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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
