How is your financial planning looking? Do you have an ample amount of money saved up? You might have some funds in the bank, but make sure you have all your bases covered. Check out these tips and tricks for making sure your financial future is a stable as you want it to be.
Learning how to make smart financial decisions has likely been a lifelong pursuit. However, the Canada Revenue Agency reported that about 35 percent of Canadians don't actually have any savings or investments, while another 33 percent has trouble keeping up with finances. So there's still a lot more to learn. But now that you're nearing retirement - or even in retirement - it's time to really start thinking about how you can responsibly budget it for your future.
Don't know where to start? Here are some tips that will help you better plan your financial future:
1. Devise A Spending Plan
When you're trying to budget for your future, you need to know exactly where your money is going, explained financial blog myMoneyCoach. What are your biggest expenses and what are some unnecessary things you can cut out? After just a couple of months of tracking your finances you should be able to predict what you'll be spending long down the road. House and utilities, car and medical payments are likely your biggest areas of spending, so you can easily plan the rest of your budget around these expenses.
The Government of Canada explained that when you're devising a spending plan, you need to ask yourself some of the following questions:
- How much income will you require?
- Will it make sense for you to continue to live in your home, or sell your property?
- What types of insurance do you need, and how much will it cost?
- How much will it cost you to live after retirement and long will your savings last?
2. Make Smart Financial Decisions
Now that you have your spending and saving plan in place, it's time to be extra responsible with your spending budget. This means you have to do your homework before making big purchases, like a new TV or couch. You want to be sure you can pay it off appropriately so you don't fall into debt, or have to spend extra money getting it fixed because it doesn't work well. Spend time reading reviews and researching multiple options before you spend the money, reported myMoneyCoach.
3. Beware Of Scams
A responsible financial future also means protecting it from fraud or scams, explained the Government of Canada. Unfortunately however, fraud is the most common crime against older Canadians, as it's just inevitable that thieves target seniors more than anyone else. This is simply because seniors are more trusting and usually less tech savvy. Identity theft, credit card fraud and online scams are the most common ways seniors lose their hard-earned finances.
The best way to prevent yourself from scams that will steal your identity and money is to keep all your personal information in a safe place, and to avoid non-professionals asking for money. Basically, if they don't work at an established institution, you could risk being stolen from. On the computer, avoid clicking on pop-up windows and verify e-mails from your bank or insurance by contacting a representative directly.
Source: Sunrise Senior Living