I’m sad to say this will be my last contribution to Unlimited. I’ve thoroughly enjoyed my time writing and podcasting, but, the time has come for me to go back to school and pursue my Masters in Business. Though there’s the short-term pain of cramming for exams and pulling all-nighters – I know it will prove to be a valuable investment.

I’ve chosen to pursue more education for a few reason; jobs of the future will require more education and technical savvy than ever before. According to a survey conducted by the US Department of Labour in 2004, more than 75% of future jobs will require some form of post-secondary education. They also discovered that jobs requiring a bachelor’s degree would grow twice as fast as the national average for other occupations.

To remain competitive in the job market, you’re got to prepare yourself and be flexible. First, invest in your education. Second, sharpen up your technical skills. Third, grow your personal and professional network because research confirms that getting ahead truly is about who you know. Fourth, explore new and budding industries like clean energy, robotics, computer engineering or environmentally friendly vehicles. Alternatively, maximize opportunities within industries which are expected to grow like health care, data management and communications.

Investing in your education is totally worth it although the price tag is steep for tuition and books. According to the National Graduate’s Survey (Stats Canada), when you invest in any type of post-secondary, your long term income-earning ability is a few hundred thousand dollars to over a million dollars greater than a high school graduate’s¹. Research has shown that educated people not only earn more money, but also enjoy a higher quality of life because they have more choices in terms of their career opportunities and lifestyle.

To sharpen your technical skills, you’ll need to get a job where you can learn the technical ropes or take on the task yourself by enrolling in a course or getting cozy with your laptop in the evenings. Get ahead of the curve by embracing technology and using it to improve your work and life. If your company will allow it, introduce a new technical idea like cloud computing or cloud storage. Lead the project, implementation and adoption.

Growing your personal and professional networks is critical to remaining competitive. Social capital refers to all the resources available to us through the people we know – information, finances, ideas, business and job opportunities, trust, partnerships, etc. The workplace is no longer based on individualization. Collaborative competence and relationships are vital to completing projects and tasks.

Social capital has been written about extensively over the past few years and it turns out there is a legitimate business case for investing in your networks. Social capital enhances a person’s performance which in turn leads to better jobs, more pay, influence, learning, word-of-mouth marketing, personal branding and much more. Be strategic about who you surround yourself with. If you hang out with successful people in your company, you’ll probably pick up some helpful habits. But, if you’re kicking back with the folks that cut corners on projects or have negative attitudes, you’re likely to adopt bad habits. Harness the power of your networks. A great book on this subject is Achieving Success Through Social Capital.

Exploring new industries will also prove valuable. The workforce demographics are shifting and so too are the world’s demands. Technology continues to advance faster than ever before and this is changing the way we work, how we analyze situations, how we interact with people and how we plan our personal lives. Experts predict the demand for data management and communications will grow significantly. Demands for health care professionals are also increasing as North America’s population ages.

New industries like clean energy or, renewables, have captured a great deal of attention in recent years. Financial planning and wealth management services are also rapidly expanding industries because there’s increased interest in financial security and retirement planning – that stems for the fact the people will live longer. Financial planning experts say the 30-something crowd, which is anticipated to live to an average age of 100 and will need at least $2 million to retire and support an average Canadian lifestyle.

What will prove most valuable and financially lucrative to younger generations looking to the future is open-mindedness. Try to work at what you love and are passionate about. Be okay with learning new things and shifting your skill sets. And, as always, preparation is key; keep focused on your financial goals because you’ll want your finances to help support your dreams and passions.

1 http://www.millenniumscholarships.ca/images/Publications/090623_POK1_backgrounder_EN.pdf

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Besides infidelity, the fastest way to end a relationship is to avoid communicating about money. Monetary choices reflect a person’s values, like trust or greed, and relationships can only survive if values are aligned. According to Capital One Canada and Credit Canada, eight in 10 couples fight about money and 48 per cent feel their partner’s attitude towards money is different from their own. Financial incompatibility breaks up the majority of Canadian marriages. But, sadly, couples downgrade the importance of ‘money matters’ below wedding planning, changing diapers, and building a happy future.

Stop your relationship from hitting the rocks and start talking about money. Learn about your partner’s financial philosophy and work to align goals. Grab a coffee, get comfy and turn off your phone. Avoid finger pointing, stick to the facts and focus on solutions. If you press each other’s buttons, back off, cool down, find out why and keep the conversation respectful.

Gain an understanding of the origin of your partner’s financial views. Most 20 to 30-somethings have received little professional advice, limited financial education, and their parents have had the greatest monetary influence followed by friends. Chat about what was learned at home or school and what influence it’s had.

Next, sharpen your money savvy together by reading and discussing financial books like Smart Couple’s Finish Rich, Rich by 40, Millionaire Next Door, and Wealthy Barber. Then, cozy up to your laptop, and visit personal finance sites like www.moneyville.ca and www.finance.yahoo.com.

Foundation

Marriage counselors agree; teamwork and financial boundaries are critical when planning your future with someone. Though you may not like to deal with financial matters, it’s irresponsible to ignore them. You don’t want to find yourself in a bad financial position you weren’t aware you were creating. Swap financial chores or take on new ones each week like paying the bills online, negotiating interest rates, monitoring the budget or collecting receipts to track your spending.

Budget

Overspending causes severe arguments and stems from unclear financial boundaries. The saver, for example, may feel their financial security is being jeopardized by their partner’s shoe fetish. Tell your partner how debt impacts you emotionally and financially. If you’re angry about how you got into debt, air your grievances. Agree on what’s worth going into debt for in the future and how you plan to reduce it now. And, don’t hide debt from your partner.

Sticking to an agreed-upon budget allows you to spend less time worrying about money, and more time on your relationship. It’s a tool to track income and expenses, set boundaries, and support your financial goals. And, rather than being restrictive, incorporate affordable fun.

Avoid finger pointing and stick to tried-and-true budget principles – spend less than you make and before you pay bills, save at least 10% for yourself.

Develop a Plan

A written financial plan keeps couples accountable for their actions and focused on achieving dreams. It details goals and strategies for saving, spending, income and asset growth, debt reduction, insurance, estate planning and taxes. Start talking about your dreams for children, homes, retirement, etc; then break your dreams into realistic steps. Start taking action.

Follow these five planning principles:

1. Grow net worth through debt reduction and asset growth
2. Set specific, measurable, realistic and timely goals
3. Protect what you’re building (a will and insurance)
4. Implement your strategy
5. Evaluate your progress.

Financial planning advice from a professional, like a Certified Financial Planner (CFP), helps couples avoid arguments and form a holistic plan.

Together, interview at least three reputable financial planners, get proposals, pick the one most aligned with your goals and start planning.

Respectful communication and team work keeps your relationship healthy and focused on achieve dreams. If you’re stuck in a rut, get help; see an advisor or couple’s counselor.

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Salary may not be the only thing you care about, but it’s a top priority in terms of your financial health. An extra $5,000 could mean more money for you so you can build your net worth….and have more financial flexibility in the long term.

Whether you’re thinking of changing employers or staying put, here are some tips to maximize your salary.

Tip 1: Stick to the facts
Avoid comparing your salary and benefits to family members or friends. If you’re not in the same industry, occupation or city, you’re comparing apples to oranges.

Research comparable salaries for comparable jobs where you live. Remember to evaluate the complete picture – salary is only one part of a total compensation package– there are other factors to consider such as benefits, stock options, retirement plans, etc. Start your research by checking out the current salary bands for various jobs levels at your current employer. Then move on to 3rd party sources like Monster.ca, Workopolis, or Payscale.com. If you belong to an association or alumni group, check whether they’ve got research on salaries and benefits you can review.

As you consider the salary you think you deserve, be realistic about how much relevant experience and education you have. Less experience typically translates into less salary, but perhaps more training and development opportunities

Research the demand for your skills. If you’ve got a skill that employers want, you’ll see job postings. On the flip side, if you see a posting for a job you want, study up on the skills that are required. You may need to invest in developing new skills.

It never hurts to get advice and facts from a recruiter that specializes in your line of work. They’ll discuss your resume, help you prep for interviews, give you current information on salaries and they’ll tell you straight up how marketable your skills are and whether they think your job and salary expectations are in line with reality.

Tip 2: Set Goals

Once you’ve got your facts straight, and you think you know what you’re worth, set a realistic goal before you go in for negotiations. Perhaps you want a raise of 3 to 5% of your salary. Or, you may wish to focus on an actually number like $5,000. If you’re going to be negotiating on a job offer, ensure your goal is a salary range. Every company’s policies are different.

Tip 3: Techniques to the Negotiation

Don’t get upset. Just getting up the courage to negotiate sets you apart from your peers. According to the Society for Human Resource Management, 33% of people say they’re freaked out about negotiations, so they don’t do it even though 80% of recruiters and managers are willing to negotiate .

It can be hard to find the right words when you’re asking for more money. Playing hardball in a negotiation rarely wins. So, stick to the facts and try to be collaborative. Don’t beg and don’t whine. Avoid making unquantifiable statements or comparison. Be professional.

Focus the conversation on how valuable your contributions are to the organization. Talk about the experiences you’ve had to date plus what you plan to do in the future. Hint; if you want more money, you’re probably going to have to take on more responsibility. It can be very helpful to present information on competitive salaries and positions, based on the research you’ve done before.

Timing is important. There are better times than others to discuss money. Don’t barge into your boss’s office right asking for a raise after they’ve had a hectic day. Wait until you’ve both got some time to sit down and talk. It’s also nice to give your boss a heads-up about the money topic so that they aren’t caught off guard. This gives both of you time to prepare. They may need to chat with their boss or an HR advisor as to salary and benefit policies. When was the last time you sat down with your boss for a performance review? That’s an optimal time to negotiate your salary.

If you’re interviewing, avoid talking about salary expectations in the first half of your interview. These discussions are usually held in the middle or near the end. Why? Because when you’re interviewing you need at least half if not more of that time to prove to your potential employer that you’re worth it.

Be flexible as you negotiate. If your employer or potential employer can’t pull through with exactly the salary you want try to negotiate for greater benefits, a bigger training and development budget or more time off. Suggest a pay for performance, bonus or commission structure. You can even negotiate to have your salary reviewed more often – 6 months vs. 12 months down the road.

If you feel it’s appropriate, get a few different offers. This gives you more bargaining power.

Raises and job opportunities can take some time to come to fruition. Be realistically patient and use the time to sharpen your skills. Going forward, do everything you can to enhance your person brand and contribution to the organization. That way you’re more marketable in good times and bad.

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Charitable giving has become an essential piece of a financial plan. In fact, studies have shown that philanthropy is one of the top three characteristics that wealthy people share – the other two characteristics are spending wisely and investing for the future. On average, self-made millionaires give approximately 10 per cent of their earnings to charities they feel strongly about. So, if you earned $50,000, 10 per cent equates to $5,000 in annual giving.

Some people feel that giving to charity will set them back financially. But research shows it actually has the opposite affect. There’s a return on investment (ROI) when you invest in your community. But, rather than getting a dollar return, which is typical of a financial investment, you benefit through expanded networks, increased sales, leadership opportunities, promotions, marketing opportunities, job offers, publicity and much more. Additionally, Revenue Canada thinks giving is a good idea and will provide you with an attractive tax credit.

People give for different reasons – perhaps they’ve been touched by a cause, or they want to enhance their personal brand, or they want to be recognized or maybe they’re being peer-pressured by friends or at work. But, whatever your motivation, when you give of your time, talent and money, it demonstrates leadership, and people, like your employer or customers, will pay attention to that.

I know it’s hard to find extra dollars to give. You’re probably working hard to save 10 per cent into your RRSP or paying off your debts. But, giving doesn’t just happen. You have to plan to make it happen, just like you’re like you’re creating a financial plan which focuses on building net worth. And you can give in various ways – some charities need money, others need volunteers or both. If you’re feeling stretched financially, start small, then grow your giving. When I was starting out and had just bought my first house, money was tight. But, I still found a way to give back. I started volunteering: building a playground at the local women’s shelter, raising money for United Way, serving lunches at the homeless shelter and packing hampers at the food bank. It wasn’t long before I was settled into my new life and was able to start giving dollars back too.

Now I am a board member for YWCA of Canada, I sit on a think-tank committee for the University of Alberta, I volunteer, advise and give to the Canadian Women’s Foundation and I spend time promoting financial literacy in schools. I make it a priority to share my time, lend my skills and give my money to causes in which I believe in strongly. And because I support my community, my community supports me.

Here are some tips to help you get started.

First, do a little soul searching and think about what causes are meaningful to you. Has your family been impacted by a particular illness? Do you love the arts? Do children’s sports camps make your heart melt? Perhaps you had a great college or university experience?

Next, start surfing websites of organizations you’re passionate about. If you don’t know of any, visit sites like www.canadahelps.org, Volunteer Alberta, Volunteer Calgary or Volunteer Edmonton to learn about how you can help charities that you’re passionate about. See if you can come up with one or two organizations you can make your “charity of choice.”

When it comes to donating money, there are two different roads to take:  First, you can give small amounts to many charities – $20 here and $50. Maybe you’ve got 10 colleagues running or biking for various causes throughout the year and you give $50 to each of them. When you spread out your donations, many charities benefit.

Or, you can select one or two organizations to focus your donations on, thus they benefit from more of your dollars than if you were to spread out your donation across 15 organizations.

I recommend that if and when you do come up with one or two charities of choice, focus on giving more to them, rather than spreading out your money to random organizations you may not feel as strongly about. That way your dollars have a bigger impact for a cause you’re passionate about.

When you’re ready, start contributing to your charities of choice regularly – perhaps $50 a month. Then every year, grow the amount that you give.

Check if your employer has a matching program whereby they’ll match your contribution up to a certain amount. Also see if they’ll support your volunteering by giving you time off or allowing you to host meetings at your office.

Once you’ve developed a relationship with your charities of choice, explore other ways you can help or lead the organization towards major success. In 2008, for example, I put my financial skills to use and helped the Canadian Women’s Foundation launch the first charitable Initial Public Offering on the Toronto Stock Exchange. Our goal was to raise $1 million and we’re more than halfway there!

Philanthropy is so important because it helps to build safe, healthy, growing communities. Giving goes beyond donating money. Charities require volunteers to deliver programs and fundraise and they need strategic direction from board and committee members.

If you ever catch yourself wallowing in self-pity about what little money you have, go volunteer at the food bank or homeless shelter. You’ll quickly realize your life isn’t that bad. Regardless of your age, income bracket or financial status, you can still give back, whether through time, talent, or dollars.

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According to recent polls, Canadians aren’t very happy. Though we have more material things than ever before, hyper consumption has resulted in record high personal debt levels and when you layer on job instability still lingering from the recession, its no wonder people are extremely stressed, anxious, and burnt ou

On top of this, more than 80% of Canadian couples are reporting that they’re fighting with their partner about money, resulting in money problems being sited as the leading cause of separation and divorce[1].

Say goodbye to doom and gloom and cheer up! There’s a solution for our sad predicament – and it’s better than any therapy you could pay for. The secret is to keep money matters simple by sticking to tried and true financial principles so that you can focus on what’s truly important in life – your personal well being and relationships.

Money can’t buy you happiness, but it gives you options. When you have it, you can support your lifestyle and choose to do what you want to do. But, when you’re broke and owe money, your choices are limited – pay up or the bank will repossess your car.

Sharpen your skills through first hand experience and education. If you’ve been on financial auto pilot, switch it off and take an interest in money. Though you may not like to deal with money, it’s irresponsible to ignore it. Start by checking your bank account and credit card transactions online each week.

Read financial books and articles. Go to free financial planning workshops offered by your local municipality or employer. Talk to a financial representative from your local bank and ask questions about products and services. Generally, if you can’t understand the product, don’t use. Do more research and get a second opinion.

Shift your mindset from living pay-cheque to pay-cheque to keeping what you’ve worked so hard to earn. This means developing a budget where you spend less than you make and sticking to it. Once your budget it set up, track your progress. Try out budget calculators through your online bank or www.moneyville.ca.

If you’re in a relationship, it’s even more important to use a budget so that you can plan your future, hold each other accountable and avoid money fights. The key here is to ensure both partners feel they have an equal say in what goes into budget.

Next, if you can’t pay cash for something, it’s probably because you can’t afford it. If you’re overspending, cut back on some of the small things like coffees and drinks out with friends. Also, try taking out your spending money from the ATM once a week or once a month and leave your bank card at home. Cash is harder to part with than swiping or charging for a purchase so you’ll think twice about your must-have purchase. If you’re tempted by credit cards, cut them up or hid them.

Take time with your purchases. Shop around, use a shopping list, wait a few days before making a big purchase and plan ahead for your expenses.

Spend your time on developing relationships and experiencing beautiful things in our world rather than spending money at the mall. Go for a hike, bike, run, visit friends, host a potluck, play games with your kids or spend time with your partner. Consider volunteering at a homeless shelter or the local food back. That’s always a good financial reality check to remind yourself you don’t have it that bad.

It’s critical to your financial health to set aside money for your future before you pay anyone else. So, contribute to a pension program through work or RRSP plan the day you get paid. Following that, pay your bills and eliminate debt. Save and pay bills before you hit up the latest hot restaurant with friends.

Focus on your financial goals. Think about where you want to be in 5, 10 or 25 years from now. How are you going to get there? To simplify your life, hire a financial advisor to help you set up a comprehensive plan which includes having insurance, investments, a debt reduction strategy and goals for the future.

Anytime you catch yourself sulking because your friend has a bigger house or nicer car, remember that they’re probably living on credit and have no money.

Being money savvy doesn’t need to be complicated and it will reduce your stress level. Stick with a financial plan, pay down your debt and grow your assets.

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Art, in whatever form, is valuable because it enhances our lives. It’s supposed to be emotional and cause you to react. It can be beautiful, satirical, sad, disturbing, funny etc. Art is personal and should reflect your tastes.

Through careful selection of quality and smart shopping, art can be affordable and may even grow in value. Of course it doesn’t make sense to purchase a Botaro sculpture while you’re hacking away at student loans and a mortgage. But, as your career and income grows, you can plan ahead for artistic expenditures, stick to a realistic budget and avoid expensive payment plans. Think of it like this; if there’s a $5,000 painting or sculpture you’re dying to have, start saving $420 monthly or use your bonus or tax return.

When you’re ready to buy, take your time, shop around; speak to professionals like a gallery director. A good gallery director will spend time with you to help you find a piece of art you love and that’s within your budget. Research artists, auction houses, and galleries through personal referrals and on the Internet. If you need help deciding on a particular style you like, visit many galleries and comb through websites of museums, or even www.art.com.

If you’re thinking of making an investment in art, investigate how many pieces from the artist exist, where they’re sold and whether critics have been favourable. Many pieces of art or an artist in general have a sales history and if you see the artist’s pieces selling at increase prices, that’s a good sign their work may hold its value. It’s important to note though that art prices can be volatile. If you really like a piece, get a second opinion. Ideally, you’ll invest money in art which touches your soul and doesn’t break the bank.

These days, galleries offer payment plans for pieces of art. While in Maui this past year, I investigated the origin on these plans and learned they’re being used primarily by the 20 to 30-something crowd. One gallery representative explained that payment plans make art affordable. However, like a car loan or credit card, these plans can have hefty interest rates and inflexible repayment schedules. Avoid going into debt for art. Because the value of art can be volatile; and therefore it can’t be considered good debt.

Don’t forget about other forms of art like theater, music, literature, dance, food and travel. Many communities or government organizations sponsor festivals which people can enjoy for free or inexpensively. Libraries or book shops may host a literary event, or a local government could sponsor a lunchtime Shakespeare play. If you travel, investigate local hot spots for the arts. You may find a jazz bar or cheap tickets for Broadway. Most communities have associations that promote local events through newsletters, Facebook or websites. Additionally, many corporations sponsor artistic events. So, check with your employer or corporate social club to see if you get special pricing on tickets or freebies.

Part of any good financial plan, besides saving and investing for the future and reducing debt, is social responsibility. The arts are an important part of our community and should be supported monetarily and through volunteering. Not only does giving make you feel good, there’s a return on investment and it shows up in a variety of ways – promotions at work, an increased network, enhanced sales, marketing, PR and leadership opportunities. One of the most affordable ways to infuse art into your life is through giving – join a fund raising committee for your local art gallery, teach an acting class, donate to a painting program, write articles for a travel magazine.

You don’t have to buy a Van Gogh to enjoy art. There are affordable and smart ways to infuse the arts into your lifestyle and business surroundings. And, that’s the beauty of art. Whether it’s painting to culinary experiences, the arts bring people together from all backgrounds and bank accounts.

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Paying for post-secondary and graduate education is challenging. I know first-hand how it feels to be slapped with a $10,000 bill for tuition, books, and supplies each year.

When you choose to hit the books for two, three, four, or five years, you forfeit immediate income-earning opportunities; you’re typically not working full time. So while some of your friends are bringing home a nice paycheque each month, you’re doing just the opposite: spending money on education.

An undergraduate degree in Canada costs, on average, between $30,000 to $50,000. Graduate and doctorate programs can cost upward of $70,000 to $100,000. Most graduates leave post-secondary with at least $20,000 to $30,000 in student debt.

So, the underlying question is, is it worth it? The answer is “Yes!” Getting an education is exceptionally valuable. I’m not just talking about college and university. I’m also talking about trade, technical and apprenticeship programs. Your long-term income-earning ability is anywhere from a few hundred thousand dollars to over a million dollars greater than a high school graduate’s[1].

Research has shown that education is an incredibly valuable asset and a big part of developing a strong personal brand. Educated people not only earn more money, but also enjoy a higher quality of life because they have more choices in terms of their career opportunities and lifestyle.

Statistics Canada conducted the National Graduate’s Survey based on 2006 census data. Over a 40 year period, college grads are expected to earn $200,000 more than a high school grad, a Bachelor’s degree holder is expected to earn $745,000 more and a post-bachelor degree holder will earn $1.2 million more than a high school grad. [2]

The US Department of Labour and Census Bureau conduced a study in 2004 that suggested that 75 per cent of future jobs will require some type of post-secondary education. Additionally, they found that jobs requiring a bachelor’s degree would grow twice as fast as national average for other occupations.

If you know you’re going to hit the books, try saving for school in advance. Tuck away regular amounts of money through automatic bank deductions into a Guaranteed Investment Certificate, money market mutual fund or high interest savings account. Each is low risk, earns stable returns and can be accessed when the time comes to pay your fees. To make this even more beneficial, save within your Tax Free Savings Account so that your money can grow tax free.

Also, consider working while you’re going to school. Check with your current employer to see if they will be able to accommodate your school schedule. If you’ve done good work, companies will often want to keep you on part-time or even allow you to work remotely from wherever you go to school. Second, check out if there are any part-time jobs on campus. The libraries, restaurants, stores, fitness centres, and so on need staff. Within your own faculty there may be opportunities to help with academic research or various studies, or you could become a teaching assistant. Third, if you’re studying a particular subject like engineering or education, look for student-friendly employment within your field of expertise. This is a great way to apply what you’re learning and have employers test out your skills. Fourth, don’t forget about entrepreneurial ideas. If you’ve got a special skill such as photography or fitness training, use it to make money.

I’d recommend applying for scholarships. Your effort combined with the right qualifications can result in thousands of dollars of free educational money. The registrar’s office or library on your campus will have information on scholarships, bursaries, and income assistance.

Additionally, apply for government student loans. Student loans must be repaid in regular installments once you graduate. The interest rates are competitive and you can write off the interest after graduation. Student loans often have associated grants and bursaries which you can apply for. Visit Canada’s student loan website for general student loan information www.canlearn.ca. If you don’t qualify for scholarships, student loans, grants and bursaries, pay for school through a student line of credit. Lines of credit are available through most financial institutions and have highly competitive interest rates with flexible repayment plans.

Yes, there are very successful people in North America who don’t have post-secondary education. But this phenomenon is becoming less common because the corporate cultural norm has changed: education is critical.

[2] http://www.millenniumscholarships.ca/images/Publications/090623_POK1_backgrounder_EN.pdf

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If someone asked me fifteen years ago what a mutual fund was, I would have drawn a blank. Since then however, by getting money mentors and by using the resources available to me like books, articles and the Internet, I’ve learned about investments, debt, saving and savvy spending.  And I’ve realized that money management and its sometimes confusing jargon isn’t nearly as difficult to understand as you might think. A little bit of knowledge coupled with some guidance is all you need to become financially successfull.

The majority of Canadians haven’t received formal money training through education or the services of a professional financial advisor. Many learn money skills through firsthand experiences which are often difficult – like a maxed out credit card or being declined for a loan. According to a study conducted by BMO Bank of Montreal in 2008, when younger professional Canadians finally get around to asking for financial advice, more than 90 per cent of the respondents polled said they discussed and received money advice from their parents as their number-one source of information. Second to that, they received advice from friends. Along the way we glean nuggets of financial information from people we trust – these are our money mentors.

My first money mentor was my mom and she encouraged me to buy my first Canada Savings Bond at 10 years old with $100 I’d received for my birthday. When I turned fourteen and got my first job at the local library shelving books for $400/month, I met my second money mentor named Ryan. Ryan worked at the local bank across from the library and he introduced me to mutual funds and also gave me advice on how to save for my fast approaching university education.

Since graduating from university in 2005, my savvy aunt, a Toronto-based multi-millionaire interior designer, has mentored me since toward developing habits and behaviours of self-made millionaires. Like many multi-millionaires, she doesn’t necessarily look the part, driving fancy cars and living in a mansion. Rather, she saves money by making frugal choices like driving a 2002 Toyota Highlander, carrying a stylish Roots bag, wearing second-hand jewellery, and traveling in economy class. According to her, not living how rich people “should” live has been critical to her success.

Her top piece of money advice to me has been this: it doesn’t matter how much money you have, if you don’t learn how to keep it, you’ll never be rich. That’s right, you could have $1 million and if you spend it all on image boosting non-assets like cars and stereo systems, in the long run, you’re no better off than the person with $10,000 who spends it the same way.

If you want to adopt a money mentor, look for some of the following characteristics.

1. A good money mentor will have demonstrated their ability to build their net worth steadily over time through a combination of debt reduction and asset growth – like investing money or buying real estate.

1. A good money mentor keeps and maintains a meticulous budget, living within their means. One of the primary reasons people go bankrupt or don’t have savings is due to improper cash-flow management. They spend more money than is available and run out. Often, they’re without a budget, or they blow their budget out of the water. A budget is a tool to keep you on track.

1. Good money mentors are savvy spenders – the best way to shop is to first determine whether you actually need the product or just want it. If you don’t need it, don’t buy it; no matter how good the sale is. Being an overzealous, debt-ridden shopaholic is unhealthy and won’t help you achieve financial independence. A good deal you can’t afford is never a good deal. But, if you’re primed for a purchase, try paring down (choose the iPod Shuffle vs. the Nano) or buy ‘used’ through reputable online websites. For regular household items, buy in bulk or shop in stores with concrete floors. Also, sign up for loyalty programs so you can collect points – everyone loves freebies!

1. They’ll give of their time and be willing to teach you things like how to make more money at your career, save more, and how to invest wisely. They also give money and their skills to worthy causes.
2. If you want to sharpen your financial skills before you get a money mentor, you can also learn a tremendous amount from books and Internet Resources.

• Globe Investor (www.globeinvestor.com)
• Morningstar (www.morningstar.com or www.morningstar.ca)
• Buck Investor www.buckinvestor.com
• Yahoo! Finance www.finance.yahoo.com
• Any of Warren Buffet’s books
• Authomatic Millionaire by David Bach
• Wealthy Barber by David Chilton
• Rich Dad Poor Dad by Robert Kiyosaki’s
• Millionaire Next Door by Thomas Stanley and William Danko
• How to Make Money in Stocks by William O’Neil
• Value Investing by Janet Lowe

By getting a money mentor to give you guidance, you can take your natural desire to create financial freedom for yourself, learn some technical financial skills, and implement them to build your net worth.

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Do you have the right insurance? Though it’s not pleasant to think about illness, disease, death, disability, floods, fires, accidents, and other awful events, catastrophes can happen and you need to be equipped with the right insurance to get you through.

Most people are familiar with general insurance which is home and auto insurance. But many are unfamiliar with life and disability insurance. Generally speaking, you should have life insurance when you turn twenty-one years old, are married or living common-law, have dependants or children, or have acquired assets such as an RRSP or a home or liabilities such as debts.

The first rule of insurance is to insure for the major things and people in your life such as your house, vehicle, future earnings, and life in the event that you die. So, for example, if you’re the breadwinner of a single-income family with children, and the survival of your family depends on your future earnings, you’ll want coverage on your life and potential disabilities as both death and disability would prevent you from earning money to support your family.

Find out the rest of the rules by clicking below to listen to our Rich By Thirty Podcast (or subscribe via iTunes).

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Check with your employer or other associations you are affiliated with to see if you qualify for a discount for any home, auto, life, disability, or travel insurance. Check out some of the following websites for insurance products, information, and quotes:

www.bluecross.ca

www.caa.ca

www.lifeinsurancequote.com

www.kanetix.ca

www.insuranceinstitute.ca

www.avivacanada.com

www.insurecan.com

www.insurancehotline.com

www.life-insurance-quotes.ca

www.travelinsurancequotes.ca

www.allstate.ca

A few years ago I was driving from Calgary to Banff and my car stopped working. It wouldn’t accelerate past 30 km/h and it was whining and grumbling the entire way. When I got to the mechanic he said “Lesley, this car is toast! The costs to repair it are going to be more than what the car is worth.” So, sadly, after many good years of service I said goodbye to my old car and made the decision to buy a new one. I had a really hard time coming to terms with spending money on a car because it’s a depreciating asset. I know some people would disagree with me, but the truth is, unless you buy a collectors item car, your vehicle is a sunk cost the moment you buy it. Of course, you do receive some benefits from having a car because it increases your mobility.
Cars are super expensive because of depreciation, car payments, repairs, maintenance, fuel, and insurance. SO if you really need one, avoid getting one. But, many people do need one, so here are some tips when you buy.

Click below to listen to Lesley’s tips

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