Why do you have a financial plan in 2023?

Do you have a financial plan? If you answered no, you are not alone. According to a Sun Life survey, 52% of Canadians don’t even have one.

Wondering how much to put into your RRSP? How much should your emergency fund be? And how long does it take to collect it? A financial plan can help you with this.

Christiane VanBolhuis is in Montreal. With it, we answer your questions under our Facebook post.

Here are some answers that should convince you to start making a financial plan for the coming year.

What is a financial plan?

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“A financial plan is a tool that guides us to achieve our short, medium or long-term financial goals,” concludes Christiane VanBolhuis.

Indeed, this plan is tailored to your budget reality and lifestyle. This takes into account your debts, projects and investments. It also provides ways to protect yourself against the unexpected, such as illness or job loss.

This document is usually prepared with the help of a financial planner. This includes your income, savings products, life and disability insurance, your will, and your protective mandate. In short, a financial plan is a 360-degree view of your personal finances!

How will a financial plan help me if I already have investments and a budget?

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This is a great starting point! In fact, a financial plan is a complementary tool. It allows to reconcile the budget and current investments with the set goals.

By considering your personal finances, you and your financial planner will be able to better estimate your savings, as well as your current and future needs.

Plus, by budgeting and planning, you can make your fondest dreams come true. Your plan can help you buy a home, take a trip to Europe or even help your child get their first property.

When should I think?

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It’s never too early or too late to start. Regardless of your financial situation, a financial plan can help you. “A good financial plan increases financial freedom. This is a fact no matter what stage of life you are in,” explains the financial security consultant.

That said, it’s important to revise your plan when major life changes occur. For example, consider a new job, a wedding, or the birth of a baby.

How can a financial plan help me in times of economic uncertainty?

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“Life is not static. It can expand and we can fall into financial traps. Having a plan and a clear picture of our financial portrait allows us to better adapt and get through this period of economic uncertainty,” says Christiane VanBolhuis.

People with a financial cushion and a contingency game plan weathered the pandemic better. This is interesting information!

How do I set up my financial plan?

The best way to create an effective financial plan is to make an appointment with a financial planner. Before this meeting, you can prepare by updating your budget. This is an opportunity to define your short, medium and long term financial goals and identify your current debts.

Simple, free tools like Sun Life’s calculator can help you figure it out. Everything is done in a few clicks.

It’s your life: make sure you make the most of it! Contact build a financial plan in your image.

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