This article is provided by Brian Marling of Neighbourhood DLC – Canada’s #1 Mortgage Team  905.372.7222

Yes, really!  Now I know that on the surface it may not seem like that is true, especially according to a recent statistic  that says on a National  level every Canadian citizen (from infant to senior citizen) owes approximately $42,000.  That number is a per capita share of our collective Canadian consumer debt which has skyrocketed to north of $1.3 Trillion dollars – yes TRILLION!!

So then, how can I say that most people do not have a money problem? Because it is my firm belief that what most people have is in fact a Spending Problem.  The list of contributing factors is long: we live in a society that breeds entitlement; availability of credit is far too easy; many people are financially illiterate (i.e. do not understand basic financial concepts or financial management); etc.  But the number 1 reason for our spending problem, in my opinion, is that we simply will not exercise any form of self-discipline or self-restraint.

We are really good at “spending money” we haven’t yet earned. The reason I put quotes there is because most are not actually spending cash but rather using some form of plastic and hoping or assuming that some how the money will be there. The reality for many is that the money runs out before the month does.  And guess what, it doesn’t seem to matter how much money you make – I see the same scenarios with people who make $50,000 a year as I do with people who make $150,000 a year.  That fact alone tells me it is a spending problem and not a money problem.

Now it probably doesn’t help that most lenders will give you just enough to hang yourself.  After all is it really any secret that banks are in the business of making profits and satisfying share holders. Therefore, the deeper they can put us in debt and the longer they can keep us there the happier they are.  They seem to know that we have an innate inability to say ‘No’. However, at the end of the day that is still no excuse – when will we stand up and take personal responsibility?

So if it really isn’t a money problem and we can’t blame anyone but ourselves, what are we to do? Start with educating yourself. Libraries and book stores are full of excellent resources on personal financial management and debt reduction strategies – by the way did you know that most millionaires are avid readers.

Track all of your spending for a full 30 days. Most people have no idea where the money went. “It just seemed to vanish” is an oft quoted phrase. If that seems like too tedious a task then carry on the way you are going. However, you can’t plug the leaks until you know where the holes are.  

Try going to a cash only budget. That alone will save you hundreds if not thousands of dollars. Why? Because it is a proven fact that you will spend less when using actual cash as opposed to credit or debit. In fact, recent university studies have shown that the pain centre in the brain is activated when you pay cash for things and NOT activated when you use plastic. Wow. Even our sub-conscious mind can help control spending.

Those are just a few suggestions. For those of you who are serious about getting a handle on your debt you may be interested in one of our seminars that we offer thru our business (see details below).  Among other things we demonstrate how you can become completely debt free including your mortgage in 10 years or less for most people. There’s the challenge – hope you pick it up.  Don’t forget…it’s really not a money problem.

Here at Neighbourhood not only do we provide Award Winning Service and the best selection of mortgage products in the country, but we also offer our Free Financial Fitness Seminars and have 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.

At Neighbourhood, & the home of the Brian Marling 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. Date of the next seminar is Wednesday January 12, 2011.