Moving out of Debt and into their 1st home!

During the 2018 RRSP season, I sat with a client who felt a great deal of concern about not knowing where to begin, so we decided to complete a comprehensive review. We discussed strategies and techniques to improve cash flow, reduce debt, pay less taxes and take advantage of tax efficient practices overall. If any of those areas ever concerned you, or worse off if they still do, you can relate to my client's feelings at this time.

My client was several years into his career and became an Associate at his firm the year prior. With an elevating career, ideas of a family, and substantial debt, we chatted openly about his current situation, his goals, and the options to hit the target! I am a firm believer in the idea that quality communication can create opportunities out of obstacles. And that's just what we did.

We spoke candidly about the desire to own a home and how he couldn’t shake the unsettling feeling that student loans would be a perpetual expense... he spoke passionately about the feelings of burden around paycheck to paycheck being a "normal" lifestyle. Something had to be done!

I drew upon some personal experiences to help my client understand that adversity challenges us all, and helped him relate to what was ahead. Additionally, I was fortunate enough to have a great mentor who became a client early in my career, to support my practice, yet remaining a client over the years, as she gained clarity in the techniques I used, and felt confident about the approaches we outlined to navigate through life’s different stages. This allowed my mentor to confidently foresee a way ahead to the goals she had set.

Those experiences along with others, help me to provide a way for my clients to clearly and confidently pursue their goals, and made it easier for my client with the present desire for change to gain hope, and set forth with one of my recommendations.

His feelings of hope, the desire to change, and a clear strategy gave him the will to see it through, however if we think that change comes easy, we better think again!

He and I implemented a strategy that helped increase his cash flow from month to month, and enhanced his investment portfolio, whereby he saw results in savings within 60 days! And several weeks later he received his largest tax return, to date, which was a wonderful feeling for him, especially after having anxiety about taxes due to past experiences.

We were on track towards his goals, as we were diligent with cash flow techniques during times of cash influxes, such as receiving his tax return, and used it to assist with paying down debt balances significantly. Month to month, we were getting the client one step closer to a deposit towards his first home, and closer to clearing his outstanding debt. By the Autumn of 2018, we reduced over 50% of his debt and we were well on our way towards a meaningful deposit.

When he called me that morning, I could tell his inquiry was inspired by personal motives as he said, “What sort of coverage is available against cancer, and how much is it?” with urgency. The loud thud following his sigh of relief as he sat down when I told him, “our planning has the coverage in place should any number of health concerns arise”, then I humbly asked him “if everything was alright?” With some emotions being held back, he expressed to me that a partner at his firm, who mentored him, was diagnosed with prostate cancer.

As he seemed to be in need of greater console and greater counsel specific to his personal feelings, I made arrangements for him to tap into the benefits of his coverage, allowing him to speak with a professional in the area of supporting individuals faced with loved ones experiencing health concerns.

By the Spring of 2019, his mentor’s condition was in remission, and where other members of the firm experienced burnout, fatigue, and mental health implications, he remained resilient and communicated with me even more frequently, as we anticipated hitting the goal in the next four months. Our friendship developed tremendously, and I was grateful beyond description.

In October of 2019, I received an email from my client, the body of the email said, “Thank YOU!” and the subject was headed “DEBT, FREE.” The phone call that followed was filled with laughter, and raw emotions of appreciation and gratitude. So much had taken place over that time, and to some, this may be minuscule, but when you remove the weight of debt and the feelings that go with it, especially after committing to the process and the strategy, it creates a strong feeling of accomplishment.

He was laser focused, now more than ever, to jump into the home ownership arena, and successfully closed his first property on December 31st, 2019.

Between February 2018 and December 2019, my client was able to clear over $20,000 in debts and make a significant down payment on a new home. The most gratifying feeling I discovered during the process was the friendship we developed over that time period, whereby towards the end I was no longer introduced as just his financial advisor, but his “friend.” I have shared his story with most of my clients and built my practice on nurturing these sorts of relationships. Now I can proudly say, I have a greater awareness for the feelings my clients experience while navigating through the stages of life and the stages of a strategy, but the greatest feeling of all, is the one my clients experience when they hit their target!

If you, a friend, or a loved one are experiencing difficulties around planning for your financial future, please leave a comment below or send a message directly.

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