As y’all know I answer a lot of questions from people about their money and how to deal with it. There’s a wealth of info over in the Your Questions section. Sometimes I get a lot of the same questions, and then I do a blog so everyone will read the answers. Here’s a new crop for you to take a gander at.
I keep getting letters like these from people who are desperate:
We need help from a professional … we cannot do this on our own. We have tried (very unsuccessfully). We’ve been bankrupt once and are in loads of debt again. We make close to $200,000 a year but live paycheque to paycheque (we even get advances on our paycheques). Where do we go to find a professional??
I’m very sorry, but I can’t give recommendations to professionals because before I could do that I’d have to make sure they were up to the job, and there’s no way for me to know that. It is frustrating for y’all who need help and don’t know where to turn, I know. I’ll reiterate that I think you should start with your local branch personnel and see if there’s anyone there who can help you. It doesn’t matter if you’re a client or not YET, just open up a savings account and then use it as your “in” to have a chat or three with various people who may be able to help. Ask friends and family if they have a good advisor. Make sure you ask lots of questions and understand everything you’re being asked to do BEFORE you do anything.
Angelina wrote:
Hi Gail I love your show. I wish I could have my husband watch your show. I really have a lot to ask but I try giving you one thing at a time. What is the recommended amount of Groceries a month for 2 adults a 2yr ( potty training in progress) & 7mth. We probably spend $400.00. I only go out once a moth and I do the cooking at home, but I would run out of bread, milk, eggs, butter diapers and have to do $100 extra always. My husband thinks it too much. What can we do?
Angelina, I can’t tell you how much to spend on food for a bunch of reasons: I don’t know how much you make and I don’t know what your other expenses are. I can tell you that according to the Stats Man, before food prices started going through the stratosphere, the average family with kids was spending about $800 a month. I think you can do better than that with some focus on meal planning and shopping the sales. If I were doing your budget, I’d give you $600 for food and personal care.
J wrote:
I’ve heard that some collections agencies are bogus, how do I know if they’re really collecting money on behalf of someone else? And is it true that if they can’t contact you and you don’t make a payment that in a certain amount of years (I heard 6 or 7) it disappears off your credit report? Thank you! P.S. Love your show! It’s been very helpful.
J: some collections agencies are indeed bogus, and you should take a name and telephone number and verify the company before dealing with them. As for stuff falling off your credit report, most information only has a life of about six or seven years, but you better not want to borrow any money during that time!
LM wrote:
I’m in over my head and I need your advice so that I won’t require a slap if ever I meet you. My question for you stems from an episode of ‘Til Debt’ Do Us Part that aired a few weeks ago but alas I missed it. Do you recall the storyline when the husband, who was in the entertainment industry, had not paid his taxes in several years and had not been caught? I’m very curious as to what your advice was to take care of this situation. Did he represent himself and go the Tax Amnesty route through CRA or did you have him go through an accountant or lawyer. I have met with a tax amnesty lawyer and got his opinion and his potential bill, not including accounting services but I was hoping that you knew of a better way. You can only guess why I’m asking this…I look forward to hearing from you.
LM: I’m sorry, hon, I don’t know of a better way. I think the tax amnesty route is the best option. Since The Tax man allows “no-name” disclosure to enable discussions to take place anonymously until a deal is reached, only a lawyer can protect the client’s identity if a deal is not reached.
J wrote:
Dear Gail, I LOVE your show! It is truly inspiring and I so wish i can get it together and start saving. My problem is that whatever money comes in, goes out immediately! My husband is a self employed photographer and makes a decent salary. He grossed about USD$180,000.00 last year, but we do not have more than $500 in our account as we speak. Money comes in and it goes to pay rent, utilities, suppliers, etc. I am so tired and worried about our financial state. We are always short of cash. On top of that, we have credit card debt of about USD$20,000. What can you suggest for me to get on the road to saving!!? It seems so hard when you’re self employed. I have a small business and that’s not been helping either. I live in Singapore by the way
J: if you have an income of more than $180,000 and you don’t have anything saved, and you have debt, you are really, really dumb. The place to start is with a budget. I don’t care how often the money comes in, that’s just an excuse. Go read my blog about living on a variable income. And then get yourself on a budget girl.
J isn’t the only one I’ve gotten this kind of letter from. All over the world people are throwing up their arms and whining, ‘I just don’t know how’ as they continue to shop themselves into a hole. Ya know what, it’s time to stop whining and start doing. Hope and wishes won’t get you anywhere you want to go. Belief in yourself and A FRICKEN PLAN will. So, people, if you think you want to get out of debt, learn to live on less, know where your money is going, use the tools on this site to make it so. I can’t possibly do budgets for y’all. Besides, I’ve made fams on the show do their own budgets and they used the tools on this site to do it, and it worked just fine. So now it’s your turn to DO IT!
I’m a-wonderin’ sumthin’: Would y’all consider creating Gail Clubs — kinda like book clubs — where those of you who actually get the whole idea of budgeting and money management get together to share your wit and wisdom with those who are in need of some more targeted guidance? It would be a little like an investment club, but more about money management, getting debt free, and sharing tips. If you want to create something like that, I’m happy to let the community know where your group is set up so that those who are interested could come and partake of the groups’ company and knowledge. You could ask a well-trusted financial mentor to be a guest or a regular guide. And you could grow the group over time to include all aspects of money management. Let me know if you see value in sharing your ideas and learning from each other. Then I’ll create a blog on how to set one up, and once I have a few group locations, I’ll post some contact names and locations for those who may be in your area and looking to connect. (I could also do a blog on how to set up an investment club, if you’re interested.)
That’s enough for now. I have plenty more, so I’ll do another blog like this soon.
TTFN