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Life Wealth Work

“We All Have 24 Hours a Day”

“We All Have 24 Hours a Day”.

Have you heard people say this before? Usually it’s said by someone humble-bragging about how they manage to work 10 hours a day, raise children and run three marathons a year. Of course, they’re usually saying this to someone who can’t seem to find time to work out (or something similar that can easily be dropped off the list of daily activities).

Yeah, we all have 24 hours a day. But, unfortunately, we don’t all have the tools to make the most of those 24 hours.

Let’s look at two extremes.

Julie is a single mother that works full time as a line-worker in an automobile factory. Her two kids are in grade 3 and 6. Her day starts at 6am when she prepares breakfast, lunches and shuttles her kids to before-school care. Julie gets to work in time for a 9 hour shift. By the time the school and work day is done and everyone is back home, it’s usually around 6pm. Just in time to prepare dinner and help with homework. Of course, this assumes that Julie has already gone grocery shopping earlier in the week. By the time dinner and dishes are done, it’s easily 8 or 8:30pm. Exhausted – mentally and physically – Julie now has about 1-2 hours of free time.

Does Julie catch up on some housework? Maybe. Self care? Likely not.

That’s where Julie’s 24 hours goes.

Compare that to Eddie, who is married with two children in grades 3 and 6. Eddie’s wife – Francine – is a marketing consultant and he works as a bank executive. They have a nanny, maid and comfortably hire people to help with household maintenance, like gardening. Their nanny manages the children full time, grocery shops, makes meals and handles school pickup and dropoff. Eddie and Francine work long hours, but often squeeze in some gym time at lunch or go for a run after work. They frequently attend functions after work to network for whatever moves come next.

Notice the difference?

Julie, Eddie and Francine are all equally busy. However, one family has way more sources of help than the other.

Some might blame Julie for her predicament. “She shouldn’t have gotten divorced”, “she should have worked harder and gone to university”, etc. What people fail to grasp is that Julie made the best of her situation. She came from a working class family that didn’t have money for the extra layers of support provided to Eddie and Francine in their youth.

Julie really had no choice but to reduce the burden she placed on her family by working at McDonalds through high school to help with bills. She blasting through community college and then took whatever decent job came first. Then came the children and emotionally abusive husband.

Eddie and Francine, on the other hand, came from upper-middle class families, which themselves hired nannies and maids. Their first jobs were handed to them by their parents’ friends, and were in junior corporate positions. Their parents never needed help with bills and Eddie and Francine could both comfortably educate themselves up to the masters level. While Eddie leveraged his junior corporate jobs into full time work, Francine took a risk and started her own business. If it failed she could always move back with her parents. By the time they married, Eddie and Francine were already getting more than their 24-hour’s worth.

“We All Have 24 Hours a Day”

There are 24 hours in a day, but unfortunately that time isn’t allotted the same way across classes.

If you’re someone who can afford help, count your blessings and realize that you have a huge advantage.

If you’re someone who can’t afford help, I suggest you identify your top 3 priorities in life and allow yourself to leave lesser priorities untended.

Start building wealth today!

Categories
Wealth

Free Financial Education Webcasts

The Canadian Securities Institute (CSI) – the Canadian organization providing Canadians with financial education and licensing exams – is releasing a number of free webinars to the general public in support of financial literacy month.

I’ve listed the free upcoming and previous (replays available) webcasts below. Click here to register.

MANAGING MONEY AND DEBT WISELY

Date: November 4, 2020
Duration: 60 minutes
Time: 12:00 pm to 1:00 pm EST
Cost: Free

Build a solid foundation of financial knowledge to make the most of your income, meet financial commitments and make wise spending decisions. Know how to track expenses and budget to feel more in financial control.

PLANNING & SAVING FOR THE FUTURE

Date: November 17, 2020
Duration: 60 minutes
Time: 12:00 pm to 1:00 pm EST
Cost: Free

Understand how to set objectives, identify paths, and take concrete steps to achieve your life and financial goals—such as education, retirement, and more. Develop an understanding of financial products and service options.

PREVENTING AND PROTECTING AGAINST FRAUD AND FINANCIAL ABUSE

Date: November 24 2020
Duration: 60 minutes
Time: 12:00 pm to 1:00 pm EST
Cost: Free

Be aware of the signs to watch out for, learn how to minimize the risks and know what to do if you are a victim. Anyone can fall prey to financial fraud. New scams frequently emerge to target people resulting in financial loss.

CANADIAN BANKS WEBINAR

Date: October 21, 2020
Duration: 60 minutes
Time: 11:00 am to 12:00pm EST
Cost: Free

This webinar will uncover the critical factors in steering a leading North American bank through turbulent times. It will identify the strengths of Canadian banks and discuss the key developments in risk management.

PROJECT FINANCE AND INFRASTRUCTURE BRIEFING: THE IMPACT OF COVID-19

Date: October 19, 2020
Duration: 60 minutes
Time: 2:00pm to 3:00pm EST
Cost: Free

This webinar explains the multiple ways by which the coronavirus pandemic has affected the project finance and infrastructure sector including unprecedented traffic declines, continuing negative impact on projects in construction and a weakening credit quality of sub-sovereign off-takers.

CANADIAN HOUSING OUTLOOK: UPWARD CLIMB

Date: September 23, 2020
Duration: 60 minutes
Cost: Free

As remote working has become the norm, more Canadians are opting for home-ownership outside of congested cities, furthered by the Bank of Canada’s mortgage rate cuts. This webinar discusses emerging risks and opportunities in the Canadian housing market, including highly localized findings from our neighbourhood and city / town-level forecasts.

SUPPORT BUSINESS RECOVERY WHILE MANAGING CREDIT RISK

Date: September 16, 2020
Duration: 60 minutes
Cost: Free

During this webinar, we will examine the steps lenders must take so they can support their clients’ rebuilding efforts while managing their own risk exposure, focusing in on cash flow, working capital and projections. We will also explore the risks most likely to persist as the economy recovers, the impact of an uneven recovery on various sectors, and the impact of government stimulus.

CANADA—SOVEREIGN AND PROVICIAL WEBINAR

Date: July 9, 2020
Duration: 60 minutes
Cost: Free

Canada and its provinces face significant deficits, large increases in debt, and a prolonged recovery from the pandemic’s unprecedented shock. Join the Moody’s Sovereign team as they discuss their view on credit pressure in Canada.

NAVIGATING PROBLEM LOANS AND SME CREDIT RISK DURING THE PANDEMIC

Date: June 30, 2020
Duration: 60 minutes
Cost: Free

In this webinar, we’ll address the macroeconomic impact of the pandemic, how SMEs in particular have been impacted, and what skills lenders will need to appropriately assess business viability and, ultimately, repayment capacity.

IMPACT OF CORONAVIRUS ON CANADIAN STRUCTURED FINANCE

Date: June 15, 2020
Duration: 60 minutes
Cost: Free

This webinar will discuss the impact of COVID-19 on the Canadian Structured Finance sector. It will cover topics including Credit card ABS, Auto ABS, RMBS, Covered Bonds and ABCP.

HOW TO BECOME YOUR CLIENT’S FINANCIAL ARCHITECT

Date: May 7, 2020
Duration: 45 minutes
Cost: Free

This webinar focuses on the importance of collaborating with clients during this unprecedented time and beyond. We will discuss the tools you need to become your client’s Financial Architect, reinforcing your value to existing clients and helping to attract others.

BEHAVIORAL ECONOMICS: INVESTING DURING A CRISIS

Date: April 29, 2020
Duration: 60 minutes
Cost: Free

Decades of social science research indicate that we are poor planners, fickle savers and self-destructive investors, and much of the reason lies in how we process information and make decisions. This webinar focuses on how to become better financial architects for clients by understanding the behavioral challenges while making financial decisions, especially in times of crisis.

HOW ARE YOU DOING? HOW ARE YOUR CLIENTS DOING? – ADVISOR TOWNHALL

Date: April 7, 2020
Duration: 60 minutes
Cost: Free

Advisors are on the front lines, and under tremendous pressure, to deal with the expectations and stresses of clients during this unprecedented time. This webinar talks about how advisors can navigate these challenging times and get through this crisis. It also prepares them for the opportunities in its aftermath.

Register here for any of the above upcoming webcasts or webcast replays.

Categories
Wealth

8 Simple Wealth Hacks for Financial Literacy Month

November is financial literacy month so here are some easy wealth-creating hacks:

  1. Sleep on major purchases. This allows time for emotional excitement to ease, so you can rationally consider your actions. Often, either the novelty of the potential purchase wears off or you forget about it altogether.
  2. Consider the pre-tax cost of purchases. Someone in a 30% tax bracket that pays a 13% sale tax needs to earn $161 to buy something that costs $100. (($100*1.13)/0.7)). Take this one step further and consider the number of hours you must work in order to earn that $161. You might re-consider more discretionary purchases.
  3. Immediately allocate your pay raises. For example, if you receive a pay raise of $100 month, you could increase your automatic monthly mortgage payment by $50, investment contribution by $25 and bank the rest. You’ve invested in your future while retaining a bit more spending money.
  4. Consider the ‘real estate’ required for each purchase. If a purchase simply adds to home clutter, perhaps it isn’t really needed.
  5. Start investing at a young age. The longer investments have to compound, the less you need to invest over your lifetime to reach a specific goal. In fact, if feasible, parents and grandparents can provide a 20yr head-start by investing a small amount during infancy.
  6. Avoid unnecessary expenses. Many administration fees, late fees, overdraft fees, etc. are unavoidable with good planning.
  7. Time vs. money. Your time is finite, so it’s important to balance time with money. If a purchase earns you valuable time to spend with family or build a business it might be worth the expense.
  8. Less investing activity is best. For most, the best investing strategy is to invest when you have the money and remain invested as long as possible. Few people – even professionals – are able to time the markets. So keep it simple and stick to a routine.