PATTIE LOVETT-REID
Why ex-banker Pattie Lovett-Reid gets three Ds
Former bank executive Pattie Lovett-Reid is the host of The Pattie Lovett-Reid Show on CTV News Channel. On the Toronto Star’s series on the financial habits of notable Canadians, Pattie told the Toronto Star’s Emily Mathieu about the stress of being “house poor,†her inability to justify her love of luxury purses, and her three firm rules for getting out of debt.
What was the best piece of financial advice you ever received?
My father told me not to flunk retirement. I needed to put some money away from the day I started to work because there would come a time when I would no longer be able to work. He also said don’t let life become a series of take-aways. Stay in the game, don’t become complacent, continue to upgrade your skills and believe in yourself — even if no one else does. Don’t become unbelievably average.
How else did your family influence your spending habits?
My family had a huge impact on me regarding money. They always encouraged us to be industrious. I had three part time jobs (I delivered papers, worked at the local theatre and was a cashier in the corner drugstore) while in high school. If I wanted something a little more expensive then what my parents deemed reasonable I had to pay the difference. Money was discussed freely and openly. My parents always lived within their means and never complained about what they didn’t have and always celebrated what they did have. They defined wealth through the richness of their family and friends. Wealth was never defined by their investment portfolio.
What was your first job after high school and what did you learn?
A teller position at the Bank of Montreal . . . I loved that job. I learned that people skills were critical to success and reinforced to me that customers always remembered how you made them feel regardless of their bank balance.
What was your first big purchase?
A Dunlop Maxply tennis racket. I grew up in the Beach and took tennis lessons and really wanted what was at the time a very expensive racket that I thought would improve my game. It didn’t, but I felt great and paid for it myself. I still can’t hit the ball well to this day.
What is your best money saving advice?
To look closely at where you buy your home — buy in a tony neighbourhood and almost all costs are higher from taxes, to restaurants, shopping etc. Everyone tries to keep up with the Joneses and they are probably broke. It is a very dangerous trap to get into and an even harder one to get out of.
How should people tackle debt?
I use the three D’s. Look at the Data (your balance sheet doesn’t lie and you have to confront the brutal facts), make some tough Decisions on where you can cut back … it all comes down to the third D, Discipline. It has to be your plan. You need to get excited about it. You need to own it.
What about stretching your dollars day-to-day??
Hold family conferences, we did. There is only so much money coming in and you have to make choices about where that money will be spent. We were once planning a family vacation when our children decided they would forgo the vacation in lieu of a second computer. Everyone owns the solution when there is participation in the decision making.
What is your worst spending habit?
I love designer handbags and lovely jewellery which are absolutely luxury purchases no matter how I try to justify it. I’ve even tried to amortize the cost over an extended period to make sense of the purchase. Little doubt this is an emotional purchase that I will say I get a great deal of pleasure from and would never indulge if I couldn’t afford it.
Have you learned any hard financial lessons?
When we purchased a home that was a stretch for us financially. I will say it was my dream home and I will also say I never felt so much relief then I did the day we sold it and purchased a home that was lovely and within our means. Being house poor was not much fun and I wanted more balance in our life.
Are money and success the same thing??
When we purchased a home that was a stretch for us financially. I will say it was my dream home and I will also say I never felt so much relief then I did the day we sold it and purchased a home that was lovely and within our means. Being house poor was not much fun and I wanted more balance in our life.
Emily Mathieu Staff Reporter, The Toronto Star
For more information on Pattie Lovett-Reid click here.