_edited.png){kind=small}
Changing Your Financial Narrative
As we continue with Part 4 of our series on Changing Your Financial Story Narrative, we invite you to reflect on the thoughts, feelings, and beliefs that shape your financial decisions. We also explore a common question: is it better to pay down your mortgage or invest?
This month, Market Ethos examines our ever-changing markets and where opportunities are beginning to emerge.
Finally, we are delighted to introduce Finley, our miniature Sheepadoodle, who joined our family in mid-July.
We hope you find this month’s insights thought-provoking and valuable as you continue your financial journey.
Harness Investment Management
Sometimes Good Isn’t Good Enough
Earnings have been strong across the board this quarter, but the market is only rewarding the parts of it that aren't tied to AI. Even as gold is quietly turning a corner....read more
Rewriting Your Financial Story
In the earlier parts of this series, we explored how beliefs, cognitive biases, and emotions shape financial behaviour. Now we arrive at a pivotal step changing the narrative.
Because awareness is powerful, but transformation happens when we begin to rewrite the beliefs that no longer serve us. Many of the financial patterns people experience like hesitation, avoidance, lack of confidence are not simply about knowledge or income. They are often rooted in long-standing beliefs that quietly influence decisions over time. The encouraging reality is that beliefs are learned and they can be changed.
Recognizing Your Financial Story
Everyone has a financial story. It is the internal narrative that shapes how you think and feel about money.
This story is often formed early and reinforced through experience:
Messages from childhood about money
Past financial successes or mistakes
Cultural or family attitudes toward wealth
Experiences during economic uncertainty
Over time, these experiences form beliefs that feel factual even when they may be incomplete or outdated. Some examples could sound like, I’m not good with money, investing is too risky, or I’ll never get ahead and sometimes it’s too late to start. These beliefs don’t just sit in the background they actively influence behaviour.
From Fixed Mindset to Growth Mindset
One of the most important shifts in rewriting your financial story is moving from a fixed mindset to a growth mindset, a concept popularized by Carol Dweck.
A growth mindset recognizes that skills and understanding can be developed:
“I can learn how to manage money effectively”
“I can improve my financial knowledge over time”
“Small steps can create meaningful progress”
This shift doesn’t change your situation overnight but it changes how you respond to it.
Reframing Limiting Beliefs
Rewriting your financial story begins with identifying and reframing limiting beliefs. This doesn’t mean ignoring reality it means challenging assumptions and creating more constructive perspectives.
For instance:
“I’m bad with money” → “I haven’t learned the right strategies yet”
“It’s too late to invest” → “Starting now is better than not starting at all”
“I’ll never have enough” → “I can make consistent progress over time”
“Investing is too risky” → “Not investing may carry its own risks”
These small shifts in language can significantly influence behaviour and decision-making.
Building Evidence Through Action
Beliefs don’t change through thinking alone they change through experience. One of the most effective ways to rewrite limiting beliefs is by creating small, positive financial actions that build evidence over time.
This can include:
Setting up automatic savings contributions
Reviewing your finances regularly
Making gradual increases to investment contributions
Tracking progress toward specific goals
Each small win helps reinforce a new narrative: “I am capable of managing my financial life.”
The Role of Consistency
It’s important to recognize that changing beliefs is not a one-time event it’s a process. Old patterns may resurface, especially during times of stress or uncertainty. This is normal. What matters most is consistency:
Returning to your plan
Continuing small, positive actions
Reinforcing new ways of thinking
Over time, consistent behaviour begins to reshape belief systems.
Creating a More Empowering Financial Identity
As beliefs begin to shift, something deeper starts to change, it is your financial identity. Instead of seeing yourself as someone who avoids financial decisions, feels uncertain about money or lacks confidence
You begin to see yourself as someone who is learning and improving, taking thoughtful financial action and building long-term stability. This identity shift is often the foundation of lasting financial success.
Over time, these steps create meaningful and lasting change. Your financial story is not fixed. It evolves with your experiences, your decisions, and your willingness to challenge old assumptions.
Before you know it our conversation will shift to “it’s now time to draw down on your investments and spend your savings”.
What is the Best Way To Pay Down My Mortgage
What's Better: Pay Off Your Mortgage or Invest?
The short answer is... it depends. I know that's probably not the answer you were hoping for.
A common question I receive is whether extra money should be directed toward paying down a mortgage or invested for the future. While many people expect there to be a universal "right answer," the reality is that the best decision depends on your personal circumstances, your goals, and the strategy behind your financial plan.
Recently, a friend reached out with this exact question.
They had received a modest inheritance and expected to receive an additional amount over the next couple of years. Their objective was clear: be mortgage-free before retiring in four to five years.
They also have a legal rental suite in their home and shared an interesting perspective.
"Ideally, I'd like the rental income to cover the mortgage, leaving my retirement income available for travel, hobbies, and enjoying life. What's the smartest way to use this inheritance to get there?"
Like many Canadians approaching retirement, they wondered:
Should I make a lump-sum payment on my mortgage today?
Should I invest the money instead? If so, should it go into my TFSA, RRSP, or a non-registered account?
Should I invest now and pay off the mortgage later?
Is there a strategy that gives me the best of both worlds?
These are excellent questions and they deserve more than a simple opinion.
Together, we built five different financial scenarios using realistic assumptions for investment returns, mortgage interest rates, taxes, and their retirement timeline. The results surprised both of us.
In some scenarios, paying down the mortgage immediately created greater peace of mind but actually resulted in less overall wealth by retirement.
In other scenarios, investing first allowed the money to compound, creating significantly greater net worth while still allowing the mortgage to be paid off before retirement.
There were also situations where a blended strategy allocating some funds toward the mortgage and investing the remainder provided the strongest balance between financial growth, flexibility, and emotional comfort.
The most important lesson wasn't which option won. It was that the best decision wasn't obvious until we modeled it.
Looking Beyond Interest Rates
Many people compare only two numbers:
My mortgage costs 4.5%.
I think my investments can earn 7%.
If investing is expected to earn more, the answer seems simple. But real financial planning is far more nuanced.
We also need to consider:
Taxes and which account the investments are held in.
Investment risk and market volatility.
Cash flow needs during retirement.
Future inheritance or pension income.
The emotional value of being debt-free.
Liquidity and having access to funds when life changes.
Estate planning and legacy objectives.
Sometimes the mathematically optimal answer isn't the one that helps you SLEEP BEST at night and that's okay. Financial planning isn't just about maximizing returns. It's about aligning your money with your life.
The Value of Running the Numbers
Small decisions can have surprisingly large long-term consequences. By comparing different strategies before making a decision, you gain confidence that your money is working toward the future you actually want not simply following conventional wisdom.
Whether you're approaching retirement, receiving an inheritance, selling a business, or simply wondering what to do with extra savings, taking the time to model different outcomes can uncover opportunities you may never have considered. The right strategy isn't always the most obvious one but it's often the one that is intentionally designed around your goals.
If you're asking yourself whether you should pay down debt, invest, or do a combination of both, I'd be happy to help you explore the possibilities.
After all, great financial decisions don't come from guessing. They come from planning.
I’m Karen Boudewyn with Core Wealth Solutions, guiding you to ….
Comments