What a Year.

How did you manage? What did you learn? What are you bringing with you into 2021?

2020 was tough. Emotionally. Mentally. Physically. The pandemic has definitely taken its’ toll on my emotional and mental well-being. Not being able to freely walk around, see friends and family, and be constantly mindful of the people around me has really made this quite the year. It’s definitely been hard, but I think after all of this, there are probably a few things that we’ve learned in regard to our finances.

Here are a few things to bring with you into 2021. 

1. We don’t need a lot to live. I think for the majority of our coaching clients, the thing we hear the most is that the pandemic really taught them about the most important things in life. It wasn’t about the car they drove, the clothes they had in their closets, any other material object they once had, or even going to get their hair done bi-weekly, we’re surviving without all of it. There are always going to be things that we like to have. But when you really get down to the nitty-gritty of it, we don’t truly need a lot to live. Head into 2021 by taking a good hard look at your finances, cut out those things that may not be bringing you joy, and focus on those things that matter most to you.
2. You can manage your cash flow, regardless of your financial situation. This one was SO interesting to me. We had a number of coaching clients who had joined us back in February, and then lost their jobs because of the pandemic and had to take a paycut or live off of the CERB. And guess what? They still managed. By working one-on-one with our coaches, our clients were able to re-work their budgets and focus on the priorities of putting food on the table and a roof over their head. It just goes to show that it’s not the money you make, but the way you manage it.
3. Pay off your high-interest debts – ASAP. Being in debt can be hard. Being in debt during a pandemic can be even harder. But I hope (if you were one of the 1000’s of Canadians who had debt before the pandemic) that you had some ah-ha moments. Our coaching clients certainly did. Always pay off high-interest debts (above 5%) every month, or as fast as you can. Nobody knows what’s going to happen in the future, and I think the pandemic made a lot of us realize that our finances are not finite. Manage your income, dollar by dollar, and get out of the weeds when you have the ability to.
4. Have money set aside for an emergency fund. Remember how we always talk about having 3-6 months of necessary living expenses in an account that you can dip into for emergency purposes? I’m sure that really came in handy back in March if you were someone who lost your job. Figure out what your absolute necessities are, and keep a 3-6 month emergency fund in an out of sight, out of mind account that pays some kind of high interest.
5. Invest, Invest, Invest. Once you’ve gotten rid of all of those high-interest debts (above 5%), you can start to invest. Back in March, I was in the airport heading to Belize when the markets were crashing. I kept seeing them drop. Lower and lower and lower. Do you know what I did? I didn’t sell my investments. No, no, no. This was the opportunity that I’ve been waiting for. Everything went on sale! I maxed out my TFSA, RRSP, and had my partner do the same. To this date, our investments are up over 30%. Now, I’m not telling you to time the markets, because nobody can. But if you can keep costs low throughout the year, manage your cash flow, and have cash set aside for these kinds of opportunities, then you’re all set. Buy low, sell high, remember? Don’t panic. If you’re properly invested and diversified, you’ll never lose all of your money. Yes, it may be volatile, but if you can think of the future, you’ll come out on top.

"Be Greedy When Others' are Fearful and Fearful When Others' are Greedy" - Warren Buffet

At the end of all of this, it’s been really interesting to see our clients throughout this pandemic. Regardless of their financial situation, they’re excited about getting their financial house in order for a healthy and successful 2021.

Are you ready to join them? Sign up for your free Coaching assessment call here. Having someone else to give you a completely non-judgmental and non-biased view of your financial situation may just be what you need for your own successful year ahead. After everything is said and done though, make sure to not take any moment for granted. Hugged your loved ones. Take time away from technology, work, and enjoy every minute.

Happy Holidays and New Year from Enriched Academy

What Are You Thankful For?

As we approach one of my favourite holidays of the year (aside from Passover, and Christmas, and Hanukkah, and my birthday), I’d like to check in with you to see what you’re thankful for?

I’ll start. I’m thankful for the health of myself and my family and friends, and also the financial education that my parents taught me at a young age, which now has provided me with the financial freedom to not stress about money. And I’m 33 years old. How many 33-year-olds do you know who can say that?

As the head of coaching for our Financial Freedom program, our program sees 1000’s of clients every year who are in really difficult situations because of a lack of financial education. Just remember, this is not your fault. We live in a broken system. But there is a way that you can make a change, and that change starts with altering your behaviours and habits.

How To Make Habits Stick

We all know bad habits are easy to pick up and hard to drop. Good habits on the other hand? Well, if it was easy, we would all be wealthy and fit (and able to wear the same jeans that we did in high school). I’m currently struggling to fit into the same pants that I was wearing before COVID hit. Damn you quarantine.  
 
But I’m going to let you in on a super easy secret that can help you create strong, lasting habits.
 
Make those habits as easy as possible. 

If you sat down and made a list of habits that you go through in a day, you can probably come up with around 10-20 of them. Here are a few of mine that may help you to create your list.

• Wake up and make coffee.
• Review budget.
• Read finance blog.
• Walk the dog.
• Brush my teeth.
• Make breakfast.
• Clean dishes.
• Get dressed in workout clothes.
• Work out.
• Do yoga.
• Shower.
• Make lunch.

Pretty crazy eh? It’s not even 1 pm yet and I’ve already gone through 11 habits that I don’t think about. I’ve gotten into a routine where I just do them.  

Atomic Habits is our favourite book on creating winning habits. The author, James Clear, outlines a few tips you to follow... 

Use this formula: I will (behavior) at (time) in (location). For example, instead of saying, “I will budget each month.” Try, "I will budget on the 1st of each month at 5 PM in my office." 

Every habit is initiated by a cue. The cue triggers your brain to initiate a behavior because it predicts a reward. We are more likely to notice cues that stand out. Setting an alarm on your phone for 5 PM monthly is a cue that you need to budget. 

Forming a new habit is hard so Make it Easy. We really strive for that in our Enriched Academy Programs.

And now I’d like to share with you:

5 Money Habits of Wealthy People 
 

These concepts are honestly so easy, and they truly are the key to building wealth. We see most of our successful Financial Freedom clients live by these means, and you can start to see results today if you follow the list below.

1. Live below your means. Spend less than what you earn. It’s as easy as that. Sit down and go through all of your sources of income, and everything that you spend money on. If you have money left over every month, and are putting money into an investment account, you’re beyond the majority of Canadians. If you’re overspending though, then you need to make some cutbacks unless you want to end up in debt for the rest of your life. It’s not about making more money. It’s about living with what you have and being smart with it. If Warren Buffett is worth over 70 billion dollar and lives in the same home that he bought 50 years ago for $31,000, and drives a modest Cadillac, then you can live within your means as well.
2. Learn one new thing a day. No one has ever gone broke buying books. I read a daily personal finance blog that keeps me up to date with what’s going on in the world. If your new thing is a recipe, or a craft, or a new trade, then that’s awesome. But just force yourself to learn something new.
3. Small steps each day. Have you ever read a book or taken a course but quickly found your motivation evaporated? Wealth is given to those that take small consistent actions daily. Ask yourself, what is one small thing I can do today to help me make progress with my finances? 
4. Track your net worth and budget monthly. You cannot improve what you don’t measure. These two numbers are the foundation for financial and time freedom. 30 minutes per month, that's all it takes. This is one of the biggest ways that we measure our clients in our Financial Freedom coaching program. We get them to track their Net Worth month and start to track their cashflow as much as possible. This way, they can see the correlation between the two. When you start to track your cash flow, and you spend less than what you earn, then your Net Worth goes up.
5. Learn to say “no”. Only spend money on things that bring you an immense amount of joy and happiness. Everything else, say no to. 

Once you’ve got the top 5 habits above in place, you’ll start to see dramatic results with your finances. You’ve just laid down the foundation to becoming financially successful. Congratulations. But there’s still more work to do! You need to review your financial goals and plan each month. Step 1 is creating that plan. Step 2 is constantly reviewing and making changes to your plan as things change. If you are not constantly reviewing your plan you could be headed in the wrong direction and not even know it. 

When COVID-19 hit and our economy, we worked with all of our coaching members to revise their financial plans because so many things were changing all at once. Some of our clients had lost their employment, their investment portfolios were going down, their kids were home from school, among many other things.

The one thing that we’ve heard over and over again is how thankful our Financial Freedom clients have been for having us work with them throughout COVID-19. Even though some of our clients have seen a decrease in income, they’ve seen an overall increase in their Net Worth. This education that we provide is something that will be with you forever. And we can help you change your habits.

Just the other day I received a note from one of my past students. It made my heart go all warm and fuzzy inside.

“I am not exaggerating when I say that what you all do is life-changing! You helped us so much and we are forever grateful ????”.

So, if you’re ready to take control of your finances and join the 1000’s of Canadians who have gone through our Financial Freedom Coaching, sign up here for your coaching assessment to see if we can help you.

You’ll be thankful.

Happy Thanksgiving!

Have you ever gone through your bank to take a look at your credit score and haven't been super happy with the results? Or have you ever looked into getting a mortgage or needing to borrow money, and nobody will give you a loan? It's likely because you don't have a credit score that's in tip-top shape. This article will explain what a credit score is, and how to increase it. 

What is a Credit Score?

You Credit Score is a number (typically between 300-900) that is based on your credit report. Your Credit Score your financial report card, and it’s used by lenders to predict the likelihood that you will repay any future debt.  Your Credit Score is based off of your Credit Report, which is a summary of how you pay your financial obligations. Lenders use your Credit Report to verify information about you and how you have been with paying off your financial obligations in the past.

Why is This Important?

Your Credit Score will determine if you are a risk to lenders and it will affect the interest rates that you pay on any loan that you’re applying for. If you have a “Poor” – “Fair” score, and are looking at securing a mortgage, you may not qualify through a bank or Credit Union. You may have to go with a B-Lender or even a Private Lender, where you’re looking at interest rates 3-6% higher than a traditional A-Lender.

The Credit Score is one of the metrics that we track in our Financial Freedom Coaching program, and if you can believe it, we’ve helped our average coaching client increase their credit score by 21 points in a 6-month period.

How Can I Increase My Credit Score?

There are 5 main ways that you can increase your Credit Score. All of these ways need to be monitored and properly managed in order to work.

1. Payment History: this is the most important factor in your credit score, and it makes up to 35% of it. Creditors want to know that you’re going to pay back the money you are asking to borrow from them, so they will look at what your payment history has been like from previous consumer debts. ALWAYS make your payments on time and make the full (or at least minimum amount owed) payment each time.
2. Amounts Owed: this makes up about 30% of your overall score, so it’s an important one. How much you already owe on your debt vehicles will really matter to a lender. Try to keep your credit utilization rate less than 35% of your available amount, and don’t max out all of your available debt vehicles. If you use a lot of your available credit on your debts, lenders see you as a great risk EVEN if you pay your balance off in full by the due date.  

For example, if you have a credit limit of $10,000, you should not carry a balance of more than $3,500.   

3. Length of Credit History: this makes up about 15% of your score. Creditors and lenders like to see that you’ve been able to handle credit accounts correctly over a period of time. Newer accounts will lower your average account age, which may negatively impact credit scores. Never cancel one of your first cards because that marks the beginning of your credit history. 
4. New Credit Applications or Credit Checks: every time you apply for more credit, your score will be affected, so try to limit hard inquiries. There is a difference between a soft credit check (checking your credit score) and a hard credit check (looking for more credit). Every time you do a hard credit check, your credit score will be lowered. This takes place when you apply for a mortgage, loan or credit card. 
5. Use Different Types of Credit: You should have at least 2 credit vehicles open (credit cards, LOC’s, car loans and mortgages.) Showing you can manage different types of credit will have a positive impact on your score. 

You should check your credit report and score once per year. One small error can have a horrible long-term impact on your credit score, which is why we get our Wealth Mastery and Financial Freedom Coaching clients to check it. Your credit score is like your financial report card and having a bad score can have a really negative affect on your long-term financial plan. We’ve helped 1000’s of clients increase their score by an average of 21 points through our Financial Freedom one-on-one coaching program. If you feel like you need a little one-on-one help, make sure to sign up for our free Coaching Assessment Call.

It’s been a few years now since the term Robo-Advisor has surfaced, and we get a TON of clients in our coaching program not knowing what it is. So, while you sit there, scratch your head, and wonder what this new type of tech is, I'll explain it to you. As easy as possible.

What is a Robo-Advisor

A Robo-advisor is a new class of financial advisor. It uses algorithms to provide investment management and/or advice with little human supervision. Using a certain type of software and algorithms, a Robo-advisor is able to figure out your asset allocation, and then build a portfolio for you that is only made up of ETF’s. From there, they actively manage your portfolio whenever necessary; buying, selling, and re-investing dividends. Don’t want to do self-directed investing but still want to invest in ETF’s? A Robo-advisor may be perfect for you.

What are the Fees?

Since Robo-advisors don't use a lot of human management on the back end, they often have lower management fees than other investment firms. Robo-advisors charge an MER on Assets Under Management of anywhere from 0.30%-0.60% for their services, and then the ETF portfolios typically charge an average of 0.10%-0.30%. At the end of the day, this is probably going to put more money in your pocket because you’re saving a bundle on fees.

Let’s break down how that looks compared to an actively managed account from one of the big banks. Canada has some of the highest mutual fund fees in the world with an average 2.3% in MER fees. Let's say you have a portfolio of $100,000 with a financial advisor. You're probably paying an average 2%-2.5% MER or $2000-$2500 in commission regardless of how your fund performs. But if you're using a Robo-advisor, you're only paying a commission of $400-$900 (based on the 0.40%-0.90% MER). That extra money that you're not paying in fees will go a long way with that sweet principle called compound interest.

Which Robo-advisors is best for me?

Good question! This really depends on your preferences, your goals, and the portfolios that the Robo-advisors use. Each Robo-advisor offers something different so it’s important to take a look at which one works best for you. Here are some of the different things to look into;

• Fees. Although this isn’t the most important thing, it is an important factor.
• ETF’s that make up the portfolio.
• The dashboard.
• Other benefits. Some Robo-advisors provide you with a dedicated financial advisor, estate planning, insurance needs, tax-loss harvesting, etc. This may be something that you require, so it’s good to look into your own personal needs.  

And now?

Well.....there’s no better time than the present, and if you find that your returns haven’t been stellar over the last few years, it may be time to re-think your current investment strategy. Or maybe you’re ready to grab the bull by the horns and start tucking away some money for long-term financial growth if you don’t have any high-interest debts that you need to pay off.

And if you feel like you’re still lost, and need some one-on-one guidance, consider signing up for a coaching assessment call to learn more about our one-on-one coaching program. We can provide you with a deep dive analysis on your current investments, teach you about alternatives, and provide you with unbiased assistance to make the most of your money. You can sign up for your coaching assessment call here.  

Crush Your Debt – For Good

Have you heard about our brand spankin’ new program that we launched in May? It’s for all of you out there that have a little (or a lot) of debt to pay off. And we’re not just talking mortgage debt. This goes a little bit deeper than that. This program is tailored specifically for those who have credit card debt, line of credit debt, personal loans, and debts to family members. Interested in finding out more? You can take a look at the program here: https://enrichedacademytraining.com/debt-sales-page

Why did we create this program?

Getting out of debt is hard if you’re not educated on a wide range of topics. After launching our coaching program back in 2017, we saw a need for continual education surrounding debt. We kept seeing the same debt patterns time and time again, and we wanted to help our followers get out of debt by being able to use the same tools and worksheets that we use with our one-on-one clients. Introducing…….our Debt Elimination Program.

What’s so great about this program?

I think the question is, what is NOT great about this program? It’s specifically constructed to provide you with the education, tools, and resources that you need to get rid of your debt. These are proven methods that we teach to our one-on-one clients, but now you can have access to the education, the resources, and the worksheets to feel more empowered and confident in the next steps. The principles work, so long as you’re willing to do the work yourself.

The other thing that is really great about this program, is that we wanted to make it affordable because we know that getting out of debt can feel really daunting. We priced this at $197+tax. That’s it. And you get 7 modules, tools, resources, and an exclusive Facebook group to ask questions and get support.

What do you cover in the program?

Here are the 7 modules that we cover:

1. Creating Your Net Worth Tracker and Analyzing For Quick Fixes
   1. This is probably the most important thing that you can do to help organize your finances. We’re going to teach you how to go through all of your assets and liabilities with a fine-tooth comb and figure out any opportunities you can go through to get rid of your debts faster.
2. Understanding Your Cash Flow and Creating Your Budget
   1. My personal favourite module is all about creating your budget, and figuring out different way to manage your cash flow moving forward so you can prioritize your spending towards what matters most (getting out of debt).
3. Creating New Goals and Tracking Your Spending
   1. Chances are that you got yourself into this debt because you didn’t track your money coming in and money going out. We’re going to help you create some realistic goals that you can stick to moving forward so you can get our of debt faster.
4. Using the Debt Crusher Tool
   1. We have this really amazing tool on our website that calculates how much you need to put onto debts to get rid of them by a certain time. This really looks into goal setting.
5. Organizing Your Debts and Understanding Different Paydown Methods.
   1. Consolidation? Debt Avalanche? Debt Snowball? If you don’t know what these methods are, it’s difficult to focus on one thing at a time. This module teaches you all about those different method.
6. Understanding Compound Interest and How Your Credit Score is Calculated.
   1. Do you know your credit score? Do you know how your credit card or line of credit calculates interest? If you don’t, this module is for you.
7. Financial Freedom
   1. Ahhhh yes. Finally, debt-free. Now what? This module will take you through how to become financially free and what the next steps are.

So, if you’re unsure of any of the module breakdowns mentioned above, it sounds like you’ll get LOTS of value out of this course. Come check it out. You can learn more about it here.

We’ve been in isolation now for what seriously seems like forever. But the time is flying by, isn’t it? Our coaching division has been working diligently with our clients to help them navigate through this time, and I’ve compiled a list of ways to help clients cut back and think outside of the box to stretch their dollars the furthest. Here are some that may help you if you’re finding that funds are tight.

Take This Opportunity to Clean the House and Sell Your Unused Stuff: Have you ever taken a step back and thought about how much stuff you have but never use? Craigslist, LetGo, Kijiji, Bunz, Facebook Marketplace are some of the amazing platforms out there that allow you to sell and buy used (if you need anything). Not only will it feel amazing to get rid of everything, but if you can free up some cash, it will help in the long run. One person’s trash really is another person’s treasure!

Do You Have Any Reward Points That You Can Use?: I don’t know about you, but I’ve been accumulating PC Points for years. I signed onto my PC Points last week and found that I had $500 worth of free groceries. WINNING! So, then I started to look at some of my other rewards points that I’ve been accumulating all of these years and found that I had $100’s of dollars in reward points. This is the PERFECT time to use those points if you find that you’re strapped for cash. Air Miles? Coffee rewards? Points from your bank? Sign onto your platforms and see what you have and start to use them if you need. Also take a look at unused gift cards!

If You Absolutely NEED to Shop: Have you Heard of Rakuten? We all have things that we absolutely need right now. Perhaps those necessities can be purchased through Rakuten. It’s a website that gives you cash back on purchases that you’d be making in-store anyways. And if you use this link, you'll get $5 cash back on your first purchase!

Take a Look at Your Insurance: Do you have insurance on two or more cars that you’re not driving right now? Time to call your provider and cut one of the monthly car insurance premiums. If you’re able to drive one car between a family, you might as well scrap the monthly cost for the time being. Have you read the fine print of your insurance premiums? Maybe you haven’t taken a look at your insurance policies in a while. There are a few really awesome websites out there such as PolicyAdvisor and PolicyMe that will provide you with a quote in minutes. You can compare them to the policies you currently have. Maybe you can save a few bucks every month by making the switch.

Get Rid of Those Pesky Monthly Bank Fees: I've always asked my friends why they're paying a financial institution a monthly bank fee to take out their own hard-earned money? Unless you actually need a service that a No-Fee bank cannot provide you with, this idea has never made sense to me. Bank fees typically range anywhere from $5-$30/month, but it doesn't need to be that way. There are TONS of no-fee banking options out there that also offer high-interest savings accounts. Here are a few of them; Simplii Financial, Tangerine, and EQ Bank.

I know that times are tough right now, but with a little more thinking outside of the box, I’m sure there are a few other ways that you can think of. Feel free to share them with us!