What Would You Do?

Occasionally, I’m asked, “What would you do if you were me?” The probability that you have faced the same question is very likely.  It’s a tough spot in which to find yourself!  Undoubtedly, if you know the person’s circumstances and have had a similar experience, you’re comfortable giving advice.  If you feel some hesitation, though, you would probably reconsider the facts and weigh several options in order to decide on the best advice.

The unknown piece is you can’t predict the person’s response to your advice because you are not the person asking the question.  Everyone reacts differently to advice from others so I am cautious as to whether they are sincerely looking for advice from me or seeking validation for a plan they have already thought through.

Different situations require different considerations.  Simple situations can be satisfied with easy-to-give advice.  Extreme questions require extreme considerations and planning.  If my friend was asking for the best apple pie recipe, that’s easy.  However, if my friend was asking how much to save for his retirement, that requires more thought and planning. 

Here’s the dilemma when extreme questions are about money.  Extreme questions require you to expose yourself.  One client said, “I feel like I am standing here naked,” as she handed me their investment portfolio, credit card statements, bank statements, and tax returns.  No doubt it’s a daunting experience to reveal what you’ve done with your life’s earnings.  Definitely you saved as well as squandered a share of your income.  You may even feel like you could have done a better job if you’d tried harder.  A financial planner can be compared to a doctor.  We diagnose potential problems when you are willing to expose yourself.  We examine any symptoms and treat any ailments with plausible remedies to make the “boo-boo” go away.  Many people are reluctant to go for their annual health check-up.  They also experience the same reluctance to make an appointment with a financial planner.  Much like an x-ray reveals broken bones, a financial plan can help diagnose broken parts in need of repair and ensure you are on the right track. 

 

The decision you must make is whether to work with CERTIFIED FINANCIAL PLANNER® professional or fly solo.  Equipping yourself with financial information is the secret to a successful outcome.  Financial Literacy Month and Financial Planning Week were launched for the same reason I publish my blog posts, to create awareness concerning “your financial health”.  We can’t do everything perfectly right.  I can honestly say I squander my share of money on things that are not always beneficial.  However, I believe we can all be coaxed into striking a balance between our spending and saving habits.  Maintaining great financial health is an impressive habit to develop, something which was discussed in my last blog.

With masses of information available on the Internet, here are three specific websites to gain access to various topics, such as dealing with life’s challenges, starting your first job, and how to open a bank account.  Pick a topic of special interest to your particular circumstances and get smarter about money.

- Get Smarter About Money

- Financial Planning For Canadians

- Financial Consumer Agency of Canada

To end on a different note, I’d like to share this story that I use in my “Money Matters” presentation.

A magician was working on a cruise ship in the Caribbean.  The audience would be different each week, so the magician allowed himself to do the same tricks over and over again.

There was only one problem. The captain’s parrot saw the shows every week and began to understand what the magician did in every trick.  Once he understood, he started shouting in the middle of the show.

“Look, it’s not the same hat!”

“Look, he’s hiding the flowers under the table!”

“Hey, why are all the cards the Ace of Spades?”

The magician was furious but couldn’t do anything; it was the captain’s parrot after all.

One day the ship had an accident and sank.  The magician found himself on a piece of wood, in the middle of the ocean, and of course, the parrot was by his side.

They stared at each other with hate, but did not utter a word.  This went on for several days.

After a week the parrot finally said, “Okay, I give up.  What’d you do with the boat?”

    

Like the parrot who wondered what the magician did with the boat, we, too, may be wondering at the end of our working careers, “What did we do with the money?”

I’m asking, “What would you do”

…with an inheritance

…to prepare for retirement

…when you face a critical illness

…if you lost your job

…to ensure you are on the right track financially

…to save for your children’s education

Extreme questions may require you to “get naked”?  So, what will you do?

What's Your Story?

As both Financial Literacy Month and Financial Planning Week approach, the focus is on money management.  How well do we handle our money?  ABC Life Literacy Canada has put together a financial literacy program called, Money Matters.  This is synchronicity at its best.  The purpose of my blogs is to provide information in an understandable matter for people interested in wanting to learn and improve their money management skills.  So it’s no mere coincidence that I married the two ideas. Peoples’ dreams are as important as money matters which led to the creation of my blog, Money Matters and So Do Your Dreams.

In preparation to facilitate the ABC Financial Literacy program in the upcoming month, I believe this activity below is worthy to be shared with anyone willing to dare to compare.  I would like you to meet Tenzin and Riley.

Tenzin works hard for his money, but runs out of cash before the next paycheque.  He’s not sure where all his money goes.  There’s the cell phone plan, rent, cable and internet, credit cards, and of course, a guy’s got to eat.  He usually grabs a bite at a sandwich place around the corner from his work, or orders take-out.  He uses the bank machine at the corner store close to his place.  There’s always something he needs…and the place is open night and day.

Riley’s good at making money stretch. She knows how much money is coming into the family (income), and exactly where it goes (expenses).  She uses coupons, comparison shops, and makes the family’s meals at home.  She puts a little money aside each month for a “rainy day”, but wishes she could save more.  She’d like to set aside enough by the time her kids grow up to help pay for their education, but isn’t quite sure how to go about it.  One option she wants to learn more about is Registered Education Savings Plans, and the help she can get from the Canadian government to help her savings grow.      

What’s your story?  Do you have more in common with Tenzin or Riley?

What are some things that Riley does that helps her save?

What are some things that Tenzin does that he could change in order to spend less? 

 

• Think of examples of your spending and saving.
• If Tenzin is #1 and Riley #5, what number would you give to yourself?
• Why?

Spends a lot.
Saves no money.



Spends carefully.
Saves for her future

 

                                                                                                                                    
1                               2                               3                             4                               5


By circling the numbers 1 or 2, you are saying your money habits are more like Tenzin’s. By circling the numbers 4 or 5, you are saying your money habits are more like Riley’s.  If you circle the number 3, then you are saying you equally share money habits of both Tenzin and Riley.

Here’s one of many Money Challenges found in ABC Life Literacy’s activity workbook:

 

Start a money journal. Every day for a month, keep track of everything you buy, from groceries to your daily cup of coffee and snacks.  At the end of the month, use your journal to help you make or change your spending plan.

More information about the financial resources offered by ABC Life Literacy can be found by clicking here.  Happy Learning!