Jack Prenter is an entrepreneur and personal finance expert. He is the CEO of Dollarwise, a platform dedicated to helping Canadians find the best financial products. In this exclusive interview, Jack Prenter shares practical advice for Canadians looking to improve their personal finances.
Q: Many Canadians struggle with budgeting. What advice do you have for someone who’s just starting to create a budget?
Jack Prenter: Start simple. Track your expenses for a month to understand where your money is going. It's hard to reach your goals if you don't know where you're spending your money. Total your expenses by category, so that you can see how much you're spending on housing, groceries, takeout, clothes, entertainment etc. You'll probably be surprised at how much you spend in some areas!
Q: What’s your advice for Canadians who are trying to save but feel like their income barely covers their expenses?
Jack Prenter: With the current economy, a lot of us are struggling to get by. Don't be too hard on yourself, just do the best that you can. Even setting aside $10 or $20 a week can make a difference over time. If you can find ways to cut discretionary expenses—like eating out or subscription services—that's great. If you're finding that you end up splurging and can't control your spending habits, consider automating your savings so that as soon as your paycheque hits, a certain amount is moved to your savings account.
Q: Debt is a big issue for many Canadians, especially with high-interest credit cards. How should they approach debt repayment?
Jack Prenter: Focus on high-interest debt first using the avalanche method, where you pay off debts with the highest interest rates while making minimum payments on others. If you're mainly dealing with credit card debt, find a balance transfer card. You'll transfer your credit card debt from all your cards to that one balance transfer card and pay a lower interest rate. That alone could be enough to take the edge off and allow you to start making a dent in the debt. If you're heavily in debt, consider a consumer proposal with a Licensed Insolvency Trustee. The impact on your credit score is often worth it to finally find a way out of your debt.
Q: Investing is often seen as intimidating. What’s your advice for Canadians who want to start investing but don’t know where to begin?
Jack Prenter: Start with understanding your goals and risk tolerance. For beginners, low-cost index funds or ETFs are excellent options because they’re diversified and require minimal management. Open a Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) to benefit from tax advantages. If you’re unsure, consider using a robo-advisor, which can create and manage a portfolio for you.
Q: Housing costs are a significant concern for many Canadians. What advice do you have for those who can't afford their first home?
Jack Prenter: It's not your fault. The price of housing in Canada is among the highest in the world relative to income. Renting is often the right financial choice anyways, because you can rent the same house that you'd buy for a fraction of the cost. I've decided not to buy until prices become much more reasonable, and renting is saving me a lot of money each month! I'm also considering moving to a more affordable area, where housing is cheaper.
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