Women and personal finance is a vitally important topic. It impacts far more than just individual bank accounts. Financial literacy is no longer a luxury — it’s a necessity. Women need to empower themselves, as they face unique challenges such as wage gaps, longer life expectancies, career interruptions, and caregiving responsibilities. This makes financial empowerment not only desirable but essential. In this post, I am going to equip you with the tools, knowledge and confidence to make informed financial decisions about education, relationships, children and retirement. This will result in a more equitable and prosperous future.

How to Empower Yourself While in University or College

College is one of the most transformative stages in a woman’s life. The lessons you learn, the relationships you build, and the choices you make during these years shape not only your career but also your confidence and independence.

While college is often seen as a time for academic achievement and personal discovery, it’s less commonly viewed as an opportunity for financial empowerment. That’s understandable—many students are already managing tuition fees, part-time jobs, and daily expenses. But here’s the truth: gaining control over your finances now can set you up for long-term success and freedom.

Here are eight smart ways to empower yourself financially while you’re still in school:

Choose How to Finance Your Education Wisely: Before signing that student loan agreement, take time to explore grants, scholarships, bursaries, and part-time job opportunities. Each choice impacts your financial future. The less you borrow, the more freedom you’ll have after graduation.

Create and Stick to a Budget: A simple budget can be a powerful tool. Track your food, rent, transportation, and personal expenses to avoid overspending and unnecessary debt. Free apps or a simple spreadsheet can help you stay organized and mindful.

Balance Work and Study Thoughtfully: Part-time jobs and internships can provide income and real-world experience, but they also require time and energy. Make sure your work commitments complement your academic goals—not compromise them.

Start Building Your Credit Early: A solid credit history opens doors. Use a credit card responsibly—pay it off on time and in full. This builds your credit score, which helps when you’re applying for loans, rentals, or even jobs after college. It’s also a great way to learn financial discipline.

Choose Accommodation That Matches Your Budget: Living on campus, sharing an apartment with roommates, or renting a place on your own—each option comes with financial and personal trade-offs. Consider both the cost and the lifestyle that suits your needs.

Invest Early: You don’t need a fortune to start investing. Putting even a small amount into a TFSA or Roth IRA builds your financial literacy and takes advantage of compound growth. The earlier you start, the better your long-term outcomes.

Spend Mindfully on Non-Essentials: Peer pressure and social media can make overspending feel normal. Learn to differentiate wants from needs, and don’t be afraid to say no to unnecessary spending. Financial boundaries are part of self-care.

Evaluate Further Education Carefully: Graduate school, diplomas, or certifications might increase your earning potential—but they also often come with more debt. Make sure your decision is strategic, not automatic. Do the math and weigh the long-term benefits.

Empowerment isn’t just about career success or academic accolades—it’s also about having the confidence and knowledge to take control of your finances. The habits you build now will serve you for a lifetime. By being intentional with your financial choices, you’re not just surviving college—you’re thriving, planning, and building a prosperous future.

Women and Personal Finance During Your Early Career

The early career stage—typically between the ages of 22 and 30—is a time of growth, change, and opportunity. For many women, it marks the transition from student life to financial independence. You’re building your professional identity, navigating workplace challenges, and laying the foundation for long-term goals.

While this stage can feel overwhelming, it’s also the perfect time to develop smart financial habits that will serve you for life. Here’s how to take control of your money and empower yourself during these crucial years:

Create a Budget and Manage Cash Flow: If you didn’t budget during college, now’s the time to start. Track your income and expenses, categorize spending, and prioritize needs over wants. Use budgeting apps or simple spreadsheets to stay accountable. Building smart spending habits early makes a big difference in the long run.

Build an Emergency Fund: Aim to save 3–6 months’ worth of living expenses to create a financial cushion. Life is unpredictable—job loss, medical emergencies, or sudden moves can happen. An emergency fund gives you peace of mind and flexibility in uncertain times.

Manage Student Loans and Education Debt: Don’t ignore your loans—know your repayment options and avoid defaulting. Consider refinancing if you have high interest rates. Make consistent payments, even small ones, to reduce stress and build financial momentum.

Understand Credit and Build a Strong Credit Score: Your credit score matters more than you think—it affects your ability to rent an apartment, buy a car, or even land certain jobs. Pay your credit card bills on time, don’t max out your credit limits, and avoid taking on unnecessary debt.

Start Investing for Retirement Early: It may seem far off, but retirement savings should start now. Contribute to employer-sponsored plans like a 401(k), RRSP, EPF, or NPS, depending on where you live. Always contribute enough to receive any employer match—it’s essentially free money.

Choose the Right Insurance: As you become financially independent, protect yourself with the right insurance:

• Health insurance to cover medical costs

• Disability insurance in case you can’t work temporarily or long term

• Life insurance if others rely on your income

Set Career and Financial Goals: Think both professionally and personally. Define short-, medium-, and long-term goals like buying a house, starting a business, traveling, or pursuing a degree. Having clear goals keeps you focused and motivated.

Negotiate Your Salary and Understand Your Benefits: Know your worth—and ask for it. Learn to negotiate your salary and review the full compensation package, including health benefits, paid leave, bonuses, and retirement plans. Don’t leave money or perks on the table.

Learn to Invest Beyond Saving: It’s not enough to just save—grow your money through investing. Learn the basics of mutual funds, ETFs, stocks, bonds, or robo-advisors. Starting with low-cost index funds is a great way to begin without taking on too much risk.

Maintain Financial Independence: Even in committed relationships, it’s important to keep some financial autonomy. Maintain your own bank account, credit card, and understanding of your financial situation. Independence brings confidence and security.

The early career years are more than just about climbing the professional ladder—they’re about setting the tone for your financial future. By developing smart money habits, making informed decisions, and advocating for yourself, you’re laying the groundwork for a secure and empowered life. Take control now. Your future self will thank you.

Personal Milestones & Mid-Career Development

Mid-career is a pivotal time for women and personal finance—often marked by peak earnings, growing responsibilities, and shifting life priorities. Making strategic financial decisions now can set the foundation for long-term security and independence. Here are the top financial moves to consider to empower yourself:

Boost Retirement Savings: Maximize contributions to retirement accounts like a 401(k), IRA, or RRSP. Take advantage of catch-up contributions if you’re 50 or older.

Eliminate High-Interest Debt: Prioritize paying off credit cards and personal loans to improve cash flow and reduce financial stress.

Invest Wisely: Diversify your portfolio, rebalance annually, and consider additional income streams like real estate or dividend-paying stocks.

Plan for Children’s Education: Open a dedicated education savings account and explore scholarships and grants early.

Define Financial Goals: Set short- and long-term financial objectives. A clear roadmap helps avoid lifestyle inflation and keeps spending in check.

Update Estate Plans: Ensure your will, power of attorney, and beneficiary designations are current and aligned with your wishes.

Pursue Financial Independence: Keep personal accounts, build credit in your name, and invest in upskilling to stay adaptable and empowered.

Consolidation & Leadership

Your 40s and 50s are often considered your peak earning years—but they also come with significant responsibilities. Whether you’re raising teenagers, caring for aging parents, navigating divorce, or planning for retirement, this is a critical time to take control of your financial future. For women, especially, this decade can be empowering—if approached with strategic, informed financial decisions.

Continue to do everything as mentioned earlier. I would recommend updating your will and estate plan. If you don’t have an estate plan, create one. If you do, update it—especially after life events like divorce, remarriage, or children becoming adults. The update needs to include a will, durable power of attorney, healthcare proxy and beneficiary designations.

In terms of women and personal finance, this is a season of powerful transition. Whether you’re considering a career change, starting a business, or retiring early, build a financial plan that supports your vision.

Pre-Retirement & Empty Nest Phase 

During the pre-retirement and empty nest phase—often occurring in a woman’s 50s to early 60s—financial planning becomes especially critical. Women, in particular, face unique challenges due to longer life expectancy, potential career breaks, and often lower lifetime earnings. The link between women and personal finance is crucial as it is time to review retirement readiness.

Retirement Readiness: Estimate retirement expenses based on lifestyle, healthcare, travel, and housing. Use retirement calculators or consult a financial planner to assess if savings are sufficient. Consider if part-time work or a later retirement age is needed to close any gaps.

Downsizing or Relocating: Decide if you should sell the family home, downsize, or move closer to amenities/family.

Helping Without Hurting (Financially Supporting Family): Set boundaries if helping adult children or aging parents.

Social Security / Government Benefits Strategy: Understand when and how to claim government pensions (e.g., CPP/OAS in Canada, Social Security in the US).

Reassessing Investment Strategy: Shift from aggressive growth to a more balanced or income-producing strategy.

Retirement and Legacy Phase 

Women and personal finance are unique as women live longer, have gaps in lifetime earnings and caregiver responsibilities.

Income Planning: Choose your withdrawal strategy wisely.

Health Care Planning: Assess insurance options or allocate funds for potential long term care needs.

Legacy Planning: Ensure the will is current and choose a reliable person to be your executor. Look at a living or testamentary trust to avoid probate. Consider give to a charity of your choice.

Women and personal finance are linked for women because of their longevity, solo aging, earning gap and caregiving roles.

The post Women and Personal Finance: Smart Moves for Financial Empowerment appeared first on Four Columns of a Balanced Life.

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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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.

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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