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Emotion and Finances by Angela Calla

General Angela Calla 13 Feb

There is no question that your emotions and finances are connected. This has been reported by physicians across the globe. I have also personally experienced this in my business and while working with a doctor on Million Dollar Neighbourhood for the OWN network. For instance, if you’re worried about money, chances are, you get less sleep and your appetite/food choices are affected. And when lack of sleep and poor eating habits are combined, you’re more likely to become short or testy with your spouse or children. The likelihood of getting sick or injuring yourself also becomes greater… you can see the path we are going down here.

The question is: are you standing in your own way of achieving your very best possible financial situation?

3 common excuses for not properly reviewing your financial options:

1.            I don’t have time

2.            It’s too much work

3.            I don’t have options

If you’ve made any of the above excuses when it comes to your finances, you’re likely standing in the way of your own success and thousands of dollars in savings.

Let’s look closer at these excuses and what they may be costing you:

1.            I don’t have time. Many people experience time management issues. It’s what you don’t know that costs you the most amount of money. One thing that separates people who do better financially from everyone else is that they make the time to learn. It’s like saying investing in your education is a waste because you know everything in life and there’s nothing more you can possibly learn. It takes approximately 15 minutes, regardless of your organizational level, to call your AMP and review your mortgage to see what you could be doing to find more money in your mortgage. In today’s market, if you’re paying 4.25% on a $300,000 mortgage, for instance, a refinance will save you more than $18,000 in interest alone (even after including the penalty in the new mortgage) and save you more than $ 54,000 in mortgage payments! How long does it take you to net that amount after taxes? It’s safe to say that for 99% of borrowers, it would be worth it. If it’s not, at least you’re in the right mindset to save, which will serve you well in the future.

2.            Too much work. You’ll only need about 15 minutes and perhaps a few documents. If you’ve ever bought a lottery ticket, waited in line for a movie, searched in your home for a sweater or waited to be served in a restaurant, getting a few easy documents together – such as your pay slips and a copy of your mortgage statement – is definitely not “too much work”.

3.            I don’t have options. People tend to get intimidated before they have the facts. Why would you cut yourself off without knowing the full story? Knowledge is Power. We encounter many people who say they did their own calculations and, based on the penalty, refinancing is not a worthwhile endeavor. Or, sometimes their lender also says the penalty is too high to justify a change. Remember that the people making money on you by carrying debt want you to stay there. It’s how they make money! So if they can detour you and, therefore, make more money for the company, they are the ones who benefit – not you! That’s why it’s important to seek advice from an unbiased mortgage professional who does not charge you for the review and can offer multiple options that best meet your unique needs. The great thing about numbers is they’re not jaded by emotion and are completely transparent – remember that 1+1=2, no matter how you slice it!

Every day we can make better choices that empower us and those we care about. Little things can make a HUGE difference.

Angela Calla is one of Canada’s top mortgage experts and AMP of the year in 2009. Angela Calla can be contacted at 604-802-3983 or t:@angelacalla