According to a recent survey, many Canadians feel very anxious about debt and credit card payments after the holiday season. That’s why January is the perfect time to dive into your finances and create some peace of mind for the year ahead. Creating a plan with a financial advisor can help you pinpoint areas for saving, source new investments, and connect your income to your goals.
- Generate Cash Flow & Plan for the Unexpected
Most people undershoot their annual expenses while they’re planning for the year ahead, which is one of the main reasons they fall into debt by the end of the year. The most difficult expenses to plan for are those unexpected one-time incidents, like a child who suddenly needs braces or a surprise car repair bill.
Cash flow planning is one of the six areas of financial planning, and it’s always the first step to a financial plan that works in the long-term. Having cash on hand for unexpected expenses is different than saving because the money is not attached to a goal. Instead, it’s there for emergencies and unplanned events. Your advisor can help you plan for both expected and unexpected expenses at your annual review appointment.
- Create Greater Tax Efficiencies
Taxes are the single greatest expense Canadian families pay each year – greater than housing, food, and clothing costs combined. That’s why working with a professional to plan for tax savings throughout the year makes such a big impact on overall spending, saving, and investment abilities.
So, how does tax planning work? An advisor will help walk through your entire year to forecast income and expenses, as well as any specific tax advantages you may have access to. From there, you can time certain purchases, investments, and income to provide more tax benefits.
- Develop a Savings & Investment Plan
You’ll also want to start thinking about how to save for those larger expenses you are able to plan. The difficult part of planning is balancing short-term goals (like home renovations or a family vacation) with long-term ones (like university education for your kids or retirement planning). An advisor helps you direct your efforts at the right times for better outcomes and additional tax savings so you can achieve all your financial goals within your timeline.
Book Your Annual Review with a Forward-Thinking Advisor
What do the next five years look like for your family? What about the next ten? Twenty?
Life throws you many twists and turns, so it’s important to have a dynamic, long-term financial plan that you revisit with a financial professional on a regular basis.
Register for your free financial consultation by contacting us. We’ll help you optimize your tax plan and create a spending, saving, and investment strategy that works harder for you.
