It Takes A Plan

Planning For Your Financial Goals

We've all thought about it.  We've all dreamed about it.  Some of us think it might never come.  Some of us know it will.  Somehow, some way.  

Financial freedom is something many people think is
out of reach and the stuff that daydreams are made of.  If only. If only I won the lottery.  If only I had a rich uncle and inherited a pile of money.  If only I had a great idea for a can't miss business.  If only I had a quick way to get rich.

There are many ways to achieve financial freedom.  However the first thing you need to do is decide exactly what financial freedom means to you.  Being debt free?  Retiring early and comfortably?  Being able to travel regularly?  A bigger home?  A boat?

The first step toward achieving your financial goals is to identify them.  Identify them specifically and begin to quantify them.  What age do I want to retire?  How much income do I want during retirement?  How much will it cost for me to take annual trips?  How much is that dream home?

Once you start putting hard numbers to your goals you can start reverse-engineering them by determining how much you will have to save and for how long.  How much income you will need, minus expenses, to save enough for these goals.

Look for opportunities

By changing a few things, you may get yourself closer to your financial goals and fast track your journey.  For example, consolidating debt at a lower interest rate by leveraging equity in your home can put less dollars towards interest and debt-service and more dollars towards savings.

Using Tax-Free Savings Accounts (TFSA) and Registered Retirement Savings Plans (RRSP) to your advantage can lower your tax burden, again putting more dollars towards your goals.  Knowing the difference between the teo and knowing how much to put into each is also advantageous.

The most important thing is to have a plan and to stick with it. Talk to a financial planner and get started today.

"The best time to plant a tree was 20 years ago, the second best time is today." -Chinese Proverb