6 Steps to Financial Stability

 

Most of us wish we were rich, but financial stability might be even more important. It’s not the inability to buy a mansion that makes people unhappy. Rather, it’s the inability to move beyond living paycheck to paycheck. If you’re not happy with your finances, it’s likely that greater financial stability will have a major impact on your sense of well-being. 

Follow these steps and enjoy financial stability in your life:

1. Understand your income and expenses. Track every cent you spend and make for at least a month. You’ll be surprised where all your money is going. Seek to move in a positive direction with your spending.

• It’s important to know where you are now. List your assets and debts.

• How much can you cut back on your current spending?

• What can you do to increase your income? A little more money each month can add greatly to your financial stability.

2. Eliminate high-interest debt. The average interest rate on credit card debt is nearly 15%. That’s better than the best investor can average in the stock market. High-interest debt is like a hole in your bank account that never stops leaking.

• When the high-interest debt has been eliminated, shift your focus to all the other debt that’s still left.

• Imagine how much easier your financial situation would be if you didn’t have any debt. It doesn’t require a lot of income to live well if you’re debt-free.

3. Build an emergency fund. Experts recommend maintaining an emergency fund worth 3-6 months of expenses. That’s a challenging figure for most families. However, even just $1,000 can remove a lot of financial pressure. This will make the inevitable trip to the emergency room and the unexpected car repair much easier to absorb.

4. Save for the future. Contribute to one or more retirement accounts on a regular basis. Just $100 invested each month can eventually grow to over $100,000 in 30 years. Speak with your human resources department at work. They’re the experts regarding your benefits. If you’re self-employed, you still have several excellent options, too.

• A little bit of money can grow into a lot. Avoid becoming discouraged by your current cash flow situation.

5. Think before you purchase. Impulse purchases can have a long-lasting negative impact on your savings and financial stability. 

• Set spending limits and stick to them. Before making large purchases, take a few days to think them over. You’ll often find the urge will go away if you can put some space between the urge to spend and the act of pulling out your wallet.

• How many big purchases have you made in the past that turned out to be disappointing? It’s a common phenomenon.

6. Set goals. Everyone knows that setting goals is important, but hardly anyone does it. Set short-term and long-term goals. Set aside a few minutes each week to review your progress. By reviewing your goals and your progress on a regular basis, you’ll find that achieving them becomes much easier.

You can achieve financial stability by making incremental moves in the right direction. Spending less and saving more is the name of the game. Get started today by taking a small, but significant, step. Regardless of your starting point, you can achieve financial stability!

How would your life be different if you no longer had to worry about your finances? It’s been proposed that happiness is what’s left after all the negative aspects of your life have been removed. Take action to resolve any financial challenges you might be facing today, for a brighter tomorrow.

Avoid These Common Budget Busters and Increase Your Savings

 

If the balance in your savings account isn't growing fast enough, a typical budget-buster might be to blame. Sadly, you're not alone in missing your financial goals. According to a survey conducted by Highlands Solutions, 63% of Americans have no savings and live paycheck to paycheck! And 53% o Canadians live paycheck to paycheck, according to a 2019 survey by Refresh Financials. Are you one of these? 

 

Thankfully, there are steps that you can take to get your finances back on track.

 

Use these strategies to stick to your budget and achieve your financial goals:

 

1.     Avoid impulse shopping. If impulse shopping is your weakness, resist the temptation.

 

·       If you go shopping for a needed item, take a responsible friend with you to help strengthen your resolve.

 

·       Make a list before you shop and then buy only the items on your list.

 

·       Leave your debit and credit cards at home and only bring enough cash to pay for the needed items.

 

2.     Seek to understand what triggers your overspending behavior. For example, if you find that you're more tempted to abandon your budget when you've had a difficult day, only go shopping when you're well-rested and under less stress.

 

3.     Identify specific items that are hard for you to resist and avoid. If there is a particular store or website where you consistently seem to go over your planned spending, find new, less tempting locations to shop.

 

4.     Get organized. Adopt a new method of organizing your important papers and receipts if "forgotten bills" seem to constantly surface and derail your spending goals.

 

·       If you forget to pay a bill, you may have to pay a late fee and interest. Those extra charges can add up quickly!

 

·       Set reminders to cancel memberships and other subscriptions before they auto-renew to avoid paying for services you no longer use.

 

5.     Shop for better rates. Just because you're satisfied with your current service provider doesn't mean that you shouldn't periodically shop for a better rate.

 

·       Every few months, review your expenses and seek ways to reduce the amount that you pay for many standard services, such as your telephone bill and car insurance.

 

·       When you contact your provider, ask if you'll save money by bundling services or cut back on features that you seldom use. While your provider may not reduce your bill, it doesn't hurt to ask.

 

6.     Watch for unusual spending. Periodically review your expenses and see if you can identify an area where you frequently overspend. Most of us typically overspend in a specific category.

 

·       Challenging categories for most folks include clothing, entertainment, transportation, travel, food, and housing.

 

·       Once you've identified a category of expenses that seem to break your budget, seek ways to make smarter, less expensive choices when you buy things in this category.

 

·       Reducing your spending in a specific category can be very challenging. For example, if your housing costs are eating up too much of your budget, your only solution may be to move to a smaller or less expensive location.

 

7.     Get outside advice. If you find that you're frequently over budget or have difficulty meeting your financial goals, seek professional help.

 

·       Most accountants and financial planners can offer sound advice to help you learn how to plug the holes in your budget and gain control of your finances.

 

·       You can find lots of free and low-cost advice on budgeting and financial planning online.

 

·       Many organizations, such as churches and local chambers of commerce, offer free or low-cost credit counseling and financial planning courses to members.

 

Becoming aware of common budget busters and selecting a strategy to deal with them can help you stick to your budget and increase your savings.

How to Choose a Financial Professional

Choosing the right financial professional is very important. Avoid the mistaken belief that all financial professionals are equally skilled and capable. Abilities and ethics vary from one person to another. It’s your money, so ensure that you’re protecting it and getting the best service possible. Take your time and find someone that fits your personality and needs.

 

Choose wisely when choosing a financial professional:

 

1.     Ask friends for referrals. Ask those you trust for recommendations. Avoid following anyone’s advice blindly. These recommendations only serve as a starting point for further research.

·       Be wary of familial connections. If your neighbor recommends his brother, you might not be getting the best advice.

 

2.     Do your research. With all the popularity of the internet, it’s quite easy to research the reputation of any financial professional. Whether you’re looking for a financial advisor, tax attorney, or accountant, the internet is always available.

 

·       Contact the Better Business Bureau. See how many complaints have been filed against your person of interest.

 

3.     Ensure that you’re shopping in the correct aisle. A particular tax expert might specialize in working with farmers. If you’re not a farmer, that’s probably not the best option for you.  A financial planner that specializes in working with teachers might not be the best choice if you’re a high net worth individual with complicated finances.

 

·       Be aware that no financial expert is the best choice for every type of client. Find someone that’s an expert at addressing your needs.

 

4.     Check credentials. For example, certified financial planners and chartered financial consultants have different certifications. Accountants may or may not have a CPA. Find out what credentials your prospective expert has and verify them. Ensure that you understand what each of the credentials means.

5.     Check on the price. How are you charged? A percentage? By the hour? By the job? Determine how the company generates its income. Is this acceptable to you? How does that compare to the competition? Is this person worth the cost?

6.     Determine if you’d be working with that specific person or anyone that’s part of their team. This may or may not matter to you, but it can be nice to develop a relationship with someone that understands your needs and your finances more intimately.

7.     Tailor questions to the specific field. For a financial planner, ask to see a sample of a financial plan. You might get a one-page summary or 20 pages of charts and graphs. Which appeals to you more? What is their investing philosophy? How often will he communicate with you? By what means?

8.     Follow your gut. Ask yourself if you could work effectively with this person. Do you trust them? Do you feel confident about working with them, or would you be lying in bed at night worrying?

 

·       Follow your intuition once you’ve narrowed down the field to a few suitable candidates.

 

9.     Review your choice each year. Keep your eye on the new addition to your financial team. At least once a year, evaluate your decision to hire them. Are you pleased with your choice? Would you like to find someone else instead? You have the right to change your mind and go in a different direction.

 

Spend the necessary time to find the right financial professional for you. Determine your needs and then find the best person to fulfill them. Ask your friends and family for referrals and then begin the research process. It’s worth the effort required to find the best fit.

Taking Charge of Your Credit Score

Good credit is critical. Banks won’t give you a loan if you have a bad credit score. Credit card companies will reject you, and insurance companies may charge you a higher rate. If you have a low credit score, the utility company may require a security deposit before they’ll turn anything on.

 

Unfortunately, it’s pretty easy to hurt your credit score. Something as simple as being late on a loan payment can do serious damage to your score. If your actions have lowered your score, you’re not alone. Millions of people have experienced the same thing.

 

The good news is that you can repair and improve your credit score. You’ve probably seen advertisements for credit repair companies, but the truth is these companies can’t take any actions that you can’t take yourself. You don’t need to hire a company to fix your credit. You can do it on your own.

 

In this guide, you’ll find a step-by-step process to follow to both repairs your credit and increase your overall credit score.

 

This isn’t an overnight process. Depending on how low your score is, it can take some time to improve it. But if you follow these steps, your score will improve. Don’t get discouraged if things don’t turn around right away. Keep at it because, in the end, it will be worth it.

Understanding Your Credit Score

● There are a number of specific things that affect your overall credit score. If you don’t pay attention to all of them, you can unknowingly hurt your score. Your credit score will range between 300 to 850 and represents how likely you are to pay back the money you have borrowed.

● There are five factors that determine your score. In order of importance, they are:

1. Payment history. Paying bills on time is really important for your overall credit score.
2. Credit usage. Credit usage is how much of your available credit you’ve used. A low credit utilization rate is better for your credit score. 
3. Credit mix. Typically, it’s better to have experience with different types of credit than with just a single category. 
4. Age of accounts. Generally speaking, the longer you’ve had credit, the higher your score. 
5. Credit applications. When someone examines your credit record to determine whether to give you credit, it’s called a “hard inquiry”, and too many hard inquiries can lower your score. 

● It’s also important that you understand the different types of consumer credit available to you. There are four types of credit: 

1. Revolving credit (credit cards)
2. Charge cards 
3. Service credit (utilities, cell phone bill)
4. Installment credit (loans)

Step #1: Examine Your Credit Report

● Your credit report contains everything that affects your credit score, including all the things pulling your score down. The first step in repairing your credit is to know exactly what’s on your credit report. You can get a free yearly copy of your credit report from AnnualCreditReport.com. 

● In the United States, there are three different credit bureaus: Equifax, Experian, and TransUnion. The credit report from AnnualCreditReport.com will contain your credit score at each of the credit bureaus.

● Once you’ve obtained your credit report, you need to read it closely. On the report, you should see:

○ Personal information

○ Credit information

○ Public record data

○ Hard credit inquiries

● As you read your report, look for the following information: (You’re going to approach each of the above situations differently, so you may want to use different colored highlighters or pens to flag each type of scenario.)

○ Errors

○ Past due accounts

○ Current credit accounts

● Reading your credit report for the first time can be overwhelming. If you’re feeling like this, remember that you’re only going to be taking one step at a time. For now, just focus on highlighting all the important information. 

Step #2: Dispute Errors

● If you think that any information on the credit report is incorrect or incomplete, you have the right to dispute it. Credit disputes can be made online, by phone, or through the mail. You should receive instructions about how to file a dispute when you order your credit report. 

● Errors on your credit report happen for four different reasons:

○ Creditor mistake

○ Collection agency error

○ Stolen identity

○ Existing account compromised

● If you believe your identity was stolen, it’s critical that you take immediate action. The longer you wait, the more fraudulent activity can take place on your account. The same goes for a compromised account. You should contact the appropriate parties as soon as possible. 

● If there are errors on your report (not fraud), there are a number of ways you can dispute them. Filing online is the quickest and easiest way to do it. The problem, however, is that you don’t have any evidence or a paper trail regarding your dispute. This is also the case when you file by phone. 

● Filing by mail has a few distinct advantages:

○ You can include a concrete proof.

○ You have a paper record. 

○ Sending a dispute letter via certified mail ties your claim to a specific date.

● When filing your credit dispute, include the following:

○ A copy of your report (highlight the disputed item)

○ Proof that supports your claim

○ A concrete, explicit request that the erroneous information be either corrected or removed

● After your dispute, one of two things will happen: 

○ Successful dispute. All information and parties will be updated appropriately.

○ Unsuccessful dispute. No change will occur to your credit score.

● If your dispute is unsuccessful, you do have one further option: file a complaint with the Consumer Financial Protection Bureau (CFPB). After you file your complaint, the CFPB will work with the credit bureaus to attempt to resolve your complaint. 

Step #3: Address Accounts that are Past Due

● The biggest factor in your credit score is your payment history, making up 35%. So, after taking care of any errors on your credit report, you’ll want to start working on past-due accounts. 

● When one of your accounts is more than 180 days past due, it’s considered a charge-off. Charge-offs are really bad for your credit score and you want to do whatever you can to keep them from going on your credit report. The good news is that your creditor may be willing to negotiate with you. 

● Once your charged-off account is fully paid, your credit report will show a $0 balance for that account. However, it will still show up on your credit report for seven years.

● In addition to past due and charged off balances, you must handle accounts that have been sent to collections. Like with charge-offs, your credit report will reflect these balances for seven years. 

Step #4: Bring Down High Balances

● After your payment history, your credit utilization is the second highest factor in your overall credit score (about 30% of the total). Credit utilization is the percentage of available credit you’ve used.

● This means that if you have really high balances, your credit score will be brought down. Ideally, your credit utilization should be below 10%, but if you can get it below 30%, that’s a good starting place. 

● Your loan balances also affect your credit score. The higher your balance, compared to the original, the more it hurts your score.

● Which is more important, credit card balances or past due accounts? Because your payment history is a bigger factor in your credit score, you should focus first on getting your accounts current.

Step #5: Build New Credit

● You also want to add positive credit data to your credit report. If you consistently do things like making on-time payments, your credit score will go up. So, how do you get new credit? One simple way is to get a new credit card, make purchases, and then make payments on time. 

● You can apply for a credit card from one of the major companies. When you search for a card, look closely at:

○ Recommended credit score

○ Annual fee

○ Annual Percentage Rate (APR)

● If you don’t get approved by a major credit card company, you have a few other options. 

○ You can apply for a “secured” credit card.

○ You also might consider getting a retail credit card, such as a Walmart or Amazon card (or another store you prefer). 

Other Tips for Building Solid Credit

● In addition to getting a new credit card and using it to build up your credit, there are a number of other specific tactics you can use to improve your overall credit score. 

○ Team up with someone who has good credit and good payment history. Get added as an authorized user on one of their credit cards.

○ Keep older credit cards, even if you don’t use them much anymore. Having an older card on your credit report extends the total age of your credit.

○ Enroll in the Experian Boost program. Cell phone and utility payments can be added to your credit score.

○ Get a secured loan. You deposit a set amount into a bank account and then can borrow against the deposited amount.

○ Look into non-profit lending organizations. 

Healthy Financial Behaviors

● If you don’t have healthy financial behaviors, you’ll end up sabotaging your efforts to repair your credit. Here’s what you need to keep in mind.

● Debt-To-Income Ratio. Your debt-to-income (DTI) ratio is your total monthly debt divided by your gross monthly income. The lower your DTI ratio, the better. For example, if you’re applying for a mortgage, you usually need a DTI ratio of less than 43% (most lenders really want to see below 36%). 

● Budgeting. A budget helps you effectively manage your finances. If you don’t have a budget, you may not have enough income to cover monthly credit payments. 

● Comparison Shopping. Different lenders offer different interest rates and fees. Compare different lenders against each other and go with the one that offers you the best deal. 

● Fraud Protection. It’s absolutely essential that you work hard to protect yourself against fraud. Keep a close watch on your credit statements for anything that looks suspicious. If you see anything, immediately contact the credit card issuer. 

How to Negotiate With Your Credit Card Company in Good Times and Bad

 

There are times when you may want to negotiate with your credit card company. Perhaps you’ve been shopping for the best rates and discovered that your company is on the high end of the spectrum. Or maybe you’ve fallen behind on your payments and need all the help you can get to lower your debt.

Either way, you’ll be glad to know that many credit card companies are open to negotiating.

These tips provide helpful information about negotiating with your credit card company. Your chances of getting more of what you want from your creditor are greater when you prepare ahead of time and have all the information you need in front of you.

Negotiating in Good Times

Follow these tips when you have a good credit score and you’re in good standing with the credit card company:

   

1. Have all your information in front of you. Know your credit card number, balance, current interest rate, and the amount of your monthly payments.

2. Speak clearly and calmly at all times. Avoid raising your voice with the person on the other end of the phone. If you have difficulty with them, ask to speak to their manager.

3. Ask for the appropriate staff member. Speak with someone who has the authority to grant your request. For example, if you want to raise your credit limit, speak with someone who handles credit limits. If you want to lower your interest rate, speak with someone who is allowed to do that.

4. Ask for special promotions. Since you’re a good customer, you can ask them if they can give you a promotion or extra points on your credit card. Credit card companies often give extra rewards to their good customers, so be sure to ask them.

5. Request an interest rate decrease. When you have good credit and standing with the company, they may certainly consider lowering your interest rate. Do your homework to compare other credit cards beforehand and don’t be shy about letting them know if they charge more than the norm.

Negotiating in Challenging Times

Use these negotiating tips when you’re behind on your payments:

1. Get your credit information together. Have your last bill out when you place the phone call to them. Be prepared to be on hold for a time if necessary.

2. Ask to speak to the person who makes payment arrangements. The person you need to speak to may be a manager. Explain that you are interested in making payment arrangements to satisfy your debt.

3. Stay calm when you’re telling the person your situation. Explain that you’re having money issues and wish to work out a plan. Tell them what happened to you to cause you to fall behind on your payments.

4. Discuss decreasing the amount of interest that you owe. Ask them if they can reduce or eliminate the interest that you owe. Explain again that you want to honor your commitment to pay your debt, but the high interest is exacerbating the challenge.

5. Offer to pay a portion of your balance as a final payment. Ending the relationship would mean that your account would be closed. They might accept your offer, knowing that getting something is better than getting nothing at all. This is especially true if you’re considering bankruptcy and tell them that you may be going that route. 

6. Ask them to remove their negative information from your credit report. Sometimes, they will agree to this. Ensure you understand their terms and get the agreement in writing before you pay them.

7. Thank them for their help when the call is over. Be kind and grateful when you’re finished speaking with them. 

Learning how to negotiate with your credit card company can benefit you in numerous ways. For greater success, take the time to prepare for your negotiations and use these tips in your discussions.

Enjoy a Positive Cash Flow Even if You Lack Money Management Skills

 

Are you being confronted with financial challenges? You're probably feeling discouraged because you haven’t been able to keep a positive cash flow. This is a common challenge faced by many, but it is especially difficult for those who lack good money management skills.

 

But by no means is the absence of money management skills a financial death sentence! In fact, there's so much help out there today that you should be able to turn things around in no time.

 

The question is where to start!

 

First, it’s important to come to terms with where you are from a cash flow perspective and accept the situation for what it is.

 

Then, practice these strategies and your cash flow challenges will be a thing of the past:

 

1.     Make a budget. Following a budget is the golden rule of maintaining a positive cash flow.

·       At the end of each month, plan your spending. Other than the occasional unexpected expense, you'll probably have a good idea of what you'll be doing with your cash for the upcoming weeks.

·       Be sensible with budgeting and focus on putting money aside for your essentials.

·       Remember to account for even the little expenditures that are probably having more of an impact than you think! Get help to prepare a budget for free!G

2.     Avoid impulse buying. Impulse purchases often keep you in a cash flow bind! They’re probably one of the main reasons you haven’t been able to manage your money in the past.

·       Instead of just giving in to an impulsive purchase, give it some thought. Is this purchase life-changing? Can I survive without it? Is it something I can wait for until next month?

·       Consider putting a line item in your budget for impulse purchases. Of course, it's wise to make it a smaller, manageable amount, but at least you'll know it's there for that purpose.

·       Discipline yourself to stay committed to the mission at hand. Do you want positive cash flow? Establish that desire as a priority in your life.

3.     Set savings targets. Decide on a certain amount of money to save each month and stick to the plan. The key is to pay yourself first.

·       The minute you collect your paycheck, take out the savings portion. To help yourself out, put it somewhere that's not easy to access.

·       After a few months, challenge yourself by setting higher savings targets. If you've been successful with the first target, you can surely be successful with a slightly higher one!

4.     Maintain a positive state of mind. It's a great idea to affirm that you get from the universe exactly what you put in.

·       Avoid allowing a financial slump to get you down. Look at it as a learning experience and move on.

·       Surround yourself with positive people and experiences. They help train your mind to keep everything else positive.

 

It's important to realize that a positive cash flow is a true and unequivocal reflection of your life! Rest assured that practicing healthy life practices can also put you on the path towards financial wellness.

 

Why not get started today?

How She Got Rid of $80,000 in Consumer Debt

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Let's Talk 

My name is Shakarah Campbell. I was born and raised in St. Elizabeth, Jamaica. I came to Canada when I was 13 years old in 1993. My mom is a single mom. She took three of us here in one shot.  I went to York University. I did cultural anthropology because I was interested in learning about different cultures. I figured if I could do anything for pre-law,  I'll just learn about different cultures and see what the difference was after completing university. I wasn't sure what law I wanted to study. I know for sure,  I did not want to get into family law or criminal law, which, was two of the major ones that are out there. 

I took Ontario Student Assistant Program (OSAP), and six months after you come out of university, you have to start paying it back. So I decided to go and work. While I was working, I came across Courts and Tribunals Administration, but I wanted to do the immigration aspect of it. So I went to Seneca College, where I did a two-year diploma and studied court and tribunal administration from there. I did what is called field placement at the Court of Appeals for Ontario. I went to the Court of Appeal, and I never left. I've been there for 11 years now. I'm currently an Appeal Scheduling Coordinator. I do backup the Civil and the Criminal Scheduling Coordinator, but I have worked in almost every court area. So I am very familiar with all of it. My actual title is the Inmate Appeal Case Management Officer.

Dr. Sackeria Sunshine: What challenges did you have to overcome to reach this point where you feel so passionate about helping others?

Shakarah Campbell: So interestingly, for finance, I did not want to do anything in it. I hated Accounting in High School. Didn't understand it! Math was not my most vital subject. I actually love English and History. I was in a long-term relationship for seven years. We were engaged. We never got married, but during that time, I owned a home with my mom, which when we got engaged, the house got sold, and the money from home, I actually was investing it for our future. So my fiance being from the Dominican Republic, had some family issues. His mom had to have surgery at one time. His father had to have surgery at one time, and his sister had to have surgery. So, of course, I figured, you know what, we're a family, we're building a family. 

We're going to be together. I actually invested in paying for that. It turned out that I ended up having an $80,000 debt. Now a lot of you were like: "Oh my God, that is scary". Yes, it was for me. And it caused me a lot of headache for the little time because the one thing I've always been told coming here is that you save, which I am not a frivolous spender. I do save, coming from a single-parent household. I understand what that was. But there was one thing about me. I was always a giver. So anybody back home, whether it was in Jamaica or even with his family in the Dominican Republic, I would be helping them, like I was sponsoring children and stuff for kids that needed food, and stuff like that because I was helping. What ended up happening is that it got out of control where the debt grew faster, and later on, I would probably be able to get a chance to explain how your debt grew faster than you actually realize, and can get out of control if you're not paying attention to what's going on. 

I was taking money from my savings, from my RSP. And for those who don't know RSP, they're registered, which means that the government will tax you if you take money out of it. And that's where I ended up in trouble where I was taxed and had to pay that back because I took that money and the government's taxes. So I ended up making a consumer proposal, which actually helped me a great deal.

For those of you who are not aware, but when you do a consumer proposal, it doesn't totally ruin your credit. However, keeping your debt can ruin your credit in that way. But the consumer proposal doesn't, you have three years in which to pay it off. And then another three years you get to start rebuilding your credit, but you don't have to wait the full three years to rebuild your credit. And you should not, because you can start to rebuild your credit within a year.

Dr. Sackeria Sunshine: Amazing. What is your favorite book on personal finance, or what's a book that you've read that really helped you on your journey?

Shakarah Campbell: I read a book that really helped me on my journey: Rich Dad, Poor Dad by Robert Kiyosaki. I love the cash flow quadrant. When I started to read that book, it helped me realize just the difference between your money as an asset and your money working for you. So even something as simple as our home, which we would think like "Oh, I have a home, I have an asset." Your home is actually a liability if it's not making money for you. Learning something like that was very interesting. 

Also, 177 Mental Toughness Secrets by Steve Siebold is another book that has impacted my mindset just in the difference between middle-class thinking and world-class thinking. That resonates with me because I love how he helps you pretty much to get from that middle-class thinking into world-class thinking. Also, Saving Your Future because it just teaches you basic financial principles.

Dr. Sackeria Sunshine: That is amazing. I am reading Think and Grow Rich by Napoleon Hill. But there's also another book that Steve Siebold and Tom Mathews wrote: How Money Works: Stop Being a Sucker. And if you are reading this and you want a copy of the book, it costs like $16 on Amazon, but I give them out FREE. 

It was published in 2019. And I came upon it recently, and I then just decided to buy a lot of them because the concepts that we have been learning are really plain and simple in the book. And I want to help individuals get their hands on those crucial concepts so that they can start the journey to financial freedom. Education is first! Financial literacy is essential. So again, if you want a copy for yourself, you really want to get the education in a straightforward form, something that you can have with you. I believe in books. They have transformed my life. Read it! But just don't read it: you need to apply it. 

Now, Shakarah, let me ask you what financial concepts had the most impact on you.

Shakarah Campbell: That's a great question. So one of the things I would say for those of you who heard when I said that my debt compounded is the rule of 72. So for those who don't understand what the banks use, the power of 72 on how your interest goes. So ty6ake whatever you're paying for interest on your credit card, example 18% divide that by 72, every four years, your debt can compound. Or if you have a certain amount of money in the bank, every four years, it doubles. So that's what happens. And that's what a lot of us don't know. I was generous with using 18% because we all know that your credit cards are usually 20% or more. So imagine that if you have debt that you're not paying and the interest rate on it doubles.

The other thing that I learned in this business was the X curve. So that is pretty much how your wealth will decrease based on your age. So when we're younger, and I will say this, because I had term insurance, which everyone kept telling me, oh, you have term insurance, don't worry about it. When I would be 50, this is when I would have to look at getting more insurance because you're thinking: "Oh, I'm getting older, I have a family, I'm looking forward to retiring at 65." So I would have insurance, but no, because it's term insurance, it expires in 30 years either I have to renew it or cancel it. Well, as you get older, insurance gets more expensive. So when I was 50, I would not have been able to afford my insurance because I would have been paying over $1,000 a month in premium. So I do like the X curve for that, where we will show the family how they can save now and plan for later and how their expenses do decrease in later years. But if you put proper savings in place, now you'll have it for your future.

And then the one thing that I would not have thought about, which impacted me a lot, was the financial foundation. So think of your financial foundation as a five-layer cake. I always thought your investments would be the most essential thing to have in place first, but it's actually not! It's proper protection. And if there's one thing, I was fortunate that I could work / transition from home while we are going through COVID. During the height of COVID, I did not have to go to the office. And, I would have thought that investment, as I said, would be the first thing for your foundation, but it's actually proper protection. So it's to protect your income, to protect your family. And if there's anything we've learned during COVID, we do need to have the proper protection in place to protect our family and our income. We are pretty much building our future and also our family's future.

The one thing that I found is that for us, the majority of people were middle-class and we believe that formal education is the answer to acquiring wealth. Yet, when you look at it, many people who are educated, don't have any wealth. When I was in school, I wish I would have learned this at an early age because I've been working since I was 14. When I came to Canada the next summer, I was like, I'm bored. My mom's like: What do you want to do? And I'm like, can I work? And I was able to get a job. So I was working when I was 14. So I could have saved, invested, and be enjoying compound interests.  

Dr. Sackeria Sunshine: Exactly! For the parents out there, I have a special message for you. You need to start looking at getting insurance and investments for your kids from now. Listen, a lot of us are brilliant and broke. Like I was! I have a doctoral degree and plenty of other certifications on the wall, but I was bright and broke. And one of the first things that I did in helping to set the record straight and ensure that the generations to come don't have to be poor. Listen, I went into this world and went from a family of poverty. I want to leave this world with a family of prosperity. Come on now! Your family can come from a poverty family, but you can leave this world with a family of wealth. And so, I decided to get insurance for my son because one crucial concept is that the younger you are, the less costly insurance is. I've heard of some families, as soon as the child is 15 days old, they get insurance for little or nothing, add investment to it, and by the time the child reaches like 18 or 20, they accumulate millions depending on how much they invest in that policy. 

Dr. Sackeria Sunshine: What's your personal vision, mission, and purpose?

Shakarah Campbell: So one of the things that I have changed a lot is that I am actually working on my mental toughness because I will tell you many things I have eliminated myself in my own mind saying, "I don't know if I can do this." I've always loved the law and that I'm comfortable with, but doing finance, that's very new to me. I look at it as I'm like: What if I can't help anybody? But one of the things that I've learned is that just giving people information, and if you don't know it, you can always find people who will help you. People in this business will help you. We can reach out to each other. 

One of the things that I want to do is make a difference for a family by helping them to build wealth. "You don't have to come from a rich family for a rich family to come from you." My vision for this business is to be able to build a big business that provides financial education, gives individuals and families comfort and peace of mind. 

Especially for our black community, financial education and financial literacy are not something that we have a lot, especially for immigrants coming here. So I want to reach out to help our community and help everybody intern, especially within the black community. So we have that financial education because I know from a lot of my friends, they're like, oh, well, I want to win the lottery. This is what I will do if I win the lottery. But when you look at it, I've seen the stats for a few families that have won a lottery. And especially when those families are black families, the money is gone within a little while. And it's like, oh my goodness, what happened. But you can't give a person a million dollars if they do not know their purpose or don't know how to spend that money because they're just going to waste it away. 

It's just that we didn't know how to save. So we just ended up spending everything, not knowing! As I've told you guys, I did not have a financial background. When I went to university, our college did not prepare me for that. I believe that I have a wealth of knowledge that is worth $10 million right now. And this has allowed me to be able to help other people, teach other people, or even help my own family and my own friends. My most significant purpose is education, just to educate other people, to let them know that you don't have to stay where you are. You can learn. If you want to learn, you can learn something different. 

Dr. Sackeria Sunshine: What are the top tips you would share with somebody who might be going through financial hardship?

Shakarah Campbell: I would tell them:

1. Have hope. There is always hope. If you're willing to put your pride aside and say, "know what, I need help." You can reach out to somebody that will help you. There are people out there that are willing to help you. And one of the things I will say, personally, because I've been through this, and I know what it feels like if you're in debt because that does make it seem hopeless. And you do get to the point, like also where, for those of you that are Christians, that you'll be like, oh my God, why don't you help me? Why can't you help me? I went through that myself. And it was me opening my mouth and talking to a friend of mine. And she said I made the consumer proposal. Try it, see what it is about. It won't hurt you because you can't go any lower than you are right now.
2. Don't be a prisoner to your debt. Reach out to someone who can help you.
3. If you don't have a goal, you will spend your life working for someone else. So you have to figure out what you want for yourself.
4. Just start small. One of the things I learned is that always pay yourself first. So even if you take $10 from your paycheck, when you get paid, and you put it aside and say: "I am going to invest this for myself." You can invest it in any avenue. If you want to put it in your savings account, or if you're going to put it in a tax-free savings account, it will stay there. And you can start as, as low as $10, $10 a day, $10 a week, $10 a month. However, it works for you because when you look at it, in reality, some of us spend more than $10 a day on things that we may not need, like coffee every morning. Imagine if you decide to take that money and actually save it.
5. Do not be afraid to open your mouth and speak to someone just to let them know what you're going through. Not everyone will judge you. People will understand because I will tell you that when I used to when I told my friend about my debt, she was like, oh my goodness, I was in the same situation. It was the same thing with her. In this case, she was married to the first one, but she was helping his family. And that's how she got into debt. And then when the marriage didn't work out, unfortunately, it was all in her name also. So she ended up walking away with her death. So I will say that it does happen. And I believe, oh, I'm sorry. I believe I just have to. Oh, I thought I only had two, two. 

Shakarah Campbell: I can leave you with one last thing that I learned, and I thought this would have been perfect.  Something for people to ponder. When you make money, the government tax you. When you spend your money, the government tax you. So imagine that your income is being taxed. You're spending your income, and that's being taxed. And when you put your payment to save in the bank, the government does tax you on that. When you die, the government tax you. You have to pay a final tax when you die. 

Dr. Sackeria Sunshine: Thank you very much. And it was indeed our pleasure to have you tune in. We will be showcasing another extraordinary individual who is helping families transform financial pain into purpose.