Long-term Thinking PT 3: “Admit you are in debt. Seek advice.”

[“What to do about rising household costs? Look at your biggest expenses, i.e., housing, transportation, food, clothes, communication (e.g., cell phones), entertainment (movies, cable TV), etc. Ask yourself hard questions about each.” G.Harrison, Sept. 27]

By now a few Canadian households have taken my advice to “reduce spending, pay down debt, and save money for the tough times ahead.”

They are de-emphasizing ‘living for today’ and are hiding a few acorns in safe places (e.g., a piggy bank) for the long winter ahead. They are not just thinking about their own generation but their children’s generation as well.

According to an expert in personal financial planning, only a few people are doing this.

“The average Canadian continues to add debt... (but) it’s never too late to get out from under it and save (for example) for retirement.” Aug. 9, London Free Press)

Marc Lamontangne says “Success comes down to common sense, hard work and disciple.”

I recommend those in debt use some of his strategies to help them start living under their means and practice long-term thinking.


["Can't dig your way out? Ask for help."]

Marc suggests the following strategies:

prepare a weekly/monthly budget to track expenses

figure out where your money goes every month

download software packages to help organize and categorize expenses

ask a certified financial planner to design a plan to pay off debts

rather than a revolving line of credit, arrange a more disciplined fixed-rate loan that has to be paid off in full each month

(Author’s note: My wife and I did that to pay off home reno costs. We now know exactly when we will be free of debt. Mortgage and car payments are already zero.)

when debt is paid off, start working on other goals, such as retirement or children’s post-secondary education

Lamontagne expresses optimism for those who are over 40 and who wish to live well as seniors. They simply must “become serious about paying off debt and saving money.”


["That's one fine pig."]

Admittedly, my advice in an earlier post was brilliant. I.e., “Look at your biggest expenses... ask yourself hard questions about each. E.g., Can we survive with a smaller car?”

Lamontagne’s is brillianter. If your spending habits have landed you inside a deep hole, seek advice and assistance. Take a step to becoming a long-term thinker.

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Please click here to read “Long-term Thinking PT 2: Families are in the danger zone.”

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