We have been planning our family room renovation for two years, diligently saving our pennies until we had enough to pay for the renovation without going into debt.  After all- I have to practice what I preach!

In August we committed to begin. It was now or never. It’s a modest reno as reno’s go;  replace an old fireplace that no longer works, replace the worn carpeting with eco friendly “green” flooring, improve the lighting in the room and install some much needed storage cabinets to make the room more functional.

We rationalize this expense by thinking that since our home is a big asset, it’s important to maintain it, which means that every 25 years or so you need to think about giving it a face lift – or at least fixing the broken stuff!

The room is small - 200 square feet. Even so, I was shocked when we began adding up all the estimated costs. We’re not talking high end top o’ the line stuff here, although we are choosing as good a quality as we can afford.  And, as the experts advise, we planned an additional 10-20% for unexpected surprises once the reno began.

Ours is a prime example of just how wrong a reno can go. As we were removing a speaker wire that ran along the baseboard we discovered water…in the walls….did I mention that this was a basement reno? 
I won’t bore you with all the details, suffice to say that the project has blossomed (understatement) into a nightmare on B*** street complete with cracked foundation, sopping wet insulation, improperly sealed siding,  blocked drainage system… and yes we did have a home inspection when we bought the home seven years ago.  Obviously not a Mike Holmes inspection!

And no, we do not qualify for the Mike Holmes show… I already checked.  Oh and nothing is covered by our home owner’s insurance policy either.

So, our carefully laid plans are now on hold and we are faced with a tough choice which involves a set of competing values: 
Pay cash for the necessary repairs now, using the reno money and finish the rest when we have more money saved; which means the project may not be completed until this time next year…  honouring our value of not having debt,
Or, finish the project now, pay for as much as we can with cash and use the line of credit for the rest, so we can have order back in our house… honouring our value of having a peaceful uncluttered space to retreat to at the end of a stressful day.

As challenging as our situation is, it is typical of financial decisions people face every day. We are often forced to make financial decisions involving a competing set of values. The best advice I can give is to weigh which of the values is more important, be honest with yourself about all the possible consequences, put a contingency plan in place and then go for it, knowing you made the best decision you could under the circumstances.

~Wendy Dupuis

I have two very small adorable children and the one thing I can’t stand is that kids come with stuff… Lots of stuff. I dread the holiday’s because of all the extra toys I have to find a place for in my house.  I’m a working mom; finding time to clean my house is hard enough.  I want to spend as little time as possible on picking up and storing toys.

I don’t know about you but each of my kids get at least 10 gifts per holiday. The poor little things almost seem overwhelmed with the vast amount never actually realizing what they’ve got. I started to notice that my oldest son would play with something for 5 minutes then move on to the next toy. He didn’t really cherish any of his possessions just use them and throw them away… disposable. It was a mind set I really didn’t want him to get used to. If he felt that his toys were disposable what next?

This Holiday season I’ve decided to do something differently. I’ve opened up the dialogue with our families about the needless, endless supply of presents. I’ve asked them to give each of my children just one gift, a group gift would be even better. It doesn’t even have to be an item, maybe even a trip to the movies, or snowboarding. Something that is meaningful to them and my child, quality not quantity. If after that they would still like to get them something else I’ve provided them with the account numbers for my children’s RESPs. Think about it,  In 20 years when my oldest graduates from University or College debt free because of the money our family saved for his education will he be thinking about the Lightning McQueen toy he got for his 5th birthday or the incredible gift he just received from everyone that loves him.

~ Nicole Olsen

So this year I turned 31. Not a milestone year but another one none the less. My birthdays up until now have been very exciting, usually a party or two, a dinner and lots of indulgences; This year not so much. I got a little bit of money as gifts this year and had planned to spend it solely on myself. I was imagining the manicure I wanted to get on Friday and that new pair of runners I scoped out at the mall. Let’s face it, as a working mother of two with a house and two cars it’s pretty difficult to come up with a little extra cash to spend on myself.
Well low and behold life had other plans…

On my way to work, responsibly car pooling by the way, I might have been speeding a bit, and of course there happened to be a police officer near by. I got hit with a $110 speeding ticket.

I thought “No problem, I’m sure I budgeted for this right?”

Nope.

I put aside money for repairs and licensing but nothing for that speeding/parking ticket.
Now I have a new item to add to my budget for the “just in case” and this year I bought myself a shiny new speeding ticket for my birthday.

~ Nicole Olsen

2010 has been an exciting year for Financial Fitness. Operating in the community for over 40 years, the agency formerly known as Credit Counselling Services successfully rebranded as Financial Fitness in 2009 expanding  its core mission of helping Sarnians manage their money to include a new Financial Coaching program.  In early 2010, the counsellors completed an in-depth 5-program series through the renowned Coach Training Institute.  This specialized training has allowed them to take the client-counsellor relationship to a completely different level and to successfully coach individuals toward their goals
The coaching process is a dynamic and unique perspective designed to help clients gain awareness of their goals and values, and understand the choices they make with their money.  “Coaching is one investment that is guaranteed to pay big dividends, and improve your financial health.  A coach can work with you to improve your overall financial well being, so you can stop sweating about money,” advises Wendy Dupuis, the agency’s Executive Director.  “From a counselling perspective, we’re not to give answers, but to bring out the resourcefulness that people all have inside them,” Joanna Marks offers about coaching.  “It is looking towards the future, while understanding what choices were made in the past.” 
Through coaching, clients can expect to gain knowledge of the fundamentals of good money management and learn how to have more financial balance and stability in their life. 
 Whether you’re in need of some perspective on your current financial situation or looking for an alternate way to pay back debt, the coaches at Financial Fitness listen to you and review your options.  The counsellors are accredited through the Canadian Association of Credit Counsellors and are Qualified Insolvency Counsellors.  For more information on any of our programs, please call us in Sarnia at 519-542-1130 or in Windsor, 519-258-2030 and book your appointment.

~ Randa Roberts

It seems like Christmas is a long way off (only 96 days!) but now is the best time to start planning for it. As much as we don’t realize it the cost Christmas can really add up:

• Presents for 2 kids   $500
• Presents for everyone else $500
• A Christmas party outfit $100
• Christmas dinner  $100
• Christmas Baking  $100
• Decorations   $50
• Real Christmas tree  $50

Just these few items added up to $1400!

Getting Started
Before you read on, take a minute to really think about what you want your holidays to look like. Quite often we get wrapped up in the whirlwind of the holidays and don’t realize what’s happened until well into January. Write down the most important traditions for you and your family, It maybe that you want to hold Christmas dinner this year or the enjoyment of making dozens of delicious cookies. Prioritize what you want to spend or do and what you would rather not.

Set a goal
After you’ve looked at what would make your holidays fulfilling, decide how much it will cost. Get an idea on how much you will spend on gifts. Estimate how much Christmas dinner groceries will cost you. Give yourself a decorating limit. Find that magic number that will give you the Christmas you want but still can afford. Start to put the money aside. It’s much easier putting away $100 a month in a savings account all year then coming up with $1200 in December. That small amount each month will alleviate a lot of the stress surrounding the holidays.

What about credit?
Look at the true cost of credit. If you charge $1000 for Christmas onto your credit card and just pay the minimum 3% payments after that you will be paying an additional $971! That’s almost the entire budget for next Christmas. So it’s better to save the money ahead of time to avoid the additional costs, if you do use credit make sure you have a plan to pay it off as quickly as possible.

Enjoy it
The most important thing to do during the holidays is to make sure to enjoy your time with friends and family. Relax sit back and know that you have this Christmas paid for… You can worry about next Christmas the first of the year.

Tips for a Frugal Holiday

• Try a cookie exchange at work or church. Every one makes 2 or 3 batches and then swap
• Think homemade gifts. Make a calendar, photo album or recipe book
• Consider Secret Santa gifts with adult family members or coworkers
• Buy a potted tree and plant it in the back yard next spring
• Have the kids make homemade decorations, popcorn strings or construction paper and glitter
• Buy a timer for you outdoor lights
• Suggest a potluck dinner, you make the turkey everyone else makes the dressings

 ~ Nicole Olsen