Financial wellbeing means something different to everyone, whether that be living debt free, retiring early or having the ability to get that new cottage in Kenora. Whatever it means to you, financial wellbeing at its core comes down to your financial situation, The ability to comfortably meet all of your current financial commitments and needs, while also having the financial resilience to continue doing so in the future. It’s also not only about income but also the ability to have control over your financial situation. And perhaps most importantly having the financial freedom to make choices that allow you to enjoy life.
Recent findings from the Financial Well-being Survey in Canada sheds light on the key factors contributing to financial wellness . Here are three crucial tips derived from the survey to help not only attain, but also maintain your financial wellbeing:
The Survey underscores the vital role that Active Saving plays within financial wellbeing. It's not just about how much you earn, but how you manage what you earn. Regularly saving money for unexpected expenses and future goals is crucial.
This includes saving for a rainy day, retirement, or even short-term goals like vacations or a new gadget. To make saving easier, consider setting up automatic transfers to a savings account or investment accounts and keep track of your savings goals.
Canadians who actively save have higher levels of financial well-being than those with the same income. This finding demonstrates that intentionally setting money aside is the variable most strongly related to financial well-being, regardless of income level or other demographic influences .
Living within your means is a cornerstone of financial wellbeing. The survey found that those who refrained from borrowing for daily expenses enjoyed a higher level of financial well-being. This means being mindful of your spending habits and avoiding the pitfall of using credit for everyday purchases. Creating and sticking to a realistic budget can help manage your expenses better. If you find yourself consistently relying on credit for daily needs, it's time to reevaluate your budget and spending habits.
Another key element in achieving financial wellbeing is the guidance of a financial advisor. Financial advisors bring expertise and perspective that can transform your financial landscape. They offer personalized advice tailored to your individual needs, goals, and risk tolerance. This professional guidance is crucial in navigating complex financial decisions, such as investments, retirement planning, tax strategies, and estate planning.
Moreover, a financial advisor can provide accountability and encouragement, helping you stay on track with your financial goals. In a world where financial decisions can be overwhelming and fraught with complexity, having a financial advisor is like having a compass that guides you through the intricacies of personal finance. By partnering with a financial advisor, you can gain confidence, clarity, and a sense of security, knowing that your financial wellbeing is in knowledgeable hands.
Your financial wellbeing is not just a goal; it's the key to unlocking the life you've always envisioned. By prioritizing active saving, steering clear of debt in daily expenses, and seeking the invaluable guidance of a financial advisor, you're setting the stage for a future rich in financial freedom and peace of mind.
Mitchell Cathcart, Marketing Assistant, Kondwelani Kalinda, Associate Investment Advisor and Grant White, Portfolio Manager at Endeavour Wealth Management with iA Private Wealth, an award-winning office as recognized by the Carson Group. Together, Endeavour Wealth Management provides comprehensive wealth management planning for business owners, professionals and individual families.
This information has been prepared by Mitchell Cathcart Marketing Assistant, Kondwelani Kalinda, Associate Investment Advisor and Grant White, Portfolio Manager for iA Private Wealth and does not necessarily reflect the opinion of iA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces in which they are registered.
iA Private Wealth Inc. is a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. iA Private Wealth is a trademark and business name under which iA Private Wealth Inc. operates.
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