Budgeting Part 1

Lets face it. It is so much easier to spend than save. We live in a spending culture. We work, we spend, we work, we spend ... such is the way we live our lives in North America. 


Spending is like a disease ... if left untreated the credit card bills start to grow. Does this remind you of anyone you know?

Costly Pet Ownership

Are you a pet owner? If you are you among a large group in Canada. From what I have been able to find there are some where in the neighbourhood of 8 million domesticated dogs and cats in Canada.

Lets be honest, when you decided to get an animal did you consider the financial costs of pet ownership. The pet industry is huge and very profitable, but the effect on the personal budget can range upwards of 15 to 20 percent of the owners income.

Canada's Federal Budget 2011

The Federal Government released it's budget this week. Now the question is what effect will it have on your financial life in 2011?


Although there are no significant changes, due to a impending election, there are some financial programs that are being extended for business along with some tax credits for parents and children. 

Check out the information provided by Gary Schlenker of Grant Thornton Kelowna and a PDF link for more detail. 


Thanks Gary for the information ...

5 Ways to Spend Less Now

Spending less is like going on a diet. We rely on will power with out a method or system to reach our goals. And just like most diets we are doomed to failure.

Over time our debt starts to balloon and the only solution is a drastic change of spending habits. Unfortunately, just like crash dieting, the lasting effects of these changes only end in frustration and we eventually give up.

For most of us spending too much is not an illness but is a learned behaviour. The good new is this  behaviour can be changed.

After more than 15 years in the financial industry watching what works and what doesn't, here are 5 proven strategies that work in every day life to spend less and have more control over your financial life.

Shrinking Food Size

Financial pressures are every where and food prices are starting to rise. Coffee is up 30-40 percent, flour is almost twice the price, even potatoes have increase 50 cents a bag.

So you can imagine how excited I was to find my favourite ice cream had not gone up. That was until I got home I realized why.

The serving was smaller. That container was the same in size, but the serving size was 15 percent smaller and price was the same.

Financial Problems Start Here

I don't know about you ... but tax time is a time for financial reflection. All I want to know is ... am I making progress or am I falling behind.

Since I run my own financial business, I track everything, the gas for my car, car insurance and the costs to run my office. I also track my personal costs, food budget, hydro costs, and debt costs from the year. Every year I am amazed at how much I spend.

After more than 15 years in the financial industry if I had to pick the most important thing you can do to make your financial life better is to focus on your cash flow. That's right I am referring to dreaded "b word" ... budget

Like weight gain, cash flow problems happen over time. Before we go over some simple ideas on how to improve your cash flow ... let me tell you story and you see if this reminds you someone you know ...

Financial Review for 2011

2011 is over now and your annual statement is soon to arrive. Is your account up or down? Are you closer to retirement? What a great time to review your financial game plan. 


Even after being in the investment industry for more than 15 years nothing can be more depressing than reviewing your investment returns after a decade and only seeing a average return of only 3 or 4 percent.  


If this is you, you are not alone.


So now the question is should you change what you are doing and give up investing altogether? If this question is weighing on your mind here are some questions you should ask yourself and check out the infographic on investor behaviour below.

Smart Christmas Shopping

What kind of Christmas shopper are you? My wife and I shop totally different. 


My wife starts early takes her time and is driven on price. I, on the other hand, am willing to pay a bit more, I leave my shopping to the last 2 to 3 weeks, and I can't get out of the store fast enough.


What if, no matter the type of shopper you are,  you could shop faster, easier, and save money while leaving your wallet at home?  


All you need is the latest app on your Smart Phone and you are ready for the mall. Check this from ABC News ....

Retirement Study

When was the last time you reviewed your financial game plan to see how your plans for retirement are coming along? 


If you are like most Canadians your main focus is holding on to your job, paying your monthly bills and maybe planning a winter vacation.  Retirement is the last thing on your mind.


In a November the Gandalf Group issued the Cosumerology Report, for Bensimon Bryne, interviewing 1,500 Canadians from the age of 50+ on their key financial and lifestyle issues facing them as they planned for retirement.  


Then they compared their responses with other Canadians that where retired, and the results were enlightening.

Retirement Reality Time to Downsize

The retirement reality is hitting baby boomers much harder than expected. For many the family home (or should I say the equity in your home)  has become the hope of retirees, and downsizing is the buzz word in the financial community.

The idea is a good one. Sell your large 2,000 - 3,000 square foot home to buy a less expensive smaller home, town home or condominium and invest the difference to create income at retirement. 

Add to this many baby boomers are dealing with downsizing their parents, downsizing is an issue that many families will be dealing with for next 10 to 15 years. So the question is downsizing sounds is such an easy solution ... why is so hard to do?

Inflation is Knocking

I had a great discussion with my daughters about the increasing cost of everything when talking about the monthly bills. The stark financial reality of price increases become more apparent as you move out, but it is even more of an issue in retirement.


Inflation is just a nuisance when you are working because the solution is easy ... just work longer hours, or get a second job. When your are retired, inflation effects on your income is critical when you are on a fixed income.


Staying ahead of inflation is a losing battle over a life time. As with taxes, inflation has a way of catching up with you.


I got my hands on an issue of Reminisce Magazine the other day and it had a list of the prices of many staples from 1937. Check these prices out

Downsizing in 3 Easy Steps

As a financial professional most of time I only get calls when someone is in a financial transition (that is financial speak for a change that has not been planned for).


The loss of a job, forced retirement, dealing with aging parents and the dreaded sale of family home or now referred to as "downsizing".


The idea of downsizing is a good one. Your new smaller home is cheaper, easier to maintain and if properly located can save money on transportation. More money in your pocket the better your retirement ... but is it worth the pain of change?

Financial Decisions vs Washing Dishes

My wife thinks I'm crazy, because I can draw parallels between two completely different things.

I am of the option that behavior in one area of life recreates it self in other areas ... hence my comparison with doing the dishes and dealing with planning in financial matters.

See if you see the similarities ...

Diet choices Salad vs. Burger

The holidays are over and if you are like me you are a little wider now than you were at the first week of December. Losing weight and dieting just seems to be part of my New Years routine.

We all know that losing weight all starts with eating less calories. The challenge for many of us with busy life styles is we eat out more than ever. But do you really know what your are eating when you look at the menu? Would you eat differently if you did?

This weekend there was a great article in the Vancouver Sun RATE YOUR PLATE: What's Really On the Menu? It includes a link to the Fatabase Database to help you compare meals at your favorite restaurant.

3 Ways to Retire Sooner!

With the economy slowing, real estate prices dropping and retirement savings shrinking many are wondering what to do now? Put off retirement? Work a second job? Or resign your self to a weekly trip to the mall instead of annual trek to Arizona? Under all this pessimism there is hope.

The reality is all these things have happened before (although for many it has been more severe than expected) and if you are properly positioned and prepared here are three things you can do to give your retirement plan a boost.

Carnival Rio de Janerio - a 5 day Celebration!

Of all the financial goals I hear wanting to Travel is always at the top of the list. To help with ideas on travel I have asked a friend of mine Daniel Rae of Vacanza Destinations Kelowna to provide some information on travel ideas.

Daniel has extensive travel experience and is out visiting travel destinations 3-4 times a year. As a travel wholesaler he knows personally the hotels and restaurants he recommends.

According to Daniel if you are looking for something more than Las Vegas, Mexico or Disney Land you might enjoy Rio de Janerio ...

Debt in Kelowna - Have we been here before?

According to the Bank of Canada ... household debt is emerging as the greatest risk to Canada's financial system and the financial lives of Canadian and Okanagan families.

The Amazing part of all this ... the personal credit crunch and rise credit card debt is nothing new ... check out these two video excerpts from the CBC archives from December 1978 and the second from November 2008.

Change your life ... if it isn't working!

Kelowna is at its best this time of the year. Summer sunshine, time with family and of course cooking on the barbeque.

Amongst the fun and the sun there are those that have lost their job, or had their hours cut back and watch their incomes decrease. Many are looking to the fall with a state of fear and disbelief.

Many I have talked to over the summer were with their former employer for more than 15 years and have never lost a job before!

How will they pay their hydro bill, credit cards, what will they tell their kids if they have to cancel the family vacation or can they pay their mortgage?

What can you do to change your life if things aren't working for you? Check out this new interview from Anthony Robbin"s training blog. See the Introduction and Video below.

In this interview I meet with two very successful students, Frank Kern and John Reese.

Both of them are self-made multi millionaires who made their fortunes by selling products on the Internet. What’s particularly interesting about both of them is that neither had any “real” education. Neither one finished college and they both went from being broke to becoming wealthy.And they still continue to thrive in today’s economy.

So the purpose of this interview is to uncover the traits that successful people have in common. Specifically, the traits that cause them to take massive action and follow through.

As you’ll see, the solution is really quite simple and available to us all.

Make to share this with others. Also check Tony's blog for more great ideas to put your mind and body in the right state to improve you life!

Mike Hassard Kelowna

Renovating Your Financial House Part 4

The markets are in turmoil, debt levels are rising, now the economy is slowing. With less income how do you pay off your credit cards, go on a vacation or retire when you planned?

In the fourth part of my series "Renovating Your Financial House" I will be focusing on what you can do improve the income part of your financial house.

Control of your income is central to your success ... but when was the last time your really looked at it? Do make enough to pay for things you needed? What about the things you want? For a quick assessment check your tax summary and then your bank account. How much did you keep last year? For most the answer is NOT ENOUGH!

Maybe it is an extra 5,000 for a vacation each year, 7,000 to clear your credit card debt or an extra 10,000 to finance an early retirement.

Here are few ideas on how to increase your income ...

Open your own Internet business. With little expense and risk you can create your Internet business. You can set up a website or blog at no cost. Do market research on line. Even converse with potential clients from the comfort of your own living room. Keep in mind all business have risk and if you are looking to supplement your current income you don't need to anyway.

Get a part time job doing what you love. If you are an accountant, seniors need your help at tax time, if you are marketing manager provide advice to small to midsized business or maybe you can help the neighbourhood with landscaping. Again the idea is add 3,000 -5,000 a year to pay for your vacation or pay down your credit cards.

Upgrade your current profession or learn a new one in your spare time. Take a course as care aide, or take a sales job for a local company. Find out something new and increase your ability to make money and increase your value to current employer.

If you have been laid off recently or know some one who has check a previous post "Lost Your Job in Kelowna ... Now What".

If you are looking for more ideas check out the 3 other parts of this series. Just us the search tool on my blog using the title "Renovating Your Financial House"

Mike Hassard Kelowna

Renovating Your Financial House Part 3

The markets rise the markets fall ... how can your build savings in an environment like this? Good question.

As part 3 of a 4 part series on Renovating Your Financial House we will be focusing on how Build Saving to create a life for you and your family!

The solution is not the best mutual fund, investment strategy or tax strategy. This is a great way to sell a product ...but it over looks what it really takes to grow net worth ... the Pareto Principle or the 80/20 rule.

What Pareto taught was for many events, roughly 80% of the effects come from 20% of the cause. So for example 80% of all goals comer from 20 % of the team or 80% of your income come from 20 % of your work.

So you ask how does this relate to building savings?

Here is what I have found after more a decade in the investment business, investment success has more to do with behaviour than the investment. Of course you need the correct product based on your risk tolerance, properly diversified and effectively managed. But this is the 20%.

The 80% is everything else going on in your life that will contribute to a bad financial decision. Things like losing your job, getting injured on the job, separating from your spouse, and premature death of a family member.

If you don't have the rest of your plan set up, along with a contingency fund you will be forced to use your investments at the wrong time. When the job markets are bad, housing prices are down and your accounts are down. And if this wasn't bad enough you may owe taxes as well.

Every year I meet people forced to make these kinds of choices, costing hundreds, sometimes thousands of dollars to fix a short term problem at the expense of things that are really important to them.

Unfortunately you can't see the future. The only way to invest or stay invested is to monitor your cash flow and review your plan regularly.

We've all heard "Buy Low and Sell High". Selling high is hard .... because you don't know when the price is really high. But buying low is even harder. Usually when things are really low ... there is a reason. No one has any money. Make sure this isn't you!

(Check out my article "Investing in Times Like These" with a link to some great resources from Mackenzie Financial.)

If you don't have a written game plan ... now is a good time to put your goals to paper and set up a sound financial house.

In my final week of Renovating Your Financial House we will be covering Income Management and how to create income to fund your financial game plan. Use my blogs search widget to find all 4 parts.

Mike Hassard Kelowna