I can’t bear to see the gas prices go up again! Every time I drive past a gas station I break into cold sweats. It seems like the gas stations are competing to see who can get to $1.50/ltr the fastest.
When the price of living goes up, we as consumers are faced with a difficult challenge – what is going to give to cover this new cost. This is where it is absolutely critical to have a budget in place. Typically our income doesn’t keep pace with the increased cost of living so other expenses are going to have to pick up the slack or use cost cutting to help with keeping that budget item down.

Fuel Cost cutting ideas

Gas rewards program - This isn’t a credit card but a program created by the company to collect points that you can redeem for gas. It may take a while but every penny counts.

Fill up your tires – Check your tires every few weeks and make sure they are to the manufactures standards. This can save you some drag on your car and make it more fuel efficient.
Fill up and drive till a quarter tank – Putting small amounts of gas into the tank can actually cost you more because you are driving to the station more times. It’s easier to fill up once and drive around less. Let the tank get down to a quarter tank before you fill up. You will benefit from driving around with a lighter fuel load, constantly topping up creates more weight in your vehicle.

Change your driving habits – Avoid idling, drive at a constant speed, take off slowly from a full stop and reduce your speed. All of these driving techniques can reduce how much fuel your vehicle is using.

Maintain you vehicle – Make sure you are changing the oil and spark plugs on a regular basis. Regular maintenance on your vehicle will keep it performing at maximum capacity.

Shop around for the best fuel prices -  http://www.ontariogasprices.com is a great website to see all of the local gas prices before you fill up.

The little things and big decisions – Consider car pooling, bike riding, and commuter van or downsize to 1 vehicle. Park in the shade to avoid the fuel evaporating and make sure you gas cap has a proper seal.

~Nicole Olsen

Awesome, awesome, awesome. What more can I say? We had a great afternoon event showcasing our agency with presentations on the 10 Steps to Financial Fitness and Mortgage information by Genworth.

We are also pleased to announce the introduction of our new Healthy Money™ program. A culmination of years of professional information and experience, written by our Executive Director, Wendy Dupuis and Senior Financial Counsellor, Pauline Laforet.

The Healthy Money™ financial fitness module system is an easy 10-step system containing topics that will help anyone effectively manage their personal finances.

This instructional information has been divided into a 10 step module system, allowing you to easily and effectively learn the basic information you need to know to help you increase your financial health.

This system has truly been developed with the “everyday person” in mind, so it has been written in a casual engaging style using everyday language with easy to grasp examples. This system is designed using our “bringin’ it to the streets” communication style, allowing you to learn in a relaxed and fun manner. No “accountant-speak” here!

Please check out our review in the Windsor Star for more information on our modules. You may also call 1-877-777-9218 or email info@financialfitnesswindsor.ca

I HATE spring cleaning! There’s just too much to do. Have you heard of hoarding? I actually do the opposite; I throw everything away even if I might use it in the future.

But let’s not talk about the things that provide fodder for my psychiatrist, I want to put out a plan for Financial Spring cleaning.

So go to your home office or file box; first thing you want to do is resist the urge to pour yourself a drink…

Now we’ll get onto the finances,

1)      Get all of your files, bills, records, and paystubs in the same place. Organize them in a way that makes sense to you. Most people will sort them into file folders, chronologically. You may want to use different coloured file folders for each type. I use green for my paycheques (cha-ching!) and red for debt (bad!).  This will allow you to have all of your important information in one convenient place, no more looking for bills in the couch or ruined paystubs in the dryer. Make sure you are only keeping records for their required retention period.

2)      Do a net worth statement. A new worth statement can be a very valuable tool in determining your financial fitness. It gives you a little report card of your finances that can be compared year to year. List everything that you own with value of $1000 or more (beer can collection probably doesn’t count). Now list everything you owe (credit cards, Lines of Credit, Mortgage). Simply take:

What I own  -   What I owe = Net Worth

3)      Resist the urge to pour yourself a drink…

4)      Now would be a good time to review your insurance policies. Do you have adequate coverage? Maybe you can get a better rate? Do some shopping, it doesn’t cost anything to get some quotes and might save you money in the long run. Insurance can be a very valuable tool to cover you and your belongings just in case Murphy’s Law comes a’ knockin.

5)      Get your credit report. A credit report is not only a good way to see how creditors rate your lending worthiness but to check for fraud.  There are 2 major credit bureaus in Canada Equifax and Transunion. All for the price of a stamp you can fill out a form, photocopy 2 pieces of government ID, send it in to EACH bureau and in 7-10 business days get a copy of your credit report.

6)      Review and update your budget. (Hint: if you don’t have one, now’s the time) List all of your sources of income and expenses. How do they compare. Do you spend more or less than you earn? If the answer is yes, you might need to rework it. Use pencil!

7)      List your debts, interest rates and minimum payments. You can find a free debt repayment calculator at Cnnmoney, or come in to see one of our qualified counsellors to discuss your options.

8)      And last but not least savings. What are your dreams? Your goals? Upcoming events for the next year? List some short term, medium term and long term goals. How much will you need to save? Maybe you can’t buy that super awesome 1:16 Millennium Falcon off eBay right now, but can you over the next 10 months?

9)      You’re finished! Put your feet up and relax; you will feel a sense of accomplishment and thank the stars you only have to do this once a year… now to the house…or that drink!

~Nicole Olsen

Every year we prepare an annual report on the Agency's activities for our Annual Members meeting.

In the report we celebrate our accomplishments and the general sense of well-being we all get from a job well done. It is a chance to report on the impact we make in the lives of the people who come through our doors seeking our help. I find it extremely rewarding to pore through the hundreds of client impact statements telling us how we have made a difference in thier lives.

With the issue of financial literacy getting so much attention these days, we appreciate knowing that what we do really does help.

I thought I would share what our clients say about the service they have recieved from us.

“This is the best service possible, it has helped so much”.
“Great program. We have learned a lot about ourselves and how to manage our finances better”.
“…consistently provided guidance in a knowledgeable and empathetic manner”.
“This was the best decision I ever made”
“Without these services who knows what state my life would have been in”.
“Very helpful. I was being buried alive and I appreciated a hand up not a hand out”.
“Right from the start of the meeting there was a feeling that everything would be okay”.
“People would be lost without a place like this”.
“So much weight lifted off my shoulders. I feel great”.
“I’m not afraid to answer my phone anymore and I can sleep at night”.
“All staff have been very accommodating of our situation. Thank you”.
“I appreciate the advice and professional service I receive when I contact (Financial Fitness)”.
“You made it easy for me. Thanks a lot”.

No, cher clients, thank YOU for taking responsibility for your financial lives and allowing us to be partner in your efforts to create a better financial future for you and your families.

Here's to many more years of making a difference.

Wow! Life has been so busy lately with all the projects on the go, a product launch, deadlines, balancing my home life, hardly time to breathe. When life gets crazy busy like this, I tend to lose track of things. Things like making personal appointments and phone calls, following up on details. The house is a little messier; magazines sitting unread, projects that I began a month ago sitting idle, abandoned temporarily as other priorities demand my attention. At work my desk is buried under mounds of papers in what I affectionately refer to as my “organized mess”. Some times the world wants more of me than I have to give. Now I know that I am not alone on this insane hamster wheel. I can hear you now, saying … wow, you think you’re so hard done by, try adding a couple of kids to the mix!
 At times like this, if it weren’t for my calendar and my faithful adherence to checking it regularly I’d be in big trouble. My organizer is my saviour. My strategy for getting through these times is to let go of the unimportant things. I focus on the “need to get done” tasks instead of the “nice to get done”.
When life comes at you at mach speed, it’s easy to lose track of things, like opening mail, paying bills or tracking your spending. Have you ever heard yourself saying “Whaddya mean the hydro bill was supposed to have been paid yesterday, we just received it…oops three weeks ago! Well uhm.. it seems like it’s been that long”!
Before you know it, you’re getting reminder notices in the mail for your bills and there is no money in the bank because you were not minding your budget and overspent just a titch.
Here are some helpful tips to keep you organized and on track with your finances during hectic times.
1. What ever system you use, keep it simple and easy to use. If you are already time stressed, don’t add to it by choosing a complicated organizing system.
2. If you are a techno-geek, there are a bazillion on- line organizers out there. Stay away from any system that offers anything more than pure money tracking and management. Some sites redirect you to all sorts of shady characters willing to help you pay off your debt or repair your credit. Be wary.
3. Set up an automatic withdrawal program with your bank or credit union, so the bills are paid automatically every month from your account. Caution: if you have a dispute with the bill, you will have to take costly and time consuming measures to prevent the company from withdrawing what they think is their entitlement from your account. It may take a long time to get the money back.
4. Typically most bills have a regular due date. Enter the name of the bill on your calendar a few days ahead of its due date. This way you only have to devote a few minutes at a regular time each day to check your calendar. Set up a file or other space where you can keep your bills until they are paid. When the date arrives, pull out the bill and pay it.
5. Use a file box or drawer with files folders labelled from 1 to 31. Each file folder represents a day of the month. When you receive your bill, drop it in the file dated a few days before the date the bill is due. For eg: if the bill is due on the 15th, put it in the file labelled 12, and pay it on that day. This allows a few days for processing. Don’t forget to allow extra time for processing on holidays and weekends.
6. If you have gone paperless, you will be receiving emails instead of paper bills. Be sure to check your email account regularly so you won’t miss your statement. It is still your responsibility to pay your bill on time, regardless of whether or not you receive a statement from the company. The statement they send you is merely a courtesy. It is your responsibility to pay what you owe. If you do not receive your bill when you expect to, call the company immediately. They can send another statement.
7. As far as tracking expenses when you are super busy, designate a spot in home where you will keep your receipts. At the end of each day, put your receipts in this spot. Then take a few minutes every week to reconcile your expenses to your bank account. Taking a few minutes to do this regularly will keep this chore manageable when you are time stressed.
8. Create a system to organize your financial records. Having an organized system takes little time to maintain and you won’t waste time looking for information. It will be at your fingertips.
9. Delegate some tasks to someone who can help. You don’t have to do everything yourself.
10. Ask yourself this question. If you do not have time to do it right, when will you have time to do it over?

A while ago I learned about a therapy called EFT.  This description really doesn’t do it justice, but it is a process based on the belief that the cause of all negative emotions is a disruption in the body’s energy system.  By tapping with the fingertips on a short series of points on the body corresponding to acupuncture points, you can release the blockage of energy flow cause from the negative emotions.  When the blockage is released the emotions come into balance.

Some of our problems with money stem from deep rooted emotions and beliefs. EFT can help you identify your limiting money beliefs and subconscious self sabotaging patterns. You may find they are not what you think they are! 

As it happens, we have a bona fide EFT practitioner right here in Windsor! She has offered to conduct a session on finances.
If you are arguing with your significant other about money, worrying about paying bills, frustrated over financial issues and wanting to feel more secure this session is for you.

Date:  April 16, 2011
Time: 1:30-3:00 p.m.
Location: 6038 Empress St (Hospice of Windsor-Essex)
Tuition: $25.00
Facilitator: Frances Soda
Register: Call Frances at 519-977-5959
For more information contact fsoda@cogeco.ca.  or see www.tap-eft.net

Hope to see you there!

Hard on the heels of the news release stating that the Federal Task Force on Financial Literacy had released their findings and recommendations came the news headlines that the Average Canadian family’s debt hits 100K.  Timely you say? Absolutely.

According to a report  from the Vanier Institute of the Family, Canadians are indeed more deeply in debt than at any other time in our history. It seems as though despite several warning calls from those who know, we as a nation are heading -eyes wide open-for disaster.

Easy credit and lower interest rates have lured us into leveraging far more of our disposable income than is perhaps prudent or safe. As the report succinctly states “There is too little income, too much spending, too little saving and too much debt.”

What I find interesting, is that accompanying the record levels of debt, is the astounding statistic that we have also seen a jump in average net worth of 60% in the same time period. So as Canadians, we are much wealthier, yet we still carry a boatload of debt. What’s up with that?
Is this something to be concerned about? Only if you are one of the grim statistics.

So, how can you tell if you are in over your head or in dangerous territory?
Okay, you need a few math skills here. There are two stats you need to look at.

One, your total debt service ratio. If your monthly debt payments (including housing costs) are more than 40% of your net income (yes, net income not gross), you are in dangerous territory.  Time to concentrate on lowering that ratio.

Two, your net worth.  Or more specifically, your debt to net worth ratio.
Your net worth is a measure of all your tangible assets.  Check out this handy net worth calculator .  Be sure not to overestimate the market value of your assets.
Next divide your total debt by your net worth. If this number is high, then selling your assets may not cover what you owe. If this number is over 1, you could be in trouble. That means if you sold every asset you had, you would still be in debt.

Don’t be a statistic. If these numbers concern you, or if you need help interpreting what they mean, give us a call. 519-258-2030, in Windsor, 519-542-1130 in Sarnia.
Helping you improve your finances is what we are all about.

Nicole’s Mortgage Strategy.
We are currently in year 2 (ish) of our 5 year term mortgage. Our interest rate is at 5.25%- not great, not horrible. We decided to see what we could do to take advantage of the low mortgage rate at 3.69%.
Our mortgage lender suggested a Blend and Extend Mortgage. Essentially we would be extending our current mortgage for another five years and blending our current interest rate with the new market interest rate making our interest rate now 4.47%, all for a very small fee.
This new interest rate would now lower our mortgage payments. Well, we’ve been managing our current mortgage payments just fine, so rather than take the lower payment  we decided to keep them the same. So, by blending the interest rate  and keeping our mortgage payment the same as they were- we’ve actually save ourselves about 10 years off our mortgage amortization, which now lowers it to 26 years from 36. We get a lower interest rate now and we avoid extending our amortization period. And the best part…  if we stick to the plan we stand to save about $ 66,000.00 in interest charges!
 How cool is that?
Nicole Olsen.

Another way to speed up paying your mortgage off is to adjust the amount of taxes deducted from your paycheque.  Huh?? You say? What does the amount of income tax deducted from your paycheque have to do with your mortgage?
Well, if you are one of those people who enjoy a whopping tax return every year, and your mortgage terms allow it, you can apply that huge tax return as a lump sum payment once per year. However we all know how tempting it is to spend that cash on other things.

You might want to think about giving less to the government up front.  For example:  if my return is $1,200.00 per year, I can instruct my employer to deduct $25.00 less per week off my paycheque. I can then increase my weekly mortgage payments by $25.00.

Here’s an example: On a $100,000.00 mortgage, raising my weekly payments by $25.00, would save me  $27,162.00 in interest charges over the life or my mortgage  which would be reduced by almost 10 years.

I won’t miss the money because I am just redirecting what I would have paid anyway, and instead of a tax return which I might blow on other non- essential things, I have the satisfaction of knowing that I increased my net worth, and made my family a little more secure. All for $25.00 per week.

Remember , small changes over time make a big difference. Who wouldn’t want to keep $27,000 for themselves?

Mike Bergeron

January/February for me is the start of a new financial year. Every year around this time my sweetie and I reflect on our success (&challenges) with last year’s spending plan, and create a new one for the upcoming year. We examine our net worth statement to see how much progress we’ve made on increasing that number.  We receive our T4 slips and complete a preliminary tax return, so we can include the tax refund in our plan for this year.

Each year, when we create our spending plan, we look for an opportunity to accelerate our mortgage.  Every financial expert I know advises that paying off the mortgage as quickly as you can is part of a sound financial strategy.  And, since we are “late bloomers” financially speaking, we need to focus on paying the house off before we retire so we are not carrying a mortgage payment on our pension income.

Our house was purchased in 2003 with a 26% down payment.  We make weekly payments, which helps pay off the mortgage faster. Just by paying weekly, we shortened our 25 year mortgage by 5 years so it would pay out in 2023 instead of 2028.
According to the terms of the mortgage, we are allowed to increase our weekly payments by 25% of the initial mortgage payment every year on or after the anniversary date. That increase goes straight on the principle of the mortgage. So for the past few years, we have been adjusting our spending plan so that we can increase our weekly payments by 25%, which for us works out to just under $40.00. We have had to make adjustments to our lifestyle to manage this. However, after some initial discomfort we really have not missed the money. We adjusted, cutting a bit from each spending category. We were lucky enough to receive small pay raises so some of the discomfort was offset by the raise.

This year, we got out the calculator to see how we will benefit by this strategy.
We based our calculations on our current mortgage interest rate- which is high by today’s standards.

By increasing our payments by 25% we will pay off our mortgage in 2015 instead of 2023.
We will save ourselves $21,633.00 in interest charges and pay off the mortgage almost 8 years early.  For us, that means we can retire mortgage free, which is one of our goals. Talk about motivation!

By combining the ability to make weekly payments with the opportunity to increase our payments by 25%, we hit on a strategy that fulfills our particular needs and circumstances.
This strategy may or may not work for you. It depends on the size of your mortgage, your income, your age etc. Stay tuned for some other strategies that may be more in line with your own particular circumstances, yet with the same goal in mind-a fully paid for mortgage in the least amount of time with the least amount of interest.

Wendy Dupuis

Financial Fitness is pleased to announce that Mike Bergeron has passed the first half of his AFCPE certification. Congratulations Mike. Mike  has earned two of the three  certifcations he needs to become a fully certified OACCS Credit Counsellor. Mike acheived his BIA certification in December, he holds a certificate for completing CTI coach training, and has completed his certification exam in counselling standards from the Association for Financial Counselling and Planning Education.(AFCPE). He is now on the final leg of his certification. 'Atta boy Mike!

This is a particularly challenging time of year for me.  It’s cold outside and sunshine is as rare a commodity as a savings plan.  The holidays are over, the bills are arriving and I just got my T4 slip which means I will have to file my income tax return soon. I feel like staying in my jammies, pulling a blanket around me as I curl up in my big comfy chair and not coming out ‘till spring.

A month ago I had all this energy and enthusiasm for a new year.  I was all set to eat better, get more exercise and explore my spiritual side through meditation.  Yup, I was gonna work on mind, body, spirit balance.

One month later, I can say I have managed to eat fairly healthy, if you don’t count the four bags of bite size chocolate bars that I purchased on a twoferone deal and ate the same way. I have actually managed to get more exercise- five extra hours this month! As for meditation, I did manage to meditate for fifteen whole minutes each day… well maybe not each day… okay once each week if  you add it all up and count the time I was caught daydreaming at a traffic stop. Funny how the horn of the car behind you will snap you right back to the present.

Most people would look at their progress so far and see a decided lack thereof, and throw in the towel. But not me, oh…no. Call me idealistic –it’s the Sagittarius in me- but I am not one to quit. Not at this stage of the game. It’s one of my motto’s, “never give up”.

I prefer to see my progress as just that, progress.  On balance I ate healthier, exercised more and meditated some, which is more than I would have done if I had not bothered at all.
Did I do as much as I intended? No. Could I do better? Absolutely!

I just think that sometimes, I am so busy looking at what I haven’t accomplished, that I fail to realize what I have accomplished. 

I’ve decided to stop beating myself up if I don’t do something perfectly. I am choosing to celebrate even the smallest of achievements and having made that choice, I now feel the motivation to set the bar a little higher for next month.

Of course February only has 28 days……

Wendy Dupuis

So, something truly exciting happened to me on Saturday morning… I had breakfast with the Premier of Ontario! I know I was completely shocked and frankly had a hard time believing it all day.
After our little brunch I decided I needed to go grocery shopping.  Now I have a few rules for myself when I go grocery shopping to help keep me in my budget…
1. I never go with children. They always some how manage to put more things in the cart when I’m not looking.
2. Never go hungry. It’s more like shopping off a menu of what I want to eat rather then what I need to buy.
3. Never shop where I can buy underwear. I don’t know… those one stop shopping places seem to have a minimum spending limit and I can NEVER spend within my limit.
While I was grocery shopping and still reeling from my geeky brush with fame I decided I was going to call all my friends and tell them about it. So I pulled out my Bluetooth and went about my shopping. As I’m going down the isles chattering away (while most people are looking at me like I’m a crazy woman) I’m arbitrarily putting things in my cart. I finally get to the check out and hang-up with my friends mom when the girl starts ringing everything in. When I get the total bill it’s 30% higher then my grocery budget! I was shocked!
Now,  I’ve added one more rule.
I will devote my full attention to my grocery shopping and leave my phone in the car… even for the Premier of Ontario.

Nicole Olsen

I had a conversation with a colleague a few days ago that gave me the inspiration for this post.
We were sharing stories from clients who had been victimized by some rather unscrupulous characters presenting themselves as debt relief specialists before they found us. Our unfortunate clients, who were already dealing with life circumstances that lead to overwhelming debt issues, were bilked into paying thousands of dollars for the so-called debt relief company to act for them.  The outcome resulted not in a partial reduction of debt which had been promised, but in bankruptcy.
Had the clients known, they could have done the same things for themselves at no cost and saved themselves a ton of grief. This is a great example of how a lack of knowledge can end up costing you – big time.

Like every other industry, the financial counselling and debt recovery industry is viewed by some as a lucrative market. It is also largely unregulated which means that anyone can hang up a shingle and call themselves a credit counsellor.   With all the debt relief companies out there vying for business, it’s hard to know who to trust. It pays to be informed.

The Financial Consumer Agency of Canada has a great website that provides objective advice to consumers about how to choose the right product and service for their needs.  It’s a great place to visit to get unbiased information. The tip sheets are easy to read and understand and may help you sift through the confusion when deciding who to trust with your money issues. Check out the tip sheet on Dealing with Credit Counselling Agencies, especially the part on finding a reputable credit counselling agency.
Make sure you understand exactly what you’re getting into before you sign.  It can save you thousands.

Ahhh… New Years resolutions.

I don’t have anything against them, and have been known to make a few every once in a while. I find it easier to stick to my New Year resolutions if I work in a reward for myself. This year my husband has been the one to make a huge New Years resolution and we’ve been able to  take financial advantage of that.

My husband smoked for 15 years on and off. It drives me crazy, but it’s his issue not mine. (I have my own, it starts with “Ch” and ends in “ocolate”). This year, out of the blue he’s decided that he’s going to quit. I was very happy for him and supportive but honestly the first week was awful, then I realized, there’s no real pay off for him.

We decided that with the extra $30 he used to be spending on cigarettes we would now save it for some kind of reward. He’s always wanted to go on vacation and since we have 2 kids, a mortgage and a car payment it’s never quite fit into the budget.  I did a little research and we’ve decided to put that money into a TFSA (Tax Free Savings Account). In a nut-shell this savings vehicle allows us to put money away into savings that can then be invested, providing us with a greater return = MAKE MORE MONEY. Any money we make on the account OR any we pull out is not taxable AND does not count as income. Win, Win. It provides us with something that can make more money than our savings account at the bank, and we don’t have to declare the interest earned as income. It’s fantastic.

So, sometime next year we hope to take out some of his New Years resolution money (tax free of course) and go somewhere hot, with sandy beaches. Now if only I could set aside my chocolate money, we could retire in 5 years!

Financial Fitness is pleased to announce that Randa Roberts  has passed the first half of her AFCPE certification. Congratulations Randa. Randa now has earned two of the three  certifcations she needs to become a fully certified OACCS Credit Counsellor. Randa has acheived her BIA certification, she holds a certificate for completing CTI coach training, and has completed her certification exam in personal finance from the Association for Financial Counselling and Planning Education.(AFCPE). She is now on the final leg of her certification. Way to go Randa!

Have you made finances your priority in 2011? 
Lots of people overspend at Christmas and face the unpleasant task of having to pay off the credit card bills in January.  Some people make resolutions to lower their debt or increase their savings every New Year.
Whatever your situation we have easy tips that can help you with your efforts to get financially fit!

Tip#1 - Create a plan:
Any attention we pay to our finances in January is usually directed to paying off the credit card bills from Christmas. For some of us, that will be all the financial planning we do!
While paying off credit card bills will be high on your priority list, you would be better off taking the time to create an overall plan for your money this year. Too often people focus on paying off last year’s debt but don’t plan to save anything for this year’s expenses.
By creating an overall plan, you can incorporate goals like paying off credit cards into your overall spending and saving strategies while at the same time planning a “debt free” holiday for next year.
Our coaching program has a unique seven step process that will help you create a plan for yourself for a stress free financial year. Call for your free consultation.

Tip # 2- Consolidate to a lower interest product:
If you are carrying debts on several credit cards, and cannot pay the entire balance in January, transfer the debts to an unsecured personal line of credit or a lower interest card. If you have to carry balances, make sure you are paying the lowest interest possible until you can pay it off.

Tip 3#: Pay off any high interest debt:
Make paying off high interest debt a priority. If you are carrying a balance on several credit cards, there are two methods of attack.

 One is to make the minimum payments to all but the one with the smallest balance. Put as  much money as you can toward the smallest debt. Once this is paid off, you can direct the  money you have been paying to the smallest balance and direct it to the card with the next  smallest balance. That way you have the early gratification of seeing your debts being paid off.

 The second is to make the minimum payments to all but the card with the highest interest. Put  all your extra money toward the card charging the highest interest rate. Once this debt has been  paid off, direct what you have been paying to the card with the next highest interest rate. If the  interest rates are the same on two or more cards, choose the card with the highest balance.  While you do not get the immediate gratification of seeing your small debts paid first, this  method ensures you pay the least amount of interest possible on your debt.

Tip #4 - Consult a professional:

Denied Credit? Let’s face it, if a financial institution whose purpose is to make money by lending you money, tells you they will not lend to you, LISTEN to them. Treat that as a warning flag that your finances are in poor shape. Don’t  let your desperation drive you to make a decision that ultimately leaves you worse off than before. Consult with a professional counsellor who can outline the options available to you and help you make an informed decision.

If you find yourself contemplating a loan to pay off your debt, make sure you can get a loan that lowers the interest on the debt you have. If your credit cards are maxed out and you find yourself unable to manage the payments consult an unbiased professional like a financial counsellor, who can give you options about how to manage your debt. Many people get themselves into a worse financial situation by consolidating their debt into a high interest loan. 

Have you ever wondered about why we make New Year’s resolutions or where the tradition began? The date is so arbitrary, why on January 1st, why not on your birthday? Yeah, birthday resolutions would work. As we embrace the prospect of being another year older, we could use the maturity and wisdom we’ve gained over the past year to make changes in our life. Hmmm….that sounds suspiciously like “growing up”.

Perhaps we could invent another holiday, a National “Get Your Act Together” day. A day we could spend in contemplation of our lives so far, at the end of which, we could make resolutions to improve upon the areas we are unhappy about.

The problem with resolutions is that we don’t stick to them. Perhaps it’s because making a resolution is so contrived. We do it because – well, it’s the thing to do on January 1st. Maybe it’s because making a New Year’s resolution implies that there is something that needs fixing in our life; that somehow we have failed at life- or at least some aspect of it- in comparison with what we think we “should” be or do. 

In coaching you learn that the word “should” is the work of your saboteur. I “should” do this or I “should” be more like that… as if you somehow aren’t good enough just the way you are.
What if we thought about the New Year as a new adventure, a promise, a fresh start where anything might happen? Where you are good enough just the way you are? Where you as a whole, creative, resourceful individual can meet any challenges you face and accomplish any goal you set out to achieve?

Make 2011 the year you stop thinking about what you “should” be doing. Start thinking about what it is you truly want for yourself, and be secure in the knowledge that you have everything it takes to accomplish what you want.

If one of the goals you set out to achieve is to improve your financial health, good for you. We will be posting a lot of great tips to help you get your 2011 finances off to a great start!
Hiring a financial coach to help you create a plan would be a great way to kick start your new financial you. Just call or email us for your free consultation.

Countdown to Christmas
Less than one week to go.
Christmas is almost upon us! With less than a week to go, here are some helpful tips to help you “wrap up" the holidays.
All the preparation except for the food should be winding down now.
• Do as Santa does and check your list twice to make sure you have gifts for everyone you intended to buy for.
 Resist the pressure to buy for those who are not on your list or to buy extra for those you have  already purchased gifts for. Remember to stick to your allotted amounts.
• Compare your actual spending amounts with your budget. How well are you doing sticking to your plans?  Check in with your significant other regarding how well you are doing.
• Keep all receipts in an envelope marked “Christmas” until after the gift exchange has been completed.  You can shred them after you have accounted for the expense in your budget, unless there is further reason to keep them for proof of purchase. (warranty etc.)
• Make sure you have enough wrap and packaging, finish wrapping presents.
 Do a little each night if you can. One of our experts wraps them as soon as she gets them home.  
• Your grocery shopping should be done by now except for those last minute perishables you will purchase for the Christmas dinner.  Be sure to leave time in your plans for last minute grocery shopping for perishables.
• If you are hosting meal or party, review your menu so that you have everything you need for the meals you have planned.
• Launder any articles you may need for the celebrations, clothing, linens for the table, fresh bedding for overnight guests.
• Prepare as much food ahead as you can so that you are not rushed and stressed out Christmas Day. One of our experts prepares all but the Turkey and Stuffing the day before.  A special traditional potato dish, sweet potatoes, cranberry sauce, homemade dressing and buns are all prepared Christmas Eve and refrigerated then warmed up Christmas day, once the turkey is finished.
• Remember to delegate anything you can to others. This week can be especially hectic and you can feel enormous pressure, so let others help. It will make them feel good about being able to help while at the same time giving you time to breathe.
• Schedule some time to relax with a loved one.

Financial Fitness congratulates counsellor Mike Bergeron on completing the 100 hours practicum necessary to become a BIA Insolvency Counsellor. Mike successfully passed the examination earlier this year  and has just now  recieved confirmation from the OSB that he has been registered as a BIA Insolvency Counsellor.
Congrats Mike!