Many households in Canada today have a little secret that can wreak havoc on their financial lives: financial mess. It’s not the kind you find in closets, under beds, or in the office. And we’re not just talking about lost banking, tax, investment, insurance, or credit card information.
According to the Financial Well-Being Study from our insurer Manulife, it says that wanting to be financially prepared for a comfortable retirement is a common goal for Canadians, yet only 28% feel they are.
If you’re not sure where to start, here are four simple ways to get on the right track: Create a budget if you don’t already have one…and stick to it. Budgeting can help you make good decisions when it comes to saving, spending, and investing. The challenge is balancing your budget – find out how to spend less than you earn to avoid unnecessary debt.
Manage your debt. Reducing debt does not require a complex strategy. Following simple rules like spending less than you earn is the key to making sure your debt doesn’t grow. Also, you will need to pay more than the regularly required minimum payment if you want to reduce your debt.
Plan for retirement. Whether you’re nearing retirement age or just starting out, you’ll need to learn about potential sources of retirement income, understand the financial challenges of retirement, and determine your expenses in retirement.
Prepare a will for yourself. Every adult should have a will, regardless of her age. A will is usually quick and easy to create with the help of legal and financial advice. It is also one of the best ways to organize your affairs to preserve your wealth and plan for the transfer of your remaining assets.