Brian McAuley is a senior sales executive in the IT industry.  I sit down with him to get some advice on how to be successful in sales.

Brian, please tell my audience a little about you?

I’m a husband of Jenn for over 23 years, and a father to 3 boys ranging from 12 to 20. I’m active in my community by serving at my local church.  I chair the board at the Alzheimer’s Society of Durham Region, and serve as a director of another charity board.

Professionally I’m a technology sales leader with over 20 years of experience who has enjoyed selling industry and technology solutions at the boardroom level across various verticals. I try to maintain a reputation as a collaborative leader who builds trust with clients, partners, and colleagues. I’ve served in various senior business development and management roles at IBM for over 12 years, led teams at Bell Canada, completed the sales turnaround in a software company specializing in healthcare solutions, as well as took a sabbatical from corporate to re-focus a not-for-profit.

What are some of the qualities one needs to have to be great at sales?

First off, you need to be a good listener.  Far too many salespeople fill the air with their own talking, but the sales profession is all about understanding needs. Customers need to know that you genuinely care, and have their best interests in mind.  Secondly, you have to be good at execution, meaning, you need to have a plan, and be able to be organized and intentional about getting things done.  Thirdly, you need to work well with others and recognize how to leverage the strengths of others.  I truly believe in the saying “if you want to go fast, go alone but if you want to go far, go together”.  Success is never achieved alone.

You worked in the non-profit and then came back to the corporate world.  How was that experience?

Making the transition to a different sector was both rewarding and challenging.  Taking the assignment was a risky one, but I’m grateful for what I learned, and for what I was able to contribute.  There are many transferable skills from one sector to the other, but business disciplines need to be applied differently in the not-for-profit (NFP). There is rigor in business that is not as easily digestible in NFP. In business, it’s all about results and metrics. In NFP, metrics are important, but the mission and relationships take precedence.  The velocity with which you can accomplish things in business, can’t always be achieved in the NFP sector – simply because the culture is not the same.  Reaching agreement through consensus is vitally more important.  The personal rewards received in changing or saving a life can’t be matched.  Great experience.

You talk a lot about approaching everything with abundance. Please explain?

We live in a world where, generally, everyone holds the belief that more is better. With that belief, we carry with us, thoughts that repeat in our heads saying “if I just had more X, then life would be easier”. If you had more in your bank account, a bigger house, a better car, more education, less stress, etc.  When we look around at others, we begin to feel inadequate.  I latched on to a saying years ago that said: “Comparison kills contentment”. On Monday, you can be completely thrilled with your “new to you” 3-year-old used car, until Ken and Barbie drive up next to you at the stoplight in their brand new convertible.  Or, you’re so proud of losing five pounds, until the next person loses ten.

Begin or end each day by being thankful for the details of what you’ve been blessed with.  Getting started is the hardest, but after a few weeks of writing a couple down each day, you will start to look at your world differently, and realize how much you actually have, without even looking at physical things.  You will start to look at relationships as your assets, the gift of encouragement that someone gave you, or the feeling you got for being able to help someone else out in your day.  Your abundance mindset will have you starting to look at the world not by what you don’t have, but by what you have and what you can give to others.  Oftentimes, we don’t recognize our unique gifts – a special skill, a piece of knowledge, undivided attention, or an encouraging word.

How has being a husband and father changed you?

When you become a husband, you transition from only thinking about your needs, to thinking about the needs of your spouse. When you have children, you transition further again and gain a greater sense of responsibility to not only provide physically but emotionally and spiritually for your whole family.  All the investments made in you now need to be imparted to others. Your life is now intertwined with others. Like a new recipe you’re trying for the first time, all the good (and the not so good) come together in a big mixing bowl with the strengths (and weaknesses) of your spouse, to form a new mixture. To make the new recipe work, you need to play with the ingredients. To make it all work, there becomes some give and take, and the ability to say “I’m not perfect, you’re not perfect, but together we are much better”. So, being a father and husband has humbled me and made me more grateful for my family who makes me a better version of myself.

Give my audience some sane financial advice?

I believe that making manageable changes, consistently over time, delivers the best results.  Someone once said, “It takes at least 20 years to become an overnight success”. Give away 10% of your income to help others and the charities you are most passionate about. Save 10% of what you make, consistently over your career.  But do the first two before you spend on yourself.  Often time, we set goals that are too big and fail.  Small sacrifices, consistently over time, pay big dividends in the long run.  Seek wise counsel. Only invest your money with someone who makes their money not by making a commission on what investments they sell you, but by the returns and the growth in your portfolio. Don’t carry a credit card balance. Buy your first house as early as you can. Learn to deny yourself luxuries until the staples are in place.

Tell me a good sales joke?

Ha – I actually respect your readers too much to share a sales joke.  I have yet to hear one that isn’t really corny.

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

You create balance by putting priorities in their place and allowing everything else to fit around them. Priorities are established based on your values. For example, if I told you that my faith was important to me, but I never made it to church because of sports, would you say my priorities were in line with my stated values? Probably not.  I balance my life by prioritizing what I value and being intentional through my goals and actions. My faith is important to me, so I make sure I start each day by reading scripture and spending time in prayer.  I do it not because anyone says I have to, but because I need that time in order to stay connected to my faith, which I value so much.  I value my family, so I spend a lot of time with them. I value financial stability, so I make sure I save, and I don’t overspend, but I make sure I enjoy the fruits of my labor. Food – I don’t know what to say about that. Food for me isn’t important unless it’s shared around a table with those I love.

The post Sales as a Career appeared first on Four Columns of a Balanced Life.

Introduction

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

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

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

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

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

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

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

Save on Car Insurance

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

Save on Cell phone, cable, internet

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

Hair color for Debbie

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

Cutting grass

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

Save by Working from home

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

Cooking at home

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

Cut the non-essentials

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

Refinance, consolidate and lower your rates

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

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

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

The post Tips on how to save money and fight inflation appeared first on Four Columns of a Balanced Life.

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

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

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

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

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

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

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

Meeting potential clients

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

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

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

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

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

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

I ring the doorbell and they welcome me.

Zero Savings

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

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

Their face completely changed. They had zero savings.

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

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

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

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

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

How to save money

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

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

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

I recommended that he convert them to electronic shares.

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

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

Conclusion

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

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

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

The post Its Not How Much You Make But….How Much You save appeared first on Four Columns of a Balanced Life.

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.

John joined Brian Gribben Insurance Planning after spending 6 years as a mortgage agent providing customized mortgages based on the unique needs of his clients. John’s financial experience dates back several decades managing a national sales force.

In just 3 years in the business, John achieved the “Elite Member level of the President’s Club”. This level was awarded to only 15 out of 2,000 advisors across 5 provinces in Canada for their performance in 2017.

His core values throughout his career are based on honesty, integrity, and responsibility toward the people he serves. In his role, he helps people achieve their financial dreams through a well- structured and strategic financial plan.

I ask John questions on having a financial plan, estate planning, life insurance, having a will, household budget, his role, and some practical tips on how to manage our finances.

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

Without a financial plan, it’s like flying an airplane, without radar or the instrument panel to give you direction and your destination.  You can’t depend on hope to get the result and the outcome you expect. A financial plan must be strategic and will evolve as you go through the different stages of one’s life.  A plan is fluid and will be able to respond to all life events without affecting your lifestyle.  My role is to help people develop a sound strategic financial plan and guide them through it.

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

Estate planning is important to ensure you have taken care of all your financial responsibilities that will be carried out when you are no longer in this world.   It will ensure that whatever wealth you have accumulated over your lifetime, is distributed properly according to your will and with minimal tax implications. If not done properly the government will be dealing with the estate.

Why is having life insurance important?

Life insurance protects your family and the lifestyle your family has been accustomed to during your living years.  Without it, you expose your family to either utilize the assets you have accumulated, or if limited assets are available, their lifestyle will dramatically change.  It provides tax-free money to your family and/or beneficiaries upon your death.

There is however a big difference between term insurance and permanent insurance such as Whole Life or Universal Life.  Both serve a purpose but permanent life creates a more favorable outcome late in life.  Term insurance becomes so expensive later in life that most people can no longer afford it and they cancel it leaving all the deposits with the insurer.  The other potential outcome is you might outlive the insurance and once you have reached 80, Term insurance is not available and again all your deposits, stay with the insurer.

What is your opinion on having a will? 

Not really for me to comment, but you want to make sure you have one to ensure your assets are handled according to your wishes.  It is part and parcel of your estate planning.

What is your view on having a monthly household budget?

Definitely a good option to understand where your money is being spent relative to the income you bring in.  It helps you manage your expenses and allocate it according to your goals.

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

Manage your debt!  If you have bad debt, work at making it a good debt, and if you have a good debt work at making it better.  Always ensure you save 10 to 15% of your gross income annually.  Ideally, plan to have an emergency fund in the event of a job loss, up to 6 months of income would be a good emergency fund.  You should also protect your deposits in the different financial vehicles you might use.  Disability Insurance, such as an income replacement, is a great idea.  Critical Illness should also be considered.  The waiver of premium in a life policy is a good idea to have and it is relatively inexpensive.

What is your role as a financial advisor with BGIP?

I’m a self-employed person who works with BGIP (Brian Gribben Insurance Planning) to provide clients with the best possible financial services through the development of a strategic financial plan.  We use a very unique process to help clients increase their income in retirement and identify where they are letting money get away from them, unknowingly.  There are about 24 of us in Canada that use this process.

If someone does not have any savings how should they start?

Putting money aside in a TFSA would be a great start.  At the moment, if someone has never contributed to a TFSA they have $63,500 contribution room to invest.  You can start as small as $50/week for example and continue to do this for 40 years at an annual interest rate of 5% would produce $329,783.  The miracle of compounded interest can create significant wealth.

You talk a lot about keeping your money, walk me through this?

Basically, while you are working you want to make sure your money is well managed and used for the right things in life.  Saving money is one thing, investing it is another.  In many cases we save money but it is really not working for us now and for the future.  Properly invested may mean the difference between a comfortable retirement versus a challenging retirement.  Make sure you have a plan for your money and how it will help you and your family today and in the future.

I say to people once they retire, they will have a new job title;  Asset Manager.  You will have the responsibility to manage your assets in retirement as long as you have planned for it during your working years.  In our life, we have a lot of information on the internet, books, magazines, etc. telling us to save money but very few talk about how to enjoy that money in retirement.  Too many people are eager to pay off their mortgage and will make incremental payments to their financial institution, which a lender will be more than happy to receive.  That money given to the lender in excess of what the lender is expecting is not working in your favor.  Paying your house quickly doesn’t increase the value of your house.  That money could have been used to enhance your financial wealth and ensure you get the benefits from it and not the lender.  This is called “Lost Opportunity Cost”, meaning the extra money given to the lender could have generated interest for you.

Give me some advice on being a great husband, father, and managing household finances?

Your life should be built around these 4 principles: Faith, Family, Fitness, and Finance. In that specific order and when this is done accordingly you will have achieved some well-deserved Freedom.  As a husband, my faith and trust in God are key.  Without Him, life would be different for my wife and me and consequently our family.  God has entrusted us with His money, and we need to be good stewards of that money.  I always think of the parable of the Talents in Mathew 25.  As a father and grandfather now, I need to make sure our kids and grandkids consider different factors before making a significant financial decision.

The post John Knox: Personal Wealth 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.

The post Money and Holidays appeared first on Four Columns of a Balanced Life.

Liz is the creator behind Minding My Thirties, a financially focused blog where she discusses the necessary evil that affects us all, money, debt, and finances. For her, money doesn’t have to be so evil. In fact, money can work for us. It can actually be the tool that lets us spend more time with our family, travel the world, or learn a new skill. It can give us time, which is really freedom after all.’

Liz’s goal with her blog is to ‘understand how to better harness’ money. She got her Eureka moment when her credit card got declined for a $7 beer. She had $70,000 in student loans and consumer debt. She researched money management and personal investing to pay down her debts and also save for her future. She became more aware of her personal finances, gained control of her money, and became debt-free at the age of 30.

Just like families evolve in our 20s, 30s, 40s, and 50s, so do our finances. I interviewed Liz on finances in our 30s.

Liz, a pleasure to have a fellow financial blogger on Four Columns. Please tell me a little about yourself.

Thanks, Jerry! Well, I’m a 30-something-year-old American expat living in Germany with my (German) partner, Timo. We left the States, Chicago to be specific, in January of 2020. Despite the global pandemic, we’ve been settling well and embracing a slower lifestyle here in Germany. Back in Chicago, I was working for a high-end interior design firm as a Designer, collaborating on residential projects all over the country. I’ve always been passionate about design in any realm possible, from graphics to interiors to website design. I think what I love most is that design is much like storytelling, which is probably what piques my interest when it comes to blogging.

But after finishing my graduate degree in interior design, I found myself in about $70K of combined student loan and consumer debt. I spent most of my late twenties working to get out of debt as quickly as possible. I also dedicated a good chunk of time towards understanding finances and learning how to manage and invest my money for the long haul. Somewhere along the way, I discovered minimalism and the FIRE (Financial Independence Retire Early) lifestyle. I was hooked! I decided to start blogging about personal finances as a way to document everything I was learning and to connect with others going through the same experiences when it comes to money.

Since then I’ve focused my time on prioritizing my personal values, financial goals, and building quality relationships while removing the excess from my life. While tackling my finances and adopting a minimalist lifestyle I’ve become more mindful of how I spend two of my most valuable resources: money and time. My long-term goal is to be able to remove money from the equation altogether by achieving financial independence. In doing so, I’d like to be able to make decisions based on where I see value and opportunity – and not just a paycheck.

I love your blog and graphics. What made you decide to become a financial blogger?

Thank you! The graphics are a lot of fun to put together. It was kind of the perfect storm with the development of the blog. As I mentioned in my backstory – I spent a ton of time researching personal finances and climbing out of debt myself leading up to our move to Germany. I also knew I would not be able to legally work for a while when we got to Germany. While I do not necessarily intend to make a living off the blog (although a girl can dream, right?), I knew it would be a great opportunity to start one seeing as I had the time to do so.

I also thought it would be a great way to document everything I learned about personal finances. And in doing so, I could offer help to others, which has been the most rewarding part. Most people think they have to have some unique story or niche to start blogging. That’s not necessarily true. Sometimes the best bloggers are the most relatable ones. The ones who have stories and experiences just like you and I. These are the people we can easily connect with. I thought my story and prior relationship with money was very relatable: I had debt. Made a modest salary. No real assets to my name. I didn’t understand how money actually works. Nobody taught me about finances and I didn’t pay someone to handle it for me. Everything I achieved was through hard work and persistence with my financial education. I thought – if I could do it, surely someone else could.

I’d love to be part of the reason someone better understands their finances. I’d love for others to experience this awakening – or – mindfulness when it comes to finances. Because once you’re able to fully harness your money, so many other opportunities open up.

Talk to me about how women can be empowered by having control over their personal finances?

I love this question because taking control of my personal finances has been beyond empowering! Being able to control your money, instead of it controlling you, is freedom. Zero debt and a comfortable saving in place allows you to capitalize on opportunities and take some calculated risks (like moving halfway around the world with no job  ).

When I was about 5 or 6 years old my parents divorced. Leading up to the divorce my mom never really built much of a career as she was focused on taking care of my brother and I. In fact, she was just a semester shy of finishing her masters in creative writing when she became a mother. Of course, you can’t fault my mom for putting us first before her career and finances. Being a mother is in and of itself its own job, and in many ways, being a stay-at-home mom today makes financial sense for some couples.

But throughout much of my childhood, I watched as my mom had to build her career, and finances, from the ground up. Divorce happens, of course. But sadly, it’s usually the women who face financial risk when it does. They are the ones who put their careers and earning potentials, on hold while raising children. And they are the ones that go back to work with a dormant skill set and reduced earning (and a wage gap) after years off. But watching my mom come full circle 25 years later as she is about to retire next year has been an exemplary achievement. One that I admire and respect. It empowers me to continue taking an active approach with my finances. It’s a reminder to pay myself first and make sure my financial future is taken care of regardless of whether or not I get married and have children. I think seeing this type of achievement, especially by other women, can really empower more women to take an active role in their finances.

Oh, and by the way, a few years ago she also finished that last semester of grad school and finally earned her masters! I am very proud of my mom!

How do men and women approach finance differently?

Oof, that’s a loaded (great) question! I think there are many different ways men and women approach finances. But for the sake of keeping this brief, I’ll focus on the investing side of things. Research shows men tend to show more interest and knowledge when it comes to investing. Men also tend to express more confidence, leading them to riskier investments, which ironically means that the women who do invest are actually getting slightly better returns.

But I think a lot of this psychology might be rooted in our cultural norms and traditions since the beginning of mankind. Women and men always had very separate, independent roles from hunter-gatherers all the way until now in modern society. And to some extent, due to biological differences, men and women will continue to have separate roles. But when it comes to finances, men used to dominate the workforce not that long ago. Because of this, I think for most men it was a point of pride, of ‘macho-ness’, to be able to provide and handle the finances. However, I think this is changing now that more and more women are earning a living for themselves or in some cases – becoming the breadwinner of the family! Hopefully, it’s not long before we have more women taking an active, vested role in their finances.

Money is an emotional thing. People do not like to talk about it. Money can also be used to satisfy an urge by shopping or binging on food. However, money can also be used for many good things. Please explain?

Absolutely. There’s a saying that money is a necessary evil. But I’d like to change that mindset. It doesn’t have to be so evil. We just have to know how to better harness it. Money – or at least the opportunities, experiences, and even things money can buy – brings lots of joy to people. It can also solve or ease a lot of problems in the world. One thing I’d like to see more in the financial community in discussions around charity or sustainable spending: how and where we put our money can really make an impact. I’d like to see more people incorporate a dollar amount for charity in their retirement plans or find ways to be sustainable with their dollars: invest in socially responsible companies or shop at local stores. This is something my partner and I are now starting to look into. We’d like to minimize our carbon footprint and find ways to not only do so in our daily lifestyle but ways to financially support the efforts around fighting climate change.

Money, money, money when is it enough?

Ahh, that’s the million-dollar question, isn’t it?! I believe there are three answers to this question, only two of which I can provide data.

There’s the salary, or how much money we need now to be happy now. For most, it’s enough to cover our essentials and pay off debts with some leftover for discretionary spending. According to researchers at Purdue University  the ideal individual income for optimal life satisfaction is $95,000 per year. But our emotional well-being is satiated with just $60,000-$75,000. Of course, this varies across regions, cultures, and individuals.

The second way to answer this question, and the one that is often difficult for people to understand – is how much money do we need in retirement? In fact, only 1 in 10 Americans actually understands how much they need to save for retirement. Our financial education system is failing us!

Here’s how to calculate how much you’ll need in retirement. First, determine your annual spending. This is how much you spend on everything for an entire year (rent/mortgage, car, food, clothing, travel, etc.…). Multiply this number 25 (for a safer, cushier retirement, calculate by 30). If you’re spending $35,000 per year, you’ll need approximately $875,000 ($35,000 x 25) to retire. This also assumes that you’ll withdraw around 4% or less from your investments in retirement. And of course, variables such as asset allocation and the current market will affect the success of this retirement portfolio. This method is not full-proof but it’s a great jumping-off point to get you started. It’s something that should be re-evaluated every year. If your annual expenses go up, your retirement number will too. This is why keeping your lifestyle in check is so important.

And finally, there’s the number of how much money YOU – personally – need to be happy, something I cannot answer. Many people will spend their off-hours ‘hustling’ to earn more with a financial goal in mind: to pay off debt, save for a child’s college or a down payment on a house. I think these are great, commendable reasons to maximize your earning potential. But there are many who approach money with an insatiable mindset – making more just for the sake of making more, or worse – making more to fulfill lifestyle creep. This is dangerous territory. If you don’t understand how much money you need then no amount will make you happy.

How are finances different when you are living alone compared to living with a partner or in a marriage?

I think when you are living with a partner or in a marriage, it’s incredibly helpful to share a financial vision. This can be tough to do as you may have very different views on how to spend and invest money. One of you may be making significantly more than the other, which can also add a point of contention. There are lots of variables at play here. So, I think the key is finding common ground and compromising.

There are also some couples who choose to keep their finances completely separate and split everything down the middle or proportionately to what they make.  This can be a valid approach when you have strongly opposing views on finances. But I still think it’s important to find a common goal or outlook when it comes to shared expenses and work on it together – after all, that is what being in a partnership is all about.

Like most things in life, there’s more than one way to do something. The same goes for money. So, it’s important to keep an open mind and hold judgment when discussing finances with your partner. The best thing you can do is talk about your financial goals early on in the relationship and maintain regular discussions – or check-ins – about your finances.

Of course, living on your own means you are accountable for all the financial decisions. This can be empowering and freeing, but of course, so can being on the same financial page as your partner and having twice the income working towards a shared goal!

I am teaching my daughter about money. I also went to the bank and opened an account for her and gave her a debit card. How important is financial literacy?

Super important! I believe financial literacy should be part of every high school curriculum! That’s wonderful that you are starting her early with a debit card and getting her used to the concept of income versus expenses. I say it’s never too soon to start teaching your children about money.

I never truly understood just how interest on a credit card worked, which is why I found myself in $10K worth of consumer debt. Learning to be fiscally responsible is not usually something that comes naturally to us. After all, money is a man-made construct. There’s nothing innate about our users with it. We may have certain personality types that make us more likely to be savers, frugal spenders, or over-spenders. But many times, these are learned behaviors. Which means anyone can learn how to better manage their finances.

The sad part about our lack of financial literacy is that, without it, our financial decisions could follow us for years or even decades into the future if we don’t understand how money works. Financial literacy is a topic I’m particularly vocal about on my blog and social media.

What are some of the biggest challenges your generation is facing with regard to money?

In many ways, our generation has it easier than those before us. The power of the internet makes not only obtaining knowledge just a keystroke and click away, but so is investing and saving. We have an app for everything. Apps that will itemize our budget for us, automatically roll over our change on purchase into a savings account, or buy index funds. It couldn’t be easier.

However, with the internet comes a lot of noise and distraction. We are constantly being shown ways to consume instead of saving. We see dozens of sensationalized stories every day of how others accumulated wealth in passive and ‘simple’ ways. We see influencers living large doing the bare minimum. I think this can be very de-motivating. To be in constant contact with unattainable, and sometimes falsified, lifestyles and overnight success stories warp our vision of reality.

We are also becoming a culture of instant gratification because of the internet and things like Amazon Prime. Many of us give into immediate wants, such as buying the latest trends (even if we can’t afford it), instead of stashing away a few hundred dollars a month to save for our future wants. Our priorities are out of touch and I really believe the internet has a huge impact on that.

I have always saved 10% of my paycheck. Pls. comment?

10% is a great start! But you should definitely try to increase that. Here’s why: Let’s say you’re making $50,000 a year (after taxes). Saving 10% equates to $5,000 a year, which means you are spending about $45,000 a year. To maintain this lifestyle in retirement you would need about $1,125,000 invested. If you started investing $5,000 a year at 25 years old, you’d still fall short of this goal after 40 years by almost $100,000! This math scales. So even if you are making $100,000 per year but still only saving 10% (or $10,000), you’ve fallen into lifestyle creep and are now spending $90,000 a year. To maintain that lifestyle in retirement you would need about $2,250,000 in the bank. A 10% savings rate would get you to about $2,060,000 – still short!

A more sustainable savings rate is between 15-20%. Try increasing your savings rate by 1% every 3-6 months while reducing other unnecessary expenses. By gradually building up your rate, you’re less likely to feel like you’re pinching pennies or making drastic reductions in your lifestyle. When I first started my financial journey, I discovered bloggers who were saving in the vicinity of 75-80% of their income! I felt dwarfed by this in comparison as I only saved around 5-8%. But, little by little, I managed to cut the spending on things I really didn’t care about and save more. In doing so, my partner and I reached a savings rate of 52% while living in the States. Of course, this is more extreme as our goal is to reach financial independence as soon as possible. For someone on a traditional timeline, not wanting the option to retire early, they would do just fine with a rate closer to 20%.

Finally, give yourself advice when you were a teenager and in your early 20s?

Don’t overcomplicate your finances. Debt can wreak havoc on your financial AND emotional well-being. Be careful with it. Don’t buy crap to impress people you don’t care about. Spend less than you earn. Invest the rest. Start investing now and let compounding interest do the work for you. Financial independence is great but enjoy and trust in the process. It’s truly as simple as that.

And in life: be mindful of what you do today, it matters tomorrow. Eliminate the clutter in your life – whether it’s things or toxic relationships; both will slow you down. Design a life YOU want to live first and foremost, or someone else will do it for you. Don’t be ashamed if you choose the less beaten path; this is often the most exciting and fulfilling one.

The post Money, Debt and Finances in our 30s appeared first on Four Columns of a Balanced Life.

The strength of your personal financial resources is equivalent to the quality of your financial decision-making. –Wayne Charisa

Financial success isn’t just about the numbers in your bank account—it’s about defining what truly matters to your happiness and making choices that support that vision. I first learned this lesson during my very first week at a brokerage firm on Bay Street. David Wilkes, one of the most successful advisors I’ve ever met, pulled me into his office and shared three pieces of advice that have stuck with me ever since: buy a small house, keep the first wife, and drive your car for at least 15 years.

David’s wisdom extended beyond investing—it was about creating a life of stability, balance, and intentionality. Over the years, I’ve taken that guidance to heart, refining it into a set of strategies that have helped me—and can help you—build financial security and freedom. In this post, I’ll share 15 practical strategies for financial success, from setting goals and budgeting to investing wisely and living intentionally, all grounded in lessons I’ve learned from experience and observation.

What is financial success

Financial Success is how you define what is most important to your happiness.

It was my first week at the brokerage firm on Bay Street. David Wilkes pulls me into the office and tells me ‘Jerry, I am going to give you three pieces of advice. In other words, buy a small house, keep the first wife, and drive your car for at least 15 years.’ A great piece of advice from one of the most successful advisers on Bay Street. David was great at investing his money. He was one of the best entrepreneurs I have met. As a result, I have listened to the above advice, and here are my 15 strategies for financial success.

Write down your goals

It is important to write down your financial goals. It is your blueprint and vision for your financial success for instance.

Know the difference between wants and needs. Food, shelter, heat, hydro and water are needs in order to sustain your life. In addition, wants are cappuccinos, going to the movies, vacations, and an expensive watch. Make sure needs are covered and then take care of wants.

Set short term (less than a year), medium (1 to 5 years), and long-term goals (more than 5 years). Be precise, realistic; set a time frame and a dollar amount. Write beside the goals whether it is a need or a want. Figure out the cost of each goal, how many months you need to achieve it, and then how much money you need to save each month.

Create a budget

A budget is how you will spend your money in any given year. The budget tells you how much money you will have for the things you want to purchase. In my two decades of voluntary counseling, every single person who was ever referred to me never had or followed a budget. In other words, a budget also allows you to live within your means and gets you a step closer to financial success.

Create an emergency fund

As the name suggests, this is for emergencies. What happens if you are laid off? What happens if you are in an accident? The dishwasher breaks down or you need winter tires. In conclusion,  open a high-interest account at a bank and have at least 6 months of your salary saved up in this account.

Pay off your debts 

A Globe and Mail survey in 2018 found 48 % of Canadians live paycheck to paycheck. This is a stressful situation. Is it really worth carrying credit card debt at 21% interest? Once you are debt-free, you are not at the mercy of the lenders or anyone. You are free and can live life as you choose. Imagine if you paid off your mortgage, car and student loans. That means you do not have to pay rent or mortgage payments, no car or student loan payments. You can take it easy. You can take a less stressful job or work from home or work fewer days a week.

Save 10 percent

I strongly recommend that you start saving 10 percent of the money you earn. As you get more disciplined you can save more. Above all, this is your nest egg.

Save for retirement

At some point in our lives, the paycheck stops coming. Many of us will live at least more than two decades after we retire. We will need money for this. The best thing to do is to invest in a Registered Retirement Savings Plan.

Give to charity

The National Institute of Health did research on the brains of individuals who donate money. The act of giving money to a good cause activated pleasure centers in the brain. When you give money to a charity that is aligned with your goals and values you are making a difference and impacting other people’s lives.

Be patient

Rome was not built in one day. When you buy a home, do not go and buy a brand-new car, new furniture, install hardwood, new interlock and remodel the kitchen. The extra debt will add unnecessary pressure on you. Take your time and do one thing at a time to become financially successful.

Stay away from credit cards

The average credit card debt in Canada is $2,600. Many pay only the minimum balance. That means paying 21% interest on it. Use credit cards only if you have the money in the bank account.

Do not buy on impulse

This is your biggest enemy. It can derail any plan you have for simplicity and frugality. Avoid malls and do window shopping. Stick to your goals, budget, and plan and avoid online retail.  A walk, volunteering, going to the gym, talking to a friend, or having someone over can make up for retail therapy.

If you are married, keep the first wife

Many successful married men have asked me what is the best financial advice I can give them. I always tell them to keep the first wife. Divorce messes you mentally, emotionally and financially. Keep her and treat her well.

Keep track of your spending

Have an excel spreadsheet or write down your major expenses and expenditure so you know you have the funds in your bank account.

Invest in a TFSA

If you have extra funds, invest in the Tax-Free Savings Account. You are allowed to invest a certain amount every year and you do not have to pay tax on any interest, dividend, or capital growth in this account.

Do not keep up with the neighbor

Make a promise to yourself. You will not keep up with the neighbor. Do you really need to spend $40,000 on interlock? Do you need to install an outdoor pool which you will barely use? If you have a paved driveway, is an interlock driveway any better?

Drive the car for 15 years

If you buy a new car, as soon as you drive it out of the showroom it loses thirty-five percent of its value. You are better off buying a car that is one year old. If you do decide to buy a new car, drive it for the next 15 years or at least 300,000 km before you get a new one.

In conclusion, these are some of my strategies for financial success, let me know if you are using them and how they have worked out for you.

The post 15 Strategies For Financial Success 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.

Welcome to my new series on Life Insurance For Women. In the introduction, I mentioned the reasons why women need insurance and how it empowers you.

I am going to interview Chad Viminitz from GoLife insurance   https://golife.ca/fourcolumns on the following ten topics:

1. Women are being overcharged, a lot, for mortgage insurance – what you need to know!
2. Why women talk themselves out of the life insurance they want/need?
3. How to prepare for the baby- 3 pieces to financial protection (will, mat leave savings, life insurance).
4. Is underwriting for women different?

In the fourth interview, we focus on how is underwriting for women different. It is important that women need to know about being approved for life insurance.

What is underwriting?

Underwriting is the process of assessing the degree of “risk” relating to the person applying for life insurance. Basically, underwriting answers the question:  “Are you expected to have a standard life expectancy?” Underwriting is a process that benefits individuals applying for life insurance because it results in more individuals getting coverage and premiums for life insurance being less. For example, I have a heart condition and because underwriters can get more information about health conditions today, the odds of being approved have increased.

Why is underwriting a good thing?

Underwriting is a positive part of the application process as it has resulted in life insurance becoming more affordable (ie. lower term life insurance premiums) and with more individuals being approved and getting coverage, even if there are health concerns. It can be intimidating to share one’s medical history or vitals and wait to be “assessed” but it is an important part of the application process that does not need to be feared. Having underwriting completed upfront, at the start of the application process also gives you confidence that your coverage is actually in place. Creditor insurance (ie. mortgage insurance) for example completes their underwriting post-claim – meaning after the person is dead – at the wrong time. Underwriting that is done at the beginning results in the best life insurance coverage.

Is it harder for women to get approved for life insurance?

There is no difference between the underwriting requirement for a woman or a man. Of course, men and women may have different medical issues but life insurance pricing reflects the different risks. Women typically pay less for life insurance because they have better mortality rates, ie. they live longer.

What if I have a health issue? Can I still get life insurance?

Yes! Don’t let a medical issue stop you from applying for life insurance, the worst they can say is “no”. I have a heart condition and applied 3 or 4 times before I was eventually approved. Over time underwriting may take a different view on a certain health issue, especially as technology, drugs and treatments evolve. An example is individuals who are HIV-positive can now get life insurance, that wasn’t always the case. Life insurance companies are in the business of getting people coverage, know people and expect that medical treatments and conditions are part of a normal life, they just want to know the details before approving the policy.

Can women get coverage while they are pregnant?

Yes, even though the body is going through a significant change – you can apply for life insurance while pregnant. Pregnancy can have complications that can impact one’s application, blood pressure, and gestational diabetes being two examples. If possible, it’s recommended to apply while in your first or second trimester. Getting coverage before baby arrives provides confidence that your family is protected from day one of becoming a mom.

What is involved in getting approved?

Most life insurance applications need a combination of three elements:

1. Tele-interview – answering your questions about your medical history
2. Nurses’ visit – blood and urine samples are usually required for applications over $500,00 of coverage
3. Doctor’s report – These reports are sometimes requested to clarify or gain a better understanding of one’s medical information. It is not an indication of being declined or paying higher premiums. Greater clarity an underwriter has about an applicant’s medical condition, the better chance for an application to be approved.

The requirements specific to you will depend on your age and the amount of life insurance coverage you are applying for, ie. More coverage, more requirements.

What about No-Medical life insurance products?

Yes, there are life insurance products that are guarantee your approval. These policies come with limitations, restrictions and higher costs. Non-medical policies often cost 30-40% more, limit coverage between $25,000 to $350,000 and sometimes don’t pay a claim in the first couple of years. If you are considering a non-medical life insurance policy you should read the details of the policy. Answering a few questions and seeing a nurse will save you money and provide you with appropriate protection and good life insurance coverage.

What are the most common reasons people are declined for coverage?

It’s important to note that it is a small percentage of applications that are fully rejected. It does happen that an underwriter has to make the decision to decline an application. Some of the most common reasons are:

• Non-disclosure – the individual lied or was hiding information
• Ongoing medical investigation – the individual is scheduled for more tests or procedure
• Time frame – for example, a person may have had a heart attack, drug use or cancer but not enough time has elapsed from the date of the last episode
• Dangerous Driving and license suspension
• Illegal drug use

Being declined does not mean you cannot get coverage later if the reason for being declined changes or treatment improves – apply again!

Are insurance companies trying to charge the highest premium?

Not at all. Insurance companies are competing for clients and term life insurance premiums are at historic lows. Women should feel more confident applying for a personal life insurance policy compared to creditor insurance or mortgage insurance at the bank. Women are often charged 50% more for mortgage insurance at the bank. Women who apply for a personal policy usually qualify for “Preferred Underwriting”. Preferred underwriting means you may qualify for a 10% or 20% discount if you meet specific underwriting criteria, resulting in getting the best term life insurance rates possible.

Affiliate Disclaimer

Hi there! It is my goal to be completely transparent with you both here and within our community, and so I want to let you know that certain products and links to these products on this site are affiliate links. What are affiliate links? Essentially, when you click one of those links and make a purchase, I will earn a small commission at absolutely no extra cost to you. I am deeply passionate about this site, and it is my goal to make this a place where you can come and trust that the information you are reading empowers you.

Photo Credits: AJ Yorio Samantha Sophia ieva swanson Priscilla Du Preez Jonathan Borba Hush Naidoo Samuele Errico Piccarini  Online Marketing

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