Tag Archives: spending and savings plan

End Financial Avoidance and Reclaim Your Power Today

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

Action Changes Things edited blue

 

Most people procrastinate from time to time, it’s human nature to put off tasks we believe to be unpleasant or time consuming. But the habitual putting off of our responsibilities, especially our financial responsibilities, transforms procrastination into avoidance. Avoidance —Stage 2 of the 7 Stages of Financial Well-BeingTM —is one of the most potentially damaging stages on the path to financial fulfillment.

Are you in Avoidance?

It’s essential to understand that financial well-being comes with a deeper understanding of where you stand with money, emotionally and financially, developing concise and attainable goals, getting organized and implementing a manageable plan to move forward. The 7 Stages of Financial Well-BeingTM is a framework that will help you better understand where you are, and what actions to take, as you move towards Financial Fulfillment. 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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Success Story: Robin and James – from knowledge to action

Note: The couple’s names have been changed for privacy.

Debt ball and chain openedRobin and James were young professionals in their 30’s when they contacted Money Coach Kathryn Mandelcorn. They were frustrated because they made a combined income over $150,000 but they had $45,000 in consumer debt and felt they weren’t adequately saving for their future. They didn’t see how they could pay off the debt and invest for retirement, without sacrificing their dream to buy a home and invest in further education. They felt like travel and other leisure activities were completely off the table if they were to have any hope of turning things around.

“When I met Robin ad James, I could see they were a very savvy couple,” says Kathryn. “They knew a lot about investing, they had a good idea of what they should be doing, but they were going in circles financially. They were paying down debt then going right back in. There was a big disconnect between knowledge and implementation.” Continue reading →

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The biggest money mystery – why do I do what I do? (Part one)

By Melanie Buffel, BA Psych, MBA candidate

woman with question markJill is a single woman in her early 40’s. She enjoys her job and has interesting hobbies. She has good friends and family who often remind her how fabulous she is. Her cat seems to think so too, at least when he’s hungry.

Jill makes $75,000 a year, significantly more than the average Canadian income of $48,250. Yet she feels trapped by her money, always chasing her debt and never managing to put anything away in savings. How do other people manage she wonders?

I’m not giving any secrets away if I tell you it is relatively easy to create a spending and savings plan for Jill. We can add up all the numbers and create a balanced plan that provides a good lifestyle today as well as put money away for a dream vacation, some renovations on her condo and toward her retirement. We can easily make the numbers add up on paper. But then the real work begins. Continue reading →

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Are you on Track with your Money?

Now is a good time to assess your financial health and knowledge. These days there’s a chill in the air and it’s not just the wintry weather!

Across Europe it has been the chill of economic uncertainty as Europe wavers on the brink of a debt crisis. Here at home, the Occupy protesters are a reminder of discontent that has been brewing over corporate bailouts and executives payouts.

With all this turmoil people are probably wondering about their future. They’re asking themselves, do I have a sound financial plan?  Is my financial house in order? Do I even know what I’m doing?

We’re happy to tell you, in our experience as money coaches, we have found people usually know more than they think they do. So while it’s no time to throw caution to the winds, relax a little — you probably know more than you think.

Here’s a five-point check list for the basics:

1) I have completed a net worth statement: I have added up the value of everything I own (my assets) and what I owe (liabilities) to come up with my net worth.

2) I manage my cash flow, tracking money that comes in and all my spending.

3) I have a spending and savings plan so I know money is there to pay the bills when they come due and I can make choices about whether it’s more important to save for a designer dress or if I’d rather put that money towards a ski trip.

4) I have built up a good credit history and I pay my credit card off in full every month so I am not paying high interest rates to fund buying that is beyond my means.

5) I have an investment and retirement plan which I review regularly and I seek professional advice because it’s worse to remain in ignorance than to worry about asking questions for fear of looking dumb.

If you have answered yes to most of the questions, you’re on your way.

You have a handle on your finances and are aware of the some of the key issues that can make a difference between financial security and not sleeping at night because you’re worried about paying the bills.

If you didn’t answer yes to all, don’t be too hard on yourself, you’re not alone – but it is time to take control.

Many of the respondents in the Desjardins personal finance index survey who were aged 45 to 64 had no retirement savings plan. And 40 per cent in that age group who were still working had no idea how much they’d need to live on when they retired.

As money coaches, we can help you discover those answers and take responsibility for your own finances. We’re not here to judge but to empower you with the knowledge to take control of your financial future.

Call us and take a step towards securing your financial future.

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