6 Steps to Boost Your Financial Fitness

6 Steps to Boost Your Financial Fitness

With the sun shining and temperatures rising, there’s a lot of incentive to head outdoors, be active and boost your fitness. As we gradually emerge from the challenges of the past several months, this is also a great time to get financially fit.

The pandemic has provided an important reminder of the need to prepare for the unexpected.

This list of 6 steps to boost your financial fitness can help you strengthen your position for whatever lies ahead – whether that’s more storm clouds or glorious summer sunshine.

Making financial fitness a priority

Just like physical fitness, financial fitness doesn’t happen by accident. You need to be proactive and make it a priority.

These steps can get you started:

  1. Trim your expenditures – The lockdown period has forced us to change our spending patterns. Without our normal routines, it has become easier to identify expenditures that now seem excessive or frivolous, whether that’s expensive weekday lunches or rarely used gym memberships. If you’ve been spending less in recent months, look for ways to make some of these reductions permanent.


  1. Leverage your registered accounts – Many Canadians have lost their jobs or seen their incomes squeezed in the past several months, providing an important reminder that we should get the most out of every dollar we earn. Registered accounts such as RRSPs, TFSAs and RESPs are powerful tools for tax-efficient saving and investment. Take this time to ensure you’re putting these accounts to optimal use.


  1. Reassess your life insurance – The pandemic has made it abundantly clear that life is both precious and unpredictable. Now is a good time to take a fresh look at your life insurance and ensure it will meet your family’s financial needs upon your death. Also ensure you are taking full advantage of your life insurance as a tool for growing assets on a tax-advantaged basis.


  1. Protect against uncertainty – Protecting yourself and your loved ones is always a top priority, and critical illness insurance and disability insurance have important roles to play in this. Ensure you have sufficient coverage to replace your income and cover your expenses in the event of an accident or major illness. Keep in mind that group benefits through your employer may be insufficient.


  1. Update your will – You never know when your time will come, so it’s important to have your affairs in order. Keeping your will up to date will ensure that your wishes are met and your wealth is distributed according to your preferences. Updating your will is especially important after any major life events, such as a marriage, divorce or death in the family.


  1. Prioritize philanthropy – The pandemic has cast a spotlight on examples of inequality and suffering in our country and around the world. The good news is that you can make a difference through philanthropy. Maximize your impact with a strategic approach to philanthropy aimed at driving meaningful, long-term improvement in the lives of others.

Growing stronger with a plan

Tackling your finances on a piecemeal basis can lead to small improvements but getting financially fit is much easier when you have a cohesive plan.

At Rubach Wealth, we guide our clients through these 6 steps and address other relevant areas as part of a strategic financial plan tailored to their needs and situation. To discuss your financial goals, contact us at info@rubachwealth.com

It starts with a conversation.


5 ways to strengthen your business during market volatility

5 ways to strengthen your business during market volatility

Small business owners are often reluctant to spend money or make changes during an economic downturn. However, downturns can be an ideal time to invest in your business and improve day-to-day operations in ways that will have lasting effects.

Every market downturn creates opportunities for innovative business owners. Rather than simply worrying about the situation and hoping things will get better, now is the time to proactively strengthen your operations and position yourself for growth when the economy recovers.

Strengthen relationships

Use this time as an opportunity to reach out to existing customers and ask questions. Reach out to clients you haven’t spoken with in a while and see how they are doing. Such a simple action now can pay off immensely in terms of goodwill and opportunities for referrals once the market improves.

Networking during an economic downturn can be useful to understand how other businesses are coping. See what is working for them or where they require help. You may also discover new opportunities, customers, staff, suppliers and business partners with minimal cost to your business. Consider forming alliances with other businesses and look for opportunities to pair your service or product with something that complements it.

Work with your team

Build morale and motivation by clearly communicating with your team what is happening within the business. Try to involve them in decision-making and finding solutions. This is a great opportunity for you and your staff to enhance your skills. If there’s a course that someone has always wanted to take or if they have always wanted to learn about a different part of the business, this may be a great time for them to undertake additional duties.

Test your contingency plan

As a small business owner, you have ideally planned for market downturns and have strategies in place to activate during times of disruption. Now is an excellent time to review those plans to see what is working and what can be improved upon amid these unprecedented circumstances. 

Review your expenses

Reach out to your bank and negotiate lower interest rates on loans or banking fees. During economic downturns, most banking institutions are more than happy to retain business and help their loyal clients. This isn’t limited to banking. Reach out to vendors that provide you services and see if there are opportunities where you can renegotiate terms or costs. Remember, they are going through the same market conditions you are.

Use the resources available to you

There are many provincial and federal programs available to support you and your business during tough economic times. Take a look at the Government of Canada’s website to see resources available close to where you live.

You’ve worked hard to build your business and create the life you want for yourself and your family and we want to help you protect it. If you have any questions, please feel free to reach out to us.