Once you've defined your financial goals, identify the steps you need to take to reach them.
Consider different options for reaching your goals
There may be more than one way to reach your goals. If your goal is to save $10,000 in the next 2 years for a car, you’ll need to save about $420 each month. You could save that money in a savings account. Or you could save it in your RRSP, reducing the income tax you owe. Then you could set aside your tax savings for your car.
8 questions to ask yourself
- How much do you have to save each month to reach your goals?
- How should you invest your savings to help your money grow?
- If your goal is to pay off debt by a certain date, how much do you need to pay back each month?
- Will you need to change your spending habits to save money or pay off debt?
- Would you be able to pay your bills if you lost your job or had an accident and couldn’t work?
- How can you lower your taxes?
- How much income will you need when you retire?
- How can you reduce taxes on your estate?
3 tools to help you explore your options
Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca