If you have any concerns about your current financial situation, here are three steps you can take to help improve your outlook.
1. Get a full financial picture
Identify all your assets and liabilities – the difference between these two is your net worth. Then, understand the ins and outs of your cashflow: the money coming in and going out each month. Mapping out your cashflow can show you opportunities to improve. You may find you have the flexibility to pay down more debt or see ways you could be spending less in order to save or invest more.
2. Have a plan
Your financial goals may range from immediate (e.g. building an emergency fund) to longer term (e.g. saving for a new home or retirement). But making plans to achieve them can be challenging. You may find talking to an advisor useful, as they can provide options and a plan to help you get closer to where you would like to be. A comprehensive plan includes what you want to achieve – your life goals – and links those to financial objectives and provides advice to get you there.
3. Monitor your progress
“Visualizing our goals makes them more tangible and monitoring them shows if we are straying or staying on track,” explains Ivy Chiu, a senior director at RBC. “It’s also important to get an objective view of saving, investing and borrowing options. This is what an advisor provides, in addition to their expertise and advice, to help you reach your goals.”
Article Source: NewsCanada.com