Starting out in today’s economically challenged world can seem overwhelming, but the principles of yesteryear still apply – plan early and plan with what you earn. At Thomson Schindle Green Insurance & Financial Services Ltd, our professionals provide comprehensive financial services along with insurance policies so you can move forward with confidence in preparing and planning for your financial future. To help you to begin for that future success, we offer this advice to help you get started.
The first step is to take a financial inventory – before you move forward, you need to know the numbers you are working with and how they add up: credit score, debt load, account balances, assets, and net worth today.
The next step is to define where you want to go, what success will look like for you. Make a list of your goals, the relative timeline and cost for each, and then prioritize from top to bottom.
A road map will take you to different places, a budget is your road map to financial success. Create a budget that works for you – a zero sum budget, a percentage budget, a cash only budget – ensuring your essential cost of living are met, including debt plus savings.
At the end of the day, beginner financial planning really comes down to a few basic common sense steps: strive to save at least 10 percent of your salary each year; and cutting back on your spending habits – television package, brand name consumer goods, and home/cell phone – in favour of less expensive options can really add up, especially if deposited into a retirement account.
Time is one thing you can’t buy back or renegotiate. The sooner you start, the greater your nest egg – or car, home, family, cottage or travel – will become a financial reality. There are a number of financial vehicles that can get you started. Paying off debt and saving for emergencies – roughly about six months of living expenses – provides a buffer. One that is established begin looking at long-term objectives like retirement savings, even as little as $50 per month would be ideal, depending on your budget.
Keep in mind those short and medium-term fund savings for your pursuit of the Canadian dream and don’t put too much pressure on the immediate – as a young professional, you have a lot of life to live between now and retirement.
Thomson Schindle Green Insurance & Financial Services Ltd has been helping build financial futures in Calgary, Medicine Hat, Brooks, and Bassano since 1985. Browse our website to learn more about our policies and services or call one of our professionals toll free at 1.800.830.9423 today.