#1 Most Powerful Financial Technique Known to Man is Surprisingly Simple

Apr 09, 2018

paper-3190198_640Have I got your attention now? Excellent. It’s a bold statement I know so let me explain…

I think we can all agree that it’s human nature for our wants and desires to outstrip our means and resources. Plainly put, we want more than we can have. It’s an almost universal impulse, regardless of income. It may be surprising, but so called rich people often have severe financial issues. The fabulously wealthy rock star or athlete who winds up broke is a well-known trope. As a wise man once told me, “Don’t tell me how much money someone makes, tell me how much they spend.”

Spending, ah yes. An activity in which most of us are quite skilled. We often spend money before we’ve received it. At least that’s the case with credit cards and lines of credit. Even so, most of our money is already earmarked for the common expenses that underpin our lives like the mortgage or rent, childcare costs, and car or other transportation bills. Then there’s food, and heat, and insurance. There’re also the ever-increasing cell phone and internet bills, along with the kids’ sports fees, their orthodontic fees, school fundraising obligations, and so on. And that does it for the paycheque…gone.

Clearly, we don’t have a problem being mindful and living in the present when it comes to spending. The problem is that at the end of a long list of demands on our money there is often little to nothing left to put away for retirement…you know, that event that always seems far into the future, until it’s right on our doorstep? It’s a situation that needs to turn on its head.

With that in mind, did you notice what was missing from that long list of bills? It’s your taxes, and I don’t mean property tax. I mean income tax, and Canada Pension Plan (CPP) contributions, and Employment Insurance (EI) premiums and, in some provinces, medical plan premiums. We don’t think of these as expenses in the same way as the previously mentioned bills except in fact, they are.

For most employees, this is because your income taxes and CPP and EI contributions get paid first, right off the top of your gross income by payroll deduction. Next in line is usually the mortgage or rent, then perhaps your car loan or childcare provider, right on down the line to your retirement savings plan at the bottom. We seem to think contributing to a retirement plan is optional or discretionary because, well, strictly speaking, it is. But it’s also a fool’s paradise.

Ensuring there will be a roof over our heads and food on the table when we retire should not be a lower priority than paying taxes. What we don’t see or have direct access to we cannot spend. So set up a payroll deduction or a direct debit from your bank account and pay yourself first, or at least second, right behind the government.

Click here to download/print this blog.
blog rss subscribe button


Jump to:

Place content block here for staff contact info
Place content block here for social media links


Top Employees Want This One True Benefit

By Craig Hewson on January 23, 2018


Second Biggest Issue in Benefits Plans is Simple

By Craig Hewson on May 17, 2018



Place content block here. Add accent and heading in editor.

Important Factors to Maximize Your Benefit Plan

By Craig Hewson on March 7, 2017

How Your Benefits Plan Can Run Like a Ferrari

By Craig Hewson on January 3, 2017

Benefit Plans – The Best Time for a Review

By Craig Hewson on October 13, 2015

Wage Increase or Retirement Savings?

By Craig Hewson on December 16, 2014

Trend – A Second Definition

By Craig Hewson on September 22, 2014

The Importance of Communication

By Craig Hewson on March 24, 2014

Critical Illness Insurance

By Craig Hewson on January 13, 2014


By Craig Hewson on July 2, 2013

Group Benefit Utilization

By Craig Hewson on September 24, 2012

How To Spot Value In A Benefits Plan

By Craig Hewson on July 3, 2012

What is a benefit really?

By Craig Hewson on March 19, 2012

Depression in the Workplace

By Craig Hewson on February 20, 2012


Learn how Craig can help with your group benefits.

Phone 604.714.4443, email chewson@trggroup.com or send a message.

Message for Craig