Financial Advice and Planning Tips
Looking for a boost to your financial confidence? Here are some financial advice and planning tips that can help get you going:
First, you are not alone.
The TD Financial Health Index finds that 39% of Canadians are financially struggling1. When it comes to managing your money and planning for your future, we know it can sometimes feel overwhelming and confusing because of the amount of information available and the jargon that's used. What you may need is some financial advice from someone who speaks your language. Your goals may change over time, and that’s normal. Working with a TD advisor can help you create a plan that can balance your life needs today with your financial goals of tomorrow.
Once you understand the power of compound interest, you may be motivated to start a financial plan and start saving toward the goals that are important to you.
Set financial goals
Everyone has their own idea of what the future looks like. But a few common goals stand out. For example, the dream of owning your own home. Saving for retirement. If you have children, saving for their education. That’s why setting goals is powerful. Knowing your goal enables you to set important parameters like the amount you will need and your time horizon. These inputs can help you build a better plan.
Pay off debts
Because it’s more than likely you are paying interest on your debts, like on a personal loan or a credit card balance, you may want to consider paying down those debts to reduce the interest you’re paying.
Spend less than you earn
We’ve all heard the saying, live within your means. But when your financial goal is to also invest and save for future events, the money coming in has to be greater than the money going out. When you understand your cash flow, it boils down to an equation that can be as straight forward as that.
Create a monthly budget
Financial planning has a lot to do with setting goals. And to make those goals achievable, it can be helpful to start with a budget. If you take that step to make a budget, we recommend that you stick to it and revisit it periodically, especially when you make significant life changes.
Contribute to your retirement
There’s a chance you will need to rely on your own money to retire. A TD advisor can help you calculate what you may need to retire. Starting early is a good idea. Taking taxes into account is another. Your commitment to saving, combined with our financial know-how, could make for a happy retirement.
You do not need to be the savviest investor to make smart investing decisions. This is where a financial advisor comes in. By creating a financial plan, together you and your TD advisor can create an investment portfolio that is designed to address your specific goals.
Review your insurance and your will
Change is a big part of life. So, make sure you have the insurance you need and update any policies to reflect any changes in your life. The same goes for your will if you have one. Make sure it’s up to date. Taking care of legacy planning now can help alleviate the stress your loved ones may face while settling your affairs in the future.
Keep an emergency fund
One way to reduce the stress of an emergency is to have funds on hand that can help pay for any unexpected expenses. This is money you tuck away for a rainy day. You may want to consider having enough money to cover three to six months of living expenses. That may seem like a lot, but it never hurts to start saving.
Submit your taxes
It’s important to keep up with what you owe on your taxes. As a way to better manage them, you may consider making quarterly installments to avoid one big expense at the end of the tax year.
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