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

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

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.

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

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.

Can I buy the blue dirt bike now?

March! Really? Already you say? I know right.

March is actually an excellent month to get going on those things you said you wanted to do in the new year but haven't been able to come out of the winter fog yet to do.

Most of us are well on our way to recovering from Christmas and budgets and financial plans are starting to seem like a good idea again. I think it's always a little scary and overwhelming to set out on the path to improvement. I mean haven't we tried to do this a thousand times?

Anything that I have tried to do or get better at in my life has always worked out much smoother and much further when I have someone supporting me and helping me along the way. It's basically someone who promises to not let you lose sight of your long term goals. Even those of us who do this for other people, such as myself, need others to encourage and support us.

Different perspectives and information are essential in growing and adapting to our ever changing lives. Someone who can take a look at your situation in an objective way will always shed new light on something you may have looked at a thousand times.

Recently, Oliver wanted a new blue dirt bike. He has been asking us non-stop, until finally we had to say "we don't have the money for that." It's the truth so we figured it would be the best reason to give him. He then ran off and came back with a quarter and said "I have my money, now can we get it?" We both looked at each other for the next answer to give him.

So, we explained to him that it takes time and patience to save enough money to buy things we want. We gave him a money counting piggy bank that is fairly large and told him every time he finds some money, to put it in his bank. I know, I know, he's only 3 but he does understand that he has to fill the bank before we can get the bike. Obviously it won't be enough but we will save along side of him and I think it will be a good lesson for all.

In teaching our children how to save and the value of time and money, we learn also. Sometimes when the student becomes the teacher we all learn and those lessons become ingrained in us enough to cause a major shift to happen. Seeing things from a different light can make the difference in changing our perspective.

If you want someone to support you in your journey to freedom, be it money or habits - we are here for you!

Effing bills right?

Paying for things we can't see sometimes causes a rotten taste to form in our mouths. Hyrdro, gas, extra long distance, insurance, home bills galore.

It seems so much easier to walk into a store and pick something out, try it on and then walk up and make an agreement with the store that buy handing them cash (or a plastic card) we can legally become the owner of that item. The gratification is immediate, the need satiated.

When our bills come in we groan. I even sometimes avoid my community mailbox because I know what lies inside, in the depths of that little silver locked box. The fact that it has a key almost ruins it because you want to believe that boxes that are subject to lock and key have treasures inside! Wrong. Instead you open it up peer inside and see "shaw", "rogers", and "fortis" staring back at you. Then you quickly think of your bank account and how you bought those really awesome boots last week and you may not be able to cover them all, or at least it won't be as exciting.

I read once (I think it was Louise Hay that wrote) about loving your bills, and committing to paying them on time. Appreciating what they give you that we so often take for granted. If your hydro was cut off you would surely be screwed in more ways than one.

I once wrote out a list of my bills (that I dreaded) and then wrote why I chose to be more accepting and appreciative of them. My phone bill, although sometime extremely high, allows me to talk to my parents across the country whenever I want, my sister in France and text my friends non-stop. I love my phone. Next, I wrote out my car insurance and how I am so glad I have it because if I was ever in an accident it would not only cover my vehicle but my injuries as well.

This holds especially true when it comes to our personal insurance and savings. Think of all that it can give to you, as you put money in your own pocket and protect your income and families well being.

If your employer suddenly stopped paying you, you would be choked ya? So think of it like being your own boss and paying yourself first. Even though you may not see the reward immediately, the gratification will be that much greater when you finally do find an exciting reason to use your hard earned and even harder saved moola.

Sometimes the most valuable things in life cannot be seen, measured or quantified. No one says "hey come check out how awesome my light is/how warm my house is". We go through our day to day lives taking all our privileges for granted. We never seem to have enough. Today when you are sitting at work, or changing a poopy bum think about the fact that you have a desk to sit at, and a new diaper to freshen up that bum, these are no small blessings. If you have to pay a bill be thankful for what was provided to you in advance, allowing you to pay after the fact. Send the money off with a sense of accomplishment that you worked hard to have that privilege and you are thankful for the warm nights, long phone conversations, shaw on demand movies and maybe that expensive porn you rented that got you in the mood or made you laugh?

Did she just say that? Ya, ya I did.

Disclaimer: I know the monetary system is totally wacked, I am just giving tips for living through it until we see/make change. Also I know that there are a whole slew of issues with porn, I am also not saying it's ethical.

I don't need help with that....or do I?

A lot of the time we are focused on product. What will this product provide for me? We look at price and we look at return on investment. Dollars in and Dollars out.

I realized last week when I was considering a sleep consultant to help us get a better system with the kids, to maximize everyone health and happiness when it comes to sleep and bed time, that I wasn't searching for a product but rather a service. This, my friends, is a different beast entirely.

I have read the "Selling the Invisible" by Harry Beckwith, where he talks about providing a service rather than a product you can see and touch and measure the effectiveness. But this was the first time in a long time that I was researching something I knew nothing about and had to gage the likely hood of me using this service based on so many things.

~ First, I had to decide why I needed this service - was there a problem, or and issue that I wanted to improve? The answer was most definitely a friggen yes. I really need sleep and so do the kids. I want to enjoy bedtime.

~Second. Was the service provider someone I could rely on and trust to help us? Was she offering what I was needing? Well, I searched her website and it looked wonderful. So many beautiful testimonials, not to mention she had been referred to me from someone with high praises. So I will check this one off as well.

~Third. Could I clearly understand her method, process and effectiveness? This was also laid out on her website and I spoke to her on the phone to find out how she thought she could help us, once I explained our individual needs. She was confident, and not only that - she finished most of my sentences, which let me know what we were going through was normal and she understood completely.

~Fourth, what was the cost and was I willing to pay the price? Her price was very well laid out and was a one time fee for $400 for a plan and instructions that will work and be effective for each family member involved. To me sleep is invaluable.

To be honest, in the beginning I didn't know what I wanted, I just knew there was a problem that was causing us stress. Because I have no idea how to make my situation better, I had to search for help. Most importantly, I had to first admit that what I am doing isn't working and that I don't know what else to do. I am not an expert on children, believe it or not, and I must be doing something wrong if we are still up in the night with our 3 and a half year old and bed time takes 2 hours plus. This is the hardest and most crucial part of moving beyond a problem - reaching out for help and admitting you can't quite figure it out on your own and then of course accepting this help graciously.

This is why services exist.

Personal trainers, life coaches, nutritionists, and counsellors alike - what they provide you cannot see, or touch but you can feel whether it is right for you and if it will be helpful to get you to your end goal. The people providing these individualized services are non-judgemental of your issues and they know a lot of people go through them, that is why they set out to help in that specific area. Look for signs of passion, commitment and a genuine desire to help - not what is in it for them (money or recognition).

I have a chart at my office that shows the difference for families of all age groups if they use an advisor and if they do not. The difference is staggering. Money is an emotional force driving us to do strange things - buy on impulse and false promises of making our lives better or easier. A lot of the time we see boxed products with flashy pictures and guarantees to make life better but we are still masking the root problem and that is where the help of a real human being can make the biggest difference in the world! Having a financial counsellor to help guide you to your own personal ideal success is you taking a stand for what you want and reaching out to someone who specializes in that area. And most of all, reaching out to someone who you feel cares very much for your financial security and happiness or just cares about helping and changing the lives of those around them - period.

Big love,

Grace & Erin

What are RRSP's and why is there a season?!?

Let's break this down. It's a bit boring but bear with me.

First off - taxes right! What a b*tch! "You don't pay tax, they take tax" as Chris Rock would say. We have taxes taken off our cheques and then we pay more tax when we go our and spend that reduced work dollar! Boo-urns.

So RRSP's - and tax here we go -

RRSP's stand for Registered Retirement Savings Plan.

What does Registered mean?

Well, you have declared to the government that you are taking action for your retirement and that means you won't be totally dependent on them for money!

You can choose any kind (portfolio mix and risk) or vehicle of investments and 'register' it. That means a mutual fund can be registered or non-registered and by the same token your stocks can also. People often say to us that they mutual funds, and that means they are RRSP's. Not necessarily - you can use any type of savings and register it.

They (the government) like this, and so they say "whatever you put into that registered savings plan, you will be allowed to take off your income at the end of this year and not pay tax on it."

This is why you get money back.

You paid tax on this money when it came off your pay cheque, so you get the tax you paid returned to you once you do your tax return.

Ex: If you made $40,000 in 2011 and paid tax on your pay cheques all year, then you contributed 10,000 into your RRSP's you will deduct 10K from 40K = 30,000 in income. So your tax bracket will be lower in some cases and also you will get back what you paid on that money in tax. So it's just a return of your taxes paid up front at the end. Clear as mud?

What's the catch?

You will have to pay tax on it later - when you finally use it as income, when you are retired or if you pull it out early for a major purchase (if you use it as a first time home buyers you have an exception to this rule). It's not a penalty per say, it's just you can't have that money without the government getting their precious taxes!! So if you use it now or later you will have to fork over the tax at whatever point you withdraw that money OUT of your RRSP's.

RRSP's are not the perfect or the only savings tool for everyone. We have to assess a few things to figure out if it's something that will benefit you. Our parents generation were brain washed a bit into thinking that RRSP's were the best and only way to structure their savings! Now they may find themselves with a pile of registered money that has never been declared as income and therefore the tax man is knocking the door down!

So, if you are wondering about RRSP's and or you think you may need some tax write offs (we can discuss this concept as well) this year because your income was high or you moved up a tax bracket - please give me a call. I would be happy to clear this up for you and give you some tax planning ideas. I promise to make this as painless as possible, and well you know me - I will make you laugh in the process :)

Because hey - no one likes to pay tax! Am I right or am I right?

To see your tax payable and also to an RRSP contribution calculator you can visit - http://www.ey.com/CA/en/Services/Tax/Tax-Calculators

Hamster wheel, or Everest?

I had a really cool conversation last night with a family member about keeping track of money in and money out. Actually, this topic has come up a lot lately. Everyone has this burning question about how to budget and take care of their disappearing money problem.

Erin and I have put a lot of thought and time into this and recently we have even done a challenge ourselves where we make conscious decisions to move our money into savings instead of buying something unessential (teas, coffee, lunch, dumb crap at walmart etc.) These things are what financial experts say are the most detrimental to financial success. Our challenge was eye opening, but I don't know if it's a long term strategy.

I have heard all kinds of ideas from clients and advisors who do everything from using cash only, writing it all down, setting aside money in different categories, having more than one account etc. What we have found has been the most effective for those fearless enough to try it -is (drum roll please)....Having it done for you!

You can argue that this strategy is a lazy one or a bit too passive, I mean you aren't really doing anything? I disagree whole heartedly. You are taking a stand against something stressful and overrated such as budgeting and placing it in the hands of a professional who is more capable of making unemotional decisions about your financial achievements. No one, no one likes to budget! We can see the sweat beads form on our client's brows when we even mention it. People pull at their collars and say "I didn't bring one..." aka I couldn't put myself through that kind of torture and Dancing with the Stars looked so much more inviting. We get it.

So what does "have someone do it for you" mean you ask? Well we propose that after we figure out your fixed expenses, we then take a percentage (usually aiming to start around 10% is possible) of what is left over and have it automatically come out of your account into a secret hiding place that you will have to call your sponsor for release of it when you relapse. Money issues must be treated like an addiction, because I know from experience - it is an addition of the worst kind.

Taking this money and investing it, or even parking it for a later opportunity or emergency will guarantee success. After all the Wealthy Barber says it best "pay yourself FIRST".

It's one of the most crucial habits to build - delayed gratification always means two marshmallows! (See video of the marshmallow experiment, super cute).

No one has yet to return to us after their 3 month probation and tell us that it's too tough, and we have not seen anyone after that period either. I know it works because I have done it myself.

The best part? NO more buyers remorse. You then know you have done your due diligence to your planning and your financial freedom, so you can spend the rest on $500 boots or a fancy TV if you have enough money left over. After all we just spend what we have in the account - shave some off the top and do what needs to be done = problem solved.

Again, this is no rinky dink passive plan for wussies. You have to feel the fear and do it anyway. You have to part with money temporarily in order to get off the hamster wheel. It seems scary at first, but remember it's not set in stone and we only do what we can do while ensuring we have taken all measure for it to be our best given our situation. Your plan is reviewed whenever you need and we can always make adjustments to accommodate.

I have seen people save on the most modest of incomes and that is inspirational. I welcome you to make a change today.

Part roman numeral II - the most important part

I saw a friend's status posted and it read "What do you love most in life". Well it had a heart instead of the word love so not a direct quote. Anyway, it made me think that I left out a very important part of why I feel so strongly about critical illness insurance.

Family.

The number one thing people posted was 'Family' and their 'kids', in response to Gary's status. I looked down at Lilly and Oliver who were cuddling me while watching the Backyardigans (a tolerable kids show) and it made me think. I know that if I was sick I would be away getting treatment most likely and I would want Danny to be able to afford to take time off of work and come with me with my kids. The biggest stress of them all would be to be away from those who give me reason to live each and every day.

I can't predict nor do I want to create or manifest thoughts of being sick, but I know that with all the crap I have done, ingested, thought about and stressed over in my life, the possibility is there. There are poisons we can't even see, feel or touch. For now, I continue to do those preventative things are essential but I have to ask myself (and obviously because of what my line of work, no, passion is) if unforeseen unfortunate events took place what could I do ahead of time to ensure that it could be handled with ease?

People say to me quite often "If I was sick, the last thing I would be thinking about would be money." And I say "yes, I hope it would be." But where does our money come from? Our energy and ability to put forth this energy in exchange for cash. Shouldn't you ensure you own energy source?

Unfortunately, I have been there with people while they see their last days and one of the things they say to me is "if I only had the money..." Fill your blank - to seek new treatment, not wait in lines, have my family take time off work, hire someone to care for me in the comfort of my home. All these preferences cost money.

I use to tell people "you could pay off your mortgage, pay bills, go on a trip after treatment is over." But those are all monetary luxuries, what about something as simple as survival? I feel that within the provisions of that insurance cheque I could be handing someone their survival. If they can afford that treatment or get private care, see a specialist in another province or country without having to sell their house or make choices that will compromise their family wouldn't that be the greatest gift of all, the gift of choice?

In our lives we witness things going on all around us and we have a choice - to learn from others situations and do something or hope that we never end up in them. I am writing this blog because one of my most important and loved tasks in this life has always been to spread the word - inform and help the people I know and the people I have yet to know. I hope that my passion for what I do spreads far and reaches wide because like I said earlier I would love nothing more than to be the only person you are happy to see showing up at your door with a big casserole dish full of hope.

Let the choice be yours.

I hate to say it, but I told ya!

Ok so not a great way to start this blog but it caught your eye didn't it!

I have been saying to many friends and clients that critical illness insurance is not only the MOST important part of your financial plan, life and insurances but the HARDEST type to get. The reason for this is that it's the insurance company knows you are most likely to claim on. So take a minute and list out all the types of insurance you have and pay for - I will help you.

1. Car/boat/motorcycle insurance - you have no choice right?

2. House insurance - if you have a flood ya better have it.

3. Life insurance - you have a financial commitment to your families well being whether you are here or not.

4. Fire and theft - nuff said

5. Disability/Critical Illness - most people have the other 4 but do not have anything to cover themselves unless their employer is kind enough to provide it, WCB (as if that's reliable) or EI (because 15 weeks of income is good enough right?) - YOU ARE YOUR BIGGEST asset, without you none of the other insurances get paid, no food on the table, and certainly no big screen TV or trips to Maui.

Interestingly enough the last one is the where the most claims are made however it is where people seem to think "I'll be ok." If you are sensing a bit of a sarcastic undertone to this it's because I am blown away by this everyday - the lack of understanding people have for their own human frailty. We are not invincible - Superman fell off a horse and is a quadriplegic people!

So the point of this entry today is because I have been saying for the past 4 years that Critical Illness insurance prices will increase (not for people who already own policies though) due to the fact that they are claimed upon so much. The insurance company has reassessed the risk and because the risk is so huge they have to charge people more to have this type of coverage.

It's not too late, this first price increase is not enormous, but there will be more as the incidence of illness and survival increases. Due to our life style, both internal and external we increase our chances of getting sick but also because of medical advances, holistic options and our determination to live healthier more aware lifestyles we are very likely to live through it with but with an altered quality of life. Critical Illness policies were not created by an insurance company - but by Marius Barnard, in 1983 the first cardiologist to do a human to human heart transplant. He found that he was giving people back their lives but they could not go back to living them because they had exhausted all financial resources during their illness. Rock meet hard place. "Barnard argued that, as a medical doctor, he can repair a man physically, but only insurers can repair a patient's finances.^[7] On 6 October 1983 the first critical illness insurance policy was launched"

http://en.wikipedia.org/wiki/Marius_Barnard_(surgeon)

This planning tool is one that touches close to my heart. I have lost many friends since diving into this career choice and each time I find out someone is critical ill I wish I could be the one to show up at their door with a big fat cheque instead of scrounging to bid on Canucks tickets at a benefit, which of course I would do - and I don't even watch hockey. Don't put your freedom in the hands of someone who hasn't planned for your sickness. No one has an account that is called "the if Grace got sick account" we don't even have this for ourselves.

We have all lost someone we love and if you had $100,000 to give to them to help them choose their treatments, pay off financial obligations which would eliminate more stress in an already extremely stressful situation - wouldn't you? So if you would do that for someone you love, if you could, why wouldn't you do it for yourself?