Insurance. Did you recoil when you read that? I know, it's not the most interesting topic but let me just repeat what I am sure you already know - it's a damn important one.
It can be overwhelming when you decide to get some insurance. I think that this can be one of the biggest obstacles, even bigger than affordability. There are so many different kinds of insurance - let's take a quick look at the 3 main categories of insurance:
1. Life Insurance - paid upon death
2. Disability Insurance - paid upon injury or illness
3. Critical Illness Insurance - lump sum paid upon serious illness
Now, within these 3 main categories of insurance there are many different types in each category you can apply for. By "type" I mean the kind of insurance can vary. For example the insurance can be temporary or permanent. There are many different options, including length of coverage, amount of coverage, pay out options, cash value, return of premium (getting money back that you paid) etc.
A few things you need to know before you decide on which insurance you want/need, are:
1. What do I need the insurance to cover? (Income, bills, debt, future income for family, savings, taxes, final expenses like funeral etc.)
2. How much money would I need if (I died, was sick, couldn't work etc)?
3. Do I want this coverage to be there for a certain period of time (10 or 20 years?) or for my entire life?
What I have found over the last 9 years in this "business" is that often when people need insurance, they cannot get it. What do I mean by that? Well, when someone has had a health "scare" either for themselves or for a family member that reduces their ability to get insurance because they are a higher health risk. My advice - do not wait until you have had a scare, get insurance before you need it while you are healthy. This is called "guaranteeing your insurability". Do it.
Most of us know what life insurance is. You die, your beneficiary gets paid the amount you selected. But do you know what Critical Illness insurance is? With critical illness you get paid a "living benefit" which means, you have been diagnosed with a critical illness, you are still alive and you get a lump sum pay out. With how many people are getting sick and living through it these days - I would say this type of coverage has become more and more important. I would even go as far as to say it's vitally important and could mean giving you options that could save your life.
When you are looking in to insurance there are things to consider:
1. Is this a personally owned product or is this creditor protection (do you own the policy despite where you bank, work or live?)
2. Read the fine print - know when it won't pay out and when it will
3. Find an advisor you trust with your life and can tell anything and everything to - who is thorough and provides education not just opinion or tells you what they think you should do.
4. Where can you find money in your budget for the coverage you need? Most of us have a leaky faucet problem when it comes to money and usually we can find some area in our budget to tighten up.
5. Understand yours and your families needs. This is a discussion for all partners to be present at.
Deciding on which type of insurance you need can take 2-4 appointments on average. There is discussion, understanding, education and decision making that needs to happen.
Preparing for the application process: (you want to do a full medical questionnaire, this helps ensure that your insurance is in fact in place and not subject to underwriting at time of claim aka when you die or get sick).
1. Know your health history
2. Know your family history
3. Know your financial situation - income, net worth (assets - liabilities), and how much insurance you need as mentioned above.
We insure our cars, our homes, and everything else WE pay for - it's high time we properly insured ourselves so that when the poop hits the fan, we are prepared.
Q: What's your biggest asset?
A: YOU.
Grace Edison
Lakelse Financial
4546 Lakelse Ave
Terrace, BC
250-635-6166
Wednesday, October 14, 2015
Wednesday, November 7, 2012
Financial Tip of the Day: And with Gratitude we shift our Attitude.
Financial Tip of the Day: And with Gratitude we shift our Attitude.: Bonjour! And isn't it a good day? The sun is shining in the Okanagan - in NOVEMBER! It's a miracle. Tomorrow will be the first day of us t...
And with Gratitude we shift our Attitude.
Bonjour! And isn't it a good day? The sun is shining in the Okanagan - in NOVEMBER! It's a miracle.
Tomorrow will be the first day of us taking steps together to shift our focus and therefore shift our day-to-day experience with our money (or with anything for that matter).
I for one, am really excited! I am excited to facilitate this journey and I am excited to continue working on my own path to financial happiness and freedom. Thank you for joining me on this!
I started full on doing gratitude work back at the beginning of September and within about a week I started noticing a tremendous difference in what I was noticing! Noticing my noticing, pretty unreal stuff.
Anytime that I started to feel negatively towards something - whether it was spending money, the piles of crap in my house, my friendships, being a mom (insert anything you can feel negatively about) ANYTHING & EVERYTHING - I dug down deep to find something, no matter how small, that I could be grateful for. Oh wow - what a shift!
Ex: If I was feeling like I didn't have much money, I would find something I already had that I loved - like my car. She's a 2003 Toyota carola missing one hub cap, with a bite out of the steering wheel (from the dog) - but damn she can run. This is a perfect example because often I wish for a new car and then I start feeling negative, but then I think about all the places my good'ol Carola has gotten me and how very little money I have to put into her and I am beaming with delight. (This is not an exaggeration, believe it or not).
I have to be honest here for a second (big shock eh?). But seriously, when I first started reading about how gratitude changes your experience I didn't get it. How will I be happier with what I have, just by being thankful for it? I suppose I thought I was already thankful in some instances, but really what was happening was that I kept seeing the lack, I kept seeing what I didn't have yet.
We are surrounded by consumerism. Don't get me wrong, we need things, we like things - that is why we make money so that we can go out and get them! But hidden in that consumerism is the message of extremism. We are not trained or conditioned to believe that we are enough, that we will ever have enough and that we can be happy right where we are. Again, I just need to make it clear that I am not implying that services and products can't add to our lives and bring freedom, change and happiness. However, what I am suggesting is that in order to make the right choices, reduce impulse buys - or buying for the wrong reasons, we really need to stop and recognize that happiness lies within our reach every moment of everyday - no matter what we have or don't have.
* You may read this and think that there is no issue you need/want to address. I totally know that feeling. I invite you to notice when you ignore a negative feeling. I have found by allowing it to happen, I can better understand it, disarm it and move beyond it. Most people I speak to about this initially don't feel that they need to make change - the truth is we all have room to enhance or improve and if nothing else you will be adding a super positive practice into your busy day!
Gratitude melts my complaints. It softens my furrowed brows when I feel that an injustice has taken place. When I feel grateful, not enough turns into plenty.
Some of this I can't explain, it's just a feeling - an opening of my heart.
The transformation that is taking place in my life right now has been a long time coming. I know now that this has always been the missing link. That in order for me to reach for what I want I need to find relief in where I am. Lack of gratitude breeds emotional distress and paralysis. It enourages disbelief in yourself, what life has to offer and it robs you of simple pleasures.
After the first month of morning and night gratitude reflections, I actually started writing down things I used to hate. This might sound confusing but what happened was that times of change, transition and even bad days became something I honoured because I knew that without them the good could never come.
The flowers need the rain, as well as the sun in order to blossom. I was able to see how crucial the crappy days were because they broke the path in for the good days. When the good days are here, I not only see them more clearly but I relish in all their glory with a big ass smile on my face.
My journey has been a trecherous one. I don't know how many of you know the depths of my depression but I just need to express my profound passion for helping others move past what is debilitating for them. We all suffer, I hope to be able shed some light for you in those times so that you can navigate through them to look back from the top of your mountain in awe of all your perserverence.
With love and gratitude,
Grace
Tomorrow will be the first day of us taking steps together to shift our focus and therefore shift our day-to-day experience with our money (or with anything for that matter).
I for one, am really excited! I am excited to facilitate this journey and I am excited to continue working on my own path to financial happiness and freedom. Thank you for joining me on this!
I started full on doing gratitude work back at the beginning of September and within about a week I started noticing a tremendous difference in what I was noticing! Noticing my noticing, pretty unreal stuff.
Anytime that I started to feel negatively towards something - whether it was spending money, the piles of crap in my house, my friendships, being a mom (insert anything you can feel negatively about) ANYTHING & EVERYTHING - I dug down deep to find something, no matter how small, that I could be grateful for. Oh wow - what a shift!
Ex: If I was feeling like I didn't have much money, I would find something I already had that I loved - like my car. She's a 2003 Toyota carola missing one hub cap, with a bite out of the steering wheel (from the dog) - but damn she can run. This is a perfect example because often I wish for a new car and then I start feeling negative, but then I think about all the places my good'ol Carola has gotten me and how very little money I have to put into her and I am beaming with delight. (This is not an exaggeration, believe it or not).
I have to be honest here for a second (big shock eh?). But seriously, when I first started reading about how gratitude changes your experience I didn't get it. How will I be happier with what I have, just by being thankful for it? I suppose I thought I was already thankful in some instances, but really what was happening was that I kept seeing the lack, I kept seeing what I didn't have yet.
We are surrounded by consumerism. Don't get me wrong, we need things, we like things - that is why we make money so that we can go out and get them! But hidden in that consumerism is the message of extremism. We are not trained or conditioned to believe that we are enough, that we will ever have enough and that we can be happy right where we are. Again, I just need to make it clear that I am not implying that services and products can't add to our lives and bring freedom, change and happiness. However, what I am suggesting is that in order to make the right choices, reduce impulse buys - or buying for the wrong reasons, we really need to stop and recognize that happiness lies within our reach every moment of everyday - no matter what we have or don't have.
* You may read this and think that there is no issue you need/want to address. I totally know that feeling. I invite you to notice when you ignore a negative feeling. I have found by allowing it to happen, I can better understand it, disarm it and move beyond it. Most people I speak to about this initially don't feel that they need to make change - the truth is we all have room to enhance or improve and if nothing else you will be adding a super positive practice into your busy day!
Gratitude melts my complaints. It softens my furrowed brows when I feel that an injustice has taken place. When I feel grateful, not enough turns into plenty.
Some of this I can't explain, it's just a feeling - an opening of my heart.
The transformation that is taking place in my life right now has been a long time coming. I know now that this has always been the missing link. That in order for me to reach for what I want I need to find relief in where I am. Lack of gratitude breeds emotional distress and paralysis. It enourages disbelief in yourself, what life has to offer and it robs you of simple pleasures.
After the first month of morning and night gratitude reflections, I actually started writing down things I used to hate. This might sound confusing but what happened was that times of change, transition and even bad days became something I honoured because I knew that without them the good could never come.
The flowers need the rain, as well as the sun in order to blossom. I was able to see how crucial the crappy days were because they broke the path in for the good days. When the good days are here, I not only see them more clearly but I relish in all their glory with a big ass smile on my face.
My journey has been a trecherous one. I don't know how many of you know the depths of my depression but I just need to express my profound passion for helping others move past what is debilitating for them. We all suffer, I hope to be able shed some light for you in those times so that you can navigate through them to look back from the top of your mountain in awe of all your perserverence.
With love and gratitude,
Grace
Wednesday, October 24, 2012
NEW CHALLENGE!
As we move into fall and closer to Christmas, Erin and I have been scratching our heads as to how to help our clients move stress free and even joyously into what can potentially be a very overwhelming time of year. No matter how much we tell ourselves this year will be different, the fact is that the pressure creeps up on us and deteriorates the lovely image we had of the holiday season. Am I right?
Clients are always looking for ways to feel better about their budget, get organized and relieve financial pressures. Over the past 5 years I have been searching for a way to change my own finances, to relieve the build up of guilt and worry. In my opinion, financial stress can bleed into many other areas - relationships, families, health issues and an overall feeling of despair and unhappiness.
As I have always said, I am by far the hardest client I have ever had to deal with! I know what needs to be done, yet I rebel against my own knowledge. I have tried SO MANY different ideas and tactics to on myself to see what works. SO, a little over a month ago I started doing some daily exercises in the morning and at night that have drastically changed not only my outlook on my finances, but also the bottom line of my budget.
The foundation of these exercises is gratitude, and helps you work towards shifting your perspective. Once there is a shift in perspective, the feelings surrounding money will change and eventually the flow of income and expenses will also change. I have truly seen and felt the benefits of this work AND on top of it all it really flows into the rest of your life - causing everyday thoughts to shift from complaints to gratefulness.
I know that there isn't one day that goes by when you don't think about money. You swipe your card for gas, pay your mortgage/rent, pick up coffee or ponder a big purchase. This task is to help people in all walks of life no matter what your income may be, we all could use a fresher look on those bucks in and bucks out.
I want to help you get off the hamster wheel. Free yourself from the daily stress, guilt and frustration. This isn't an overnight trick or wave of a magic wand. I wish it was, but I know myself my journey has been a long treacherous windy one. I have tried everything from sea to sky, and I have been deeply depressed and unhappy. I can honestly and openly say I know now what helps to break up those deep dart roots of habitual destruction.
No matter how great of a plan I put into place for someone, if the beliefs and perspectives don't change than we will be forever revisiting the same underlying issues in slightly different ways. I want to help you change from the ground up and inside out in an everlasting satisfaction kind-of-way.
I am in the process of working towards adding Financial Coaching (officially) to my business which will allow me to work with clients all over the place over the phone on how to revamp their finances.
For now, we will put this challenge out there for anyone willing to give it a shot! I highly recommend and encourage you to take part. No one will know, or see it - it's for you to do privately but please feel free to share your experience.
So here are the requirements to participate:
Starting November 1st we will ask that you:
1. Find 5-10 things in the morning and 5-10 things at night that you are grateful for, in regards to your finances
- this can be anything from things you own, food you eat, income you bring in, money you received that you weren't planning on, bills that come from services provided for you. Look for any way possible to find gratitude in your day to day banking
- the focus is to make a conscious decision before you swipe your card or hand over cash that you are thankful for whatever it is you are receiving. When you pay a bill, think about how nice it was to have the services that were provided to you.
Ex: When you pay your phone bill, instead of thinking "wow that's so high or so expensive, I hate this bill!" Try "I am grateful to have had the ability to talk to my friends, send messages and check my emails at leisure all through the month, this bill was worth it."
If that's difficult, perhaps you don't really want or need the service? If it seems to high, think about phoning to make adjustments to your billing. What can you remove or change to make the cost match up with your expectation of that service?
2 - When you feel negatively about your bank statement, income, purchase or expenses - you will write down something you can find to be grateful about. Working from the negative feeling just up one or two steps towards optimism.
3 - Once a week write about why you are grateful for your source of income and try to have it be something new. Ex: I love my job because I really enjoy the people I work with or I love pay day because I get to take my kids out for dinner OR I love my student loan because it enables me to get the education I want so that I can start making a difference in my field.
The goal: Reach for the positive thought, wherever it may be.
The Reward: On December 15th (so a month and a half) Erin and I will ask for a summary of your experience over the 60 days. You can email or write to us as short or as long as you need it to be. Highlight what you discovered, what was helpful and how you felt changed by this experience. Share with us if you found your budgeting got easier or if you spent less money because you noticed you were buying things to fill a void that was no longer there (which is what I found). We want to hear from you! Although, I believe, everyone who participates will feel rewarded by the experience - we will select from the submitted letters a winner to receive a $150 prepaid Visa card!
*Recommended book: The Magic by Rhonda Byrnes
Clients are always looking for ways to feel better about their budget, get organized and relieve financial pressures. Over the past 5 years I have been searching for a way to change my own finances, to relieve the build up of guilt and worry. In my opinion, financial stress can bleed into many other areas - relationships, families, health issues and an overall feeling of despair and unhappiness.
As I have always said, I am by far the hardest client I have ever had to deal with! I know what needs to be done, yet I rebel against my own knowledge. I have tried SO MANY different ideas and tactics to on myself to see what works. SO, a little over a month ago I started doing some daily exercises in the morning and at night that have drastically changed not only my outlook on my finances, but also the bottom line of my budget.
The foundation of these exercises is gratitude, and helps you work towards shifting your perspective. Once there is a shift in perspective, the feelings surrounding money will change and eventually the flow of income and expenses will also change. I have truly seen and felt the benefits of this work AND on top of it all it really flows into the rest of your life - causing everyday thoughts to shift from complaints to gratefulness.
I know that there isn't one day that goes by when you don't think about money. You swipe your card for gas, pay your mortgage/rent, pick up coffee or ponder a big purchase. This task is to help people in all walks of life no matter what your income may be, we all could use a fresher look on those bucks in and bucks out.
I want to help you get off the hamster wheel. Free yourself from the daily stress, guilt and frustration. This isn't an overnight trick or wave of a magic wand. I wish it was, but I know myself my journey has been a long treacherous windy one. I have tried everything from sea to sky, and I have been deeply depressed and unhappy. I can honestly and openly say I know now what helps to break up those deep dart roots of habitual destruction.
No matter how great of a plan I put into place for someone, if the beliefs and perspectives don't change than we will be forever revisiting the same underlying issues in slightly different ways. I want to help you change from the ground up and inside out in an everlasting satisfaction kind-of-way.
I am in the process of working towards adding Financial Coaching (officially) to my business which will allow me to work with clients all over the place over the phone on how to revamp their finances.
For now, we will put this challenge out there for anyone willing to give it a shot! I highly recommend and encourage you to take part. No one will know, or see it - it's for you to do privately but please feel free to share your experience.
So here are the requirements to participate:
Starting November 1st we will ask that you:
1. Find 5-10 things in the morning and 5-10 things at night that you are grateful for, in regards to your finances
- this can be anything from things you own, food you eat, income you bring in, money you received that you weren't planning on, bills that come from services provided for you. Look for any way possible to find gratitude in your day to day banking
- the focus is to make a conscious decision before you swipe your card or hand over cash that you are thankful for whatever it is you are receiving. When you pay a bill, think about how nice it was to have the services that were provided to you.
Ex: When you pay your phone bill, instead of thinking "wow that's so high or so expensive, I hate this bill!" Try "I am grateful to have had the ability to talk to my friends, send messages and check my emails at leisure all through the month, this bill was worth it."
If that's difficult, perhaps you don't really want or need the service? If it seems to high, think about phoning to make adjustments to your billing. What can you remove or change to make the cost match up with your expectation of that service?
2 - When you feel negatively about your bank statement, income, purchase or expenses - you will write down something you can find to be grateful about. Working from the negative feeling just up one or two steps towards optimism.
3 - Once a week write about why you are grateful for your source of income and try to have it be something new. Ex: I love my job because I really enjoy the people I work with or I love pay day because I get to take my kids out for dinner OR I love my student loan because it enables me to get the education I want so that I can start making a difference in my field.
The goal: Reach for the positive thought, wherever it may be.
The Reward: On December 15th (so a month and a half) Erin and I will ask for a summary of your experience over the 60 days. You can email or write to us as short or as long as you need it to be. Highlight what you discovered, what was helpful and how you felt changed by this experience. Share with us if you found your budgeting got easier or if you spent less money because you noticed you were buying things to fill a void that was no longer there (which is what I found). We want to hear from you! Although, I believe, everyone who participates will feel rewarded by the experience - we will select from the submitted letters a winner to receive a $150 prepaid Visa card!
*Recommended book: The Magic by Rhonda Byrnes
Wednesday, August 1, 2012
Debt? Who cares...right?
A very predominant part of my job is talking to clients about debt. It's also a huge hurtle when trying to set my clients up for future success. Debt general sits on the table in between us like an over sized stinky elephant.
"How did we get here?" floats through the air silently after the initial budget is done. Heaviness followed by furrowed brows and uncomfortable shifting in seats. Debt is a sneaky SOB and in all honesty we are set up to fail. No, let me correct myself - we are TRAINED to fail.
I often feel like I am the bad cop, having to show my clients the real picture, the one the bank or the lender didn't show them when they signed over their entire pay cheques to finance (fill in blank). I want to scream "Don't feel bad! I can help! I just have to show you the problem in order for us to know how to fix it." I even tried skipping over the income and expenses part of planning so I wouldn't have to see the long faces and disheartening slowly sinking in. But how can you fix something when you don't know what's broken?
Our generation is like no other. We don't just want everything - we are entitled to it! We have made a silent vow to not live like our parents did, waiting for that one day down the road when we can finally "live". The pendulum has swung so far in the opposite direction and we are burying ourselves fast. We scrunch up our noses at washing out zip lock bags. Don't even get me started on our lack of respect for natural resources, gas and food. We want that big shiny thing - the carrot dangling, never quite reachable. We ride around on metaphorical bulldozers, nothing stopping us from what we want.
I'm being harsh because it slapped me in the face hard when I started this job. I kept asking myself "why are my peers so frigging stubborn? Don't they see? Why wouldn't they want to retire while they can still enjoy their lives. Why don't they want to protect their income - it's their biggest asset!"
I too struggle with this sense of entitlement that comes with being born in the 70's, 80's and 90's. I hope we can turn it around, because I fear for our children if we keep living like this.
A client said to me " I know I can afford to set aside this much, and that I have to. But it scares me, it scares me that maybe I can't afford to make my debt payments, and then what would my friends think if I lost my house?".
It hit me like a ton of wet diapers.
We are the product of constant social pressure. We need to appear like we have it all together and are successful beyond our wildest dreams.
Side note: When I see clients who are saving and are on par to be successful, they live modestly - but more importantly consciously. They are careful and frugal. Often the richest clients appear to have the least. So why do we think that having a big bouncing shiny truck is somehow conveying the message "I'm a big deal"?
I will leave that for you to ponder.
I feel, not only obligated, but instinctual driven to help my peers, to save them from themselves so that someday I can sit on the beach with them and gaze upon our glorious grandchildren playing the water. The alternative is trying to play retirement-savings-catch-up at age 50 (nearly impossible unless you win the lottery) or worse having to leave work because of illness or injury earlier than you can afford to. Trust me, this game is not a fun one to play.
Please listen and heed my warning. I care so much for your financial well being because I am in it too. I live what you live.
Recognize that spending is like an addiction that is no different than any other. We are lead to believe that buying those new lulu lemon pants, will make us happier. I admit they do make your butt look nice, but the happiness is fleeting.
This is the wake up call you have been waiting for.
Anyone can pay themselves first, no matter what they make.
Some steps to help release the holds of impulse shopping:
Be conscious of your thoughts surrounding money/spending wants and needs.
Be aware of your emotional state.
Give yourself 10 minutes before you react
Write why your purchase will improve your life.
Do you have anything like it at home that you could search for?
Have a rule of getting rid of things before you bring more in.
Think about the things you desire to have in this light : Everything we own we put energy into. We have to know where it is when we need it, we have to clean it, we have to maintain it, we have to organize it, and most of all we have to "live in/amongst it". Part of reducing unnecessary spending is about de-cluttering your home, car and desk.
This is all about deservedness. Do you feel like you deserve long lasting happiness through financial freedom?(* see definition below) or do you want the short term quick fix high from the rush of buying something you know deep down you don't need and cannot afford? The choice is yours.
"Money is energy. It is an exchange of services. It is matter and form. It has no meaning of itself except what we give it and believe about it. We have so much 'stuff' about money, but it really is about what we believe we deserve." ~ Louise L. Hay
* Financial Freedom: is the freedom to chose. To live without restraints of debts holding you back.To take days off for family, sickness and vacation. To live a stress reduced life. To chose when not if you retire, or semi-retire.
"How did we get here?" floats through the air silently after the initial budget is done. Heaviness followed by furrowed brows and uncomfortable shifting in seats. Debt is a sneaky SOB and in all honesty we are set up to fail. No, let me correct myself - we are TRAINED to fail.
I often feel like I am the bad cop, having to show my clients the real picture, the one the bank or the lender didn't show them when they signed over their entire pay cheques to finance (fill in blank). I want to scream "Don't feel bad! I can help! I just have to show you the problem in order for us to know how to fix it." I even tried skipping over the income and expenses part of planning so I wouldn't have to see the long faces and disheartening slowly sinking in. But how can you fix something when you don't know what's broken?
Our generation is like no other. We don't just want everything - we are entitled to it! We have made a silent vow to not live like our parents did, waiting for that one day down the road when we can finally "live". The pendulum has swung so far in the opposite direction and we are burying ourselves fast. We scrunch up our noses at washing out zip lock bags. Don't even get me started on our lack of respect for natural resources, gas and food. We want that big shiny thing - the carrot dangling, never quite reachable. We ride around on metaphorical bulldozers, nothing stopping us from what we want.
I'm being harsh because it slapped me in the face hard when I started this job. I kept asking myself "why are my peers so frigging stubborn? Don't they see? Why wouldn't they want to retire while they can still enjoy their lives. Why don't they want to protect their income - it's their biggest asset!"
I too struggle with this sense of entitlement that comes with being born in the 70's, 80's and 90's. I hope we can turn it around, because I fear for our children if we keep living like this.
A client said to me " I know I can afford to set aside this much, and that I have to. But it scares me, it scares me that maybe I can't afford to make my debt payments, and then what would my friends think if I lost my house?".
It hit me like a ton of wet diapers.
We are the product of constant social pressure. We need to appear like we have it all together and are successful beyond our wildest dreams.
Side note: When I see clients who are saving and are on par to be successful, they live modestly - but more importantly consciously. They are careful and frugal. Often the richest clients appear to have the least. So why do we think that having a big bouncing shiny truck is somehow conveying the message "I'm a big deal"?
I will leave that for you to ponder.
I feel, not only obligated, but instinctual driven to help my peers, to save them from themselves so that someday I can sit on the beach with them and gaze upon our glorious grandchildren playing the water. The alternative is trying to play retirement-savings-catch-up at age 50 (nearly impossible unless you win the lottery) or worse having to leave work because of illness or injury earlier than you can afford to. Trust me, this game is not a fun one to play.
Please listen and heed my warning. I care so much for your financial well being because I am in it too. I live what you live.
Recognize that spending is like an addiction that is no different than any other. We are lead to believe that buying those new lulu lemon pants, will make us happier. I admit they do make your butt look nice, but the happiness is fleeting.
This is the wake up call you have been waiting for.
Anyone can pay themselves first, no matter what they make.
Some steps to help release the holds of impulse shopping:
Be conscious of your thoughts surrounding money/spending wants and needs.
Be aware of your emotional state.
Give yourself 10 minutes before you react
Write why your purchase will improve your life.
Do you have anything like it at home that you could search for?
Have a rule of getting rid of things before you bring more in.
Think about the things you desire to have in this light : Everything we own we put energy into. We have to know where it is when we need it, we have to clean it, we have to maintain it, we have to organize it, and most of all we have to "live in/amongst it". Part of reducing unnecessary spending is about de-cluttering your home, car and desk.
This is all about deservedness. Do you feel like you deserve long lasting happiness through financial freedom?(* see definition below) or do you want the short term quick fix high from the rush of buying something you know deep down you don't need and cannot afford? The choice is yours.
"Money is energy. It is an exchange of services. It is matter and form. It has no meaning of itself except what we give it and believe about it. We have so much 'stuff' about money, but it really is about what we believe we deserve." ~ Louise L. Hay
* Financial Freedom: is the freedom to chose. To live without restraints of debts holding you back.To take days off for family, sickness and vacation. To live a stress reduced life. To chose when not if you retire, or semi-retire.
Tuesday, March 13, 2012
It's good to have it, but do you want it to be your only option?
Group benefits aka Work benefits - you know that booklet you get at work, but don't really know much about except for how much they cover for prescriptions and dental? Well, I must say, it's something we review for client's A LOT, mainly because they "don't want to read the fine print". Group benefits can be great, and they can also be confusing - and at times a big shock when what we thought we had, we didn't in fact have...
My general rule of thumb is that group benefits are a bonus and should work along side your personally owned plan. They should never be all you have. Never ever.
Some of the great things about group benefits are:
- if you are unable to get personally owned insurance such as, life insurance or disability because of pre-existing medical conditions or risky lifestyle, they can really be a financial life saver. You don't have to qualify medically or do a questionnaire for you work benefits.
- As an employer it will really help your employees feel valued and can be a major reason why they will stay with your business or company for the long haul.
- low/no cost to you as the employee and good value if you know the ins and outs of your plan and use it to it's full advantage
A statistic from 2007 states that 61% of Canadians (Sanofi Adventis Health Care survey) would prefer group benefits over a $20,000 annual raise. I put this question to you on my facebook status to find out what you think?
Because I provide both group benefits and work with clients on their personally owned and administered plans, I see is people relying too much on their group benefits. Some things to consider are as follows:
- what if you leave that job? You cannot take your benefits with you and if you are older and in worse medical condition it may be very expensive if not damn near impossible to get your own coverage.
- How much insurance do you really have? Most people think it's a lot more than it is. Typically it's one time your annual salary. You can purchase more but I would always recommend purchasing more that your personally own, not through the benefits because again it's tied to your employment there. To put it in perspective if you have a mortgage here in Kelowna (400,000 give or take) and two children you likely need more than 1,000,000 dollars worth of life insurance. How far does one year of your annual salary go? Not far...
- What if your company decides that they can no longer afford or do not see benefit in the group plan any more? The ceiling might not look so nice looking up after having the carpet pulled out from under you.
The overall point here is you are responsible for your own protection and security when it comes to your finances. You are the energy source that puts your pants on one leg at a time and goes to work. If you couldn't do that who would pay your basic bills never mind the fluffy stuff? You need to understand and have someone review your booklet with you in order to figure out what it provides for you and what you may need to do on your own. The "no surprise when the shit hits the fan factor" is extremely important. No one likes to submit a claim and think they are getting money back, or covered while they were off only to find out it's not. Won won...(you know the sound?)
As an employer, it says a lot when you offer up these plans to your employees. It can set you apart from other companies or the possibility of losing employees during recessions to the abundance of jobs in Alberta. To take it a step further, you can also (I highly recommend) have your plan advisor come in and work individually with your employees so that they know the plan really well and also know where they need to cover themselves with their own dollar - this is at NO extra cost to you. To provide this kind of service to your employees is a gift they will have for life. I'm sorry if that sounds cheesy but it's ultimately true.
The problem with group benefits can be that you would rather chose natural health care over "Western medicine" (prescriptions, medical doctors etc.) Often times you get the best coverage when it comes to prescriptions and you may feel backed into a corner because you can't afford to do the alternative. I speak from experience on this one and I mean to offend no one here. I haven't used our prescription coverage in 4 years and my plan doesn't cover Chiropractic, acupuncture or massage. To be honest, I haven't used my plan at all since I have had it and as someone who is self employed I pay for the ENTIRE cost, but I am required to have it.
My last point is this: It is always great to have coverage at work but you need to see if the coverage matches up with your health care needs/wants. If you are someone who would like to take $100,000 and go to Spain for cancer treatment then you need to have personally owned coverage because you get to chose where the money goes.
My recommendation is this - take some time to think about "the shit hitting the fan situation" and consider what you would like to do if you were sick or seriously injured. You don't want to be caught in a situation that you haven't thought about and try to make the best decision when your wallet is staring you in the face. The big decision is whether or not you are happy to go through government funded and group benefit funded treatment or if you would rather weigh out your options and chose from a large array of alternative treatments.
As someone brought up in my status question about what you rather...would you take the money and just buy new flashy crap or would take some or all of it and get your own plan in place protecting you in a way you see fit (Did you know there are plans and policies that will allow you to have coverage and also get all your money back at retirement!). It's always easier to have it done for us, however not always what is best. If you make your own choices as to where you money goes, it then works harder for your specific goals and needs!
With gratitude,
Grace & Erin
Thursday, March 8, 2012
The butcher the baker the candlestick maker, they all have an important specific job!
In speaking with my mother this week regarding taxes, I realized that it's one of those areas that provides so much confusion that people avoid or give up on trying to keep track and get ahead. The toughest part is to find someone who has every possible professional title. Then you might end up with the right answers but no one can possible be an expert in all areas - we just don't have that kind of time. You really want people to be experts in their field, not trying to juggle many different roles. See, each of us - financial advisors/planners, accountants, lawyers, realtors and the like know a lot about one area and a bit about the others. What I have found my client's really need is a team of people who can communicate to give you the best well rounded advice out there.
To be honest, your professionals should be suggesting this right from the get go - that they are willing or would like to meet with the other advocates you have working for you in your life's biggest decisions and or finding those people who will go to bat for you in each area of your life. If the only thing these people have in common is your best interest, then that's all you need.
When it comes to taxes, there isn't one specific person who is going to have all the answers. Accountants are tax specialists but they don't always (and rarely) know all the tools for you to use in order to reduce tax. Life insurance is the biggest one that they don't often know about.
As far as financial advisors go, we know what can reduce your taxes but we need to know more about how you report and what your business structure looks like so in comes the accountant and so on.
It can be compared to dentists, doctors, naturopaths, chiropractors, accupunturists etc. All of these people want to help you become healthy but you wouldn't go to your dentist for a pap/prostate exam. I know that's extreme but you get the point right?
So instead of trying to find all these people, ask a professional you trust to help build your team for you. If they care a lot about taking care of you in a holistic way, they will have this team built and at your disposal.
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