The best time to start improving your financial life is NOW.
Are you in debt?
- Start a plan to reduce spending, and putting more money towards that debt. You'd be surprised how much an extra $100-$200/month can reduce the loan term. If it's the worst kind of debt like high interest credit cards, cut them up, start paying them back and go on a cash only based system. You can't spend what you don't have right? I would even go as far as saying forgetting about RRSP/retirement contributions until all high interest debt is eliminated.
- Remember, paying down debt IS increasing your net worth!
Are you just getting out of University/College and got your first job?
- Yes, you deserve to splurge a little. However, this is your opportunity to really kick start your financial future as you have TIME on your side. I would say that the single most powerful wealth builder is compounding returns over time. Get in the habit of putting aside 10% of your pay and you'll come out ahead in the years to come.
Are you in your 40's or 50's and don't have a retirement fund?
- Start now! Don't look back and regret what you "should have" done, look forward and work with what you have NOW. Look into RRSP's, paying down your mortgage, or starting a non-registered portfolio. As your investment time line is shorter than someone who just graduated from University, you'll most likely have to budget a little more savings for every month to meet your retirement goals. Better late than never.
If your financial life is in turmoil, there is always a way to improve your situation. Start looking for solutions and get started today.
photo credit: garryknight