June 2010
This article is provided by Brian Marling of Neighbourhood DLC – Canada’s #1 Mortgage Team 905.372.7222
Blondin was a world famous tight-rope walker in the early 20th Century. One of his more famous feats was a walk across Niagara Falls. When he arrived at the other side, as the story goes, the crowd naturally went wild with cheers and applause as they chanted his name, “Blondin! Blondin! Blondin!”. Blondin, being a great showman, played to the crowd as he asked them , “Do you believe I can make it back across to the other side?” The crowd went nuts and yelled “Yes,Yes”. “This time”, he said, “I am going to carry someone on my back. Do you believe I can do it?”. At this point the crowd went into a frenzy with their positive affirmations as they couldn’t wait to see it. Blondin then shouted to the crowd, “And who will be that person?”. Of course the crowd became uncomfortably quiet.
Not many of us can walk a tight-rope, certainly not across Niagara Falls. However, when it comes to our finances it seems that many have risen to the occasion and quite enjoy performing the High-Wire Act. In fact, recent statistics have indicated that Canadians on average have a debt-to-disposable income ratio of 1:145. This means that for every $1.00 of disposable income we are spending $1.45. How is that even possible!! Enter the wonderful & mysterious world of banking, credit cards, buy now pay later, you deserve it all, blah,blah,blah. Now that we are in this mess, how does one get out.?
At the risk of sounding repetitive, which is necessary until one ‘gets it’, there are a few simple secrets that I will share with you now. From a philosophical viewpoint, which is a necessary starting point, I borrow from one of our Ancient scripts which says that the starting point is to be content with what you have. What a simple yet powerful thought. Perhaps easier said than done especially in a culture which constantly tries to make us feel inferior if we do not have the latest, greatest, fastest, bestest whatever! However, regardless of whatever the cultural message is, it is a choice we make to be satisfied or not. So then the starting point must be Contentment. Which is not to say that we shouldn’t strive for a better quality of life or that it’s somehow wrong to desire nicer things in life, but if we aren’t first of all content & happy where we are then it is unlikely that more will make us so. This point was driven home to me once again when I went down to Victoria Park earlier this week to watch the Watoto African Children’s Choir. What an inspirational display of the wonder of the human spirit. Here is a group of orphaned children whose parents mostly died of AIDS displaying the most amazing joy I have seen in a long time. What a tremendous personification of peace and contentment I witnessed. Yet who could have more reason to be discouraged, dismayed or disillusioned with life. Clearly they have chosen a different path and have obviously learned the first secret of contentment, while at the same time striving for a better life. Not only did I find it inspirational but it also helped me to gain perspective once again.
Next is to be aware that how much we earn is not as important as what we do with it. That is why the 70/30 Principle works no matter what your income is. What is the 70/30 Principle? It is the next secret to successful living. The 70/30 principle goes like this: divide your after tax income into 2 parts – 70% in one pool and 30% in another. There are 3 parts to the 30% pool: 10% must go into savings, 10% must go into some kind of investment, and 10% must be given back to your church or favorite charity. The 70% pool is for everything else – rent/mortgage, food, clothing, insurance, etc. If you commit to this plan you will create real wealth in your lifetime. The challenge is deciding to live differently than you have been unless of course you have already arrived.
“But I’m barely paying my bills now and almost always run out of money before the end of the month.”, you say. My response – how is that working for you? Perhaps now is the time that you decide to live differently. The concepts I have shared above are simple to follow. But I never said it would be easy. If you want what most people have then continue to do what most people do. But if you truly desire change then it must start with you.
Here at Neighbourhood not only do we provide Award Winning Service and the best selection of mortgage products in the country, but we also provide our Free Financial Fitness Seminars and have also added Personal Financial Coaching for those who truly desire a change but would like some assistance along the way. If you don’t change something then don’t expect different results. As always you can call us anytime to discuss how we may be able to help you.
Here at Neighbourhood, & the home of the Neighbourhood Mortgage Team, we are concerned for the total well-being of our clients. That’s why we are taking the years of experience from our award winning office and offering a series of FREE Seminars to our clients and their friends & families and to the public at large. The seminars, entitled ‘Financial Fitness’, will be offered free of charge and will cover all the secrets of successful personal financial freedom. If interested please call our office at 905.372.7222 to reserve your spot as seating will be limited.