Your Money by Design

silverdollarus

Tue, 17 Apr 2007 03:01:58 -0700

fivepoundnote (Large)

Tue, 17 Apr 2007 03:00:22 -0700

australiancoin (Large)

Tue, 17 Apr 2007 02:59:10 -0700

hungariannote (Large)

Tue, 17 Apr 2007 02:57:13 -0700

pakistanicoins

Tue, 17 Apr 2007 02:52:34 -0700

firesteel

Sun, 15 Apr 2007 03:29:12 -0700

rainbow

Sun, 15 Apr 2007 03:25:42 -0700

my backyard again: a working port (Vancouver) struck by a prism.

industrial gastown (Large)

Sun, 15 Apr 2007 03:23:34 -0700

Gritty, urban, raw industry: my backyard. There's nowhere else I'd want to live.

Juicy financial gossip for geeks and canadians

Tue, 10 Jul 2007 14:02:07 -0700

Now here's some really fun economic gossip! 1. Turns out Rogers Canada (owned in large part by AT&T) charges Canadians about 6 (six!) times the price for wireless data than AT&T charges their US customers. Canada: $299/month. US: $63/month. There's an online petition to Rogers if you care to protest. 2. And on the tech theme, Google just bought Postini Inc. What's postini? It provides security for e-mail. This means gmail will become even more popular. Google's stock price rose by $3.16US, while Microsoft fell by 10¢. 3. But that's all boring compared to what's happening in China, with their answer go google. It's a search engine called Baidu, it's stock is up 78% this year, and profits will likely increase by 45% each year over the next few years. It's current stock price (P) is also trading at over 100 times what each share earned (E) last year - P/E ratio of 107.

How does a Cdn tax dollar get spent?

Wed, 04 Jul 2007 00:44:41 -0700

Well, since it's still Canada Day season, thought I should investigate how our federal tax dollars are contributing to making Canada, Canada. Le voila:

$0.15 - interest on the debt (pays our Canada Savings Bonds interest, for example)
$0.53 - given to the provinces and territories and individuals to do good stuff with. We hope.
- $0.23 - go to individual Canadians (like Old Age Security - $0.13, and Employment Insurance - $0.06, Child Tax Benefit - $0.04)
- $0.19 - given to provinces and territories to implement federal programs like healthcare-$0.08, education & social assistance -$0.03
$0.11 - grants to things like the arts, farmers, aboriginal programs, bilingualism, sports
$0.25 - operating costs of running the federal gov't (eg. Nat'l Defence - $0.07, RCMP - $0.03 and our favourite, the CRA itself - $0.02)
$0.03 - crown corporations like CBC, CMHC and Atomic Energy (huh? who knew?)
$0.06 - surplus, used to reduce the federal debt.

There you have it. Note that some of the things we love to hate, social assistance and employment insurance, were only about $0.06 cents of the dollar, whereas old age security is actually the largest single item after interest on the debt.Now we know!

What happens when you lend friends money

Thu, 17 May 2007 00:17:23 -0700

I'm a money coach, and help people handle the day-to-day aspects of managing their money (to avoid our money managing us!). A local psychologist, Isabella Mori just submitted this great piece for my e-zine, Money Savvy, on what happens when we lend money to our friends. _____________________________________ Lending, borrowing and resentment In the eighties, I lived in crazy, bohemian Berlin - then West Berlin, eight years before the fall of the wall. I hung out with all types of interesting people, one of them a highly gifted fashion designer, Maurice. He had a little boutique with his beautiful, ethereal creations in the window. I loved visiting with him, drinking tea, hearing his stories of years of apprenticeship in Paris. One day he told me he was deep in dept, and if he didn't come up with 1,000 deutschmarks (then about $500) within the next few days, he'd have to close up shop. I had some savings so I told him I'd lend him the money if, as he immediately promised, I could have it back within two months. Sure, no problem. You can guess the rest. Despite weeks and weeks of stalking good old Maurice, I never saw that money again. What I remember most about this is not the loss of money but the sudden deterioration and loss of a fun and stimulating friendship. Maurice's behaviour rapidly turned from relieved to grateful to surly to accusatory. Years later, I learned that there is an interesting psychological mechanism at play: When a person feels "less-than" as well as beholden to someone, they can easily start feeling resentful. Maurice felt less than I at that time for a number of reasons: He had less money; I "rubbed it in" by offering to lend it to him; and soon he also realized that he could not fulfil our contract. He started feeling guilty. When people feel guilty and resentful towards someone and doubt they can do anything about it (he simply did not have the money), they often turn on the most obvious source of the guilt. In that case, that was me. It sounds twisted and childish - and it happens all the time. It's just one of our many human frailties. I now try to immunize myself against this by adhering to a few rules of thumb about lending money. I'm never afraid to say no. When I say no, I don't go into a lot of reasons why; I just cheerfully say, "No, I can't do that right now," and move on to another subject. When I do lend money, I realize that I may never see it again and, in my mind, treat it as a gift. I also make sure to tell the recipient that she or he can repay it whenever they can afford it so that our relationship is not strained by money pressure. When, after a while, it looks like it's difficult for them to return the money, I'll just casually tell them not to worry about it anymore. I never hunt the money down anymore. You see, that way I do my best not only to prevent someone else from feeling resentful towards me - I also prevent myself from feeling resentful towards them. Resentments are the poison of relationships. And relationships are so much more valuable than money. Isabella Mori is a psychotherapist. Visit her blog, change therapy http://www.moritherapy.com.

You, Your Money, Your Partner ... and the Great, Big Fight.

Fri, 11 May 2007 01:10:15 -0700

You're a debt-phobe, he's got ten credit cards maxed out. You're a saver, she's a spender. You think life is to be lived, he thinks the cheap bottle of wine is just fine. What do you do when you and your partner have strong differences around money? This is a tough issue, and it can take years to create a financial M.O. that both parties can live with. Here are some ways to start working as a team. 1. Take heart. Different ways of handling money can lead to a stronger economic unit than two people who have similar vulnerabilities. Differences usually include different strengths. Forging an M.O. based on differing strengths can ultimately be more successful than two spendthrifts who get along well, as they sink financially. 2. Let go of judgment. When our partner's financial conduct is threatening to us (and let's face it: our financial well-being is extremely close to the bone!), it's easy to point angry fingers. While understandable, this entrenches each person into the position of Judge versus Wrongdoer. The tension is exacerbated, and diminishes the chances of growing together as a financial team. Try this. At a time and place when you are each relaxed, engage in a judgment-free exploration of each other's financial behaviour. What drives them? Did your partner's family lose everything, so now she is unwilling to risk a penny? Or perhaps did one grow up with a lot of money but a lot of bitterness, so now 'material possessions' seem empty and undesirable? Very likely, you will discover something that you can relate to, and your temptation to judge will be tempered by understanding and compassion. From there, you can consider possible solutions to your conflicts. 3. As a couple, write out the strengths (yes, the strengths) the other person brings to the table. This can be challenging depending on how far down the road you are, but give it your very best try - as long as you can be sincere. Share your list with your partner, then together, write a combined list of your strengths as a couple. This exercise is based on the business principles of "Appreciative Inquiry," ie., building on strengths is more effective than repair-based models of organizational improvement. Let there be some joint positive energy around this. Celebrate your combined strengths. Place the list where you both can see it. Elicit the best from one another. This may not be an easy path to negotiate. It touches on our basic survival instincts - our 'rice bowl', as Steven Covey puts it. It will call for diplomacy, patience, forgiveness and courage - at the times we seem least to have them. Have hope. Consider these exercises a beginning point towards forging yourselves into a money team. You may need extra resources - a couples' counselor, a seminar on conflict resolution, and above all, time. Avail yourselves of them! Money, like so many other aspects of relationship, can ultimately become a place of confidence, safety and even intimacy together, with dedicated attention and care.

Dragon's Den Audition - got eaten alive

Sun, 22 Apr 2007 01:49:06 -0700

You may have heard of the TV show "Dragon's Den". It plays in the U.K., and Canada. Think of it like American Idol, except you're pitching for venture capital for your business. I went prepared to get beaten up if I didn't know my business stuff. But this was extraordinary - I didn't even get to make my pitch! It would be like an Idol not getting to sing, but just subjected to "who do you think you are" type questions! Oy vey! Glad it's done. Here are the gory details. I waited for 4 hours to get in. I was prepared for the wait. We knew we had 3 minutes to make our 'pitch'. As people came out of the audition, they gave the rest of us the heads-up that we would be interrupted if they needed clarifications. I was also totally prepared to be challenged on any aspect of my business, and that if I didn't know my stuff, I'd get chewed up and spat out. Here's what happened: I was one of the last in. The audition process went overtime by a couple hours. Two of the three auditioners (one played the role of Mean Dragon, the other two would be more reflective) LEFT by the time I got in. I was left with the Mean dragon. Dragon: Ok. What are YOU selling me. (tone: let's get this thing over with, fast, and I can already tell: you and your idea suck). Me: (caught off guard right away - I'd planned to tell my story for 30 seconds before getting to the product). Me: I'm selling an online product that helps people take charge of the money. Dragon: yeah? so? Who are YOU to sell me this? Me: well, I'm someone who was 30K in debt, chronically broke, living paycheque to paycheque -- Dragon: (interrupting scornfully) 30K in debt, so this is about debt - Me: (interrupting) well no, it's not just about debt - Dragon: so your a debt counsellor. That's provided for free. Why would anyone pay you? Me: No! It's not just about debt! It's about - Dragon: Yes it is. $30K in debt you should have gone to a debt counsellor (tone: you loser). Me: No. It was student loan debt. What I needed was habits and skills to manage the rest of my money so that I could make the payments plus have money left over. (wish I'd said: if every college/university graduate went to debt counselling about our student loan debt the economy would collapse.) Dragon: Yeah. So you were in debt. Whatever. What qualifies you (tone: you peon) to help me with my money? (tone, how dare you intrude on my fortune). Me: so I've walked the walk. Dragon: Yeah, yeah, I know that already. You were in debt. Whatever. What else qualifies you to run a business. (not really said as a question!) Me: I've started two private schools. Dragon: using other people's money? Me: Yes, and now I'd like to - Dragon: (dismissively) so you're a manager. Me: No, I took the businesses from start up to being thriving - Dragon: (interupting) How much money do you want? Me: $50K. Dragon: (faux stunned); $50K? You're approaching the dragons for $50K? What for? Have you gone to a bank? Why don't you just get a loan from a bank like everyone else? Or did they turn you down? Me: I came to the dragons because I thought it would be a more interesting process. Dragon: $50K? What could you possibly do with $50K? Me: I will overhaul my website. Make it web 2.0. Forums. Calculators. Auto-responders. I haven't yet described my product - Dragon: I don't have any money. How can I possibly pay you? Me: the product is only $30. FOR ONCE, FOR ONCE, THE DRAGON IS STOPPED IN HER TRACKS. I continue: It's an elegant, simply idea. It's a series of e-mails, Money Missions, that slowly but surely help people develop skills and habits and routines that help them take control of their money. Because there is not a high cost-of-goods ratio, I can keep it affordable for anyone. Dragon: So why are you approaching the dragons? Why are you asking for $50K if it's so inexpensive? (fair question). Another Dragon, who'd returned to the room: (said in a refreshingly normal tone of voice): because it's a more interesting process. And for a website overhaul and SEO. Me: yes. Dragon: and will you use some of it for salary? Me: yes. Dragon: cause we'll eat you alive if it's for salary. Me: well some of it is, but most of it is for a couple years of -- Dragon: see you later. Note: in the whole process I didn't truly get to describe my business concept. This would be akin to going to American Idol, and not getting to sing. LESSONS I LEARNED: 1. this is a TV show more than anything. It's about entertainment, not a forum for genuine venture capital 2. essentially, I wasn't asking for enough money to make it worth their while. I wish they'd just told me and sent me home. But oh no... 3. Mean people suck. In fact, next year just to mess with the dragons, I plan to audition pitching "Mean People Suck" t-shirts and other products. And on a more serious note - it was a goofy, wild experience and I'm glad I did it. I went into it on a bit of a whim, and I imagine that showed to a certain extent. Anyone else out there with $50K to invest, lol?

A great money question

Thu, 19 Apr 2007 01:14:34 -0700

So here's a question for you: what one habit, if you applied it frequently and consistently, would over time have a dramatic, positive impact on your finances?