grow your financial iq tips and strategies for taking control of your finances. presented by:
TRANSCRIPT
Grow Your Financial IQTips and Strategies for taking control
of your finances.
Presented by:
About Me and Money
• 5 years with the NBSC• Telecom and IT industry• UNBSJ Alumni (BBA 2004)• Self-diagnosed shopaholic and travel addict• Independent – home owner• Money motivated me to take charge and make a
change
Why Money Should Be A Priority
• Women typically earn 25% less than men, tend to be out of the workforce longer than men and will have a lower pension
• 4-in-10 young Canadians don’t know how much money they earned or spent last month
• Young Canadians think they’re going to be earning much more than they really do
• It’s harder to save
Creating a Financial Roadmap
Will help you to:
• Understand what is most important in your life• Understand what drives your financial decisions• Focus on accomplishing your goals• Stick to your plans
Creating a Financial RoadmapStep 1 : Your Values
• What brings me meaning and pleasure in life?• What do I consider “priceless”?• What do I care most deeply about?• What do I stand for?• Who are the most important people in my life?• What is the purpose of money in my life?
Goals are accomplishments that fulfill your values.
Are your goals SMART?• S – specific• M – measurable • A – attainable• R – realistic • T – timely
Creating a Financial RoadmapStep 2: Your Goals
Creating a Financial RoadmapStep 3 : Your Plans
• How are you going to get there?• What steps do you need to take?• Update the plans, adjust for changes
• Financial Roadmap chart
Navigating Your Financial Roadmap
Strategies for:
• Smart Spending• Budgeting• Saving and Investing
Navigating Your RoadmapSmart Spending
• Think twice – do I NEED this?• Use cash – our brains can process this• Make a list• Pack a lunch• Zero balance or Get out the scissors• Look at your bank statements
Navigating Your RoadmapTips for Creative Savings
• What can I do to save money on:– School?
• Scholarships, bursaries and grants www.studentawards.com www.scholarshipscanada.com
• Buy used text books
– Rent?• Get a roommate• Don’t waste energy/water
– Food/Personal Items/Entertainment• Don’t do groceries when you’re hungry• Wait for sales to go shopping and use coupons• Don’t take the credit or debit card to the bar.
Navigating Your RoadmapBudgeting and Creative Savings
• Fixed Costs– These are not flexible and you have to pay them (tuition, student
feeds, rent etc)
• Needs– These are things you have to buy, but what you pay for them is
flexible (power bill, groceries, personal items)
• Wants– These can have the most impact on your budget. These are
things that you can live without so you can trim the costs or even eliminate them (entertainment, shopping, phones etc)
Navigating Your RoadmapBudgeting
• Be honest• Be as detailed as possible• Track everything• Allow for change• Give it a chance• Stick to it
Working With a Financial AdviserRoles and Responsibilities
• Set and work towards financial goals• Choose suitable investments• Set a plan and track your progress
• Ask questions, take notes and be informed• Keep your adviser up to date• Keep a record of meetings
Navigating Your RoadmapInvesting
• RRSP– Tax benefits– Automatic saving– Investing decisions– Not JUST for retirement savings
• TFSA– Canadian residents, 18+, $5000 annually– Investment income and withdrawals are tax-free– Unused contribution room carries forward and
accumulates in future years
My Path
Did Tool Found Changed
Monitored my Spending
Note book, receipts, online bank accounts
High bank feesWithdrawals from ATMsHigh grocery bills for 1 person
Cash withdrawal on paydayMinimized use of debit cardMeal planning/list
Monitored bill payments
Envelope system Did not work Automatic bill payments online
Worked out a budget
Till Debt Do us Part budget tool (or any tool you like!)
Unnecessary spendingCould/Should have more money for saving/debt repayment
Used creative savings to cut costsMade debt payments and savings/investing a fixed costIncreased RRSP Contributions
Work the Plan
• Be involved and informed• Identify your values• Set some goals• Make a plan• Talk to someone you trust - Connect with a
professional• Learn – books, web sites, programs etc. (book
list in your package)
