Got a financial plan in place? Don’t worry if you don’t. The truth is that, even if we haven’t formalized a financial plan, many of us are already working toward goals — paying off student loans, saving for a house, or investing in an RESP for a child’s education — that represent some of the components of a good financial plan. Setting those goals represents a lot of the heavy lifting. Putting all the pieces together into a cohesive financial planning document is just the final step.
Why should we do it now? For many of us, COVID-19 quarantine has not only helped us focus on the financial priorities that matter most to us, but it’s also given us the time to act on them.Understand the benefits of a financial plan A financial plan isn’t a destination, a formula or a path carved in stone. It’s a set of guidelines that help keep you honest and on track as you move toward your goals. It will help you correct financial mistakes, build healthier financial habits, plan for emergencies and build your confidence.You don’t need to follow anybody else’s ideas when you set the goals in your financial plan.
If your financial plan today looks like your financial plan 25 years from now, there’s something wrong with it A financial plan is designed to guide your financial decisions. It’s not a rule book. Sometimes you’ll realize that your goals have changed, so the plan needs to change. At other times, you’ll realize that you’re not holding up your end of the bargain. The plan is still good, but your behaviour needs to change.This story was created by Content Works, Postmedia’s commercial content division.
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