Two Financial Advisors Walk Into a Bar

If two financial advisors walked into the bar, the financial advice they give would be completely different.

Depending on the company they represent and experience, these advisors are going to offer advice on how to invest money.

What these two advisors have in common is that they both have an interest in investing people’s money to make their 1%.

This isn’t necessarily bad, this sort of financial advice benefits individuals with money to invest. These individuals are already financially healthy and can benefit from the ‘financial advisor’ bar discussion.

Those with money to invest can listen to the investors and decide where they want to invest. Everyone at this proverbial bar: the investors and the advisors, clink glasses and drink beer to the possibility of investment growth.

But what about the rest of us? Those of us that don’t have money to invest? For some of us, this is not a joke. The reality is there is no money to invest and so it doesn’t matter what type of financial advisor walks into the bar.  

There’s no money to invest. Only debt owed.

There aren’t many financial advisors that will show you how to get out of debt. This is what I do. I am a financial advisor that will help you get out of debt and create a financial plan.

I educate, enlighten and encourage you to manage your money successfully. I help with your financial journey in a different way, I advise on your financial well-being. I help you:

• Save money
• Pay down debt
• Plan before making purchases
• Create a spending plan

I call these the 4 Financial Building Blocks to a Healthy Financial Well-being. I advise on how to create a plan by using these 4 Building Blocks. I do this without using the dreaded word “budget”. Budget is a bad word. I don’t like it. I help you develop a plan depending on your lifestyle and what you want out of your life. There is no budgeting; only planning and achieving your goals.

I help put your financial health in order.

The key to a happy life requires balance life. Balance can be broken down into the following areas:

• Financial
• Mental
• Physical
• Emotional
• Spiritual

These are what I call the 5 Pillars of Health, only when the five pillars of your life are in order, will you find yourself living a focused and purposeful life.

In order to achieve balance in the 5 Pillars of Health, you first need to focus on your finances, the 4 Financial Building Blocks:

• Saving

Saving money is the main pillar and the key to a balanced life. The reason why we accumulate debt is always because of the lack of cash flow. This is why saving money no matter how small is paramount to a successful life.

• Paying off Debt

Having debt to pay off every month is like an albatross around your neck or a shackle around your ankle, you can barely move. You think about your debt first thing in the morning, all throughout the day and it’s the last thing you think about before closing your eyes. In order to break free from this, you must pay off your debt as quickly as you can. The very worst debt is revolving debt, your credit card and lines of credit. You have to break from that shackle or albatross by creating a plan to pay the debt off, focusing on your revolving debt first.

• Planning Before Making Purchases

A lot of us are impulse buyers. We buy something because we see it and we want it. It’s why magazines and candy are at the check-out at grocery stores. There’s a psychology behind this. The grocery stores are hoping that you will buy the candy and magazines and give into your impulse tendencies. You get the immediate feel-good reward of having that magazine, but at the end of the month, you don’t have any money saved because you didn’t plan.

Planning is what determines your financial success and eliminates impulsive buying behaviour. You need to determine in advance how you are going to spend your money, and on what and when.

Regardless of whether it is planning a long-term purchase or planning a two-hour shopping spree, the planning aspect of money management is the major contributor to financial success. Having a plan eliminates impulse buying, because you know what you can afford and what you’re financial plans and goals are. Having a strategic plan doesn’t guarantee your success though. Very often, even when plans are prepared, they are not implemented. It takes effort, purpose and focus. Having a goal you are committed to is the first step.

• Creating a Spending plan

The name speaks for itself. Create. You are the one formulating this plan, the choices of how and when you spend your money. It gives you a certain amount of confidence knowing you are making the decisions on how to spend your money. After creating your spending plan you feel empowered. You then make an effort to work with the financial decisions you made. It takes time to make this spending plan. You have to invest time. Managing your money without a spending plan is like going to an unfamiliar place with no GPS. We all need a spending plan in order to navigate our goals.

If you would like help with your own financial journey and goals please contact me. I am passionate about helping others with their own financial plans and will help you for free.

Thanks

Tessa-Marie

Contact me at;  tessamarieshillingford46@gmail.com

 

 

 

 

 

 

 

 

 

 

SETTING UP THOSE SPECIAL SAVINGS ACCOUNTS

Know what you want

Today I am going to share with you my number one tip, I call this tip, the power of perseverance, and staying focused on your goals. Where attention goes energy flows.

When you know what you want you set a goal. Then you do whatever is legal to bring this goal to fruition.

On my financial journey, I developed many tips to enable me to meet my financial goals.

I discovered very early in my adult life that owning only one savings account did not work for me. You noticed I said for ME that meant it could work for someone else but just not for me. It actually felt uncomfortable owning one saving account. In my mind that one savings account became a big pot of Irish stew. Everything is in there and no ingredient is able to hold its flavor. Sometimes you could taste the carrots or the potatoes and so on but generally it was that unique stew taste. It was important to me that each category of savings be distinct one from the other. In one account, this was not happening for me.

I began to search for ways to make each project separate one from the other. It was imperative for me to know how much exactly I had to spend on a particular project. Now in order to accomplish this, I realized it would require having several accounts.

While listening to the news one day, the minister of finance spoke about special accounts with very distinct names. They were: Registered Retirement Saving Plans, Home Buyers Plan, Canada Pension Plan and Unemployment Insurance. I had a moment of clarity. I realized from hearing him speak that these all have a name for a specific purpose. They are unique and had different objectives.  This method is not one pot fits all. How can I accomplish that I thought? We want a house, a car, and an annual vacation etc.

I had to be very resourceful during my journey of learning to manage my money successfully. I had to jump through many hurdles. One of those was the banking system. It had not yet come to terms with women making financial decisions on behalf of their family.   The push back was difficult to deal with when it came to interacting with men working at those financial institutions. The women working in similar positions were worse. They thought that we were breaking our marriage vows if we came to the bank with any financial plans without our husbands. My husband detests going to the bank.

Empowered and focus with this new information I marched into my bank ready to open five new savings accounts.

When the bank officer approached me and I told her what I came in the bank to do. She looked at me like I had three heads and told me that I did not need another savings account one should be sufficient, especially since I did not have lots of money. I tried again to explain to her my purpose for wanting those accounts, but she was not having any part of it. She then said after looking at my hand does your husband know you are doing this? I don’t know I replied, my husband does not speak, he can’t see and he can’t hear. She sat there starring at me with an opened mouth. I calmly stood up with a smile on my face and left.

Dejected, I felt a little bit down but not defeated. I went home and thought what would the nuns do? The nuns taught me from the age of three, one of their strongest lesson was never to give up, when the door shut try a window, or when you face a wall stop, look at the wall until you find a chip or crack and then start to dig. So I started to wonder what I could do. After three days of intense contemplation I had this idea.   What is stopping me from opening one savings account at all five major banks or trust companies? With that thought I became hopeful and energized.

The following Friday, I choose the intersection of St Clair avenue west and Yonge Street, close to my office. All five banks were at that intersection. I walked in bank one, opened an account and off I went to the other banks. I made it to the fifth bank at 2 minutes to six and left at 6:15pm. Now I had my five accounts. Mission accomplished.

With the accounts now opened it meant I had to visit five banks every week to get my deposits done. Sometimes it was at lunchtime or Friday evenings. It was a little time consuming. When my balances began to grow I felt amazing, I would skip to the banks look at my passbooks and smile.

Eventually when the banks became more competitive they started letting you hold more than one savings account.   Also, automatic transfers gained popularity. I moved them all to one bank. Set up automatic transfers. Life was easier. No more walking across to do my banking.

Over the years, I have shared my method of purposeful savings with many, many others. I am thrilled to report I have witnessed hundreds of success stories.

Sometimes I do get a story from someone who has had a similar experience with someone at his or her bank. The most popular questions the bankers ask, is why do you need more that one savings account. I am pleased to say that some bankers when they hear the reason and purpose they in turn have introduced this method to their clients.

If you ever encounter someone with all the reasons why you do not need another savings account, thank them for their opinion and move on to another bank.

To be financially successful you must never give up. Look and learn from everyone. Most importantly, stay focus on your goal.

Thanks

Tessa-Marie

Tessamarieshillingford46@gmail.com

 

How To Pay Off Your Credit Card

How to Pay Off your Credit Card

With this post, I promise that I will show you how to pay off your debt before January 31,2018.

Last week I showed you how to save money for the Holiday season. Many of you wanted to know why I did not give a tutorial on paying off the debt instead.

My reason for showing you how to save money first is because we are told to pay ourselves first. By saving money you are honoring yourself.

The first step is to get familiar with the amount you owe. Do not guess the amount, look at the bill or bills and total the amounts.

For example, if you owe $2,600.00, the table below shows what you need to pay monthly in order to pay off your debt in 1 year. You can also see how much interest you are paying monthly, as well as your total interest paid for the year.

It’s important to pay your bills as you get paid, either weekly or bi-weekly.

Let’s use that $2,600.00 debt again plus $282.51 interest over one year. If you get paid bi-weekly, divide that amount by 26 [2,882.51/26 = $110.89] every payday.] If you’re paid weekly, divide that amount by 52 [$2882.51/ 52 = 55.43. ] Your credit card payment is monthly but you can choose to pay those amounts every payday. When you pay your bills as you get paid you will notice that your cash flow is more evenly distributed.

The reason why we incur debt is simply because of the lack of cash flow. Remember you have also been saving, so you now have cash on hand to do your holiday shopping next year.

Payment Summary Event Amount Term Period Loan $2,600.00 1 Payment $246.11 11 Monthly Payment $174.23 1

Payment Schedule Event Loan Payment Interest Principal Balance Loan 1 $2,600.00 $0.00 $0.00 $2,600.00 Payment 1 $246.11 $39.87 $206.24 $2,393.76 Payment 2 $246.11 $40.64 $205.47 $2,188.29 Payment 3 $246.11 $35.95 $210.16 $1,978.13 Payment 4 $246.11 $33.58 $212.53 $1,765.60 Payment 5 $246.11 $29.01 $217.10 $1,548.50 Payment 6 $246.11 $26.29 $219.82 $1,328.68 Payment 7 $246.11 $22.56 $223.55 $1,105.13 Payment 8 $246.11 $18.16 $227.95 $877.18 Payment 9 $246.11 $14.89 $231.22 $645.96 Payment 10 $246.11 $10.61 $235.50 $410.46 Payment 11 $246.11 $6.97 $239.14 $171.32 Payment 12 $174.23 $2.91 $171.32 $0.00 Grand Total $2,600.00 $2,881.44 $281.44 $2,600.00 $0.0

If you have any questions or comments, feel free to reach out to me.

Thanks,

Tessa-Marie | tessamarieshillingford46@gmail.com

SHOCK AND AWE

Shock and Awe

Now you have received the credit cards bills for your lavish spending in December 2016.

Wipe that frown off your face. I have a plan for you. I can show you ways to never ever find yourself in this position again.

Pick up those bills. Open them. Get your calculator and total the amount you spent during the months of November and December for all those gifts you bought. I am sure you purchased something yourself. Because, you felt that you deserved it.

What is the total? I can guess. It runs from $1000.00 to $1500.00. It did not seem like you were spending that much. Did it?. No way would you know. While swiping your credit card the totals leave your mind. You are focus only on the next purchase. Here we are the end of January and now you know.

Let us begin with the way to avoid this from happening again.

Add 10% more to your total. Then take this number and divided by the amount of times you get paid in a year.

Here is an example of someone who spent $1,500 and gets paid bi-weekly.

$1500.00 + 10% for inflation $150.00 it’s a bit high but just incase I prefer to use a 10% increase.

Formula= $1500.00 + $150.00 / by 26 = $63.46.

This is the amount you need to save every payday to enable you to have $1650.00 to spend on Christmas.

If you did not spend that much decrease your amount and follow the very same formula. Perhaps you get paid weekly then you divide by 52.

Next step go to your financial institution and have them set up an automatic transfer to a special savings account the transfer to coincide with your payday.

Naturally, if this amount is too much decrease, but do something to avoid finding yourself in the similar position next January.

Hope this helps.

Tessa-Marie

 

 

 

Living Pay Cheque to Pay Cheque

Standing on the edge of a precipice looking down at a chasm hundreds of meters below covered with tons of jagged rocks. This is what living from pay cheque to pay cheques is all about. A strong wind, some dizziness or a slip is all you need to take you over the edge. This is absolutely one of the scariest financial situations to be in. Today a large percentage of our population is living in those precarious circumstances.   What is more frightening is, there are people earning income of $60,000.00 to $70,000.00 who is balancing on that tight rope. It’s a tough position to be in, especially when there is a family to support. This is extremely stressful and difficult to maneuver oneself out of this canyon. Usually there is no lifeline up. It’s all up to you. You are all alone.

Here are six things you can do to avoid living pay cheque to pay cheque.

1. Create and maintain an emergency account with automatic deposit on a regular basis each and every payday. The amount does not have to be hundreds of dollars. Start with a small amount that you can afford which will not interfere with your regular monthly expenses. A good place to begin is from your entertainment or impulse-spending amount. Begin with $5 or $10 every payday.
2. Change your life style.   Begin by bringing your lunch. Skip one or two of your daily lattes. Borrow books and magazine from the library for your book club. Shop with a grocery list. Buy only the things you need. Only buy sales items if they are needed. Next month another supermarket will have the very same item on sale.
3. Create a Spending Plan.   It is well worth it to spend sometime looking at your income and expenses. Do not round out the numbers when creating your spending plan. Put in the exact amount. Pay your bills the same way you get paid. If you are paid bi-weekly pay your bills bi-weekly.
4. Stick to your Spending Plan.   Carry a copy of your spending plan on your phone. You need to know where your money is going and how much you have to spend on an item. Do not leave your spending plan on your laptop at home; it should be with you at all times.
5. Find a higher paying job or get a part-time job. It maybe time you get out of your very comfortable position. If you do not take the time to look for another job you will not find one. Start by networking with friends and family.
6. Sell some of the items you have not used in the past year. There are many places that will pay you cash for gently used items of clothing and household articles.

The most important thing you can do to get you to stop living from pay cheque to pay cheque is to be aware of where your money is going. Stay focus on managing your money. Read blogs such as this and seek professional help that is free.

I offer free financial money management.

 

 

 

 

WHERE ARE THEY NOW?

 

Tina and Patrick Part 2

Proper Preparation Prevents Poor Performance.

A lot has happened since we bought our home with the help of Tessa all those years ago. We are now less than a year away from renewing our mortgage and we have accomplished so much in the last four years.

Patrick proposed to me the day we walked into our home for the first time and after we dried our tears and drank the champagne we knew we would need to visit with Tessa again very soon. And we did, we met with Tessa to figure out how we could have the wedding of our dreams. We made the sacrifices we had to over the next two years in our new home to have the wedding we wanted and to insure we wouldn’t have any debt from it. So unlike most new home owners we didn’t feel the need or pressure to furnish our entire home at once. And as Tessa would say on several occasions all a young couple needs is a bed and a kitchen table. We furnished our home with hand me downs and modest new furniture slowly and when our wedding came and went we were ready for the next stage in our lives without any debt.

Now the wedding was over but the honeymoon continued because we were in such a wonderful place in our lives, newly married, fairly new home owners, so what’s next for us? The answer was clear for both of us; it was time to start a family. So it was time to revisit our finances with Tessa. As a self-employed RMT we knew we needed to save for all the money I wouldn’t be making and discussed with Tessa the benefit of opting into paying EI because it was important to both of us that I could be home with our little bundle the first year. That was step one, step two was still saving to have a little cushion for when baby arrived for any extra expenses that come along with a baby. With all that said and done we knew we could comfortably try to start our family a year after our wedding. And we ended up having the best one year anniversary gift by finding out we were pregnant that very day!

On top of saving and preparing for a baby we like most home owners had things to do around the house we had had a flood but took our time refinishing the basement ourselves to save money and make it work for us. We finished what needed to be done by the fall of 2014 so we could start the nursery for our baby arriving in February 2015 again doing all this without creating any debt because of all of Tessa’s help and the emergency account we had established as soon as we bought our home.

Now our son Kieran is here and 5 months old! Where has the time gone?! Our babymoon has been amazing and fairly stress free because we were mentally and financially prepared for our son. But there is more to do, it is time to get that minivan, so we have literally just met with Tessa to find out what we can afford comfortably and should be able to purchase a brand new car by the fall.

We are so amazed at what we have been able to accomplish with a little sacrifice and hard work. On top of all of these goals that have been reached we have been continually working towards another goal of ours, to be mortgage free by age 40. And with Tessa’s help that goal is becoming more and more attainable with every passing mortgage payment. There is still a lot we want to do both in our home and personal lives. From renovations, to expanding our family again, travelling, saving for Kieran’s education and our own retirement all of which we know we can and will accomplish with all that we have learned from Tessa. Everything has its own account and we have set up automatic transfers so there are no excuses and saving is practically on auto pilot which reduces stress.

I truly believe that part of the reason we have been so successful is our semi-annual financial check-ups we have with Tessa. It makes us accountable and it helps to put everything into perspective. Just like your annual physical with your doctor or cleanings with your dentist or maybe even your regular treatments with your massage therapist you’re able to identify a problem before it becomes a serious concern. So just like preventing high blood pressure, cavities or chronic back pain you’re preventing financial hemorrhaging which can lead to debt.

Patrick and I cannot wait to see what the next four years has in store for us but one thing we are confident in is that debt is not in our future.

WHAT HAPPEN TO THE $27.00 BRA GIRL?

A few months ago, I promised you some post from the people who have followed the plan they created with my help. Today is part one of the $27.00 bra girl saga.

What happened to the $27 bra girl?

I am that girl. Tessa retells my story to many people as they begin their work in financial literacy. During my first meeting with Tessa she instructed me to write down all the purchases I made in a week and bring the list to her during our next meeting. When I presented the list to her the following week, there it was, a $27 bra purchase that Tessa did not agree with. I ‘may’ have cried because at the time I thought it wasn’t outrageous, I mean, it wasn’t a $100 bra! At the time my husband and I were getting ready to move across the country for his job and my employment was uncertain, this is what made a $27 bra matter.   That meeting was 5 years ago.

I am blessed to have Tessa in my daily life, she lives a couple steps away from my childhood home and it always a phone call away. But she hasn’t actually seen my finances in years. Sound strange? Tessa set my husband and I on a path to achieve two big goals, save for a down payment on a home and pay cash for what turned out to be a moderately lavish wedding. Once those goals were achieved, I could see in Tessa’s eyes that she was ready to take the next steps with us. She would often ask, ‘so what are we going to do now? I think we should revisit your plan and set new goals’ but we did not. It was important to my husband and I to take what we had learned from Tessa and challenge ourselves to apply her principles to our new life back in our hometown. We were newlyweds, new homeowners, I had a new full-time job and had also returned to a part-time job I had left before we re-located. We needed to purchase two cars, furniture and re-establish our social lives. It would have been very easy to take our record book to Tessa’s kitchen table on a Sunday afternoon and get a new plan and to be honest, there was a couple of times over the years I have almost called Tessa. But the lessons that we have learned applying Tessa’s principles have been invaluable.

#1 Comparison is very costly.

We have attended housewarming, weddings, showers, parties but on the way home have almost the same conversation each time, what we liked, what’s not our style, what we would have done or done differently. We have been part of conversations common to newlyweds or new homeowners; what the reception cost, high property taxes, the cost of Reno’s etc. It always leaves us with the question of ‘would we have made the same decisions as our family and friends?’

Over the years we have driven higher end cars, added to our wardrobes each season and had made room in our financial plan for these things. As car leases have ended or as life has become too busy to find weekly shopping time, we realized we haven’t missed it. Tessa’s plan includes the use electronic transfers to various accounts to keep your plan on the correct path.

Within the last year we have made it our new goal to simplify our lives regardless of what others opinions are. We have lived in our home for 4 years and never worried about finishing the basement. We have always heard the comments ‘well you should really get that basement finished’ but just never felt the need to. We have family and friends with homes larger then ours, with finished basements complete with all the home theater systems a person could dream of. It was not in our plan, Tessa biggest lesson is that your financial plan in just that, yours. Had we renovated our basement years ago when everyone thought we should it would not fit our lifestyle today. As we wait the arrival of our first baby, basement renovations are now underway. We are excited about using the space and have tailored it to be an open creative space that our family will enjoy for years.

Unconventional to some, but perfect for us.

Stay posted for the conclusion of the $27.00 bra girl saga.

My Journey To Financial Freedom By Lisa

I was introduced to Tessa Marie Shillingford at church; she was the speaker at one of our women’s meeting. The topic was financial management.

Boy, am I glad I was present to meet her! She not only spoke about ways to save, she also spoke about the importance of getting and staying out of debt.

After hearing her speak, I knew in my heart of hearts that I needed to approach her and ask for her assistance with financial planning.

I approached her with tears in my eyes and explained how overwhelmed I was with my current financial situation. She reassured me that she would be able to help. I was excited because I was ready for change.

I phoned Tessa Marie the next day and made an appointment to meet with her. Little did I know she was going to be tough on me from meeting number one, I needed help, so I didn’t mind.

She asked to see my expenses and my income. After reviewing it, we were able to make a spending plan, which is the name she uses instead of the word budget. At the end of it all I was so shocked that I had money left over. A hallelujah moment! I was on my way to financial freedom. I understood that this was going to be a lifelong change so I made sure to soak up everything she said like a sponge.

Tessa Marie works tirelessly with you to achieve your goal. She provides this service free of charge, as she believes helping others with their finances is her calling. Her only ask is that we speak to others about what we learn.

In the last two years with her help, I’ve been able to pay off debts that I never thought I would be able to pay off in such a short space of time. I’ve also been able to take two trips without using credits cards. That’s huge for an individual like me who always thought my income was less than my expenses.

Hats off to Tessa-Marie Shillingford for her dedication and helping me come to the realization that if I create a spending plan and stick to it I will have savings and absolutely debt free. Now I am.

 

Lisa

 

 

 

I HAVE BEEN THERE – PART TWO

I noticed that the attitudes shifted and the body language changed, some of them were staring at me as though I had two heads and one eye. I asked them to put away their blackberries, their red berries and their yellow berries, which made them laugh. Finally, everyone settled down.

“Today, your topic is saving on a low income. I have changed the name, just for you, to SAVING INSPITE OF A LOW INCOME.” You see, although I have changed the name I am still not able to change the destination of your choice”, I said.

“I would like everyone to tell me what they would like to learn about saving money today, write your answer out and then you can read it out loud one by one”, I said.

There were eleven women; they read out their responses, which fell in two categories:

1. How much should we save each month?
2. How do we stop from dipping into our savings account?

I wrote those questions on the board and asked if this was what the group wanted to learn and whether there were any additional questions.

Everyone agreed.

1. How much is the correct amount or percentage to save each month?

“The answer to question #1 is = There is no fixed amount or percentage that will work for everyone.   Each person or family has a number that is unique to him or her and what works for me or for your sister or cousin cannot work for you. Your circumstances and needs are entirely yours and yours alone.  The one thing that matters the most is to put your savings before, RENT, FOOD, CLOTHES and any other expenses you might have. Your savings must be first and the amount does not have to be hundreds of dollars, you can save one dollar a week or ten dollars a month, what is important is to do it regularly and automatically.”

“The bank would never take a $1.00 a week from my pay cheque and save, that amount it is too small.”   One of the women volunteered.

1. How much should you save each month?

There is no fixed amount or percentage that will work for everyone. Each person or family has a number that is unique to him or her and what works for me or for your sister or cousin may not work for you. Your circumstances and needs are entirely yours and yours alone.  The one thing that matters the most is to put your savings before, RENT, FOOD, CLOTHES and any other expenses you might have. Your savings must be first and the amount does not have to be hundreds of dollars, you can save one dollar a week or ten dollars a month, what is important is to do this regularly and automatically.”

“The bank would never take a dollar a week from my pay cheque and put it into my savings account, that amount is too small,” volunteered one of the women.

“Yes, they will. All of our dollars are important to the bank and they want it. You see, this is how it works: the bank promises to pay us .25% on our money every month and they then take it and invest it in your brother’s mortgage at 3% which he pays every month. They give us the .25% on our money and the rest belongs to the bank. So yes, our money is very important to the bank.”

“My message to you is to begin small and have the bank make an automatic transfer from your chequing account to your savings account for the amount you want and on the date you want.  This method is called the automatic millionaire and with consistency you may actually become a millionaire one day.”

2. How to stop dipping into your saving account:

Give your savings account a name and have a purpose for saving the money.  Throughout our lives, every one of us in this room has heard our parents say, “SAVE YOUR MONEY.” They were only able to teach us what they were taught.  They passed the same information to us and we are doing the same thing they did, we save today and we use it tomorrow. Now if we begin to name our savings account and have a purpose it, it has been proven that we will not touch the money, because we have a reason for saving that money.  The Government of Canada is an awesome teacher. They have a name for every type of savings account they recommend:

1. REGISTERED RETIRMENT SAVINGS ACCOUNT
2. REGISTERED EDUCATION SAVINGS ACCOUNT
3. TAX FREE SAVINGS ACCOUNT

Savings accounts have no particular identity and can be used for different purposes by giving them a name we give them an identity.

You see, they all have a name and we know what we are saving for. We would be hard-pressed to take the money out, not because we can’t but since the purpose for the money is staring us in the face, our memory for saving the money will contribute to us leaving it alone.  Name your accounts, all the banks allow you to give your accounts a name that helps you identify the purpose of the money. Use that method and see whether it works for you.

The ladies were pleased with the workshop. The woman who first spoke stood and told everyone this was the best workshop they have ever had. They received tips they could try knowing that I too had to do it the way they now have to.

Sometimes, you have to do what you have to do to take your message across rough seas.

Tessa-Marie

I HAVE BEEN THERE – PART ONE

When I am asked to facilitate a workshop, I am prepared to facilitate whatever subjects the coordinator requests for their group.  There is the odd occasion when I arrive and meet members of the group then realize the topics requested are not going to work for them. I may know that, but the customer is always right so I stick with what was requested and deliver with all the passion and knowledge I can offer.

Last Tuesday was one of these occasions. The moment I arrived I could sense that these ladies were not happy to be there and were not interested in anything I had to say.  They sat with their cell phones on the table directly in front of them and their hands folded across their chest or holding on to their chins.

Great, I thought when I walked into the room and observed the situation, I really need divine intervention; I took a deep breath and silently said, “I need guidance to be able to reach these ladies.”

The coordinator introduced me and I began by telling the participants a little about JVS Toronto. The moment I was done, one of the ladies said, “What can you teach us that we do not already know, you come here with your high and mighty attitude and think you can teach us how to survive on a low-income when you have no idea what living on a low- income is like.  You people come here and speak from your pulpit and expect us to go out there, do what you say, and our world will suddenly be ok.

Thank God for yoga and deep breathing. I did my breathing exercise, smiled and said, “Who told you that was what I am here to do? If they did, I am extremely sorry to say I will have to disappoint both you and the person who gave you this information.”

“You see, I am a Financial Advancer, my job is to take you from where you are and advance you to where you want to go.  I am not able to do that unless you first tell me where it is you would like to go financially, think of me as an airline company: it will not take you to Montreal when you paid to go to Disney.  The customer is always right and I aim to please.”

Let me tell you a story about a young woman I met 37 years ago.  This young woman was 22 years old when she got married. At that time, she worked for the Government of Ontario, Ministry of Education and every six months the Government gave them a $3.50 rise in pay. Her philosophy then and even now is that she did not have it last week so she is going to pretend she did not have it this week and would save it.  Now this young woman and her husband wanted to buy a home so she decided that she would save every  pay raise they received until they had sufficient funds for a down payment to buy a home.  She went to the Credit Union on MacDonald Block and opened an account. She then asked the clerk to have $3.50 come out of her pay cheque every two weeks.

The young woman had to have her lunch right in front of the clerk as this transaction took an entire hour since there were no computers. Today, it would take one minute to put together. This continued and with each raise she or her husband received she would go back to Credit Union to increase the amount.  At the age of 29, the bi-weekly amount had grown to $80.00 and they now had a savings of $7,500.  They were able to purchase a home with a down payment of $5,000.00.  They did not buy new appliances; they went to Queen West and purchased a used stove, used washing machine and a used fridge. They did not buy a dryer; instead they went to Honest Ed’s and bought a ball of twine, a package of clothes’ pegs and a small packet of nails. Her husband picked up a couple of stones to use as a hammer to knock the nails in the walls of the basement to use as their clothes’ line.  Three months later their daughter was born, so they took the dresser drawer and padded it to use as her crib for the first two months of her life.  No matter where this family ended up they cannot deny the beginning of their financial journey.  If this young woman did not start that very small savings plan they could not be where they are today and she would not be standing in front of you today.”  There was an audible gasped. I continued, “The reason I wanted to tell you this true story is to let you know that, I do not want you to believe because a person comes to facilitate a workshop that they have never walked in the shoes you are wearing today.  Are we ready to begin the workshop?”

To Be Continued…

Tessa-Marie