I Heart Money » Financial Coaching

Money is Power

Dave Lester — Thu, 12 Aug 2010 16:43:01 +0000

I like to think of money as a powerful tool that can help me do and buy all the things that I want. To provide for me freedom to travel, achievement when I get better as a rider, fun when I have amazing dinners wtih great friends and family. All the things that make me truly happy. It can also give you personal power.

The most sensitive subject that my clients are hesitant to talk about is credit card debt. It is amazing to see how far people will go to not have to talk about it. If you do have credit card debt and it is that thing that you cringe about when you think of the 18% interest accruing each month – imagine all of the relief and even power you would gain back when the cards were paid off. Think what effect the cards have over you right now and how it would all come flowing back when the debt was gone. What a release that would be!

Power also comes from having a whack of cash in your account. Knowing that you could use the money to travel or support your self if you lost your job. The money could really help someone out if they needed the money or get you our of a bad relationship if you were in one. Build up a large amount of cash and see how you start to feel. Knowing how all of the cash gives you options. And those options are a source of power.

Harness the power of the almighty buck and live your best life!

Dave

I (Heart) Money Book Tour!

Dave Lester — Thu, 05 Aug 2010 22:52:33 +0000

I’m on a book tour and I’d love for you to come out to one of my event dates to meet me and talk money. I’ll be signing my new book I (Heart) Money at the following Chapter and Indigo locations. Hope to see you out and keep loving your money!

August 7th – 1pm -5pm

Chapters Bayview Village

2901 Bayview Ave Unit 132

North York, Ontario

M2K 1E6

August 21st 1pm-5pm

Chapters Woodbridge

East Woodbridge Centre, 3900 Hwy 7 West, Unit 1

Woodbridge, Ontario

L4L 1A6

(905)264-6401

August 28th 1pm – 5pm

Indigo Richmond Hill

8705 Yonge Street

Richmond Hill, Ontario

L4C 6Z1

(905)731-8771

September 25th 1pm-5pm

Chapters Woodbridge

East Woodbridge Centre, 3900 Hwy 7 West, Unit 1

Woodbridge, Ontario

L4L 1A6

(905)264-6401

Indigo Yonge and Eglinton – Coming Soon!

Chapters Square One – Coming Soon!

My Chosen Credit Card

Dave Lester — Tue, 27 Jul 2010 18:29:05 +0000

If you’ve been following my blogs you’ll know that I prefer to use cash when I can. I love hard currency for a number of reasons. For instance I find that you spend less, you have a natural spending ceiling (it’s gone when it’s gone), you get better prices for big purchases, and it is harder to part with than just swiping away.

I do however use credit cards when there is a financial benefit to me. I calculate all of my monthly expenses that can be charged to my card and have them come off automatically each month. This saves me time and service fees – I’ve made sure that I can never miss a payment now. All my gas is charged to the card and I also charge large payments like computers, hotels or airline flights to extend their warranties and add travel protection. My choice of credit card reward program is an annual fee free card that gives me some sort of points. If I charge $590 a month I used to get .5% cash back on everything and 1.5% back on my gas purchases, which would give me $59.40 back a year for free just from my monthly resources not including my big purchases like trips, furniture and electronics. Remember that I didn’t pay a yearly fee so that money is all gravy for me! I have found a new card that saves me even more which I have outlined after my expenses.

Monthly Charges:

Mobile Phone $60

Television/Internet $80

Electricity $40

Gym $50

Gas $200

Car Insurance $145

Home Insurance $15

Just recently I have found a no charge cash back card. It’s called the MBNA Smart Cash MasterCard and it is no annual fee card that gives 3% on gas, 3% on groceries and pharmacies, and 1% on everything else. Based on my spending it dramatically increases my cash back at the end of the year! They even have a promotion right now where you can get 5% back on all purchases for 6 months. On the same purchases from above I’d get $118.80 a year before my large purchases. That equals some cool shoes that I can enjoy for free based on my financial prowess and saves me a ton of time not paying all of those bills independently. Time that I can be kickin’ back with my new free kicks.

Have an awesome Tuesday,

Dave

How Do You Treat Your Money?

Dave Lester — Wed, 16 Jun 2010 17:46:26 +0000

I find the psychology around money fascinating! The way that you treat your money reflects your underlying positive or negative feeling towards it. Naturally people who invest time and effort into their relationship will benefit just like if you invest time and love into a human relationship it will flourish. Treat your money like any other relationship you have in your life.

Here is a list of ways that you can enhance your money relationship. Ask your self how you can treat your money better to enhance your commitment to it?

1. Do you always get the highest level of interest from idle money? Making sure that your money is always getting the highest return is a way to treat it properly. If you have money sitting in an account and not making a good interest return search for the best premium rate savings account and transfer that money!

2. Are you being charged for having too many bank accounts? Do you go down a block to save other ATM fees? Do you pay a monthly fee when there is a way to keep a minimum deposit to save that amount? If you’re charged 8.95 a month in your bank account and it takes a minimum monthly balance of $1,500 a month to wave that fee – that is a $107.40 savigngs a year equivalent to a 7% return on $1,500.

3. Do you always scan your statements to make sure that you aren’t “dinged” any extra charges? I’ve saved hundreds of dollars by doing just this to every bill that comes through my door. It shows that you love your money if you’re always watching out for it.

4. Do you know what your net worth is right now? If you don’t add up all of your assets and minus your liabilities. Knowing how much you are worth will help you make big picture purchases and investments. It’ll help you keep moving towards your net worth goal!

5. How much interest are you paying on all of your debts? Can you lower your interest rates right now and save loads of money? Put in the time and call your credit card company, bank or loan company. See how much you can save by lowering your interest rates, increasing your payment amount or payment frequency. On mortgages these changes add up to a ton of cash. Treat your money like any other relationship and benefit!

Have a great week,

Dave

Financial Health Checkup

Dave Lester — Wed, 26 May 2010 02:37:57 +0000

Financial health stems from the relationship you have with your money. Do you get warm shivers when you think of the great things money can get you or stabs of pain when you think of your debt? Do you avoid talking about money at all costs or welcome the conversation? How you answered those two questions can tell me how money healthy you are! See which of the below areas you need to “checkup” on?

1. Respect Your Money: This is the single most important lesson to be a savvy money manager. The ability to know exactly how much you have and how much you owe is crucial. The personal power that you gain by knowing where every dollar is going, how much you are paying in interest and how much you are making in any given investment is the first step. Understanding how money can be saved and made gives confidence. Confidence for you to go forth and make more money!

2. Know What Financial Success Looks Like: If you don’t know exactly where you want to end up you’ll always be lost. Figure out exactly what success looks like for you in detail. $1 Million in investable assets or more? Debt free? The freedom to travel at a whim? We all have a desired financial future and knowing what that is in detail is halfway to getting there. Dream it, then make it happen!

3. Invest Like You’re Already Wealthy: The best way to be rich is to emulate the rich. How do they invest? How do they save? How do they think about money? How do they live? Once you re-code your brain to ponder, play, and plan like they do you’ll get closer to your goal. Money is what money does.

4. Chuck Your Limiting Beliefs: What is keeping your from being wealthy right now? Do you you have negative associations towards wealth? Have you taken old beliefs from parents or social groups that aren’t true to your core beliefs? Once you know what they are and know that they no longer serve you, you can leave them behind and wade in the warm warm waters of wealth.

5. Determine What Money will REALLY Give Me: Money just for the sake of having money won’t make you happy. Fulfilling your life long dream to dive off the great barrier reef, spoil grand kids, take the entire family on trips, or have the freedom to live around the world really will. Money is just a means to something more. Decide up front what you will really have if you have this money – respect, freedom, creativity, achievement maybe? Remembering what value the money will bring you will motivate you to be the best investor you can at the same time it will encourage you to keep plugging when markets are lousy.

A healthy association with your money can bring so much to life. Hope you all have an awesome week,

Dave

Getting Into Your “Investor” Zone

Dave Lester — Wed, 05 May 2010 16:21:12 +0000

If you’re an active investor like I am, days like yesterday can be a scary thing. The DOW was down 222 points the highest one day drop since Feb. It is easy to get swooped up with today’s news…debt problems in Spain, Greece and Portugal, a weakening Euro and China pulling back the strings on its economy to try and keep it from boiling over. What is an investor to do to stay on top? Here are some “zone” tips to keep you investing at your prime and profiting from it.

1. Keep Calm, and Carry On. The worst thing to do in markets like yesterday is to give into your fear. Keep rational. CBNC and BNN are all about the story and fear sells advertising and markets. Keep your head in a good place. Tomorrow is another day. Take advantage of opportunities instead of running from them.

2. Zen Zone. Before every trading day I think about those days when I was quit witted, making good decisions, and profiting. I remember what I was thinking that day, what my motivations were and how if felt at the end of the day when I had made all of the right decisions. Starting that day in the “zone” is crucial to keep you on the ball.

3. Keep Your Eye on the Ball. Remember what your ultimate objective is and write it on a piece of paper and keep in in view. If it is capital preservation, short term gain, or yield for the long haul, or other write it down. When you process information when the market is crappy you’ll keep your eye on the ball and take actions to support what you want to achieve.

4. Why do you want it? Why do you really want the money that you’re making? Is it family? freedom? security? achievement? or fun? Anchor yourself to your desired future enjoying the money and re-enforce why you are going to make it or make more of it. What that money will actually do for you and what happiness it will bring you.

5. Celebrate! When you’re a star in the market. Make sure you recognize it and reward yourself for being such a champ. Re-enforce your positive actions while investing and you’ll repeat them in the future to make even more money. And you know how I love making more money.

Have an amazing week,

Dave

Best Shopping Practices

Dave Lester — Sat, 24 Apr 2010 04:28:42 +0000

I’m very serious when I shop. I don’t just buy things willy nilly or on a whim. I shop to win. Nothing drives me crazier than to buy something and then see that I didn’t get the best deal. I’ve listed my shopping strategies below for everyone to use for their ultimate items and save money to re-invest in more amazing treasures. Remember, shopping is like war. To the victor goes the spoils (shoes).

1. Scouting Parties: Shopping for the best deal is a war of attrition. You need to scout out what you LOVE, and then keep checking back for it to go on sale. I have a routine where I keep checking my favourite stores to see when my prize sweater or amazing shoes go on sale. I keep my visits frequent until I don’t think my target item will go any cheaper or I risk the chance of losing my size–and then I pull the trigger. Buy it with cash and celebrate your victory. If it doesn’t go on sale or I lose my size–I didn’t really want it that badly.

2. Love it or Leave it: Make sure that when you buy, you buy something that makes your heart go “thump”. Buying because you’re bored, your friend bought something and you feel you need to also, or because you just got dumped is no way to shop. Make sure that when you try on that sweater or swirl in that dress it gives you butterflies. You’ll wear it a hundred more times than something that you kinda like. Plus, think of all those extra sweaters that you half-like sitting in your closet. If you hadn’t bought them you could have allocated their costs toward your ULTIMATE something, something.

3. Buy Classics: Make sure that when you buy, you buy good quality, classic products that you won’t have to pitch next season. We are all about the average cost per wear over here. A classic piece is timeless and contributes to your clothing basics. Keep in mind what classics you still need to buy, and when shopping hit them up first.

4. Befriend the Sales People: If you’re charming and lovely with the sales people they’ll tell you when things are going on sale, hold things for you, and invite you to the friends and family nights. Allies are crucial in retail reconnaissance.

5. Save the Money First: Make sure you have the money saved before you buy anything. This allows for you to truly enjoy the product without any money malice. Open a savings account and deposit your budgeted allowance for shopping into it. Make a list of everything that you want to buy in priority. If you see a fierce fleecy thing – add it to the list. When you have enough cash to buy the number one shopping priority on your list, and it’s the right price, strike!

These strategies will help you to get things for the best price and guilt free. It makes shopping more enjoyable and gets you more bang for your buck. You are now master of your mall jungle!

Love your money and there will be way more to love,

Dave

I Heart Money – The Money Book for Today!

Dave Lester — Tue, 06 Apr 2010 17:10:53 +0000

My book is here! Anyone who loves my blogs can now purchase a money manual with all of my strategies and philosophies on investing, borrowing, saving and life. Purchase it right here from my blog and you’ll receive free shipping and handling! I know you love saving money too.

I love money. I’ve always loved money. Loving money has allowed me to start my own ideal coaching business, buy my dream car for FREE, horseback ride every Thursday, travel more, and spend time with the people in my life I truly love. You should live your ideal life too. This book will teach you how to dream your ultimate life then realize it by allocating the financial resources. Learn to optimize everything financial in the following book chapters:

1. Love Your Money – Simplify Your Financial Life
2. Live Like You’re Already Rich – How to become wealth like rich people do
3. Setting Goals For Your Ultimate Life – Dream your ultimate life than live it
4. Budgeting For Your Goals – How to track and save to pump back into your happiness
5. How to Use Money and Credit – How to win by using cash and cards
6. Investment Portfolios – How to build a zero dollar portfolio
7. Wealth Equals Income Steams – True wealth is built on multiple streams of income and how you can do it!
8. Mortgages and Loans – How to borrow to benefit you and save tens of thousands on your current mortgage
9. Insurance – How to only buy what you need!
10. Shopping – How to shop like a pro and save
11. Money and Relationships – How to pick the perfect money match
12. Financial Checkups – How will you know when you’re wealth?

Love your money and it’ll love you back with an Ah-mazing life!

Dave

La Petite Mortgage!

Dave Lester — Thu, 01 Apr 2010 04:03:56 +0000

It scares me that the word “mort,” which means “death” in French, is in the word “mortgage.” Here are a few ways to take the Grim Reaper out of your payment plans.

We are at the bottom of mortgage interest rates and it is time to consider fixing your rate to save money and time off of your amortization. The Bank of Canada promised that we would have these low levels until June and June is only a few months away. We don’t know how fast interest rates will rise but we do know they will start to rise from here. The economy has shown signs that it is improving, and the major banks started raising fixed rates. It just might be time to fix.

If you do choose to lock in, be sure to shop around and get the best rate. If you choose to use a mortgage broker you will be locking in for 5 years as low as 3.49% as of today. Even BMO has advertised a rate of 3.75% and it gets cheaper if you have other products with the bank.

If you decide to lock at these super low rates make two extra steps to get the most bang for your buck and literally save thousands of dollars over the amortization period of your loan.

1. Set your payments from monthly to bi-weekly–or even better weekly. Bi-weekly payment means you make one extra payment per year compared to monthly. Over the amortization time of your mortgage these extra payments will save you thousands.
2. Round up your payments. If your bi-weekly payments are $829.68, for example, round them up to $900. The extra $70.32 bi-weekly will save you even more over the amortization of your mortgage.

It is so hard to step away from your prime minus variable rates when they are so low. I had a rate of prime -.85 before I sold my place. If you do decide to stick to your variable rate and hope that interest rates climb slowly over the next few years, increase your payments so that you are making the payments that you would be in a five year fixed. There are two advantages to this:

1. You will be paying down your principal very quickly, which will equal less principal to pay back when rates go back up. It will save you bundles in the long run.
2. You’ll also be used to the payments at a higher interest rate. When you need to renew or decide to go with a fixed rate, you’ll have a few years of already making payments at that higher rate.

Try out some of the mortgage calculators online like the one below to see how much interest you save with the different options, along with how many years you’ll “bump off” your amortization, instead of it bumping you off. And mortgage free years are years that you can spend that mortgage money on your extra special life!

www.canadamortgage.com/calculators/amortization.cgi
Have a great week,
Dave

Go From Idealist to Absolute Realist Now!

Dave Lester — Thu, 25 Mar 2010 02:39:56 +0000

What is that one thing that you always dream about when sitting in the car waiting for a light or having your morning coffee?  That one thing that you fantasize about? The one thing that gets you excited about doing?  That gives you those butterflies when you spend time thinking about how great it would be? It could be a boat, running for public office, writing a book, or taking a year off to travel the world. Well, you’re going to do it. That’s right. Whatever that one thing is that you have always wanted to do, but didn’t have the money, or didn’t have the time, or didn’t have the support–you are going to do it!

First, imagine that your “thing” is done. Let’s use my example of writing a book. I’ve always dreamt of writing a book, going on tour, helping tons of people save money to live their ultimate lives, capturing my tricks of the trade, and my life philosophy to show people how to live their best lives.  I love being able to change people’s perceptions and beliefs about money so that they can improve their and their family’s well being. It makes me feel like a million dollars. My book is coming out in a week, and all of these dreams and ideals are coming true for me. They can come true for you too.

Right now, write down on a piece of paper how awesome it would be to complete your number one dream. Think about the future when you have that boat, you’ve run for public office, or you’re on the trip around the world. Feel the freedom, the creativity, or that sense of accomplishment that you experience by stroking off your number one goal.

Now let’s get it for you. On a piece of paper write the very first thing that you need to do to accomplish your goal.  Let’s use the boat as an example. 1. Find my perfect boat.  Awesome! This is the fun part. Scour the internet, magazines, boat shows and dealerships for your perfect boat. Decide on the colour, size, and even the Captain’s hat you’ll get for the boat.  Taking action towards getting your boat is admiral. (Get it?)

What is the next step I need to take to get that boat? I need to find a place to keep it. So figure that out. Find a garage, rent a place, a friends cottage, etc. Your brain will come up with a million suggestions and you just have to pick the next one.

Commit yourself to that boat or dream! Call a rental place and see what the costs would be. Figure our the best and cheapest place to keep it.

You’re on your way! What is your next step? Money. Now ask yourself, how can I possibly get this boat? How much do you have saved? How much will it cost? How many months of saving will it take to buy the boat? Is there something that I don’t want that I could sell to contribute to the boat, like a smaller boat or old tires in the garage? Keep asking how, how, how can I get that boat in a practical and responsible manner? What resources can support me to get this boat?

Once you have a financial plan (see my blog on how to get a free car; it works for boats too), have the savings come out automatically from your pay. You’ll know every month that when a deduction towards your ULTIMATE dream comes off your pay, you’re getting closer to your dream. Be sure to get the best interest possible for your dream too. Shop around for the best interest rate to contribute to your goal. You’ll find yourself putting away your birthday money, working extra shifts, or cutting back on dinners out to get to your ideal future faster.
Whatever you dream of when you’re alone, this is the day to make your very first step towards it. How do you eat an elephant? One bite at a time.

Dream it and then live it,
Dave