What Will Your Reality Be?

The realization kicks in around the time we are in our forties.  We feel we have been working endlessly and begin to seriously contemplate retirement.  Will we be financially ready in fifteen or twenty years?  

Up to this point, we haven’t adequately saved.  When we glance at our bank or investment statements, we feel like someone’s been stealing our money.  But the stark reality opens our eyes. We don’t need to worry about anyone stealing our money.  We do a good job of spending it.  When we recklessly spend, we steal money from ourselves.  The harsh reality is we exchange our money for every simple pleasure life offers us now. The practical reality tells us we don’t have to give up living and enjoying life to save money.

Let’s be W-I-S-E about the ways we save and spend while we enjoy life. 

W – Wealth can be built up in multiple ways, both in our investment accounts and home (and other real estate). Putting yourself on “automatic” is the best way to accumulate wealth.  In David’s Bach’s book, The Automatic Millionaire, “automatic” means setting up payments to automatically transfer into a savings plan.  The concept is known as paying yourself first.  The first 10% of your salary belongs to you (to be tucked and hidden away) with the remainder directed to other needs.

I – Investing for the long term is a slow and steady process. We talked about the rabbit and turtle analogy in the previous blog, Connect the Dots.  Because things don’t happen as fast as we would like is not a reason for us to be discontented with the results. Think about someone dealing with a shoulder injury; the healing process cannot be rushed.  A child born today doesn’t graduate from high school tomorrow.  Because you invest $100 a month now, doesn’t convert you into a millionaire in a year.   The world view believes everything should instantaneously happen.  For certain things, like instant oatmeal which cooks up in two minutes or less, this is true but investing in the markets has its own philosophy.

S – Simply spend and borrow wisely. These two need your attention when everyone and everything whisper in your ear, “Why wait when you can have it now?”  Television ads, Facebook posts, and marketers encourage us to part with our money.  If we don’t catch ourselves when temptation knocks, we fall into its trap. 

This point comes from the book, The Automatic Millionaire.

“If we didn’t have enough cash to buy something, we didn’t buy it.  The entire time we’ve been married, we’ve never carried credit card debt. When we used the cards, we paid them off the same month.”

Can you say the same as Sue does?  The interest paid on any unpaid credit card balance squashes dreams.  We don’t want this.  

E – Enjoy life. You are encouraged to dream, the very premise of this blog website. So don’t stop dreaming rather “chase” and “create” the very things you desire to achieve.

Saving for retirement does not require discipline when you heed the advice of making savings automatic. The discipline is only required to set up the process. Your future reality will then take on a life of its own.  The reality of a comfortable retirement is yours to paint in the colours of your choosing.  Do you see the endless possibilities?     

What Bugs You about the Pieces of Your Financial Puzzle?

Have you ever solved a jigsaw puzzle?  Anyone who has learns something through the process.  One thing is certain, puzzles require patience. Without patience you are hopeless especially when the puzzle has many pieces. The more complex the puzzle, the more difficult it is to solve.

Did you know there are appropriate steps to solve a puzzle? The first step is to begin with what we know.   We first look for the outside border pieces. These straight edges help define the boundary. Then the other pieces are sorted into piles by colours, patterns, and shapes.  Particular attention is given to the tiny details on each of the pieces. These intricate details help place the pieces in their rightful place creating a final beautiful image.

No doubt, we may not be interested at all in solving jigsaw puzzles.  Ever!  But perhaps we are interested in solving our financial puzzles. There’s a correlation between solving puzzles and fitting the pieces of our finances together so we achieve and create a beautiful image of our lifetime goals, dreams and aspiration.

Looking at the disarray of our finances may resemble looking at pieces of a jigsaw puzzle.  We can’t see the whole picture when the pieces of our finances look like they’re broken and shattered into one big heap.  Debt here and there! Savings who knows where! Lifestyle expenses unknown! Consequently the more pieces to our financial picture, the more confusing and complex it can be.

Working slowly through the intricacy of our financial pieces is the same advice a puzzle solver knows only too well. When we work too long on any project, the tendency is to become overwhelmed. The frustration leads to giving up on the puzzle.  Most puzzle-solvers know their limitations. They walk away only to return later with a new burst of renewed energy and fresh eyes to see something new they hadn’t seen previously.

We know a myriad of steps could solve our financial puzzle.  Here are a few simple rules that we can extract from puzzle-solver enthusiasts and apply them to our needs.

1.  Grasp the big picture.

I am an advocate for putting your goals in writing.  When you refer to your list, you will not be swayed by distractions.  Your vision will be clear; and you will focus only on your concrete desires.

2. Be determined to see the picture come together one piece at a time.

When you first sort through your lifestyle needs, debt obligations, and savings plans, you may not see the whole picture.  But if you are persistent and determined to create a beautiful image with your finances, you will be astonished with the results.  You must tell yourself that giving up is not an option. 

3. Work with a partner.  

There are many advantages to having an accountability partner. Two such advantages are motivation and clarity.  When you find yourself in a slump, knee-deep in financial confusion, you need someone who will shine a fresh perspective on your circumstances.  We could all use someone to help us see what we can’t understand, analyze what we don’t how to fix, and especially achieve what we didn’t think was possible. Your spouse, friend, family member, or financial planner could be that person in your corner.

These three simple, yet concise, steps sound so easy when you are making sense of your financial puzzle.  The power is in knowing what to do and doing it. Any time you embrace knowledge, you are empowered to change your circumstances.  When you manage your money and debt wisely and save for the future, you will achieve what you want to achieve.

So one question remains…“What bugs you about the pieces of your financial puzzle?”  

Post your question below!  Every question deserves an answer.  

         

“Somehow” Doesn’t Just Happen

A vague sadness looms over the days and weeks following the annual Grey Cup game.  This all-important finale marks the end to the year’s CFL season. Everything comes to a standstill.  The year is built on rough and tough plays, unpredictable wins and losses, surprising statistics, and the firing, hiring, and trading of players and coaches.  Anything can happen in the season.   Unexpected! Unanticipated! Sometimes ending with a dramatic and exciting finish like this year!  

Bruce Arthur, sports columnist for the Toronto Star, summed up the Toronto Argos’ unbelievable win in the final captivating minutes of the game with these words.

“This is the CFL, though. This is Canadian football. Bo Levi Mitchell hit Jorden for a deep ball, a gutsy throw. He had a shot at the end zone. The ball sailed up through the snow, and for a second in the press box a reporter yelled, “He’s open!” The clock was ticking down.

And Matt Black, an old Argo, came across and intercepted the ball in the end zone. Eight seconds on the clock, and the snow was still falling. Somehow, the Argos won the 105th Grey Cup, 27-24.”

You can breathe now.  The game is over.  But you have to admit that as the clock ticked down, you must have held your breathe like I did. 

No surprise here, I am not a sports columnist and this is not a sports blog.  So, why am I sharing Bruce Arthur’s sports column about the upheaval the Toronto Argos created for the Calgary Stampeders in Sunday’s Grey Cup Game?

Hidden in the sports columnist’s writing is one word which defines the chances of this happening. 

Read it again.  Search for it. See if you can find it.

The word is “somehow”.  There’s a mystery surrounding this word. “Somehow” means “in some way” or “by some means”. Unknown! Unexplainable!

As a financial planner, I am all about “certainty” and “surety” especially when it comes to having a “game plan” for the future. 

Yet, I appreciate the similarities between a well-played, well-executed football game and a well-designed, well-executed financial plan.  Both have the ability to create winning drives which result in achieving goals and dreams. 

When the word, “somehow” gets thrown in, it seems like any clear thought out plan did not exist.  There’s no strategy; there’s no planning with “somehow”.

Here’s the question:

Wouldn’t we rather be certain about our financial future than uncertain?

 

          Somehow means we’re not sure.

          Somehow, one day we will pass our business to our children.

          Somehow, one day we will retire.

          Somehow, one day we will be debt-free.

Think of your life as one important Grey Cup game. Imagine each of your life planning stages divided into separate quarters.   

          The 1^st Quarter is your 20’s, 30’s and 40’s.

          The 2^nd Quarter is your 40’s to early 50’s.

          The 3^rd Quarter is your mid-50’s to early 60’s.

          The 4^th Quarter is your 65 to 70.

Then you are at the Grey Cup Party, enjoying your well-designed retirement into your 70’s and beyond.   When the game is well-played and has ended, you have the distinct privilege of hoisting your victory cup, living your dream retirement. 

Every quarter, or life planning stage, has its own unique challenges.  Each quarter will come with a change of priorities, circumstances, and needs. When you create winning plays in each quarter, you will reap the benefit when your game is complete.  Your life’s playbook is specific to your needs and should be designed to drive your goals and dreams.  You shouldn’t have to wonder whether somehow you will achieve them.      

At age 20 or 30, your retirement years will feel so distant when your focus is on paying off your student loans, planning your wedding, acquiring a house, and raising your children. At age 40, your retirement will feel more realistic.  By the time you are 55, you might recognize retirement knocking on your door.  By 65, you may actually retire.

No football game ever plays out the way we would like.  Real life is like this too.  Your playbook is a compilation of strategies built on everyday realities.   Winning plays are created to tackle your debt, pick you up after a fumble, and to keep you in bounds with your spending plan.  Specific interferences can rock your game plan.  Your drives might need to be tweaked to combat life’s intrusions, like a disability, an unexpected death, or the adversity of a divorce. 

Financial planners know that creating your own winning plays might be difficult.    A financial plan, is like a playbook, specifically aimed at successfully reaching your retirement goal.   Having a plan is far better than wondering if “somehow” you can win without one.  No longer will your retirement have to be an elusive dream, some pie-in-the-sky fantasy. When preparation and planning begin early and play a part in all life stages, your dream can become reality.

Robert Collier makes an excellent point. He conveys “Success is the sum of small efforts repeated day in and day out.”   When you believe this to be true, you will be ready to design your game-winning playbook.

We Create Tomorrow

We Create Tomorrow by What We Dream Today

Do you believe “we create tomorrow by what we dream today”? Maybe too many people rained on your parade, dampening your give-it-all-you-got spirit and squashing your hope.  Maybe someone said “Why do you want to do that?” You second-guessed your dream, doubted your ability to accomplish your goal, and gave up entirely on dreaming. “What’s the use?” you mutter.

Perhaps these wise words from Oscar Wilde may offer encouragement.

“If a thing is worth doing, it is worth doing well. If it is worth having, it is worth waiting for.  If it is worth attaining, it is worth fighting for.  If it is worth experiencing, it is worth putting aside time for.”

We can apply Oscar Wilde’s wisdom to today’s key message, “We create tomorrow by what we dream today.” The word “create” means “make a thing that has not existed before”.   Before we can create “a thing”, we need to know what we want to create. This analogy of needing a dream before creation relates to the crazy idiom of “putting the cart before the horse”.  It’s just doesn’t work. That’s why “dreams” are important.   You need to know, “What’s your thing?”

I also hate to disappoint you but there’s no Fairy-God Mother who can magically wave her wand to create your dream.  Effort and work are the magic.  As I look at my blog website and see the number of blog posts, I realize that they didn’t simply appear.  I know some would ask, “Why do you want to do that?” but there’s a method to my madness.  It’s my desire to help people understand that money matters and so do dreams.  Finding the right combination of strategies, financial products, and desire is the magic that makes dreams come true. I want you to believe and understand this “magic” yourself.

Seeing the possibilities, acting on instinct, and plugging away at the tedious tasks move you closer to your dream.  The tasks may not be glamorous but they are definitely necessary in order to purposely live life each day.  Early in January, John Maxwell wrote 2016:Your Year of Living Intentionally. He explained the difference between good intentions versus being intentional. Words associated with living a life of intentionality are “action”, “purpose”, “definitely”, “today”. These active words are an expression of commitment.  Making an effort to work towards your dreams requires commitment.  If your dream is worth experiencing, it is worth putting aside time for.   

Here is your assignment “to create tomorrow”.  Determine your dreams.  Then use a Daily Planner to schedule appointments with yourself to work on those dreams.  A new year with a new process opens the door to a world of new possibilities.  I am excited for you to start. 

Create the Ultimate Vision

We’ve all heard it.  The all-too-common phrase, “A picture is worth a thousand words.” When you look at a picture, clarity and meaning without words are there for all to see. Whether the picture is a gleaming child, a peaceful sunset, or a dream home, these images have a way of springing emotions to life.  We feel it. So if this is true, then is it possible that a picture can propel our goals, dreams, and aspirations into reality? People who have created vision boards for themselves say, “Yes!”     

Chase and Create

A vision board is a collection of pictures depicting the things which you long to achieve or acquire. It’s a collection of your goals, dreams and aspirations, the very things I have been encouraging you to “chase” and “create.”  In place of a list written only in black ink, creating a poster board covered with images and inspirational messages, will inject colour and meaning into your dreams.  At a quick glance, you’ll see your life’s plans on display as a daily reminder.  With mustard-seed faith, your dreams will magically transform into reality when you believe they are possible. 

To support this theory, the book, The Secret, explains the powerful process of visualization in this way.

“The reason visualization is so powerful is because as you create pictures in your mind of seeing yourself with what it is you want, you are generating thoughts and feelings of having it now. Visualization is simply powerfully focused thought in pictures, and it causes equally powerful feelings. When you are visualizing, you are emitting that powerful frequency out into the Universe.  The law of attraction will take hold of that powerful signal and return those pictures back to you, just as you saw them in your mind.”  

The Vision Board as a Remedy

Creating a vision board for your goals and dreams might go one step further.  I sense this process as a remedy to cure specific ailments.

1.     Overcome the FOMO epidemic.

Until recently, I had never heard of FOMO. Perhaps I had but didn’t realize the epidemic had a different name than the one that I knew.   FOMO, “the Fear of Missing Out”, is equal to what I’ve always known as “keeping up with the Joneses”. Marissa Sollows, Senior Education Coordinator, with Financial and Consumer Services Commission of New Brunswick, wrote an excellent article, Conquer Your Fears of Missing Out to Get on Top of your Finances. 

Marissa explains that FOMO, the Fear of Missing Out, is the physical and emotional reaction we have when we feel that we are missing out on an opportunity. FOMO can provoke strong emotions ranging from sadness to full blown anxiety. It can also make us feel unsatisfied with the experiences we have had and things we own.   Marissa goes on to explain that these strong emotions are heightened with the posts viewed on social media of our friends’ dazzling lives. 

The cure for FOMO would be to determine what you want and then create your vision board.  Here’s the underlying truth. “You can have ANYTHING you want. You just can’t have EVERYTHING you want.”  You have to figure it out.  A vision board will provide focus and clarity.  You will no longer be chasing someone else’s dream.  You will chase your own dream.

2.     A Change in Direction.  

Life has a way of steering us in the opposite direction we ever intended to travel. A painful relationship, an unsuccessful business venture, and a sudden illness can send us spinning.   We aren’t given any clear explanations how this happens but when it does, we feel totally helpless and frustrated, leading us to believe that we may never be happy.  It’s at this junction that we have a choice.  Don’t you love choices?  We can choose to believe the worst that we were destined to live unhappily ever after, or we can choose to believe that the best is coming our way.  We can choose to believe that it’s our turn to have the very things our family, friends, and neighbors have.   And it all starts with believing and creating the ultimate vision both in our minds and on a vision board. 

Permission to Play and Create

Now that you have permission to play with glue, scissors, and paper, capturing and creating images of your life with pictures, you may feel lost. Don’t fear. Click here for a quick four-step guide to help create your vision board.   Don’t stop here. This is one opportunity you don’t want to miss out on.  A Google search will lead you to plenty of information on vision boards and its benefits.  I would love to hear the results of your creation. I invite you to share your thoughts, successes, and yes, even your frustrations with your vision board masterpiece.

Time for Review

I am certain you don’t need someone telling you how quickly time is passing.  One peek at the calendar shows just how close we are to the end of June which is a sign that half of 2016 has disappeared before our eyes. 

Like many corporate employees face mid-year performance reviews, this is a good time to review your New Year’s Resolutions. Remember the personal goals, dreams and aspirations you made at the beginning of the year.  Go ahead. Blow the dust off the list.  It’s time for review. 

It’s possible you didn’t get started or simply stalled on moving forward.  Now is the best time to reignite the spark. If you can’t find your list or can’t remember the things on your list, create a new one. If a corporation can set a different fiscal year-end so can you! Your personal fiscal year may run from July 1^st to June 30^th.  “New Year’s Resolutions” can be created any time.

Here are three ways to help motivate you into keeping your commitments. 

1.     Watch the video below, Start Saving Now.  You may recognize some do’s and don’ts to ensure you achieve your desired plans.

 

2.    Refer to the blog, The Five Strategies for Sticking with Your Financial New Year’s Resolutions for additional ideas.

 

3.    Lastly, repeat Step One and Two as necessary to charge your human battery so that you can create an everlasting commitment to follow through with your plans.
 

When the time comes for the next review, you will feel confident that you did your best.  You had a list; you created sound strategies; and you overcame obstacles. The best part will be that you achieved your dream, goal, or aspiration.  You can then expect the best performance review of your life.

 



New Year’s Resolutions OUT–New Year’s Aspirations IN

 

New Year’s resolutions generally include typical “have-to-do” items. Many people have travelled down the same route, year after year, only to meet failure rather than success when attempting to follow through with their resolutions.  I did, too, until I discovered a more effective New Year’s ritual.  

Sarah Ban Breathnach, author of the book, Simple Abundance – A Daybook of Comfort and Joy, suggested that we write down our most private aspirations rather than resolutions. Perhaps the magic is in our approach.  Perhaps words like, “resolutions” and “goals” are too harsh, overwhelming, or even intimidating.   Aspirations, on the other hand, appear to breathe life into our lists.  Sarah begins her book with an entry for January 1:  A Transformative Year of Delight and Discovery.

“New Year’s Day.  A fresh start.  A new chapter in life waiting to be written.  New questions to be asked, embraced, and loved. Answers to be discovered and then lived in this transformative year of delight and self-discovery.

Today carve out a quiet interlude for yourself in which to dream, pen in hand.  Only dreams give birth to change. What are your hopes for the future as you reflect on the years that have passed?  Gradually, as you become curator of your own contentment, you will learn to embrace the gentle yearnings of your heart.  But this year, instead of resolutions, write down your most private aspirations. Those longings you have kept tucked away until the time seems right.  Trust that now is the time. Ask the questions. The Simple Abundance path brings confidence that the answers will come and we will discover – day by day – how to live them.

Talk a leap of faith and begin this wondrous new year by believing.  Believe in yourself. And believe that there is a loving Source – a Sower of Dreams – just waiting to be asked to help you make your dreams come true.”   

With this new information in hand, perhaps you are now better prepared to achieve your goals, dreams and aspirations.  The task won’t appear as daunting. Why don’t you give it a try?

Happy New Year!

Money Matters . . . And So Do Your Dreams

Our plan is to achieve our dreams but sometimes our dreams do not follow our plan.  Life happens! Our dreams may appear to wash away simply because life takes a different turn.  Because life is changing, your dreams may follow suit.

A favorite quote by Marcia Wieder, author of the book, Dreams are Whispers from the Soul, says, “There are the dreams we have for our life and then there are the dreams that life has for us.”  Life zigs and zags.  While we’re forging ahead, we should put precautions in place.

Although obstacles may stand in the way of your dreams, knowledge is powerful in terms of overcoming these obstacles. At the onset, you can start by developing a personal financial roadmap to drive your destiny.  Unforeseen events can occur so the best you can do is to build “protection” into your plan. When you look at the list of Ten Financial Items Every Canadian Should Have, having insurance is one way to protect your family and you. Drafting wills and power of attorneys ensures your intentions and wishes are known.  Creating emergency savings for those unexpected events will relieve financial stress.

This idea of taking the above precautions is not necessarily different than other precautions you presently take.  They are precautions nonetheless. 

• You carry a spare tire, jack, and tire wrench in case your vehicle has a flat tire.  
• You may carry a band-aide in your purse in case your children cut themselves.
• Before you leave your home, like my husband does, you ensure appliances are turned off to prevent an unnecessary house fire. 

Once you have built in safety features into your plan, then you can incorporate other strategies. These safety features, your building blocks, are like a stairway. You are making your plan sturdy to successfully reach your destination, your dreams.

Every dream is possible with the right strategy. With a dream list in hand, you develop a purpose for saving and making sacrifices becomes easier. It will no longer be a “have-to” but a “want-to” strategy. You may not know how to accomplish your dream.  A financial planner will be able to provide you with options to do so.

• You may want to further your education -- take a few courses, pursue a degree, or enroll in a certificate course.  However, you are unaware of the Lifelong Learning Plan to help pursue this avenue.
• You may want to purchase your first home. However, you are unaware that the Home Buyer’s Plan may be an option for your down payment. 
• You may think saving for your children’s education is a big feat. However, you may not realize the Government of Canada provides assistance with the Registered Education Savings Plan.

Always believe that anything is possible if the right strategy is built to enforce your dream.  Life happens so the best we can do is take care of money matters while we focus on our dreams.

What Do You REALLY Want?

“What Do You Really Want?” There’s a GOOD reason to answer this question. 

Why? “If you have a clear vision you will eventually attract the right strategy.  If you don’t have a clear vision no strategy will save you.” – Mike Hyatt. 

The six main steps in the financial planning process illustrate the obvious.  Once you establish your relationship with a financial planner, the next crucial step to get you on the right track is to know what you want in life.  It’s difficult to figure the “How” when you don’t know the “What” and “When”.  An important part of your meeting with a financial planner will be discussing your goals, dreams and aspirations. It’s next to impossible to do any of the steps that follow unless your goals are confirmed.


I often share my CRAZY “Rocking Chair” exercise with clients.  Although this sounds hokey-pokey, something mystical happens in the process of writing your dreams. The flow of thoughts and ideas from your heart to your brain to the pen and on to paper allows your life to unfold before your eyes and become reality.  Believe me; this works.

The Rocking Chair Exercise

TAKE a brightly colored (8½”x11”) piece of paper.  {A boring, white sheet will not do; your favorite color works the best.}   

FOLD the paper four times until you are holding what looks like a 2”x2” square.  GET still and relax.  

IMAGINE you are 105 years old, sitting in a rocking chair at your nursing home and looking outdoors through the window. You have all your facilities--you are as smart as a whip. When you look through the window, you imagine watching a movie made of your life; you see all the things you said you wanted to do and you did it. You were not discouraged by believing: you were too old, too young or not educated.  You were not concerned about money or any obstacles that may stand in your path.   You said, “I want to do this; and you did!” 

NOW take and unfold your paper to its original size.  You see sixteen squares on the front and back.  Thirty-two spots to write your goals, dreams and aspirations. The ones you saw played in your movie.  Some may or may not involve money (i.e. learn to play bridge; write a book-the cost will be in the publishing; or winter vacations in Florida).  This exercise will not be completed in an hour or even one day.  This type of exercise takes time.  Keep your antenna up; see what others have done; if you like what you see, put it on YOUR list.

REMEMBER you must grasp the pen and write on paper.  Just thinking about your aspirations is not sufficient.  The MAGIC happens in the process of “DOING”.

THE CHALLENGE:  Write your goals, dreams and aspirations.  Once your list is complied, then it’s easier to take the next step. Distinguish your goals between urgent and important; and subdivided further as short, mid, and long term.  JUST SO HAPPENS worksheets are available to help with the process.  They’re yours for the asking.

DREAM BIG!