
Tips to achieve your financial goals
Entering a new year is the perfect time to set some financial goals. Whether your goals are to pay off debt or save for your children’s post-secondary education, the key is to have a plan.
The first thing to do is to identify and prioritize your goals. Then, set a dollar amount and a timeframe for each goal. The amount of time you have to achieve your goals can affect how you plan to save and invest.
If you’re saving for a major purchase within a year or two, your focus will be on building your savings. You’ll want to keep your money protected and easily accessible, such as keeping it in a savings account.
If you’re putting money away for a long-term goal, such as your retirement or your child’s education, you may want to consider a broader range of investment types, including bonds and mutual funds. Keep in mind that some investments are complex and can be risky. More risk may be acceptable if your goal is longer-term because you have more time to recover any financial losses. You need to figure out what level of risk you’re comfortable with. Talk to an investment professional or financial advisor to find the investment options that are right for you. You can also work with them to come up with a plan.
If you can, you should also consider setting money aside for an emergency fund as part of your goals. That way, you’ll be covered in part or in full if you have unexpected expenses, like a home or car repair. Start by figuring out what you can put aside every week. Even if it’s not a lot, it can add up quickly.
The Financial Consumer Agency of Canada has a free and unbiased financial goal calculator designed to help you manage your debt and savings goals. Access this tool and other useful financial tips at canada.ca/money.
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