In a recent newsletter, a reader asked for help in distinguishing between craziness and necessities. I want to share two of your answers because they illustrate how personal finance should come from the heart as well as the brain.

This reader and her family are trying to fine-tune their household budgets to balance necessities, savings and fun. Specifically, she wondered if fixing the steps in her house and new mattress toppers for her children’s beds were a necessity or a luxury expense. The consensus was that more comfortable bedding for children is a necessity, and that repairing front steps is also necessary because it helps maintain the value of the family home.

Some comments from Peter Hambly, a retired financial planner in Hanover, Ont., Added some emotional depth to the discussion. Some of his points:

• “We have postponed a lot of home improvements (mostly needed). It was a mistake. Get your home the way you want it, ASAP, for fun and convenience.
• “In our case, to start over, we would live more for today instead of worrying about the future. It may not be typical.
• “Yes [this reader] has children at home, live a little now. These relationships and memories might not be recovered later.

I asked Mr. Hambly if the pandemic had influenced his thinking. “The pandemic has had no effect,” he told me by email. “I realized, thinking over and over again, that many financial decisions made before were difficult to understand after the passage of time. “

Now let’s move on to a disciplined and rational approach to budgeting, courtesy of insolvency trustee Linda Stern. Among the monthly expenses listed by the reader who asked about the follies was a payment on a consolidation loan to pay off various debts.

“As a trustee, in my opinion, the debt should be paid off before vacation and RRSP savings,” Ms. Stern wrote.

Some thoughts from other readers

• Set up a monthly savings plan for home maintenance projects like front steps
• Consider Registered Education Savings Plans for Children
• Contributions to the group retirement savings plan to which this reader has access at work are essential because of the likelihood of matching employer contributions.

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Rob’s Personal Finance Reading List

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Take it easy when brushing your teeth to avoid costly gum problems and maybe not wearing out your toothbrush as quickly.

Ask Rob

Question: What is the difference between a financial planner and a financial advisor? Do I see someone from a bank or an independent firm? I’m 57, and although I have investments and contributed to a workplace pension plan for four years, the older I get, the more I worry about not doing enough.

A: In general, planners make comprehensive financial plans and advisers manage investments. That said, some planners manage investments and some advisors do plan. Looks like you want an agenda. Can I suggest considering a freelance fee-for-service planner paid by the hour or on a flat rate? Advisors, and some planners, are generally remunerated through fees and commissions generated by the sale of investment products or the management of portfolios. A fee-for-service model offers transparency. You buy advice.

Do you have a question for me? Send it my way. Sorry, I cannot respond to each one personally. Questions and answers are edited for length and clarity.

Today’s financial tool

Is someone at the Canada Revenue Agency trying to contact you, or is it a scammer after your personal information? Some tips here on how to tell if it’s CRA Online and what to do if it is.

The cashless zone

It’s time to plan your summer readings: here are 38 novels to discover.

In case you missed these Globe and Mail articles on personal finance

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• Do you need health and dental insurance in retirement?
• What advantages and benefits are there to stay after the pandemic?

More Rob Carrick cover and money

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Editor’s Note: This article has been corrected to refer to registered education savings plans and not registered retirement savings plans.

Are you reading this newsletter on the web or has someone emailed you the version? If so, you can sign up for Carrick on Money here.