Episode summary introduction:

Join TC & Maddog as they delve into the intricate relationship between money and happiness and how it really can’t buy happiness.  It can however put us on a path of happiness but that we can not do this alone.  It is important to rely on mentors and a team of professionals to guide us. 

Throughout our journey, we explore the various dimensions of financial management, including the dichotomy of spending and saving, and the imperative of instilling financial literacy in our children from a tender age. 

More so, we explore the significance of communication in relationships, particularly when navigating financial challenges, as well as the necessity of a strategic financial plan to alleviate stress associated with monetary issues. 

As we traverse this landscape, we invite our listeners to reflect on their own financial journeys and consider the profound impact of money on their overall well-being.

Topics discussed in this episode:

The intricate relationship between money and happiness has been a focal point of discourse throughout humanity's existence. During the discussion, we delved into the multifaceted nature of financial management, emphasizing the critical need for individuals to cultivate a nuanced understanding of fiscal responsibility. 

The allure of wealth often obscures the more substantial truth that financial resources, in themselves, do not inherently yield happiness. It is imperative for individuals to engage in self-reflection and to recognize that true contentment arises not from the accumulation of material possessions, but from the judicious management of one's financial resources. 

In this context, we underscored the significance of developing a robust financial plan, one that incorporates both short-term and long-term objectives while allowing for flexibility in response to life's unpredictable challenges. 

Furthermore, we advocated for the necessity of open communication regarding financial matters within familial structures, as this transparency can mitigate stress and foster a more harmonious domestic environment.

Walkabout takeaways:

• The journey of life is often accompanied by the necessity of guidance, as no individual should traverse it in solitude.
• In discussions pertaining to money, it is imperative to acknowledge both its potential to enrich and its capacity to complicate one's existence.
• It is crucial to impart financial wisdom to younger generations as early as possible to prevent future hardships.
• The stress associated with financial obligations can be alleviated through open and honest communication between partners, which fosters understanding and support.
• Navigating the complexities of personal finance necessitates a comprehensive approach that includes savings, budgeting, and seeking professional advice when necessary.
• Ultimately, while money serves as a tool for achieving comfort and security, it does not guarantee happiness, highlighting the importance of a balanced and mindful approach to financial management.

More about E-Walkabout:

To learn more about Electronic Walkabout visit us at   www.ewalkabout.ca.

If you want to read more “Thoughts of the Day” check out TC’s Book at Amazon:

“St. Mike's Fortunes” https://a.co/d/j5dGhBK 

A special thanks to Steven Kelly, our technical advisor, who keeps trying to teach these old dogs new tricks when it comes to sounds and recording!!

“Remember to take advantage of the moment before the moment takes advantage of you!”

Remember to take advantage of the moment before the moment takes advantage of you!

Electronic Walkabout. No one should have to walk through life alone. We share the good times, the bad times, and the best times.

Everyone needs a little direction now and again. And TC and Maddog are here to show you the way. A podcast where we talk about the important things in life. Come journey with us.

The Electronic Walkabout. Well, here we are about to take another journey of electronic walkabout.

This journey is fraught with landmines and some navigation and how to avoid them. We talk about money on this trip. The good, the bad and the ugly. Everyone has a dream of striking it rich, but in the end, it will not buy happiness.

And just the opposite. But if you don't have an idea of how to tame the beast, money's never going to buy happiness. In fact, just the opposite.

But first, as always, a thought for the day. I just was thinking about what you said about the last thought of the day, and I hope this isn't too deep for you, Darren. Okay.

Are you ready to say, "Consider unbeaten paths as detours that turn out to be shortcuts. Just beat them big enough so you don't have to walk alone."

I like it. I got that one. I got that one.

That was good. Well, how are you this fine day?

I'm doing excellent, TC Yourself?

Not too bad. Not good. So you've been busy over the last little bit?

Yeah. Between travels and moving, it's just never a dull moment.

Yeah. Just remember to take two step back and just kind of relax a bit now and again.

Because we all know that when you move, it's probably one of the most stressful things that can happen in your life.

It's for sure. And you ever want to see good banter between husband and wife, watch them move.

Is it. Is that the word, banter?

I'm calling it that. It's nice. Nice word for it. But yeah, it's.

It's always, you know, it's just, you know, the tensions run high because there's lots of change and nobody's doing anything intentionally. But we all know how to inadvertently make our partners upset or set them off.

So, you know, some people call it inert, actually. Yeah, yeah.

Yep.

That's word for it. But the point being is you gotta know when to pull the bear.

Yes, yes. I sometimes do it without thinking and I have to pay for it.

You know, before we get on topic, just one more point. But you have a way of doing things, she has a way of doing things.

They're not the same way.

They're not the same. And Then when you go down that path, you get that, that, that look like what are you doing? And, and you go with flow on that as well.

We'll hold you in.

Yeah. You gotta pick your battles, right? Pick yours.

Right?

Yeah.

So not, not too long ago, a few episodes back, we had that the topic or the, the journey was about things mom and dad never really taught us. One of the things that, that did pop up was money. We didn't talk a lot about it, but we're going to talk a lot about it right now.

But who teaches us how to manage money?

The Internet? I don't know. Yeah. I don't know who teaches us. Like schools.

That's always parents gripes as well they should be learning, budgeting in school and all that sort of stuff, which I agree. But I don't know. Like, you know, I think a lot of us, it was trial and error and that was, that was learning. Yet there was no coaching to it per se.

There was no coaching. No, no.

And I, and I probably mentioned, but even probably close to the time that my dad passed, I don't, I still don't think he had an idea how to manage money. And that's, that's not a, that's not a criticism. Right. So. And I don't, I don't think because you have it from one extreme to the other.

We have someone that, that doesn't mind spending money, but on the other side you have someone that says, I can't spend that money because we're out to make sure we save it for a rainy day.

Yeah.

And there's got to be that happy medium. Right.

Yeah. Oh, I definitely grew up in the spend house.

The spend house, yeah.

Yeah, yeah.

So when is it the best time to start teaching your kids about the value of money and how to manage.

Oh, as young as humanly possible. I've been through some very, very challenging financial times. I've claimed bankruptcy not only once, but I've claimed it twice.

The first time when I was 20 because I thought it was a great idea to become a real estate agent at 19 years old. So that was a seven year learning path. And then I opened up a bar years later after I got myself all squared away and that was time number two.

So yeah, I've learned the hard for sure. But with that I've tried to counsel my children is to not take those same paths and you know, come about things a little bit differently.

But I don't fault anybody for it was my decisions I did what I did thinking that I Knew what I was doing, but I just call it very, very expensive university education.

With the best of intentions.

Yes. Yes.

So, funny thing. When's the when? So her grandson's 8 and 6 years old, so I figured, okay, I'll take her to the bank and they'll book bank accounts with them. And.

And of course, her dad's thinking, well, this is perfect, right? So there's a hundred dollars in each of their accounts.

So being the granddad, I think, okay, when it gets below a hundred, I'll just keep topping it up. But I didn't realize what that plan was. I found out the other day, so. So his thought was that, okay, because they have cards.

If you go and let's say you want like a cool sports shirt or something like that, and you put your card into the. The to be. To pay, and it says declined. There's a valuable lesson on how to manage money.

Interesting.

But it didn't work out because Grandpa put here.

So Dad's waiting for him to get declined, but he's always getting financed from Gramps.

What's going on here?

So who had that equation figured out? Right? Your grandson?

Well, just being a grandpa, I can do what I want.

That's true.

But having said that, I mean it. It certainly makes sense that. Just let that I said to him, I said, okay, I'll tell you what, let's go down that road.

But when it's done, I'll top it back up to 100.

Yeah, tell me after he's been declined and I'll make it up.

Yeah, there you go. But it's the same thing. Like. And I know they just.

Because again, it's between Grandma and Grandpa and Grandma and Grandpa, they're going to be spoiled. So they. They get everything. So how do they learn the Dalwo?

I don't know. Like, and.

And, you know, I heard about it, and you think you're raising your kids the right way, and our boys are great, but when my youngest went to live with my dad to go to school, you know, my dad's like, he's got really expensive tastes and stuff. And I'm like, yeah, that's our fau. Sorry about that. But it's just. Yeah, it's. I don't know. Who taught you the world?

Well, I just take. Take a few moments back, and I was listening you say trial and error. I remember telling you the.

The whole credit card situation that when I was asked. Question, Mr. Carverly. TC do you know anything about what a credit limit is?

And I simply said, yes, When I put my card across the counter and it's accepted, I still have a limit. So having that card taken away from me, there's a valuable lesson.

Sad thing about it is that in the relationship I was in at the time, we could go to her father. He always had deep pockets. I'd always help.

And again, with the best of intentions, but literally, it was falling flat on my face, realizing that if I want to actually make anything of my life or live comfortably when I retire, I better start thinking about it now.

Yeah.

And that really put focus to my mind. How am I going to do that? Right. And so even. Even today, I'm still learning the best way to manage things.

Yeah. I picked up a couple of things for my kids.

But, you know, the thing about it is, like. Like right now, my. Like, it's funny, I. I cruised the Internet, Twitter, or whatever you want to call it, or formally Twitter. It's now Axe.

Right.

And I remember rich dad, poor dad, poor Dad. I read all those book. It's the same old, same old. Read all those books, but never took the advice.

And the thing that jumped out at me in this little bit that I was watching was cash flow. So if you have a bunch of equity, it's not going to help you. You have to have that cash flow.

Yeah. Too many people these days, I think, are equity rich and cash poor.

Well, that. That's one of the things I just realized. I'm equity rich right now, but my cash flow is. Is. It's something that needs to be desired.

So I've got a plan to fix that. And I think it. It's going to work out well, because that way I can live more comfortable than I have. And that's the whole point.

So we've made that exact same transition. So.

So it's. It's about time. Right? So, I mean, you think about it. We often hear that one of the biggest stressors that couples have centers around finances.

So how do we minimize that stress? And. And we always know that communication is a. Is. Is a big thing, which is easier said than done.

So if you have trouble communicating with your partner, number one, that's hard. If you have trouble communicating with your partner about money, it's double whammy. It's a double whammy.

Yeah.

So you have to be able to have those tough conversations so that. Let's say that person's calling you up and they happen to say, be saying to you, okay, well, how come you missed that payment?

When are you going to be able to make that payment. How do you manage that? And how do you manage that stress? And how do you get there and you say to yourself, I never want to be there again. Right.

No, it's a terrible feeling, right. When you owe money or, you know, behind on a payment, that's not a good feeling.

So I mean, at the end of the day, and I, and I, I said it time and time again, if you're in that situation, I want you to remember over and over again what kind of stress you're feeling as you're in this situation and say to yourself, I never want to feel this way again.

Yep, it's terrible. Like you wake up and you, you know, you're stressed the minute you, you open your eyes because you have this looming issue.

So, yeah, yeah, money is a, it's a scary thing sometimes. Or debt is in relation to money, I guess.

And then every once in a while I'll see this.

Okay, well if you over a 30, I'll say 50 year period, put aside this much money, by the time that, that comes to life, you basically save like a million dollars. But what has to take place for that to take place is, is truly discipline.

Yep.

And where do you find the discipline?

I don't know because, you know, we live in the now and stuff.

And if you have a very serious life incident now, but then you notice you have like a $10,000 nest, eg, retirement that's going to get overruled by the immediate now situation. So it's, it's tough. I've tried that one a bunch of different times and had to restart. Okay, let's, you know, go this way.

But it's, yeah, it's challenging.

I hate credit. And I hate credit because it's come back to have probably spent more money paying credit back. It's, it's not your friend.

Nope.

A funny story about that. So probably about four or five years ago, we get these credit cards from the bank. They have a $30,000 credit. You swim it on. Do you think I use it?

No, I never did.

Yeah.

So recently, because of the cash flow situation, I said, okay, maybe I'll check that out. So I phoned with the bank. We closed that account because it was inactive. And I'm thinking, well, that's really what you want to hear.

Absolutely. Yeah, I suppose we've just sent this account to collections.

Yes, but that's exactly, I mean, what I'm really talking about is the difference between positive and negative interests.

So that negative interest is, let's say if you look At a credit card of around, you see the interest rate, I'll say any, anywhere between 20 and 30% depending on the credit card. And people say, well that's not, that's not a lot, but it, it is a lot.

And, and when you get that thing in the mail and it says you've just been pre approved, you, you can get pre approved for this card, that card, any card. But, and they'll say no, no. And here's one that gets me and I'll tell you in a second. Yeah, but it's, it's not going to help you.

Nope.

Because when you go and see them, all you have to do is make a payment, make sure it's paid down and you're good to go. Right. When does that happen? Who teaches you that behavior?

Yeah, yeah, no, no, it's, it is. Credit cards are such a slippery slope and they've. Yeah, there's not a lot that comes good out of them because you don't have that money. Right.

Otherwise you'd be buying it with cash.

So you're just increasing your debt load and it just, you know, all it takes is one extra thing to pop up in your life and now you can't make those payments. And yeah, it's, it's, it's the old.

Speed wobble because you, you can't make it anymore. Before you know it, you're behind eight ball and you, you can't do it.

Exactly.

And what the banks are telling the kids these days, well, you got to get a credit card. Yeah. And guess what? When you get that credit card, don't worry about the limit. Just, just make a small character.

Pay it off every, it helps build your credit rating.

Yeah. So what if, what if you just realize that first of all there was no such thing as credit. Take it off the table.

And that when you needed something, needed something, not wanted something, that all you did was save until you had the money.

What a shocking revelation. Cure most things, but we are not patient like that.

No, because we, we, like you say we live in the here and now. We want it now. I need to have it now because everybody else has and I should have one too.

Can't be left out.

Let me ask you this. What's the most fanciest car that you've ever purchased?

Probably my truck. Brand new truck. I've never had a fancy car per se.

Is it, is it a practical vehicle? Is it.

Oh yeah, yeah. No, no, it's an everyday. Yeah.

So it's not like a, let's say a Corvette?

No, no. An organi. No. I wait until I turn 6. Well, you know what? I can't.

I had all these aspirations to get a sports car, but to our discussion right now about debt, I would much rather not be in the debt than have that car. I'd rather rent a car for a day, fly around in it, handed back in. I got my fix.

Oh, there you go. I've often thought about that. Take that ride up the sea Slurry.

Yeah, yeah. Oh, no, it's. I've had a couple friends do it and they raved about it.

But often when I think about that, because Dodge Vipers love them. And I know when I worked in Kelowna, you could see those Cheyenne cars going right down Main street during the summer to everyone. Wow.

If you're ever outside the River Rock Casino.

Oh, for sure.

In Richmond, some of the high end automobiles that you see coming by to check into the hotel, it's like they're.

From a different planet.

They are from a different planet.

You can't relate to that. And it's no different than when those, you know, groups of six or seven young guys get picked up in Richmond because they're doing 180km an hour.

But it's like McLaren, Lamborghini, Ferrari, they get their cars impounded. Okay, whatever. We'll get them out next week with.

No repercussion and no. And then I'm going to tell you right now.

And it doesn't matter whether it's someone that brings in 50k a year or 50 million a year, their ability to manage their finances doesn't matter. We all think the same way. And someone making 50 million will have the same challenges as you and I. Yep.

Just different. Couple more decimal places, that's all.

At this rate, I can't remember it was a few years back and it was some NFL player that left $5,000 in his car and he got ripped off. I can't remember what it was. So I started thinking about that.

That's no different than you and I leaving five bucks in our car and we come back and it's gone and we get a little upset.

Yeah, yeah. It's just scale.

It's all relative. Right.

So, yeah, I want that one. I'd rather have that scale just for fun. I think I'd remember that five grand in the truck.

But it was. And just, just to be clear what we're talking about. Credit's not your friend. Never will be your friend. No.

As much as it smoothes you, it makes you feel good.

It has that, like even when you, even when you buy that vehicle at 0% interest, you still have a hefty vehicle payment that you have to pay every month. Right.

As it depreciates the second you drive it off the lot.

So if we could live in a world that didn't have credit cards or credit, what kind of a world would that be?

A world of a lot less debt essentially is what that would sum up to be.

Okay, let's swing it around.

Let's say that, okay, I realize that in order to, let's say build that financial foundation so that at one point I can say I'm going to be very happy in my retirement because let's face it, money is only a tool.

It is.

And if you don't use that tool, property, it'll come back to hurt you for sure. But where are some areas that, that we can invest in that, that might help us with that foundation?

And it's just being consistent, number one, little bits of money every month. And they used to say 10% for heaven's sakes. And that doesn't seem like a lot.

No, you know, it just again with the restraints that are happening these days, especially in the province that we live in. We live in a very expensive climate here. It's definitely easier to navigate in other parts of Canada, but the same breath.

There's not much industry in some of those towns.

Of course it's cheaper and you know, it's at that age old crux of big city living, making the big buck versus living happy and content in a smaller town and not making as much.

Well, you think about that even like depending on like we live on the west coast where I'd say arguably the cost of housing and everything else is, is fairly, fairly high. And every once in a while you hear, well, we could move to Alberta, it's much cheaper there.

Or you can go back east and you can actually live like a king on whatever. But truly that's not, that's easier said than done. Especially when your roots and family are.

Well, that's it. Yeah, it's like, you know, when you're, your family's there, you'll pay whatever you need to, to stay.

Well, I, at least I would and I'm sure you would. But yeah, we always want to stay connected to our families. But yeah, it's money's will. Money will always provide a challenge and a reward.

But more times than not there's challenges.

I think, and I wish this for everybody, that somehow they figure out how to tame that Beast with their own little way of doing it. And you need to do it because if you tame that beast then, then your life is going to be a lot less stressful as far as I'm concerned. Right.

How much money do we really need to set up for happiness though?

I don't know. You know, and I, as you know, retirement is slowly approaching. You still have quite a few years.

You know, I heard retirement experts saying that's one of the challenges with people retiring is that they work so hard to save up so much money and they amass this fortune.

Then they retire and they're too scared to spend it because they don't know how fast it's going to go and they die with a boatload of money in the bank. It's like what? That seems a little bit backwards.

Thanks, mom and dad.

Well, that's it. Yeah.

So yeah, it's just everyone's, I'm sure, has their own strategy and you think of just where, you know, where do you want to end up when you hang up the gloves and say, okay, this is it. Where do you, where what's going to make you happy?

Where is that spot in the world that gonna allow you to enjoy the enjoyable part of your life not working?

And you're absolutely right because I know just actually fully retiring as a, as a January. But one of the things that was in the back of my head was, will we have enough money? Once, once I say, okay, that's it.

And I wish I had done it two years ago because yes, there's enough money, but there is that fear saying, well, I'm not gonna have enough. Right.

So it's really setting yourself up for success that way every once in a while take your progress, same old same old, to make sure you're on track. And even what's going on in the world market wise, like right now, it's so volatile, it's, it's scary. It really is.

It is.

And I just, I just say to myself, well, thank God I've set myself a foundation so that. Not that it's not going to hurt, but it's not going to hurt that much.

No, no, you're, you're in a much better position than most now.

I could probably bet money on this, but listening to that, that music again, so, so you know, here's, here's a few things and feel free to chime in that dog that you should think about when, if you were to say that of course money doesn't buy happiness, but it is a practical tool. It truly is a tool that can be used to get us whatever we want in our lives. With some important caveats.

As early as you can develop a flexible financial plan and have the stick to itness to follow.

I agree.

And I think a compliment to that would be is to don't be afraid to ask for help because you only know what you know and there are a lot of people out there that can help you and guide you. So yeah, you can get over the ego piece and. And ask for help. It'll go a long way.

It's funny how the eagle is. Is not our friend.

This one? Nope. No. It has a boy with predator. That's it.

They're really good.

Yeah, they're bedfellows.

But you just ran into the next point I was gonna make. Build a team of professionals that can advise you along the way.

And I will say, when you do that, become vested in understanding what they're doing with your money. Just don't say, okay, there you go. Make me my millions.

Yep.

You have to. You have to truly invest in what they're doing. Understand? So you can make the decisions. It's your money.

It's yours to be done with as you choose.

Create a budget both long term and short term. With a strong saving plan. A little can really be a lot in the end.

What is a savings you speak of?

I know. I figured it out though. Ask me a couple years from now.

Okay. For sure. Yeah.

The key will be flexibility. As life has a habit of throwing us curveballs.

That is a guarantee.

And if. And if you think any other way. And again, that'll cause you some stress. But all you have to do is say, we're going to get through this.

It seems to find its way. Right?

This too shall pass.

It is about living within our means and choosing a lifestyle we want to have, which means a balance of both.

But those fancy lifestyles seem pretty neat.

It's funny, when I was doing the old job, I got that.