You are somebody we would love to meet, as we love your sense of humour, and quick wit on the show. With sharpie in hand, my husband would love for you to sign his jar.

See you in Ajax!!
Truly,
Karen & Anthony

Anna, thank heavens you had a friend to help you out when you were in need. That could have ended terribly – especially as a lone woman in a big city. Glad it worked out!

In 2007 I left my job in Fort McMurray for a job that paid more in Calgary. I thought I had it all figured out – after all I was making a decent income and I had (what I thought was) decent savings right? Well, I rented out my place in Fort McMurray – it took a month to organize it so I had to pay my mortgage and condo fees out of my savings. I still needed a place in Calgary but no one would rent to me without me signing a 12 month lease for horrendous rental rates so I tried staying in a hotel while I looked for a new home to purchase. Prices were sky high because all the lower priced hotels were filled with working people who also couldn’t find an affordable place to live.

Then I had to pay property taxes on the place in Fort McMurray, moving expenses, storage fees and renew my car insurance all at the same time. My credit card bills began increasing. My new job started but my first paycheque wouldn’t come for a month. I missed paying my credit card balance by two days because I was living in a hotel and didn’t get the credit card bill on time. Suddenly I owed interest and it was steadily climbing. I couldn’t keep on top of it. I was living in a hotel and eating out every night. And then it happened…I was out of available money and credit.

It happened on a Friday. I remember being absolutely panicked. My credit card was maxed, my bank account didn’t have enough for me to make an ATM withdrawal and I couldn’t access my investment accounts (which contained a deposit for the Calgary home I intended to buy) because the bank was closed. Here I was, a woman with a six-figure income debating whether to concoct some terrible lie to the hotel staff (who needed me to settle the bill every four days) or see if I could get a bed at the homeless shelter.

I got lucky – a friend offered me a room at her place and let me wait until I finally got paid to pay her rent.

It took me a year of hard saving to pay off that one month of brokeness. I have since learned that lesson. One small error in judgement can start a downward spiral that can be misery to climb out of. Thank heavens for people like you Gail and the posters on this website. Everyone’s encouragement for those in dire straits keeps people believing there can be a light at the end of the tunnel.

Happy New Year all!

As for the distinction between being poor and being broke, you make an excellent point. And it’s one that more folks would do well to understand.

My mother’s parents were dirt poor, and my father’s parents were well off. What a difference! As a child I decided I wanted to be like my maternal grandparents, and I still do. My grandmother always said she felt rich when she moved to the city and had an indoor toilet. All her life she sewed into the night for others so her children had shoes, all the while singing happily. To me she was the richest person I knew because when I walked into the door of her appartment you could feel the love, peace and joy. She didn’t have much of anything and she didn’t need anything, but us, her family. She is my hero! My paternal grandmother may have been rich but she was the sadest person I have ever known. There was no love in the large children filled farm house, and there was never any peace that I ever felt. She worked hard but went without so many things all in the name of saving more money, so much so that she often didn’t refill her diabetes medications because my grandfather would complain about the cost, and she died young from complications due to her diabetic coma. In his old age my grandfather used to get around his house using a flashlight to save on the hydro. My father and his siblings would prefered his parents to have enjoyed their money instead of piling it up for them.

I have been and seen poor, broke, and rich. How you define these words lies in what you think they refer to – money, family, material things, or love.

When it comes to money it is also so very important to have a good balance in life – saving, time for family and friends, and having fun. If you don’t, you could end up financially rich but poor or broke in all the other areas of your life. So please take the time to balance the things that are important to you, so that you can be like my maternal grandmother and be rich beyond your dreams.

Happy New Year everyone!
Anne

As always sound advice, Gail.

I could live more frugally but I don’t because everything is shaping up. So I actually do spend more on life than Gail recommends. But I spend less on housing, transportation and will have no debt repayment in a week. I put over 40% away in savings, both short and long term. So what if I’m going to buy the big screen home entertainment centre with sound system? I’m saving for it and will pay cash for it – maybe by the time I save enough I’ll decide I don’t want it anymore. Yes I know there are other more useful items I could buy with my money, or save even more for that retirement. But if I’m paying cash, don’t have debt, and have the emergency fund, the home repair fund, the retirement fund, etc., then what’s the problem?