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Speak Up

Does this sound like your day?

8 a.m.

On your way to work, you buy a coffee and a muffin. You're too busy in the morning to make breakfast, and in your mind, it's only a couple of dollars. The cost: $2.50.

10 a.m.

One of your colleagues is doing a coffee run. Thankfully, your colleague thinks of you most mornings when you need a jolt of java.

Everyday, you use your spare change for your mid-morning coffee. The cost: $1.25.

5 p.m.

On your way home, you stop for gas and while paying inside, you get a cappuccino-style coffee for a treat after a hard day of work.

You always pay for your gas with a credit card and include the $2.50 specialty coffee. You treat yourself to specialty coffees a few times a week.

10 p.m.

You settle into bed to try to sleep, but your mind cannot stop thinking about your financial responsibilities at home. The kids have outgrown their summer clothes and new ones are needed.

What will you do for a family vacation this summer, as money is tight and the price of gas is higher?

You decide a camping vacation will fit the budget, but you won't travel far with the price of gas being what it is.

11 p.m.

Still wide awake, you blame all three coffees for your inability to sleep. You don't realize it is money concerns keeping you awake.

In one day, you spent $6.25 on coffee shop items. On the weekend, you typically buy two coffees a day while out doing errands.

So, every week you spend $31.25, which equals $125 a month. Your yearly total: $1,500.

Surprising, isn't it?

Now, think about putting just $1,000 of that into a family vacation fund every year. Brewing your own coffee beans just may give you the gas money to travel and show your kids our great country.

So, where did you go wrong? Nothing is wrong about buying a coffee. It's wrong when you cannot afford it and need to put it on credit.

Coffee is a luxury item and has been for many centuries. You do not need coffee to live. You need food, shelter, and loving support to live.

Coffee is a want, not a need. In order to achieve financial success, you need to clarify what your needs and wants are within your household.

Everyone in the house needs to be in agreement and to make their desires reasonable and reflective of your financial situation.

To ensure all needs and wants are met, you need a budget and financial plan.

Looking at your budget, if you then do not have enough to cover your debts, then please call a financial advisor specializing in debt to assist you with ways to recover financially.

* Andrea Mailman is a financial advisor specializing in debt restructuring with the Moncton office of PricewaterhouseCoopers.

Utilizing her experience in banking and working with debtors, she assists people to address and deal with their financial challenges.

Andrea can be reached at 859-8822 or by e-mail at andrea.j.mailman@ca.pwc.com.