Financial planning basics
1. Make a budget to find out where your money goes, so you can easily spot places to cut spending and boost savings.
2. Pay yourself first by setting up an automatic monthly contribution to your RRSP, preferably a payroll deduction so that your contributions are taken before tax deductions.
3. With the help of your financial advisor, put together a financial plan in order to identify what steps you need to take to achieve your goals.
4. If you regularly carry high interest credit card debts, consolidate them using a lower-interest line of credit.
5. Assess your insurance needs and make sure you have adequate coverage.
6. Establish an emergency fund so you’re prepared to handle unforeseen expenses such as job loss, major home repair or long-term illness. A general rule of thumb is at least three month’s worth of expenses, but save even more if you can.
7. With help from your financial advisor, ensure that your financial plan includes tax-planning strategies.
8. Keep your advisor informed about any significant changes in your life or your finances.
Content provided courtesy of Manulife Investments
© Copyright of this article is held by The Manufacturers Life Insurance Company (Manulife Financial). You are free to make copies of this article and to distribute it, either in paper form or electronically, as long as you do not change or remove any part of this work. All other uses are prohibited.
Manulife Investments is the brand name identifying the personal wealth management lines of business offered by Manulife Financial and its subsidiaries in Canada. As one of Canada’s largest integrated financial services providers, Manulife Investments offers a variety of products and services including segregated funds, mutual funds, principal protected notes, annuities and guaranteed interest contracts.
WealthStyles, Manulife and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation.
Latest posts by Mark Huber (see all)
- How To Be A Success In 21 Days - April 26, 2013
- Mortgage Changes Affecting You – In Effect In 15 Days… - June 26, 2012
- Why I don’t recommend RESPs - July 26, 2010
- How Your RRSPs May Devastate Your Retirement Plan - July 6, 2010
- 21 Tips To Financial Freedom - July 5, 2010