Posted on Friday 26 February 2016
This article is part of our Finance Hub.
Everyone desires to be financially secure, especially when planning for that retirement. However, for young Canadians, this is often the last thing they are thinking about--at least before they turn 30! This mind-set really needs to change. Every Canadian needs to work towards financial security for their future. This alone alleviates a great deal of the anxiety and stress that comes with being an adult. It's a fact that financial insecurity leads to a great deal of health problems for many, but if you manage your money wisely and plan, you'll live happier and longer! If you're worried you'll have to sacrifice your short-term goals to realize your long-term ones, you're wrong.
You don't have to do so. The following tips and advice being shared with you now will guarantee you can achieve financial security without having to really deprive yourself of anything. It's all about financial budgeting and being accountable of your own spending habits. The following 7 tips will point young Canadians in the right direction if their goal is to have sound, dependable financial security before the age of 30. Remember, you don't have to sacrifice entertainment and other extracurricular activities if you budget right!
Tip 1: Understand your most important asset
Your most important asset, when it comes down to finances and financial security is yourself! Your career, your experiences, and any opportunities you've had, or will have play a role in establishing you as an adult and your financial future. It is your career and career opportunities which help to build your financial independence, so making the right choices is critical to the future
. Tip 2: If you set short-term goals, the long-term will fall into place
It's a fact! Planning too far into the future can leave you feeling defeated and let down, but planning short-term, realistic goals can get you on the right track and keep you there! Short-term goals should be kept realistic so they can be achievable.
Tip 3: Develop an action plan and then worry about saving
Become a planner before you start trying to save and meet financial goals. If you plan right and stay goal oriented, you can meet the majority of financial goals you establish. For instance, setting a timetable to pay on specific bills like: credit card bills, school loans--and more, will help you prepare for a better road to financial independence.
Tip 4: Stick to frugal spending habits
Teach yourself the value of money early, while in college even. If you can stick to those frugal habits you were forced to while in graduate school you'll make better decisions for your financial future!
Tip 5: Don't live beyond your means
Don't be like so many others and worry about making an impression in the crowd. Living beyond your means open up the door to more debt, something you clearly want to avoid. When you do have excess funds, don't fall into the trap of using this as an excuse to spend. Saving your hard earned money is far more important than a new gadget!
Tip 6: You have to become financially literate
This is a critical one! Taking the time to research and educate yourself on saving and investing will ensure you stay on top of your financial future. Financial education will help you achieve all your financial endeavours and assist you in making the right investment decisions throughout your life.
Tip 7: Always take advantage of the financial freebies!
You would be wrong to not take advantage of what is free! From free seminars to free monthly savings accounts; freebies are meant to help you! Take advantage of the new Canadian tax laws and benefit funds without feeling embarrassed! Many of these will allow you tax savings and help you get money back at the end of the year.