4 Rules for Finding Financial Bliss

One thing that drives most people crazy about money is the number of mixed messages the financial world sends out. There are the companies who throw credit at you, offering you cards with the latest bells and whistles: points to fly, free travel insurance, cash back.  They waive low interest rates under your nose and promise you that you can have everything you want right now for just a small monthly minimum payment.  On the other side of this see-saw, the experts are telling you how evil credit is, how it will sap your cash flow and how stupid it is to pay interest. Who would you rather believe? The guy who tells you it’s okay to go shopping, or the guy who calls you a moron for spending money you haven’t yet earned? Rhetorical question, right?

Then there are the mixed messages about saving for retirement: On one side of the teeter-totter are the Joes who tell you that if you aren’t making the maximum contribution to your RRSP every year, cat food will be too good for you. On the other side are the fellows who claim that you shouldn’t even put money in a retirement plan because the government will give you all you need. Who would you rather believe? The guy who tells you to go ahead and spend all your money because saving is a waste or the guy who tells you it doesn’t matter what you do, it won’t be enough and you’re a loser? Hmm.

The insurance industry has it’s own playground toy: On one side sits the boys in the t-shirts that say, “Term insurance is the best.” The lads on the other side are wearing t-shirts with the slogan, “Permanent insurance is the best.” So which is it?

Is it any wonder that people are confused?

While people typically associate me with debt, I’m here to tell you it’s not all about debt. Credit isn’t the monster. Ignorance is. And it doesn’t matter if you’re buying a house, buying insurance, or buying an investment, if you don’t have a balanced approach to your financial life, you’re going to be off-kilter. And if you don’t find the solutions that are right for YOU, you’re never going to get to where you want to be.

The only way to find balance is to be able to hold more than one thought in your mind at the same time… actually 4 thoughts, that’s all:

•          Don’t spend more money than you make, so no credit card or line of credit balances, and no overdraft

•          Save something; how much depends on how old you are and how much you’ve already saved

•          Get your debt paid off; consumer debt first

•          Mitigate your risks with an emergency fund and enough of the right kinds of insurance for YOU.

Have you joined mymoneymychoices.com? Help raise Canada’s MQ (money quotient) by getting smarter about your money and helping others get smarter about theirs. Isn’t it time we eliminated financial illiteracy in Canada?

Share this on Facebook


Share this on del.icio.us


Digg this!


Share this on LinkedIn


Stumble upon something good? Share it on StumbleUpon


Tweet This!


Subscribe to the comments for this post?


Email this to a friend?