Money. Budgets. Finances. Three words that can make almost all of us cringe inside, and most likely clam up. Money is something that we typically don’t talk about, but think about very often. Money has the power to affect our emotional health. Just like anything in our lives, if we avoid talking about money and our concerns around it, it can turn into anxiety and even depression.
I asked Don Kulyk and Michelle Mix to share some information around finances, and some insight into what to do (and not do) to help ourselves in this area.
Don Kulyk and Michelle Mix are the principles of Coast Management: Insurance, Investments and Financial Planning for individuals, families and businesses. With over 27 years of experience in mortgage insurance, life insurance, investments, RESPs and complicated business plans Don and Michelle are equipped to answer your questions.
“Goals are reached when you don’t let go of them”
Do you have goals? Dreams?
The beginning of a new year is traditionally when people implement changes. We go on diets, start new exercise plans, make resolutions to do things better. But we continue with the same old financial behaviours and by the end of the year, or worse yet, the end of our working life, we’re nowhere near where could have been or want to be.
First off, do you even know what your financial goals are? That should always be step number one. Always write your goal(s) down. Make them visible. Make yourself accountable. Revisit your goals regularly to see how you’re measuring up. Put it in your calendar so a reminder pops up. Didn’t quite achieve it by your goal date? Review why. How committed are you? Write these all down. And then, share these with someone. Uh, oh, this just got real!
Secondly, avoid these 7 habits which will guarantee that you upset, derail, or fail to meet your goals. These are from Gail Vaz-Oxlade and I love the sarcastic spin she puts on our most ridiculous habits.
Habit 1 – Don’t put money into savings. Hey, you’ve got better things to do with $20 a week, right? There are coffees to be bought, vacations to be enjoyed and nights out on the town to be had. Besides the government has a great plan in place to take care of you when you’re old and grey.
Habit 2 – Pass on the Canada Education Savings Grant. A $2500 contribution means the Feds will add $500, which is an immediate 20% return. Hey your kidlet can get student loans to get through school just like you did. So what if costs have skyrocketed?
Habit 3 – Be content earning a pittance on your savings account. Hey interest rates are so low it barely makes a difference. And moving your account is such a pain.
Habit 4 – Stick with your monthly mortgage payment. Who cares that saving money on your mortgage interest is as easy as choosing accelerated payments on your mortgage. Sure they say that could save four (4) years’ worth of interest.
Habit 5 – Stick with low deductible on car insurance. So it costs a little more for low deductible, so what? The fact that you paid $350 more a year for your insurance will be worth it. After all, you have an accident every five years or so, right?
Habit 6 – Carry a balance on your credit card. Everyone carries a balance. You’re making the minimum payment. Who cares if it takes you 10 years to pay off that barbeque. So the bbq will cost more, but you got a great deal on it so it’ll all come out in the wash.
Habit 7 – Don’t sign up for your employer’s savings matching program at work. Sure they’re willing to match your contribution up to 3% a year. And, sure, that’s like getting a raise. But you shouldn’t have to cut back on your spending to get that extra money. Hey you slave away at your job and you’re not about to give up the $125 a month specialty channel package to get a pathetic $1200 a year from your employer. TV helps you to relax!
Your goals are closer than you think! If you would like help in defining and then implementing plans to reach your financial goals, please contact us! You can visit us at Coast Management https://coastmanagement.ca/ or email us email@example.com | firstname.lastname@example.org