Tag Archives: Money Coach

Don’t Let Back to School Break the Bank

By Karen Richardson, FPSC Level 1® and Christine White, P.Eng., FPSC Level 1®

The back to school cliché is that kids dread it and parents are gleefully counting the hours. But in reality, lots of kids are excited to go back to school (albeit an excitement that usually fades with the first homework assignment) and many parents dread September because it feels like open season on their bank accounts. Back to school spending seems to escalate every year, but it doesn’t have to be that way. You may not be able to keep your kids excited about school, but saving on back to school expenses is possible with some planning.

Back to school basics

Don’t start from scratch

A costly mistake many parents make is buying everything new. School ended roughly 8 weeks ago. It is entirely likely that much of what your children wore last spring still fits them. The same goes for school supplies; rulers, binders, folders, pencil cases, calculators, erasers, etc… are often in fine shape for the new school year. Before you head to the mall make an inventory of what you already have.

Kids don’t need everything on the first day

Even if your stock taking reveals that the kids will need several new items to get through the year, they won’t likely need winter boots in the first several weeks. Keep purchases to the essentials by building on what they have and then start watching for sales. The holidays are just around the corner and adding to the kids’ wardrobe through birthday and Christmas gifts is also a great idea. Continue reading →

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Money Coach Spotlight: Melanie Buffel

“We can’t solve problems by using the same kind of thinking we used when we created them.” –Albert Einstein
Melanie Buffel Money Coach in Vancouver BC

Melanie Buffel, BA Psych, MBA Candidate

Melanie Buffel changes the way her clients think about money.

“When I begin working with clients,” she says, “whether they are individuals, couples or entrepreneurs, they usually present me with foggy numbers: unclear expenses, numbers that are rounded up or imprecise. Then at one point on the journey they begin updating their spreadsheets, rebalancing their plan and speaking with a level of confidence that tells me they’ve had a paradigm shift. It’s wonderful to see them believe in their capacity to make sound financial decisions.”

Understanding what’s important to her clients is the foundation of Melanie’s approach. She recognizes that every person, couple or business owner has different needs and goals, and on an even deeper level; everyone has an emotional relationship with money that has been shaped by their childhood and life experiences.

Conflicting money personalities can cause tension within a relationship, says Melanie. “I help people clarify their priorities, and as an objective third party I can ask the hard questions without judgement.”

Melanie’s objective perspective can also help couples who enable each other with magical thinking solutions to their challenges. Judging or enabling is just two sides of the same coin; nothing changes.

Clients working with Melanie can expect change. “It’s so important that we clear the fog and determine priorities and goals, but that is just the beginning. The end game is integrating workable solutions into the reality of their lives.” Continue reading →

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The Real Secret to Making Smart Investment Decisions

By Tom Feigs, CFP®, CET

As a fee-for-service financial planner it’s not unusual to be approached for a “quick” portfolio review. “Can you just look over my investments?” or “Can you tell me if I’m saving enough?” As much as it’s in my nature to want to help people, it would be unethical and unprofessional to advise someone without a comprehensive look at their finances and a clear understanding of their goals.

The idea that investments are priority one is a by-product of how traditional financial advisors are paid – commission on investment sales. In fact, where and how to allocate your funds are decisions that should only be made after reviewing your personal situation and needs.

Imagine your financial journey. The destination is your retirement. Your personal framework (income, obligations, health, family commitments, risk tolerance, age) represents your vehicle and the road map is your various goals. Your investments and savings are the fuel to get your vehicle to your destination.  You wouldn’t be looking for fuel before having a car and directions.

I work with individuals and couples that earn upwards of $150,000 a year, and because of the possibilities their income allows, they will all have their own set of priorities and cash flow needs for retirement. They also have various personal situations (for example, some people may have family in distant locations, others have no children, others have health concerns and still others have various complexities in their personal and business lives.)  All this information is vital to the financial plan we create together. Continue reading →

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Credit card rewards: perk or pitfall?

By Karen Richardson, FPSC Level 1TM Certificant in Financial Planning

Photograph of a stack of credit cards

Credit cards, when used carefully, can play a positive role in your financial life. Using credit wisely is critical to building a solid credit history. If you need a loan or a mortgage, or you want to renegotiate a loan, a good credit rating is important and will help you negotiate the best terms. But credits cards used carelessly can send your life and finances into a tailspin.

But we all know this, right? So how do smart people with six figure incomes end up with more credit debt than they intended? Often it’s the seductive lure of credit card reward programs.

How many people do you know who put almost everything on their credit card so they can earn reward points? Maybe you do it too. Well let’s take a look at the perks and pitfalls of a rewards plan spending habit.

Perks

1. If you are using a card with rewards that are of value to you, and you are paying off your balance each month, you may be benefitting from the program.

Well that was a short list.

Pitfalls

Unfortunately this list isn’t as short. Continue reading →

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Do 6-figure professionals need a budget?

By Sheila Walkington, co-founder and CFO Money Coaches Canada and the Women’s Financial Learning Centre

new-years-eveHappy New Year!

The New Year is a natural time to look forward and set goals, but it is also a good time to reflect on how far you’ve come. Looking back one year life may not be dramatically different, but if you look back 10 or 15 years, so much has probably changed, especially in terms of your career and income.

When you were starting out you probably had a pretty simple financial plan – pay the bills so the lights stay on. Going out to the movies may have meant you’d have a smaller bag of groceries that week, and you may have dreamed of the day when you’d reach a level of success that you’d never need to budget again. But like the child who dreams of eating chocolate all day when (s)he becomes an adult, it isn’t such a good idea when the moment arrives. Now that you have achieved a good measure of success, you probably have a lot more reasons to stay on top of your finances.

So, do 6-figure professionals need a budget? Not if your idea of a budget is restriction and inflexibility. At Money Coaches Canada we’ve created a Spending and Savings Plan, not as a euphemism for the word budget, but as a tool that keeps you engaged with your money. Engagement fosters informed decisions and informed decisions will likely be in your best interest long term.

What happens to many high earners is that they get busy; they work hard, play hard and are often raising families at the same time, and they lose touch with where their money is going. They don’t have to choose between groceries and a movie anymore, so they may stop worrying about day to day spending in general. The catch is, with success comes different reasons to pay attention. Continue reading →

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September is a great time to check-in with your financial goals

No matter how many years it’s been since we’ve tossed a graduation cap in the air, the back-to-school energy of September motivates many of us to re-commit to moving forward in our lives; making it the perfect time to check-in with our financial goals.

CROPPED UPDATED-7-Stages-of-Financial-Well-Being-732x1024As Money Coaches we help people progress through the 7 Stages of Financial Well-Being™ to ultimately achieve financial fulfillment. A great way to set goals is to recognize which stage you are in and to understand what you need to do to move to the next stage. You may be able to determine where you are by reading the descriptions of each stage in the graphic (click the image to enlarge), but you can also download our 7 Stages of Financial Well-Being™ Quiz to see where you stand.

Maybe you are already very clear about which of the 7 Stages you are in, yet you feel stuck. Continue reading →

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Is money coaching right for you?

By Josh Black, CPA, CMA

With so much financial advice widely and easily available in videos, books and blogs, you may wonder what more a money coach can offer you. Money coaching costs money, and a good money coach would tell you not to spend your money without asking yourself a few questions first.

Have I been chasing the same goal for a while with little or no results? Do I even have goals?

So many people set vague goals that are more like wishes than plans; I want to save more, or, I want to be debt free. A money coach will help you become very specific about what you want. But even clear goals alone are not enough; a money coach helps you create a framework of actionable steps. As you move from thought to action you begin to see measurable results immediately, and results breed confidence and eventually mastery over your money.

Do I keep setting start dates in the future and missing them?

It’s easy to let ourselves off the hook. Life is busy, unexpected circumstances throw our plans off track, but if we are honest, our reasons are often just excuses that mask our fears, or our limiting belief about our ability to meet our goals. That’s why so many people who set goals put off taking action. A money coach can keep you focused, dissipate your fears and encourage the confidence to finally move from planning into action. Continue reading →

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Success Story: Louise – A life changing financial turn-around

All information used with the client’s permission.

In 2010, Louise was a single mom with a teenage daughter and another daughter under age 10. She spent her days working with words, writing sales and advertising copy that garnered her great respect in her field, but at the end of the day, it was numbers that weighed her down.

Despite the outward signs of success, Louise owed $15,000 on credit cards and $10,000 in income tax. She had purchased a duplex and had upstairs tenants to help offset the mortgage, but she was also paying rent of $1,000 a month for her daughter at college. And just over the horizon loomed an income tax bill of $26,000.

“It’s very shaming to be that far in debt,” she says, “so you start hiding a lot of information from family and friends.”

She felt isolated and uncertain about how to turn things around. She read books and blogs about money management, but confidence in her financial skills was so low, she wasn’t able to turn the general information into personal solutions. She discounted the idea of reaching out to a financial planner because she believed planners were for investing and not for dealing with debt.

“I had never heard of a money coach,” Louise says, until she came across the term in a Canadian Living magazine article featuring Money Coaches Canada co-founder Sheila Walkington. The idea that there were financial professionals who could guide and teach her how to manage her money gave Louise just enough courage to break her isolation and reach out. Continue reading →

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It’s time to break down the money talk taboo

By Melanie Buffel, B.A. Psych, MBA candidate

Our culture is rife with mixed messages about money. Money is freedom, money is greed, live simply – but to be happy you’ll need this car, have these clothes and that phone. Yet one message comes through loud and clear; don’t talk about money – at least not at the personal level.

On a broader scale we talk about money all the time. The financial media talks about the level of consumer debt that Canadians carry, or how unprepared many people are for retirement, while at the same time new homes seem to get bigger, and Facebook is full of vacation and home renovation photos. We hear that people are struggling but we don’t see it. We commiserate with friends that gas and groceries are too expensive, or that university tuition for our kids is weighing us down, but we often do that over a nice glass of wine or an overpriced coffee. Everyone we know seems fine. The thing is, behind closed doors, not everybody feels fine. Many people feel overwhelmed and stressed, but are too embarrassed or ashamed to tell anyone. The isolation goes even deeper if financial worries are being kept from people otherwise close to you, such as a spouse, close friends or family.

Continue reading →

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Income tax challenges for the self-employed

By Melanie Buffel BA Psych, MBA Candidate

iStock_000018832279SmallWhen people choose self-employment, they are often attracted to the challenge and excitement of creating a business they are passionate about. They may look forward to a more flexible work schedule, or the possibility of earning more than they did as an employee. The one thing most people don’t get excited about is keeping track of all their expenses and planning for their income taxes.

But procrastination in handling the financial side of your business can result in frustration, or even panic, as the tax deadline looms.

There are some real tax challenges for the self-employed:

  • Your income may vary month-to-month making it difficult to estimate annual earnings and thus the appropriate tax rate.
  • A varied income also makes it hard to create a cash flow plan.
  • Even if you create a plan it can be difficult to honour it when cash flow is tight.

Then there are the pitfalls of inexperience:

  • Losing track of receipts.
  • Mixing personal expenses with business expenses.
  • No clear sense of how much to set aside for income taxes.
  • Falling behind and still trying to catch up on last year’s taxes owing.
  • Missing the filing deadline and incurring penalties.
  • Not using a bookkeeper or professional accountant to help with your tax preparation/filing.

So what do you do if you find yourself unprepared for this year’s return? Continue reading →

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