A growing number of Canadians are facing financial pressure. If you’re one of these people, there’s no doubt becoming financially free is your biggest goal.
Unfortunately, most people don’t live to attain this goal. Millions of people live paycheck to paycheck and will continue until retirement.
Look, a windfall isn’t going to fall your way. Nor are you going to win a mega jackpot. It would be best to have comprehensive financial planning to break out of this vicious cycle and move closer to your financial goals.
Read on to learn how planning your money will help you take control of your life.
Get Out of Debt or Manage It Better
The average Canadian owes at least $50,000. Taking out debt isn’t a wrong financial move. A home loan can allow you to build wealth in real estate.
However, debt can be deadly when mismanaged. You’ll spend most of your adult life servicing various loans if you aren’t careful with the loans you take and how you use the funds.
With proper financial planning, however, you’ll be in a better position to manage your debt soundly and even get out of debt faster. Before going in for a loan, you’ll evaluate whether it is necessary and, if it is, how much money to go for. People who are good financial planners are also less vulnerable to predatory lenders and high-interest credit facilities such as payday loans.
Planning for Retirement
Retirement is a fact of life. Waning health can get in the way even if you want to keep working until your last breath. By the time you’re hitting your 60s, you should be ready to call it a day.
Will you be financially prepared to retire? You’ll be out of work, so that you won’t earn any active income. In its place, you need adequate passive income.
Effective retirement planning doesn’t just happen. You have to start as early as possible. Otherwise, it will become harder to meet your financial goals for retirement.
With comprehensive financial planning, it’s easier to identify smart investments that will grow over time. Whether you choose to invest in real estate, the stock market, cryptocurrency, or precious metals, there’s a good chance you’ll increase your net worth.
Reducing Your Tax Liabilities
Paying taxes is a patriotic duty every citizen should take pride in. However, this doesn’t mean you give the taxman more than his fair share.
The tax code allows taxpayers like you to deduct various expenses and reduce your tax bill. You can only make the most of these deductions if you’re working with a detailed financial plan.
Tax laws can be complicated for a layperson, so hiring a professional to guide you is essential. This Toronto tax accountant is an excellent place to start.
Comprehensive Financial Planning Is the Key to a Secure Future
You’re not alone if you don’t do comprehensive financial planning. However, it’s high time you started taking your finances seriously. Whether you’re in a hole of debt or living on paychecks, proper money management and planning will put you on a path to financial prosperity.
Keep tabs on our blog for more financial tips and advice.