What is a financial plan?

Success seems different to everyone and the first step in any great trip is deciding what that destination will be. Do you want to buy a house? Retire early? Buy a boat and travel the world? Whatever your goal, make it inspiring so that it is motivating! Use your goal to be the guide that takes you through the steps to achieve your success.

2. Know where your money is going and redirect it to your goal.

Creating an accurate budget will help you identify where your money is going today and where to put it in order to develop a plan to successfully reach your goal. Establishing immediate, medium and long term plans will help you get there. Creating a budget is an immediate plan, while paying down debt can be a medium-term plan and retirement a long-term plan.

Many planners refer to the Budget 50/30/20:

  • 50% of the net salary meets the needs (housing, public services, transport, childcare),
  • 30% towards desires (dinner at a restaurant, clothes, entertainment) and
  • 20% oriented towards savings and debt repayment.

3. Prepare for emergencies

Having an emergency savings fund is essential to deal with the unexpected. Set goals for your emergency fund and keep building it. Aim for $ 500 and then $ 1000. Good credit is another way to prepare for emergencies. By establishing and maintaining good credit, you will get a decent rate on a much-needed loan in a pinch.

4. Tackle High Interest Debt

Paying off this toxic, high interest debt like credit cards and payday loans is a critical step in any plan. Interest rates can be extremely high on these items.

A debt consolidation loan can help pay them off sooner with a simpler monthly bill at a lower rate.

5. Invest in your future

Explore the variety of options available to help you invest and save. Whether it is traditional products such as a RRSP Where TFSA, education savings RESP, or using a online brokerage, investing is an important step towards your financial future.

6. Protect and grow

As your career advances or your family grows, make sure your plan does too. Whether it’s increasing contributions to savings and retirement accounts, creating a larger emergency fund, or using insurance to protect you and your family, which depends on your income, keep evolving your plan as your life changes.

Ready to start? Contact one of our heritage specialists for personalized service!

Louis R. Hancock

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