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.

The post Reasons To Have a Financial Plan and a Disciplined Saving Strategy appeared first on Four Columns of a Balanced Life.

Financial Advisor, Financial Consultant, Financial Planner, Wealth Advisor, or a Peddler

In 2019, just before COVID hit, I was attending a financial seminar in a mall. The first booth had a bunch of firemen who worked three days on, three days off, and were selling mutual funds on the side. The next booth was nicely laid out with brochures. The lady was a nanny from 7 am to 3 pm, and selling mutual funds was a side hustle. At the third booth was a salesperson who called himself a financial advisor and tried to hire me. He said I could hire other people and make money. Everyone was a mutual fund peddler.

As I walked away from the so-called financial seminar, something hit me. The average public really does not know who or what a financial advisor is. As a financial advisor, I had an MBA, a financial planning designation, a trust, and a portfolio manager designation, and how does the public know the difference? Do they even know what a financial advisor, financial consultant, or financial planners does?

Everyone is unique and has a different approach towards money. Financial advisors are different, too. It can become challenging to find the right advisor for you to meet your goals, needs, and align with your values. It is important to find the exact match who will manage your money healthily and ethically. Money can be used to make you happier and make a difference. If you are aware of your goals, priorities, and values, then finding the right advisor will make a huge difference.

A financial advisor is more than doing an exam and using the software. It is important for the advisor to be a good listener, have empathy, and guide you through the various financial decisions you will be making during your life. It is a long-term relationship.

Before you look for a financial advisor, I have compiled a few questions to ask, to see if it is the right fit for you. After all, you are giving them your money and savings.

Do not be nervous about interviewing an advisor. You are looking for a ‘cultural fit’. Tell the advisor the first meeting is a ‘getting to know each other’. You will not make a decision in the first meeting. You are hiring someone to take care of your money. The advisor needs to provide a path and not confuse you.

The first thing you need to do is ask yourself what kind of help are you looking for? If you are just starting out and want to invest anywhere from $50 to $500 a month then a robo-advisor will be a great fit for you. Robo-advisors have low fees and do not have a minimum threshold.

Will you have a fiduciary duty towards me?

A fiduciary put their clients’ interest ahead of their own, focusing on preserving good faith and trust. A fiduciary is legally and ethically bound to act in your interest. A non-fiduciary is focusing more on ‘products’ that are ‘suitable’ for you and might not be the best for you.

Talk to me about your education and qualification?

Do not get confused by the alphabet soup of initials behind the name of the financial advisor. The titles of a financial planner, investment advisor, investment executive can be confusing. Look into their background by seeing the professional designation database and the regulatory authority’s website. Check how long they have been in the business and if there are any disciplinary actions, lawsuits against them, or if they are under supervision. A CFP, CFA, or CIM designation is ideal.

You want your advisor to have an understanding of your estate plan, tax plan, insurance and bring a holistic approach to personal finance.

What is your investment philosophy?

The investment advisor is your coach, your guide, and will be an integral part of your financial planning. It is critical to be familiar with the approach they take regarding your investments. What is their approach? What kind of research they do? How do they choose specific stocks, bonds, ETF’s and other investments in your account? Do they strictly buy mutual funds and leave them there? Are they active or passive investors? Will they rebalance your account?

As a client, you have to be on the same page as your advisor. Any advisor will do well in a bull market when everything is going up. How about in a choppy market? The reason it is important to be aligned with your advisor is that what if you do not want to invest in sin stocks? You do not want to invest in an arms manufacturer, alcohol, cigarettes, or gambling companies? However, the advisor presents a portfolio that is full of these companies. Or, you want to invest in companies that focus on corporate social responsibility, ethical and sustainable ideas, invest in women and members of the BIPOC and LGBTQ community.

Investments need to be aligned with your goals and values. It should be diversified. They should have a benchmark that they want to beat. The portfolio recommendations should look at your risk tolerance, investment objectives, cash flow needs, estate goals, age, net worth, and tax situation.

How do you get compensated?

Advisors use per transaction, fee-based or they put you in DSC funds where they get a commission upfront but you have to hold the funds for a certain period. I strongly recommend a fee-based advisor. The fee-based advisor charges a percentage on the assets they manage. They also are not product sellers that give them the greatest commission.

Make sure the advisor is not double-dipping. Make sure the advisor is not charging you fees, then putting you into new issues, private placements, or mutual funds where they get a commission. The advisor should put your needs, goals, values, and investment objectives first.

What experience do you have?

It is vital that you choose a professional who has the experience and who devotes all their time to advice. You want to know how long the advisor has been in the business, how many firms have they changed, and what kind of clients they focus on.

Which custodian do you use?

You do not want a Bernie Madoff happening to you. The advisor needs to have an independent custodian to hold your assets. You want to have online access so you can check your assets.

What services are offered?

A financial advisor might offer financial planning, estate planning, life insurance, stocks, bonds, mutual funds, options, or tax advice depending on their education, credentials, areas of expertise, and registration with regulatory authorities.

I prefer someone who looks at my financial goals, ethics, values and aligns them with investments, insurance, estate planning, and taxation.

Explain how the relationship works between you and your team?

You want to know; will you be talking to the advisor or the assistant. Also, how often will you meet during the year to discuss how the investments are performing. Is it an annual face-to-face meeting? Will you get a weekly or monthly email? Who else is on the team? Is there a lawyer, accountant, or estate specialist also on the team?

Do you work with a special type of client?

Some advisors work only with entrepreneurs, doctors, professional sports players, insiders, executives, or women. You want to know if you fit in that mold? You want to find an advisor who is passionate about helping you meet your goals and has experience working with someone in your financial situation.

Is there a minimum amount that you work with?

You need to find an advisor who will work with what you have. Advisors have a minimum investment for them to take an account. No use going to see an advisor who only takes a million and you have only a hundred thousand to invest.

Does the New Client Application Form detail all the services that will be provided?

The New Client Application Form takes all your information down. Find out if all the services are outlined. Read the fine print.

The next steps in hiring a financial advisor

You have interviewed three advisors. Now it is time to make your decision. Did you like the advisor? Did you bond with the advisor? Can you trust this person? Was there a comfort level? Was the advisor listening to you or just talking over you? If there is a yes to the answers then go ahead and make an appointment. Good luck.

The post 10 Questions to Ask Your Financial Advisor appeared first on Four Columns of a Balanced Life.

Money and holidays go hand in hand.

There is so much to do. You have to buy gifts, visit family and friends, and bring stuff to each of those visits.

If one is not careful, the bills can pile up, and January can become a scary month. However, it does not have to turn out that way. Have a budget, set up a list, pay cash, do some free stuff for people, volunteer, give your time, do not buy on credit, do not buy last minute, give practical gifts, use coupons or online sales, and have fun.

Enjoy the holidays, rejuvenate and get ready for the new year.

I talk to Hope, who is a blogger at UndertheMedian and we discuss how to stay within a budget and to use your money wisely during the holidays.

Hope, a pleasure to have you onboard and talk about one of my favorite topics, money and household finances. I love your name Hope and please tell my audience a little about you?

My husband, Larry, and I have been married for 31 years and are the proud parents of four sons – age 11-23. I have a degree in Radio and Television, working for a local radio station for 12 years, before leaving the full-time workforce when I had children.

Since then, I’ve provided voiceover talent for such prestigious companies as Pioneer Hybrid International and the Museum of Science and Industry in Chicago. I sing the second soprano and have been a featured soloist for the highly-acclaimed Heritage Ensemble, am a frequent and popular speaker at the APACHE Homeschooling convention, civic, and church groups. I teach literature and public speaking in the high school department at Peoria Cooperative Academy. I have written multiple guest posts for websites, including Crystal Paine (Money Saving Mom) and Change Your Finances. Finally, I blog and give tips on living with a spirit of joy and abundance on a shoestring budget.

What is Under the Median all about? Why should we read it? Who is your audience?

When my husband and I married in 1988, we were each making $5 an hour. Three months later, our bank account registered ZERO! We had a choice to make. Would we continue our current spending habits and sink into debt, or look our situation square in the face, embrace delayed gratification, and learn to live within our means?

We chose to take the bull by the horns, set goals, and figure out how to live lean. Four years later, we purchased our first home with a 20% down payment. We paid off our 15-year mortgage in just 5 years. Then, 12 years later, we purchased our current home with cash. We did it all while raising 4 sons on an income that was consistently under the national US median income.

My blog, Under the Median, was born three years ago out of a desire to teach others how to not only cut costs but also to live with a spirit of joy and abundance while doing it! Encouragement and practical advice are huge parts of my blog. Anyone who wants tips on how to live within their means, save money, and create memories without spending money, will enjoy reading my blog.

You talk a lot about budgeting. What is it and why is it important to talk about money?

Some people get very uncomfortable when you begin speaking about budgeting, but, really, they shouldn’t. A budget is a monthly spending plan, giving each dollar that you earn a job to do. It’s not about being in a financial straight jacket. It’s about giving yourself freedom, knowing that you can spend money on that latte, as long as you have budgeted for it. I often tell people that no one is excused from setting short, medium, and long-term goals. In fact, if you make a less-than-average income, written goals are critical to your success.

It is not how much money you make but how much you save. Please comment?

Absolutely! We, personally, live in a neighborhood that is full of people who make several times what we do. My husband works at the local police department and has had captains and sergeants ask him how we bought a home in our neighborhood. We could afford to live here because we had a plan and worked diligently to make it happen. It was a long, hard road to achieve that goal.

Also, you have to remember that “money problems” do not just affect those who make little money. Often, folks who make a higher-than-average income, have never learned the principles of budgeting. You have to approach it as though it is a skill – because it is! The good thing is, anyone can do it! You don’t need a college degree or lots of money to make it happen. Information about how to save money and successfully budget are available for FREE. All you have to do is look for it! I’ve been budgeting for 30 years and I still check out finance books from the library. Why? Because there is always something more that I can learn.

December is the holiday season and stressful for many people with gifts and travel. How can people make it easier by spending the money they have?

I love this question! I teach a 3-pronged holiday strategy.

Be authentic and honest

There is nothing more wonderful than sharing warm moments with family and friends. However, the pressure to attend functions and spend money is very real!  It’s enough to leave you distraught, confused, and emotionally devastated. You can’t do it all – physically, financially, or emotionally. So, don’t try.  Be upfront and honest with every single person who comes to you with a request or an expectation. Answer sincerely and with a smile.

Set realistic expectations and boundaries

Boundaries are HUGE during the holidays, especially when it comes to family dynamics. It’s okay to tell your siblings that you won’t be contributing $100 toward Mom and Dad’s gift this year. Instead, you can afford $50. It’s okay to tell friends that you’d love to meet them for a drink, but you already allocated your restaurant money for the month. Better yet, invite them to your place for a pot luck dinner and then play board games or watch cheesy Christmas movies. It’s okay to set limits on how much you will spend on gifts. When was the last time you opened a gift and said, “Wow!  This is great!  How much did it set you back?”  I would venture to say that never have such crass words come from your lips.  So, it is highly unlikely that any friend or loved one will utter them either.

Create margin and memories

If looking at your December calendar is giving you hives, then do what you need to do to make it manageable. I advise that people pick several days and a pencil in “evening at home”. This gives you emotional permission to take time out to just breathe, read a book, and sip a drink by the light of the Christmas tree. Taking time for self-care is SO important when your schedule is a little wild.

Finally, you must remember that creating meaningful moments does not always mean spending a lot of money. We never had money while raising the boys, but we discovered several annual events, which were free or nearly free. As the boys got older, they told us which ones were most important to them. In fact, when our oldest was home from college for Thanksgiving, all six of us gathered in the living room, and everyone scheduled into their phone, the dates and times of this year’s holiday family events. My boys did not want to miss any of our family traditions!

How are household finances and money different as a single, married, and married with kids?

I remind married couples that they are a team! Just like a football player would never start passing when he was supposed to be blocking or tackling, you can’t go off in your own direction when you are married. Generally, one person in a relationship is a spender and the other is a saver. You need each other to find balance. I am the saver, but I need my husband to periodically say, “We have the money saved for this trip. It’s okay to relax and spend the money.” Conversely, he needs me to tell him, “No, we can’t afford that new big, screen television until next year” Then, I follow up with a timeline. “If we save $100 a month, we should have enough money in six months.”

The other thing you need to take into consideration is your partner’s communication and learning style. Larry is concrete-sequential. He doesn’t like anything that is nebulous. He likes a carefully thought out plan for nearly everything. When I began budgeting, my husband was pretty doubtful that we’d be able to reach any financial goals. Remember, we were both making $5 an hour. I realized that he needed to see my plan in black and white. So, I created a chart, delineating where we were financially now, a preliminary budget plan, and a timeline of when we would reach that first big goal (which was paying cash for a car). His reaction was like night and day! Once he could see that there were a clear path and a plan that we could set in motion, he was “in”!

Being married with kids is a whole new ball game! As parents, we want to give our kids the world. I remind people to think deeply about what really and truly counts in life. We need to develop our children’s character, their work ethic, their compassion for others, and their awareness of their own strengths and weaknesses. Your children need your love, affirmation, guidance, and time. None of which will cost you money! We spent a huge amount of time with our boys, deliberately creating moments every week of family bonding and fellowship. My grown sons have thanked us again and again for letting them know that they were loved and cherished.

Having said that, I’m a HUGE proponent of teaching financial principles at an early age. We give our sons an allowance from age 5-14 and it is tied to weekly chores and work. When they turn 14, we have a coming-of-age celebration! They receive special gifts from us, a ceremony, a blessing from my husband, and a party for family and friends. At age 14 we also stop paying them an allowance. Instead, we “invest in their dreams”, matching 50% of the amount that they earn toward their own, personal goals. They must earn their half by working for someone besides us. At age 16, they reach financial independence. We pay for all school-related expenses, healthcare, and food. They get a job, pay for their portion of the car insurance, purchase their own cell phone, and pay for all personal items and expenses. We match the first $2000 that they save toward a car.

Our sons knew very early in life that we would not pay for their college experience. We simply could not do it. They were encouraged to get good grades, participate in extra-curricular activities, and define their strengths and interests. Our oldest son will graduate debt-free in May of 2020, with 2 associate’s degrees and 1 bachelor’s degree. He won several scholarships, including a full-tuition offer to transfer to an amazing, small, private, Christian university. Our second son chose not to attend university. Instead, he is pursuing a career in IT. His passion for all things electronic has been clear since he was very young. Not only does his employer deeply appreciate his work ethic and commitment to the company, but they are also paying for all of his certifications.

I tell single people that they should not “go it alone”. No man (or woman) should be an island.

Get an accountability partner. It’s honestly lonely for someone who is single and is struggling with making ends meet or is deeply in debt. It can be debilitating to feel alone. They need to pick someone who will support their goals, not be afraid to lovingly be honest with them, and give them a sounding board. I mention the ability to call that partner if you are in the mall and that Kate Spade bag is calling your name. They will be able to tell you to put the plastic away and save up for it.

Give me three tips on how we can save money and have a meaningful holiday season?

There are three major steps that I tell people to take to get through the holidays without breaking the bank.

Get accountable. Don’t do Christmas alone and don’t “wing it”!

I will tell you with absolute transparency that the opinions of others have always mattered very much to me.  I love to make people happy and nothing breaks my spirit more than knowing that I have disappointed a friend or family member.  At Christmas, my husband and I spent out of guilt, feeling that we needed to make everyone happy.

It also became clear in a really short order that my annual spending spree had to stop! It was time for intellectual and emotional honesty with one another. We had to negotiate what traditions stayed and which ones needed to be cut. We had to partner together to get through December without a holiday hangover in January.

If you are not married, I highly recommend that you get an accountability partner.  This person should be trustworthy and willing to be firm, but honest with you.

Plan a realistic Christmas budget

One of the mistakes that people make is creating a gift list and then stopping there. First of all, that gift list needs to include how much you intend to spend on each person. Just going to the mall or heading to Amazon will spell certain disaster if you have no idea how much you can reasonably spend.

Secondly, I include everything related to the holidays: gifts, decorations, special dinners, supplies, high-priced ingredients that I don’t generally buy, stocking stuffers, and events like annual plays or musicals. I try to think of everything that may need to be added to my holiday budget and list it.

Shop wisely

Don’t hop on the “whatever is popular” bandwagon. Usually, those items are not only hard to find, but they are also expensive. Remember the Cabbage Patch dolls in the 1980s? There were physical riots trying to grab them off the shelves. Instead, put some thought into items that are meaningful. They should also fit into your budget, of course. You may consider visiting shops that stock lightly used items. Also, pay with cash. When you do, statistically you spend 20% less.

You have been married for three decades and raise four children. Give my readers some tips on being a wife and a mother?

As a mother, I took great pleasure in the challenge to create moments of family bonding for little or no money. For instance, because we had absolutely no money to go out to eat, we took the boys on Friday night picnics. Every Friday, we packed up whatever I had made for supper, a board game, read-aloud book, or some music, and headed off to a local park that overlooked the river. Both of my older sons voted “Friday night picnics” as their absolute favorite memory while growing up.

One of the other important roles of being a mother is being a sounding board for your kids without becoming a helicopter parent. My boys always knew that they could talk to me about anything – and they did! However, they also learned that if they were not looking for solutions, but for sympathy, they would preface the conversation with, “Mom, I just need you to listen”.

Another super important concept I talk about when I speak to parents is allowing your children to be their own person. They are not carbon copies of you. They come with their own set of strengths and weaknesses, their own desires and goals, their own individual bent and calling in life. Our role, as parents, is to help them discover the talents that God has birthed in them and then facilitating a pathway for them to move in that direction.

You talk a lot about your faith in your blog. Walk me through this faith and how has it helped you?

Being Christians has had a huge impact on our view of money. We believe that ultimately God provides for all our needs. We also understand that God has given us our income. We are stewards of it, not only to meet our own needs but also to reach out beyond our own family and impact the lives of others. Many times, when goals seemed insurmountable or stress mounted, my husband and I would take to our knees together and pray for help and for guidance. Having a frame of reference which includes a Divine impartation of strength has been absolutely critical in every area of our lives.

Talk to me about a time you face something really challenging and how you overcame it?

Probably the biggest hurdle we have ever surmounted was paying cash for our home. In the fall of 2008, at 3:30 pm, three of my children had just come inside from playing in the front yard. At that moment, a drug dealer ran through the front yard, closely followed by the police. This was not the first time that chaos had erupted in our neighborhood. Sadly, gunshots and break-ins were becoming all too commonplace. My husband looked at me and wordlessly mouthed, “When can we move?” I did the quickest calculations I had ever done in my life!  Here’s how the situation looked on paper.

We owned our current home.

We had some savings.

My husband made $40,000 a year.

We needed an additional $60,000 to move to a better neighborhood.

We gave ourselves two years to save money. If we couldn’t eat it or wear it, we didn’t buy it. We cut every penny possible from our already tight budget. Every extra dollar that came into the house, went into the “house fund”. We communicated more effectively than we ever had in our married life. We prayed as a family every night and thanked God for making a way where there seemed to be none. We grabbed onto that great, big, nearly impossible goal with both hands and refused to let go!

Twenty months later, we had saved 37% of my husband’s income. In August of 2010, we paid cash for a three-bedroom, two-bath, brick home in a very good neighborhood.

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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.