DEPOSIT

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START EARLY

– It’s possible that financial priorities change over the course of your life. In your 20s you might save for a luxurious car, in your 30s you might save for your home or kids’ education, and by your 40s and 50s you’re more focused on your retirement. But to achieve any of these goals, you need solid savings goals. One that keeps you on track for your long-term goals, and one that will see you through any economic downturns that may happen along the way.

Of course the key to any savings goal is to start early. That way you can take full advantage of the power of compound interest. “A little bit saved each month starting at age 25 beats a lot saved every year starting at age 50,” says Heather Franklin, a certified financial planner in Toronto. “Every day you wait to put a savings goal in place could affect the lifestyle you want.”

BUILDING A FINANCIAL PLAN

– Financial planning helps you determine your short and long-term financial goals and create a balanced plan to meet those goals.

CASH MANAGEMENT – Although cash management may not seem like a planning exercise, it’s an essential part of your financial plan. Cash management strategies, including developing and following a budget, ensure you have income to take care of your basic necessities and taxes with money left over to put toward your long term financial goals.

DEBT MANAGEMENT – Managing credit and reducing debt and interest on debt should be a key part of your financial plan. Credit, when used wisely, can play an important role in your cash management strategy. When used poorly it can lead to financial hardship and even bankruptcy.

INVESTMENT PLANNING – Investment planning is about setting goals, assessing your tolerance for risk and finding the right investment plans and products to meet your goals.