In order to be prepared for RETIREMENT, it is essential that we have a financial plan! Starting one is daunting, but it’s essential. No matter what your age, if you don’t have one you need to create one!
Why the need for a Financial Plan?
People are in dire need of a financial plan as many of us fall into the Wealth Curve pattern of spending. It goes something like this: People graduate from post-secondary education at the ripe age of 20 to 21. Unfortunately, the next stage of life seems to have a common theme between so many. We graduate with student debt, travel, buy a car, get married, have children, put our children through post-secondary education. By the time we know it, we are well into our 40s. What this really means is that we now only have 25 years or less to retirement and NO savings.
Not following a financial plan is equivalent to not having a fitness plan and expecting to get in shape. I always encourage people to join a gym and plan to go a minimum of 2 days a week (say Monday and Wednesday). This accomplishes two things, it increases the likelihood of you exercising, and secondly, if you don’t, you will at least feel guilty that you didn’t. A financial plan does the same thing, it increases the likelihood of you saving for retirement and if you don’t you will feel guilty. Guilt isn’t always a bad thing. Hopefully it gets you back on track.
It is very important that people are financially secure. Canadians generally don’t know when to start saving until it’s too late. It’s not impossible to start saving in your 40s, but it is a lot harder as opposed to starting in your 20s. The more time people have, the better.
Bottom line is, financial plans are a necessity to saving for retirement. It’s okay and understandable that this isn’t an automatic skill you can gain at a moment’s notice. People need help making financial plans and that’s okay. That’s what Taurus is here for! Even though we do your mortgages, we like to do so by giving you a proper financial plan alongside it. If you want help in your personal finances, feel free to give us a call.