Transcript Document

Grow Your Financial IQ
Tips and Strategies for taking control
of your finances.
Presented by:
About Me and Money
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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:
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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 Roadmap
Step 1 : Your Values
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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?
Creating a Financial Roadmap
Step 2: Your Goals
Goals are accomplishments that fulfill your values.
Are your goals SMART?
• S – specific
• M – measurable
• A – attainable
• R – realistic
• T – timely
Creating a Financial Roadmap
Step 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 Roadmap
Smart Spending
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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 Roadmap
Tips 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 Roadmap
Budgeting 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 Roadmap
Budgeting
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Be honest
Be as detailed as possible
Track everything
Allow for change
Give it a chance
Stick to it
Working With a Financial Adviser
Roles 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 Roadmap
Investing
• RRSP
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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 fees
Withdrawals from
ATMs
High grocery bills
for 1 person
Cash withdrawal on
payday
Minimized use of
debit card
Meal 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
spending
Could/Should have
more money for
saving/debt
repayment
Used creative
savings to cut costs
Made debt
payments and
savings/investing a
fixed cost
Increased RRSP
Contributions
Work the Plan
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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)
Questions?
[email protected]
facebook.com/4NBInvestors
@4NBInvestors
InvestInKnowingMore.ca