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Every day I meet with clients whom have asked “How do I teach my children to manage
Their money?” It all begins with the GOLDEN RULE. The GOLDEN RULE is to pay ourselves first.

How we teach our kids about the GOLDEN RULE is of course to lead by example. I am a firm believer in tracking every penny that goes out of the pocket. Write down every penny you spend for a solid three months. That includes money going to child A, B or C. That way we are aware of where exactly our money is going. You will be shocked to see how much money you are handing over to your children for hot dog or pizza days at school. This can all be very costly on our budgets. This is why children have the magical thinking that money grows on trees.

Our job as parents is to teach our children the realities of life. Children usually have a sense of what money can do for them at about 5 or 6 years of age. A 5 year old would get $5 per week and $1 would go directly into the piggy bank. A child would get a $1 per year of their age for a weekly allowance. Therefore a 6 year old would get $6 per week and $2 would go into the piggy bank.

The GOLDEN RULE is to always pay yourself first. This money is a great investment in their future for college or university. Their wants and needs cost more as they grow older. Teenagers want to go to the movies, go bowling or go shopping which all adds up. The question to ask is do you have enough money in your budget to do all of those things? Or should you wait and save? Teenagers soon find they want more money and the only way to get more is to get a job.

These are very tough economic times and if you are having a difficult time maintaining your budget , please call 519-250-8060 or 310-PLAN for a no cost, no obligation meeting.

I am a big believer in keeping track of where you spend your money, because if you don’t keep track of where you spend, it’s very easy to spend more than you have.

Every day I meet with people in Windsor who are worried about preparing a budget, and I give them all the same advice: You must go into the budgeting process with a POSITIVE ATTITUDE. Don’t think about the negative aspects of making a budget; concentrate on the rewards.

You may be able to pay down your debt or save for retirement. Your budget is the tool for you to reach your goals.

STAYING MOTIVATED happens over time and becomes routine. Staying motivated is hard no matter if your goals are to keep physically fit or financially fit. You may consider rewarding yourself or raising the bar a little higher and save more.

Finally you need to have REALISTIC GOALS. It is always best to choose short term goals such as paying off a bill or saving for a vacation. Attaining short term goals helps to build and maintain your motivation. Try these budgeting basics that work:

1. Write down every time a penny goes out of your pocket. Yes, every single penny. It really does add up. Do this for three solid months. Tracking your spending behavior actually works. You can’t change it if you don’t see it.

2. Add these numbers up and put them into your monthly budget along with your fixed monthly bills.

3. Ask yourself if you are happy with where your money is going or is there a yes with a condition? ie: Spending $60 a month at the coffee shop is making them rich. Try spending $30/month and putting the other $30/month in a separate savings account with no attached debit card access.

You may find your debts unmanageable and feel that you are getting nowhere fast. A consumer proposal will give you the fresh start you need. Please call me at 310-PLAN or 519 250-8060 or email me to book a no cost, no obligation meeting.

Yes, I do realize the holidays are over, but now is the time to start planning for 2010. One of the most important things a person can do is to set a budget. Not just for gifts, but for everything. Our phone lines are quite busy in January as people start to receive their holiday credit card bills and are shocked to discover how much money they spent.

So here is the plan. Set a limit on how much you are going to spend and then set aside money each month in advance. For example, if you are planning on spending $500 on gifts, set aside $42 each money. If you start doing this in January, you will already have the $500 set aside. It is a lot easier to save a little bit each month than to try to come up with a large amount all at once.

I realize that many people have debt they can’t manage and that is where we can help. Sometimes bankruptcy or a consumer proposal is the best way to get a fresh start.

If you have having difficulty managing your debt, call us at 310-PLAN or 519-250-8060.

I hate to be the bearer of bad news, but September was a record month for filings for our fim in Windsor.

The first reason is obvious to anyone living in Windsor. Companies are reducing their work forces or shutting down. This in turn leads to lower incomes for those who worked at the company, and will also have an effect on the people who serviced those companies. It can cause hardship on everyone from the suppliers to the coffee shop across the street from the company.

The other reason for the record filings was the changes the government made to the Bankruptcy and Insolvency Act. If someone was thinking about filing for bankruptcy a month or so ago and realized that filing after September 18, 2009 might cost them more money, many of them decided to file before the rule change.

If you think you may need to file for bankruptcy, call me at 519-250-8060 or email me.

IF I AM ALREADY BANKRUPT CAN I BE ELIGIBLE FOR A CONSUMER PROPOSAL?

Yes a consumer proposal can be filed be someone in bankruptcy. In fact it is quite common for someone who after filing bankruptcy has an increase in income or a windfall.

When faced with numerous loan payments and credit cards bills each month, the first step for many people is to find out if they can obtain a debt consolidation loan. The debtor (the person who owes the money) will go to his or her bank and apply for the loan. If the debtor qualifies, the bank will then give a loan and pay off the other credit card and loans. Once you receive the loan from your bank, if the bank doesn’t cut up your credit cards, you need to make sure you do it yourself. If you currently don’t have a source of income, it is unlikely you will be able to obtain a loan.

The main advantage of a debt consolidation loan is that it takes all of your debt and combines it into one monthly payment. Your new loan payment should be less than the minimum payments you were paying on your credit cards and loans. If it is not a lower monthly payment, this might not be the best option for you.

Another factor to consider will be the interest rate you will be charged. Most credit cards have interest rates between 10% and as high as 28% per year. The interest rate charged on the loan should be lower than you are paying now.

You will also need to consider any other terms the bank has. Do they want to put a lien on your car, or do they need a cosignor? If they do, you need to consider the risk to your car and the cosignor if you are unable to pay the loan in the future.

If you are able to make a monthly payment, but you don’t qualify for a debt consolidation loan, a consumer proposal might be a better option for you. You can call me at 310-PLAN or email me to discuss this option in more detail.

As a Windsor trustee, this is a common question.

First question – is there equity in the house. Equity means if you sold you house, after paying the mortgage and costs would there be money left over? If there would be bankruptcy may not be for you. The money that would be left over belongs to the bankruptcy and you would have to pay it to your bankruptcy. If the amount is large enough a consumer proposal might also be something to consider.

If there isn’t equity, as long as the mortgagor agrees, the bankruptcy will not take your house.

I had a debtor come in today to make the final payment under the terms of his consumer proposal. He was a very happy person.

He had heard a rumour that now that the proposal is done, he now has to make repayments for the balance of the debt. He didn’t think it was so, and just wanted confirmation. I told him that expect for some circumstances (such as student loans that are less than 10 years old), this is not true. A clause in the proposal states that if the creditors accept the consumer proposal it is for final settlement of the debt.

If you have a question, feel free to send me an email.

There are a two main reasons for bankruptcy in Windsor. The first is marital separation or divorce. A family unit has 1 or 2 incomes, and 1 set of expenses. After separating, the 2 spouses each of the same income, however now they both have their own set of expenses. In addition, each might have their own debt, plus joint (in both of their names) debt.

Another factor in Windsor is the reduction of overtime and in many cases layoffs. Employees might have had steady overtime hours 2 or 3 years ago, however, now their hours have been cut back to 40 or less. The debt was probably manageable at 60 hours a week, but now at 40 hours a week, there just isn’t enough paycheque to go around. If this sounds like you, then call me at 519-250-8060 or email me so we can discuss the options that are best for you.

Realizing that you have financial difficulties is overwhelming. Next you need to know where to turn to get advice in Windsor on what your options are to deal with your debt. When you call a trustee consider these questions:

1. Did they take your call right away or within a reasonable amount of time? If they didn’t, do you really want to deal with them?
2. What was the telephone manner? Were they polite on the telephone, or did they treat your poorly? If you did not like their telephone manners do not deal with them.
3. Were you able to speak with a trustee or someone in a position to give you answers on the phone?

You have the right to be treated with respect when you call for assistance. You do not have to meet with someone you are not comfortable with.

When you call, you will speak with me or another Trustee, and you will meet with me personally. Call me at 519-250-8060 to discuss options that may help you.