Do You Read?

When we always do what we have always done, it’s because we didn’t know there is a better way.  Reading and applying new techniques are encouraging ways to improve our lives.  When you are learning how to manage money, there is so much to know.  Financial literacy programs encourage people to take control of their money.  Numerous books have been written on the subject. Whether it is basic money management or complex investing skills you want to learn, this new-found knowledge can change your life.

"When you give someone a book, you don't give him just paper, ink, and glue. You give him the possibility of a whole new life." – Christopher Morley.

I wasn’t always a reader. Picking up a book to read was not my idea of a fun time. The only books I read then were text books. This happened to be a requirement to pass the classes.  Then something profound happened.  I uncovered a love for learning. My perception changed and so did my behavior.  I became eager to see what authors were saying and what I could possibly learn from them.  Books suddenly became valuable assets.  I remember the first finance book I read, Success! The Glenn Bland Method.  This book has sold 600,000 copies since it was published in 1975.  Many books like it contain a wealth of information, knowledge, and wisdom intended to improve our lives.  If you are not a reader, I encourage you to become one.

Books breathe inspiration, motivate you, and encourage you to take action. 

• In Gail Vaz-Oxlade’s book, Debt Free Forever, she doesn’t mince words.  “You want your budget to be so tight it squeaks.”   

• In Smart Couples Finish Rich, David Bach helps you determine the true purpose of money in your life.

• Suze Orman’s book, The 9 Steps to Financial Freedom, uncovers fears you may unknowingly have about money. 

There are valid reasons for seeking wisdom from these experts. You e-x-p-a-n-d your knowledge in areas where you may feel intimidated.  Your new-found wisdom will build confidence within you so the possibility of a whole new life becomes a reality. For example:  Gail Vaz-Oxlade says in order to have a balanced budget, you need to implement savings in addition to paying down debt.  This well-known money authority teaches an action step you may not have understood or implemented.   

Occasionally people find their financial circumstances embarrassing so they are reluctant to speak to anyone about their financial problems.  Suze Orman writes, “In our culture it’s okay to talk about therapy we’ve gone through, marital problems we’ve had, our deepest intimate secrets – but telling the truth about money, confessing our worries to our children, our parents, our friends, just isn’t done.  Money is our secret both in private and in public.”   If you happen to be in this type of situation, seeking solutions from financial planning books may be the first step to addressing your money problems until you feel comfortable talking with a financial planner.  Another advantage of having advice in writing is you can repeatedly review the information.  It’s like following a recipe. You can review what the author said multiple times until it makes sense to you.       

Finding better ways to manage your finances can only mean one thing – “More Money For You!”    More money leads to new opportunities. You can improve the life of your family and just as important, you can improve the lives of others with your donations to worthy causes. If you are looking for even the slightest insight to money management, think about picking up a book on the subject.  Start with small baby steps. Find fifteen minutes in a day to read.  Small progress is better than no progress. Earl Nightingale said, “If a person will spend one hour a day on the same subject for five years, that person will be an expert on that subject.”

 

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.

Ho! Ho! Ho! Are You Ready For Christmas

Every year Christmas comes as a financial shock (and burden) to many who are unprepared for the annual holiday even though everyone knows it is coming.  Judging by the calendar today, it soon will be here. Christmas should not catch us off guard. Here are some C-H-R-I-S-T-M-A-S tips to prepare you.

 

C H R I S T M A S

C – Create a Christmas list and budget early (now is a good time but preferably January).  Write the name of each person and set a price limit.  Tally up the total and revise the list if the budget is significantly high.  Discuss Christmas gifting with family members and friends.  Set protocol in regards to price limits, the concept of exchanging names, and conditions such as buying only for children and excluding adults.

H – Hunt for an appropriate gift for each person on your list. Once you know what you are buying, scout for the items all year around.  Ensure you are checking your list more than twice.  Keep your eyes open when you go on your regular shopping excursions.

R - Routinely “stash away cash” from each pay cheque to save for your Christmas expenditures.  Setting up automatic transfers to a separate “Christmas Savings” account is a sure way of preventing you from accessing the funds. To calculate the amount of your PAC (Pre-authorized Contribution), divide the amount of your budget by the number of pay cheques in a year.   By saving, you will not rely on credit cards and pay the high interest charges when the credit card balance is not paid in full. 

I - Investigate, investigate, investigate.  Treat Christmas shopping like a scavenger hunt.  Look for the best price (prices) in sales flyers, on-line, and in stores. Chat with family and friends about the items they own and places to shop.  Compare brands, features, warranties, and service. Consider everything which will secure a pleasing purchase. 

S – Stay smart about spending.  Ask yourself, “Will the recipient of this gift love me more if I spend more; and (or) less if I spend less?”  Seriously, if love and appreciation is determined by the cost of the gift, you need to re-evaluate your motives (or theirs).

T – Train yourself to say, “No!”  Do not allow yourself to give in to compulsive shopping.  Regardless of how cute something is; no matter how much Johnny would love a new toy; or “Gee, we only have one grandchild; let’s spoil her”, the answer should still be, “No!”  You are not Scrooge; you are Frugal.  There is a difference.  

M – Make Christmas fun by keeping it simple and sweet.  Keep the joy of Christmas and the intent of giving in proper context.  One gift or ten gifts ~~ maybe, just maybe, one gift would suffice and the other gift could be a contribution to your children’s education savings plan.  

A – Assess, assess, assess! People who are known to start Christmas shopping early in the year are also known to spend more than they intend. They simply forgot what they bought.  Is this you? Keep track of your purchases.  Another misconception is every child should receive gifts of equal monetary value.  No one except you will know how much you spent on a gift for one child as opposed to another.  Don’t make up the difference by buying more presents to ensure the purchases are equal.  You can’t compete with that logic.     

S – Stick to your Christmas Budget.  In the end you will be glad you did, for the simple reason that you will be stress-free.   Always remember: once this Christmas passes, you should start preparing for the next. 

From the tips above, you may take what you need and leave the rest.  If you do a great job, you may have enough money to buy yourself a Christmas present.  Nevertheless, enjoy the holidays with family and friends.  For this is the true gift of Christmas.  

Are You Prepared for Any Emergency?

Is saving the same as investing? It can be yet it depends on your intent.  Do you plan to spend this money in the next year or in retirement? Both actions appear the same. You tuck money away for a future event but what if something happens unexpectedly?  These unexpected and unwanted events are emergencies. The question is, “Are you prepared for them?

 

The Importance of Emergency Savings

By not having emergency savings, you are forced to rely on credit. When you borrow money to cover unexpected expenses, the loan has to be paid back. At times, it may be necessary to borrow. However, if you don’t qualify for credit, then you’re stuck.  This is not a “happy place” where anyone wants to be.  Another downside is even if you qualify for the loan, the interest rate may be ridiculously high.  Add interest to the cost of your unexpected event and the expense can be enormous.  Using credit as your initial back-up plan only works until you build up your emergency savings.

The Amount Needed for Emergency Savings

Generally, the minimum amount is three months of your monthly living expenses. However, a better safeguard is six months.  I often hear, “It’s a shame to let the money just sit there” yet it isn’t sitting there. The money is waiting for that emergency.

• The fridge crashes; now you need to shop for a new one.
• The encounter with the deer on highway left you stranded without a vehicle.
• The fall off the ladder created additional medical-related expenses.

The above emergencies appear minor in comparison to other tragedies.

• Being laid off from your job.
• An illness in the family which forces you or your spouse to take a leave of absence from work.
• An unexpected death in the family.

If you’ve never had an emergency, then you may know friends and family who had one. What have you learned from their episode? Were they scrambling to borrow money to cover their needs? Were they unable to get credit and forced to rely on extended family for financial help?

 

With so many reasons to save, start by determining your pots of gold.  Multiple pots are required because you have multiple intentions:  emergency savings, planned spending, yearly expenses (i.e. Christmas, insurance, property taxes); and then the elusive future savings for children’s education and retirement.  Our focus now is strictly on emergency savings. 

 

 

Two Methods to Save

1. If you are a disciplined saver, your emergency savings can be mingled with savings for other purposes in one account.  For example, once you establish the first $5,000, this amount is ear-marked as emergency savings.    Any savings above this is for other goals. Once you establish your threshold, the plan is to never spend any of this emergency amount for any other purpose than an emergency.

 

2. If you are a saver who likes separate accounts, money can kept in a daily savings account labeled as “Emergency Savings”.  The power is in the name. Before you tap into the account, ask yourself, “Is this truly an emergency?” 

  

Best Type of Accounts for Emergency Savings

You can keep your “emergency savings” in a daily savings account held either in a Tax Free Savings Account (TFSA) or an open (non-registered) daily interest-bearing account. Understanding the different types of investment accounts is important when you match them with your goals and time horizon. {This topic will be discussed at another time.}

It’s important to understand the value of your savings should not fluctuate.  When you save a dollar in this account, you want access to this dollar a week, a month or a year from now.  Wouldn’t it wonderful if the value could double? However, since the timing of your emergency is unknown, the plan is to stick with the safe and sure path. The “tiny-bit” of interest earned in a daily savings account or money market fund is reassurance your money will be there when you need it.  Explain to your investment advisor that your principal investment needs to be protected in case of an emergency. “Nothing fancy, please!”

How to Save

To build your emergency savings, you must first determine how much you need to save.  Start by adding your monthly expenses (everything) and then multiply this amount by six to ensure you cover six months’ worth of expenses. Begin tucking money away. Use every method possible to build your emergency savings.

• Set-up automatic transfers for a specific amount to coincide weekly, bi-weekly, or monthly with your pay periods.
• Transfer excess earnings above your regular pay from bonuses or over-time.
• Deposit money earned from different money-earning activities. For example, playing in a band, cutting grass, and writing free-lance articles.
• Save the money reimbursed for medical expenses covered by your health care.
• Save the money reimbursed for employment-related expenses, for example, mileage.  
• Deposit your tax refund in your emergency savings.

Acceptable to Start Again  
 
Give yourself permission to start over if you slip-up. Forgive yourself. We learn from our mistakes.  Tell yourself,

“The next time I will do better.” 

 “The next time I will stop myself.”

“The next time I will walk away.” 

You are striving to create security for your family and you. Once you catch the fever of savings, you will experience empowerment. Then regardless of the emergency, you will be prepared for it.  

Don't Wait - Just Start!

What things are you putting off that need your attention?  I am talking about the things you may procrastinate about that shouldn't wait.  You may be telling yourself, “I’ll get it done when I have more time, more money, or when I get that new job”.  But are we being honest with ourselves? What’s stopping us from attending to the things we should?

Napoleon Hill, renowned author of the book, Think and Grow Rich, said, “Do not wait; the time will never be ‘just right.’ Start where you stand and work with whatever tools you may have at your command and better tools will be found as you go along.” Now this may seem a little strange.  Last week, I told you to “wait for it”; and now this week, I’m telling you the exact opposite. 

Don’t wait – don’t procrastinate. Just start.  I’m talking about things that cause anxiety, fear, and insecurity to build. When it comes to money matters, everyone’s priority is different. You may have good intentions to start saving for your children’s education, your retirement, or to pay down debt yet you never do.

I feel part of my role as a financial planner is to motivate you to take action.  I will do what it takes to inspire, educate, and provide resources to help you.  The only thing I can’t do is MAKE you do something you don’t want to do.  But I will do what I can to help you understand “why” action is important. Are you ready? 

Start by listening to what Brian Tracy, author of the book, Eat That Frog, has to say about “Procrastination.”  When this video was shared with clients, they immediately recognized the important things they had put off.  Their wills haven’t been updated; their insurance coverage was inadequate; and they didn’t have any savings for emergencies.   

 

Take control. Simply take the next “right” step for you. What are all the things you haven’t done that need your attention?  Click here for a list of ten financial items every Canadian should have. Review the list, prioritize the items which need your attention and set deadlines when you expect to complete each task.  One day you will be glad you did.

Wait For "It"

Capturing the perfect image of the ocean splashing onto the rocks requires patience.  When you wait, you get the perfect snapshot.  This scene sends an important message: “Wait for It.”  Wait for the things you want in life.    The blood, sweat and sacrifices (and of course, discipline) you pour into savings will pay off because you’ll have a greater appreciation for the things you purchase. 

BUT do we? Do we “wait for it"? Most times the answer is “No!” We’re bombarded with marketing ads.  The advertisement tells us, “Why wait when you can have it now?  The advertisement tells us,  “It’s easy! With these low monthly payments, it’s yours.”  The advertisement also tells us, “There are only a couple items left in stock and then they’re gone.” The pressure is on to buy. And we buy.  In the end, do we actually own it or do we owe money for it?

Most times I see people fall victim to the easy purchase plan (myself included.)  If we are not able to pay the debt in full, the payments seem to go on and on forever.  Having payments restricts our ability to do anything.  If you have ever felt like a prisoner, this is probably the time.  It’s easy to get into a cycle.  When our debt payments escalate, income is restricted for day-to-day lifestyle expenses, forcing us to buy essential items, like groceries, on credit.  Debt begets more debt.

Living in a world which provides easy access to credit and promotes instant gratification comes with a cost.  The cost is the interest you pay over time for the purchase.   

Recognize that some things are worth the wait. When you focus on your goals and dreams, you avoid the temptation of buying things on impulse. You may be able to relate to two experiences you’ve had in the past.  One, when you saved for something you really wanted.  The second, when you bought an item using credit obligating you to make payments.  Which did you prefer?

If you have the ability to make loan payments, wouldn’t it be just as easy to start saving for the item in advance?  Rather than pay "interest", you can actually earn “interest” while you wait. One easy way to save for what you want is to hide the money.  {Well, not exactly!}  We know we can be our own worst enemy; so to avoid temptation, the best solution is to set up automatic transfers to an account (like a mutual fund) which puts your savings out of reach. This prevents dipping into your “pot of gold” until the time is right.  

In the end, when you wait for it, you get what you want and more: freedom to move onto your next purchase, peace of mind knowing you have no payments, and a sense of accomplishment knowing you worked hard to save for the things you wanted without incurring debt. 

No one says, “Wait for it” is easy; but the one sure thing is, “It’s worth the wait”.         

Protect Your Score

Have you watched your favorite football team take a commanding lead in a game, ensured a win because their score was twice that of their opponent? Then the drama begins. Suddenly this fabulous score doesn’t look as great because they are being outplayed.  They may have slacked-off; took a few penalties or dropped the ball because they misunderstood the play. In the end they didn’t play defensively.

What about you? We take part in a game where we must protect our score.  Every time we borrow money or require a service {cell phone, rent an apartment), someone checks your credit score to ensure you are creditworthy.  Quite often people do not understand they are graded on their performance. Credit reporting agencies, like Equifax or TransUnion, are keeping tabs on “your stats” to determine how well you manage credit.  The better manager you are of your debt the higher your “Credit Score”; the poorer you are at managing your debt, the lower your score.  The good news is you can defensively put into action strategies to either protect or improve your score.  

Five Ways to Create the Winning Play with Your Credit

1.  Make your monthly payments on time. Knowing the due dates of your debt obligations in advance ensures you have set money aside for monthly payments.  Being consistently late with your payments will appear on your credit and lower your score.

2.  Pay the minimum payment even if you are unable to pay the entire balance on your credit card.  Even if the minimum payment appears insignificant (i.e. $10), ensure you pay at the very least this minimum amount.  If you don't, you are sending a message to the world you can't make a larger payment either ($310, $510). Many people opt to miss the small payment and vow to pay double the amount the following month.  This strategy ends up hurting their score. 
 

3.  Limit the number of credit inquiries others conduct on your credit report.  (i.e. credit cards company, car dealerships, financial institutions).  Most people do not understand that an excessive number of credit inquiries “take hits” against their “Credit Score.”

4.  Stay within your credit limit. Credit card companies are notorious for allowing you to exceed your credit limit especially when you diligently make regular payments.  You may trigger a penalty which results in a transaction fee; but what’s worst--your credit score also drops.

5.  Resolve unsettled disputes. By taking a stand and refusing to pay for an unsatisfactory service or product, you may find this unpaid bill appear on your credit report.  The best you can do is to reach a compromise to ensure the unpaid bill doesn’t jeopardize your credit report.

Now that you are informed about ways to protect your score, Financial Consumer Agency of Canada has a short five-question quiz to test your knowledge. If you are interested in taking the quiz, click here. 

THE CHALLENGE:

•  if you don’t know your score, apply for your credit report. 
• if you don’t like what you see, put into effect winning plays to improve your score.
• if you like what you see, continue to protect the score.

Are Negative Thoughts about Money Holding You Back?



Henry Ford is often quoted for saying, “Whether you think you can or you think you can’t - - you’re right.”  Nothing can be more powerful or debilitating than how you think. 

I lived with thoughts like “There’s never enough money.”  Then the teaching of positive affirmations changed my thinking into believing there always is enough money.  Kitchen renovations to our small farm home, mini-vacations and the purchase of a newer vehicle were some of things I wanted. Its renowned authors like, T. Harv Eker, (Secrets of the Millionaire Mind), Rhonda Bryne, (The Secret); and Brian Tracy (Achieve Any Goal), to name a few, who turned people around with their wisdom on “you are what you think.”  It’s that simple.  So if you want to have an abundant and fulfilling life, then think that.  The critical ingredients required to get what you really want starts with a wish which turns into a desire mixed with intention and passion.  This lesson from Dr. Wayne Dyer should be well received by negative thinkers who are looking to change their present beliefs.  

If we constantly catch ourselves saying, “I don’t have enough money. I am always broke.  I hate money,” these negative images become our reality. Do we really want this?  Of course not! Let’s see if we can change this by applying three basic ground rules we learned as children to change our attitude about money. 

 

1. “Stop, look and listen!” Pay attention to how you talk daily about money.  When you see something you like, do you say, “I can’t afford that?”  When your children ask to buy something, do you say, “I don’t have enough money?”  When your friends take a winter vacation, do you say, “That’s nice but we can’t afford to do that?” 

2. “If you don’t have anything good to say then don’t say anything at all,” applies the same to “thinking”.  If you don’t have any good thoughts about money then don’t think at all.  Change any negative talk into positive; and if you can’t, remain quiet. Complaining about not having enough money does not solve anything.  You are better to think about all the things you would do if you had money.  Retrain your thinking and create a wish list.   

3. “Mind your own business.”  When others start ranting about money woes, don’t participate and share yours. The polite thing to do is caution them and share your new-found wisdom, “you are what you think.”

    

How do you stop yourself from having these negative thoughts about money? Have you ever said, “The next time I do something stupid, slap me?”  If no one is around to honor your request when you have negative thoughts, try this.  Put an elastic band around your wrist. When you catch yourself saying anything negative about money, pull the elastic band away from your wrist and release it.  Smack! It’s guaranteed to make you think about what you say.  AND if you think a little slap from an elastic band hurts your wrist, imagine how much your negative thoughts about money hurt you financially.

When I ask, “How do you think about money?” I sincerely want to know. The phrase, “a penny for your thoughts” leads us to conclude that good thoughts have positive results.  Being rewarded for positive thinking creates incentive and makes you wealthy in more ways than you realize.

Why Do I Need a Budget?

When most people hear the word, “Budget”, moans and groans generally follow. WHY IS THAT? For starters, staying on track can be difficult while life events derail your best intentions.  Secondly, having a budget sounds so restrictive that people feel BOXED into a corner.  BUT really a budget is intended to keep you and your money on track.  Most people are fooled into believing a budget is a one-size fits all. NOT TRUE.  Your budget has to be tailored for your family needs.

 The way to get started is to quit talking and begin doing.  ~~Walt Disney

If you procrastinate in creating a budget, the road ends here. Enough talk and a little more action.  GUESS what?  It is not difficult if you have some sound guidance.  It’s as easy as 1-2-3.

1. LOOK at your month-to-month expenditures.  FIRSTLY, they can be easily labeled as:  Shelter, Basic, Discretionary, and Transportation. Placed into one category, these are your LIFESTYLE NEEDS.  The very things you spend your money on day-to-day.  SECONDLY, you may have a loan, credit cards and mortgage payments.  These totals formulate your DEBT.  LASTLY, you have your SAVINGS.  Your list may include long term savings for retirement, education, vehicle replacement, vacations and short term savings for annual expenditures (property insurance and taxes), emergencies, appliances and furniture.

2. FOCUS on only the three categories.  Together as a couple (or single) can be involved in the next important step, determining the percentage allocated to each of the three categories: Lifestyle Needs; Debt Repayment; and Savings.  Initially, prepare to divide your combined net income(s) -- your take-home pay/after-tax income (whatever you call it).  Work with 10 dimes to represent 100% of your income. Each dime represents 10%. YES, this appears elementary but it works! It’s an easy way to determine the percentage to each category by physically shifting dimes with 10% increments, for example: 60% Lifestyle Needs; 20% Debt Repayment and 20% Savings.  Because you have an estimate of your monthly expenses you have a fair understanding of your allocations.  However, the challenge is whether you can reduce our lifestyle needs (primarily in discretionary spending) by 10% in order to allocate this percentage to Savings (i.e. family vacation)? Perhaps your focus is to reduce debt, is it possible to shift 10% from Lifestyle Needs to Debt Repayment?  Regardless the amount assigned to each category is tailored to fit your needs. 

3.  STRUCTURE your bank accounts to align with your specific categories.  This is your budget in its simplest form.   

The following illustration shows all deposits from your income (employment, sales commission, pension, CPP/OAS) directed to an account, designated as the Collection Account. (This can be either a chequing or saving account depending on the service charge package offered.) From the Collection Account, a specific transfer is created to cover your monthly lifestyle needs.  You are restricted from touching any extra cash designated for debt repayment and savings.  In essence, you are giving yourself an allowance, a similar process given to children. This method offers protection from you. (In some situations, you are your own worst enemy. Having too much money in a chequing account can be dangerous.)  Therefore, you can only spend the amount you give yourself in your designated LIFESTYLE NEEDS account.  Because you can check the balance of your account regularly, you always know “when you get close to being busted.”

Your loan, credit cards and mortgage payments are made directly from your Collection Account (the account where your incomes are pooled). Likewise the same process is followed with your savings.  All you need to do is ensure you stick to the allocations assigned to each of the categories.

At the beginning of this process the percentage designated to your debt repayment may be significantly higher; but as you pay off debt, the shift can be made to increase savings. If you receive pay increases, the percentages will increase accordingly to your net income.

The trick to saving is easy {out of sight-out of mind}.  Do not allow yourself a savings account you can access easily UNLESS you are extremely disciplined… or if the account is specifically earmarked as Emergency Savings.  Only you know for certain what an emergency is.  NO EXCUSES.  Otherwise, set the transfer to a mutual fund (for short and long term savings).  You can visually see the balances on-line; but you would physically have to visit your investment advisor to make a withdrawal.  The harder the access, the less the temptation.  As you watch your savings grow, imagine paying for the vacation or new vehicle with this money.   Putting your life on automatic is SO EASY with pre-authorized transfers straight from your Collection Account to designated investments (RRSP, TFSA, RESP, Non-Registered Savings) for specific purposes.  You can equate this to making loan payments to the person who deserves to be paid the most – YOU! 

ROOM for modification is a must.  Remember the tag line: one size doesn’t fit all.  

• If joint accounts don’t work for you; then the set-up can be modified so you share at the very least the lifestyle expenses as a percentage of your incomes. 
• If you work together well as a couple, then one spouse’s income could be designated solely for lifestyle needs; while other pays down debt and contributes to the savings.
• If you like, set up a “Crazy Money” allowance.  This amount is your permission to blow anyway you choose:  “Beer with the boys.  Rendezvous with the girls at a spa.” You decide – you don’t have to report to your partner where the money went all you need to do is stay with your limit. Happy Husband; Happy Wife makes for a Happy Life.

HERE COMES THE CHALLENGE AND REWARD: You may have a budget and are proud because you have taken this important step. If you struggle with making this work, you can always seek help from your financial planner.  This is one of many ways a financial planner can help. The end result is if you spend wisely, pay debt diligently and save faithfully, you can have everything you really want.           

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!