Living on Cash

Hand holding fanned out Canadian money.Living on Cash

Every time a new client is told that they have to surrender their plastic when they file a debt consolidation proposal or bankruptcy, they get this blank look on their face. The look translates into: How am I going to live? The answer is: quite well, thank you. By spending millions of dollars on advertising, the lending institutions have convinced all consumers that we need credit cards to show the world how
great our credit is. A gold or platinum credit card is somehow the best. And we get points also – over the next eight years, you will be able to fly somewhere at a time of year that you would not go anyway. Buying something for cash, shame on you. It must mean that you have no credit. At the very least, it means that people with lots of cash, will find you pretty soon.

Who do you think is paying for all of these frills and loyalty programs?  Of course, it is you. Don’t buy into it. There are enough deductions from you pay cheque that you cannot avoid. Why volunteer more?

Living on cash (or close to it) means that you are in absolute full control of your spending. You likely have budgeted your spending habits so that you know what your basic weekly or monthly repeating costs are (rent, food, clothing, transportation costs, etc.) as well as the variable “feel good” costs of entertainment, restaurants, vacation, gym, etc. Of course, emergencies will always happen. So, open a savings account and put a small amount away by a regular automatic payroll deduction similar to what you are likely doing for an RRSP.

You should also have a credit (even a prepaid credit card) for an immediate emergency. It should have a reasonable limit and be used only in a true emergency. Think “need” instead of “want.”The best result of cash is that I always spend less when I am paying cash. Your mind seems to be telling you that you are actually spending money that you worked hard to earn. Not a bad thought to keep.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Find a Financial Planner

Financial-Planning-And-Analysis-Interview-QuestionsFind a Financial Planner

If you are willing to research, you will be able to find a financial planner in your area. You may want to look into fee-only planners or a fee for service because getting advice will help you work towards financial freedom and give you your own personalized financial outlook.

If you feel you are unable to manage to pay the fee-start educating yourself about money. Prepare a financial action plan.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form. To learn more please visit our YouTube Channel. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Words to Live By… I Can’t Afford It!

PaymentWords to Live By… I Can’t Afford It!

Understandably, it can feel embarrassing sometimes to tell acquaintances, friends and family that you just can’t afford it but once you say it a few times, you may find yourself feeling honest, financially responsible and relieved.

Most people have experienced the feeling of impulsive “quicksand spending” others may call it “shopping therapy” but all in all there is nothing therapeutic about it. Perhaps it could be compared to fast food binging: a momentary feeling of “satisfaction” followed by days of gut rot and oily skin.

Your body can not afford the effort it takes to digest unhealthy food and you can not afford the impulsive purchase to please other people or falsely please yourself. Start to tell people in your life that you can no longer afford so many dinners/lunches out or that extra weekend away or that golf membership or the spa day. You will be surprised how many people understand and you will ultimately feel relieved to be able to prioritize your spending according to your financial goals.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form, to learn more please visit our YouTube. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.

Do Not Take Debt Into Retirement

DebtDo Not Take Debt Into Retirement

If you research retirement and debt topics, almost all articles, advice and financial help and planning books say something similar to these three points:

1. Carrying debt on a fixed income is very stressful

2. Carrying debt and spending a fixed income drains cash flow

3. Retirees with outstanding loans are less happy

It is difficult sometimes to think about retirement when you are just figuring out your mortgage or paying into your children’s tuition account every month. However, retirement is around the corner and you not only deserve to be stress free and happy now but you also deserve to feel secure and happy in the future. This may sound easier than it seems but small steps in this direction every year may reap financial benefits in the future and towards retirement.  Start by selling items you no longer need or decide to do something you love to make a little bit of extra money every month to decrease your debt. Downsizing your living environment may feel scary but can be most invigorating and beneficial. You just need to do what makes you feel most comfortable but most importantly, do not carry debt into retirement.

Contact Rumanek & Company Ltd. for more information on bankruptcy and debt solutions. Or please fill out the free bankruptcy evaluation form, to learn more please visit our YouTube. Rumanek & Company have been helping individuals and families overcome debt for more than 25 years.