Wrong ways to live – how this couple fixes their financial woes and how you can too

Spring of 2012 started off like every season, with hopes of new beginnings and the start of better weather. David and Julie were no different. They lived in Brampton in a cramped apartment and like most Canadians, they wanted their own home and more space. The Toronto GTA market proved difficult with home prices and a small down payment. Needless to say, moving out of the big city would be their decision. Hamilton was their choice, so a new home and full-time commuting would be their next chapter.

David and Julie were happy and excited at first, as their newer built home only cost $385,000. All started well, but with time, problems started to creep in. Both of their cars needed replacing, their commuting bills begin to greatly increase as did their gas and insurance.

Other areas of their daily lives adjusted. The food bill increased since commuting had greatly reduced their time to prepare nutritious meals. Their moods changed and the stress affected how much involvement they put in finances. They went on expensive trips at the wrong time of their lives. They called our office in 2019 to discuss their current situation.

Our meeting was positive and we concluded that two main factors had to be improved to improve their lives; better cash flow and time. Fixing these areas would automatically fix their finances and stress levels. To the complete credit of the couple, they decided they could move back to the GTA. Thus, they bought a modest home in Mississauga with the amazing equity they had earned in Hamilton and their increased pays over there last seven years. Only one hurdle remained: their credit.

David and Julie moved from Hamilton back to the GTA in September 2019. Although the down payment and jobs were great, their credit needed repairing. The couple had to sacrifice for a year with a secondary lender. Was it cheap? No. The rate was 5.49% ouch! However, if they could pay consistently for a year while their credit score improved, their problems would be solved. Their respective credit scores went from 565 and 570 in 2019, to 715 and 625 this year. Most importantly, after a year of pain, we were able to move them to a major chartered Bank with not only a better rate, but the ability to refinance another higher rate debt. Cash flow improved by over $2500 per month. They also lived closer to work and had more personal time. Their stress levels were greatly reduced. Were they happy? You tell me. A box of cookies arrived in my office sharing their newfound joy and success.