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 mindset really needs to change. Whether you intend to work for a boss or become self-employed, the goal should be to attain financial security early enough. Notably, choosing the right career can be quite challenging, especially given the fast-paced nature of the world. Nevertheless, every Canadian needs to work towards financial security for their future. Did you know that even living healthier can save your finances?
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 many 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 for 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 that 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. For instance, if you want to become a venture capitalist, you'll first have to start by achieving certain short-term financial goals. Building such a profile will ultimately position you for the long-term plan.
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 your financial goals. For instance, setting a timetable to pay specific bills like credit card bills, school loans—and more, will help you prepare for a better road to financial independence. Even if it means getting a cash advance sometimes.
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. Then you probably won't even need any express loans, etc.
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 opens 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. This is also applicable if you constantly hire people to work for you. In such an instance, you must structure your budget to hire the right employees without having to overspend.
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. If you want to become a large-scale investor or an astute business owner, you'll require considerable financial knowledge. You'll want to understand the stock market, know more about purchasing rental property insurance, have what it takes to prepare your business for the holidays without recording losses, and be positioned to handle tax seasons efficiently.
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 programs without feeling embarrassed! Many of these will provide you with substantial tax savings and help you get money back at the end of the year.