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.

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

 

 

LIVING FRUGALLY

My friend asked me the other day, why I teach people to live frugally and to save money, when I do whatever I want, whenever I want?

When my friend asked that question it made me realized that perhaps I should better explain what frugal living is all about.

I have always been a frugal person while I believe in living frugally; I never   deprived myself of needs or of some wants. Living frugally meant I had to always have a smart plan, which I followed until I met that particular goal.

Living frugally does not mean you have to wear the same clothes over and over or lower the temperature in your home to just above freezing.  It does not mean that you have to sit in the dark and keep the lights off.  Frugal living does not mean that you never go out to dinner or to a show.

Frugal living is always working on your goals; create a plan to find out what you really want.

It is being able to have financial choices. The choices may give you a chance to find some level of happiness and contentment.  It allows you to say no or say yes with ease.

My decision to live frugally has caused me many small family frictions. I remember my brother – in – law saying “Tessa-Marie wants me to turn off the lights whenever I leave a room so she can save ten cents worth of electricity.”  Yes I did, because it was my ten cents not his, it just made no sense to me leaving the lights on when no one was in the room.  Today, Toronto hydro has all types of incentives to encourage the consumers to save on the cost of electricity.  As an example they have provided us with a chart, which explains the peak period and the non-peak period of the cost of electricity.  So as far as I am concerned I was way ahead of the curve on saving small amounts and that made me a trailblazer.

Being frugal enabled me to make a choice to publish my book “Controlling the Debt Monster”. I made the choice to have my book published and changed my career.  I am doing what I love, advancing others to financial independence.   When I discussed publishing the book, one of my co-workers told me why not continue to work for TD Canada Trust until I am 65 then publish my book.  It was tempting, but I knew I had saved and invested well so I could do something I loved while I had the energy to do so.

Being able to do what I am doing today was more tempting than continuing to work at something that had run its course.  I enjoyed my time at TD Canada Trust. I love that company and I am grateful. TD Canada Trust educated me and paid me a salary. The education I received from them I am using today to do something I love which does not feel like working. Even getting my education from TD Canada Trust to be a Financial Planner was living frugally since they paid to educate me. I did not have to pay for the training I received. Guess what, the education and training I received at TD Bank is mine to keep and use however I choose.

I know that my responsibility to serve others is to be the example they need.  I have walked in the shoes they are now wearing and I tell them my story.  Now I serve by enlightening, educating and encouraging others to follow a frugal way of life early in their career so later on they will be able to enjoy doing what they truly love.

The entire idea is to LIVE LIKE NO ONE ELSE WHILE YOU ARE YOUNG SO WHEN YOU GET OLDER YOU CAN HAVE THE OPPORTUNITY TO LIVE LIKE NO ONE ELSE.

Frugal living as a young person let you choose to winter in the Caribbean for six months of the year as a senior.  Frugal living means that you do not have to work because you have to. Frugal living is choosing to work in the flower shop because you always wanted to and now you can.  It also means that you can tick off all the things on your bucket list because you can.

Frugal living does not mean that every time an item is on sale you purchase it, whether you need it or not.  Frugal living is, knowing the difference between your needs and your wants. Frugal living is shopping with a list of the things you need to purchase, it is not entering a store and purchasing whatever is on sale. Frugal living is bringing your lunch to work instead of spending $7.00 on lunch and another $4.00 on coffee and a donut everyday.

Frugal living means knowing what you want and where you want to be financially in the future. Frugal living allows you to have many choices.  Frugal living is watching your savings grow year after year; frugal living is having your house paid off and being completely free of all types of debt.

Frugal Living equals Financial Freedom.

Tessa-Marie

WHAT YOU WANT VERSUS WHAT THEY WANT YOU TO PURCHASE

I had an encounter at the mall earlier this week. I needed to get a short, white jacket to wear with my summer dresses.  I entered a store, was looking around when this young lady came to assist me in selecting my purchase, asking whether she could help me. I explained to her what I was looking for and informed her that I had already looked around and did not think they had exactly what I wanted.  She said that she would check her stock at the back and, after a few minutes, came back with several ladies’ jackets. I looked at each one and kindly explained they were not what I asked for.

The young lady began explaining to me that the shorter jackets were out of style and these are the latest fashion. They were seen on the runways of New York and Paris.  I again told her that I wanted a specific jacket.  She said the benefit of having one of these jackets is that I could go from spring into summer and then right into fall. The colours she had were spring and summer colours.  I explained again, in case she had forgotten, that I wanted a short, white jacket. She then informed me that white, as a colour for spring and summer, was out and the popular colours were bright green and bright yellow, and if I got one of those jackets I would be the envy of my friends.  The price is great, she said,it is at 50% off today and if I had a friend who is a senior I could get an additional 15% off.

As a former sales person myself, I must commend the young woman; she new the benefits of her product, she did her best to sell them to me, she informed me that I would be right in the fashion of the times since this was seen on the runways of New York and Paris for the spring, and that I would be the envy of all my friends with my new runway jackets. Then, she went for the jugular by informing me of the price and the discounts.  Who in their right, impulsive mind could let that amazing sale pass?

The sales woman did not hear my needs, she wanted to sell these jackets and her job was to convince me that I needed the jackets even if I had come to the store for something entirely different.  My needs were completely forgotten. She had an agenda and it was to sell me those jackets. I love these encounters and when I get one of them I often try to put myself in the place of the impulsive shopper.  What would an impulsive shopper do?  Would she agree with the sale person and purchase the runway jackets?  What then would she wear with those summer dresses?  Would she now have to purchase something else to wear with these new jackets, I know she could not wear the jacket without a skirt or a dress?   So the impulsive shopper would leave that store with a bag full of unintended purchases, a maxed out credit card and a belly full of regret before even getting home.

I politely told the young lady that I was not interested in the jackets and left the store.

When you go shopping, you should always be sure of what you are looking for and how much you plan on spending. Remember that the sales person’s job is to get you to buy what they have in their store. You must be aware that they are not your friend, you just met them and they are doing their job… and some can do their job very well.  Often, when we get into those stores and the sales person is helping you, they already know what has to move from the store today.  There was a sales meeting prior to opening and the manager gave them their target for the day or for the week.

When you enter a store you are swimming in unchartered waters.  Be careful as you might drown in a sea of debt before you know it. The bright, spring sunshine can push us into spending more than we plan this season… especially after the cold and snow-bound winter we just experienced.

Take your time and plan your shopping wisely. Take a friend who will tell you the truth no matter what and do not depend entirely on what the sales person has to say.

Tessa-Marie

 

APRIL 2^ND 2013

FIVE POWERFUL STEPS TO FINANCIAL SUCCESS

Interesting year we are in, 2013!  Commonly, anything with the number 13 generates fear and superstition.  Many people run away from this feared number. Buildings do not have a 13^th floor as it is so feared.  Do we have a choice?  Can we ignore the year 2013 or pretend it does not exist just because it has the number 13 in the mix?  No, we can’t so we are going to include 2013 in our lives.  We are going to do something different this year.  We are actually going to embrace the number 13; we are going to embrace the entire year!  A suggestion for our theme for 2013 is NEW HOPES, NEW DREAMS AND FINANCIAL SUCCESS!

Every year we make plans and set goals, which we refer to as RESOLUTIONS.  Let us scrap that word. We are setting New Goals for a New Year with a number that will surely improve our chances.  We will begin by naming “2013” the year my life changed for the better.

My first question; what do you want to ACCUMULATE and what do you want to ELIMINATE?  Take a few minutes and write your answer down.

In the past few years were you a MISSILE WITHOUT A GUIDANCE SYSTEM?  Were you just going about your business working, paying bills, spending and reacting to life instead of life reacting to you?  It’s time to change.  Give yourself a GUIDANCE SYSTEM. Where do you want to go and when?

Now what are those five powerful steps to financial success I am talking about?  Well here they are, you might have heard some version of them previously, but not described to you in the way I am going to do so now!

1.  SPECIFICITY

Key to meeting your goals is to know your goals. Describe your goals completely and entirely until they become something you can recite like a nursery rhyme. You want to pay off your Master Card then say I want to completely pay off my Master Card.  Do not only say I want to pay off my debt.  This non-specific statement does not completely describe your goal.  The specific statement you want to make describes which debt and the amount.  Generally, when a goal is not specific it is not attained.  Ask yourself which debt, the $100.00 you owe your brother, or the $3000.00 outstanding on your Master Card?  Be Specific.

2.  KEEP SCORE

What steps are you taking to meet those goals?  In other words, keep score of your progress towards your goals.  Your statement should be as follows.  I want to pay off my Bank Master card (name the bank) and I am paying $250.00 towards the card every month.  So I Keep Score every month of the total I have paid towards my Bank Master Card debt, which shows me the headway that I have made.

3.  PUT YOUR GOAL INTO YOUR LIFESTYLE

Now that I am paying this Bank Master Card off, I should not continue to use the card.  Making payments to eliminate debt every month and simultaneously incurring more of the same debt is counter-productive.  For example, one should not make efforts to pay $250.00 a month towards a Bank Master Card debt and charge $200.00 to the card just because there is available credit.  Create habits that will enable you to bring your financial goals into your lifestyle and eliminate the habits that work against you.  Modify your behavior.

4.  PROGRAM FOR SUCCESS

Now that you know the steps you need to take in order to meet financial goals, avoid the impulses and temptations that are a hindrance to your targets.  An immediate reward can produce long-term penalties.  A drink after work every Friday is no longer one of your pastimes.  Dinner out every weekend with your friends should be scaled back. Why not cook with your friends at home and everyone contributes to the meal.  A lovely homemade Tuscan soup and some fresh buns with a bottle of wine can make a lovely winter dinner with friends at home.  Try it!  You’ll it!

5.  TIME.  WHEN DO YOU WANT TO ACCOMPLISH THIS GOAL

This is one of the most important steps in accomplishing your goal.  A friend of mine always wanted to retire to Jamaica.  I’ve heard the following statement for the last 15 years. “I am going back home to retire.”  Now that is an incomplete plan.  My friend did not complete his statement; he should have said:  “My goal is to retire in 2001 at the age of 60 in Jamaica.” Now that is a complete goal!  We have the where, the what and most importantly, the when!  My friend is still in Canada, retired and only vacations in Jamaica.  He maintains his dream of one day living in Jamaica but his goal is still incomplete.  With no when, no timeframe, this is an incomplete and unattainable goal.

So there they are!  Your Five Powerful Steps to Financial Success!  Every three months take time to look at your progress towards meeting your financial goal.  If you are not on tract, then re-evaluate and make the necessary changes to get yourself back on tract.  It may not be easy, keep plugging away, do not abort the goal!

Happy New Year

Tessa-Marie

January 2 2013

HOLIDAY SHOPPING FOR KIDS

I am devoting this entire blog to Holiday Shopping for kids.  Why would I devote an entire blog to holiday shopping for kids?  I went through the holidays myself with three children two years apart and have a great idea of what it means to shop for children during the holiday season.

The first thing to remember the children are targeted during this time of the year, the commercials and all the advertisement are geared towards the children.  I attended a workshop on marketing once and the facilitator told us that when we are unable to get the adults to purchase for themselves that we should find a way to get them to spend on their kids.    Marketing to children is a multibillion dollar business and we are all allowing these companies to increase their bottom lines at our expense.

When shopping for children there are four things parents, grandparents, aunts, uncles and friends should know.  Children shopping should be divided in four categories.  It is also a good idea to make some prior decisions about who will buy the gifts for the children and what will be bought.  Plan ahead! Stay on plan and keep to the budget you have allowed for each.

Here are the four groups for shopping for children during the holiday season.

1. Buy something they want, children usually make a list of the things they want, take the list and go over it very carefully, look at what they have written down what they want or what they say they want, that list will change but only to add something new, never to take something out so choose something from the list that you can afford and stick to it.
2. The next thing should be something you know that they will wear.  That could be a new coat, or some other article of clothing. This is where shopping with a list is important; do not go holiday shopping without that list of the things they can wear.   Have the list and stick to it.
3. We now come to the things they need, or will need in the first three months of the New Year.  What will they need for the New Year, are they registered in, dance, hockey or some other activity.  This is your time to use the holiday season to take care of some of the needs that are coming up in the New Year.
4. Now what about something they should read, I know, you are thinking kids don’t read that much anymore they are all into video games.  This is very true but they all have an interest. What about purchasing a book about hockey for those who are lovers of hockey.  There are great books on baseball; a few of the last Olympians from the 2012 Olympics have written books on their journeys to become Olympians. If they are interested in video games get a magazine subscription that will pique their interest further

Now when you have a list of the four points, What they Want, What they will Wear, What they Need and What they should Read, circulate the list among family and let everyone choose from that list. In doing this the children will have a wider range of things under the tree.  This will also give you an opportunity to get some of the things they will need and will wear in the New Year.

January is a sad time to be spending money especially during the early months of the New Year when cash flow is running slowly.    Debt increases because of the lack of cash flow, by planning carefully during the following weeks will indeed give you a head start not only on the holiday spending but also on the post holiday spending.  If you did not have a special plan for the holiday you might have to use your credit card.  If you are going to do so make it as careful and strategic as you can. Remember, proper preparation prevents poor performance.

Let me know how the holiday shopping is going.

Have a Happy Holiday.

Tessa-Marie

 

CHRISTMAS SHOPPING

I went to the mall today with my girl friend; she wanted to get an everyday coat and needed my help with choice.  We found the ideal coat at a great price.  The coat was marked down from $278.00 to $119.00 plus as a bonus you would be given a gift card worth $25.00.

We went to the cashier to pay for the coat, the sale price went on just as it was listed on the flyer, then the clerk told my friend if you use our credit card you will receive an additional 10% off to which my friend declined. The clerk was so intent on getting my friend to use the department store’s credit card; she forgot to give her the $25.00 gift card which was part of the promotion. My friend reminded the store clerk that the advertise price came with a gift card.  The sale clerk who obviously had not been briefed by her manager did not know about the additional gift card.  After she checked with her manager the card was given to my friend.  My friend wanted the gift card and needed to shop from one more items where the card would make a difference so it was important to her to get the card. The clerk’s goal was to encourage my friend to charge her purchase and naturally to use her store’s credit card.  Do not get caught in that 10% trap, it is not worth the years it will take you to pay off that purchase.

I am not a big supporter of gift cards given after purchases, they usually come with conditions and some of those conditions mean you will have to spend more money on a purchase in that store and only on certain items.  If you are not a wise shopper you could end up spending much more than you anticipated just to get the additional discount.

The Holiday season is just around the corner and the stores are ready and waiting for us to show up to make our purchases.  They are ready and willing to help you find that special gift.    If you have chosen to make your purchases at the last minute be aware of what is on sale and what you are really getting for your money.  Read the advertisement and bring a copy with you just in case.  The clerks are busy and they have quotas, so you are on your own.  You have to be a smart shopper.  Do not let the sounds, smells and the crowds get you to make some decisions you will regret in January and February when the credit card bills show up in your mail box.

It would be best if you could make a list of the people for whom you have to purchase gifts and have an amount set for each person.  I use a small note-book to write my Christmas list in, with the names and the amount I want to spend on that particular person. You should carry the list with you whenever you are going out of the house.  If you see something you think would be a great gift for uncle Harry and aunt Lucy, pull out your list and see exactly what you intended to spend on their gifts.  It is never a good idea to have set a price for a gift and just because you did not have your list, you made a purchase way above what you had priced on your list.

If you do your shopping in November, give yourself a date when you want to be done with your Christmas shopping, do not let it drag into the week of Christmas, if you do, you will purchasing way above your means.    Avoid the stores on the weekends you will find hundreds of people all doing their Christmas shopping and you will not be able to get the attention of the clerks if you need their help. If you are going into a big mall with lots of stores wear a light coat something that will not drag you down. Also take your weekend purse which you can sling across your body with just the items you will need, do not carry a heavy purse it will only get heavier over time.     Be aware of your surroundings the purse snatchers are out doing what they can do best which is to take your money and important things away from you.  If you find that you are loaded down with parcels and bags make a trip to the car to drop some of your purchases off, also when doing so do not leave purchases on the seats of the car, place them in the trunk or cover them over with a blanket so that they cannot be seen by someone looking into your car.  Lastly make sure you have locked your car and your keys are safely in your purse.   When you get home from shopping put all your receipts in a shoebox or a large zip lock bag you may need them in a few weeks.

I hope this will help you make your Christmas or Holiday shopping much easier and safer.

Have a Happy Holiday

Tessa- Marie

ARE WE READY TO BE LONG TERM INVESTORS?

I have been working with Andrew for six years as his Financial Advisor.  I met Andrew when he was a 24-year-old university graduate.  Andrew had a large OSAP loan, a student line of credit and a credit card with a balance.  He was recommended to me by his mother whom I had been working with for a number of years.

When Andrew and his wife Kathy  came to see me for their annual financial check up and asked me the question “Are We Ready to be Long term Investors,”  my  reply to them was “Yes  you are both most certainly ready to become  serious long-term investors.”

When Andrew and I first met we worked on a Financial Plan.  Preparing the Financial Plan took one month before we were certain that was what he wanted to achieve. During that period we met weekly.  The following month we met every two weeks which we continued to do for one year.  Soon after our first year of meeting Andrew introduced me to his finance Kathy. We had to revise the plan Andrew had as a single man to include his then fiancée Kathy.  Kathy also had a credit card, student line of credit and an OSAP loan.    For the next two years we met once a month and then switched to meeting annually.  Working with a Financial Planner requires time and dedication. The planner will be there, but you will have  have to also be present, and by present I mean do the things you said you would do and show up on time and keep your appointments.

Here is a list of Andrew’s and Kathy’s goals.

1. Open an emergency savings account.
2. Open two Registered Retirement Savings Plans.
3. Make payments to credit cards and do not add any more purchases to the credit cards.
4. Transfer credit card payments to the student lines of credit, once the credit cards were paid in full.
5. Make regular payments to Student Loans.
6. Save for their Wedding.
7. Save to purchase own home.
8. Purchase a car.
9. Open a joint vacation account.
10. Open a joint Long term Mutual Fund non-registered account.

Six years later Andrew and Kathy have met all of the above goals and now want to be serious long-term investors.  They are well prepared, and understand the process of long-term investing.  You will notice that Andrew and Kathy did not start long-term investing until they had achieved their short-term and some of their mid-term goals.  Both Andrew and Kathy are ready to work with an Investment Specialist or Broker.

Andrew and Kathy wanted to know why I am referring them to an Investment Specialist.  The reason for not getting involved in investments is because there are thousands and thousands of Investment Specialist all over the place, but very few advisors who are passionate enough to move you from where you are to where you want to go, or to get you ready to work with an Investment Specialist.

I have recommended Andrew and Kathy to an Investment Specialist who will work with them to build wealth.

My job as always is to enlighten, educate and encourage you at the beginning of your financial journey.  I choose to help you to make the proper plans to manage your money and to stay out of revolving credit which will contribute to your financial success.

Andrew and Kathy are going to be in good hands and we will be meeting every year for a financial check up.

If you are ready for long-term investing, consider working with a financial advisor.

Tessa-Marie

 

WHAT DO YOU REALLY, WANT?

Whenever I facilitate a workshop on finance the very first question I ask the participants is WHAT ARE YOUR FINANCIAL WISHES?      Most of the participants are stumped by this question.

In The story of Aladdin’s Lamp the Genie once released from his imprisonment in the bottle asks Aladdin. “WHAT DO YOU WISH’   I refer to this fable to illustrate a point.  When Aladdin was confronted with this question he hesitated, and like most of us, he did not have a list of specific wishes.  He had a vague idea of what would provide the most immediate pleasure and comfort.  He did not have a working plan and he did know what he wanted.  I ask, the Genie’s question a little differently. What is it you to accomplish financially?  The common response is “You know I have never really thought of that.”

At the beginning of a workshop on finance I get those same reactions. So let’s see if I can help guide you to achieve your financial goals

It is Tuesday night and you are watching reality television wishing you were one of those rich people or one of those getting rich doing their show.  You wished so hard that the Genie appears,   “Give me a list of the ten things you want now and they all will be yours in five years.  You will receive the first one in January and the second one in June and every year after this for the next five years.  There is only one catch; you must name these ten things in 120 seconds.”

How many of you are able to do this now?  Stop reading and get your, I phone, I Pad, purple, yellow or blackberries and begin writing taking only 120 seconds to complete the list.  How was that for you, did you complete your list in 120 seconds or were you mystified, dumfounded, and exhausted, well you are not alone you are just like 90% of the population over the age of 20.

Kids know what they want; we have all seen or experienced with a child who wants a particular toy, they know the name of the toy, they know where it is sold, what colour it is, how much it cost and they also know you will move heaven and earth to get it for them.

The Genie feels sorry for you and decided to give you another chance.   He tells you “I will be back in seven days and if you have those ten things listed they will be yours.”

What are you going to do, are you going to turn off the television, and get your note-book or one of those berries and begin writing or are you going to do it after this particular show is over?  It is all your choice, remember. The decisions you make today determines the life you live tomorrow.

You decided you are starting now.  The first list you created you set aside, NO! You say out loud as you jump out of your chair, this is not what I really, want.   You start again.  This time you date and time the second page and begin, using the previous list as a reference, you look at the list again and will see the things you know you need, also what you don’t want.

Here are  some things you might have on that first list.

1. Be happy,
2.  Have good health
3. Travel
4.  Have a fancy car
5. Eat at superfine restaurants
6. Have a big House
7. Buy designer clothes and shoes
8. Want to be comfortable
9. Get married
10.  Have a family

Now here is a list of the things you need and want to accomplish.

1. Stop borrowing money to buy things
2. Bring my current debt up-to-date
3. Pay off all my debt Buy a Home
4. Create a small only God knows fund
5. Create a Big emergency fund
6. Buy a house
7. Open a  Registered Retirement Savings Plan
8. Save my children’s education
9. Have an annual vacation
10. Pay off the house

A very different list from the previous one.  Are these better choices?

Try creating your own list using the above as a reference.

When you have these things in place, peace of mind, happiness and contentment will follow, and your Financial Advisor aka Genie will have guided you to reach your financial goals.

It requires some practice and it will definitely take much more than 120 seconds to get it right but it is worth doing.

Let me know how you felt before and after the exercise.

Tessa-Marie