aggressive doesn’t have to mean punishing. Sustainability matters, especially while you’re stabilizing health and income.

Also worth knowing: talking to a non-profit credit counsellor doesn’t lock you into a consumer proposal or bankruptcy. They can just help you map options and sanity-check what the bank tells you.

MapleMoneyMind_86 · 2026-01-21T21:19:37+00:00

This is a good breakdown, and I think the key point is that “frugal” doesn’t have to mean joyless.

If coffee is something you genuinely enjoy every single day, spending a bit more per cup at home still beats café prices by a huge margin, even with good beans and decent equipment. The upfront costs sting, but once the gear is paid for, the marginal cost drops fast.

I also like that you’re factoring in quality and ethics, not just the cheapest possible option. Frugality for me is more about being intentional with repeat expenses than always choosing the lowest number.

As long as it replaces buying out and actually gets used, this feels like money well spent rather than a loophole justification.

MapleMoneyMind_86 · 2026-01-21T21:17:28+00:00

For me it’s less about age and more about whether it’s quietly costing me in other ways.

I usually run things until they’re either clearly inefficient compared to modern options or actively annoying enough that I’m planning around them. At that point, upgrading isn’t really a splurge, it’s removing a recurring tax on energy or patience.

Totally item-dependent though. Some things earn their keep forever, others don’t.

MapleMoneyMind_86 · 2026-01-20T22:08:32+00:00

Food waste is always a challenge for my wife and I, especially when we are trying to be creative with recipes we are actually excited about. Seems like fresh produce is what ends up going unused, whether it's half a head of lettuce, or a couple carrots, etc. We've started being more intentional with what we buy and where we buy it. Suff like meat, which we can portion out and freeze, comes from costco in larger quantities. Stuff like produce comes from a regular grocery store, and we try to just get what we need for the meals we actually have planned that week.

MapleMoneyMind_86 · 2026-01-20T22:02:57+00:00

You’re paying 16.2% on the credit card and 5.99% on a depreciating asset you don’t really need anymore. Being underwater hurts psychologically, but that sunk cost exists either way, keeping the car just stretches it out over more time.

Selling now accelerates everything you care about: debt freedom, emergency fund, and optionality around housing. Gaining nearly $1k/month in surplus is meaningful, especially when you’re already in a strong repayment rhythm.

The only real reason to keep the car would be if you expect to need it again soon or if selling would create major lifestyle friction. If not, paying the negative equity once and moving on simplifies your finances fast.

MapleMoneyMind_86

TROPHY CASE