Finally some good news 91裸聊视频� you91裸聊视频檝e landed a major promotion with a huge pay bump, or you91裸聊视频檝e finished many years of education and entered a high-paying profession.
Either way, you have some extra cash, and perhaps little else, aside from a student loan.
The act of seeking out advice 91裸聊视频� or even just starting the conversation with yourself 91裸聊视频� is worthy of praise, says Brian Himmelman, president and financial planner at Himmelman & Associates Financial Advisors in Halifax.
91裸聊视频淚t91裸聊视频檚 just so easy to 91裸聊视频� treat [a pay raise] like lottery winnings and say, 91裸聊视频極h, I finally want to get that Canada Goose coat, and guess what, I91裸聊视频檓 going to book a five-star vacation91裸聊视频� 91裸聊视频� and boom, that differential is gone,91裸聊视频� Himmelman says.
Now is the time to decide what is important to you, says Brandon Wiebe, a fee-only financial planner with Money Helps, based in Saskatoon. The first financial conversations involve setting priorities for the near- and long-term, and involving partners, if you have one.
At this early stage, Wiebe says, a tax free savings account can offer flexibility for someone who wants to save and have tax-sheltered growth, but might change their mind on their priorities in the future. Paying down student loans and other debt is another goal that may be high priority 91裸聊视频� or not, he says.
91裸聊视频淚 think some of the conversation [around debt] will kind of focus on a couple of different points,91裸聊视频� Wiebe says. 91裸聊视频淥ne: what is the interest rate? How does that compare with what they would possibly be able to expect in returns if they91裸聊视频檙e investing the money instead? And then, how do their student loans make them feel? You know, are they stressful?91裸聊视频�
For some, paying down student debt slower but investing sooner is the smarter move.
Both Himmelman and Wiebe favour the 91裸聊视频渂ucket91裸聊视频� approach, where disposable income is branched off into various areas, from debt repayment to saving, from investing to spending.
These buckets can change over time, just as priorities shift throughout life.
For a younger person with a certain amount of extra income every month, Himmelman says one possible arrangement could include three buckets: student loans, saving for a down payment, and retirement. Factoring in their age and goals, roughly 25 per cent extra could be dropped monthly on the loan, 50 per cent goes to the future house, and the last 25 per cent is put aside for long-term security 91裸聊视频� a great habit to start early.
Himmelman also recommends saving a few months91裸聊视频� worth of expenses in case of an emergency, before saving more aggressively for a home.
91裸聊视频淎ll these amounts are moving sliders based on the individual, their circumstances, their conviction, and their priorities,91裸聊视频� Himmelman says.
91裸聊视频淪o somebody who91裸聊视频檚 making lesser income now, but they have a career where maybe they91裸聊视频檙e making twice as much in a few years 91裸聊视频� they91裸聊视频檙e better off concentrating on a TFSA. And people who are higher earners right out of the gate might be better off with the RRSP, because of the tax deduction.91裸聊视频�
Although saving for a home is a major priority for many young Canadians, home ownership is not the only way to gain financial security, Wiebe says. He prefers if clients prioritize owning a home for lifestyle reasons 91裸聊视频� wanting to stay put, wanting control of their space 91裸聊视频� rather than purely financial.
91裸聊视频淚 do advise people to try and stay away from speculation, that 91裸聊视频業 need to get in now91裸聊视频� type of thing,91裸聊视频� he says about the real estate market.
In Himmelman91裸聊视频檚 experience, clients that bought and invested in real estate tended to havea higher net worth 91裸聊视频� but that doesn91裸聊视频檛 predict the future for everyone.
91裸聊视频淸Some clients] might not just be wired for home ownership, and there91裸聊视频檚 absolutely nothing wrong with that,91裸聊视频� he says. 91裸聊视频淎 person can create a perfectly healthy long-term financial plan without home ownership.91裸聊视频�
The last bucket should be for fun. After near- and long-term goals are accommodated, Wiebe says, these hard-working individuals should enjoy their rewards, whether it91裸聊视频檚 more travel or a nicer car.
91裸聊视频淥nce they91裸聊视频檝e taken care of the responsible part of it,91裸聊视频� he says, 91裸聊视频渢hen they can actually take a look and see which of those financial things 91裸聊视频� brings them happiness.91裸聊视频�
Himmelman agrees. He notes that among his clientele, he has scrupulous savers that have now reached their 70s, and have more money than they could possibly spend. Now that they91裸聊视频檙e older, travel and some hobbies are less appealing than they once were.
91裸聊视频淭hey were so paranoid about not having enough money, that they overshot the runway,91裸聊视频� Himmelman says.
91裸聊视频淭here is something to be said about enjoying your money while you91裸聊视频檙e healthy. The name of the game is that balancing act of enjoying your resources and still having enough to look after you on the back end.91裸聊视频�
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