Financial planning is an incredibly personal undertaking that is best completed with the support of an experienced advisor. It’s how individuals can get out of debt, preserve and grow their savings, invest in their future and create peace of mind. It’s a collaborative, comprehensive effort, and it should be something you revisit many times as your career and personal life evolve.
Personalized advice is key, but you can start by taking a look at your current situation and writing down some of your goals. Here’s an overview of five things everyone should include in their financial plan. To speak with an expert on our team about your specific needs, please contact us.
A budget
Before you can start investing in your future, you need to get in control of your everyday finances. This includes your bills, discretionary spending and overall cash flow throughout the month. A budget should include all of your fixed and variable expenses as well as debt repayment, savings and a line for miscellaneous items (unexpected expenses, for example). Here’s an excellent video that explains the 50/30/20 rule of budgeting—it’s a great place to start.
Insurance
Insurance is something almost everyone needs, but no two individuals’ insurance needs are exactly alike. We recommend speaking to an expert about what makes sense for your stage of life—this may include home insurance, life insurance (either whole life or term), various types of auto insurance, critical illness insurance and/or other options. Remember, you can be underinsured OR over insured, so it’s important to review any existing policies with an advisor. You may find yourself making changes that reduce your monthly premium costs without compromising your level of insurance protection.
Investments
You don’t need to be wealthy to start investing. Whether it’s a TFSA, an RRSP or a modest investment portfolio, saving and growing your money is a key part of building lasting financial security—even if you start with an auto deposit that invests $20 each week (or even per month). It’s never too early to get started, and our advisors can help you set up investments that reflect your income, cash flow needs and long-term goals.
A legal Will
If you have any assets to your name—savings, a home or vehicle, life insurance policies or investment accounts—you should have a Legal will. This is especially important if you have dependents such as children or a spouse. Our advisors can help you get started and connect you to experts in the Will and estate planning field. This may seem like something you can put off until your older years but really, everyone should spend the time taking care of this step. Not only will it lay out your wishes for end of life, it will help your loved ones by reducing the amount of decision-making and paperwork one is faced with if a person dies without a Will.
A retirement plan
If you’ve started contributing to an RRSP on a consistent basis, that’s a great start—but a retirement plan is complex and often requires more than one source of income. An advisor can help identify your needs based on your income, your assets and timeline, your family situation and your lifestyle preferences. It’s never too early or too late to start planning for retirement—please reach out to Interior Savings for personalized guidance.
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