Financial planning includes every aspect of your finances. Your financial plan should cover:
Five reasons to have a plan
- Prioritize your financial goals – For example, if you buy a new car now, will you have enough savings later to buy a house or go back to school? Which of these goals is most important to you?
- Save money to reach your goals – You may find it easier to save when you know what you’re saving for.
- Focus on the bigger picture – Your financial plan considers everything from watching your spending to managing your investments to minimizing your taxes.
- Organize your finances – A financial plan can help you balance spending and saving, keep track of expenses and manage debt.
- Worry less about money – With a plan, you’ll know where you are today and how to get to where you want to go.
Prioritize your goals: Use this Prioritizer Calculator from CNN Money to help you rank your goals in order of importance to you.
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