Writing to Change the World

The entire world has become unraveled.  In a matter of two weeks in our small corner of the gigantic globe, non-essential businesses have closed their doors in a dramatic effort to stop the spread of the deadly and infectious coronavirus.  Never in this generation’s lifetime has anyone witnessed something like it.  People who thought their jobs were secure learned otherwise.  Many are taking advantage of the financial institutions’ offer to defer loan payments up to six months.  In Saskatchewan, all crown utilities have implemented a bill-deferral program with zero-interest charges. Churches, recreation and entertainment facilities, and other services have been instructed to follow the strict guidelines to minimize contact with others.  The world has been told to “shut-down”.

This pandemic, declared by the World Health Organization on March 11^th, has led to massive job layoffs and created fear.  Many people live with uncertainty. Some financial aid is forthcoming from the federal government to carry people through this crisis.  In the meantime, as in most calamities, everyone will look for ways to cut their spending as a result of reduced income. 

The role of financial planners is to assist their clients manage through the chaos. Eventually this scare will pass and life will return to a state of normalcy. When it does, the wise step would be to have a solid action plan. Most people know what they should do, but don’t. Hopefully, this unfortunate world crisis will cause us to see the importance of an emergency fund (or rather…a disaster fund). No one saw this coming; and no one would have expected this. But it’s true with any disaster. When you are prepared for an emergency (or disaster), you alleviate the pressure created by excessive worry.

All the writings shared at this website have been written with one purpose in mind.  That purpose is to help you fulfill your dreams while you manage money issues. The one major take away I gleaned from this pandemic is the importance of my family and friends.  They are an integral part of my life and they take priority over material things.  Today’s society has forced everyone to want more, be more, and have more.  That just doesn’t sound right considering what we all have witnessed on the world stage today.  Being safe and keeping my family safe is now top of mind.  I hope it’s on yours too.  Although the world outside our sphere appears to have become unraveled, let it not drastically affect our inner sphere.

Money Can Only Buy “Stuff”

When is the last time you stopped to assess your life?  I wonder if your thoughts are the same as mine.  I look around now and am simply grateful.  My possessions might not be glamourous, my clothing stylish, nor my vehicle extravagant, but I feel content. Maybe contentment comes with age, travelling down life’s bumpy trails, or simply with gratitude.   I don’t know the secret prescription to this peaceful contentment drug but I know its importance. From a financial viewpoint, before we kick-start the financial planning process -- the “I want” stuff -- we may be wise to kick-back and evaluate what we have.

Benjamin Franklin said, “Money has never made man happy, nor will it; there is nothing in its nature to produce happiness.  The more of it one has the more one wants.”   

The first step in the financial planning process is to set our objectives and rarely have we ever discussed the things money can’t buy.  Now I begin to believe we should. The list below compiles essential items we often overlook when striving to achieve financial success. Without a doubt, our financial goals are important.  The true objective is to strike a balance.  Getting to the end of our lives and having lost sight of these vital elements to a life well-lived and well-loved would be tragic. 

Recently, I stumbled upon a new perspective.  The material items we consider valuable today will end up in a heap of trash in the future.  We can easily trap ourselves into buying the new refrigerator with a single ice maker from Lowe’s, a gaming laptop from Best Buy, or a reclining leather home theatre sofa from Wayfair.  Enjoying a comfortable lifestyle needs to be weighed with building ourselves and creating meaningful relationships.

Can you see how easily we get caught up in the busyness of “doing” and forget the pleasure of “enjoying”?  We get absorbed in the having more “material stuff” and we lose sight of obtaining the “priceless stuff”.   As these relaxing months of summer come to a close and a new season of goal-setting and achievements pops up, let’s ensure our priorities include the “invaluable stuff”.

Anything Can Happen – Be Prepared

The news reports we hear of peoples’ stories are real.  They shock us. They surprise us.  They cause us to be sympathetic but do they ever move us to make changes in our own lives? Maybe. Maybe not. 

The latest news is the unexpected demise of Sears Canada.  No one saw this coming.  A reputable Canadian company with a solid financial track becomes a victim of retail bankruptcy.  Ron Husk’s story paints a grim reality that you can never be prepared enough for this kind of situation.  At age 72, Ron is returning to work part-time at Home Depot.  It's the last thing he expected in his retirement years.  Retired employees like Mr. Husk had their life insurance, health and dental benefits cancelled in September.  Soon, Sears' retirees are expecting their pension to be reduced by 20 per cent.  The point is these kinds of situations can happen to anyone.  Financial mishaps occur in different ways, sending our financial situations spiraling out of control.  

You have witnessed your share of stories like I have.  I have seen a man lose his home and everything he owned because of a house fire.   I heard from a young husband and father of two who was fighting pancreatic cancer by travelling to Austria for medical treatment.  I have seen a woman struggle with pain as a result of a vehicle accident which broke multiple bones and caused severe brain injury. These incidents are traumatic.  We are naïve if we believe nothing can happen to us. This dismal reality causes us to be aware of our priorities.

Where am I going with this?

Most people have never heard of Abraham Harold Maslow or his creation of the Hierarchy of Needs.  His study reveals that we have a five-tier model of basic needs. Once our basic survival needs are met then our desire is to move up the pyramid to the next level.  

Many articles and blog posts have connected Maslow’s Hierarchy of Needs to our financial needs at each of these levels.  One quick Google search will link you to many explanations about applying this theory to managing your finances accordingly.

For me, the one thing that stands out is how we have a tendency to mix up our priorities.  Literally, this breaks my heart. I see a picture of a two-year old daughter going for her first manicure and pedicure.  I see a two-year old son getting a remote-operated toy monster truck for a Christmas gift.  I see people trading vehicles less than a year old “just because”.  Spending money on your children and yourself goes beyond meeting the first two needs:  physiological and safety/security.  They are fulfilling the need for love (spoiling your children) and esteem (displaying what you drive as important).

I don’t like using the term “wasting money” per se.  However, the truth is you may not have built a strong solid foundation of security before you jumped ahead to impressing your children with gifts.  If they were old enough to choose, they may have chosen security over gifts of love.  They would have preferred knowing that if you lost your job or had to deal with a serious illness, they would feel loved knowing they had a home and you.

Setting boundaries on our spending habits is one way to love our families.  Other ways are ensuring we have put in place the security of insurance, contributing regularly to an emergency savings account, and paying down our debt to free up cash to save for our retirement years.

You might not fully appreciate hearing from a financial advisor “what is important in life”.  However, you may appreciate hearing from someone young with her whole life in front of her who didn’t have the chance to grow old and wrinkled. A heart-breaking news story comes from a letter written by Holly Butcher. Holly passed away at the age of 27 from cancer.  Before she died, she shared her thoughts about the true meaning in life. Click here to read Holly’s story.

Here’s the challenge. I believe you can write your own story.  You can learn from others as well as Abraham Maslow about your basic needs.  Life teaches us lessons.  What have you appreciated learning from others and your own experiences? You may share your news.