When it comes to personal finances, we often think of the fable about the Grasshopper and the Ant. Some people are in their element and can stick to a balanced budget while planning for their future, while others take life as it comes without a care for tomorrow. Are you a grasshopper or an ant? You should know that anyone can become an ant. Here are five good personal finance habits that can make your life easier, free your mind and keep you from getting caught off guard when the unexpected happens!
Completing a financial health assessment and reviewing it annually, or whenever a significant life event occurs, will give you a real picture of your situation. Doing it with the help of an advisor will help you ask the right questions and better understand what you have to do based on your needs and projects. Knowing how to minimize the tax payable on your income, growing and protecting your wealth, better managing your transaction habits, and optimizing your overall financial situation are the topics discussed in this exercise, which you can only come out of as a winner! At Laurentian Bank we’ve developed a practical tool to help you complete a financial health assessment. Like the trainers at the gym who take care of your physical health, Laurentian Bank advisors support you to improve your financial health and give you sound advice!
Start to soundly manage your personal finances by identifying your goals and needs in order of priority. Do you want to find your dream home, spoil your grandchildren, take a year off to change careers, or prepare for your well-deserved retirement? With a clear vision of your goals, you can take the right saving and budgeting steps that will enable you to carry out your projects and even make your dreams come true! Setting goals to help you plan your journey as much as possible is the first step in the right direction.
Budgeting is about knowing what kind of flexibility you have when it comes to making expenditures. It’s also a good way to plan for future spending and include savings. Would you like to set a budget, but don’t know where to start? It’s less complicated than you might think thanks to our practical budget table, which clearly tells you how to proceed and what to list. Feel free to repeat this exercise regularly so that your budget always reflects your reality and you know where your money is going!
When you opt for an automatic savings plan, a specified amount will be periodically deducted from your bank account. You don’t even have to think about it! All you have to do is decide how much and how often to take it out, and then watch as the savings build up. You can also coordinate your deductions with your pay deposits to ensure you have the necessary funds to “pay yourself first.” In addition to offering long-term benefits, this habit will help you stay disciplined. When amounts are withdrawn automatically, it’s less tempting to spend money on things you can’t necessarily afford.
When the unexpected happens—like a global pandemic—it’s good to have an emergency fund. If you lose your job or have to spend more than your budget, access to funds can be a huge relief and even help you avoid debt. The TFSA1 is one of the ways to build an emergency fund. It lets you save money tax-free, with no penalties when you make withdrawals.
There are many benefits to good financial health. With proper planning, you get closer to making your dreams a reality and gaining peace of mind. All you have to do is develop good habits that make saving second nature. How about starting by taking stock of your financial health? Feel free to book an appointment with a Laurentian Bank advisor, who has all the tools and knowledge to help you get off to a good start.
To your financial health!
Laurentian Bank: Laurentian Bank of Canada.
TFSA: Tax-Free Savings Account.
1. The decision to invest in a TFSA depends on your circumstances and financial goals. Talk to your advisor to make sure this investment vehicle is right for you. For more information on TFSA contribution room and withdrawals, please visit the Canada Revenue Agency website. New investment accounts are opened through LBCFS, a subsidiary of Laurentian Bank. LBCFS is a legal entity distinct from Laurentian Bank and Mackenzie Financial Corporation (“Mackenzie”). Mutual funds (“funds”) and the financial planning service are distributed by LBCFS. The available funds are part of the Laurentian Bank mutual funds range managed by Mackenzie. Laurentian Bank advisors are also registered LBCFS mutual fund representatives.
The articles on this website are for information purposes only. They do not create any legal or contractual obligation for Laurentian Bank and its subsidiaries.
These articles do not constitute financial, accounting, legal or tax-related advice and should not be used for such purposes. Laurentian Bank and its subsidiaries may not be held liable for any damage you may incur as part of such use. Please contact your advisor or any other independent professionals, who will advise you as needed.
The articles may contain hyperlinks leading to external sites that are not managed by LBC. LBC cannot be held liable for the content of such external sites or the damage that may result from their use.
Prior written consent from the Laurentian Bank of Canada is required for any reproduction, retransmission, publication or other use, in whole or in part, of the contents of this site. © All rights reserved, Laurentian Bank of Canada, 2019.