At present we are in the midst of uncertain financial times. Owing to the uncertainties it was seen that the average Canadian debt balances rose by 2.3% in the 2016 3rd quarter, which is close to $22,000 and it is also being estimated that the balances would continue to rise over the next two years. Thus with the growing uncertainties, you need to be careful about fixing up your finances. The following are some important tips that would help you do the same.
Though it might seem a daunting task but you need to lay your debts on the table. It is only once you know the exact amount of money which needs to be repaid that you would take efforts to repay the same. So you need to be honest with yourself and determine the exact amount of debt you might owe.
You need to realize that life is unpredictable and issues relating to money might suddenly pop up. This is why you need to build up an emergency fund. Experts feel that one needs to save up to 3 to 6 months worth of expenses. This will see you through if you suddenly get fired or if you have a short-term disability. Homeowners to keep about $ 2000 to $ 3000 cushion that can be used for some immediate unforeseen repairs needed.
You must fix your financial goals, as per your priorities. Once your financial goals are quantified you would look for financial means to achieve them would get clear and you would work on a consistent basis towards achieving them. It is therefore very important to set a financial goal.
Once your financial goals are identified you need a concrete plan to achieve the same. It is best that you take the help of qualified financial planners who can help you to set up a practical and feasible way to achieve the financial goals which have been set. This should have a balance based on your risk taking capacity.
You must be consistent with your achievement process. You need not start by putting aside large sums of money if you think that you would not be able to keep it up. Most financial experts feel that for anyone looking to build a nest egg it is best to start with 10 percent of your net income and work up to 20 percent of your gross income. They also are of the opinion that when it comes to retirement savings, it is best to start small and but give yourself a raise every year. Even if that is minimal, it would add up and could be a significant boon to your post-career life.
We hope that the above-mentioned points will help you to ride over the present financial uncertainties. In case you are looking for financial consultation in Canada or US, you can get in touch with us at “The Accounting and Tax.”
The Accounting and Tax