Personal Finance for Women: A Strategic Wealth Guide is the opening voice of The Empowered Wallet.

This series is created for women who want to build financial confidence, strategic independence, and long-term wealth clarity.

The Empowered Wallet is not about encouraging risky financial behavior or promoting wealth for status alone. It is about helping women like you think intelligently about money as a tool for building stability, opportunity, and legacy.

Future articles in this series will explore personal finance for women through several important lenses.

You will find practical guidance on investing, income strategy, financial protection, and modern economic tools shaping women’s financial lives.

Some of the themes that will be discussed include:

• Personal finance foundations for women

• Investing concepts explained simply

• Income growth and negotiation strategies

• Financial decision-making and technology

• Marriage, family, and money conversations

• Faith and financial stewardship

• Retirement planning for Canadian and American women

• Women and the changing economic landscape

The goal of The Empowered Wallet is to help women move from financial uncertainty to financial clarity. You do not need to be perfect to build wealth just start with intention, patience, and consistent learning.

Every article in this series is written to support women who are balancing professional responsibilities, family life, personal growth, and long-term financial planning.

The Empowered Wallet is about helping women lead their financial lives with wisdom, courage, and dignity.

Personal Finance for Women: A Strategic Wealth Guide

Money is not just a practical tool. It is a reflection of the life you are trying to build. Personal finance for women today is about more than saving or budgeting. It is about learning how to think strategically about your financial future.

Across Canada and the United States, more women are stepping into greater financial responsibility. More women are leading households, starting businesses, and managing long-term investments than ever before. Yet many still feel uncertain when conversations turn toward investing, retirement planning, or long-term wealth strategy.

The truth is that financial confidence does not come from knowing everything. It comes from understanding the next right step. You do not need to be a Wall Street expert or a tax specialist. You simply need clarity about where you are, where you want to go, and how your money can help you get there.

Why Personal Finance for Women Matters

Women often experience financial life differently. Many women live longer on average, which means retirement planning must stretch further. Some women pause careers for caregiving responsibilities. Others are balancing professional development with family commitments or entrepreneurial ambitions.

Because of these realities, personal finance for women must include more than day-to-day expense management. It requires thinking about income growth, protection strategies, tax efficiency, and long-term wealth creation.

In North America, women have access to powerful financial tools such as tax-advantaged accounts. In Canada, this may include a Tax-Free Savings Account or Registered Retirement Savings Plan. In the United States, many women use retirement vehicles such as Roth IRAs or employer-sponsored 401(k) plans.

The details may differ depending on where you live. However the objective remains the same. I want you to build financial security with intention.

The Women and Wealth Reality Gap

All research shows that despite educational and professional progress, a wealth gap still exists between women and men across North America. Women today are earning more than in previous generations, but income alone does not always translate into accumulated wealth. There are several social and economic factors that contribute to this gap.

Women are more likely to experience career interruptions related to caregiving. Women tend to live longer, which requires extended retirement planning horizons. And historically, many women have had less access to advanced investment education or financial leadership environments.

The reality is not about ability. It is about structure, opportunity, and confidence. Closing the wealth gap does not require women to adopt aggressive or high-risk financial behavior. Instead, it requires intentional participation in wealth-building systems already available.

Understanding basic investment principles, using tax-advantaged accounts in Canada and the United States, and contributing consistently over the long term can gradually reduce this gap. The strategic woman does not chase wealth impulsively. She builds it patiently and intelligently.

Learning to Invest With Confidence

Investing can feel intimidating at first, especially when financial language begins to sound like a field you were never formally taught. But investing does not require perfection. It requires consistency.

Many financially strategic women focus on long-term growth rather than attempting to predict short-term market movements. Simple approaches such as diversified index funds or exchange-traded funds have helped many women build wealth steadily over time.

Think of investing as planting a garden rather than chasing a storm. Small, regular contributions can grow quietly but powerfully through the effect of compounding.

Growing Your Income Intentionally

While saving money is important, increasing your earning capacity often has the greatest impact on financial freedom. Sometimes this means negotiating your salary. Sometimes it means learning a new professional skill. For others, it may mean exploring additional income streams or pursuing advancement into leadership roles.

Even a modest increase in income, invested consistently over many years, can significantly influence long-term financial outcomes. Personal finance for women must always include a conversation about earning potential, not only spending control.

Using Technology Wisely

We live in a world where technology can simplify financial decision-making. Digital tools can help you track spending, monitor investments, and compare financial products. Artificial intelligence is also beginning to assist people in analyzing financial patterns and planning future scenarios.

The strategic woman uses technology as a support system rather than allowing it to make financial decisions for her.

Protection Is Part of Wealth

Building wealth is not only about growth. It is also about protection. Every woman should consider maintaining an emergency fund, reviewing insurance coverage, and keeping legal and estate documents updated. Estate planning is especially important because financial and inheritance regulations differ across Canadian provinces and U.S. states.

Financial strength is not about living in fear. It is about preparing responsibly for life’s uncertainties.

Wealth Without Guilt

Many women quietly struggle with the idea of pursuing wealth. Sometimes there is an emotional tension between cultural expectations and personal financial ambition. But wealth, when stewarded wisely, can support family stability, education, charitable giving, and generational opportunity.

The goal is not wealth for status alone. The goal is financial freedom and meaningful contribution.

Starting Your Strategic Financial Journey

You do not need a perfect financial plan before you begin. Start by understanding your current financial position. Review your income, expenses, savings, and investments. If you feel uncertain, consider speaking with a qualified financial professional who understands your regional context. Treat your personal finances with the same seriousness you would give an important professional responsibility.

Small, consistent actions over time often produce the strongest financial outcomes.

Final Reflection

Personal finance for women is not about pressure or perfection. It is about learning how money can serve the life you are trying to build. You do not need to have everything figured out today. Clarity grows with action. Confidence grows with knowledge. And wealth grows with patience and discipline. The first step is simply deciding that your financial future matters.

The empowered wallet begins with a woman who decides her financial future matters.

The post Personal Finance for Women: A Strategic Wealth Guide appeared first on Four Columns of a Balanced Life.

Ebenezer Scrooge was a stingy miser and not frugal. I worked for 18 years for Ebenezer Scrooge. Ebenezer has a reputation for being the most miserly person in town. He never gave to charity, his clothes were tattered, and his home was a dilapidated cottage because he refused to spend a single coin on repairs. Ebenezer loved to day trade and would lose thousands of dollars a day on trading, but did not want to share the wealth.

Ebenezer lost his wife and he came to work after the funeral. Ebenezer’s heart remained unchanged. He continued to hoard his wealth, living in the same shabby cottage and wearing the same tattered clothes. He had gained notoriety, but he had not gained any real happiness.

Ebenezer worked till he was in his late 80’s. He never traveled.  Ebenezer grew old and frail. No family or children. No legacy.

I wish Ebenezer smelled the roses. The roses represent the joy that can be found in embracing life’s challenges, stepping out of your comfort zone, and in sharing your experiences with others. Ebenezer never realized the true cost of his stinginess and the richness of the experiences he had missed out on.

The difference between being stingy and being frugal

There are different undertones, implications, and connotations to being stingy and being frugal. They both relate to the people manage their resources and money and how they react to it. The main difference between being frugal and being stingy lies in the attitude and motivation behind one’s financial decisions.

Frugal

Being frugal means being mindful and careful about spending money and resources. Frugal individuals are intentional and make deliberate choices to save money by avoiding unnecessary expenses, finding deals, and making the most of what they have.  Frugal individuals prioritize value and are often focused on long-term financial goals. Frugality is about living within your means, being inventive, and making cautious decisions about where and how to spend your money.

Stingy

Stinginess, on the other hand, has a more negative connotation.

A stingy person is typically someone who is overly cautious or reluctant to spend money or resources, even when it might be appropriate or necessary. This behavior is often driven by a desire to save and accumulate wealth, sometimes at the expense of relationships, experiences, or personal well-being. They are often unwilling to spend money on even basic necessities and may go to great lengths to avoid parting with their funds. Stingy people might be hesitant to share their possessions, whether it’s lending items to friends or family, contributing to group expenses, or giving to charity. They may delay or avoid making purchases, even for items that would significantly improve their quality of life. Stingy individuals often engage in intense negotiations or haggling to get the lowest possible price. Stingy people might find reasons to avoid social gatherings that involve spending money, such as going out to eat, attending parties, or participating in activities that require a financial contribution. This hoarding behavior can extend to money, material goods, or even knowledge. Stingy people often prioritize saving money over enjoying life experiences.

qualities often associated with a frugal person

Resourcefulness

Frugal individuals are adept at finding creative solutions to problems. They can repurpose items, find alternative ways to achieve their goals and make the most of what they have.

Budget-Conscious

Frugal people are mindful of their spending and typically create and stick to budgets. They prioritize their expenses, focusing on necessities while limiting spending on non-essential items.

Prioritization

They understand the difference between needs and wants. Frugal individuals prioritize spending on essentials like housing, food, healthcare, and education while being cautious with discretionary spending.

Savings Mindset

Frugality often goes hand-in-hand with a strong savings habit. Frugal people are diligent about saving a portion of their income for future goals, emergencies, and investments.

Minimalism

Frugal individuals tend to value experiences and relationships over material possessions. They may embrace a minimalist lifestyle, owning only what they truly need and avoiding excessive consumerism.

Comparison Shopping

Frugal people are known for researching prices and comparing options before making purchases. They seek the best value for their money and are willing to invest time in finding deals.

DIY Attitude

Frugality often involves a willingness to do things yourself. This could range from cooking at home instead of dining out to tackling basic home repairs without immediately calling a professional.

Avoiding Debt

Frugal individuals are cautious about accumulating unnecessary debt. They aim to live within their means and avoid high-interest loans or credit card debt.

Long-Term Thinking

Frugal people are often future-oriented. They consider the long-term consequences of their financial decisions and are willing to make short-term sacrifices for greater financial security down the road.

Environmental Awareness

Many frugal individuals are environmentally conscious. They reduce waste, recycle, and minimize their carbon footprint by adopting practices like reusing items and reducing energy consumption.

Contentment

Frugal people often find contentment in simple pleasures and experiences rather than constantly seeking material possessions. This mindset contributes to their overall well-being and happiness.

Mindful Spending

They make intentional choices about where they allocate their resources. Frugal individuals are less likely to engage in impulse buying and more likely to think through purchases before making them.

Embracing frugality can empower you as a person

Frugality helps you build financial independence and stability by saving money, reducing debt, and increasing your overall financial security. This independence can free you from financial stress and the need to rely on others for support.

Being frugal enables you to allocate resources toward your goals and dreams, such as buying a home, starting a business, or traveling the world. You have the financial means to pursue your passions and aspirations.

Living within your means and having a financial safety net can significantly reduce stress and anxiety related to money. You’re less likely to worry about unexpected expenses or financial emergencies.

Practicing frugality requires self-discipline and mindful spending. This discipline can spill over into other areas of your life, helping you make better choices and maintain a healthy work-life balance.

By spending less on non-essential items, you have more freedom and flexibility in how you allocate your resources. This can mean more time for family, hobbies, or pursuing opportunities that align with your values.

Frugality often encourages sustainable and eco-friendly practices, such as reducing waste, conserving resources, and choosing products with a longer lifespan. This can contribute to a healthier planet and a sense of empowerment in making environmentally conscious choices.

Frugality can be closely associated with minimalism, which focuses on decluttering your life, simplifying possessions, and prioritizing experiences over material possessions. This minimalist approach can lead to a greater sense of contentment and focus on what truly matters to you.

Being frugal encourages resourcefulness and creativity in finding cost-effective solutions to everyday challenges. This problem-solving mindset can extend to other areas of your life and enhance your problem-solving skills.

Frugality helps you develop resilience in the face of economic downturns or unexpected financial setbacks. Having a frugal mindset means you’re better prepared to weather financial storms and adapt to changing circumstances.

When you have financial stability through frugality, you may be in a better position to help others in need. Whether through charitable donations or lending a helping hand to friends and family, you can make a positive impact on your community and society as a whole.

Frugality empowers you as a person by providing financial security, reducing stress, promoting self-discipline, and allowing you to allocate resources toward your goals and values. It can lead to a more intentional and fulfilling life, emphasizing what truly matters to you while also fostering financial responsibility and resilience.

The post Become empowered by being frugal appeared first on Four Columns of a Balanced Life.

Introduction

The surge and rise in prices of goods and services in an economy are called inflation. The increment in price results in your currency buying fewer goods and services resulting in the decreasing purchasing power of your money.

As I am revising this article, the inflation rate in Canada and the U.S. is around 8% the highest in four decades.

I am going to write about what I have been doing to save money during this inflationary period.

I have spent more than 25 years in the financial services industry. I have lent money, managed money, traded money, and seen two recessions, the tech crash in 2000, 9/11, 2008, and now 2022. The COVID-19 crisis was an outlier or a Black Swan. The challenge with the COVID-19 crisis is that we had to quarantine ourselves, as countries around the world had been hit by a pandemic that was merciless, carcinogenic, and catholic. The knife was in the stomach, turned around and salt is being rubbed in the form of a shortage of many goods, disruption in supply chains, hoarding, and inflation.

I would strongly recommend that you create a budget and stick with it. Inflation kills your budget.

The future is uncertain and the times are scary. However, we will overcome it.

One question on your mind is whether you will come out ahead financially at the end of this. Here is what I am doing to deal with inflation and save money.

Save on Car Insurance

It is easy to save if you own two cars. Debbie has a short drive to work. I am working from home. We will be driving the car once a week to get groceries. This month, I called the insurance agent and took one car off the insurance. Total savings is $125.

Save on Cell phone, cable, internet

As a loyal customer with a provider, you have to negotiate and it can save you money. I called my provider and negotiated better rates for the cell and internet. I switched to IPTV where I get 5,000 channels and only pay $15 a month. Total savings is $50.

Hair color for Debbie

Debbie used to go to a salon for coloring her hair. I learned how to color her hair. Total savings  $125.

Cutting grass

I have a huge lot and for the last couple of years had a professional company cut my grass three times a month. I am going to cut the grass this year. Total savings $100.

Save by Working from home

I requested to work from home. It saves me two hours a day stuck in traffic. I am saving $160 in gas and $50 in parking. Total savings $210.

Cooking at home

I am cooking all my meals at home. I used to eat out pretty often. No need for Uber Eats or Door Dash. Total savings $150.

Cut the non-essentials

Inflation could last for a while. No one knows if another wave of COVID-10 will come. So, the more money you save, it can sustain you.

Refinance, consolidate and lower your rates

If you have many loans, lines of credit, and credit cards, I recommend you refinance your mortgage and consolidate. This way you will have only one payment. Call your banker and lower your interest rate. I recommend Ashish Lala. He is the best in the business.  Continue to invest in conservative stocks that will give you a dividend and ask for a raise.

I hope some of these tips will help you to save money during these inflationary times.

Photo Credits: Tonik  Richard Burlton Andraz Lazic Andre Gaulin Diogo Brandao Max Ilienerwise Becca Tapert Anastase Maragos Sharon McCutcheon

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Do you want to save money? Here are my favorite quotes on saving money.

Never spend your money before you have it. – Thomas Jefferson

Do not save what is left after spending; instead, spend what is left after saving. – Warren Buffett

He who buys what he does not need is stealing from himself. – Swedish Proverb

The price of anything is the amount of life you exchange for it. – Henry David Thoreau

Therefore, it is not how much you make, but how much you save that matters.

It was 2001. I was a young, aggressive, investment advisor on Bay Street. A call came in and being the broker of the day I answered.

Meeting potential clients

The caller was in his late 30’s, an executive in the hydro business and his wife was a marketing executive. They had two kids. He wanted to meet with me as he needed help to save money and start saving for retirement.

Are you kidding me? Sure…. It was an opportunity of a lifetime.

I called the wife and told her I would be late for dinner.

I am dressed to kill. The car is washed. I am ready to make an impression. I am ready to open an account and help this couple save money.

I drive around and check the hood. I see a Mercedes and BMW parked outside their home.

I am excited. My heart is beating fast. I have my pitch perfected.

I ring the doorbell and they welcome me.

Zero Savings

After the basic get to know chat, we sit down to have a more serious conversation. The numbers are impressive. They have a total family income of 250,000 plus bonuses. I can work with that. I can give them tips on how to save money.

After that, I ask how much do you save at the end of the month?

Their face completely changed. They had zero savings.

The monthly payment for the mortgage was $ 3,000, each car was leased for $ 500, private school per child was $ 2,000, trips, vacation and eating out took the rest.

I made some recommendations that included some lifestyle changes to be made in order to reach their goals and how to save money.

As a result, I left empty-handed and never heard from them.

As a VP with a US discretionary manager, I covered Ontario and Manitoba. I would only go to see a potential client who had a minimum of $ 750,000 to invest.

I flew to Sudbury to see a surgeon, an executive in the construction business and a retired janitor.

How to save money

As a result, I googled the home of the janitor and it was not impressive. To be honest it was in a derelict state. I thought to myself he probably wants free information on our stock picks and is not interested in our services.

I went to see him at 5 pm and he preferred that we sit out in the balcony. After the usual small talk, I explained a little about our services and asked him the usual getting to know your client questions. I asked him about his net worth and he did not have a clue. He brought out two statements from different banks and the total was about $2.5 million.

As I am looking at all his holdings, he tells me he also has some share certificates and bonds. He brings about 30 share certificates and bonds and they consist of all blue-chip stocks listed in Toronto and New York.  His liquid net worth came to approximately $5 million.

I recommended that he convert them to electronic shares.

Above all, I was fascinated. I wanted to know his story.

He shared that he started off as an 18-year-old janitor and saved a lot of his money and invested in shares. He retired at 55. He was not interested in impressing anyone. He lived within his means and took vacations. Overall, he lived a simple life. He did want to leave a legacy with a few charities. He was good at saving money.

Conclusion

In conclusion, if there is something, I have learned from being two decades in wealth management is that it is not how much you make but how much you save.

It is important to go out, travel, spend time with family, and do other fun stuff but it has to be within your means.

Photo Credits: Michael Longmire Vanessa Lee Javier Reyes Zan Allef Vinicius Benedikt Geyer

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Money touches everything. It affects how we sleep, how we eat, how we raise our children, and how we dream about the future. Yet too often, we treat finances like a separate compartment of life, disconnected from faith, family, and well-being.

What if we approached money the way we approach health, looking at the whole picture instead of isolated parts?

In this conversation, Jason Trueman, Portfolio Manager with Cumberland Private Wealth Management, shares why a holistic approach to household finances matters. From buying a quality mattress to investing with discipline, Jason explains how thoughtful spending, long-term vision, and balance can create not just wealth, but freedom and peace of mind.

Welcome to Four Columns, where food, faith, finance, and family are not separate conversations, but part of the same story.

Jason, welcome to Four Columns, a holistic blog on food, faith, finance, and family. Please tell me a little about yourself.

I am a Portfolio Manager with Cumberland Private Wealth Manager. Cumberland is headquartered in Toronto. I work with a talented team in Kingston, Ontario, including a CFP, CA, CPA, and TEP, providing holistic wealth management services for successful Canadian families and business owners.

How did you end up in personal finance?

I graduated from Queen’s University with a Bachelor of Commerce Degree. I received my CFA charter in 2001. I started my career as an Underwriter with Chubb Insurance. I was recruited by AIG and worked in Bermuda for 7 years before returning to Kingston to raise our young family in 2010.

Give me three tips on how to have a holistic approach to personal finance?

Control your spending by buying things you need and on an average cost basis (i.e. you will spend one-third of your life on a mattress so buy a good one).

Be disciplined with your investing. Buy dominant companies with great management who care about both their customers and their shareholders (these are rare and require work to find).

There is a balance between disciplined spending and enjoying your life; life is short so if you need a trip or a new car or new shoes to enjoy your life then spend the money.

What happens when we live on credit cards and not on our salary?

Credit cards that you pay off in full on a monthly basis and never pay interest on and accumulate rewards are great. When you overspend and pay exorbitant interest living beyond your means then you will suffer from difficult financial decisions and increasing stress.

How important is it to have a budget as part of a holistic approach to our personal finance?

I find long-term goals are helpful in providing meaning to your actions like why am I going to work and saving for my child’s education or retirement. Budgets help keep your life and spending in order; like a calendar and daily to-do lists.

What are some important tips to start saving?

Paying off your higher interest-bearing debt is most important. Taking advantage of government savings programs like RESPs, RRSPs and TFSAs is enormously important as well. Again, buying things you need (healthy food, a quality mattress) instead of buying things you want for status and cost a lot on a per-use basis (the tenth pair of shoes, vacation properties) is critically important.

How do you balance faith, food, finance, and family?

I believe in humanity; if we all do our part to contribute, we collectively accomplish amazing things. If you don’t spend money on healthy food then you’ll pay the price with poor health and physical limitations. Finance is about independence; ideally, a career doing something you enjoy while creating financial freedom to do nothing if you so choose. Raising kind, caring and confident children who find something productive they love to do in life are our number one job as parents.

Can you recommend some great restaurants in Kingston?

Kingston has an enormous array of awesome restaurants – having 35,000 students in the city helps. I prefer local family-owned restaurants such as Tango, Woodenheads, and Harpers.

You manage money for the wealthy, what have you learned from the experience? Do they have a holistic approach?

Success usually requires some form of sacrifice at some stage in their life. For many that mean focusing on academic excellence instead of always finding the nearest party. For others, that means pursuing an idea, a vision, and taking on considerable financial risk, and working excessive hours to make their dream a reality.

How important is food to you?

Food has an enormous impact on how you feel and how you look. Humanity would benefit from healthier eating with lower health care costs, lower greenhouse gas emissions, and an overall more productive society and cleaner earth.

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A financial plan is a road map to achieving your financial goals.

We all have financial goals. It could be for a vacation, purchasing a home, children’s education, or retirement.

A financial plan looks at where you are at present and what you want to achieve in the future. It looks at net worth, cash flow, insurance planning, estate planning, retirement planning, and taxes.

A financial plan gets you in touch with reality, helps you to become realistic, looks at opportunities and risks, and gives you peace of mind.

Scott Schofield of Nesbitt Burns talks about reasons to have a financial plan and a disciplined savings strategy. Having this does not make you feel guilty.

Scott tell my global audience a little about you?

I am an investment advisor in London, Ontario, for approximately 150 families and business owners. I am a Chartered Investment Manager (CIM®) and have 20 years of experience in the asset management industry. Before joining BMO Nesbitt Burns, I consulted with financial advisors in my role as Senior Vice President with Mackenzie Investments and Dynamic Funds and hold a BA in Economics from Dalhousie University.

When not analyzing numbers, I enjoy many outdoor activities including kayaking and stand-up paddleboarding. My favorite activity is skiing with my wife and our two daughters that are 8 and 10 years old.

You have been around the financial services industry for a long time. What are some of the things you have learned? 

Being in the financial services industry has taught me a number of things over the years. However, one thing that stands out is that investors have a tendency to forget about ‘risk’ in their portfolios when the markets are good. It is always good to re-valuate your portfolio to ensure your portfolios are aligned with your objectives. If you are asking yourself, what are my objectives? you should seek advice from a licensed professional immediately.

Besides saving 10 percent, paying off your debts, living within your means what other advice can you give to my audience?

Great question, I would have to say seek out advice. Many Canadians feel like they do not have a high enough net worth to seek the advice of a professional. This is not the case. The value of having a financial advisor is undeniable.

Why is it important to save for retirement and what are some of the tools? 

There will come a day when you stop receiving a paycheque and need to replace that with an income from your portfolio. Saving in tax-deferred plans such as Registered Retirement Savings Plan’s (RRSP’s) and Tax-Free Saving Account’s (TFSA’s) are great ways to help reduce and manage the level of tax you will pay in retirement.

To become successful in saving, we have to make some sacrifices and have a financial plan. Do I always have to have the latest TV, cell phone, latest car? 

Some people really like to have the latest and greatest. I do! You should treat yourself from time to time. Having a financial plan and a disciplined saving strategy can potentially take the guilt out of treating yourself because you will know if you can or cannot afford these things.

Talk to me about TFSA and RESP? 

Both are great tools for investors.

The Tax-Free Savings Account (TFSA) began in 2009 and is a great way for Canadians to set aside money tax-free throughout their lifetime. A TFSA does not apply taxes on any contributions, dividends, capital gains, or interest earned, and can be withdrawn tax-free. This savings account is available to individuals aged 18 and older and can be used for any purpose.

An RESP is a great way to save for your child’s or grandchild’s post-secondary education. Parents, grandparents, and friends can contribute money any time to an RESP – up to a lifetime total of $50,000 per child. These contributions are not tax-deductible, but any investment income that’s earned within the plan isn’t taxed until it’s withdrawn.

The federal government will match 20% of the first $2,500 you contribute each year. That is $500 each year. When your children or grandchildren are eligible to start receiving the money to pay for tuition, books, computers, residence, meal plans, transportation and more, they pay the tax—generally at a much lower rate than you would have paid.

If my viewers want to become a client of yours, what are you looking for in a client? 

The bottom line is we want to work with clients that are engaged in their financial well-being.

Working towards financial goals is best done by a collaboration between our clients and our team.

It does take some investment of time in the early stages to get to know our client so we can properly propose personalized solutions and a financial plan that finds a balance between their goals and their risk tolerance. From there we implement the plan and monitor it year-round.

How important is it to have a financial plan, a road map of where you are going, goals, estate plan, and a will? 

I cannot stress enough how important a financial plan is to our client’s financial well-being.

It is a personalized blueprint or roadmap to meeting and exceeding financial goals.

A plan is adjusted over time as life events and unexpected things happen in our clients’ lives.

It also is a tremendous aid in helping to minimize tax during and after our clients’ lives.

How important is food to you and let us know some of your favorite restaurants in London?

What can I say I love food! I always like to be the first of my friends to try new restaurants and enjoy traveling and trying new to me restaurants along the way.

In London, I tend to frequent two of my favorites often.

The Church Key Bistro-Pub is a British traditional gastropub specializing in traditional food done with a gourmet flair. They use seasonal and locally sourced ingredients whenever possible. If you go there you have to try their Ale & Onion Soup with the Smoked Salmon Sammy.

The Bungalow – Neighbourhood Hub, is a great neighborhood ‘local’ in a residential area. The restaurant’s style and cuisine are designed for casual and convivial enjoyment. They have an extensive craft beer selection and a build your own burger option that they claim results in over 3000 different possible combinations. When not tinkering with my burger recipe of choice, my go-to is the Fish Tacos with the Habanero Potato Cheddar Bacon Soup.

How do you balance faith food family and finance in the 21st century? 

Finding a balance is sometimes tough with a busy practice and family. Making and taking the time to shut off devices and being in the moment with my family is very important to me. The best conversations are with my girls walking the dog after dinner or the quiet time when riding the chair lift when skiing the family.

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A household budget is a financial plan that allocates future personal income towards expenses, savings, and debt repayment.

Welcome to my series, How To Use Money To Make You Happier.  In the introduction section, I gave some stats and mentioned a few reasons for starting this series. I am going to break this series into a couple of steps:

Introduction

Make SMART financial goals

Create a budget

Income

Expenses

Needs and wants

Debts

Difference between good and bad debt

Pay off debt

Use the credit to your advantage

Give to charity

Introduction

Budgeting has only one rule: Do not go over budget – Leslie Tayne

A debt problem is, at its core, a budgeting problem – Natalie Pace

When it comes to money and so many other things in life, understanding your weaknesses and strengths can help you with your future plans – Tagene Brown-Mcbean

If there is one thing, I have learned being in the wealth management business, teaching financial planning, and counseling people over the last two decades is that Americans do not like to create a budget. As a result,  I have heard it all. Jerry, you are taking away all the fun from life. You mean I cannot take three vacations a year. I cannot buy a new pair of shoes every month. I cannot buy expensive makeup. I cannot eat out all the time. No! I am not saying that. In conclusion, I am empowering you to live within your means by creating a household budget.

The main goal of a household budget is to show how much money you are making a month and how it is spent. It is the foundation to build your financial future. Above all, a budget helps you to use your money efficiently.

A household budget gives you control. It allows you to balance your income with your expenses.

If you do not balance your budget and spend more than you bring in then you end up in debt.

Income

The first step in creating your household budget is to look at your monthly net income. If you get paid on the 15^th and the 30^th of the month and you get $2,000 every payday then your monthly income is $4,000.

Expenses

It is important to keep track of all your monthly expenses.

I like to break down expenses into fixed, variable, and discretionary.

The first thing to look at is your fixed expenses. The fixed expenses could be your student loan payments, car payments, rent, or mortgage. These payments are fixed and you cannot decrease them.

The second thing to look at is your variable expenses. These expenses can change from month to month and would include gas and groceries.

Discretionary expenses would include shopping, entertainment, travel, and recreation.

The bank or the credit card will provide you with a proper breakdown of your expenses.

You have now documented your net monthly income and your fixed and variable expenses. You can see where your money is going and you can make changes. If you make $4,000 a month and you are spending $3,600 and saving $400 a month, give yourself an A+. If you are spending more than $4,000 a month, then you need to look at your discretionary expenses and changes need to be made.

Create a System

I will let you decide if you want to use a pen and paper, Excel budget template, money management apps, budget calculator, financial software, or a system designed by the financial gurus. At the end of this article, I will give you a simple example of a budget worksheet.

Advantages of having a budget

It empowers you and gives you control

It keeps you focused

It shows waste

Reveals your spending habits

Reduces stress

Helps in becoming more disciplined

Helps you focus on your goals

Motivates you to save for vacations and unexpected bills

Needs and Wants

You cannot always have what you want. Sometimes you get what you need. – Linda Berdoll

Supply the needs first and the wants later, for one can only obtain true peace, love, and joy when one supplies the needs first and not the wants. – David Benedict Zumbo

A need is something you have to have in order to survive. Food, clothing, shelter, and health care are examples of a need. A BMW, Nike shoes, Polo T-shirts, eating out, going to the movies are wants. Try to spend 80% of your income on needs, 10% on wants, and save 10%.

Example of a Household Budget

Monthly Income                   _____           Insurance                   _____

Net Income     4,000                                            Car

Dividends                                                               Health

Interest                                                                   Life

Benefits                                                                   Home

Charity                                   _____             Personal                     _____ 

Savings                                   _____            Groceries

Vacation                                                                Personal

Retirement                                                           Other

Wants                                                                    Miscellaneous

Credit Card Debts                _____          Entertainment           ______

Visa                                                                        Meals

MasterCard                                                          Movies

Amex                                                                     Gym

Loans                                      _____

Student

Car

Home                                      _____                                

Mortgage/Rent

Taxes

Heat

Water

TV/Cell/Internet

Monthly Income minus all your expenses let you know if you are over or under budget

Finally, it is important to review your budget, every quarter. A budget is a piece of art and not an exact science. Look at some of the areas you need to get better. If you are getting better reward yourself.

There will be times when you have an unexpected expense. That is when your savings come in handy.

Email me back as to how this has helped me and any other questions you may have.

The post How to create a household budget appeared first on Four Columns of a Balanced Life.

How to make SMART financial goals.

Welcome to my series, How To Use Money To Make You Happier.

In the introduction section, I gave some stats and mentioned a few reasons for starting this series.

I am going to break this series into a couple of steps:

Introduction

Make SMART financial goals

Create a budget

Income

Expenses

Needs and wants

Debts

The difference between good and bad debt

Pay off debt

Use credit to your advantage

Give to charity

SMART Goals

It must be borne in mind that the tragedy of life doesn’t lie in not reaching your goal. The tragedy lies in having no goals to reach – Benjamin Mays

I am a big fan of having goals that are SMART. Your financial goals need to be specific, measurable, agreed upon, realistic, and time-based.

Your financial goals must be defined and clear to you. It should be obtainable and you need to know and find out when it has been achieved. It needs to be agreed either by you, by everyone in the family or household, within the time frame to achieve the goals.

Three Kinds of Financial Goals

I want you to take a piece of paper and a pen and write down your goals.

Divide your goals into three parts.

The short-term goals are those that you want to achieve between 1 and 3 years.

Car repairs, home repairs, home improvements, vacation, personal items, credit card payment, student loan payments, insurance, rent or mortgage payment, emergency fund, and any other day to day expenses come under short term goals.

Medium-term goals are those that you want to achieve between 4 and 10 years.

Saving for a down payment on a house, debt payments, saving to buy a car, are examples of medium-term goals.

Long terms goals are those that you want to achieve after 10 years from now.

Saving for retirement, paying off your mortgage, saving for your children’s education are examples of a long-term goal.

When you set goals, you are setting a foundation upon which to build your future.

The goal of this series is for you to use your money to make you happier. As a result, you need to focus on the fact that your goals are there, so you do not worry, have shelter, food, enjoy your hobbies, have a car, go on vacations and save for your children.

Specific

A specific goal needs to answer which, why, where, who and what you want to achieve.

The what goal could be to save, so you can tour Europe.

You might want to pay off your mortgage in the next fifteen years. A goal could also be that you want to retire by 55. Another example would be, you want to go to the gym four times a week.

The why goal is there for a reason. Why do you want to tour Europe? Do you want to see different countries? Do you want to experience different foods and cultures? Why do you want to pay off your mortgage in the next fifteen years?

The why has to be aligned with your goals, values, vision, and mission about your life. There needs to be a link here. Once that link is there, you will be happier.

The where goal looks at what gym you want to join to go four times a week?

The who looks at everyone else involved in your life. If you are single then that is good also. If you are married or living with someone, then the who looks at all the other people involved in your life who might be impacted by this goal.

The which factor looks at the exercises you will do to stay in shape. The other factor is which countries do you want to visit in Europe?

Measurable

The measurable aspect will look at how much. How much looks at the amount of money you have to save to go to Europe. How much do you need to save to retire at 55? How much is the mortgage and what will it take to get it accomplished? You need to measure; how much you are saving monthly or quarterly for that vacation.

Achievable

The financial goal needs to be achievable. As you get closer to your goal, you will feel good and motivated. Do not create some pie in the sky.

Realistic

Keep in mind all those around you. If you have a mortgage, two car payments, and a couple of kids, then making a goal to save $40,000 in a year is not a realistic goal.

Time-Based

Your goals need to be based on a time limit.

I want to show you, how you can do a SMART goal to pay off your mortgage or student loan in 20 years.

‘I want to pay off my student loan in 20 years’. ‘We want to pay off our mortgage in 20 years’. This is an example of a specific goal.

‘The balance of my student loan is $ 20,000, I want to bring it to zero by 2039’.

‘We want to pay off our mortgage of $250,000 by 2039 is another example of a measurable goal’.

If you are a single professional and making decent money, then maybe paying off $ 20,000 in student loans over a 20-year period is attainable. The same is possible for the mortgage.

In order for the goal to be realistic then your income and lifestyle need to match the goal.

The 20 years is the time-based goal.

Take some time and complete this assignment.

Thanks for reading and do write back to me as to how you are coming along with this and if you have any challenges.

Photo Credits: bongkarn thanyakij Andrea Piacquadio 

The post How To Make Smart Financial Goals appeared first on Four Columns of a Balanced Life.

In this post, I will show you how to use money to make you happier.

In the 21^st century, money is critical, essential, influential, significant, vital, fundamental, and important.

We go to school, college, and then university to become capable of earning it. After graduation, we spend the next four decades, making it. We think about it, how to make more, how to spend it, we worry about it and finally dream about winning the lottery.

Is money the root of all evil or can it be used to make a difference in society? In a divorce, arguing over money is one of the reasons given for separating. Our emotions ride high and low with how the stock market behaves or the value of the real estate. Some want the easy way out and resort to crime to achieve it. The world is judged by being first, third, and developing based on how much they have in terms of money.

In 2010, Bill Gates and Warren Buffett started the Giving Pledge. The top 1% is being asked to give more than half their net worth to sustain the environment, reform criminal justice, culture, arts, medical research, empowering girls and women, to get rid of poverty and other causes. 154 billionaires have signed the pledge. They do not want to leave the money for the next generation.

I found myself having to deal with money when I was in grade 8. I was in boarding school and a bank account had been opened for me. I was allowed a set amount of pocket money a month. At Bishop Cotton, the bank was on campus. However, all withdrawals had to be signed by the housemaster.

At college and university, I had to budget and make sure I never spent more than I had in my bank account. I did a co-op (internship) at Hotel De La Paix in Geneva. The crème de la crème of Geneva had their meals at the hotel. The tips were great.

I worked at a bank for a decade of lending money and then managing money for individuals. After that, I spent more than 15 years on Bay Street. Every couple of years, we had to update the client information. When I called clients for information on money, it was a tough fight. I soon learned that people are willing to talk about everything but money. It is an emotional thing. Our ego, identity, and everything else is attached to that paycheck.

Money is essential so we can have food, clothes, and shelter. Money can give us many options. However, do we use the money to have more free time or more things?

Does money make us happier? From the 1940s to the 90s, the purchasing power of Americans increased by 150%. Here is an interesting stat. The stats reveal that depression among people during that period went up by more than 10 times.

Tibor Scitovsky in 1976 wrote The Joyless Economy about human satisfaction. The author comes to an amazing conclusion. The best things in life cannot be bought with money. All research has shown that purpose, meaning, relationships, and connecting with nature bring people satisfaction.

Join me on the money series as I write on how to create a household budget, save for emergencies, retirement, and vacations, how to pay off debts, give to charity, and use credit to your advantage. I promise you this series will transform how you look at money and your life. You will learn how to use the money to make you happier.

The post How To Use Money To Make You Happier appeared first on Four Columns of a Balanced Life.

When it comes to money, most of us know the importance of planning—but very few of us actually sit down to create a household budget. To better understand why budgeting, financial planning, and legacy preparation are important, I sat down with Tony Romolo, a seasoned professional with over three decades of experience in the financial services industry, currently with Manulife Private Wealth.

In our conversation, Tony shares candid insights on why a household budget is more than just numbers—it’s about control, choices, and creating a roadmap for your hopes and dreams. From the basics of budgeting to the importance of credit, estate planning, insurance, and even family values, Tony’s open thoughts offer a practical yet philosophical look at how money shapes our lives.

Please note: These open thoughts, ideas, and commentary on a household budget are those of Tony Romolo only. They are informal in nature and do not necessarily reflect the opinions of Manulife Private Wealth.

Tony, you have been in financial services for three decades. Walk me through why it is important to have a household budget.

A household budget is very important, and yet I can think of only a few that have one.  Why is a household budget important?  Because, in my opinion, a budget is about control.  A budget gives reasonable comfort and control over household finances.  It is the road map that will help determine how the money you receive is spent, saved, invested, gifted, and so on.  Because a budget is a forward-looking forecast, it is bound to be imperfect.  That’s okay.  The absence of a budget means a lack of control, stress, added expense, and so on.  Having a budget is a key component in helping you achieve the goals you set.  Sounds pretty reasonable and straightforward so far, yes?  In fact, a household budget is far more complicated and involved than it appears because a budget is about making choices.  Essentially, life planning (as much as that is possible) requires a household budget to help ensure you realize your hopes and dreams. 

Help me understand what we should include in a budget? 

A household budget is a forecast of money that will be received and money that will be spent over a future period.  A budget should be tweaked periodically and amended as required.  There are endless formats and tools to help establish a household budget ranging from the very simple to the very sophisticated.  Budgeting is essentially goal setting.  To successfully meet your budgeting goals, a household budget should include a couple of key things.  Firstly, a budget should not be a burden and a sore spot.  Remember, a budget is supposed to give you control and relieve household financial stress.  A properly structured budget should be a go-to tool that keeps you on track and gives you comfort.  Secondly, a budget should be flexible such that you can stay on plan while at the same time be prepared for managing unexpected expenses or money you unexpectedly receive.  Again, the idea is more about having a useful tool you can rely on as opposed to feeling terrible about going over budget or elated about being under budget.

How important is it to maintain a good credit score and rating?

Maintaining a good credit score and a good credit rating is very important.  A good credit score helps lenders assess your creditworthiness.  A good credit score will help lenders provide the best loan pricing possible.  A good credit score will give the prospective borrower the most favorable terms and conditions when borrowing money.  In today’s day and age reliance on credit and access to credit is perhaps more important than ever.  Having a good credit rating and credit score will help you with the credit you currently have and with the credit, you may need to access in the future.

Explain the different kinds of credit ratings and how can I mess it up? 

Your credit score recaps how much you owe to lenders, how much credit you have access to, what your repayment history has been like and other things.  Essentially, credit history reports capture installment loan information (like your car loan) and revolving or line of credit information such as the limit on your credit card, how long you have had the card, how much you owe, etc.  Your credit score is sensitive to how much actual debt you owe and how much you have access to.  It is also sensitive to how often you look to borrow money.  It is sensitive to how many different lenders you approach.  It is certainly sensitive to your repayment history.  Your repayment history is carefully tracked.  If you miss a monthly payment, for example, it will be re-scored as such.  Credit history reports are meant to be factual.  If you file a consumer proposal or declare bankruptcy, for example, that will be recorded in your credit history report.  Essentially, it is important to adhere to the terms and conditions set out by the lender that you agree to when you borrow. 

Why is having a financial plan important and what is your role in doing that?

Having a financial plan is very important.  Generally, a financial plan is all-encompassing capturing all money-related elements of an individual, couple or family.  A financial plan is the blueprint and road map one can rely on to help achieve financial life goals.  For the past couple of decades, I have worked closely with financial advisors in a multitude of different firms that specialize in financial planning.  Again, there are amazing tools and software to help navigate the complexities of financial planning.  I have really never been a financial planner, per se.  I have always participated in helping out with certain key aspects of the overall financial plan. 

Let’s talk about estate planning. Why is it important? 

An estate is all the money and property one owns at any given time.  The estate may exist while one is alive when one dies and beyond death.  As you might think, estate planning can be quite multi-faceted and usually refers to the planning process involved in passing on one’s money and property after death.  Inheritances.  Charitable giving.  Tax minimization.  I will get a little philosophical and I will keep it simple because the topic is very broad.  Estate planning deals with the legacy one leaves behind.  Estate planning is about giving meaning to the life one has led. 

Why is having life insurance important?

Life insurance is a very unique asset.  As you might imagine, it is insurance in one’s life.  One might argue that there is no need to insure something that can be easily replaced if lost.  By that logic, life insurance is absolutely essential because human life is irreplaceable.  I realize I’m getting philosophical again.  A financial plan might outline the need and amount of life insurance required.  Your budget will also capture what the cost of life insurance is and how that factors into your overall goal-setting and legacy planning.  The owner of a life insurance policy will insure life and name a beneficiary or beneficiaries.  Life insurance is an excellent tool used to protect assets and replace income in the event of the death of the insured.  The owner of the life insurance policy can also access the value of the policy during his or her lifetime.  I stand by my earlier comment.  We work incredibly hard to generate income and create wealth so protecting that income and wealth with life insurance is a very prudent thing.  Interesting use of life insurance is actually an attractive estate planning strategy.  I will give you a rough idea:  A parent can purchase life insurance on the life of their child and then transfer that life insurance to the child in a rollover transaction.  This is attractive because, essentially, the parent has the ability to purchase life insurance for the benefit of yet-to-be-born grandchildren! 

What is your opinion on having a will?

It is important to have a will.  We talked about financial planning and estate planning.  A will is a key part of the planning.  A valid and well-thought-out will ensure estate planning efforts are seen through to completion.  Get a will properly drafted.  The costs are justified.  Avoid the unnecessary costs, delays, and family bickering that result when one dies intestate (without a will). 

Give me three practical tips on how to manage our finances.

Three practical tips when it comes to managing your finances:

Pay yourself first.  This one is my favorite.  The idea is to set aside, save, or automatically invest a percentage of your regular income as soon as you receive the income.  This is a great habit to get into.  You will not notice you are paying yourself first.  You will build an excellent investment portfolio/savings.

Do not carry high-interest debt.  Do not carry credit card balances.  Pay your credit card debt in full each month.  If you can, refinance your debt into the lowest-cost loan possible.  Usually, refinancing your debts into your mortgage is best.  Part of this point is to avoid the trap of refinancing your mortgage with regular frequency because that sort of defeats the purpose!

Invest in yourself.  Take a college/university course every year.  Read.  Be a lifelong learner.  Be active and look after your health.  Be a part of your community and be sure to give back.  Volunteer.  Investing in yourself will generate ever greater financial and personal dividends. 

Talk to me about food, family, and some of your favorite restaurants in Toronto.

Family is very important to us.  I refer to family in a broad sense.  It is important to remember and acknowledge we are inter-connected to our parents, grandparents, uncles, aunts, and so on.  We are all rich tapestries.  We are all in this together.  Life would have us believe we are misunderstood, alone, and isolated, however, the opposite is true.  Our family’s favorite restaurant is Terroni.  Everything on the menu is a win!

Photo Credits:  NORTHFOLK Kelly Sikkema  Christiann Koepke Blake Wisz Green Chameleon Melinda Gimpel

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