By Karin Mizgala, co-founder and CEO Money Coaches Canada and the Women’s Financial Learning Centre

In 15 days we begin a fresh year and many Canadians will find themselves making resolutions about money. Most promises will be about specific actions like spending less, saving more, retirement planning, and paying down debt. It’s not my nature to be pessimistic, but the majority of those resolutions will fail, for a very simple reason. When the cheering and toasting ends on New Year’s Eve everyone will be exactly the same person they were before; the same person who didn’t spend less and save more in 2015. Some people will ride a wave of New Year motivation for a while, but waves roll into shore and disappear. As Albert Einstein said, “No problem can be solved from the same level of consciousness that created it.”

Some people will make lasting changes to their financial situation, but not because they lay out a strict budget, or invest in one mutual fund over another. They will change their relationship to money, and that will make all the difference. They won’t try to wrestle themselves into making “better” financial decisions that leave them feeling restricted or deprived. They will do something many people can’t imagine. They will make friends with their money. They will begin to see money as a trusted partner instead of something to battle against. Continue reading →

By the MCC Financial Literacy Team

November is Financial Literacy Month in Canada and in our November 11^th blog post Money Coach Melanie Buffel asked readers, clients and fellow Money Coaches to share personal stories about their financial journey. She challenged them to consider; “What’s been your biggest money lesson?” and “What have you learned about money that you wish you knew when you were younger?”

Here are some of the responses we received.

“I think the biggest lesson is that you cannot plan for everything. Life happens and you can only do your best to deal with it. But it’s also true that any planning you have done will often be to your advantage when the unexpected happens. For example, you saved for travel, so that money is available if you need an emergency roof repair.” Anthony Larsen, Money Coach

“Every payday we put aside equal amounts for Christmas gifts, property taxes, car insurance, annual activities (like hockey or skiing), vacations and any other annual expenses that are not monthly payments. By doing this we ensure that when the payment is due, we aren’t scrambling at the last minute to find the money magically. Talk about taking the worry out of money, it’s always there when it’s needed.” Leslie Gardner, Money Coach Continue reading →

By Melanie Buffel, BA Psych, MBA Candidate

November is Financial Literacy Month in Canada and this is a wonderful opportunity to learn from each other’s experience, sharing our knowledge and feelings about money.

There are so many financial concepts, products and services that one of our goals as Money Coaches is to increase each client’s financial knowledge and skills. We intend that after our work together is complete, clients have a financial direction and plan, are confident making financial decisions and know what questions to ask when buying products and services. Financial literacy is power.

When people are in what I call the “Money Fog,” where they feel overwhelmed by the details and choices in front of them, the numbers on a spreadsheet or in a bank statement feel disconnected from their life and behaviours. Together we take action to clear that fog and make sense of the numbers, with decisions driven by goals and a clear path to achieve them. Financial literacy is about more than the difference between an RRSP and a TFSA, (although that’s important to understand too). Financial literacy is about clarity around your goals and a feeling of connection to your money. Continue reading →

By Sheila Walkington, Co-founder and CFO Money Coaches Canada

How would you react if I told you that many of your friends are in debt? You probably wouldn’t be shocked. You’d probably nod your head in agreement, and say something like, who isn’t? Because the likelihood is you are probably in debt too. According to Statistics Canada in 2012 71% of all Canadian families had some debt. Gradually the stigma around debt that our grandparents would have felt has softened into an irritating, but accepted side effect of the good life.

The odd thing is, you would think that the less money you made the more likely you would be to be in debt. Not so. According to a recent May 2015 article by Theresa Tedesco in the Financial Post; “Today, households with at least $100,000 or more in total income account for 37 per cent of all debt in Canada. Households with income of at least $50,000 but less than $100,000 represent 38 per cent.”

I think there are two factors at work here; rising expectations, and hefty demands on time. Continue reading →

By Janet Gray, BA, BAdmin, CFP^™, CHS, EPC, CPCA

I am often asked, “Do I have enough to retire?” It’s an earnest question, asked by smart, educated people with good incomes, who want to be sure they are making good decisions about their future. They hear all sorts of mixed messages in the financial media, or maybe even from friends, about how much they need to retire. You need at least X amount of money saved, or you must have Y% of your pre-retirement income still coming in.

I call those sorts of statements or formulas top-down planning. With top-down planning you’re trying to meet an external expectation that has nothing to do with you and your needs. Top-down plans are the ones that make many people nervous and worried about the future.

I believe the way to create a personalized retirement plan that excites you rather than unnerves you, is through bottom-up planning. As you may have guessed, bottom-up planning is not about meeting an external expectation it’s about meeting your needs. And it begins by being very clear on your current expenses. Continue reading →