Oprah's Million Dollar Neighbourhood Comes to Bowmanville

Well, I have a pretty unique background. I was originally trained as a neuroscientist before a brief foray into the world of auto racing and then finally ended up in the world of finance. My focus was on financial planning and transparency about fees. I ended my full-time career in the financial services as an investment fund wholesaler for a few years before I realized I wanted more free time, not more money. I now write a personal finance column for The Globe and Mail which came about after my blog was voted Canada's number one investing blog by their readers in 2010.I regularly comment on business and personal finance in various media, including The National on CBC with Peter Mansbridge, as well as with the other main networks.

I got involved with Million Dollar Neighbourhood because I had won a reality show on The W Network in 2009, The Ultimate W Expert Search. They were looking for people with expertise in various fields to apply to see if they had what it took to be an on-air expert. They (OWN) actually asked me about hosting season one of MDN a few years ago, but at the time we were also working on another development which was further along. Since that was shelved, and the Oprah Winfrey Network in Canada is under the same umbrella as The W Network, it seemed like a natural fit for everyone.

What was it like getting the call that you’d be working for Oprah Winfrey?

I can honestly say that never in a million years would I have ever expected an opportunity like this. Getting the call was a bit surreal. It's the opportunity of a lifetime and I'm very grateful. I'm also excited to help out an entire community of 100 families. Times are tough, and people are ready for a re-think about how we deal with money and financial decisions.

Money is a tricky subject for many people—what do you find are the biggest obstacles families face when putting their finances in order?

Personal finance is very much like personal fitness. We already know what we have to do to get in better shape. We have to eat better and work out regularly. And a personal trainer often delivers superior results, but it's not because they show you a fancy new way of doing a sit up. They just make you do the sit up. It's the same with personal finance. We know that in order to get ahead, we can't continue to spend every dollar, and then some, that comes in the door. We have to save every month. There's nothing mystifying about it. On the other hand, for some families, they have been hit by tough times. Job loss or disability, or some other type of emergency can leave some people scrambling. There is a minimum level of expenses required just to survive, and some families aren't making enough money to make ends meet.

What are some things that parents can do to teach their children about finances?

Well they have to be financially literate themselves and unfortunately we don't teach this stuff in school. We leave people to figure it out on their own, which clearly isn't working. But when people have made money mistakes, they can certainly impart on their kids what not to do. Because they've been there.

Having them start saving with an online bank account is a great first step. Pick one with no fees or minimums so they don't have to worry about their money shrinking in the account. When they want something frivolous, if they can save up for it themselves, they might understand that money doesn't grow on trees and start to learn good habits—like earning interest instead of getting charged interest.

Can you tell me what the biggest mistake is that families make when financial planning for their families?

I'll give you two.

It's often the the simple things. Like spending less than you earn. It sounds so simple, but earning a surplus is the first key to a healthy financial lifestyle. If I gave the average person a $5,000 raise, they'll have it mentally spent in about 30 seconds.

Disaster proofing our lives is a big one too. Our single biggest asset is actually our ability to earn an income for the rest of our lives. Not even factoring inflation, and even assuming you never got a raise, earning $30,000 per year for your lifetime is well over a million dollars. If you have dependents, it's important you are covered in case the unthinkable happens. You're family can be devastated without it.

In Million Dollar Neighbourhood, the participants face some very tough challenges—do you think that people need a jolt in order to make changes, or can they do smaller, less tough things in order to create that change?

Million Dollar Neighbourhood certainly pushes people. We're trying to make 100 families $1 million better off in only 10 weeks. That's $10,000 per family. That's no small feat and so it requires some drastic measures. But viewers will absolutely be able to pick and choose a few challenges that they can implement themselves that will make a measurable impact on their own finances without having to be put through the ringer. It's up to them to decide how far they want to take it. If they need help, they can always petition to have us come to their town for season three!

Often times, participants need a pretty serious jolt that opens up deeper emotional issues. Do you let Dr. Samra (Host Joti Samra) deal with those issues or do you think that they are directly related to the financial and vice versa?

Great question. While this is first and foremost a “money” show, money and psychology go hand in hand. The best training I received for dealing with money issues was from my neuroscience days (which is essentially half psychology and half biology). I've kept an avid interest in behavioural finance and neuroeconomics and I think that's part of the reason why I'm here. So, yes, I absolutely roll up my sleeves and connect with people on that level. It's essential to be able to do that if you want to talk about money.

Having said that, some people are in bad financial situations because of the loss of a loved one, be it a spouse or child. Money stress can also be the cause of deeper psychological issues and vice versa. It's great to have Joti on hand for those situations that require a professional psychologist.

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All really great advice as we start off the new year!

OWN's Million Dollar Neighbourhood airs Sundays at 8. Contact local cable provider for channel listings.