In my practice I’ve helped many people pay off all their debt.  With borrowed money being so cheap right now everyone seems to be borrowing more and more of it.  It is also the single reason for people to lose sleep at night.  When I’m doing book signings I get most of my questions around debt and how to get rid of it.

My blog this week is (what I tell everyone when they ask) what I talk about in my book.  Debt is that weight that keeps you from soaring with your money.  Once it is released you can truly take off.  So let this be the day you draw a line in the sand and free yourself from bad debt.  Here is my action plan:

1. SAVE before you pay back.  This sounds counter intuitive but it works.  Save up $1,500 or $1,000 in your chequing account as a buffer.  If you pay chequing account fees, save enough to get these waived.  I have $1,500 in my chequing account at all times and it saves me $8.50 x 12 = $102.  On $1,500 that is a 6.8% return on my money.  Better than the average savings account.  If you don’t pay a bank account fee keep it in a savings account.  It will act as a buffer so if you’re short of money due to emergencies, you won’t go further into debt.  Keep it there no matter what.

2. ISOLATE your debt.  Try to get all of your debt on a low interest credit card or even better a personal loan.  Get the rate as low as possible and fix the payments.  If you owe $20,000 commit to paying $600 a month or whatever you can afford and wipe it out in three years.

3. PAY off something pronto.  Get the lowest balance card and pay it off right away – even if it’s $50.  Then celebrate the victory!  That was you first move towards being debt free and you want to associate it with something positive.  Just don’t celebrate on your credit!

4. MARK the day you’ll be debt free.  Write it on every calendar in the house, at work, and on your SmartPhone.  Once the debt is gone take the next payment that would have gone towards the debt and reward yourself with it.  Maybe a nice dinner, savings towards a trip, a nice new debt free pair of shoes.  Know that when you have hit your debt free day there will be a cash reward for you.

5. LOSE the guilt.  I see so many people feel bad about their debt and it doesn’t serve them well.  Use cash for spending, set up a budget, only use cards for fixed monthly expenses and have it automatically pay off each month.  Set a plan and then know what you’re a new money maverick/maven and don’t let old habits hinder your new positive ones.

Blow out your debt and start sleeping again,

Dave

The birds are chirping and the bees are busy visiting all of the fresh flowers. The sun is staying up longer and the big sweaters and coats are about to be packed away for another season.  Time to clean out some clutter and enjoy spring with a fresh clean start.  Why not start with your wallet??!

It’s amazing what people keep in their wallets–old receipts, business cards, point cards, pictures, mints, and sometimes even locks of hair!  Cleaning out our wallets will serve the same purpose as cleaning our homes.  Let’s start fresh this spring with a new, slim, sexy, organized, and efficient wallet.

Having a wallet that you enjoy dealing with will change your mood towards the money that is held in it.  If your wallet is a cavern of slips, cards, and ATM receipts, looking into it each time you need to get your money could be a nightmare. If searching for your credit card makes you curse, it will effect your relationship with money.

So let’s spring clean your wallet and start the season in style.  Here is what you’ve got to do.

Get an awesome wallet:

First, go grab a new ah-mazing wallet.  I got a camouflaged Prada one (on sale of course).  It’s sleek and stylish and I love grabbing it off my desk in the morning and pulling it out to pay for something.  It makes me happy to deal with and it’s kinda awesome.  Buy one that reflects your personality and that makes you smile when you use it.

Organize non-wallet items:

Take everything out of your old wallet  and lay it on a table.  If there are business cards that you need to follow up on, put them in a pile and mark a date in your calendar to fire off an email for each one.  If  you have receipts, put them in your filing system.  Pictures can be stored on your phone or Blackberry.

Ditch Your Point Cards:

If you read my blogs or saw me in the Toronto Star last Monday, you’ll know that I don’t think point cards are worth it.  My wallet has my license, debit card, one credit card, my own business cards, and cash.  That’s it!  It’s lean and mean and all I need. Point programs always advertise you on a beach enjoying freedom from the work grind.  Well I enjoy freedom from point cards every single day by getting rid of them all!

Organize your wallet:

Once purged of all the extra cards, receipts, pics, etc., put one week’s cash allowance in your sleek, sexy wallet.  Put your business cards in one slot to keep them crisp and clean.  They reflect you and your trade.  Organize your bank cards so they are easy to whip out.  I have my debit, credit and license layers in order of use at my fingertips.  Quick draw!

Write three things you want:

With my cards I have written down the three things that I really really want this year.  They are on the back of one of my business cards and every time I pick a card or cash I can see them.  It re-enforces three important things to work towards that will make me happy.  I’ve been doing this for years now.  Try it.  It really works!

Your new and improved wallet will now reflect the way you see money.  Keep only what you need and organize them for easy use.  Your wallet should be enjoyable, efficient, and energetic.  Just like you!

Have an awesome week,

Dave

– SPEND on your perfect items. You’ll wear them way more and won’t buy as much saving money in the long run. If applied to spending on clothes, the perfect cocktail dress or suit that makes you feel like a million bucks when you wear it is worth spending on.  If you wear it all the time because you feel good in it and get compliments then it will pay for itself by the good things that happen to you when you put it on.  Feeling good in meetings is a huge advantage and will pay you back with greater results at work.  Plus, if you cut out on spending on the things that will just sit at the back of your closet that you never use, you’ll actually save money in the long run.  Only buy your perfect items and then love them!

- USE credit cards to get cash back and build your credit.  Charge all of your fixed costs onto a no fee BMO MasterCard CashBack credit card, like gas, insurance, cell phone, gym, utilities, cable, and internet.  You will get cash back on the things you need to use your card on and collect cash back dollars month by month.  Also, use your card for trips, furniture, and other big one-time purchases, it all adds up at the end of the year.  David received $271.02 back on these things this year!  That means free utilities for a month or a nice dinner with a good friend.

- BUY luxury cars – Never lease a car always buy it. You will pay interest on the entire product and you don’t even own it if you lease. Buy it used to save on the initial cost, loan interest and insurance. Buy a luxury car, it’ll depreciate more slowly, have more options, be safer, and easier to sell if you need to.

Being a miser will only keep a negative attitude towards money.  Spend smarter and enjoy your life!

Have an awesome week,

Dave

Not only have they made the physical appearance of the card look like a shiny new car, they get us drunk on points or trips, or free things to entice us to use the card for every single purchase.  New tricks like having money-tracking reports in our statements are there so we know exactly what category we spent too much money on to feed our egos.

Now I have fallen for this trick when I was just out of university.  I had the shiniest, goldest, sleekest card they had.  It would have been worshiped as an Inca goddess if it had existed in ancient Inca society!

I swiped it on everything from bars to trips to gas and groceries – all in the name of those most precious points.  I would throw it down whenever I was at a dinner and then I would grab everyone’s cash to get the points.  Then I would spend that money I had collected and still would have t0 pay back the cost of the dinner.  In the long run, you spend more with the Ferrari of cards than you ever would save on trips or gain in prestige for having a sexy card.

That was a long time ago and I paid interest on my gold card at 18.9% interest only ONCE.  I quickly dumped every pay cheque I had on the card until the debt was gone and I have never paid credit card interest again.  I also ditched the gold card for something that would actually benefit me.

My new credit card was the crappiest look wise I could find.  It’s a no fee card that gives me an “ok” cash back on fuel and my fixed expenses like gym, cell, insurance and anything I HAVE to charge like flights or parking meters.  I went from a gold card with a spiffy design, to rocks on the face of the card.  No more blinglicious card that encourages me to spend way more than I need to.

There are better cash back cards out there but I don’t want them. Anything that encourages me to spend more than I would with cash doesn’t make “cents” to me.  I’ll save way more not using it than I would get back from using it on things that I don’t need or even want.

Ditch your  fancy platinum, gold and fierce black cards and get one with a hampster, waterfall or rocks on it.  It’ll give you what we all TRULY want,  financial savvy.

Have an awesome week,

Dave

I’m back in Toronto and I’ll be doing a book signing at the following Indigo Chapters stores in the GTA.  Come meet me and let’s talk about our mutual love of money.  More stores will follow in May!

April 2nd – 1-5pm

Chapters – Woodbridge
East Woodbridge Centre, 3900 Hwy 7 West, Unit 1
Woodbridge, Ontario
L4L 1A6
Canada
(905)264-6401

April 9th 1-5 pm

Indigo – Yorkdale Shopping Centre

3401 Dufferin Street Unit #29
Toronto, Ontario
M6A 2T9
Canada
(416)781-6660

April 30th 1-5pm

Indigo – Yonge & Eglinton
2300 Yonge Street
Toronto, Ontario
M4P 1E4
Canada
(416)544-0049

Love your money by following my blog, following my twitter, getting a book signed and ”friending” my facebook page!

Dave

I love doing value exercises with my clients because we see why they tick.  What truly motivates them based on their values and what life will truly make them happy.  The material items are bought only to reward yourself when and only when you achieve the actual value in a cash flow neutral way.

Do you notice that when we buy expensive clothes – we really are trying to get a sense of  leadership or respect or achievement.  Think of what you’ll really have when you have those fierce prada’s.  Is it a sense of leadership for being a trendy momma?  Respect from your peers? The perception of achievement from make the kind of living that would allow such booties?

And paying for expensive trips abroad?  We are really looking for freedom or fun aren’t we?  Think of what value of yours gets satisfied when you go to Bora Bora and do shooters and make out with the locals.

We spend lots of money on expensive holidays because we love our families or friends.  Because we get joy from spoiling and being a great mom or family member.  That can be had for free, right?

The key here is that we can satisfy these values in a different way in a free way. For a value of leadership instead of spending on expensive clothes or cars we can become active in local politics or be part of a community board of directors.  For a value of freedom we can have stay-cations where we don’t set schedules and just enjoy the time off.  For Family or Fun we can have BBQs or movie nights with friends.  We can satisfy the same values without over spending and satisfying the route of the financial discretion.

When you understand your values you’ll understand a) why you spend and b) how to satisfy that value in a more positive and cash flow neutral way!

Have a great week,

Dave

Make a list of everything that you’re spending and then ask yourself the following:

- Did this expense contribute to my overall happiness?

- Did this expense make me a bigger person?

- Was this expense a “Want” vs a “Need”?

- Would I have felt more satisfied if I allocated this money somewhere else?

Write down what really makes you happy.  What would your day-to- day events be?  What would you want to do more- travel, spend time with family, more sports events or continue your education?

Make a week of your ULTIMATE life and then compare it to what you’re spending now.  See if you’re trying to get a quick fix on things that don’t contribute to your best life vs. spending or saving towards things that you really want.

It is amazing how we live these lives and many times don’t do everything that we truly want to do.  We’re here just once so living our ultimate life is what we need to do.  Now that you know what you really want, support it with your spending- be it writing a book, learning to sail, opening your own business, having a TV show or getting a new career that supports your values.

Here is what you need to ask yourself….

–How do I achieve this? What is my first step?

–If I had no chance of failing, what would my next step be?

–What would make me feel most comfortable with this decision?

–If I did know the solution right now, what would it be?

See where your money is going and if it isn’t supporting your best life – change it!

Love your  money and it’ll love you back with your best life,

Dave

Ladies Who Launch Event

Guests will learn:

• How to achieve your ultimate business goals. Visualize it!  Understand where you want to go and when.
• Values assessment to see what motivates you.
• Staying motivated using your values.
• Owning your finances and taking full responsibility for the success of business.
• Matching spending to revenue to keep you growing.
• Budgeting for success/Smart spending practices.

Have a great day,

Dave

Ladies Who Launch Event

I sometimes catch myself and laugh about all the eccentric things I do to save money.  Here is a list that shows that I’m crazy for my money.

2. Any parking tickets that I get I always fight.  I’ll do everything I can to get out of paying parking tickets.  I even have a meter broken sign in my car for those lucky days when I find one.  By putting it in my window I avoid tickets and save on parking!  Win win.

3. I watch my clock like a hawk when I know I have two hours free somewhere.  Last week I lost my ticket when I pulled out my cell phone and instead of just paying the full charge, because I didn’t have a ticket, I walked back the entire route and found my ticket!  It would have been $8 without my ticket.  That’s a movie ticket on cheap night.

5. To save on ATM fees I will walk a mile.  I would leave friends in line at a bar and run two or three blocks to hit up my bank to save the fees.  At $3 a pop that is totally worth it.  I’ll also use Liquor Stores or Grocery Stores that give cash back to get my cash fee free.  There is a grocery store around the corner from me that has a Starbucks and gives cash back.  I get my money for the week with my morning coffee and save a trip.  What is better than that?

Charge All Your FIXED Costs And Big Purchases

I charge all of my fixed costs onto my no fee BMO MasterCard CashBack card, like gas, insurance, cell phone, gym, utilities, cable, and internet.  This way I get cash back on the things I need to use my card on and collect cash back dollars month by month.  I also use my card for trips, furniture, and other big one-time purchases, and it all adds up at the end of the year.  I got $83.65 back on these things this year.  That means free utilities for a month or a nice dinner with a good friend.

Gas is another fixed cost that I use my card on.  I get an extra 1.5% back when I go to any Shell station in Canada and over a year this really adds up.  When I book a trip or make a big purchase like electronics or furniture the card gives me extended warranty and purchase protection plus discounts up to 25% at National Car Rental and Alamo all for FREE.

Because I spend a lot of time on business in New York and Los Angeles, I also have a US$ BMO MasterCard CashBack card.  I have US$ fixed charges for my business come out on this card that added up to $103.72 – $25 fee this year.  If a trip is cheaper in US$ I will use this card, and anytime I make business trips I use this card.  It pays me with cash back plus I save the 2-3% foreign service fee my Canadian $ card would charge me each time I used it in the US.