How one couple conquered the ‘money talk’

Before Lindi and Russel¹ were married, they had the “money talk.” You know, the one all new couples are advised to have before setting off on a financial journey together. For Lindi, that conversation wasn’t an easy one.

“I had a lot of student debt from grad school. I was learning to juggle my everyday finances and figuring out how to pay off my student loans. I actually cried the day I told Russel I had all this debt because I felt so badly bringing that into the relationship,” she says.

Fast-forward to today – almost 10 years and many conversations later – and that student debt is long paid off as the couple focus on raising three young children in Northern Alberta while growing their DIY and home-renovation blogging business, Love Create Celebrate.

We talked with Lindi and Russel, both 35 years old, about how they approach their finances and investing now, who they turn to for guidance, how they plan for the future and what they’ve learned along the way.

Early lessons

Lindi and Russel had very different experiences growing up when it came to talking about money at home. “Investing wasn’t really discussed,” Russel says, “but we were taught the importance of saving, and that there’s good debt and bad debt.” Lindi, on the other hand, says “I did not grow up in a home that talked about finances at all. When I started on my own going to grad school, I really paid attention to my own finances and it was a steep learning curve. It was intimidating for sure.”

The couple doesn’t shy away from discussing finances now. As entrepreneurs running their own business, “we usually have a monthly budget meeting to discuss house finances and work finances – we have to be really mindful of what we’re buying and how it will impact our future goals .” They’re also teaching their children. “Our kids have chores and they get allowance for them,” the couple says, adding that they can choose what to spend it on but must also save a portion.

Latest learnings

Lindi and Russel recently expanded their “money talks” beyond just the two of them. They met with an advisor to discuss additional investing options and have been exploring MyAdvisor, RBC’s free digital advice platform, to test out different scenarios to see how extra cash or additional expenses could affect their finances.

“I think the biggest takeaway has been learning about the tax-free savings account (TFSA),” says Russel. Having focused largely on monthly contributions to a Registered Retirement Savings Plan (RRSP) and opening Registered Education Savings Plans (RESP) for their children, Russel says they hadn’t considered a TFSA. “Being entrepreneurs, our advisor said a TFSA could allow our money to grow without getting taxed on it, but also gives us easier access to it if something comes up,” Russel says².

Budgeting ‘a-ha’ moment

A little over a year ago, Lindi and Russel kicked their budgeting habits into high gear when Russel decided to leave his long-time job with an engineering consulting firm to focus on their own business.

“Before I left my job, we tracked everything for three or four months,” Russel says, including what they spent on food, power, vehicles and more. It all went into a spreadsheet so they could analyze it. “That’s just how Russel’s brain works,” jokes Lindi.

Their biggest surprise? “How much we spent on extras, like coffee. The little things add up like crazy,” the couple says. Lindi and Russel say they stopped eating out regularly, and do so now only for special occasions. They’ve also switched grocery stores to find better deals and are more mindful about not wasting food. And coffee at home is now standard practice.

“I’d rather have a new truck or go on a trip,” Russel says.” He says knowing exactly where their money is going has helped them earmark more for their retirement savings, for their kids’ education and for their business.

When Lindi and Russel want a clearer picture of where they stand financially now, MyAdvisor lets them connect with an advisor by video chat, phone or in person to find out how their actions are matching up with their savings and investing goals.

“It allows us to plan for the future, get real-time financials and one-on-one advice,” Russel says.

I wish I knew then…

Looking back, Lindi wishes she had been exposed to more open conversations about finance – something she’s making up for with Russel and their children. “I really didn’t have any knowledge of budgeting and knowing where my money was going,” she says.

Russel says he wishes he had learned about TFSAs earlier, but also about the benefits of starting to invest early on – even if it’s only small amounts.

Knowledge is power

While Lindi and Russel are pros in the home-renovation arena, they’re happy to seek input when they need from other professionals – whether that’s an advisor, an accountant or a mechanic.

“They’re the pros, and they can answer those questions so you don’t have to feel intimidated,” Russel says. “If you go to a mechanic, you’re not going to know all the specifics and you’re going to ask them questions. Knowledge is power. The more things you can learn about, you can decide what you want to do,” he adds.

A perfect financial future looks like…

“A really nice muscle car,” jokes Russel. “I’m on the lake and retired by 65,” adds Lindi.

In reality, both agree that their ultimate goal is to have the time to focus on family. “If we can be smart with our money and make it work for us, then we can spend more time with family,” the couple says.

¹Lindi and Russel are RBC clients. They have been compensated for sharing their story.

²Assets in a TFSA must be Qualified Investments under the Income Tax Act. If the TFSA holds non-Qualified Investments, it could be subject to tax. While you can take money out of a TFSA for any reason, your timing does depend on the investments you hold in it. For example, non-redeemable GICs must be held until maturity.

Financial planning services and investment advice are provided by Royal Mutual Funds Inc. (RMFI). RMFI, RBC Global Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities which are affiliated. RMFI is licensed as a financial services firm in the province of Quebec.

MyAdvisor is an online platform from RBC where you can view your financial information including visual representations (charts and graphs) of your retirement readiness, net worth, cash flow, and financial goal tracking. You can also see how varying your current approach can affect your savings and goals. The MyAdvisor platform also enables you to book an appointment with an RBC advisor and to meet with your advisor using video chat or phone to open new accounts, including investment accounts, and get advice on meeting your financial goals.

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This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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