Whether it is preparing to pay off a loan or eyeing up a potential vacation, saving money can be a tough task without a plan. Far too often our immediate financial needs and wants take precedence, while our poor old savings accounts have to take a back seat. During 2018, the average Canadian household savings rate currently hovers at roughly 4.4%1.
That number is far too low to help us relax poolside in the sun with winter coming! So what can we do to improve our savings?
The moment that your first professional paycheck enters your bank account can be a euphoric experience. Finally you can trade in those frozen pizzas and microwavable popcorn for some real food! However, this new cash flow can also be overwhelming - post-university life comes with a host of additional financial and social responsibilities.
Fall is finally here. The leaves are changing, the days are getting shorter, and your worries seem just a little bit further away. But folks, I’m sorry to say, sometimes storms roll in on the most beautiful of days. And if I’m honest, the world is a bit of a scary place at the moment, with politics impacting the economic climate, and warmer temperatures affecting agriculture all around the world, the future is perhaps not as certain as it once was.
Many young families sometimes do not plan in the right sequence. They may fail to remember that their most important asset is not their home, vehicle, or bank account, but the income stream they provide each week to support those assets. Simply put, it’s the reason we always take about insurance at our first meeting.
You’re 25 and feeling alive. You’re settling into life after university, paying off your debts and slowly figuring how to “adult”. But with the responsibility of bills, rent, and even keeping up social appearances, prioritizing financial planning is something far too often pushed to the side. Of course the nagging idea that maybe starting an RRSP might not be the worst thing, however, it’s hard to fully take control of your financial future when the reality of everyday life is living paycheque to paycheque.
Ready for a few scary statistics?
1 in 19,000 houses catch fire annually.
1 in 1,700 people will get in a car accident with repairs costing more than $3,000 this year.
1 in 78 people will die before age 65 this year.
1 in 16 people will become disabled before age 65 this year.
1 in 3 Canadians will suffer a critical illness before age 65!
Record keeping doesn’t have to be difficult. Now that tax season is over, we’re sure you can see the value in keeping your records organized (and the stress it causes when they aren’t!) Implementing a file system is very easy. As soon as you receive mail – open it, file it, and POOF! You’re done. We’re only a few months into the year, so it’s not too late to start filing your important papers somewhere – somewhere you won’t forget, that is!
Did you just read the title of this blog and laugh out loud?
It probably surprises you as much as it does our clients when we tell them they need $1,000,000 of term life insurance. When you factor the income you earn and what your family would miss out on if you pass away prematurely, then add in the time value of money, you might be worth more than you think.
At a meeting earlier this week, some colleagues and I began discussing the importance of being able to step away from our business (or job) and just take a moment to enjoy life. Take a day off, per say. And studies show that we were on the right track with that discussion.