Hello;
Here are some simple common-sense guidelines to keep your financial affairs in order:
1) Know where you stand financially: Keep a close eye on your net worth: everything you own less everything you own. Make sure it is moving in the right direction.
2) Living within your means: Do not spend more money than you make
3) Pay yourself first: Every month, take a certain amount of money from your pay cheque and put it into savings
4) Understand the difference between good debt and bad debt: Incurring debt for the purpose of buying an asset – something that adds to your net worth and has the potential to go up in value, such as house or investment portfolio – is an example of good debt. Student loan debt is another example of good debt (future earnings). Bad debt would be consumption of goods that you really do not use.
5) Emergency fund: Have 3 to 6 months worth of living expenses in cash reserves. This can get you through a period if you cannot work for some reason
6) Know the difference between needs and wants
7) Delayed gratification and setting financial goals: Write down goals. Save and build capital for your future.
8) Track your spending: Bring awareness to your spending habits. Track your income and spending with a budget tool.
9) A united money front: Values influence your financial behaviour, and it’s best if you and your partner can arrive at shared values
10) Prepare a will and powers of attorney: Your will reflects how you want your estate to be distributed upon your death. Power of Attorney authorize another person to act on your behalf on health and financial matters if you become mentally or physically incompetent and unable to act on your own behalf
For more information on this, please let us know if you require further information.
Sincerely,
Mike Busby (15-Nov-2022)
THE COMMENTS CONTAINED HEREIN ARE A GENERAL DISCUSSION OF CERTAIN ISSUES INTENDED AS GENERAL INFORMATION ONLY AND SHOULD NOT BE RELIED UPON AS TAX OR LEGAL ADVICE. PLEASE OBTAIN INDEPENDENT PROFESSIONAL ADVICE, IN THE CONTEXT OF YOUR PARTICULAR CIRCUMSTANCES. THIS ARTICLE WAS WRITTEN, DESIGNED AND PRODUCED BY MIKE BUSBY FOR THE BENEFIT OF MIKE BUSBY WHO IS A FINANACIAL ADVISOR FOR BRANDON LINDSAY INSURANCE AGENCIES, A TRADE NAME REGISTERED WITH INVESTIA FINANCIAL SERVICES INC., AND DOES NOT NECESSARILY REFLECT THE OPINION OF INVESTIA. THE INFORMATION CONTAINED IN THIS ARTICLE COMES FROM SOURCES WE BELIEVE RELIABLE, BUT WE CANNOT GUARANTEE ITS ACCURACY OR RELIABILTY. THE OPINIONS EXPRESSED ARE BASED ON AN ANALYSIS AND INTERPRETATION DATING FROM THE DATE OF PUBLICATION AND ARE SUBJECT TO CHANGE WITHOUT NOTICE. FURTHERMORE, THEY DO NOT CONSTITUTE AN OFFER OR SOLICITATION TO BUY OR SELL ANY SECURITIES. MUTUAL FUNDS OFFERED THROUGH INVESTIA FINANCIAL SERVICES INC.
