Overall my net worth is negative - I have debt. Considering this, there is almost zero reason to have "savings" while I have debt.
The way I understand personal finances - paying debt down is effectively a 100% return on investment. There is zero risk of losing money by paying down debt - aside from theoretical opportunity cost.
So aside from a small pool of emergency money, why would the average Canadian ever have savings while they have debt? I have yet to find any sort of investment strategy that increases my networth faster then debt repayment - especially if a good chunk of that debt isn't asset-backed.
(edit: things get a bit confusing when I start considering TFSA/RRSP to gain tax benefits - not quite sure how to model this)
Maybe I'm being stupid?
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