OK.  Let’s be clear – actually what I am inspired to do is actually start working on this blog and building my stats so they are not so hideously embarrassing.

• Alexa Ranking: 4,564,119
• Visits: 140
• Unique Visitors: 134
• Pageviews: 205
• RSS subscribers: 0
• Twitter followers: 4
• Traffic breakdown: 81 (searches) 50 (direct)

Yes, beyond sad.

But, looking on the bright side, it shouldn’t take too much work to get these statistics higher.

Can they go lower?  (Don’t answer)

There is not much to say except that despite this blog being a dream of mine for years now, I continue to neglect it.  Why?  Fear of failure?  Fear of success?  Probably a bit of both.  I will say that I have been following The Financial Blogger since he first started and every month I am green with envy at his statistics.  Yes, envious of Crystal as well.  But in the end, they deserve their success because each and every day they put the work in and rather than continue w/jealousy, I am going to flip that around and admire them.

It’s not as if I don’t know what I am doing.  Just that I don’t do it.  Don’t get me wrong – I’ve built a decent consulting business and make a decent living, but at the end of the day, I am paid once for my time and am not planting any seeds to grow my own blogs or build my own online business.  Time for change and change is good.

Both Crystal and Mike have inspired me to catch up and make my own personal contribution to the personal finance space.

Wish me luck!

I’m joining the challenge with the funny name:  Yakezie.

Why?

While I have found starting this blog incredibly rewarding, it has also become one of the most loneliest pursuits of my life.   In everything I have ever started or been committed to, there has been a community and/or colleagues to come along with me on the journey.  I am a social person and this blogging career is tough going!  It would be great to have a community of like minded bloggers and motivation to set and reach my blogging goals.

Could this be it?

I am a daily reader of http://thefinancialblogger.com and for months now I keep reading about this Yakezie Challenge.  I’ve been so busy setting up my blogs, improving my design, posting, and focusing on social media, that I didn’t feel I had time to figure out what this whole blog challenge thing was all about.  I wish I had investigated sooner!

Essentially it is a blogging challenge to join many other personal finance bloggers to improve traffic, build a community, and (my favorite) selflessly promote each other.  Since I am passionate about all three, I’m excited to get involved and hopefully make the grade to become part of the Yakezie network.

One of the submission requirements (besides writing this blog post and installing the Yakezie badge on my site), was to install the Alexa Toolbar to track my traffic.  The goal is to get under 200,000 in the Alexa rankings.  Yikes!  I am currently ranked 6,341.522.  Looks like I’ve got my work cut out for me.

A last requirement of the challenge is to post 2 – 4 times a week and as it is my personal goal to blog five times a week, this is a great motivator to keep me blogging.

…and I am super looking forward to promoting and learning about the other Yakezie members!

Wish me luck!

We recently had a salesman come to our home (invited – they contacted me by telephone) to educate us on the benefits of a dual energy furnace.  I won’t go into the boring details of dual energy, but the experience with the salesman was quite illuminating in itself.

He was friendly and knowledgeable (at first) and took us step by step through exactly what is dual energy and how much money we would save by converting to this system.  We currently pay $3,300/year with our gas furnace and an additional $225/month in electricity costs.   The cost savings appeared tremendous and the salesman repeatedly used the phrase, “no brainer”.

As a past sales person and knowing that Mr. X was paying attention to the details on this one, I was actually more interested in the company’s sales strategy.

There were several independent news articles proclaiming the benefits of dual energy (credibility), dozens of copies of past client contracts showing similar contract prices in our neighborhood (more credibility), and much scary math about how not converting to dual energy could cost us over $50,000 over the next 10 years (our fear).  He even had a handy form that would allow us to finance the $11,000 over 5 years at 8.39% = $230/month (convenience).

And then lots more use of the term, “no brainer”.

I knew we would not sign the contract on the spot because we have a rule that we never do that.  No exceptions.  If it is a good deal today, it will be a good deal tomorrow.  I have experienced the pain of, “buyers remorse” too many times to ever risk that emotional pain and regret ever again.

Which brings me to the part where when the salesman realized we were not going to sign on the dotted line, he let us know that, “he was not going to call us back because if we couldn’t see the value in the offer today, we never would”. He then went on to add, “You know the cost of this system is going up 20% next week, who wants to spend an extra $2,000?!”

Um, excuse me? (oh yes, we with little brains..)

My observations on the sales pitch:

• Continuous use of the term no brainer implies we have no brain if we do not sign.
• No one can predict the cost of gas or electricity over the next 10 years.  If they could, they would not be a door to door salesman.
• All things being equal, we could theoretically save $30,000 over the next 10 years in energy costs w/dual energy. I am not sure why the sales company believes they are entitled to $11,000+ of these savings.  In the end, it is all my money, and I am only willing to pay a fair price for furnace installation (and not: 30% of 10 year savings)
• I do not believe the price of the installation will increase by 20% in the next week
• I do not believe that financing the installation at 8.75% for five years is a no brainer because my monthly payments would be equal to my energy savings (I take borrowing and interest costs quite seriously)
• By pressuring us to sign the contract immediately, it only alerted me to the fact that there is probably another company offering the same service at a fraction of the price

We did not sign the contract.

But what if we did?

…and we woke up with the familiar feelings of regret and wishing we’d taken a few days to think about it and maybe get a second estimate.

The point of this post is to let you know that in the USA there is a 3 day cooling off period in which you are permitted to cancel any contract sold to you outside of the company’s regular place of business (as in: your home).  Many sales representatives will not tell you about this law (even though it’s been around since 1972) because it was designed to protect consumers from aggressive and manipulative sales tactics.

If you are in the U.S., you can read all about it here:  http://www.ftc.gov/bcp/edu/pubs/consumer/products/pro03.shtm

If you are in Canada (and in Canada it is actually 10 days – because we are so friendly and socialist!), you can read about it here:  http://www.cba.org/bc/public_media/credit/255.aspx

One of the pillars of personal responsibility with money is protecting your assets.  Please do not let pushy and unethical sales people into your home and manipulate you into signing agreements or contracts on the spot.  And if this happens, take the steps to get these documents canceled.  It’s your right as a consumer.

..and that my friends, is a no brainer.

After my recent post on fear of money, I thought I would write something a little more practical today.  Hoping that you will agree with me, a great place to start is how to organize your bills.

If you are anything like I used to be you might have a stack of bills stuffed in a drawer (or multiple drawers!); some overdue, some not yet due, some paid, but no  organization and no real system.

Bills are very important in the concept of money coaching because they represent a corporation or a utility’s faith and trust in us.  Think about it.  Many of us think bills are a hassle, an annoyance, money out the door, but take a few minutes to contemplate what they really mean.

We are standing up and stating, “In return for electricity, I will pay XYZ Electricity company for the amount of electricity I use”. And in return XYZ Electricity Company grants us credit and trusts that we will pay our bills in full and on time.

…and then sometimes we don’t.

Do you need electricity?  I do.

It was a long road but I am now at the point where I am happy to receive my utility bills.  I am thankful for my gas, my electricity, water; all of these great things that make my life much, much easier.  In return for the trust that my creditors give me, I commit to paying in full and on time.

Why? Two reasons.  First, it keeps the companies happy and willing to keep my lights on, and second, it does wonders for my credit rating.

OK, that is enough about that.

Organize Your Bills

I want you to take one drawer in your home office or kitchen, preferably next to your computer.  Nothing goes in this drawer except bills, a pen, your check book, envelopes and stamps.

I mean it, nothing else!

I would like you to make it a ritual that every day when you get your mail, you open every bill immediately.  Throw away (recycle!) the envelopes and any inserts that come with the bills.  Piles of bills always look scarier when they are all mixed up with torn envelopes and irrelevant information from your creditors.  Look at the bill.  Take the bill(s), walk over to the drawer and put them in the drawer.  That’s it.

Now I want you to use an online calendar (I use the Gmail Calendar; free and great), and I would like you to create a re-occurring weekly event called: Pay Bills. For this weekly event, schedule both an e-mail reminder and a pop up reminder for your computer screen.  Done.

Now every week when you get the reminders, sit down, open the drawer, and pay the bills.

If you are using online banking you can log in and take the steps to get them paid.  I personally schedule each payment in the future for 3 days before the bill is actually due.  (I despise late fees; wasted money I could spend on things I love like shoes and lipstick!)  If you are using your check book, write the checks now and post date them for the actual due date. If the company provided you with a return envelope, great.  If not, you’ve got envelopes and stamps in your drawer. Drop them in the mail box! Take the pen that is in your drawer and write PAID (and the date) on your portion of the stub.  Stick the stub in a file folder marked: Paid Bills.

I cannot stress to you how much better you will feel if you incorporate this system.  You should feel like a weight has been lifted off your shoulders; no more waking up in the middle of the night trying to remember if you missed a payment or can’t remember how much you paid or when it’s due.

This process is once a week and it shouldn’t take more than 10 minutes.  

Your creditors will love you, your credit rating will love you back, and you will be sending a strong message to the Universe that you respect money and can be trusted with more of it.

…and that rocks.

Wow.  Where to start?  Money is so deeply ingrained in our society and can have such an emotional charge, that it’s not hard to see how having a fear of money would be understandable and somewhat rampant.

Many of us are brought up with negative childhood experiences that we sabotage ourselves when it comes to money.  This self sabotage leads to further negative experiences (excessive debt, bounced checks, unpaid bills, bad credit, foreclosures, even bankruptcy) that the cycle continues and it can be tough to dig yourself out.

The good news is that, like with any fear, we can learn to manage our financial fears and learn to have positive experiences.  As we learn and grow with change, the fear will lessen until one day we wake up and it has become a thing of the past.

Moving Past Fear Of Money

We cannot get to where we want to be unless we know where we are now.   The first step is taking control of your money and while this can be a tough emotional experience, a great place to start is to forgive yourself for any past mistakes.  I have found through my money coaching clients that past issues with debt or bad credit become distorted in our minds and cloud out the positive accomplishments we have with managing our finances.

If we can accept that the past is the past and that today is a new day, we allow ourselves a fresh start.  And you deserve that.

Where to Start?

I am not going to bombard you with worksheets or homework assignments that will only further overwhelm you.  For today I would just like you to think about what a few of your beliefs about money are and where they might have come from.

What did your parents teach you about money?  Did you grow up rich?  Did you grow up poor?  Was money talked about in your household?  Was it used in place of love or possibly withheld as a form of power?

These are just questions to get you started.  Much of our beliefs are unconscious and even just start starting to question them can bring about change in the choices we make.

Knowledge is power.

My TD Visa statement came in the mail yesterday and as I caught site of it in the mail box, I was once again (like every month) overcome with a sick feeling in my stomach.

Even though it has been 10 years since I have not been able to pay my VISA bill in full each month, every time it arrives (and arrive it does; month after month!), I continue to have this horrible fear at it’s appearance.

Why?

There are two reasons for this.

1)  I have no idea how much it is.

This is true and for me it always has been.   I use my VISA for convenience – kids need new shoes for school? VISA.  Washing machine repairs? VISA.  Dinner out with friends? VISA.  It is far too convenient and far too easy.   What I do not do is keep track of what I am spending and thus, it is a constant surprise what the final monthly balance is.   Ugh.

2) Old fear from the past

For almost 15 years, I used my credit cards in much the same way, but I did not have the income to support my spending.  As such, no matter what the amount due each month, I knew I would not be able to pay it.  There were months that even the minimum balance due was beyond my means.  This is not a good feeling.  And 15 years is 180 credit card statements.

That is a lot of fear and self loathing.  Like I said: Ugh.

Credit Card Coach: Things Are Going To Change

I cannot in good faith (and that is all I have with my readers!) coach you to track your spending and manage your fears around debt and money unless I take these actions myself.

So here is my promise to you:

Starting today I will record every one of my credit card purchases.   Whether this is with a small notebook in my purse, an iPhone app, or with http://mint.com, I am not sure.  Whichever is the most convenient (laziness is a close friend of mine..) will be the hands down winner.   I will also work with affirmations and visualization to eliminate this fear of the monthly credit card statement arrival.  I’m guessing it will be awhile before I feel actual joy at the TD VISA statement in the mail box, but let’s start with acceptance.

Shall we?

Stumbled across a pretty cool article in the Montreal Gazette over the weekend on a relatively new concept of hiring a Divorce Coach. As I am a huge supporter of having a Life Coach in your tool belt, I can see how this would be a great idea.

While I most definitely hope I never face divorce (of course, who am I kidding – I am not actually married!), even I with all my knowledge of my own finances, properties, assets, mortgages, bank accounts, and debts, I would consult with a divorce coach in Montreal if faced with separation.

Why?

I just want someone on my side when I am going through a difficult time.  I want someone with check lists and knowledge of every single thing I should know about the divorce process, and a lawyer isn’t always going to provide this service.  Plus – I’m guessing – a divorce coach at $100 – $200 an hour is going to pay for herself 10x over if we attempt to ask our attorneys for the same service at $400 – $500 per hour.

The point of this money blog is to have women better understand their financial situation and empower them to feel more comfortable and in control of their finances.  While in a perfect world you would have all this knowledge before any separation, we all know this world ain’t perfect.

Taking control of our finances can already be a serious emotional roller coaster and adding divorce into the picture?  Yuck.   Right smack in the middle of divorce negotiations is not the time to be learning about money or making big decisions about child support, assets, RRSP accounts, spousal support – you get the idea.

A divorce coach can help with this.

While I really like the idea how in the article the Coach states that she is not a friend (ethically it would be wrong to bill someone $100/hour for friendship!), I can see how the advice and guidance you receive would create vasts amount of support and a foundation to manage the already emotional difficulties that come with separation.

So don’t be shy.  You have one chance to secure your settlement before you sign your name on that infamous dotted line. Regardless of the circumstances of your divorce – even amicable, reach out and get the help you deserve.

Good luck!

Hello! Welcome to The Money Coach (dot com!) My name is Nanci Murdock and this website has been a dream of mine for several years now. I’ve taken a few detours along the way to get it started, but am here now (and just in time for RRSP season!).

This is my inaugral post and so it is hard to send you anywhere on the site.  If you want to know more about me:  Nanci K. Murdock, CFA <– you can just click that link.

There are so many issues around money and I would like to use this website to explore and discuss those issues as a community.

Money Management

On a practical level, I will be providing many, many posts on the benefits of savings, good credit, investments, and all that good stuff pertaining to money management.  Don’t worry!  It is not going to be scary or all technical.  Just down to earth simple advice about how to get control of your financial life so it does not control you.

And if you are looking for ideas on saving or frugality, you’ve unfortunately come to the wrong place.   While I do not believe in waste or spending money for the wrong reasons, I also do not believe at all in saving  for the sake of saving.   Money is like energy – it needs to be in constant motion and hoarding it is just bad news.   (containing it wisely for the future is smart, but much  more on that later.. )

If you are looking to skip that daily latte, add water to stretch your dish soap, or reuse dryer sheets, there are plenty of websites out there but it won’t be this one.

Core Beliefs

On another level, I am very excited to talk about money and how our core beliefs (stuff from childhood) influence how much we have, how we spend, and whether money is a positive or a negative in our lives.  I have been poor; I have been wealthy, and now I am somewhere in the middle.   Much to write about on these issues, and I hope you will join me in the discussion.

So welcome!  If you have the time, please introduce yourself in the comment section.

All the best,

Nanci