A Common Story About Debt

The past three years have been challenging. I moved to Vancouver for a great IT job. In a flurry of activity, I sold one condo and purchased another. I was so busy with work, I didn’t add up how much more the bills at the new place would be and when I renovated my condo, I didn't budget enough, so I started using a line of credit. Then, I took a temporary promotion at work, and managed to spend the entire promotion on lunches and lattes. I didn’t drop my new habit when the promotion came to an end, so I started using my credit card to pay for the extras. I ended up with a mortgage, credit card debt and $7,000 on a line of credit. I was able to make the payments on my salary of $52,000, but I wasn’t making much progress, and I hated being in debt. 

There Are Lots of Reasons People Ask For Help

It wasn’t the debt that made me ask for help. My employer suggested I consult my financial advisor about changes to our employee pension plan. I didn't have an advisor. I decided it was time to find one, but not just for advice on my pension. It was time to do something I hadn’t be able to do in 43 years - align my spending with my dreams, goals and values. I wanted more control. That’s when I found Sheila Walkington.

People Bring A Lot More Than Their Bank Statements

I went to my first meeting with mixed emotions. I’m shy, private, and I inherited a belief that finances are not something you discuss. When I started, I was intensely embarrassed about my debt. I felt like I had failed.

Sheila very quickly put me at ease. I had $20,500 in debt, OK, but I also had a net worth of $114,678! She showed me how to make a simple monthly budget based on my bi-weekly pay schedule and asked specific questions, “How much interest are you getting on this RRSP? What insurance do you have?” And my retirement looked good!

When You Lose The Guilt You See Results

Owing money is soul killing for me. Living in the city and owning my own home are important. That is how I define independence. And fundamentally, I don’t want to worry.

Over the next several weeks, I used my new budget. I began to see where my money was going and I was ready to tackle Sheila’s next set of questions. Does my spending make sense? What are my goals? What do I value most?

At our second meeting, I was positively giddy. I was the one with the questions, and it was my plan. Working with Sheila inspired me to act on my goals and my plan - and it is working!

Having a Plan Makes Financial Decisions Easier

I have matched my values to clear financial goals; and I’ve tied those goals to a budget. Now, if I suddenly want to buy something, I ask myself, “Is it in my plan?” If it isn't, I ask “Do I want to give up something in my plan?” The answer there is a resounding no! So I then ask, “How else can get it? Can I borrow it, trade for it, get it for free? Can I earn more money to pay for it, and how long will I have to work to get it?” By the time I get through all that, the impulse has usually passed. My spending is under control and it feels like I have more money than I have ever had for my goals!

Just as importantly, I have the tools and the confidence to adjust my plan. When I achieve some of my goals, or if life throws me a curve ball, I’ll be able to adjust my budget. Budgets used to be confusing, restricting, and hopeless, and talking about finances was acutely embarrassing. Now, I am focused on achieving my goals. I feel in control, focused and most of the time, I really am giddy about my money!

The Bottom Line

My net worth has increased more than $4000 in 3 months. I used to think, I shouldn't pay someone for something I should be able to figure out myself. I finally admitted, if I hadn't figured out my finances after 43 years on this planet, I needed to hire a professional. I have already recovered the costs several times over.