There are a million ways to spend your money but here's how you can learn to save
Money. Love it or hate it, no one is exempt from its influence. With food to buy, bills to pay and debt to consider, it’s not surprising many of us are at a loss when it comes to managing money and planning for the future. Sara Kinnear, Senior Tax and Estate Planning Specialist with the Investor’s Group, shares some tips for all the single ladies who know it’s time to make a financial plan but don’t know where to start.
SET PERSONAL GOALS
“The hallmark of any successful plan is setting clear goals” says Sara Kinnear. Start by considering your circumstances and stage in life. Whether you want to pay off your student loan, buy a house or pay for your child’s education, set goals “that stem beyond but include the immediate future.” Write down your goals and keep them somewhere they will be seen to keep you on track. The key here is to keep your eye on the prize!
“The hallmark of any successful plan is setting clear goals” says Sara Kinnear. Start by considering your circumstances and stage in life. Whether you want to pay off your student loan, buy a house or pay for your child’s education, set goals “that stem beyond but include the immediate future.” Write down your goals and keep them somewhere they will be seen to keep you on track. The key here is to keep your eye on the prize!
START NOW
Unlike the decision to cut your own bangs, it’s never too late to start saving for the future. “A common mistake for many Canadians including single women is to assume that they don’t have the wealth or cash-flow necessary to invest, or that they have not started early enough to accumulate the funds to reach their financial goals and now it’s too late,” says Sara Kinnear. “Single women may also be working against additional odds as single mothers and household heads or recovering from divorce and assume that their more immediate financial obligations won’t allow for them to focus beyond.” The good news is, it’s never too late to start! “Working with a financial expert, you can determine the best way to manage your current financial obligations while setting aside funds that will grow for your future goals and retirement plans.”
Unlike the decision to cut your own bangs, it’s never too late to start saving for the future. “A common mistake for many Canadians including single women is to assume that they don’t have the wealth or cash-flow necessary to invest, or that they have not started early enough to accumulate the funds to reach their financial goals and now it’s too late,” says Sara Kinnear. “Single women may also be working against additional odds as single mothers and household heads or recovering from divorce and assume that their more immediate financial obligations won’t allow for them to focus beyond.” The good news is, it’s never too late to start! “Working with a financial expert, you can determine the best way to manage your current financial obligations while setting aside funds that will grow for your future goals and retirement plans.”
KEEP IT REAL
If your goals are unrealistic, you will likely have a hard time sticking to them. As uncomfortable as it may be, honesty is absolutely the only policy when it comes to your financial well-being. “Talk to a financial expert who can help you make realistic goals that are in-line with your spending, saving and investing habits.” Sara cautions those who are new to the workforce “not to fall into the trap of overspending. Live within your means, and then some.”
If your goals are unrealistic, you will likely have a hard time sticking to them. As uncomfortable as it may be, honesty is absolutely the only policy when it comes to your financial well-being. “Talk to a financial expert who can help you make realistic goals that are in-line with your spending, saving and investing habits.” Sara cautions those who are new to the workforce “not to fall into the trap of overspending. Live within your means, and then some.”
TO THINE OWN SAVINGS BE TRUE
Sara recommends ensuring “that a portion of your income is automatically diverted into your short-term and/or long-term savings.” NO EXCEPTIONS! No one said it was going to be easy but if you want to get to where you’re going on time, you don’t want to be stopping at every roadside attraction and spending money on souvenirs. By paying yourself first, you’re taking control of your financial destiny; isn’t that worth more than a sweater you don’t even need?
Sara recommends ensuring “that a portion of your income is automatically diverted into your short-term and/or long-term savings.” NO EXCEPTIONS! No one said it was going to be easy but if you want to get to where you’re going on time, you don’t want to be stopping at every roadside attraction and spending money on souvenirs. By paying yourself first, you’re taking control of your financial destiny; isn’t that worth more than a sweater you don’t even need?
In the end, managing your money isn’t so scary and it’s not just for people who have more money than they know how to spend. It’s for everyone, including you. So take these tips from Sara Kinnear and get your save on! Your future-self will thank you.
Edito'r note: from http://www.solomag.com/Finance/index.php?page=2&id=13
By Anne AlmaSara Kinnear is a lawyer specializing in personal tax and estate planning. She is an expert on all forms of registered products including RESPs, TFSAs and pensions.
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